part of the debt yet unpaid, is not become due, and a law relative to the acquitment of this debt prescribes to the executive power of America, not to anticipate any payment unless upon advantageous terms for the United States; it appears that this ought to be fulfilled previous to the executive's entering into a negotiation. This is at least the result of a letter written by Secretary Hamilton on the 7th of March last, to the citizen Ternant. He observes to that ambassador that the sums lent by France, were borrowed in Holland; that six months elapsed between the time of obtaining the money at Amsterdam, and its receipt at the treasury in America; and that the interest paid during that term was a dead loss. But this loss can have no relation to France. The interest is due to her, from the moment of the payment, and payment was made the instant that the money was lodged at Amsterdam to the disposal of the Americans. This object does not appear then to give rise to any compensation, and without doubt the American treasury will think it proper to hold to the advantage the law requires for authorizing the anticipation of the payments, which the United States are obliged to make to France. The law does not specify this advantage. What should it be? The employment of the money on account of the French Republick within the United States, is a very great advantage for them, and this employment arises from circumstances which probably would no longer exist, if the American treasury should refuse to anticipate reimbursements. The advantage here is real; it consists not only in a considerable exportation of American produce, which will be paid for with those anticipated reimbursements; but also in the arrangements which the American government may take by means of State notes, negotiable in America itself.-Arrangements which would relieve her from all financial operations in Europe, for the purpose of acquitting themselves even in France, where the United States are obliged to make payment. And the employment of those sums in America, due to the French Republick, so convenient to the United States in the present circumstances, would suit the convenience of the Republick. The minister for foreign affairs has already ordered a purchase of grain, flour, and salted provisions to the value of three millions of livres on account of the American debt, and this purchase could not be paid for more advantageously than in this manner. It would be convenient to the Republick to give further commissions for grain, even to the amount of the balance due by the United States; nor could this be blameable, as every circumstance concurs in inviting the provisory executive council to provide the Republick with large supplies of provisions, and promptly, and whether in respect to the market or the payment, nothing could at this moment be more beneficial to America, and no money obtained easier than that with which the United States could pay us. The sum to be disposed of will not perhaps prove so considerable as were to be wished, considering the wants of the French colonies, which undoubtedly will have occasioned new demands to be made at Philadelphia, since those acquitted by the citizen Ternant, of the moneys remitted to him by the Federal treasury, as is stated in his letter of the 9th of March. It remains to speak of the conditions on which the American goverment would exonerate itself towards the Republick; those proposed by secretary Hamilton, in his letter of the 23d of June, 1792, to the minister plenipotentiary of France. He reminds us that it has already been agreed, between the French government and the United States, warlike stores (munitions) furnished, and the payments made and to be made in the United States, on account of the debt due to France, should be liquidated agreeably to the intrinsick value of the metals in the two countries. This agreement is the most equitable that could possibly be entered into, when we consider that France should be paid at her own treasury, agreeably to the above method of calculation, the expense of transportation of the metals from America to France, and the insurance. But by anticipation of reimbursement, this bonification, would be abandoned. In consequence of this convention, secretary Hamilton fixes the quantity of pure gold and pure silver contained in a Louis and French crown: he compares them with the quantity of the same matters contained agreeably to law in a dollar; and concludes (errours in information or cal culation excepted) that a French livre is equal to eighteen 15-100 cents of money, equal to the hundredth part of a dollar. It is upon this principle he proposes to convert our French livres into the dollars, which will be delivered in the United States to the French agents authorized to transact this business. I think this reduction still more advantageous to the Republick, than the promise made by Colonel Smith, in case we should obtain anticipated reimbursements. Be it as it may, we cannot refuse it; and doubtless secretary Hamilton takes for granted, that all the articles of the account current, between the French Republick and the United States, will be turned into dollars agreeably to this standard. This account is in the possession of citizen Genet-it is necessary only to make it out in two columns on the debit and credit sides-to wit-an inner column for the French livres, and an outer column for the American