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+*** START OF THE PROJECT GUTENBERG EBOOK 42413 ***
+
+ THE
+
+ DIPLOMATIC CORRESPONDENCE
+
+ OF THE
+
+ AMERICAN REVOLUTION.
+
+ VOL. XII.
+
+
+
+
+ THE
+
+ DIPLOMATIC CORRESPONDENCE
+
+ OF THE
+
+ AMERICAN REVOLUTION;
+
+ BEING
+
+ THE LETTERS OF BENJAMIN FRANKLIN, SILAS DEANE, JOHN
+ ADAMS, JOHN JAY, ARTHUR LEE, WILLIAM LEE, RALPH
+ IZARD, FRANCIS DANA, WILLIAM CARMICHAEL, HENRY
+ LAURENS, JOHN LAURENS, M. DE LAFAYETTE, M.
+ DUMAS, AND OTHERS, CONCERNING THE FOREIGN
+ RELATIONS OF THE UNITED STATES DURING
+ THE WHOLE REVOLUTION;
+
+ TOGETHER WITH
+
+ THE LETTERS IN REPLY FROM THE SECRET COMMITTEE OF
+ CONGRESS, AND THE SECRETARY OF FOREIGN AFFAIRS.
+
+ ALSO,
+
+ THE ENTIRE CORRESPONDENCE OF THE FRENCH MINISTERS,
+ GERARD AND LUZERNE, WITH CONGRESS.
+
+ Published under the Direction of the President of the United States, from
+ the original Manuscripts in the Department of State, conformably
+ to a Resolution of Congress, of March 27th, 1818.
+
+ EDITED
+
+ BY JARED SPARKS.
+
+ VOL. XII.
+
+ BOSTON:
+ NATHAN HALE AND GRAY & BOWEN;
+ G. & C. & H. CARVILL, NEW YORK; P. THOMPSON, WASHINGTON.
+ 1830.
+
+ Steam Power Press--W. L. Lewis' Print.
+ No. 6, Congress Street, Boston.
+
+
+
+
+ CONTENTS
+
+ OF THE
+
+ TWELFTH VOLUME.
+
+ ROBERT MORRIS'S CORRESPONDENCE,
+
+ CONTINUED.
+
+ To M. de la Luzerne. Office of Finance, November
+ 3d, 1781, 3
+
+ Little probability of being able to raise an
+ adequate revenue.--The people are unaccustomed
+ to taxation.--Large sums must be applied to
+ extinguishing the public debt and calling in
+ the depreciated paper currency.--France must be
+ relied on to assist in this emergency.--Important
+ advantages will result to France herself from
+ this step.
+
+ To the President of Congress. Office of Finance,
+ November 5th, 1781, 8
+
+ Relative to the Acts of Congress for raising
+ supplies.--Objections to certain clauses.--Final
+ apportionment of the expenses between the States.
+
+ To M. de la Luzerne. Office of Finance, November
+ 6th, 1781, 14
+
+ Necessity of pecuniary aid from France.
+
+ To the Count de Rochambeau. Office of Finance,
+ November 15th, 1781, 15
+
+ Repayment of money advanced by the Court.--
+ Congratulationson the success at Yorktown.
+
+ Circular to the Governors of the States. Office of
+ Finance, November 17th, 1781, 16
+
+ Transmitting Acts of Congress for raising supplies.
+
+ George Washington to Robert Morris. Mount Vernon,
+ November 19th, 1781, 17
+
+ Payment of the officers of the army.
+
+ To the Governor of Connecticut. Office of Finance,
+ November 20th, 1781, 18
+
+ Accounts between the State and the United States.--
+ The moneys designed for the general service
+ must be paid into the Continental treasury.
+
+ Report of a Letter to Don Bernardo de Galvez, made
+ to Congress, November 21st, 1781, 20
+
+ Settlement of accounts for sums advanced.
+
+ To M. de la Luzerne. Office of Finance, November
+ 22d, 1781, 22
+
+ Pecuniary aid promised by him.--Rate of
+ exchange.--Statement of former grants of his
+ Court.
+
+ To M. de la Luzerne. Office of Finance, November
+ 26th, 1781, 26
+
+ Answer to the Minister's assertion, that he is not
+ authorised to make further drafts.--Moneys
+ advanced to any particular State are not
+ chargeable to the United States.
+
+ To B. Franklin. Office of Finance, November
+ 27th, 1781, 27
+
+ Requests him to communicate this letter to M. de
+ Lafayette.--Confusion of the public accounts.--
+ Account of his efforts to obtain supplies from
+ the States.--Difficulties attending this attempt.--
+ Causes of the difficulties.--Endeavors to settle
+ past accounts, and to procure funds for the public
+ debt.--Prospect as to future supplies in the United
+ States.--Statement of the supplies already
+ furnished by France.--Account of his correspondence
+ with M. de la Luzerne on the drawing of bills by Mr
+ Morris, and the amount due by the French
+ Court.--Disposition of moneys remaining in Dr
+ Franklin's hands.--Languor of the States in
+ providing for the expenses of the war.--Necessity
+ of further aid from France.
+
+ To the President of Congress. Office of Finance,
+ November 29th, 1781, 57
+
+ Enclosing a letter from Mr Jay, declaring his
+ inability to meet the drafts made on him.
+
+ To Mr Grand. Office of Finance, Dec. 3d, 1781, 58
+
+ Informs him of his intention of employing him as
+ United States banker.
+
+ To M. Joly de Fleury. Philadelphia, December
+ 3d, 1781, 60
+
+ Importance of furnishing pecuniary aid to the
+ United States.
+
+ To B. Franklin. Office of Finance, December 5th, 1781, 61
+
+ Impolicy of the purchases in Holland.--Disposition
+ of the loan, if obtained.--Disposition of the
+ Americans towards the French.--Increasing demand
+ for French goods.
+
+ To the Governor of New York. Office of Finance,
+ December 11th, 1781, 63
+
+ Supplies furnished by the State.
+
+ To the Governors of North Carolina, South Carolina,
+ and Georgia. Office of Finance, December
+ 19th, 1781, 66
+
+ Proposing a plan for the payment of the Southern
+ army.--Necessity of a tax law by the States for
+ effecting this purpose.--Answer to the objections
+ against this measure.--Objections to measures
+ compelling the receipt of the notes payable in
+ taxes, and regulating prices.
+
+ To the Governor of Rhode Island. Office of Finance,
+ December 29th, 1781, 72
+
+ Necessity of continued activity on the part of the
+ States.--Necessity of prompt compliance with the
+ requisitions of Congress.
