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TO THE COMMISSIONERS OF THE TREASURY.

Paris, January 26, 1786.

Gentlemen,

I have been duly honored by the receipt of your letter of December the 6th, and am to thank you for the communications it contained on the state of our funds and expectations here. Your idea, that these communications, occasionally, may be useful to the United States, is certainly just, as I am frequently obliged to explain our prospects of paying interest, &c. which I should better do with fuller information. If you would be so good as to instruct Mr. Grand, always to furnish me with a duplicate of those cash accounts which he furnishes to you, from time to time, and if you would be so good as to direct your secretary to send me copies of such letters, as you transmit to Mr. Grand, advising him of the remittances he may expect, from time to time. I should, thereby, be always informed of the sum of money on hand here, and the probable expectations of supply. Dr. Franklin, during his residence here, having been authorized to borrow large sums of money, the disposal of that money seemed naturally to rest with him. It was Mr. Grand’s practice, therefore, never to pay money, but on his warrant. On his departure, Mr. Grand sent all money drafts to me, to authorize their payment. I informed him, that this was in nowise within my province; that I was unqualified to direct him in it, and that were I to presume to meddle, it would be no additional sanction to him. He refused, however, to pay a shilling without my order. I have been obliged, therefore, to a nugatory interference, merely to prevent the affairs of the United States from standing still. I need not represent to you the impropriety of my continuing to direct Mr. Grand, longer than till we can receive your orders, the mischief which might ensue from the uncertainty in which this would place you, as to the extent to which you might venture to draw on your funds here, and the little necessity there is for my interference. Whenever you order a sum of money into Mr. Grand’s hands, nothing will be more natural than your instructing him how to apply it, so as that he shall observe your instructions alone. Among these, you would doubtless judge it necessary to give him one standing instruction, to answer my drafts for such sums, as my office authorizes me to call for. These would be salary, couriers, postage, and such other articles as circumstances will require, which cannot be previously defined. These will never be so considerable as to endanger the honor of your drafts. I shall certainly exercise in them the greatest caution, and stand responsible to Congress.

Mr. Grand conceives that he has suffered in your opinion, by an application of two hundred thousand livres, during the last year, differently from what the office of finance had instructed him. This was a consequence of his being thought subject to direction here, and it is but justice to relieve him from blame on that account, and to show that it ought to fall, if any where, on Dr. Franklin, Mr. Adams, and myself. The case was thus. The monies here were exhausted, Mr. Grand was in advance about fifty thousand livres, and the diplomatic establishments in France, Spain, and Holland, subsisting on his bounties, which they were subject to see stopped every moment, and feared a protest on every bill. Other current expenses, too, were depending on advances from him, and though these were small in their amount, they sometimes involved great consequences. In this situation, he received four hundred thousand livres, to be paid to this government for one year’s interest. We thought the honor of the United States would suffer less by suspending half the payment to this government, replacing Mr. Grand’s advances, and providing a fund for current expenses. We advised him so to do. I still think it was for the best, and I believe my colleagues have continued to see the matter in the same point of view. We may have been biassed by feelings excited by our own distressing situation. But certainly, as to Mr. Grand, no blame belongs to him. We explained this matter in a letter to Congress, at the time, and justice requires this explanation to you, as I conjecture that the former one has not come to your knowledge.

The two hundred thousand livres retained, as before mentioned, have been applied to the purposes described, to the payment of a year’s interest to the French officers (which is about forty-two thousand livres), and other current expenses, which, doubtless, Mr. Grand has explained to you. About a week ago, there remained in his hands but about twelve thousand livres. In this situation, the demands of the French officers for a second year’s interest were presented. But Mr. Grand observed there were neither money nor orders for them. The payment of these gentlemen, the last year, had the happiest effect imaginable; it procured so many advocates for the credit and honor of the United States, who were heard, in all companies. It corrected the idea that we were unwilling to pay our debts. I fear that our present failure towards them will give new birth to new imputations, and a relapse of credit. Under this fear I have written to Mr. Adams, to know whether he can have this money supplied from the funds in Holland; though I have little hope from that quarter, because he had before informed me, that those funds would be exhausted by the spring of the present year, and I doubt, too, whether he would venture to order these payments, without authority from you. I have thought it my duty to state these matters to you.

I have had the honor of enclosing to Mr. Jay, Commodore Jones’s receipts for one hundred and eighty-one thousand and thirty-nine livres, one sol and ten deniers, prize-money, which (after deducting his own proportion) he is to remit to you, for the officers and soldiers who were under his command. I take the liberty of suggesting, whether the expense and risk of double remittances might not be saved, by ordering it into the hands of Mr. Grand immediately, for the purposes of the treasury in Europe, while you could make provision at home for the officers and soldiers, whose demands will come in so slowly, as to leave you the use of a great proportion of this money for a considerable time, and some of it for ever. We could then, immediately, quiet the French officers.

I have the honor to be, with the most perfect respect and esteem, Gentlemen,

your most obedient

and most humble servant,

Th: Jefferson.