Major Franks, on his Arrival here, the 1st Instant, delivered me your Letter of the 8th Septemr.,1 in which I find You do not acknowledge the Receipt of several that I had wrote You, which renders your Precaution very necessary—

It is the prevailing Opinion in America that Negociations are on the Tapis for a general peace & yr. Departure from Madrid, to hold a conference (as is said) with the other [commissioners] tends to strengthen the Conjecture.—2

I believe the new Ministry are wholly intent upon this favorite Object, as the untoward Events of War may occasion such Clamour in the Nation as may be fatal to their View of keeping their places, which I imagine they must be very desirous of retaining, after being so long engaged in the pursuit of them.—

The United States have many Reasons to urge them to wish for Peace, but at the same Time, they are not disposed to make any Sacrifice of their Interests, or their Honor to obtain it. Many wish for a continuation of the War, until the public debts are properly secured to the public Credrs,3 & some until our prejudice against the English are more deeply riveted, for they have still a powerful party amg. us.

It is perhaps fortunate that this Campaign is [inactive] & consequently not very [expensive];—for its [expenditures] are to be drawn from [taxes] alone, which must prove a very [intensive requisition] for the purpose, especially since the [diminishing] of our [trade] has removed the [major spring], which set the whole Machinery of Industry & Alienation in Motion, on the [basis] of which [taxes] can alone be founded.—

It is really time to fund our National Debt, to appropriate Revenues for the punctual Payment of the Interest that we have already borrowed, & for any new Loans that we may make.— We may perhaps then procure Credit from the Monied People of Europe, for the Interest of 6P% is a very tempting Bait.

The Administration of the Finances of this Country must have afforded, to hackneyed politicians, in Europe, a very strange & uncommon Appearance. To support a War of seven Years, without encumbering the Nation with more than a Debt of about fifteen Millions of Dollars, is what neither of the powers of Europe, with the best protected Trade, & all the Resources that productive population & active Industry can procure, could effect. However, we have got to the [length] of our [tether], & must begin to adopt their [mode] of [support] by [bonding] & [funding].—

The Campaign has hitherto passed over, without any Appearance of active Hostility. The Enemy have kept within their Lines, & we have wanted Force, & the co-operation of a Navy, to enter, & drive them out. The French Troops are now on their March from the Southward, to form a Junction with the American Army. The Marquis de Vadreuil, with thirteen Ships of the Line, is now on the Coast, cruizing off the Capes of Delaware. He arrived from Hispaniola, I suppose, with an Intention of avoiding the Hurricane Months, as I can observe no Movements that imply the Execution of any projected plan of Operation—

Savannah is evacuated by the British, & the Garrison of Charlestown is preparing to do the same, having embarked all their heavy Artillery, & Stores. If their Destination is for New York, it is very probable the French Fleet may intercept them, in their Route. The Enemy seem most effectually to have renounced all Idea of Conquest, & I believe will only endeavor to retain New York until a general pacification takes place.—

The waste & uncultivated Lands of America begin to engage the Attention of Congress, & the Claims of the respective States to that part of them that falls within the [boundary] of their [charters] will occasion some [dissension] & [clamor]. If the Maxims of Justice were to decide, the Matter would soon & easily be adjusted; but the [interference] of private [interests] will delay the Determination, & will occasion considerable [ferment] & [distrust].

Doctr Franklin begins to recover his full Influence in Congress. The punctilios of the lee Junto have ceased to be attended to. Both arthur Lee & Ozard are in Congress—the former from [Virginia] & the latter from [S. Carolina].— An interest is making by some of the Friends of Carmichael to procure for him the place of Secy. to the Embassadr4 at the court of Versaille.—5

You would oblige me by giving me your Opinion of the Credit that our [loan office certificates] which bear an [interest] of 6 P%, payable [at Paris] have obtained, & whether they could be [negotiated] for nearly their [full value] in [Spain].

In compliance with the Requisition of Congress, all the States, except Rhode Island, have passed the Law for laying a Duty of 5 P%, ad valorem, on all imported Goods, for the Extinction of the Capital, & the regular payment of the Interest on the Debts due to the public Creditors.6

[General Carleton] has proposed an Exchange of [sailors] for [soldiers] with [General Washington],7 & in order to invalidate the Objections that might arise from the [latter] being capable of being brought into [service], whilst the others could add Nothing to the [continent]al [force], has engaged his Honor that they should not take [the field] for a twelve Month, & adds that at the Expiration of the Time, he is confident there would be no [further use] for them.

The acknowledgment of our Independence, by the States General of the United Provinces, has diffused the greatest Joy amongst the Inhabitants of these States, as it adds a strong Link to the Chain that supports us.—

August 13.8 Since writing the above, Sir Guy Carleton has informed General Washington of the pacific Disposition of Great Britain, & that the King has directed Mr Grenville, (who is invested with full powers to treat with all the parties at War,) to propose the Independence of America, in the first Instance, without making it a Condition of a general Treaty:— This pleasing Intelligence inclines us to believe that we shall have a speedy peace, on honorable Terms.—9

Mrs Bingham requests her best Compliments may be made to Mrs Jay, to which please to add my sincere Respects, & believe me to be, with great Regard, & Attachment Dear Sir, your obedient humble Servant