"2dly. On considering the proposed contract, it became important to distinguish between the building these vessels with the money of the United States, or with that of Spain. The latter was very practicable, and I gave your Excellency that opinion in my letter of the 9th instant. The former, on the contrary, appeared to me not to be within the power of the United States, and candor obliged me to make this known to your Excellency in the same letter.
"I knew it to be impossible for Congress, consistent with good faith, to contract; that, notwithstanding their great want of money, the injuries of a six years' war, and their being actually invaded, they would repay immediately the monies lent them, either in ships or otherwise. It is not uncommon for ancient and opulent nations to find it necessary to borrow money in time of war, but I believe it very seldom happens, that they find it convenient to pay those debts till the return of peace. If this be the case with powerful and long established nations, more cannot be expected from a young nation brought forth by oppression, and rising amidst every species of violence and devastation, which fire, sword, and malice can furnish for their destruction.
"If attentive only to obtaining payment of these bills, and thereby relieving my country from the complicated evils which must result from their being protested, I had entered into the proposed engagements for immediate repayment, by building vessels, &c. if I had done this, notwithstanding a full conviction, that the contract so made could not be fulfilled, my conduct, however convenient in its immediate consequences, would have been highly reprehensible. This reflection, therefore, will I hope convince your Excellency of the purity of my intentions, and induce you to ascribe my objections to the contract, to want of ability, and not to want of inclination in the United States to perform it. No consideration will ever prevail upon me to practise deception, and I am happy in a persuasion, that although truths may sometimes not please, yet that when delivered with decency and respect, they will never offend either his Majesty or your Excellency.
"Believe me, Sir, the United States will not be able to pay their debts during the war, and therefore any plan whatever calculated on a contrary position must be fruitless. I am ready to pledge their faith for repaying to his Majesty, within a reasonable term after the war, and with a reasonable interest, any sums he may be so kind as to lend them. What more can I offer? What more can they do? If there be any services they can do to his Majesty, consistent with their safety and defence, they are ready and will be happy to render them. They respect the King and the nation, and at the very time they are requesting his aid, they are soliciting to be united to him by bonds of perpetual amity and alliance. Against his enemies as well as their own, they are now in arms; and the supplies they ask are not for the purpose of luxury or aggrandizement, but for the sole and express purpose of annoying those enemies, and enabling France, Spain, and themselves, to obtain a peace honorable and advantageous to each.