he had constantly refused; and that upon his return to Paris he was pestered with letters requesting his correspondence, which he would never answer. As a proof of this, he put into my hands the letter marked D.; this, with the previous knowledge I had of his accusers being themselves stock-jobbers, satisfied me that the charge was malicious. I therefore continued him in his employment, and despatched him to London, with directions to go to Portsmouth and Plymouth, and collect the most accurate statement he could, of the force and condition of the enemy's fleet. This he executed with such secrecy, that this Mr. Wharton wrote to him in Paris while he was at Plymouth, of which letter Dr. Pringle of South Carolina was the bearer. It was directed to be delivered to Dr. Bankcroft, in Mr. Thornton's absence. When I understood this transaction, I apprehended that they had seduced him into their association; I therefore wrote him very strongly on the subject, and desired him to return immediately to Paris. His answer was, that he was then sick, but would come as soon as recovered. Since this I have not heard of him, but have had information from a very respectable merchant in London, that Mr. Wharton has communicated to him doubts of Mr. Thornton's fidelity to me, assuring him that he had given me full information of it, and all the particulars of his conduct; not a word of which was true. It appears too by his own letter and Capt. Livingston's testimony, that there is as little truth in his declaration of Mr. Thornton's being a stranger to him. Though he says he lent him money on my account, yet he never informed me of his having done So. I have not, nor ever had, the least acquaintance with Mr. Wharton, but have been frequently informed of his holding conversations not very friendly to me. Upon the whole, it appears to me that their plan was to seduce my secretary to the very infidelity of which they accuse him. I cannot help thinking that state

ments, which it is said Mr. Thornton communicated to Mr.Wharton, were framed for the purpose of this accusation, from hints sent from hence; because there is a confusion, blundering, and a mixture of true and false in them, which might well arise from intelligence picked up, and could not have happened if my secretary had taken copies of any of my papers for the purpose of betraying them. It is certain, that the persons who have made this accusation were trusted with our state secrets after we were credibly informed of their being engaged in stock-jobbing, and at a time when that confidence was absolutely refused to the other two commissioners of congress, Mr. Izard and Mr. Wm. Lee.

You will see by our banker's account, that about the time of this stock-jobbing upon the most sacred state secret that ever was committed to us, Mr. remitted to Mr. 19,520 livres. These are the observations which I think it my duty to communicate to you, upon those most unworthy transactions; being fully satisfied that while such men are admitted into public confidence here, neither the business of the state, nor the honour of individuals, can be secure from their attempts.

I have the honour to be, &c.

Committee of Correspondence.

ARTHUR LEE,"

"August 21st, 1778.

Gentlemen,-I had the honour of writing to you on the 7th inst. enclosing Mr. Williams's accounts, those of Mr. Hodge, and Dr. Bankcroft's accusation against my secretary, with some observations upon it by Lieut. Livingston.

I send you our banker's accounts from the beginning, with the explanation left by Mr. Deane. Nothing of moment has happened since I wrote you

last.

We are pretty well informed that the British cabinet has resolved to acknowledge your independency. It does not seem to me that they can possibly avoid doing so in a year's time, on any conditions that may be prescribed to them. Such certainly is their exhausted state in every respect, that an attempt to carry on a war against the United States and France combined, and supported as the latter are sure of being, by Spain, is such an act of folly as cannot but end speedily in their utter confusion.

Be so good as to inform Mr. Robert Morris that in consequence of his letter to my brother William, he has written to Dr. Franklin and myself, requesting us to deliver to Mr. Ross all the papers among those of the late Mr. T. Morris, which do not concern the public agency. This shall be complied with on my part, whenever Mr. Ross desires it; the trunk locked and sealed having been left with Dr. Franklin and the keys with me.

I wrote you on the 28th ult. of my having pressed for the loan directed by congress. I have received an assurance through the ambassador, that an answer will be given to my memorial as soon as possible.

I enclose you a memorial for the consideration of congress, as we do not think ourselves authorized to act upon it without express orders. Could one be sure that justice would be done to the public, it might be of advantage to adopt this scheme, for congress must not trust to the success of a loan, which, for the following reasons, I apprehend will be found impracticable.

The war in Germany going on, that between us and Great Britain, and the preparations for it by France and Spain, has raised and multiplied the demand for money so as to give the holders of it their choice and their price. The empress queen has engrossed every shilling in the Netherlands. England has drawn large sums from the Hollanders, who cannot easily

quit their former market. France is negotiating a loan of one hundred million livres, which will exhaust Geneva and Switzerland. The money holders regard the lending their money at such a distance, as Jacob did the sending Benjamin into Egypt, and it is time only that will make them endure the thought of such a separation.

These are the difficulties which the circumstance of things oppose to our scheme of a loan, and render the aid of some other operation necessary for sinking the superabundant paper.

The minister's answer relative to Mr. Holker was, that he had no authority from this court, but on this our joint letter I expect will be more full. I have determined to write to you once a month or oftener, as opportunity offers, and as we do not write so frequently I am tempted to mention things which should properly come from all the commissioners, as they relate to the joint commission.

From the necessity of the case we have ventured to administer the oath of allegiance to those who desire passports of us, but I hope congress will authorize their commissioners to do so where it is necessary. I have the honour, &c.

ARTHUR LEE."

APPENDIX VII.

Letters of Ralph Izard, Commissioner of the United States to the Grand Duke of Tuscany, to Arthur Lee, and Letters of Edmund Jennings and Mr. Brigden, written to him from England during the war.

"NAPLES, 15th January 1775.

Dear Sir, The last post which favoured me with your letter brought several newspapers, containing interesting affairs from America. I have a letter from Philadelphia, assuring me that the congress conducted themselves with great unanimity and good temper. Part of their proceedings I have seen, and their letter to the people of England, which I think must make a favourable impression. I hope the conduct of administration respecting the American agents, is taken notice of in their address to the king, or in some other part, which I have not yet seen. The papers mention nothing of Lord Chatham, except that his daughter is married to Lord Mahon. I hope you have taken that opportunity of visiting the latter, and renewing your Paris acquaintance with him. The cause may receive some benefit by your cultivating a connexion with him; and from what we saw of him I should judge that he would not wish to decline it. Surely the applications which have been made by administration to the French and Dutch, will not prevent their sending goods. If the merchants of France and Holland know their interest, which it is generally thought they do, they will take care during this unnatural contest, to put their trade into such a channel that it will be difficult to remove it even after things in other respects may be set right. I am very sorry to find that there were no delegates from Georgia. The governor, who must have been the means of preventing their being sent, ought to be