+
+ Circular to the Governors of the States. Office of
+ Finance, January 3d, 1782, 74
+
+ Negligence of certain States to lay the impost
+ recommended by Congress.--Fatal effects of a
+ derangement of the finances.
+
+ Circular to the Governors of the States. Office of
+ Finance, January 8th, 1782, 76
+
+ Establishment of the Bank of North America.--
+ Advantages of the institution.
+
+ To the Governor of Rhode Island. Office of Finance,
+ January 14th, 1782, 78
+
+ Answer to the representations of the Assembly, of
+ their inability to comply with the requisition of
+ Congress.--Necessity of providing funds.--
+ Insufficiency of specific supplies.--Rhode Island
+ manufactures.
+
+ To the President of Congress. Office of Finance,
+ January 15th, 1782, 81
+
+ State of the currency.--Advantages of a general
+ currency.--Use of metals as a circulating
+ medium.--Silver the best money standard.--Utility
+ of coinage.--The decimal ratio is the most
+ convenient.--Plan of a metallic currency.
+
+ George Washington to Robert Morris. Philadelphia,
+ January 25th, 1782, 95
+
+ Proposes to send officers to the New England
+ States, with representations of their
+ deficiencies of troops.
+
+ To the President of Congress. Office of Finance,
+ February 11th, 1782, 97
+
+ Financial embarrassments.--Refusal of several
+ States to comply with the requisitions of
+ Congress.--No prospect of foreign aid.--Measures
+ taken in the Department of Finance.--Advantages
+ of prompt and vigorous measures in the field.--
+ Necessity of requiring men and money from the
+ States.--Proposes a series of resolutions,
+ calculated to accomplish the desired object.--
+ Superior advantages of Continental forces.
+
+ Circular to the Governors of the States. Office of
+ Finance, February 15th, 1782, 110
+
+ No further foreign aid is to be expected.--
+ Necessity of establishing a public credit by
+ proper funds.--Financial distresses.--Necessity
+ of preparations for a new campaign.--Explanation
+ of the system of raising supplies by contracts.--
+ Statement of his proceedings on this system.--The
+ public service interrupted by local and party
+ dissension.--Exhortations to union, energy, and
+ promptness of action.
+
+ To the President of Congress. Office of Finance,
+ February 18th, 1782, 118
+
+ Proposing the appointment of Commissioners for the
+ settlement of the accounts of the Commissary,
+ Quarter Master, Hospital, and the Marine.--Frauds
+ in these departments.
+
+ Circular to the Governors of the States. Office of
+ Finance, March 9th, 1782, 121
+
+ Settlement of public accounts to 1782.
+
+ To Mr Grand, at Paris. Office of Finance, March
+ 9th, 1782, 122
+
+ Intends to draw bills on him.
+
+ To the President of Congress. Office of Finance,
+ March 9th, 1782, 123
+
+ Mismanagement in the purchase of goods in Holland.--
+ Directs Dr Franklin to sell those of British
+ manufacture, and to dispose of the rest.
+
+ To the Baron D'Arnot. Office of Finance, March
+ 18th, 1782, 124
+
+ Prussia may secure a share of the American commerce
+ by opening her ports.--Cannot agree to purchase
+ supplies of Prussian subjects at St Thomas's.
+
+ To B. Franklin. Office of Finance, March 23d, 1782, 125
+
+ Mode of renewing sets of exchange, on account of
+ certain lost bills.
+
+ To Oliver Phelps. Office of Finance, March 30th, 1782, 126
+
+ Advantages of raising supplies by private
+ contracts.--Declines entering into any engagement
+ favoring Massachusetts in the purchases.
+
+ Circular to the Governors of the States. Office of
+ Finance, April 15th, 1782, 129
+
+ Transmitting Acts of Congress recommending the
+ statement of accounts between the United States
+ and the respective States up to 1782.--Importance
+ of settling the quotas and contingents of the
+ States.
+
+ To Nathaniel Appleton. Office of Finance, April
+ 16th, 1782, 131
+
+ Necessity of establishing a public fund.
+
+ To B. Franklin. Office of Finance, April 17th,
+ 1782, 132
+
+ Giving him notice of drafts to be drawn on Mr
+ Grand.
+
+ To John Jay. Office of Finance, April 23d, 1782, 134
+
+ Enclosing a letter to the Secretary of Foreign
+ Affairs.
+
+ George Washington to Robert Morris. Head Quarters,
+ April 23d, 1782, 134
+
+ Appointment of an Intendent to decide on disputes
+ between the army and the contractors.--Expresses
+ his satisfaction with the system of contracts.
+
+ To Major General Greene. Office of Finance,
+ April 24th, 1782, 135
+
+ Inefficiency of the confederacy.--Financial
+ difficulties.--Abolition of partial payments.--
+ Neglect of the States.
+
+ To the Governor of Virginia. Office of Finance,
+ April 27th, 1782, 138
+
+ Enclosing his correspondence with the French
+ Minister on the assumption by the United States
+ of the debt of the State of Virginia, for supplies
+ advanced by France.
+
+ To the Secretary of Foreign Affairs. Office of Finance,
+ April 27th, 1782, 140
+
+ Desires a statement of the expenses of the Foreign
+ Department.
+
+ To the Governor of Maryland. Office of Finance,
+ April 30th, 1782, 140
+
+ Estimate of expenditure for the current year.--
+ Intends to give publicity to the accounts.
+
+ To John Wendell. Office of Finance, May 1st,
+ 1782, 142
+
+ Explaining the plan, objects, and operations of
+ the National Bank.
+
+ Report to Congress on a Memorial of the Merchants
+ of Philadelphia. Office of Finance, May 4th, 1782, 144
+
+ On the subject of convoys for American ships.
+
+ To the President of Congress. Office of Finance,
+ May 8th, 1782, 145
+
+ The French Minister having given notice that no
+ further advances will be made by his Court, it
+ becomes necessary to provide for the payment of
+ the foreign Ministers.--The Minister desires a
+ settlement of the accounts between France and the
+ United States.
+
+ Circular to the Governors of the States. Office of
+ Finance, May 9th, 1782, 147
+
+ Redemption of the old Continental money.
+
+ To the President of Congress. Office of Finance,
+ May 10th, 1782, 150
+
+ Enclosing a statement of American commerce.
+
+ Circular to the Governors of the States. Office of
+ Finance, May 16th, 1782, 151
+
+ The requisitions of Congress inadequate to meet
+ the expenditure.--Neglect of the States to
+ comply with the requisitions.--Fatal results of
+ this neglect.
