With respect to the _statu quo_, he says, that though from the number of their conquests it would be beneficial both to France and Spain, yet it has not entered into their system so far as it regards America, and that his Majesty accordingly refused to accede to the plan of negotiation proposed by the mediating powers, which held up that idea. He exhorts the Minister to recommend to Congress the most vigorous exertions, and to assure them, that the expulsion of the enemy from this continent depends in a great measure on the exertion of the United States; that France would be able to afford us very little assistance; and that Britain, so far from discovering any inclination to peace upon reasonable terms, absolutely refused the plan of negotiation proposed by the mediating powers; so that arms alone could compel her to it. He mentions, that the King being apprehensive, that the capture of the Marquis de Lafayette might reduce us to some difficulties, had ordered her cargo to be replaced immediately; and that in consequence of applications from the States of Virginia and Maryland, he had ordered a number of arms and military stores to be shipped to them, subject however to the order of Congress. That this and the cargo designed to replace that of the Marquis de Lafayette, were to be paid for out of the loan negotiated in Holland, which he had occasion to think would be completed. He expresses a desire, that the plan for the appointment of Consuls should be digested and adopted, as the Court of France wished to make it the basis of some commercial arrangements between France and the United States.
The Secretary for Foreign Affairs further informed Congress, that the Minister of France had communicated to him the following extract of a letter from the Count de Vergennes, which he had transmitted to the Superintendent of Finance.
Extract of a letter from the Count de Vergennes, September 7th, 1781.
"We think that since the arrival of Colonel Laurens, you have stopped the bills of Mr Morris on Messrs Le Couteulx. If the Superintendent has not followed your advice, he will cause us some embarrassment, as we have not destinated any fund for that article. We have peremptorily declared to Dr Franklin, that we will not in future discharge any bills, that had not been drawn with your consent. As to you, Sir, we cannot but repeat our former instructions on this subject; and we direct you to authorise no draft even for a small sum."