Mr Jay means to send soon large packets to Congress, to which I beg leave to refer the Committee for more minute details on the subject of this and my other letters, than I can furnish it, from not being in possession of the various papers, and communications which respect the mission. I have the honor to be, &c. WILLIAM CARMICHAEL. * * * * * TO THE COMMITTEE OF FOREIGN AFFAIRS. Madrid, November 28th, 1780. Gentlemen, I did myself the honor of addressing the Committee frequently in the course of the last month; this letter, therefore, can furnish little besides a confirmation of what I then believed to be the disposition of the Court, of the state of Europe, and of this part of it more particularly, derived from the best information in my power to obtain. I have in a great measure confined my inquiries to two objects, the situation of the finances of Spain and its disposition toward us and our ally. Every day gives me reason to think the former are critically circumstanced. I know from good authority the ways and means for the next year are not devised yet, and I have great reason to believe that the necessary funds cannot be procured by taxation, because the augmentation of the present year's taxes has not produced what the Ministry expected, and neither the commerce nor produce of Spain will permit further efforts in this way. In short, the current expenses of 1780 have exceeded the revenue twentyfive millions of dollars, and notwithstanding, the arrearages to the public creditors are considerable. The loan for nine millions of dollars, mentioned in my former letters, is not yet completed, in part owing to the obstacles thrown in its way by M. Necker. The resentment of the Spanish Ministry, which this interference excited, has not yet subsided, and I am afraid the prejudices thereby excited will not soon be eradicated, although common interest may stifle them apparently at present. The mode of raising money in the manner heretofore mentioned may become the only plan practicable, should others now in contemplation not succeed, and Spain may be obliged to have recourse to paper, from inability to procure money by other methods.