that the peace was absolutely necessary for them. That the nation had been foolishly involved in four wars, and would no longer raise money to carry them on, so that if they continued it would be absolutely necessary to stop payment of the interest money on the funds, which would ruin their future credit. He spoke of stopping on all sums above. 1000l. and continuing to pay on those below; because the great sums belonged to the rich, who could better bear the delay of their interest; and the smaller sums to poorer persons, who would be more hurt, and make more clamour; and that the rich might be quieted by promising them interest upon their interest. All this looked as if the matter had been seriously thought on: Mr. Oswald has an air of great simplicity and honesty, yet I could hardly take this to be merely a weak confession of their déplorable state; and thought it might be intended as a kind of intimidation, by showing us that they had still that resource in their power, which he said would furnish five millions a year. But he added, our enemies may now do what they please with us, they have the ball at their foot, was his expression, and we hope they will show their moderation, and their magnanimity. He then repeatedly mentioned the great esteem the ministers had for me, that they with all the considerate people of England looked to and depended on me for the means of extricating the nation from its present desperate situation, and that perhaps no single man had ever in his hands an opportunity of doing so much good, as I had at this present, with much more to that purpose: he then showed me a letter to him from Lord Shelburne, partly I suppose that I might see his Lordship's opinion of ine, which, as it has some relation to the negociation, is here inserted. He left it with me, requesting that I would communicate it to Mr. Walpole.

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VOL. II,

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Whitehall, May 21, 1782.

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SIR,

It has reached me that Mr. Walpole esteems himself much injured by your gomg to Paris, and that he conceives it was a measure of mine, intended to take the present negociation with the court of France out of his hands, which he conceives to have been previously commenced through his channel by Mr. Fox. I must desire that you will have the goodness to call upon Mr. Walpole, and explain to him distinctly, how very little foundation there is for, so unjust a suspicion, as Loknow of no such intercourse. Mr. Fox declares, he considered what had passed between him and Mr. Walpole of a mere private nature, not sufficiently material to mention to the King or the cabinet, and will write to Mr. Walpole to explain this distinctly to him. But if you find the least suspicion of this kind has reached Dr. Franklin, or M. le Comte de Vergennes, I desire that this matter may be clearly explained to both. I have too much friendship for Dr. Franklin, and too much respect for the character of M, le Comte de Vergennes, with which I am perfectly acquainted, to be so indifferent to the good opinion of either, as to suffer them to believe me capable of an intrigue, where I have both

Since the publication of the first edition of this work, a very intimate friend of Mr. Walpole's has suggested to the editor, that Lord Shelburne must have been misinformed in regard to Mr. W.'s thinking himself aggrieved by Mr. Oswald's mission. But that Mr. W. had been authorized by a letter from Mr. Fox to negociate' respecting a claim made by the French government in behalf of the inhabitants of St. Eustatin, for a compensation for the merchandize &c. of which they had been plundered by Admiral, afterwards Lord Rodney. That in Mr. Fox's letter (which this friend actually saw) there was a general intimation of a.wish for peace, but that Mr. W. did not consider himself as authorized to take any step towards obtaining it; and that he is confident he did not expect to be employed for the purpose which occasioned Mr. Oswald's mission.

professed and observed a direct opposite conduct. In truth I hold it in such perfect contempt, that however proud I may be to serve the, King in my present station or in any other, and however anxious I may be to serve my country, I should not hesitate a moment about retiring from any situa tion which required such services. But I must do the King the justice to say, that his Majesty abhors them, and I need not tell you, that it is my fixed principle that no country in any moment can be advantaged by them. I am with great truth and regard, Sir, your most obedient humble servant, SHELBURNE.

Richard Oswald, Esq.

In speaking farther of the ministry's opinion of the great service it might be in my power to render, Mr. Oswald said he had told them in one of his conversations, that nothing was to be expected of me but consistence, nothing unsuitable to my character, or inconsistent with my duty to my country; I did not ask him the particular occasion of his saying this, but thought it looked a little as if something inconsistent with my duty had been talked of or proposed...

Mr. Oswald also gave me a copy of a paper of MEMORANDUMS written by Lord Shelburne, viz.

--1. That I am ready to correspond, more particularly with Dr. Franklin if wished.

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2. That the enabling act is passing with the insertion of commissioners recommended by Mr. Oswald, and, on our part commissioners will be named, or any character given to Mr. Oswald, which Dr. Franklin and he may judge condu cive to a final settlement of things between Great Britain and America. Which Dr. Franklin very properly says requires to be treated in a very different manner from the peace between Great Britain and France, who have been always at enmity with each other.

! 3. That an establishment for the loyalists must always be upon Mr. Oswald's mind, as it is uppermost in Lord Shelburne's, besides other steps in their favor, to influence the several States to agree to a fair restoration or compensation for whatever confiscations have taken place.

4. To give Lord Shelburne's letter about Mr. Walpole to Dr. Franklin.

On perusing this paper, I recollected that a bill had been some time since proposed in parliament to enable his Majesty to conclude a peace or truce with the revolted Colonies in America, which I supposed to be the enabling bill mentioned; that had hitherto slept, and not having been passed was perhaps the true reason why the colonies were not mentioned in Mr. Grenville's commission. Mr. Oswald thought it likely, and said that the words " insertion of commissioners recommended by Mr. Oswald," related to his advising an express mention in the bill of the commissioners appointed by congress to treat of peace, instead of the vague denominations of any person or persons, &c. in the first draft of the bill. As to the loyalists, I repeated what I said to him when first here, that their estates had been confiscated by the laws made in the particular States where the delinquents had resided, and not by any law of Congress, who indeed had on power either to make such laws, or to repeal them, or to dispense with them, and therefore could give no power to their commissioners to treat of a restoration for those people: that it was an affair appertaining to each State. That if there were justice in compensating them, it must be due from England rather than fron America; but in my opinion, England was not under any very great obligations to them, since it was by their misrepresentations and bad counsels that she had been drawn into this miserable war. And that if an account was to be brought against us for their losses, we should more than balance it, by an account of the ravages

they had committed all along the coasts of America., Mr. Oswald agreed to the reasonableness of all this, and said he had, before he came away, told the ministers, that he thought no recompence to those people was to be expected from us; that he had also, in consequence of our former conversation on that subject, given it as his opinion that Canada should be given up to the United States, as it would prevent the occasions of future difference, and as the government of such a country was worth nothing, and of no importance if they could have there a free commerce; that the Marquis of Rockingham and Lord Shelburne, though they spoke reservedly, did not seem very averse to it: but that Mr. Fox seemed startled at the proposition. He was, how ever, not without hopes that it would be agreed to,

We now came to another article of the note, viz. “On our part commissioners will be named, or any character given to Mr. Oswald which Dr. Franklin and he may judge conducive to a final settlement of things between Great Britain and America." This he said was left entirely to me, for he had no will in the affair; he did not desire to be farther concerned than to see it en train; he had no personal views either of honor or profit. He had now seen and conversed with Mr. Grenville, thought him a very sensible young gentleman, and very capable of the business; he did not therefore see any farther occasion there was for himself; but if I thought otherwise, and conceived he might be farther useful, he was content to give his time and service in any character or manner I should think proper. I said his knowledge of America, where he had lived, and with every part of which and of its commerce and circumstances he was well acquainted, made me think that in persuading the ministry to things reasonable relating to that country, he could speak or write with more weight than Mr. Grenville, and therefore I wished him to continue in the service: and I asked him