The English have completed their loan among themselves. No foreigners have assisted them, although the terms to the lender are better than any yet offered by that nation, except once. Foreigners know that they have yet several millions to fund, for which they must offer still better terms. The Spaniards have refused the mediation of France and England in their dispute with Portugal, being determined to prosecute the war until Portugal demands peace, and makes reparation. They have taken the important Island of St Catharine's, on the coast of Brazil, without loss, and mean vigorously to prosecute their operations on Brazil. This I have from undoubted authority, one of the family Ministers. A report prevails, that the Indians of the east have fallen on their oppressors, and have taken Madras. India stock has, consequently, fallen. Both France and Spain continue their armaments as if preparing for some great event. This obliges England to do the same. All their naval and army contracts are for five years, and they employ as many workmen in their dock yards, as they did in the height of the last war. You will serve us essentially, by pushing the cruisers who visit you into the European seas, particularly those of the north, in the months of August, September, and October, directing them to send their prizes into France or Spain. It would render our negotiation with Prussia more successful, if a tobacco ship could by any means be pushed into Emden, which ship might make her returns in manufactures necessary for us, and fifteen or twenty per cent cheaper than we can have them here. Urge it to the honorable Committee. I am, &c. WILLIAM CARMICHAEL. _P. S._ Two vessels with stores are just despatched from different ports. Forward them, my Dear Sir, immediately to our dear country. Captains Wickes, Johnson, and Nicholson, have just destroyed sixteen vessels on the English and Irish coast. I am despatching Conyngham from hence on the same business in a privateer. I begin to think war unavoidable. W. C. _Dunkirk, July 6th._ FOOTNOTES: [1] Mr Carmichael's letters from Berlin, if he ever wrote any, are missing. * * * * * TO THE PRESIDENT OF CONGRESS. Yorktown, June 17th, 1778. Sir, Since my arrival here, I have been informed of the honor conferred on me by Congress, in being appointed Secretary to the Commissioners at the Court of France, an honor which greatly overpays the feeble efforts of my zeal, and is more than I could expect, considering the well founded pretensions of others to their notice. I beg leave through you, Sir, to express my grateful sensibility of this proof of their confidence, as well as the ardent desire I have of meriting it in future.[2] I have the honor to be, &c.