From Benjamin Franklin to Jean de Neufville, 28 February 1779
To Jean de Neufville
LS: Western Reserve Historical Society; copies: American Philosophical Society (two), Library of Congress2
On February 19 Franklin told Dumas he had begun discussions about a new American loan in the Netherlands. The present letter hints at their difficulty. Almost two years later Franklin described for John Adams what had transpired.3 Jean de Neufville had proposed that in exchange for a loan of 2,000,000 guilders the United States pledge all its territory and income as security and that it promise to send de Neufville annually for five years 400,000 guilders worth of produce to pay the principal and another 100,000 guilders in interest.4 He also proposed to take over, charging a heavy commission, the existing Dutch loan5 and asked that his banking firm of de Neufville & fils be given the title “Commissioners for Trade and Navigation and Treasurers of General Congress, and every private State of the Thirteen United States of North America, through the Seven United Provinces.” Franklin having rejected these “very gracious Terms,”6 de Neufville apparently prevailed upon Chaumont to draw up a more modest preliminary agreement, which Franklin here rejects.7 Negotiations continued, however, and Franklin eventually agreed to a plan whereby de Neufville would raise 1,500,000 florins.8
Passi ce 28 fever. 1779.
Quelque desir que J’aye, Monsieur, de proffiter de la bonne volonté que vous temoignez pour vous charger de Negotier un emprunt de quinze cent mille florins; L’etat actuel des affaires ne permet pas de prendre aucun engagement avec vous a ce Sujet dans ce moment ci. L’emprunt que nous avons ouvert L’année derniere en hollande n’ayant pas été accueilli, J’ay lieu de craindre qu’un nouvel emprunt ne le soit pas mieux, et que cette Seconde tentative manquée ne porte un prejudice réel au Credit et a la dignité des etats unis de L’amerique que J’ai L’honneur de representer. Si Cependant par votre Credit et vos bons offices, vous parvenez a nous assurer d’un Nombre Suffisant de Souscripteurs, vous pouvez Compter, Monsieur, que Je vous envoyray aussitot les preliminaires Signés proposés par M. de Chaumont.9 J’ay L’honneur d’etre tres parfaittement Monsieur, Votre tres humble et tres obeissant Serviteur
B Franklin
M. J. Neuville
2. The LS is in Chaumont’s hand, as is one of the APS copies (which contains BF’s initials and his notation “Copy of my Letter to Mr Neuville”). The second APS copy (in an unknown hand) bears the dateline “Paris” and differs in spelling, capitalization, and punctuation. The copy at the Library of Congress is unsigned.
3. In a letter of Dec. 14, 1781: Smyth, Writings, VIII, 341–5.
4. Copies in French and English of de Neufville’s ten proposals are at the APS; the former is endorsed by BF “Mr Neufville’s Propositions.” An undated memo in BF’s hand at the Hist. Soc. of Pa. criticizes the first of these proposals: “1. Article. The Security required seems vastly greater than in Proportion to the Sum proposed to be lent. To mortgage all the 13 States for £200,000 Sterling, which are worth a hundred Millions Sterling, seems extravagant.— If we mortgage the whole for the first small Sum we borrow, what have we left to offer, if we should want to borrow more.—” At the APS is yet another draft agreement, “Conditions particulieres au Sujet de L’Emprunt de deux Millions de Florins argent court d’Hollande, pour L’usage des Treize Etats unis de L’Amerique.”
5. From Horneca, Fizeaux & Cie., now become Fizeaux & Grand.
6. As he later sarcastically called them: Smyth, Writings, VIII, 344–5. De Neufville, however, wrote directly to Congress asking a commission carrying that title: July 28, 1779 (National Archives).
7. Chaumont and de Neufville were connected through a common friend: see Dumas’ letter of Jan. 5.
8. To Dumas, March 12, 1779 (Huntington Library); for further details see Wharton, Diplomatic Correspondence, III, 361–2.
9. These preliminaries in Chaumont’s hand were attached to the two APS copies; other copies of them are at the Library of Congress and the AAE. They read:
Preliminaires Convenues et arretés entre M. le Docteur franklin en sa qualité de Ministre plenipotentiaire en france des treize etats unis d’amerique et M. Jean de Neuville et fils Negts a Amsterdam pour un pret de deux millions de florins Remboursables au Bout de dix ans.
Les Dits Sieurs Jean de Neuville et fils tant pour eux que pour leurs associés au Contrat qui sera passe, pouront retenir Sur le Capital qu’ils preteront La premiere année d’interest a Raison de Cinq pour Cent et Les fraix de Courtage et Commission qui ne pourront Excéder un pour Cent par an.
Les Dits Sieurs de Neuville auront La Correspondance Directe avec le Dit Sr. franklin pour Raison du dit emprunt, Jusqu’a parfait Remboursement et seront Chargés du payment des interest ainsy que des envoys des Marchandises qui pouront leur etre faits ou demandés en Consequence, et sur lesquels ils preleveront alors Leurs Commissions, ainsy qu’il est d’usage dans Le Commerce.
Et pour assurer Les Dits envoys, Les Dits Sieurs de Neuville sont authorises de proposer aux Representans des etats de Hollande Les mêmes avantages pour leur Navigation a L’egard des treize etats unis d’amerique que Ceux qui leur seront accordés par la france pour la sureté du pavillon hollandois durant Les hostilités de L’Angleterre Contre la France et Les Dits etats Unis.
In the first of the APS copies there follows a mark in Chaumont’s hand and BF’s notation, “Memorandum, Passy, Mar. 4. 1779. The above Mark is the Parph of M. de Chaumont. On Asking him to explain the first Article, he told me that the annual One per Cent was not to be all retain’d out of the first Sum, but to be taken yearly. BF.” (This notation also appears on the Library of Congress copy.)
The document has two other notations by BF: “Copy of the Paper referr’d to in my Letter of Feb. 28 to Mr. Neufville”; “Papers relating to the Loan proposed by Mr. Neufville of Holland.”