On our return from Versailles, Mr Oswald took occasion to impress me with ideas, that the present weakness of the government of England, with regard to continuing the war, was owing chiefly to the division of sentiments about it. That in case France should make demands too humiliating for England to submit to, the spirit of the nation would be roused, unanimity would prevail, and resources would not be wanting. He said there was no want of money in the nation, that the chief difficulty lay in the finding out new taxes to raise it, and, perhaps, that difficulty might be avoided by shutting up the Exchequer, stopping the payment of the interests of the public funds, and applying that money to the support of the war. I made no reply to this, for I did not desire to discourage their stopping payment, which I considered as cutting the throat of the public credit, and a means of adding fresh exasperation against them with the neighboring nations. Such menaces were besides an encouragement with me, remembering the adage, that _they who threaten are afraid_. The next morning, when I had written the above letter to Lord Shelburne, I went with it to Mr Oswald's lodgings, and gave it to him to read before I sealed it, that in case anything might be in it with which he was not satisfied, it might be corrected; but he expressed himself much pleased. In going to him, I had also in view the entering into a conversation, which might draw out something of the mind of his Court on the subject of Canada and Nova Scotia. I had thrown some loose thoughts on paper, which I intended to serve as memorandums for my discourse, but without a fixed intention of showing them to him. On his saying that he was obliged to me for the good opinion I had expressed of him to Lord Shelburne in my letter, and assuring me, that he had entertained the same of me, I observed, that I perceived Lord S. had placed great confidence in him, and as we had happily the same in each other, we might possibly, by a free communication of sentiments, and a previous settling of our own minds on some of the important points, be the means of great good, by impressing our sentiments on the minds of those with whom they might have influence, and where their being received might be of importance. I then remarked, that his nation seemed to desire a reconciliation, that to obtain this, the party which had been the aggressor and had cruelly treated the other, should show some marks of concern for what was past, and some disposition to make reparation; that perhaps there were things, which America might demand by way of reparation, and which England might yield, and that the effect would be vastly greater if they appeared to be voluntary, and to spring from returning good will; that I, therefore, wished England would think of offering something to relieve those, who had suffered by its scalping and burning parties. Lives indeed could not be restored nor compensated, but the villages and houses wantonly