+
+ To the President of Congress. Office of Finance,
+ May 17th, 1782, 154
+
+ Fatal neglect of the States to raise supplies.--
+ Requests to be advised as to the expedience of
+ sending the preceding circular.--The receipts of
+ the previous five months equal only to one fourth
+ of the daily expense.
+
+ To B. Franklin. Office of Finance, May 17th, 1782, 156
+
+ Desiring a statement of the moneys at his disposal.
+
+ To Mr Grand. Office of Finance, May 17th, 1782, 157
+
+ Transmitting bills on Dr Franklin.
+
+ To Mr Grand. Office of Finance, May 18th, 1782, 159
+
+ The state of commerce renders it impossible to sell
+ bills on France.--Requests him to make shipments
+ of specie.
+
+ To Messrs Le Couteulx & Co. Office of Finance,
+ May 18th, 1782, 161
+
+ Reasons for employing Mr Grand as United States
+ banker.
+
+ To B. Franklin. Office of Finance, May 23d, 1782, 162
+
+ Claims of Beaumarchais.
+
+ To the President of Congress. Office of Finance,
+ May 23d, 1782, 163
+
+ The pecuniary supplies for 1782 have been
+ anticipated.--Amount and expenditure of the same.
+
+ To the President of Congress. Office of Finance,
+ May 27th, 1782, 165
+
+ Enclosing information from the French Minister
+ of the sums advanced by his Court.
+
+ Information mentioned in the above Letter, 165
+
+ To B. Franklin. Office of Finance, May 29th,
+ 1782, 167
+
+ Claims of Beaumarchais.
+
+ To Daniel Clarke. Office of Finance, May 30th, 1782, 168
+
+ Answer to the charges contained in Mr Clarke's
+ letter.
+
+ To the President of Congress. Office of Finance,
+ May 31st, 1782, 178
+
+ Proposes to bring the accounts of each department
+ under one head.
+
+ To George Olney, of Rhode Island. Office of Finance,
+ June 1st, 1782, 180
+
+ Importance and advantage of laying accurate
+ accounts of the public expenditures before the
+ nation.
+
+ Caron de Beaumarchais to Robert Morris. Paris,
+ June 3d, 1782, 182
+
+ Urging the settlement of his accounts.
+
+ Abstracts mentioned in the preceding Letter, 184
+
+ To George Washington. Office of Finance, June
+ 4th, 1782, 189
+
+ Financial deficiencies render it impossible to
+ pay the army.
+
+ To Edward Carrington, in Virginia. Office of Finance,
+ June 6th, 1782, 190
+
+ Objections in Virginia to receive Mr Morris's
+ notes in taxes.
+
+ To the Secretary of Foreign Affairs. Office of
+ Finance, June 7th, 1782, 191
+
+ There are no funds to pay either the principal
+ or the interest of the public debt.
+
+ To Daniel Jenifer, of Maryland. Office of Finance,
+ June 11th, 1782, 192
+
+ On the objections of Maryland to the
+ apportionment of the expenses.--Other States
+ entertain the same opinion.--Specific supplies
+ more expensive than specie.
+
+ To the Governor of Connecticut. Office of Finance,
+ June 14th, 1782, 194
+
+ Declining to delay the publication of the
+ receipts from Connecticut.
+
+ To James Lovell, of Massachusetts. Office of
+ Finance, June 16th, 1782, 195
+
+ Reasons for publishing the receipts from the
+ States.
+
+ To George Washington. Office of Finance, June
+ 21st, 1782, 196
+
+ Requesting him to take measures for the payment
+ of the debts contracted by American officers,
+ prisoners in New York.
+
+ To the Governor of Rhode Island. Office of Finance,
+ June 26th, 1782, 196
+
+ Objections to the payment of troops by the
+ separate States.
+
+ To George Washington. Office of Finance, June
+ 29th, 1782, 197
+
+ Disputes between the contractors and the officers
+ of the army.--Reason for providing for the civil
+ list before paying the army.
+
+ To B. Franklin. Office of Finance, July 1st,
+ 1782, 199
+
+ Statement of money advanced by France.--Reasons
+ for preferring a loan to a grant.--Cargo of the
+ Lafayette.
+
+ To Alexander Hamilton. Office of Finance, July
+ 2d, 1782, 203
+
+ Announcing his appointment as Receiver for New
+ York.
+
+ To M. Jolie de Fleury. Office of Finance, July
+ 5th, 1782, 205
+
+ Community of the interests of America and France.
+
+ To Mr Grand. Office of Finance, July 5th, 1782, 206
+
+ Accounts between Mr Grand and the United States.
+
+ To the Governor of Maryland. Office of Finance,
+ July 9th, 1782, 206
+
+ Supplies furnished by Maryland.--Importance of the
+ financial department in the conduct of the war.
+
+ To James Lovell, of Massachusetts. Office of Finance,
+ July 10th, 1782, 208
+
+ Importance of a national credit.--The sums drawn
+ on him may be met by sales of the bills.
+
+ To the Governor of Maryland. Office of Finance,
+ July 29th, 1782, 210
+
+ Specie can be raised for taxes by adopting
+ proper measures.
+
+ To the President of Congress. Office of Finance,
+ July 29th, 1782, 211
+
+ Advantages of loans in cases of extraordinary
+ expenditure.--Different kinds of loans.--Relative
+ advantages of domestic and foreign loans.--Necessity
+ of establishing public credit.--This must be done
+ by funding the public debt.--Amount of the debt.--
+ Impolicy of raising money by loans, without
+ previously providing the necessary funds.--Impolicy
+ of attempting to pay the interest of domestic debts
+ by foreign loans.--The revenue granted must be
+ sufficient for the purpose.--Nature of the revenue.--
+ Advantages of a land tax.--Answer to objections
+ against it.--Poll tax.--Excise.--The collection
+ of the tax.--Appropriation of the revenue.--Funded
+ debt.--Sinking fund.--Answer to the objections against
+ speculations in the funds.--Back lands.--Disputes as
+ to the property and disposition of them.--Manner in
+ which they may be rendered productive.
+
+ To the President of Congress. Office of Finance,
+ July 30th, 1782, 238
+
+ Enclosing estimates for the year 1783.--Necessity
+ of establishing a navy.--Mode of raising the
+ estimates.
+
+ To the Governor of Rhode Island. Office of Finance,
+ August 2d, 1782, 242
+
+ The impost recommended by Congress has been
+ laid by all the States except Rhode Island.--Reply
+ to the objections against passing the impost.--The
+ refusal of Rhode Island suspends the whole
+ operation of the impost.
