The views of the Government were to discard suspicion that any engagements with Spain or intentions hostile to Great Britain existed; to leave the ground in other respects vague and open, so as that in case of a rupture between Great Britain and Spain the United States ought to be in the best situation to turn it to account in reference to the disputes between them and Great Britain on the one hand and Spain on the other.[361]

Beckwith reported to Dorchester that Hamilton had said:
with Spain, have even some points unadjusted with that Court, and are prepared to go into a consideration of the subject.[362]

Scott, a member of the House of Representatives from western Pennsylvania, told Beckwith that the prospect for a rupture made most forcible impressions on all classes in the States. There was a deep interest, he said, in the prospect of England’s possessing New Orleans. The possible dismemberment of South America and the opening of commerce[417] with that continent was of interest, as well as the question of navigation, commerce, and fisheries in the Pacific. He thought that the moment was very favorable for England; and he saw no reason why the United States should not assist her.[363] After news of the declaration and counter declaration, signed at Madrid July 24, reached America, Beckwith reported general dissatisfaction in the United States at the prospect of pacification. Agricultural interests had expected that the war would bring them high prices, and the shipping interests were expecting a share in the English carrying trade and hoped for free commerce with the Spanish West Indies. Friends of England thought that she ought to take the opportunity for ruining the Spanish marine, which they imagined to be an easy matter. British possession of New Orleans was expected and desired, except by the Government which hoped to gain from a neutral position when the settlement should come. At the same time he reported another conversation with Hamilton. The Secretary had said　we rap first that we may be admitted?:

We consider ourselves at perfect liberty to act with respect to Spain in any way most conducive to our interests, even to the going to war with that power, if we shall think it advisable to join you.[364]

These reports were doubtless colored by the desire of the Canadian agent to send as favorable news as possible; but after allowing for the exaggerations and the distortion of facts that would naturally be expected, enough remains to show that the prospect of war was common talk and that it was not altogether undesired. They also point to the well-known fact that England had many friends in the United States and some even in the highest official circles.

While Beckwith was holding these unofficial conferences with American statesmen President Washington and his advisers were considering what measures the Government should take in the event of hostilities breaking out. Between the time of Beckwith’s first interview with Hamilton and that of the more formal conference a fortnight later in Jefferson’s presence the latter had written to Monroe concerning[418] the matter. He said that a war between England and Spain was probable. Symptoms indicated a general design on Louisiana and the Floridas. He spoke of the unpleasant position of the United States if England should obtain them. Both England and Spain, he said, ought to know that this country was in a condition for war.[365] Late in August President Washington wrote concerning the matter to his chief advisers. He thought that if Great Britain and Spain should come to arms New Orleans and the Spanish posts on the Mississippi would be the first objective point of the former. He asked what the answer to Lord Dorchester should be in case he should request permission to march troops from Detroit across the territory of the United States against the Spanish posts, or in case it should be attempted without leave, which was most probable.[366]

On the day after that on which the President’s letter was written Jefferson answered it. He thought that the United States should keep out of the war as long as possible. If Lord Dorchester should make the expected demand, it should either be silently ignored, or, if granted, the same privilege ought to be offered to Spain. If the march should be attempted without permission, the United States should allow it, but protest against it, holding off from actual hostilities as long as possible.[367]

On the same day Chief Justice Jay answered the President’s question. He considered, first, what the United States had a right to do from the standpoint of international law, and, secondly, what was expedient under the circumstances. Under the first head he concluded that, except in cases of absolute necessity, or those in which it could be shown that passage would be entirely innocent, the right of dominion involved the right of excluding foreigners. Under the second head he said that the probability of their being restrained by a refusal ought to be considered. If they would probably proceed anyway, it would be most prudent, he concluded, to consent. However, he added, these remarks retain little force when applied to leading troops from posts in the[419] actual possession of England through territory under English jurisdiction, though both the posts and the territory, of right, belong to the United States. He admitted that it would militate against the interests of the United States to have England occupy the Spanish territories in question. The extent to which the principles of the balance of power were applicable to the case in hand would merit serious inquiry, he remarked, if the United States had only to consider what might be right and just. But since the condition of the country strongly recommended peace, and since it would be more prudent to allow Great Britain to conquer and hold the Floridas than to engage in war to prevent it, such inquiries would be premature.[368]