dit of which is guarantied by the Crown
and the different Chambers or Councils of the Kingdom, viz of Castile,
&c. &c. This paper bears an interest of four per cent. A _cedula_, or
royal ordinance, will be published the 20th or 21st of this month,
which gives it currency, and inflicts severe penalties on any one who
refuses it as a legal payment. M. Necker did not discover the latter
part of the scheme until large sums had been remitted from France, and
I suppose, fearing that its operation would be complete before his
representations of what he thought its evil tendency, could be
attended to here, he immediately gave orders not to receive the bills
of exchange of the houses concerned in this measure at the _Caisse
Royale_ in France. Besides, the house of Gerardot, Haller & Co. one of
the most considerable in Europe, and of which he was once the head,
and his brother is still a partner, wrote circular letters to all
parts of Europe discrediting the loan.

The consequence has been, that the persons in France and elsewhere,
whose bills were refused at the _Caisse Royale_ have been pushed here
so hard by their creditors, that the Spanish government has been
obliged to make considerable remittances to support their credit, that
further advances of money have been stopped, and that bills of
exchange on Spain have sold at a loss of one and one and a half per
cent. This has irritated the merchants here, and perhaps we may be the
innocent victims. For I am persuaded, that Spain, without obtaining it
by loans, has not money in Europe to afford us considerable aids, how
great soever her inclination may be to assist us, and I think the
Committee will be of the same opinion, on reading the information I
gave Mr Jay on the subject of the revenues of this country, in
consequence of his instructions to me at Cadiz.

I shall be happy to have it in my power to inform the Committee, that
my apprehensions have been ill grounded.

The fate of our bills must soon be determined. More than forty
thousand dollars have been presented, of which the amount of about
fourteen thousand have been accepted by order of the Minister. The
Count d'Estaing will leave this in a few days, and go to Cadiz; by the
time he can arrive at that port, the whole of the combined fleet will
be assembled; thirtysix sail are now at Cadiz, seven on a cruise, and
two of a hundred and one hundred and ten guns are on their voyage from
Brest. The Count will urge a vigorou