+
+ To Sir Guy Carleton. Office of Finance, August
+ 20th, 1782, 248
+
+ Exchange of prisoners.
+
+ To Alexander Hamilton. Office of Finance, August
+ 28th, 1782, 248
+
+ Regrets his retirement from the office of
+ Receiver.--Weakness of the confederacy.--Mode
+ of collecting the taxes.
+
+ To George Washington. Office of Finance, August
+ 29th, 1782, 252
+
+ Declares himself unable to supply the army.
+
+ To George Washington. Office of Finance, August
+ 30th, 1782, 254
+
+ Object of the preceding letter.
+
+ To the President of Congress. Office of Finance,
+ September 9th, 1782, 255
+
+ Urging the adoption of measures for raising a loan.
+
+ To George Washington. Office of Finance, September
+ 9th, 1782, 256
+
+ Failure of his resources.
+
+ To Messrs Willink & Co., Amsterdam. Office of
+ Finance, September 24th, 1782, 256
+
+ Intends to draw bills on them.
+
+ To Messrs Le Couteulx & Co., Paris. Office of
+ Finance, September 24th, 1782, 257
+
+ Reasons for desiring that the money of the United
+ States in Holland should be sent by the way of the
+ Havana.
+
+ To B. Franklin, John Adams, and John Jay. Office of
+ Finance, September 25th, 1782, 259
+
+ Transmitting Acts of Congress.
+
+ To John Adams. Office of Finance, September
+ 27th, 1782, 260
+
+ Congratulating him on his success in Holland.
+
+ To Messrs Le Couteulx & Co. Office of Finance,
+ September 27th, 1782, 261
+
+ Directs money to be placed in their hands. Terms
+ on which it may be remitted to the Havana.
+
+ To B. Franklin. Office of Finance, September
+ 27th, 1782, 262
+
+ Transmitting instructions to obtain a loan from
+ France.--General disposition of the nation toward
+ the French.--Attempts of the English to effect a
+ reconciliation.--Reliance of Congress on the
+ continuance of aid from France.--Necessity of
+ immediate relief.--Vicious mode of taxation.
+
+ To B. Franklin. Office of Finance, September
+ 27th, 1782, 270
+
+ Disposition of the loan mentioned in the
+ preceding letter.
+
+ To B. Franklin. Office of Finance, September
+ 30th, 1782, 271
+
+ Improvident purchases of American agents in
+ Europe.--The stores belonging to the United
+ States in Europe must be shipped.--Mr Grand's
+ accounts.--Interest on the Dutch loan.--Reports
+ of peace produce inaction on the part of the
+ States.
+
+ To B. Franklin. Office of Finance, October 1st,
+ 1782, 274
+
+ Directing application for a convoy from Havana to
+ an American port, for moneys to be shipped at the
+ former place.
+
+ To M. de la Luzerne. Office of Finance, October
+ 2d, 1782, 275
+
+ Requesting him to make representations to his
+ Court on the necessity of a loan.
+
+ To Alexander Hamilton. Office of Finance, October
+ 5th, 1782, 275
+
+ Circulation of his notes.
+
+ To B. Franklin. Office of Finance, Oct. 7th, 1782, 278
+
+ Shipment of money.
+
+ To George Washington. Office of Finance, October
+ 15th, 1782, 279
+
+ Impossibility of supplying money for the army.
+
+ To the Governor of North Carolina. Office of Finance,
+ October 7th, 1782, 280
+
+ Specific supplies cannot be received in the place
+ of money.--Objection to the imposing of any
+ restrictions on the exportation of certain articles,
+ for the purpose of facilitating the obtaining of
+ those articles by the United States.
+
+ To Major General Greene. Office of Finance,
+ October 17th, 1782, 283
+
+ Supplies for the army.--Disposition of the States
+ to furnish specific supplies.
+
+ George Washington to Robert Morris. Head Quarters,
+ October 18th, 1782, 285
+
+ Expenses incurred in forwarding information to
+ the Marquis de Vaudreuil, at the request of M.
+ de la Luzerne.
+
+ Circular to the Governors of the States. Office of
+ Finance, October 21st, 1782, 286
+
+ Unable to fulfil his engagements with the
+ contractors.--Compelled to enter into new
+ contracts on less favorable terms.--The want
+ of revenue increases all branches of the
+ expenditure.--The war is protracted by the
+ want of resources.
+
+ To the Governor of Rhode Island. Office of Finance,
+ October 24th, 1782, 291
+
+ Negligence of the States to meet the requisitions
+ of Congress.--Loans, or military collections of
+ supplies the only alternative.--Loans cannot be
+ obtained without the establishment of funds.--These
+ may be raised by laying the impost recommended
+ by Congress.--Answer to the objections to that
+ measure.
+
+ To B. Franklin. Office of Finance, October 27th,
+ 1782, 296
+
+ Assumes the debt of Virginia, contracted for
+ supplies from France.
+
+ To the Governor of Cuba. Philadelphia, November
+ 27th, 1782, 297
+
+ Requesting his assistance in negotiating bills
+ at Havana.
+
+ To Thomas Barclay, in Paris. Office of Finance,
+ December 5th, 1782, 298
+
+ Enclosing Acts of Congress appointing him
+ Commissioner to settle the accounts of the
+ United States in Europe.--Method of proceeding
+ to be adopted.--Account of Beaumarchais.--Heads
+ under which the accounts must be stated.
+
+ To the President of Congress. Office of Finance,
+ December 12th, 1782, 306
+
+ Reporting a bill regulating the rates at which
+ foreign coin shall be received at the treasury.
+
+ George Washington to Robert Morris. Head Quarters,
+ December 20th, 1782, 308
+
+ Inscription on the cannon to be presented to the
+ Count de Rochambeau.
+
+ To B. Franklin. Office of Finance, January 11th, 1783, 309
+
+ Has overdrawn on Mr Grand.--Difficulties in raising
+ supplies.--Is obliged to extend his drafts still
+ further.
+
+ To B. Franklin. Office of Finance, January 13th, 1783, 312
+
+ Supplies.--Payment of the salaries of the foreign
+ Ministers.
+
+ To Mr Grand. Office of Finance, January 13th, 1783, 314
+
+ Amount of bills issued on Europe.
+
+ To M. de la Luzerne. Office of Finance, January
+ 13th, 1783, 316
+
+ Explanation of the excess of drafts on Mr Grand
+ over the funds in his hands.--Necessity of further
+ aid for the current year.