dollars. The account of interest should be made without thisfixing an epoch posterior to the 1st of January, 1793, for closing the same, after the arrival of citizen Genet, which cannot be so early as that date. Thus the account current, of which he is the bearer, will serve him only as a note fixing the dates and sums by which another account of capital and interest may be made out, and the conversion of each article therein, into dollars, will do away the necessity of an account of losses by exchange. The reimbursements made and not comprised in this account are to be added to it. This brings me to the observations which I was induced to make in reply to those of citizen Genet, relative to the liquidation and reimbursement of the American debt, and therefore propose to the council, the following DECISION. That the citizen Genet, minister plenipotentiary of the Republick to the United States of America, be charged by the provisory executive council, to solicit from the American government the reimbursement of the balance remaining due, capital and interest, by the United States to the French Republick. That he assign as a reason for this, the pressing necessities of the Republick, occupied in the defence of its liberty and independence, as the United States defended theirs when this sum was lent to them. That, as a law of the United States authorizes the Federal government to make these reimbursements by anticipation only, in case of an advantage resulting to the United States, by so doing, the citizen Genet, promise to the government, that the whole sum delivered to him, shall be employed in the purchase of supplies the growth of the United States, purchased and paid for within the same. That, as the United States wish to reimburse what they owe to France, without reaping advantage therefrom in any manner, from the present state of exchange, the citizen Genet be authorized to consent to a conversion of French livres into dollars, upon the rule fixed upon, viz.~ the quantity of pure gold and pure silver, contained in a Louis, and in a French crown, and in the American dollars, agreeably to the laws of both countries, fixing the value of those coins. That the citizen Genet employ the sums he shall receive from the American government, agreeably to the disposi tions for that purpose made in concert between the ministers of war, of the marine, and of foreign affairs. And that certified copies of this report, of the observations, and of the decision, shall be transmitted to the citizen Genet, for his instructions. Read and approved, in the provisory executive council at Paris, the 4th of January, 1793-in the 2d year of the French Republick. MONGE, President. Le BRUN, Minister for Foreign Affairs. TRANSLATION. NATIONAL TREASURY. Copy of a Letter written by the Commissioners of the National Treasury, to the President of the Provisory Executive Council. Citizen President, We have received the extract which the provisory executive council have addressed to us of their deliberation of the 4th of the present month, by which the citizen Genet, minister from the Republick to the United States of America, is authorized to make use of the sums which the Congress may be able to pay of the debt due by the Unit ed States to France, or those which he may procure on his own notes, payable by the cashier of the National Treasury, in purchasing provisions and warlike stores agreeably to the orders which shall be given him by the ministers of the interior, of war, of the marine, and of foreign affairs. To concur as far as is in our power, and according to the intentions of the executive council, in forwarding the measures pointed out in the deliberation, we have the honour to assure you, citizen president, that whatever sum shall be sent to us in the name of Congress, of the acquittances or orders furnished by the citizen Genet, to the Treasurer of the United States, and indicating the department of the French ministry, for which he shall have issued them, we shall immediately advise the executive council thereof, in order that we may be enabled to credit the American Congress, on account of their debt, for their amount. Should the reimbursements which Congress may make, prove insufficient to answer the different purposes required by the ministers of the Republick, and citizen Genet, to fulfil his mission, be obliged to recur to his own notes payable at two months' sight, upon citizen Doyer, general cashier of the National Treasury, we shall examine when presented, and immediately refer them to the minister, to whose department they shall relate, in order that in the interval between their examination and time of payment, the ministers may have the proper and regular authorities expedited to authorize the payment. As our functions are unconnected in a direct manner with the ministers sent by the Republick to the different governments, we conceive that this letter answers the intentions manifested by the executive council in article 7, of their deliberations, that we should concur in the dispositions contained therein. Authenticated copies of this letter, expedited in the name of the executive council to the minister Genet, will give him sufficient assurances, for his mission, citizen president, of all the facility which can be derived from our concurrence. We are with respect, &c. By the Commissioners of the National Treasury, Paris, 8 January, 1793, 2d year of the French Republick. |