FINANCE.
"That the Ct. de Vergennes was alarmed at the extravagant demands
of Docr. Franklin in behalf of the U. S.; that he was surprised
at the same time that the inhabitants paid so little attention
to doing something for themselves. If they could not be brought
to give adequate funds for their defence during a dangerous war,
it was not likely that so desirable an end could be accomplished
when their fears were allayed by a general peace that this reasoning
affected the credit of the U. S., and no one could be found
who would risque their money under such circumstances; that
the King would be glad to know what funds were provided for
the security and payment of the 10 Millions borrowed by him in
Holland, that the Count de Vergennes hardly dared to report in
favor of the U. S. to the King & Council, as money was so scarce
that it would be with the greatest difficulty that even a small part of
the requisition could be complied with. The causes of this scarcity
were a five years' war which had increased the expenses of Government
to an enormous amount—the exportation of large sums
of specie to America for the support and pay of both French and
English armies—the loans to America—the stoppage of Bullion
in S. America, which prevented its flowing in the usual channels."[81]
A letter of a later date added
"That he had received the Chevrs. letter of Ocr. and rejoiced to
find that Congress had provided funds for their debts, which gave
him great encouragemt., and he had prevailed on the Comptroller
General to join him in a report to his Majesty & Council for 6
Millions of livres for the U. S. to support the war, but assures the
Chevalier de la Luzerne, that he must never again consent to a
further application."