+
+ To John Adams. Office of Finance, January 19th, 1783, 322
+
+ Wishes to be informed of the state of the loan in
+ Holland.
+
+ To the President of Pennsylvania. Office of Finance,
+ January 20th, 1783, 323
+
+ Pennsylvania has not complied with the
+ requisitions of Congress.
+
+ To George Washington. Office of Finance, January
+ 21st, 1783, 324
+
+ Suspicions of illicit transmission of money for
+ commercial purposes under pretence of relieving
+ prisoners.--Secret service money.
+
+ To the President of Congress. Office of Finance,
+ January 24th, 1783, 325
+
+ Resigning his office, on the ground that the
+ debts are increased without any provision for
+ the payment of them.
+
+ To the President of Congress. Office of Finance,
+ February 26th, 1783, 327
+
+ Desires permission to make known his resignation.
+
+ To George Washington. Office of Finance, February
+ 27th, 1783, 327
+
+ Informing him of his resignation.
+
+ To William Carmichael, in Madrid. Office of Finance,
+ March 4th, 1783, 329
+
+ Drawing on him to the amount of the bills
+ protested by Mr Jay.
+
+ To the President of Congress. Office of Finance,
+ March 8th, 1783, 330
+
+ On the payment of the public debt.--Justice requires
+ that it should be paid.--Power of Congress in this
+ respect.--The States should be required to pay
+ their quota of the debt, or to comply with a general
+ plan adopted by Congress.--Method of making the
+ apportionment.--The collectors must be appointed
+ by the United States.--The revenue must continue
+ till the extinguishment of the debt.--Objections
+ to the impost.--Land tax.--Plan of terminating
+ all accounts open between the United States
+ and the individual States.
+
+ George Washington to Robert Morris. Head Quarters,
+ March 8th, 1783, 336
+
+ Regretting his resignation.--Apprehensions of the
+ consequences.
+
+ To the President of Congress. Office of Finance,
+ March 10th, 1783, 337
+
+ Enclosing an estimate of the public debt on the
+ 1st of January, 1783.
+
+ To Major General Greene. Office of Finance,
+ March 14th, 1783, 338
+
+ Reasons of his resignation.--Provision for the
+ public debt.
+
+ To the President of Congress. Office of Finance,
+ March 17th, 1783, 339
+
+ No further aid can be expected from Europe.--Loan
+ in Holland.--Probable amount of money on hand.--
+ Expenditure.--Extinction of the public credit.--
+ Defence of himself from the charges brought forward
+ in the newspapers.
+
+ To the Receivers of Continental Taxes in the several
+ States. Office of Finance, April 7th, 1783, 344
+
+ Enclosing an account of the receipts and
+ expenditures during his administration.
+
+ Circular to the Governors of the States. Office of
+ Finance, April 7th, 1783, 345
+
+ Enclosing statements of the receipts and
+ expenditures for 1781 and 1782.
+
+ To a Committee of Congress. Office of Finance,
+ April 14th, 1783, 345
+
+ Settlement of accounts.--Payment of the army.
+
+ To Alexander Hamilton. Office of Finance, April
+ 16th, 1783, 347
+
+ Marine agency.--Necessity of economy in the
+ expenditure.
+
+ To the President of Congress. Office of Finance,
+ April 23d, 1783, 348
+
+ Enclosing specimens of a coin for the proposed
+ mint.
+
+ To the President of Congress. Office of Finance,
+ May 1st, 1783, 349
+
+ Correcting erroneous statements of a committee of
+ Congress appointed to confer with him relative to
+ his continuance in office.--Reasons for his
+ resignation.--Motives for consenting to continue in
+ office.--Conditions of this consent.
+
+ To the President of Congress. Office of Finance,
+ May 3d, 1783, 355
+
+ Consenting to continue in office.
+
+ To M. de la Luzerne. Office of Finance, May
+ 6th, 1783, 355
+
+ Requesting an advance of money in America.
+
+ Circular to the Governors of the States. Office of
+ Finance, May 12th, 1783, 356
+
+ Further supplies from France are not to be
+ expected.--Confusion of the accounts.--Anticipation
+ of the revenue.--Necessity of supplies from the
+ States.
+
+ To Thomas Barclay, Agent for settling the Public
+ Accounts in Europe. Office of Finance, May
+ 12th, 1783, 359
+
+ Confusion in the accounts occasioned by the bills
+ drawn by Congress on the Ministers in France,
+ Spain, and Holland.--Settlement of the accounts.
+
+ To B. Franklin. Office of Finance, May 12th, 1783, 360
+
+ Confusion produced by the bills drawn by
+ Congress.--Amount of the bills.
+
+ To a Committee of Congress. Office of Finance,
+ May 15th, 1783, 362
+
+ Account of the state of the financial
+ department.--Resources foreign and domestic.--
+ Expenses of the army.--Political and military
+ motives for disbanding the army immediately.
+
+ To Major General Greene. Office of Finance,
+ May 16th, 1783, 367
+
+ Calumnies against public officers.
+
+ To B. Franklin. Office of Finance, May 26th, 1783, 369
+
+ The people is never ready to tax itself.
+
+ To B. Franklin. Office of Finance, May 26th, 1783, 370
+
+ Urging a renewal of application for aid.--The
+ taxes shall be devoted, as far as possible, to
+ the repayment of any advances.--Situation of the
+ finances.
+
+ To M. de la Luzerne. Office of Finance, May 27th,
+ 1783, 372
+
+ Requesting his interposition with his Court in
+ favor of the application for further aid.
+
+ To George Washington. Office of Finance, May 29th,
+ 1783, 373
+
+ Misrepresentations of his motives and
+ conduct.--Exertions to procure pay for the army.
+
+ Circular to the Governors of the States. Office of
+ Finance, June 5th, 1783, 375
+
+ The army has been paid in notes.--Incumbent on
+ the States to furnish means of discharging them.
+
+ Circular to the Governors of the States. Office of
+ Finance, July 11th, 1783, 376
+
+ Necessity of supplies from the States to meet
+ the notes issued to the army.
+
+ Report to Congress relative to the Pay of the
+ Army. Office of Finance, July 15th, 1783, 378
+
+ Method of discharging the notes issued by the
+ Superintendent of Finance.--Amount advanced to
+ the army.
+
+ To the President of Congress. Office of Finance,
+ July 18th, 1783, 380
+
+ Recapitulation of the circumstances connected with
+ the payment of the army.--Reason for presenting
+ these facts in the form of a letter.
+
+ To Mr Grand. Office of Finance, July 25th, 1783, 386
+
+ Requesting that his bills may be honored, although
+ exceeding the funds in Mr Grand's hands.
