I had the honour to address you on the 23d. Ulto., since which I have received your dispatch of the 26th. of may last directed to Gen. Armstrong & to me:1 you may be assured, that I shall make your instructions in this instance, as in all others, the guide of my conduct.

Notwithstanding there was a prospect that the negotiation would come to a crisis “in a few days,” when I had the honour to last write to you, it seems likely to be procrastinated, if it shall ever take place. It appears by late letters I have recd. from Mr. Erving at madrid dated the 17th & 31st. of July; that altho’ it was expected by Gen. Armstrong, that ⟨“⟩this governmt. would take no further agency in the business, excepting only to announce the appointment & presence of the spanish minister,” yet the prince of Beneventum had interfered, & had written to the french chargé d’affaires there,2 (this for obvious reasons must be kept a profound secret) “that he had been too quick, had gone beyond his instructions, & that altho’ the emperor was well disposed, that the differences between Spain & the U. S. shd. be settled, yet that the terms & the mode must be left to them; affairs of this delicacy, he says, required to be managed very carefully.”

This letter appeared somewhat enigmatical both to mr. Erving & to the person to whom it was addressed: the latter supposed it to indicate an intention to change the place of the negotiation; whilst the former tho’t it favourable to the adjustment. I think I see in the prince’s two letters laid before the spanish Govt. the Design to procure the appointment of an Agent on the part of Spain, for the purpose of confering with the commissrs. of the U. S., whilst the conduct of that agent shd. be submitted to the discretion of the french governmt.

That the Prince of Peace shd. not relish the latter part of the expectation especially after an agent had been appointed, is not very extraordinary: it appears by mr. Erving’s last letter, “that mr. Isquierdo’s powers had not been sent on, & that they would be delayed as long as possible.”

Whatever may have been the expectations of the Prince of Peace in regard to the negociation, I have had no doubt that it would take exactly the inclination, which france might chuse to give it: if the impediment is only on the side of Spain I am satisfied it will be removed: but my opinion is, as it has been from the beginning, that the principal obstacle would arise from another quarter, that is, from the intrigues & designs of Stockjobbers who have engrafted themselves upon our negociations, & who aim to obtain money at the expence of one or both parties: was it necessary I could give you the most substantial reasons for this opinion.

It is on this ground I have uniformly tho’t that the negociation wd. not succeed, resting upon the propositions as they now stand; unless that this Govt. shd. have reason to apprehend consequences of a very serious nature from the failure of the negociation. Nothing short in my opinion will set aside the influence or destroy the schemes of the Stockjobbers, who will throw obstacles in the way of every proposition wch. shall not subserve their particular purpose.

But notwithstanding the foregoing opinions & the intelligence I had recd. from mr. Erving, not knowing but genl. Armstrong might have obtained some more satisfactory information, I wrote to Gen. Armstrong the following Letter.

Sir, As a considerable time has elapsed since mr. Isquierdo has received his Commission to confer with us on the adjustment of the subsisting differences between Spain & the U. States, I shall be much obliged to you to acquaint me, if you have recd. any information or overtures from him upon the subject? or if you know, whether he is as yet instructed as well as commissioned by his Govt? It appears to me, that mr. Isquierdo ought to be apprized of the importance of bringing the negociation to an issue timely to be laid before Congress at its next meeting. This circumstance is of great moment to both governments, as it is impossible to say, in what light the legislature will take up the disputes after so many delays & obstacles have been thrown in the way of their adjustment. I am very respectfully Sir. &ca. &ca.—to which Genl. Armstrong replied as follows.

The foregoing Sir is the state of things as they respect the commission with which I am charged with gen. Armstrong: I wish it was more promising: you may depend upon my critical attention and zealous exertions to promote the views of the President, & to bring the negociation to a speedy & satisfactory conclusion & that I shall keep you duly acquainted with every material occurrence.

The negociation between france & England for a general Peace is still open altho’ it has not the same activity it had about a fortnight since, when Peace was confidently expected to take place: the prospect is now much obscured, & I have reason to think, that it will not take place under existing circumstances. Shd. any thing further occur in regard to it before closing this Letter I will subjoin it by a Postscript.4

I shall have the honour of writing to the President by this opportunity, to whom please to present my most respectful Regards & believe me with sentiments of the highest esteem & attachment Sir your faithful & obedient Servant