A ship of that nation has been brought in here by the Black Prince, having an English cargo. I consulted with Messrs Adams and Dana, who informed me that it was an established rule with us in such cases to confiscate the cargo, but to release the ship, paying her freight, &c. This I have accordingly ordered in the case of this ship, and hope it may be satisfactory. But it is a critical time with respect to such cases, for whatever may formerly have been the law of nations, all the neutral powers at the instance of Russia seem at present disposed to change it, and to enforce the rule that _free ships shall make free goods_, except in the case of contraband. Denmark, Sweden, and Holland, have already acceded to the proposition, and Portugal is expected to follow. France and Spain, in their answers, have also expressed their approbation of it. I have, therefore, instructed our privateers to bring in no more neutral ships, as such prizes occasion much litigation, and create ill blood. The Alliance, Captain Landais, took two Swedes in coming hither, who demand of us for damages, one, upward of sixty thousand livres, and the other near five hundred pounds sterling; and I cannot well see how the demand is to be settled. In the newspapers that I send, the Congress will see authentic pieces expressing the sense of the European powers on the subject of neutral navigation. I hope to receive the sense of Congress for my future government, and for the satisfaction of the neutral nations now entering into the confederacy, which is considered here as a great stroke against England. In truth, that country seems to have no friends on this side of the water; no other nation wishes it success in its present war, but rather desires to see it effectually humbled; no one, not even their old friends the Dutch, will afford them any assistance. Such is the mischievous effect of pride, insolence, and injustice on the affairs of nations, as well as on those of private persons! The English party in Holland is daily diminishing, and the States are arming vigorously to maintain the freedom of their navigation. The consequence may possibly be a war with England, or a serious disposition in that mad nation to save what they can by a timely peace.