+
+ To the President of Congress. Office of Finance,
+ July 28th, 1783, 387
+
+ Urging a reduction of the public expenditure.--The
+ civil list.
+
+ Circular to the Governors of the States. Office of
+ Finance, July 28th, 1783, 389
+
+ State of the finances.--Reduction of expenses.--
+ Misrepresentations of his motives.
+
+ Report to Congress respecting transferable
+ Certificates. Office of Finance, July 31st, 1783, 393
+
+ Reasons why the debts of the treasury have not
+ been evidenced by transferable certificates.
+
+ To the President of Congress. Office of Finance,
+ August 1st, 1783, 394
+
+ Amount and proportions of the payments by the
+ States.
+
+ To Messrs Willink & Co. Office of Finance, August
+ 6th, 1783, 396
+
+ Amount and nature of drafts on them.--Desires
+ that they may be met at all events.
+
+ George Washington to Robert Morris. Head Quarters,
+ August 6th, 1783, 397
+
+ Advances of money required for transporting cannon
+ and stores to the upper posts.
+
+ To George Washington. Office of Finance, August
+ 12th, 1783, 399
+
+ To the Paymaster General. Office of Finance,
+ August 12th, 1783, 399
+
+ Embarrassed situation of the finances.
+
+ To Elbridge Gerry. Office of Finance, August
+ 26th, 1783, 400
+
+ Different requisitions of Congress.--Objections to
+ the proposition for changing the mode of settling
+ accounts.--Objections to the proposal to relinquish
+ any part of the requisitions.
+
+ George Washington to Robert Morris. Rocky Hill,
+ August 30th, 1783, 406
+
+ The design of occupying the western posts is
+ relinquished.
+
+ To George Washington. Office of Finance, September
+ 2d, 1783, 406
+
+ Expressing his satisfaction at the relinquishment
+ of the design of occupying the western posts.
+
+ Circular to the Commissioners of Accounts. Office
+ of Finance, September 4th, 1783, 407
+
+ Instructing them to make inquiries illustrative
+ of the state of the country in its geographical,
+ moral, political, and commercial relations.
+
+ To John Adams. Office of Finance, September
+ 20th, 1783, 411
+
+ Insufficiency of the confederation.--General
+ satisfaction with the peace.
+
+ To B. Franklin. Office of Finance, September
+ 20th, 1783, 413
+
+ Prejudices against France.--Causes of the return of
+ American commerce to Great Britain.--Fatal influence
+ of the British navigation act on the commerce
+ of England.--The true interest of the European
+ powers is to open the West India ports to
+ American vessels.--Remissness of the people in
+ paying taxes.--Debt due the Farmers-General.
+
+ To Arthur Lee. Office of Finance, Oct. 4th, 1783, 418
+
+ Facts relating to a contract with Mr Deane,
+ concerning shipments on the public account.
+
+ To M. de la Luzerne. Office of Finance, October
+ 15th, 1783, 420
+
+ Case of M. Holker.
+
+ To Messrs Willink & Co. Office of Finance, October
+ 23d, 1783, 420
+
+ Sum requisite above the estimated amount of the
+ taxes.--Present rate of exchange favorable to the
+ United States.--Plan adopted for drawing the sum
+ desired.
+
+ To the Farmers-General of France. Office of Finance,
+ November 4th, 1783, 423
+
+ Plan adopted by Congress for the payment of the
+ sums due the Farmers-General.
+
+ Report to Congress on an Extract from the Journals
+ of the General Assembly of Pennsylvania. 424
+
+ Relative to the mode of proceeding of the
+ commissioner for settling the accounts of the
+ State.
+
+ To John Adams. Office of Finance, November 5th, 1783, 436
+
+ Approves his plan of remittances from the United
+ States.--The interference of the Dutch government
+ in the loan is not desirable.
+
+ To Messrs Willink & Co. Office of Finance, December
+ 31st, 1783, 437
+
+ Giving them notice of his drawing bills on them,
+ and requesting their acceptance at all events.
+
+ To Messrs Willink & Co. Office of Finance, December
+ 31st, 1783, 439
+
+ The apprehensions which impede the loan are
+ groundless.
+
+ To the President of Congress. Office of Finance,
+ January 13th, 1784, 441
+
+ Confused state of the accounts of the secret and
+ commercial committees.
+
+ To Messrs Le Couteulx & Co. Office of Finance,
+ January 13th, 1784, 443
+
+ Requesting them to meet certain bills.
+
+ To the President of Congress. Office of Finance,
+ January 16th, 1784, 444
+
+ Transmitting a demand for supplies advanced to
+ American prisoners.
+
+ To the President of Congress. Office of Finance,
+ January 21st, 1784, 445
+
+ Claims of individuals for damages done by the
+ army.--Plan of an Act relative to this subject.
+
+ To the President of Congress. Office of Finance,
+ January 24th, 1784, 449
+
+ Proposing the appointment of a commissioner for
+ settling the claims of individuals for services
+ rendered, or supplies furnished in Canada.
+
+ To the President of Congress. Office of Finance,
+ February 2d, 1784, 451
+
+ To Messrs Le Couteulx & Co. Office of Finance,
+ February 12th, 1784 452
+
+ Draws bills on them, and remits tobacco.
+
+ To Mr Grand. Office of Finance, February 12th,
+ 1784, 454
+
+ Requests him to meet certain bills if necessary.
+
+ To Messrs Willink & Co. Office of Finance, February
+ 12th, 1784, 455
+
+ Reasons for drawing on them beyond the funds in
+ their hands.--Manner in which the bills may be
+ met.
+
+ To Messrs Willink & Co. Office of Finance, February
+ 12th, 1784, 459
+
+ The resources of America are not sufficiently
+ known.
+
+ To B. Franklin. Office of Finance, February
+ 12th, 1784, 461
+
+ Desires that some measures may be taken to meet
+ his bills.--Intended remittances.
+
+ To B. Franklin. Office of Finance, February
+ 13th, 1784, 463
+
+ Amount of the actual engagements of his
+ Department.--General engagements for the public
+ service.--Bills of exchange unpaid.--Debt to the
+ national bank.--Means of payment.
+
+ To Thomas Jefferson. Office of Finance, February
+ 25th, 1784, 468
+
+ Arrearages of requisitions.--Unfunded
+ expenditures.--Estimate of the Civil List.
