The obtaining money in Europe is doubtful, though not desperate. But this seems very probable, that if the irritation and ill humor in Holland is continued by England’s persisting in the interruption of their trade, they will lend us money out of revenge; and if England retracts, the Dutch will send us such plentiful supplies, and take in return our produce as in a great measure to compensate for the want of funds. The dispute seems to be in such a state, that there is no medium. I am therefore in hopes, that if the war should continue, the distress of it will press with much more severity upon our enemies than on us. I am informed, that a Swedish ship, the Henrica Sofia, Captain P. Held, loaded with Spanish property, bound from London to Teneriffe, has been taken by Captain Cunningham in the Revenge, which being considered in Spain as a violence done to them, has given great offence. I have assured them, that upon its being made to appear in the Admiralty Court in America, that the property is neutral, it will be restored, with such damages as are just. The Court of Spain is so much offended at Captain Cunningham’s conduct before this, that they write me orders have been sent to all their ports to prohibit his entrance. From the beginning to the end of this business of Cunningham, it has been so bad, that Congress only can correct it, by punishing those who are concerned. It has cost the public more than one hundred thousand livres, and embroiled us both with the French and Spanish Courts. The State of Virginia having sent for arms and artillery necessary for their defence, and some advances being absolutely necessary to obtain the supply, I ventured to advance fifty thousand livres out of the public funds in my hands. Had not this demand pressed so much, I certainly should not have done this without the permission of Congress. But as it is, and though I expect the reimbursement before the articles I have ordered for the public will call for payment, yet I think it my duty to communicate this transaction, and submit it to the censure of Congress. I expect a complete cargo is by this time shipped in my department, consisting of blankets, shoes, tentcloth, sailcloth, and rigging for a vessel of five hundred tons. This cargo, with what went before, should contain ten thousand blankets. I have ordered twenty thousand more, which, with half of the freight, I am obliged to advance for the above cargo, will more than employ all the funds in my hands. I have the honor to be, &c. ARTHUR LEE. _P. S._ _November 18th, 1778._ Every hour’s intelligence confirms the opinion, that the enemy will not obtain any Russian auxiliaries. TO JAMES GARDOQUI. Paris, December 4th, 1778. Dear Sir,