Spain wished to pay the 32,000,000 which were due to France as soon as possible, but her coffers were empty, and goodwill does not ensure ability; besides, in addition to the distress of the Government, there was a dreadful famine in Spain.  In this state of things Ouvrard proposed to the Spanish Government to pay the debt due to France, to import a supply of corn, and to advance funds for the relief of the Spanish Treasury.  For this he required two conditions. (1.) The exclusive right of trading with America. (2.) The right of bringing from America on his own account all the specie belonging to the Crown, with the power of making loans guaranteed and payable by the Spanish Treasuries.

About the end of July 1805 the embarrassment which sometime before had begun to be felt in the finances of Europe was alarmingly augmented.  Under these circumstances it was obviously the interest of Ouvrard to procure payment as soon as possible of the 32,000,000 which he had advanced for Spain to the French Treasury.  He therefore redoubled his efforts to bring his negotiation to a favourable issue, and at last succeeded in getting a deed of partnership between himself and Charles iv. which contained the following stipulation:—­“Ouvrard and Company are authorised to introduce into the ports of the New World every kind of merchandise and production necessary for the consumption of those countries, and to export from the Spanish Colonies, during the continuance of the war with England; all the productions and all specie derivable from them.”  This treaty was only to be in force during the war with England, and it was stipulated that the profits arising from the transactions of the Company should be equally divided between Charles iv. and the rest of the Company; that is to say, one-half to the King and the other half to his partners.

The consequences of this extraordinary partnership between a King and a private individual remain to be stated.  On the signing of the deed Ouvrard received drafts from the Treasury of Madrid to the extent of 52,500,000 piastres; making 262,500,000 francs; but the piastres were to be brought from America, while the terms of the treaty required that the urgent wants of the Spanish Government should be immediately supplied, and, above all, the progress of the famine checked.  To accomplish this object fresh advances to an enormous amount were necessary, for M. Ouvrard had to begin by furnishing 2,000,000 of quintals of grain at the rate of 26 francs the quintal.  Besides all this, before he could realise a profit and be reimbursed for the advances he had made to the Treasury of Paris, he had to get the piastres conveyed from America to Europe.  After some difficulty the English Government consented to facilitate the execution of the transaction by furnishing four frigates for the conveyance of the piastres.