+
+ Proposed expenses of the Civil List, 476
+
+ To the President of Congress. Office of Finance,
+ March 17th, 1784, 478
+
+ Failure of the Dutch loan.--Bills protested for
+ non-acceptance.--Amount of funds in Europe, and of
+ bills drawn.--Necessity of prompt supplies.
+
+ To Jacob Read, member of a committee of Congress.
+ Office of Finance, March 30th, 1784, 482
+
+ Advises a demand of the arrearages from the States,
+ previous to making new requisitions.--Objections
+ to the Loan offices.
+
+ To Thomas Jefferson. Office of Finance, April
+ 8th, 1784, 485
+
+ The number of banks unfavorable to the plan of
+ raising loans.--Objections to premiums on loans.
+
+ To the President of Congress. Office of Finance,
+ April 29th, 1784, 486
+
+ Defence of his conduct in regard to the appointment
+ of Receivers of taxes.--Objections to Loan offices.
+
+ To the President of Congress. Office of Finance,
+ May 6th, 1784, 489
+
+ Amount of his engagements.--Requests the adoption
+ of arrangements for administering the Financial
+ Department.
+
+ To the Marquis de Lafayette. Office of Finance,
+ May 19th, 1784, 490
+
+ Requesting his influence in establishing a free
+ port in the Isle of France or Bourbon.--Commercial
+ and political advantages of the measure.
+
+ To the Governor of Rhode Island. Office of Finance,
+ June 21st, 1784, 493
+
+ Urging a compliance with the requisitions of
+ Congress for funding the public debt.
+
+ To M. de Marbois, Chargé d'Affaires from France.
+ Office of Finance, August 17th, 1784, 494
+
+ Arrangements for paying the interest on the French
+ loans.
+
+ To the President of Congress. Office of Finance,
+ September 30th, 1784, 496
+
+ Success of the Dutch loan.--Necessity of making
+ proper provisions for the payment of the public
+ debt.
+
+ To B. Franklin. Office of Finance, September
+ 30th, 1784, 498
+
+ Payment of the salaries of the foreign
+ Ministers.--Attachment of United States property
+ in France.
+
+ To the President of Congress. Office of Finance,
+ September 30th, 1784, 501
+
+ Services of M. de Lafayette.
+
+ Advertisement. Philadelphia, October 11th, 1784, 502
+
+ Announcing his having made arrangements for
+ redeeming his public engagements and his notes in
+ circulation.--Pledges his personal responsibility
+ for the payment.
+
+ To the President of Congress. Office of Finance,
+ November 1st, 1784, 502
+
+ Enclosing his commission as Superintendent of
+ Finance.
+
+
+
+
+ THE
+
+ CORRESPONDENCE
+
+ OF
+
+ ROBERT MORRIS,
+
+ SUPERINTENDENT OF FINANCE.
+
+
+VOL. XII
+
+
+
+
+ THE
+ CORRESPONDENCE
+ OF
+ ROBERT MORRIS.
+
+ CORRESPONDENCE CONTINUED.
+
+
+ TO M. DE LA LUZERNE.
+
+ Office of Finance, November 3d, 1781.
+
+ Sir,
+
+ Agreeably to my promise, I have the honor to send you a copy of
+ the circular letter, which I lately transmitted to the several
+ States. This will be an additional proof of my desire to draw
+ from among ourselves the necessary resources, and thereby to
+ become truly independent. But the sincerity with which I have
+ always spoken to you, and which I mean to preserve, and which the
+ generous conduct of your Sovereign demands for his servants, that
+ sincerity will not permit me to conceal my sentiments on what is
+ to be expected.
+
+ The annual expenses of this country may certainly be reduced
+ within narrower bounds, than they have hitherto been; perhaps it
+ will be less than I myself have now an idea of. But still it must
+ be considerable, if we mean, which we certainly do, to make
+ becoming efforts in the common cause. Besides this, it will
+ require a considerable revenue to provide the sinking fund for
+ our public debt. As I consider national credit to be an object of
+ the greatest magnitude and importance, so I think it necessary to
+ bend every possible effort to the establishment and support of
+ it. Provision for our debts is, therefore, the first object, and
+ therefore must take place of every other demand.
+
+ Whatever may be the wealth of the inhabitants of America, and
+ however capable they may be of bearing heavy taxes, this at least
+ is certain, that they have neither been accustomed to them, nor
+ have the Legislatures hitherto adopted the proper modes of laying
+ and levying them with convenience to the people. Taxation
+ requires time in all governments, and is to be perfected only by
+ long experience in any country. America, divided as it is into a
+ variety of free States, possessing sovereign power for all
+ domestic purposes, cannot therefore be suddenly brought to pay
+ all which might be spared from the wealth of her citizens. The
+ amount even of that wealth is very disputable. Our extensive
+ forests, though they are valuable as property, are by no means
+ productive to the revenue; and many of our people have endured
+ such losses, that they require alleviation, instead of being able
+ to bear burdens. Besides this, the use of many articles, not
+ strictly necessary, are become so even by that use, and
+ therefore, the mode of living being habitually more expensive
+ than in other countries, requires greater wealth, A good Prince
+ would not suddenly render the lot of his subjects worse. How then
+ are we to expect that the people themselves will do so?
+
+ But supposing our taxes could equal the demand for revenue,
+ another circumstance remains. The paper money, which has been
+ emitted lays in our way to reformation, and we feel it at every
+ step. It has been issued, and the people will with propriety
+ refuse to pay taxes, if it be totally refused. Much, therefore,
+ of the revenue must be in paper, while that paper exists. If it
+ be re-issued after it has been raised in taxes, the mischief
+ attendant on a depreciating medium will still continue. A large
+ nominal revenue may indeed be collected, but that revenue will be
+ nominal. The specie in the country also will be continually
+ secluded from circulation, and by that means, not only the
+ sources of revenue will be dried up, but even the bills of
+ exchange, which may be drawn on Europe, will not find a proper
+ market at their value.
+
+ I might add a number of reasons to show the necessity of
+ destroying this paper money; but your residence here has enabled
+ you to see this subject to the bottom, and I have found in
+ conversation your ideas so clear, that I will not attempt to
+ demonstrate what you cannot but perceive at a single glance. But
+ how is it to be done? If a recurrence be again had to the
+ detestable expedient of force, our credit is ruined. Prudence,
+ therefore, forbids any such attempt; besides, it is so dishonest,
+ that I will never have any concern in it. There is then no other
+ means, but to receive the taxes in paper, and to destroy a part,
+ at least, if not the whole.
