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Subject Area: Political Theory
Topic: The American Revolution and Constitution

TO SECRETARY LIVINGSTON. - John Adams, The Works of John Adams, vol. 8 (Letters and State Papers 1782-1799) [1853]

Edition used:

The Works of John Adams, Second President of the United States: with a Life of the Author, Notes and Illustrations, by his Grandson Charles Francis Adams (Boston: Little, Brown and Co., 1856). 10 volumes. Vol. 8.

Part of: The Works of John Adams, 10 vols.

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TO SECRETARY LIVINGSTON.

Amsterdam, 28 July, 1783.

Sir,—

I find, upon inquiry, that there are in this Republic, at Amsterdam, Rotterdam, and Dort, near one hundred and thirty sugar-houses. The whole of the raw sugars produced in Surinam, Berbice, Essequibo, and Demerara, are wrought in these houses; and, besides, raw sugars were purchased in Bordeaux and Nantes, after being imported from the French islands in French bottoms. Raw sugars were also purchased in London, which went under the general name of Barbadoes sugars, although they were the growth of all the English islands, and imported to London in British bottoms. I have learnt further, that great quantities of raw Brazil sugars were purchased in Lisbon, and that these were cheaper than any of the others. All these raw sugars were imported into Amsterdam, Rotterdam, and Dort, and there manufactured for exportation. We must endeavor to obtain a share in this trade, especially with Lisbon or the Western Islands.

Since it is certain that neither Portugal, France, nor England, has been able to manufacture all its raw sugars, but each of them sold considerable quantities to the Dutch, I suppose that we may undoubtedly purchase such sugars in future in Lisbon, Bordeaux, Nantes, London, and perhaps Ireland, and carry them where we please, either home to America, or to Amsterdam, or to any part of Europe, and there sell them, and in this way promote our own carrying trade, as well as enable ourselves to make remittances. I cannot see why the English or French should be averse to their sugars going to America directly; and if they insist upon carrying them in their own ships, we may still have enough of them. The Dutch have the most pressing commercial motives to bring home their West India produce; yet they would really gain the most by opening a free communication with us, because they would the most suddenly make their colonies flourish by it.

Molasses and rum we shall have, probably, from all the islands,—English, French, and Dutch,—in our own bottoms, unless the three nations should agree together to keep the whole trade of their islands in their own ships, which is not likely.

I have made all the inquiries I could, and have sown all the seeds I could, in order to give a spur to our loan. Three thousand obligations have been sold, and the other two thousand are signed; but at this time there is a greater scarcity of money than ever was known. The scarcity is so great, that the agio of the bank, which is commonly at four or five per cent., fell to one and a half. The directors at length shut up the bank, and it continues shut. The English omnium, which at first was sold for eight or ten per cent. profit, fell to one and a half. The scarcity of money will continue until the arrival of the Spanish flotilla at Cadiz. Seven eighths of the treasures of that flotilla will come here, and make money plenty. Then we may expect that my obligations will sell.

In the mean time, I have great pleasure in assuring you, that there is not one foreign loan open in this Republic which is in so good credit, or goes so quick as mine. The Empress of Russia opened a loan of five millions about the same time that I opened mine. She is far from having obtained three millions of it. Spain opened a loan with the house of Hope at the same time for two millions only, and, you may depend upon it, it is very far from being full. Not one quarter part of the loan of France upon life-rents, advantageous as it is to the lender, is full. In short, there is not one power in Europe whose credit is so good here as ours. Russia and Spain, too, allow of facilities to undertakers and others, in disposing of their obligations, much more considerable than ours; yet all does not succeed. You will see persons and letters in America that will affirm that the Spanish loan is full, and that France and Spain can have what money they please here. Believe me, this is all stockjobbing gasconade. I have made very particular inquiries, and find the foregoing account to be the truth. Of all the sons of men, I believe the stockjobbers are the greatest liars. I know it has been given out that the Spanish loan which was opened at Hope’s was full the first day. This I know has been affirmed in the hearing of Americans, with a confidence peculiar, and with a design, I suppose, that it should be written or reported to congress. But I am now assured that it is so far from being true, that it is not near full to this hour. Let me beg of you, sir, to give Mr. Morris an extract of this, because I am so pressed for time that I cannot write to him.

Upon further inquiry concerning sugars, I find that the Dutch were used to purchase annually considerable quantities of the raw sugars of Spain, as well as of France, England, and Portugal. Some of these they obtained by a clandestine trade between Curaçao and Havana and St. Domingo; but the greater part were purchased at Cadiz. I suppose our merchants and masters of vessels will be as adroit at inventing and executing projects of illicit trade as others. But this is a resource that congress and the States cannot depend on, nor take into their calculations. Illicit trade will ever bear but a small proportion to that which is permitted. And our governments should take their measures for obtaining, by legal and honorable means, from Spain, Portugal, France, England, Holland, and Denmark, all the productions which our people may want for consumption, for manufacture, and for exportation.

I have the honor to be, &c.

John Adams.