The King of Prussia still lives, and is even said to be better.  Europe is very quiet at present.  The only germ of dissension which shows itself at present, is in the quarter of Turkey.  The Emperor, the Empress, and the Venetians seem all to be picking at the Turks.  It is not probable, however, that either of the two first will do any thing to bring on an open rupture, while the King of Prussia lives.

You will perceive by the letters I enclose to Mr. Jay, that Lambe, under the pretext of ill health, declines returning either to Congress, Mr. Adams, or myself.  This circumstance makes me fear some malversation.  The money appropriated to this object being in Holland, and having been always under the care of Mr. Adams, it was concerted between us that all the drafts should be on him.  I know not, therefore, what sums may have been advanced to Lambe; I hope, however, nothing great.  I am persuaded that an angel sent on this business, and so much limited in his terms, could have done nothing.  But should Congress propose to try the line of negotiation again, I think they will perceive that Lambe is not a proper agent.  I have written to Mr. Adams on the subject of a settlement with Lambe.  There is little prospect of accommodation between the Algerines, and the Portuguese and Neapolitans.  A very valuable capture too, lately made by them on the Empress of Russia, bids fair to draw her on them.  The probability is therefore, that these three nations will be at war with them, and the possibility is that could we furnish a couple of frigates, a convention might be formed with those powers, establishing a perpetual cruise on the coast of Algiers, which would bring them to reason.  Such a convention being left open to all powers willing to come into it, should have for its object a general peace, to be guarantied to each, by the whole.  Were only two or three to begin a confederacy of this kind, I think every power in Europe would soon fall into it, except France, England, and perhaps Spain and Holland.  Of these there is only England who would give any real aid to the Algerines.  Morocco, you perceive, will be at peace with us.  Were the honor and advantage of establishing such a confederacy out of the question, yet the necessity that the United States should have some marine force, and the happiness of this, as the ostensible cause for beginning it, would decide on its propriety.  It will be said, there is no money in the treasury.  There never will be money in the treasury till the confederacy shows its teeth.  The States must see the rod; perhaps it must be felt by some one of them.  I am persuaded, all of them would rejoice to see every one obliged to furnish its contributions.  It is not the difficulty of furnishing them, which beggars the treasury, but the fear that others will not furnish as much.  Every rational citizen must wish to see an effective instrument of coercion, and should fear to see it on any other element than the water.  A naval force can never