A second detachment from New York was making a deep impression on Virginia, where the resistance had been neither so prompt nor so vigorous[68] as the strength of that state and the unanimity of its citizens had given reason to expect.

[Footnote 68:  A slave population must be unfavourable to great and sudden exertions by militia.]

The perplexities and difficulties in which the affairs of America were involved, were estimated by the British government even above their real value.  Intercepted letters of this date from the minister, expressed the most sanguine hopes that the great superiority of force at the disposal of Sir Henry Clinton, would compel Washington with his feeble army to take refuge on the eastern side of the Hudson.

[Sidenote:  Propositions to Spain.]

Even congress relaxed for an instant from its habitual firmness; and, receding from the decisive manner in which that body had insisted on the territorial and maritime rights of the nation, directed the American minister at Madrid to relinquish, if it should be absolutely necessary, the claims of the United States to navigate the Mississippi below the thirty-first degree of north latitude, and to a free port on the banks of that river within the Spanish territory.  It is remarkable that only Massachusetts, Connecticut, and North Carolina, dissented from this resolution; New York was divided.[69] On a subsequent day, the subject was again brought forward, and a proposition was made for still farther concessions to Spain; but this proposition was negatived by all the states.[70]

[Footnote 69:  Secret journals of Congress, v. 2, pp. 393, 396, 407.  This measure was moved by the delegation from Virginia, in consequence of instructions of 2d Jan. 1781.  Sec. 10, H. at large, 538.]

[Footnote 70:  Secret journals of Congress, v. 2, p. 468.]

Happily for the United States, Mr. Jay, their minister at the court of Madrid, required as the price of the concessions he was instructed to make, that the treaty he was labouring to negotiate should be immediately concluded.

[Sidenote:  Recommendations relative to a duty on imported and prize goods.]

The establishment of a revenue subject to the exclusive control and direction of the continental government, was connected inseparably with the restoration of credit.  The efforts therefore to negotiate a foreign loan were accompanied by resolutions requesting the respective states to place a fund under the control of congress, which should be both permanent and productive.  A resolution was passed, recommending to the respective states to vest a power in congress to levy for the use of the United States a duty of five per centum ad valorem on all goods imported into any of them; and also on all prizes condemned in any of the American courts of admiralty.

This fund was to be appropriated to the payment of both the principal and interest of all debts contracted in the prosecution of the war; and was to continue until those debts should be completely discharged.