I have had the honor to inform you, Sir, that this money was loaned to the United States in order to enable them to continue the war; the wisdom of Congress will determine, according to circumstances, the manner of effecting this important object, and by united efforts, of compelling the enemy to conclude a firm and lasting peace. It remains for me to inform you, Sir, that the King has not been able to make this last effort, without great difficulties. I have had the honor of communicating to you those, which prevent the success of loans of any considerable magnitude; they are so great, that I am ordered to announce to you, in the most positive manner, that it will be impossible for the King, under any supposition whatever, to procure new advances of money for Congress, for the next year. With regard to the resources, which you may seek in other places besides France, the letters, which I have had the honor of reading to you, do not allow any success to be looked for, until the United States shall have established a permanent public revenue; and the delay and repugnance, with which they proceed in doing this, being known in Europe, the inclination for lending money to Congress, which may have existed, has disappeared; the lenders make other investments; the speculations, which might have been directed towards the United States, go farther and farther from them, and it will certainly be difficult to bring them back. I refrain from repeating here the other parts of the despatches of the Count de Vergennes, which I have had the honor of communicating to you, because the truths contained in them are well known to you, Sir, and because they all may be reduced to this. _Without the speedy establishment of a substantial public revenue, and without the vigorous execution of the engagements entered into by Congress, the hope of obtaining loans in Europe must be given up._ I am also ordered, Sir, to represent to Congress, that my Court relied upon final and satisfactory measures being taken to secure the payment of the interest, and of the debt contracted by the United Slates toward his Majesty. But I content myself with mentioning this circumstance to you, and before directly announcing it to Congress, I shall wait till their present embarrassments are diminished. You will judge, Sir, by these details, how impossible it is to draw bills upon your Plenipotentiaries, beyond that part of the six millions' loan of this year, which is unappropriated. It is clearly shown, that these bills will not be paid by us, and it is with a full confidence in your regularity in this respect, that I shall inform the Count de Vergennes, that he may be assured, that no demand will be made for any sums whatever, beyond that sum, which has just been determined upon. I have the honor to be, &c. LUZERNE. * * * * * TO GEORGE WASHINGTON.