The original design of this loan was to procure nine millions of dollars, or thirtysix millions of livres in four months, and possibly to enlarge the sum according to exigencies. The projector was to receive ten per cent for expenses and profit, which he was at liberty to divide as he thought proper with the original lenders. To these, I think, he gave three, or three and a half per cent for the use of their money for four months, which money they were to remit in bills of exchange on Spain, and to redraw at the end of four months for their principal and interest. The great secret of the operation is, that government instead of repaying their bills in specie, issues paper to repay them, the credit of which is guarantied by the Crown and the different Chambers or Councils of the Kingdom, viz of Castile, &c. &c. This paper bears an interest of four per cent. A _cedula_, or royal ordinance, will be published the 20th or 21st of this month, which gives it currency, and inflicts severe penalties on any one who refuses it as a legal payment. M. Necker did not discover the latter part of the scheme until large sums had been remitted from France, and I suppose, fearing that its operation would be complete before his representations of what he thought its evil tendency, could be attended to here, he immediately gave orders not to receive the bills of exchange of the houses concerned in this measure at the _Caisse Royale_ in France. Besides, the house of Gerardot, Haller & Co. one of the most considerable in Europe, and of which he was once the head, and his brother is still a partner, wrote circular letters to all parts of Europe discrediting the loan. The consequence has been, that the persons in France and elsewhere, whose bills were refused at the _Caisse Royale_ have been pushed here so hard by their creditors, that the Spanish government has been obliged to make considerable remittances to support their credit, that further advances of money have been stopped, and that bills of exchange on Spain have sold at a loss of one and one and a half per cent. This has irritated the merchants here, and perhaps we may be the innocent victims. For I am persuaded, that Spain, without obtaining it by loans, has not money in Europe to afford us considerable aids, how great soever her inclination may be to assist us, and I think the Committee will be of the same opinion, on reading the information I gave Mr Jay on the subject of the revenues of this country, in consequence of his instructions to me at Cadiz. I shall be happy to have it in my power to inform the Committee, that my apprehensions have been ill grounded.