could not, undertake to try them; and we had not Captains enough to make a Court martial for the purpose. The sending them to America, with evidence to convict them, will be a great trouble and expense, and perhaps their offence cannot be so clearly made out as to justify a punishment sufficient to deter by its exemplary severity. Possibly, the best use that can be made of them, is to give them in exchange for as many Americans in the cartel now operating here. The perfidious conduct of the English and Scotch sailors in our service, a good deal discourages the idea of taking them out of those prisons in order to employ them. This cartel is at length brought about by the indefatigable endeavors of an old friend of mine, and a long declared one to America, Mr Hartley, member of Parliament for Hull. The ship employed has already brought us one cargo from the prison at Plymouth. The number was intended for a hundred, but proved ninetyseven, and she is returned with as many in exchange, to bring us a second number from the prison at Portsmouth. This is to continue till all are exchanged. The Americans are chiefly engaged with Captains Jones and Landais. This exchange is the more remarkable, as our people were all committed as for high treason. Agreeable to the seventh instruction, I have earnestly recommended the reduction of Halifax and Quebec. The Marquis de Lafayette joined me warmly in the application for this purpose, and I hope we shall in due time see some good effects from it. I have also in various ways, and through different channels, laid before the Ministry the distressed state of our finances in America. There seems a great willingness in all of them to help us, except in the Controller, Monsieur Necker, who is said not to be well disposed towards us, and is supposed to embarrass every measure proposed to relieve us by grants of money. It is certain, that under the resolution, perhaps too hastily declared, of the King's imposing no new taxes on his subjects for this year, the Court has great difficulties in defraying present expense, the vast exertions to put the navy in a condition to equal that of England having cost immense sums. There is also a prevailing opinion, that the most effectual service to us is to be expected from rendering their marine superior to that of England. The King has, however, to encourage our loan in Holland, been so good as to engage under his hand, to be security for our payment of the interest of three millions of livres, but that loan has not yet amounted to more than about eighty thousand florins. Doctor Price, whose assistance was requested by Congress, has declined that service, as you will see by the copy of his letter enclosed. To me it seems, that the measure recommended by the wisdom of Congress, for diminishing the quantity of paper by taxes of large nominal sums, must have very salutary effects.