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Rh victory, which he had advised them not to rate too high. He then proceeded to confess to Franklin with the utmost frankness, that peace was absolutely necessary to England; at the same time, he repeated the observation which he had made during his previous visit to Paris, that if the Allies made exorbitant demands, the war would become a struggle for life and death on the part of England, and that even the payments of the interest on the National Debt might be stopped in order to furnish means for the defence of the country. He concluded by saying: "Our enemies may now do what they please with us; they have the ball at their feet, and we hope they will show their moderation and their magnanimity." He then mentioned more than once that the English Ministers, more especially Shelburne, reckoned in no small degree on the good sense of Franklin to extricate their country from the terrible position in which it was placed.

Franklin in reply alluded to the omission of the colonies from Grenville's commission. Oswald told him the deficiency would no doubt be supplied in due time, since in the meanwhile they had been assured that "His Majesty had agreed to grant independence in the first instance." The Doctor said he was glad of it, and supposed that more could not be done until the Act depending in Parliament was passed. Oswald then explained that the words in his paper of instructions, "insertion of commissioners recommended by Mr. Oswald," related to his having advised an express mention in the Bill of the Commissioners appointed by Congress.

Franklin next observed that the estates of the Loyalists had been confiscated by laws of particular states and not by Congress; Congress therefore had no power whatever to interfere in the matter; that if anybody was to compensate them for their losses, it was the business of England and not of America, and that in any case America possessed counter claims against them for