made the trade round the Cape of Good Hope direct, and forbid the coasting trade. Before the treaty, the Americans had both an indirect and a coastwise trade in India. They carried cottons, for example, from the British settlements in the East Indies, to Canton. But the trade to India and Europe depended, before 1794, on the pleasure of the British government; it was now secured by treaty.

The ratification of this instrument may be considered the proper solid foundation of the commercial prosperity of the United States. The first act of the government that proved the stability of the federal constitution; it was a severe trial; and the steadiness, with which the shock was borne, may be attributed, in some degree, to the personal character of the President.*

* In 1791, the lords of the committee of Privy Council made a minute report on the trade of England with America. This report was intended to show on what terms it would be favourable for Great Britain to conclude a treaty with the United States. The West India planters were desirous of having an intercourse opened with America, immediately after the peace of '83.-(Collection, &c. of reports on trade and navigation, &c. London, 1807, published by order of the society of ship owners, &c.)

CHAPTER VII.

TREATY OF 1795 WITH SPAIN.

Spain powerful at time of Revolution-Family Compact-Great American possessions—Franklin appointed minister in '77 to Madrid -Important letter-A. Lee goes to Bilboa-Letter of GrimaldiEurope secretly hostile to England-Spain avoids the coalitionStrives to reconcile France and England-Fails-Declares war against England in '79—Jay sent to Spain-Received—Details of his proceedings-Makes no treaty-English government sent Cumberland to Madrid-Fails-Important instructions-De Florida Blanca's mistake respecting invitation to Jay-Carmichael, Chargé― Presented at Court--Letter concerning la Fayette--Gardoqui, Spanish Charge-Treats respecting boundaries-Nothing doneSouth and North divide on the navigation of the Mississippi-South in minority-Short and Carmichael, commissioners to Spain-Remarks on Mississippi-Important instructions-Spain, having entered the coalition of '93, unwilling to treat-Indians-Acts of hostility in Kentucky-Short-Viar-Jaudenes-Peace of Basle-Godoy -Pinckney sent to Madrid-Treaty of San Lorenzo el Real with Prince of Peace-Right of deposite at New Orleans suspendedEastern and Western boundaries of Louisiana-France opposes claims of United States-Government take possession of W. Florida -Folch-Kemper-Spoliations-Settled by transfer of E. Florida -Humphreys-Yrujo-Bowdoin-Intercourse renewed in 1814—

Erving.

At the time of the declaration of independence, Spain was mistress of half the continent of South America. She was one of the most powerful nations of Europe, not only from her own wealth, valuable colonies, and numerous and well appointed army and navy, but in consequence of an intimate connexion with France. The family compact," adopted by the treaty of Paris of 1761, an alliance between 27

VOL. I.

all the princes of the house of Bourbon, more especially the crowns of France and Spain, still existed. By that instrument, those two powers mutually guarantied their states and possessions, and assumed, as the basis of their alliance, the diplomatic maxim, "Qui attaque une couronne, attaque l'autre." All the American possessions of Spain were then entire; she enjoyed an active, extensive and lucrative commerce; and was as determined an enemy of England as France herself.

After arrangements had been made by the Congress of the confederation to obtain the assistance of France, one of the next subjects of attention was Spain. As early as December 1776, it was resolved to send commissioners to that country, and, in the beginning of the next year, Dr. Franklin was appointed the first envoy to Madrid, though he never went to that court ;* but while in France, he addressed a letter to the Count d'Aranda, at that time the Spanish minister at Versailles. This letter will be found in the memoirs of Dr. Franklin, and as it explains in a few words the situation of the two countries, we shall extract a portion of it:

"Passy, April 7, 1777. Sir,-I left in your excellency's hands to be communicated, if you please, to your court, a duplicate of the commission from the Congress, appointing me to go to Spain as their minister plenipotentiary. But I understand the receiving such a minister is not at present thought convenient, and I am sure, the Congress would have done nothing that might incommode, in the least, a court they so much respect. I shall, therefore, postpone that journey till circumstances may make it more suitable. In the mean time, I beg leave to lay before his catholic majesty, through the hands of your excellency, the propositions contained in a resolution of Congress dated December 30, 1776, viz., “That if his catholic majesty will join with the United States in a war against Great Britain, they will assist in reducing to the possession of Spain the town and harbour of Pensacola, provided the inhabitants of the United States shall have the free navigation of the Mississippi, and the use of the harbour of Pensacola, and will (pro

*For commission, see Secret Journals, vol. ii. Jan. 1, 77.

vided it shall be true that his Portuguese majesty* has insultingly expelled the vessels of these States from his ports, or has confiscated any such vessels) declare war against the said king, if that measure shall be agreeable to, and supported by, the courts of France and Spain." It is understood that the strictest union subsists between these two courts, and, in case Spain and France should think fit to attempt the conquest of the English sugar islands, the Congress have further proposed to furnish provisions to the amount of two millions of dollars, and to join the fleet employed on the occasion with six frigates, of not less than 24 guns each, manned and fitted for service, and to render any other assistance, which may be in their power, as becomes good allies, without desiring for themselves the possession of any of the said islands."

A few months before the date of this letter Arthur Lee, at the request of Messrs. Franklin and Deane, undertook a journey to Spain. He arrived at Bilboa in March, though he was not provided with a special appointment, and appears to have had no other object than to obtain money and supplies. He was furnished with a letter and passports from the Spanish Minister at Paris, but the king would not allow him to proceed to Madrid from the extreme difficulty of maintaining his incognito. Don Diego Gardoqui was, how

* In consequence of the celebrated Methuen treaty, the greater part of the Portuguese commerce had fallen into the hands of the English, and those two countries were in a strict alliance and friendship. In the letter of B. Franklin quoted in the text, the reader will probably be struck with the uncommon willingness of the Congress to engage -in foreign connexions, though the motives and reasons of such measures are abundantly apparent and satisfactory. Still it is remarkable, how few they formed; how entirely they escaped from every sort of entangling league and association, with the single exception of the provision respecting the guaranty in the treaty of '78 with France. This circumstance is the more extraordinary, because England was at that time the common enemy of Europe, and an almost general armed confederation had been entered into against her. America is indebted for this good fortune, not only to the skill and discretion of her rulers, but to her "distant and detached situation," and to a very common impression in Europe of her weakness and inability to render valuable assistance to any cause.

ever, sent from the capital to meet Lee, and a correspondence, somewhat protracted, took place between them on the subject of contracts for supplies and shipments, made on American account at Bilboa. The same general difficulty, that prevented other powers in Europe from joining the colonies, threw Spain, also, into a state of very equivocal neutrality, though at this early period, enough had been done to manifest her favourable disposition. An official, though secret, intercourse with the government was allowed Mr. Lee, and in the month of April 1777 the Duke Grimaldi, himself, delivered into the hands of the American agent at Vittoria the following paper-" You have considered your own situation and not ours. The moment has not come for us. The war with Portugal, France unprepared, our treasure from America not arrived, make it improper for us to declare immediately. These reasons will probably cease within a year, and then will be the moment."

A single observation is suggested by the secret visits of the American agents in the beginning of the Revolution to the different courts of the European continent. The peace, maintained by the greater part of these States with England, was exceedingly hollow, and if one might judge of what was about to overtake that nation from the political symptoms, privately disclosed, it was obvious her downfall was near at hand. The truth is, several of those governments still felt the ancient grudges of the two last wars, rankling in their cabinets, and all were alarmed at the sudden deyelopment of English resources and prosperity, and the great accession of power and territory, that followed the treaty of 1763. But the corruption, the canker, the decay preying upon and wasting France, itself, saved England from that terrible day.

At the same time, Spain showed a great disinclination to take an open part in the war declared in 1778; and the measures, adopted by France to induce her to this step, were at first received with uncommon coolness. Fatigued by her former contests, though of a recent date, and holding, herself, extensive and valuable foreign possessions, Spain did not