In the course of this month I did myself the honor of writing to you by the General Pickering from Bilboa, and the Captain Kyan from Cadiz, as also via France. In these letters I informed you of the situation of our affairs here, and of that of Europe in general; since which, we have advanced very little. The Minister had informed Mr Jay, on the 5th of July, that he had sent for a person to succeed M. Miralles, and that on his arrival, arrangements would be made with respect to the bills presented to Mr Jay for payment, and that he would then enter into discussions on the other objects of Mr Jay's mission. Before and since that period, bills to the amount of thirty thousand dollars have been presented, of which Mr Jay has accepted for fourteen thousand, by the direction of the Minister, and none of the others have as yet been protested. You will see by a state of the finances of this country, which in compliance with Mr Jay's instructions to me, at my departure from Cadiz, I have had the honor to give him, that their revenues and resources since the war have greatly diminished, and that previous to that period, they were by no means so flourishing as Congress had reason to suppose. In most of the conferences with the Minister, the scarcity of cash has been objected more than the want of inclination, and hints have been thrown out, that it would be much more convenient for the Court, to grant the United States aids in money from their possessions in America than in Europe. Although hopes have been as constantly given, that a part of the sum drawn for would be furnished at the end of the present year, or commencement of the next, and that measures in the mean time might be taken to prevent embarrassments, in case of the arrival of bills after that period, great surprise has been expressed, that Congress should take such a step without previously informing the Court of their intentions, and obtaining its approbation of the measure. Congress will therefore judge of the propriety of disposing of any bills, that may remain unsold, until it is fully ascertained, that they will be punctually paid. Mr Jay, now at Madrid, where the death of his child, and the consequent distresses of his family, detain him a few days, will undoubtedly transmit more ample intelligence on this subject, with the various papers in his possession necessary to explain it. This Court has been obliged to make considerable loans, for their own current expenses, the nature of which I hope to be able to explain in a future letter. It has lately obtained seven millions, five hundred thousand current dollars, in France and elsewhere. The loan is for nine millions, and from the nature of it will create a temporary paper circulation to that amount in this kingdom. I shall transmit to Congress, as soon as it becomes public, a full detail of its operations.