,
in the appointment of the Commissioners, the British Ministry
had selected Lord Carlisle with express reference to an
acquaintance which he had had with Reed, when Reed was in
England, seventeen or eighteen years before.

He mentioned that, in 1777, while the army was yet encamped at
Valley Forge, Mrs. ----, a lady from Philadelphia, with whom
Reed was long known to have had a criminal intercourse, was
arrested within the lines, and that her suspicious conduct
induced a search, which led to the discovery of a letter upon
her person, from Governor Johnstone to General Reed, and
enclosing a note from Lord Carlisle, which was in _cypher_.
This letter related to overtures upon which Donop, the Hessian
officer, and General Reed, had already exchanged their views;
pronounced them to be somewhat extravagant; and suggested that
Reed had better close the arrangement which had been proposed
to Count Donop, and he would have no reason to complain. The
ten thousand pounds of which Donop spoke, Johnstone said would
be immediately paid, and he did not think there would be any
difficulty about the land or its equivalent; but of the
_office_ that Donop mentioned, he (Governor Johnstone,) could
not speak with confidence; upon that subject, the enclosed
note from Lord Carlisle, Governor Johnstone said, would inform
General Reed more definitely. This note being in cypher,
General Washington informed me he never succeeded in having
unravelled. Immediately upon receiving these papers, General
Washington informed me he called a council, and sent for Reed.
He placed the two letters in General Reed's hands, and
demanded an explanation. Unfortunately, the officer whom he
had sent for Reed had informed him what had happened and he
had thus some time and opportunity for preparation. Reed
professed himself unable to read the note in cypher, and said
he did not know what it meant.

As to the letter from Governor Johnstone, he explained that
overtures had been some time before made to him, offering him
his own reward, upon condition of his bringing about a peace,
but that he had replied, "that he was not worth the purchase,
but poor as he was, King George was not rich enough to make
it." When General Washington demanded why he had not before
informed him of this communication, Reed replied,