On March 4, 1778, Deane received a letter from
James Lovell containing the recall order from Congress. Lovell only mentioned giving a report to Congress about European affairs, and Deane fully expected to be sent back to Paris within a few months. France sent Deane back home aboard a warship.
Louis XVI also presented Deane with a portrait framed with diamonds, and both
Vergennes and Franklin wrote letters of commendation. Deane arrived in Philadelphia on July 14, 1778, and was shocked when Congress accused him of financial impropriety on the basis of reports by his fellow commissioner Arthur Lee. Because Deane had left his account books in Paris, he was neither able to properly defend himself nor seek reimbursement for money he had spent procuring supplies in France. (While he waited to address Congress, Deane stayed with
Benedict Arnold, who had just been appointed military governor of Philadelphia.) In a long and bitter dispute over the charges, Deane was defended before Congress by
John Jay. He published a public defense in the December 5, 1778, issue of
Pennsylvania Packet entitled
The Address of Silas Deane to the Free and Virtuous Citizens of America, in which he attacked Arthur Lee, other members of the
Lee family, and their associates. Arthur's brothers
Richard Henry Lee and
Francis Lightfoot Lee both denounced Deane's accusations as libelous and injurious to the American cause. However, in mid-July they cancelled their plan after the king read intercepted letters in which Deane described the military situation of the
Colonies as hopeless and suggested a rapprochement with Britain. Deane's correspondence was then forwarded to General
Henry Clinton, who provided copies to
Loyalist James Rivington to publish in his newspaper ''Rivington's Royal Gazette'' in New York City. Deane was then accused of treason by his fellow colonists. Rivington may have been a spy as a member of the
Culper Ring, and unbeknownst to Deane, his former secretary in Paris,
Edward Bancroft, had been a British spy. ==After the war and death==