ultimate proposition on our part. He was as much mortified at the prospect of not being the executor of such a work, as we were, not to have it done by such a hand. He therefore acceded to our terms, tho' we are satisfied he will be a considerable loser. We were led to insist on them because in a former letter to the Governor I had given the hope we entertained of bringing the whole within 1000 guineas. The terms are 25,000 livres or 1000 English guineas (the English guinea being worth 25 livres) for the statue & pedistal. Besides this we pay his expences going & returning, which we expect will be between four and five thousand livres and if he dies in the voyage we pay his family 10,000 livres. This latter proposition was disagreeable to us. But he has a father, mother & sisters who have no resource but in his labour and he is himself one of the best men in the world. He therefore made it a sine qua non, without which all would have been off. We have reconciled it to ourselves by determining to get insurance on his life made in London, which we expect can be done for 5 per cent, so that it becomes an additional sum of 500 livres. I have written to Mr Adams to know for what per cent the insurance can be had. I inclose you for a more particular detail, a copy of the agreement. Dr Franklin being on his departure did not become a party to the instrum't, tho it has been concluded with his approbation. He was disposed to give 250 guineas more, which would have split the difference between the actual terms & Mr Houdon's demand. I wish the state, at the con

clusion of the work may agree to give him this much more, because I am persuaded he will be a loser, which I am sure their generosity would not wish. But I have not given him the smallest expectation of it, chusing the proposition should come from the state which will be more honourable. You will perceive by the agreement that I pay him immediately 8333 livres, which is to be employed in getting the marble in Italy, it's transportation &c. The package & transportation of his stucco to make the moulds will be about 500 livres. I shall furnish him with. money for his expences in France & I have authorised Dr Franklin when he arrives in Philadelphia to draw on me for money for his other expences going, staying & returning. These draughts will have been made probably & will be on their way to me before you receive this, & with the paiments made here will amount to about 5000 livres more than the amount of the bill remitted me. Another third, of 83331 will become due at the end of the ensuing year. Dr Franklin leaves Passy this morning. As he travels in a litter, Mr Houdon will follow him some days hence and will embark with him for Philadelphia. I am in hopes he will not stay in America more than a month.

TO N. AND J. VAN STAPHORST.

1

J.MSS.

PARIS, July 30, 1785.

GENTLEMEN,-I received yesterday your favor of

the 25th. Supposing that the funds which are the

1 Bankers in Amsterdam.

object of your enquiry are those which constitute what we call our Domestic debt, it is my opinion that they are absolutely secure: I have no doubt at all but that they will be paid with their interest at six per cent. But I cannot say that they are as secure and solid as the funds which constitute our foreign debt; because no man in America ever entertained a doubt that our foreign debt is to be paid fully; but some people in America have seriously contended that the certificates & other evidences of our domestic debt ought to be redeemed only at what they have cost the holder; for I must observe to you, that these certificates of Domestic debt having as yet no provision for the payment either of principal or interest, and the original holders being mostly needy, they have been sold at a very great discount. When I left America (July 1784) they sold in different states at from 15/ to 2/6 in the pound, and any amount of them might then have been purchased. Hence some thought that full justice would be done if the public paid the purchasers of them what they actually paid for them, & interest on that. But this is very far from being a general opinion; a very great majority being firmly decided that they shall be paid fully. Were I the holder of any of them, I should not have the least fear of their full paiment. There is also a difference between different species of certificates, some of them being receivable in taxes, others having the benefit of particular assurances, &c. Again some of these certificates are for paper money debts. A deception here must be guarded against. Con

In

gress ordered all such to be re-settled by the depreciation tables, and a new certificate to be given in exchange for them expressing their value in real money. Yet all have not yet been resettled. short this is a science in which few in America are expert, and no person in a foreign country can be so. Foreigners should therefore be sure that they are well advised before they meddle with them, or they may suffer. suffer. If If you will reflect with what degree of success persons actually in America could speculate in the European funds which rise and fall daily, you may judge how far those in Europe may do it in the American funds, which are more variable from a variety of causes.

I am not at all acquainted with Mr. Daniel Parker, but as having once seen him in Philadelphia. He is of Massachusetts (I believe) and I am of Virginia. His circumstances are utterly unknown to me. I think there are few men in America, if there is a single one, who could command a hundred thousand pounds sterling's worth of these notes, at their real value. At their nominal amount this might be done perhaps with 25.000 sterling, if the market price of them be as low as when I left America.

DEAR SIR,-I was honoured yesterday with yours of the 24th instant. When the 1st article of our in

1 The parts in italic are underlined, evidently to be translated into cipher.

strns of May 7. 1784, was under debate in Congress, it was proposed that neither party should make the other pay in their ports greater duties than they paid in the ports of the other. One objection to this was it's impracticability, another that it would put it out of our power to lay such duties on alien importation as might encourage importation by natives. Some members much attached to English policy thought such a distinction should actually be established. Some thought the power to do it should be reserved in case any peculiar circumstances should call for it, tho under the present or perhaps any probable circumstances they did not think it would be good policy ever to exercise it. The footing gentis amicissima was therefore adopted as you see in the instruction. As far as my inquiries enable me to judge France and Holland make no distinction of duties between aliens and natives. I also rather believe that the other states of Europe make none, England excepted, to whom this policy, as that of her navigation act, seems peculiar. The question then is, should we disarm ourselves of the power to make this distinction against all nations in order to purchase an exception from the alien duties in England only; for if we put her importations on the footing of native, all other nations with whom we treat will have a right to claim the same. I think we should because against other nations who make no distinction in their ports between us & their own subjects, we ought not to make a distinction in ours. And if the English will agree, in like manner to make none, we should with equal