ON.

* * * * *

TO M. DE LA LUZERNE.

Philadelphia, August 2d, 1781.

Sir,

Agreeably to the intimations I made to your Excellency some days ago,
it was my intention to have gone to camp yesterday. But an act of
Congress of the ---- of July, rendered it necessary for me to hold a
conference with a Committee of Congress and the Board of War. This was
done; and it was determined, that a member of the Board of War should
go with me to camp.

This circumstance has postponed my journey for a few days. But this is
not all; the daily demands on me for money are considerable, and
beyond the utmost extent of any funds I can command. The demands for
past dues in compensation for past services, and the like, are
rejected; but those for the prosecution of the campaign must be
attended to. If, in my absence, and from that cause there be any
stoppage, or considerable delay, the consequences will be equally
injurious to my reputation, and to the public service.

I have before mentioned to you, that my dependence for immediate
supplies of money, is on the produce of bills of exchange. I am sorry
now to observe, that this dependence fails, and from a cause equally
prejudicial to France and to the United States, considered in their
collective capacity, though, perhaps, advantageous to individuals.
Your Excellency will remember, that when I was called to the
administration, the bills of your army had been selling for two
thirds, and even so low as for one half of their value in Europe. What
might have been the causes of this, it is not my business to inquire.
The fact is incontestable. Your Excellency observed it, and endeavored
to remedy the evil, by holding your own bills at five sixths. But the
merchants, who had benefited by the former low rate, could not be
brought at once to make so considerable an advance. They expected that
the same causes, which had reduced bills to one half, must again bring
them down; and, therefore, were disposed to wait the event.

I take the liberty here to observe, that the fluctuation of exchange
will naturally strengthen that expectation, and nothing but steady,
firm perseverance on the part of the administration, can, or indeed
ought, to produce a ready sale on good terms. Bills of exchange are
remitted to France in payment for European commodities. If the cost of
this remittance is fixed, commerce