n the same situation. The
Ministry have consented to diminish a third part of the duties
demanded on the produce of the West Indies imported in American
vessels. Mr Harrison has not been obliged to pay as yet those duties
at Cadiz. I have just received a letter from the Marquis de Lafayette,
who arrived at that port the 23d instant, having preceded the French
fleet of nine sail and seven thousand troops, which sailed from Brest
the 7th. The letter was calculated for inspection, and intended to
excite in this Ministry, distrust of Lord Shelburne, and to induce
them to furnish Congress with funds for the prosecution of the war. I
received it by post, and answered it in the same style, by the same
conveyance. I also made use of the hints to throw out to persons, who
I know will convey them to the Ministry.

They cannot procure sufficient funds for their own expenses. They have
just opened a loan of one hundred and eighty millions of reals, of
which it is proposed to receive two thirds in cash, and the other in
obligations of debts contracted in the reign of Philip the Fifth. The
duties on tobacco are engaged for the payment of the interest, which
is three per cent in perpetuity, and seven per cent in annuities.
These are the outlines of the proposed plan, I have seen the brouillon
of the schedule, which is not yet published. No great success is
expected from this loan. On the 20th an assembly of the subscribers to
the bank of San Carlos was held to choose directors and other
officers, and to deliberate on further means for its establishment.
The Governor of the Council of Castile presided at this assembly, the
Minister of Finance was present, as likewise were the First Under
Secretaries of the different departments of government. I found means
to procure admittance to this meeting. Every proposition made by the
projector, (M. Cabarrus) was unanimously agreed to. There were no
speeches except to applaud the bounty of the King, who, to enable the
bank to commence its operations, has granted thirty millions of reals
in specie, and to the same amount in grain for the supply of the army,
navy, &c. The directors chosen are much my friends, and have promised
to give America the preference in all articles which it can furnish
for the use of the marine, &c. &c. These directors as I advised you in
former letters, are charged with the supplies for the army, navy, &c.
with a commission of ten per cent to the profit of the bank. It wil