This kingdom (France) has been in bad credit, from the villainy of a
late Comptroller General, as it is said, one Abbe Terrai, against
whose administration the severest things have been uttered and
written. He was succeeded by the much esteemed Mons. Turgot, and
stocks rose, and a commission was given to a banker (a correspondent
of mine in Amsterdam) to negotiate a loan, but the dismission of Mons.
Turgot, and the indifferent opinion which monied men at least had of
his successor, Mons. Clugny, prevented the loan, and lowered the
stocks. Mons. Clugny died last week, and is succeeded ostensibly by
one Monsieur Tabourou; I say ostensibly, for M. Necker, a noted
Protestant banker, is joined with him as Intendant of the Treasury.
This raised stocks immediately, and I am told they have already risen
ten per cent. This is the most politic appointment that could have
been made, and it deserves our notice, that where a man has it in his
power to be of public service, his principles of religion are not a
sufficient obstacle to hinder his promotion even in France. This will
probably enable this kingdom to borrow money, which from all
appearances will be soon wanted. Spain, from the punctuality of its
payments of interest, and its well known treasures, is in high credit
in Holland. Denmark borrows at four per cent, Sweden at the same; the
emperor of Germany, from the security of his hereditary dominions, and
the empress of Russia, from her having lately paid part of the large
sum she borrowed in the Turkish wars, are both of them in good credit.
The credit of Great Britain, though it has not fallen, yet it is in a
critical situation with those foreseeing people, who, on receiving the
news of the action on Long Island, which raised stocks a trifle in
England, began immediately to sell out.

Not a power in Europe, the king of Prussia excepted, can go to war
without borrowing money of Holland to a greater or less amount, and
whilst so many borrowers are in its neighborhood, whose estates, as I
may say, are settled and known, it is not to be expected Holland will
be fond of lending money to the United States of North America, though
we should offer higher interest. To offer a large interest might be
tempting, but it would be very ruinous to us, and I conceive it will
never be thought prudent to permit higher than five per cent interest
in the States of North America, and this is but one per cent more than
is given in Europe.

Th