I am much pleased with Otto’s appointment; he is good-humored, affectionate to America, will see things in a friendly light when they admit of it, in a rational one always, and will not pique himself on writing every trifling circumstance of irritation to his court.  I wish you to be acquainted with him, as a friendly intercourse between individuals who do business together, produces a mutual spirit of accommodation useful to both parties.  It is very much our interest to keep up the affection of this country for us, which is considerable.  A court has no affections; but those of the people whom they govern, influence their decisions even in the most arbitrary governments.

The negotiations between the Emperor and Dutch are spun out to an amazing length.  At present there is no apprehension but that they will terminate in peace.  This court seems to press it with ardor, and the Dutch are averse, considering the terms cruel and unjust, as they evidently are.  The present delays, therefore, are imputed to their coldness and to their forms.  In the mean time, the Turk is delaying the demarcation of limits between him and the Emperor, is making the most vigorous preparations for war, and has composed his ministry of warlike characters, deemed personally hostile, to the Emperor.  Thus time seems to be spinning out, both by the Dutch and Turks, and time is wanting for France.  Every year’s delay is a great thing for her.  It is not impossible, therefore, but that she may secretly encourage the delays of the Dutch, and hasten the preparations of the Porte, while she is recovering vigor herself also, in order to be able to present such a combination to the Emperor as may dictate to him to be quiet.  But the designs of these courts are unsearchable.  It is our interest to pray that this country may have no continental war, till our peace with England is perfectly settled.  The. merchants of this country continue as loud and furious as ever against the Arret of August, 1784, permitting our commerce with their islands to a certain degree.  Many of them have actually abandoned their trade.  The ministry are disposed to be firm; but there is a point at which they will give way:  that is, if the clamors should become such as to endanger their places.  It is evident that nothing can be done by us, at this time, if we may hope it hereafter.  I like your removal to New York, and hope Congress will continue there, and never execute the idea of building their Federal town.  Before it could be finished, a change of members in Congress, or the admission of new States, would remove them some where else.  It is evident that when a sufficient number of the western states come in, they will remove it to Georgetown.  In the mean time, it is our interest that it should remain where it is, and give no new pretensions to any other place.  I am also much pleased with the proposition to the States to invest Congress with the regulation of their trade, reserving its revenue to the States.  I