The war in Germany supervening on that between us and Great Britain, and the preparations for it by France and Spain, have raised and multiplied the demand for money, so as to give the holders of it their choice and their price. The Empress Queen has engrossed every shilling in the Netherlands. England has drawn large sums from the Hollanders, who cannot easily quit their former market. France is negotiating a loan of one hundred million livres, which will exhaust Geneva and Switzerland. The money holders regard the lending their money at such a distance, as Jacob did the sending Benjamin into Egypt, and it is time only will make them endure the thought of such a separation. These are the difficulties which the circumstances of things oppose to our scheme of a loan, and render the aid of some other operation necessary for sinking the superabundant paper. The Minister’s answer relative to M. Holker was, that he had no authority from this Court, but on this our joint letter I expect will be more full. I have determined to write to you once a month or oftener, as opportunity offers, and as we do not write so frequently, I am tempted to mention things which should properly come from all the Commissioners, as they relate to the joint commission. From the necessity of the case we have ventured to administer the oath of allegiance to those who desire passports of us, but I hope Congress will authorise their Commissioners to do so where it is necessary. I have the honor to be, &c. ARTHUR LEE. TO JAMES GARDOQUI. Paris, August 27th, 1778. Dear Sir, I received yesterday your favor of the 13th. If I remember rightly what made me delay writing to you relative to the bills was my desire of informing you, at the same time, of their being accepted; and it was long before I could learn that myself, from the manner in which they were drawn. I am very sorry it did you any disservice.