received but one letter
from Congress, which conveyed their resolves respecting the bills of
exchange drawn on him. I beg leave to acknowledge the receipt of a
letter from Mr Houston last week, which I shall answer, if possible,
by this opportunity.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[7] Missing.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, August 22d, 1780.

Gentlemen,

In the course of this month I did myself the honor of writing to you
by the General Pickering from Bilboa, and the Captain Kyan from Cadiz,
as also via France. In these letters I informed you of the situation
of our affairs here, and of that of Europe in general; since which, we
have advanced very little. The Minister had informed Mr Jay, on the
5th of July, that he had sent for a person to succeed M. Miralles, and
that on his arrival, arrangements would be made with respect to the
bills presented to Mr Jay for payment, and that he would then enter
into discussions on the other objects of Mr Jay's mission. Before and
since that period, bills to the amount of thirty thousand dollars have
been presented, of which Mr Jay has accepted for fourteen thousand, by
the direction of the Minister, and none of the others have as yet been
protested.

You will see by a state of the finances of this country, which in
compliance with Mr Jay's instructions to me, at my departure from
Cadiz, I have had the honor to give him, that their revenues and
resources since the war have greatly diminished, and that previous to
that period, they were by no means so flourishing as Congress had
reason to suppose. In most of the conferences with the Minister, the
scarcity of cash has been objected more than the want of inclination,
and hints have been thrown out, that it would be much more convenient
for the Court, to grant the United States aids in money from their
possessions in America than in Europe. Although hopes have been as
constantly given, that a part of the sum drawn for would be furnished
at the end of the present year, or commencement of the next, and that
measures in the mean time might be taken to prevent embarrassments, in
case of the arrival of bills after that period, great surprise has
been expressed, that Congress should take such a step without
previously informin