By the address of Congress to their Constituents, on the Subject of their Finances, which I had the Honor of transmitting to your Excellency, you have doubtless observed, that in September last Congress came to a Resolution of emitting no more Bills, than with those already emitted and in Circulation, would amount to 200′000′000 of Dollars. That about the same Time they called upon their Constituents to raise money by Taxes, and assigned the first Day of January last for the first Payment, at which Day it was supposed that the Bills to be emitted, would be nearly expended.1

Congress, percieving that at once to stop the great Channel of Supplies that had been open ever since the war, and to substitute another equally productive, was not one of those measures which operate almost insensibly without Hazard or Difficulty; and well knowing that if the first Payment of these Taxes should be delayed beyond the limited Time, that the Treasury would be without money, and the public operations obstructed by all the Evils consequent to it. They were of opinion that collateral and auxiliary measures were necessary to ensure Success to the great System for retrieving & supporting the public Credit.

So early therefore as the 23d. Day of November last they took this Subject into their most serious Consideration, and altho they had the highest Reason to confide in the Exertions of their constituents, yet, having received repeated Assurances of his Majestys friendly Disposition towards them, and being persuaded, that they could avail themselves of his Majestys Friendship on no occasion more agreable to him & advantageous to them; than on one so interesting to the united States, and important to the common Cause; they adopted a measure which but for those Considerations, might appear extraordinary, vizt. To draw ^Bills^ upon me for 100′000 pounds Sterling payable at six months Sight.2

The drawing Bills previous to notice of obtaining the Money to satisfy them, may at first Sight view appear indelicate; but when it is considered that the whole Success of the measure depended on its taking Place between the 23d of Novr. and the 1st. of Jany last, (in which Period it was impossible to make the application) his majesty’s Magnanimity will I am persuaded readily excuse it.

As I shall always consider it my Duty to give your Excellency all the Information in my Power, that may enable his Majesty from Time to Time, to form a true Judgment of the State of american affairs; it is proper that I should inform your Excellency that Congress having Reasons to believe that a Loan might be obtained in Holland, did shortly after my leaving america, take measures for that Purpose; and on the 23d of November last resolved to draw Bills on Mr. Henry Laurens (to whom that Business had been committed) for the Sum of 100′000 Sterling—

I greatly regret that it was not in my Power to advise your Excellency of these matters sooner, but it was not until the 27th. Inst at Madrid that I recieved the Letters which informed me of them.3

As further Remarks would draw this Letter into greater Length than the opinion I have of your Excellencys Discernment will permit me to think necessary; I forbear longer to engage your Time and attention, than to request the Favor of your Excellency to lay it before his Majesty. The Eyes of america are now drawn towards him by their opinion of his virtues and the Situation of their affairs; and I flatter myself it will not be long before their hearts and affections will also be engaged by such marks of his majesty’s Friendship, as his Wisdom & Liberality may prompt, and their occasions render expedient— With great Respect and Esteem I have the Honor to be Your Excellency’s most obedient & most h’ble Servant