TO THE HONORABLE COMMISSIONERS OF THE TREASURY.
GENTLEMEN,--In my last of June 17, 1787, I had the honor of communicating to you the information I had received from Mr. Grand, that your funds here were out, and he considerably in advance. I took occasion to mention to him the paragraph in your letter of February 17, wherein you were so kind as to say your attention should be immediately turned to the making a remittance. However, I understood soon after that he had protested a draught of Mr. Carmichael's, as also a smaller one of five hundred livres. He called upon me, and explaining to me the extent of his advances, observed that he should not be willing to add to them, except so far as should be necessary for the private expenses of myself and secretary, which he wished to be reduced as much below the ordinary allowance as we could, until remittances should be received. He will send you by this packet a state of his accounts, by which he informs me that your account is in arrear about thirty-two thousand livres, advanced by him, and about fifteen thousand livres from a fund of the State of Virginia, placed here for the purchase of arms, making General Washington's statue, &c. In examining his accounts, I found by the one he had sent you formerly, that you were debited two articles of ten thousand livres and two thousand seven hundred and twenty-four livres and sixty-six sous, which belonged to the account of the State of Virginia. This I must explain to you. That State had directed me to have the statue of General Washington made, and given me assurances such as I could rely on, that I should receive funds immediately. Doctor Franklin was setting out to America, and Houdon, the statuary, expressed a willingness to go with him. But it was necessary to advance him a sum of money for that purpose. Rather than lose the opportunity, I ventured to borrow from the fund of the United States those two sums for the State of Virginia, which I knew would be immediately replaced. The funds of the State arrived, (being nearly two hundred thousand livres,) and enabled me not only to replace those sums immediately, but to furnish much larger supplies to the wants of the United States, when their funds failed. Insomuch that the State of Virginia is now in advance here for the United States about fifteen thousand livres, as before mentioned. As yet it has not suffered by any of these advances, but having no money left here but this balance, I shall be censurable by that State if it be not replaced in time to answer the demands on them, which will now be made within a few weeks. Mr. Grand has, by my direction, credited you in the account he now sends for the two sums of ten thousand livres and two thousand, seven hundred and twenty-four livres and sixty-six sous, improperly charged in your former account. He had also debited you in his account for the whole sums paid by the United States, as well as those paid by Virginia, as by himself. The purpose of this was to keep the accounts unmixed, though in fact the funds have been applied occasionally in aid of each other.