and without prejudice. I have searched and sifted many manuscripts in European and American archives to get at the truth of this strange chapter in our revolutionary history, concerning which there is even yet an unsettled controversy.1
The reader who desires to explore the subject will find an ample literature concerning it, but with confusing omissions, partly due to a neglect of Paine's papers.
The suggestion of French aid to America was first made in May, 1775, by Dubourg, and a scheme was submitted by Beaumarchais to the King. This was first brought to light in November, 1878, in the Magazine of American History, where it is said: "It is without date, but must have been written after the arrival of the American Commissioners in Paris." This is an error. A letter of December 7, 1775, from Beaumarchais proves that the undated one had been answered. Moreover, on June 10, 1776, a month before Deane had reached Paris, and six months before Franklin's arrival, the million for America had been paid to Beaumarchais and receipted. It was Deane's ruin that he appeared as if taking credit for, and bringing within the scope of his negotiations, money paid before his arrival. It was the ruin of Beaumarchais that he deceived Deane about that million.
In 1763 France had suffered by her struggle with England humiliations and territorial losses far heavier than those suffered by her last war with Germany. With the revolt of the English colonies in America the hour of French revenge struck. Louis XVI. did not care much about it, but his minister Vergennes did. Inspired by him, Beaumarchais, adventurer and playwright, consulted Arthur Lee, secret agent of Congress in London, and it was arranged that Beaumarchais should write a series of letters to the King, to be previously revised by Vergennes. The letters are such as might be expected from the pen that wrote "The Marriage of Figaro." He paints before the King the scene of France driven out of America and India; he describes America as advancing to engage the conqueror of France with a force which a little help would make sufficient to render England helpless beside her European foes—France and Spain. Learning through Vergennes that the King was mindful of his treaty with England, Beau-marchais made a proposal that the aid should be rendered as if by a commercial house, without knowledge of the government This, the most important document of the case, suppressed until 1878, was unknown to any of the writers who have discussed this question, except Durand and Stille\ the latter alone having recognized its bearing on the question of Beaumarchais' good faith. Beau-marchais tells the King that his "succor" is not to end the war in America, but "to continue and feed it to the great damage of the English"; that "to sacrifice a million to put England to the expense of a hundred millions, is exactly the same as if you advance a million to gain ninety-nine." Half of the million (livres) is to be sent to America in gold, and half in powder. So far from this aid being gratuitous, the powder is to be taken from French magazines at "four to six sols per pound," and sent to America "on the basis of twenty sols per pound." "The constant view of the affair in which the mass of Congress ought to be kept is the certainty that your Majesty is not willing to enter in any way into the affair, but that a company is very generously about to turn over a certain sum to the prudent management of a faithful agent to give successive aid to the Americans by the shortest and the surest means of return in tobacco."
How much of this scheme actually reached the King, and was approved by him, is doubtful. He still hesitated, and another appeal was made (February 29, 1776) embodying one from Arthur Lee, who says: "We offer to France, in return for her secret assistance, a secret treaty of commerce, by which she will secure for a certain number of years after peace is declared all the advantages with which we have enriched England for the past century, with, additionally, a guarantee of her possessions according to our forces." Nothing is said by Arthur Lee about other payments. The Queen had now become interested in the gallant Americans, and the King was brought over to the scheme in April. On May 2, 1776, Vergennes submits to the King the order for a million livres which he is to sign; also a letter, to be written by the hand of the Minister's son, aged fifteen, to Beaumarchais, who, he says, will employ M. Montandoin (the name was really Montieu) to transmit to the Americans "such funds as your Majesty chooses to appropriate for their benefit." There are various indications that the pecuniary advantages, in the way of "sols" and tobacco, were not set before the King, and that he yielded to considerations of state policy.
After receiving the million (June 10th) Beaumarchais wrote to Arthur Lee in London (June 12, 1776): "The difficulties I have found in my negotiations with the Minister have determined me to form a company which will enable the munitions and powder to be transmitted sooner to your friend on condition of his returning tobacco to Cape Francis."
To Arthur Lee, whom he had met at the table of Lord Mayor John Wilkes, Beaumarchais had emphasized the "generous" side of his scheme. Tobacco was indeed to be sent, chiefly to give a commercial color to the transaction for the King's concealment, but there appeared no reason to do more with Lee, who had no power of contract, than impress him with the magnanimity and friendship of the French government. This Lee was to report to the Secret Committee of Congress, which would thus be prepared to agree to any arrangement of Beaumarchais' agent, without any suspicion that it might be called on to pay twenty sols a pound for powder that had cost from four to six. Lee did report it, sending a special messenger (Story) to announce to Congress the glad tidings of French aid, and much too gushingly its quasi-gratuitous character.
A month later Silas Deane, belated since March 5th by wind and wave, reached Paris, and about July 17, 1776, by advice of Vergennes, had his first interview with Beaumarchais. Had Beaumarchais known that an agent, empowered by Congress to purchase munitions, was on his way to France, he would have had nothing to do with Lee; now he could only repudiate him, and persuade Deane to disregard him. Arthur Lee informed Deane that Beaumarchais had told him that he had received two hundred thousand pounds sterling of the French administration for the use of Congress, but Deane believed Beaumarchais, who "constantly and positively denied having said any such thing." It had been better for Deane if he had believed Lee.2 It turned out in the end that Beaumarchais had received the sum Lee named, and the French government—more anxious for treaty concessions from America than for Beaumarchais' pocket—assured the American Commissioners that the million was a royal gift.
This claim to generosity, however, or rather the source of it, was a secret of the negotiation. In October, 1777, the commissioners wrote to Congress a letter which, being intercepted, reached that body only in duplicate, March, 1778, saying they had received assurances "that no repayment will ever be required from us for what has already been given us either in money or military stores." One of these commissioners was Silas Deane himself (the others Franklin and Lee). But meanwhile Beaumarchais had claimed of Congress, by an agent (De Francy) sent to America, payment of his bill, which included the million which his government declared had been a gift. This complication caused Congress to recall Deane for explanations.
Deane arrived in America in July, 1778. There were suspicious circumstances around him. He had left his papers in Paris; he had borrowed money of Beaumarchais for personal expenses, and the despatch he had signed in October, saying the million was a gift, had been intercepted, other papers in the same package having duly arrived. Thus appearances were against Deane. The following statement, in Paine's handwriting, was no doubt prepared for submission to Congress, and probably was read during one of its secret discussions of the matter. It is headed "Explanatory Circumstances."
"1st The lost dispatches are dated Oct. 6th and Oct. 7th. They were sent by a private hand—that is, they were not sent by the post. Capt. Folger had the charge of them. They were all under one cover containing five separate Packets; three of the Packets were on commercial matters only—one of these was to Mr. Robert Morris, Chairman of the Commercial Committee, one to Mr. Hancock (private concerns), another to Barnaby Deane, S. Deane's brother. Of the other two Packets, one of them was to the Secret Committee, then stiled the Committee for foreign Affairs, the other was to Richard H. Lee—these two last Packets had nothing in them but blank white French Paper.
"2d. In Sept'r preceding the date of the dispatches Mr. Beau-marchais
