calculated from the demands & information of the Tripoline ambassador at London that to make peace with the four Barbary states would cost us between two & three hundred thousand guineas, if bought with money. The sum did not seem to exceed his expectations. I mentioned to him that, considering the incertainty of a peace when bought, perhaps Congress might think it more eligible to establish a cruise of frigates in the Mediterranean & even to blockade Algiers. He supposed it would require ten vessels great & small. I observed to him that Monsr. de Massiac had formerly done it with five; he said it was true, but that vessels of relief would be necessary. I hinted to him that I thought the English capable of administering aid to the Algerines. He seemed to think it impossible, on account of the scandal it would bring on them. I asked him what had occasioned the blockade by Mr. de Massiac: he said, an infraction of their treaty by the Algerines. I had a good deal of conversation with him also on the situation of affairs between England & the United States : & particularly on their refusal to deliver up our posts. I observed to him that the obstructions thrown in the way of the recovery of their debts were the effect & not the cause, as they pretended, of their refusal to deliver up the posts that the merchants interested in these debts shewed a great disposition to make arrangements with us, that the article of time we could certainly have settled, & probably that of the interest during the war: but that the minister shewing no disposition to have these matters arranged, I thought it a sufficient

proof that this was not the true cause of their retaining the posts. He concurred as to the justice of our requiring time for the paiment of our debts; said nothing which shewed a difference of opinion as to the article of interest, and seemed to believe fully that their object was to divert the channel of the fur trade before they delivered up the posts, and expressed a strong sense of the importance of that commerce to us. I told him I really could not foresee what would be the event of this detention, that the situation of the British funds, & desire of their minister to begin to reduce the national debt seemed to indicate that

they could not wish a war. He thought so, but that neither were we in a condition to go to war. I told him I was yet uninformed what Congress proposed to do on this subject, but that we should certainly always count on the good offices of France, and I was sure that the offer of them would suffice to induce Gr. Britain to do us justice. He said that surely we might always count on the friendship of France. I added that by the treaty of alliance, she was bound to guarantee our limits to us, as they should be established at the moment of peace. He said they were so "mais qu'il nous etoit necessaire de les constater." I told him there was no question what our boundaries were, that the English themselves admitted they were clear beyond all question. I feared however to press this any further lest a reciprocal question should be put to me, & therefore diverted the conversation to another object. This is a sketch only of a conference which was lengthy. I have endeavored to give the substance,

& sometimes the expressions where they were material. I supposed it would be agreeable to Congress to have it communicated to them, in the present undecided state in which these subjects are. I should add that an explanation of the transaction of Monsieur de Massaic with the Algerines, before hinted at, will be found in the enclosed letter from the Count d'Estaing to me, wherein he gives also his own opinion. The whole is submitted to Congress, as I conceive it my duty to furnish them with whatever information I can gather which may throw any light on the subjects depending before them. I have the honour to be with the most perfect esteem & respect Sir obedient and most humble servt.

your most

TO THE SECRETARY OF FOREIGN AFFAIRS.

(JOHN JAY.)

J.MSS.

PARIS, May 27, 1786.

SIR,-In my letter of January 2, I had the honour of stating to you what had passed here on the subject of the commerciable articles between this country & the United States. I beg leave now to resume that subject. I therein informed you that this government had agreed to receive our fish oils on the footing on which they receive those of the Hanseatic towns, which gave us a reduction of duty from 3on the barrique to amounting to about on the English ton, according to a statement by Mons!

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Sangrain inclosed in that letter. This was true, but there was another truth which neither that statement, nor any other evidence I then had, enabled me to discover, and which it is but lately I could be ascertained of; which is that there is another duty called the Droit des huiles et savons to which the Hans towns are subject, as we are also of consequence. This is of 6. deniers on the nett pound, and 10. sous per livre on that, amounting to; on the nett hundred, French weight, or to the English ton. This with the reduced duty makes about #----, or very

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nearly four guineas according to the present exchange, on the English ton. Tho this be still advantageous when compared with the English duty of 18 guineas, yet it is less so than we had expected, and it will remain, when we apply for a renewal of the indulgence, to see whether we can obtain further reduction.

The fur trade is an object of desire in this country. London is at present their market for furs. They pay for them there in ready money. Could they draw their furs into their own ports from the U. S. they would pay us for them in productions. Nor should we lose by the change of market, since, tho the French pay the London merchants in cash, those merchants pay us with manufactures. A very wealthy & well connected company is proposing here to associate themselves with an American company, each to possess half the interest, & to carry on the fur trade between the two countries. The company here expect to make the principal part of the advances;

they also are solliciting considerable indulgencies from this government from which the part of the company on our side the water will reap half the advantage. As no exclusive idea enters into this scheme, it appears to me worthy of encouragement. It is hoped the government here will interest themselves for it's success. If they do, one of two things may happen: either the English will be afraid to stop the vessels of a company consisting partly of French subjects & patronized by the Court; in which case the commerce will be laid open generally; or if they stop the vessels, the French company, which is strongly connected with men in power, will complain in form to their government, who may thus be interested as principals in the rectification of this abuse. As yet, however, the proposition has not taken such a form, as to assure us that it will be prosecuted to this length.

As to the article of tobacco, which had become an important branch of remittance to almost all the states, I had the honour of communicating to you my proposition to the court to abolish the monopoly of it in their farm; that the Ct. de Vergennes was, I thought, thoroughly sensible of the expediency of this proposition, and disposed to befriend it, that the renewal of the lease of the farms had been consequently suspended six months and was still in suspence, but that so powerful were the Farmers general and so tottering the tenure of the Minister of finance in his office that I despaired of preventing the renewal of the farm at that time. Things were in this state when the M. de la Fayette returned from