In a Newly Discovered Letter, Vice President John Adams Participates in the Dutch Loan That Helped Save American Post-Revolution Finances, A Loan He Negotiated In Great Haste

Few realize that Adams – the man known as the Atlas of American Independence – risked his money to make the US government a success; A very rare letter of a Founding Father managing his own finances; it does not appear in the published works of Adams. It is offered for sale here for the first time.

In October 1781, with the help of the French, the Americans defeated the British at Yorktown, dealing what we now know was a fatal blow.  The war, however, as well as the expenses, continued. Moreover, as active operations wound down, obligations contracted during the war, and buying supplies for Congress and the military, kept pace.  Plus there were interest payment on domestic loans that many had believed would never be re-paid, but with the war as good as won, payment was now expected.

John Adams secured the Dutch Republic’s recognition of the United States as an independent government on April 19, 1782. He also negotiated a loan to the United States of five million guilders,  financed by bankers Nicolaas van Staphorst and Wilhelm Willink. In October 1782, he secured the plum – a Treaty of Amity and Commerce with the Netherlands – the first such treaty between the United States and a foreign power following the 1778 treaty with France. The house that Adams bought during this stay in the Netherlands became the first American-owned embassy on foreign soil.

By the time 1784 rolled around, US finances were in a spiral.  Never before had they been in quite so desperate a state as in the early months of that year. Adams was at that time in London, where he had gone to improve his health.  But his rest was soon broken by a dispatch from his Amsterdam bankers conveying tidings of an alarming nature. Robert Morris, in charge of the nation’s finances, had drawn bills to the amount of one million florins. But the bankers had but four hundred thousand florins in the US accounts to cash the drafts. Bills sufficient to consume half that sum had already been presented.  Adams now felt that American credit was indeed at stake, and despite his ill health and the rigors of the season set off for Amsterdam.

Adams was successful and managed to secure a new loan.   But this 1784 loan reflected the more negative bargaining position that the US now had.  It provided 2,000,000 guilders at 4 percent per year. On this loan, however, the lenders brought in “subscribers” to participate in the loan, and chosen by lot, offered them the inducement of an added “gratification” of 4 to 10 percent of 690,000 guilders, payable at the time of redemption. The loan was to run for seventeen years and then to be redeemable in six annual payments.  The premiums were in 1,000 guilder amounts.  Interest was payable in annual coupons.

The relative handful of people who subscribed were in essence making it possible for the United States to borrow the money and continue operations.  Adams, who had negotiated the loan, dug into his own pocket to join as one of the subscribers. Few realize that the man known as the Atlas of American Independence risked his money to make the US government a success.

In this letter, Adams submits the interest payments due him as a subscriber to his bankers, and also, as one of his premiums had come due, he directs it to be reinvested. This letter does not appear in the published works of Adams and has been in the same collection for generations. It is offered for sale here for the first time.

Autograph letter signed, Phladelphia, April 30, 1791, to Willinks. “My dear friend, With this I inclose to you coupons for this year 1789.  Twenty of forty f. Hollands Court each of the 1. of Feb. 1789 and twenty two of 50 f. Hollands Court each of the 1st of June 1789.  I pray you to acknowledge the receipt of them as soon as possible and if you please you may purchase new obligations with them for your friend and keep them for him.  John Adams.

“P.s. With the thousand guilders drawn for me please to purchase another obligation (loan).  JA.

“In another letter I inclosed my coupons for 1790 and in a third letter those for 1791.”  The letter has been professionally repaired and conserved.

Two months later, likely referring in part to Adams’ willingness to serve as a subscriber, Willinks wrote this tribute to him: “We rejoice in the prosperity of your Country, and wish you a long while to enjoy the satisfaction of seing its encrease whch. you always promoted with Zeal and integrity.”