bly take notice of an article in the foreign
papers, which mentions a revolt in Peru. This if true and serious as
represented, would be an event as important as disagreeable. I have as
yet no reason to believe it of the nature represented, if true. The
Ministry have taken no extraordinary measures, in consequence of this
intelligence, except the fitting out some packet boats for that part
of the world, which may be done to obtain more regular advice, than
they have had from thence for some time past. If it should appear,
that there is any foundation for this report, you may depend on my
endeavors to give the earliest and most accurate information I can
obtain with respect to the causes and consequences of such an event.

Mr Jay means to send soon large packets to Congress, to which I beg
leave to refer the Committee for more minute details on the subject of
this and my other letters, than I can furnish it, from not being in
possession of the various papers, and communications which respect
the mission.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, November 28th, 1780.

Gentlemen,

I did myself the honor of addressing the Committee frequently in the
course of the last month; this letter, therefore, can furnish little
besides a confirmation of what I then believed to be the disposition
of the Court, of the state of Europe, and of this part of it more
particularly, derived from the best information in my power to obtain.

I have in a great measure confined my inquiries to two objects, the
situation of the finances of Spain and its disposition toward us and
our ally. Every day gives me reason to think the former are critically
circumstanced. I know from good authority the ways and means for the
next year are not devised yet, and I have great reason to believe that
the necessary funds cannot be procured by taxation, because the
augmentation of the present year's taxes has not produced what the
Ministry expected, and neither the commerce nor produce of Spain will
permit further efforts in this way. In short, the current expenses of
1780 have exceeded the revenue twentyfive millions of dollars, and
notwithstanding, the arrearages to the public creditors are
considerable.

The loan for nine millions of dollars, men