+
+ This method of proceeding will lay a proper foundation for
+ establishing public credit, and when that is established, we well
+ know what good consequences may be drawn. But, in the interim, it
+ is evident that the revenue, even if otherwise equal to our
+ wants, must be deficient. I, therefore, am bound to declare to
+ you my conviction, that we must have aid from abroad. It is
+ unnecessary to add the place from which that aid is to be
+ expected.
+
+ It is very painful to ask assistance in any case, especially in a
+ situation like ours, where the object of the war is to secure
+ what is of the utmost importance to us. But having candidly
+ explained our situation, and shown the impracticability of doing
+ all which I wish, there is a greater propriety in stating to a
+ gentleman, who knows those wishes, the ideas which arise from the
+ nature of that connexion which subsists between the two nations.
+
+ The war in America must of necessity prove fatal to Great
+ Britain, if it continues; because it is carried on by her at an
+ expense so disproportionate, to that which is borne by France,
+ that the greater effort must exhaust every fund she can possibly
+ draw forth, and inextricably involve her in eternal debt. If then
+ the object of the war were in itself indifferent to France, the
+ mere continuance of it would alone be a valuable object to her,
+ and indeed, to every other power, particularly to those who are
+ in any degree maritime, as they are most exposed to British
+ encroachment and rapacity. But when we consider that the object
+ of the war is of the last consequence to the commerce of his
+ Majesty's dominions, and especially so to his marine; and when we
+ further consider, that his honor stands pledged for our support,
+ to doubt of his further assistance would imply a reflection both
+ on his wisdom and integrity. I hope, Sir, you will believe me to
+ be incapable of casting such reflections.
+
+ Let me further take the liberty to observe, that I would by no
+ means detract from the generosity of his Most Christian Majesty,
+ yet the moneys, which he may be disposed to advance to the
+ United States, are neither lost nor thrown away. The subjects of
+ France will for ages derive benefits from a commercial connexion
+ with this country, and I hope their Sovereign will always find
+ here a warm friend and a faithful ally, should any of those
+ changes, to which human affairs are subjected, induce him to ask
+ that aid, which he now bestows.
+
+ With great respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.[1]
+
+ [1] _November 3d._ This day, on the invitation of the Minister of
+ France, I attended at the Romish Church at a _Te Deum_, sung on
+ account of the capture of Lord Cornwallis and his army. Soon after
+ arrived the colors taken by General Washington with that array,
+ which were brought by Colonel Humphreys to Chester, there met by
+ Colonel Tilghman, and thence conducted hither by those two
+ Aid-de-Camps of the General. The city troop of light horse went
+ out to meet them, and became the standard bearers, and twentyfour
+ gentlemen, privates in that corps, carried each of them one of the
+ colors displayed. The American and French flags preceding the
+ captured trophies, which were conducted down Market street to the
+ Coffee House, thence down Front to Chestnut street, and up that
+ street to the State House, where they were presented to Congress,
+ who were sitting; and many of the members tell me, that instead of
+ viewing this transaction as a mere matter of joyful ceremony,
+ which they expected to do, they instantly felt themselves
+ impressed with ideas of the most solemn nature. It brought to
+ their minds the distresses our country has been exposed to, the
+ calamities we have repeatedly suffered, the perilous situation,
+ which our affairs have almost always been in; and they could not
+ but recollect the threats of Lord North, that he would bring
+ America to his feet on unconditional terms of submission. _Diary._
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, November 5th, 1781.
+
+ Sir,
+
+Copies of the Act of the United States in Congress assembled, of the
+2d instant, have been sent to me, and were yesterday received. It
+would have given me pleasure to have had an opportunity of expressing
+my sentiments before those acts were passed; but it becomes necessary
+to take the liberty of doing it now. I, therefore, do myself the honor
+to enclose a letter written on the 28th day of August last, which was
+not transmitted before, because Congress were so much engaged, that,
+as well from that as from other circumstances, those matters, which it
+relates to, could not properly be brought before them. In the
+beginning of that letter, the reference made to me on the 23d of
+August, of two letters from the State of Massachusetts, and of a
+report upon them, is mentioned. On the 12th of September following, I
+received the resolutions of that State, which were referred on the
+10th; and I have now to observe, that my sentiments on the subject of
+those resolutions are fully contained in the letter.
+
+I should have sent in that letter, notwithstanding my reasons to the
+contrary, if I had conceived that any of the subjects it relates to
+had been in agitation before the United States. And, although Congress
+have not taken up all the matters mentioned in it, there is some
+propriety in sending it as it was written, because such objects are
+better understood when viewed in their connexion with each other, than
+when separately considered.
+
+I shall say nothing as to the amount of the sum required, because I
+have not seen the estimates. Congress have certainly considered the
+supplies necessary, and the abilities of their constituents.
+Immediately after the apportionments, I find the following clause,
+"that the said sums, when paid, shall be credited to the accounts of
+the several States on interest, to be hereafter adjusted." I hope that
+I shall be pardoned for observing, that I cannot see the necessity of
+this provision, and that ill consequences will probably result from
+it. As to the necessity, I will suppose that the proportion of any
+State were rated so high as greatly to exceed its means of payment, or
+materially to distress the people, surely Congress might afford
+redress in the next apportionment by relaxing the demands on such
+State and dividing the deficiency among others. Nor is it of any
+consequence whether the disproportion arises from error in laying the
+quotas, or from a subsequent change of circumstances. It is for this
+reason that the clause appears unnecessary. The idea of leaving the
+adjustment of accounts to a future day will discourage the efforts of
+every State in the Union. They will consider it as determining, in
+other words, that the accounts shall never be settled at all, or
+rather, they have already formed that opinion. This has produced
+discontent, and given rise to complaint. The disputes which must
+follow cannot but be pernicious. Nor are these the only ill
+consequences of that provision. I hope that Congress will pardon me,
+when I state the sentiments, which may arise in the minds of others,
+although they have no place in my own. Postponing a final adjustment
+may cast an air of doubt, or even timidity, on the proceedings of the
+United States. It may be construed into an appearance of leading
+individual States unwarily into efforts beyond their proportion, or
+their strength. It may be imagined that there is some want of that
+firmness and decision, which ought to be the constant companions of
+sovereign authority. It gives me pain to hazard a difference in
+opinion with Congress, and, therefore, I quit the subject.
+
+The next article in the Act of the second instant declares, "that
+certificates, which may be given by the Quarter Master General, or
+other officers properly authorised to give them for supplies, that
+shall hereafter be furnished, shall be accepted in payment." This
+provision may, in some instances be necessary, in some improper, but
+in all it must be dangerous. I shall not dwell on the consequences of
+giving these certificates; but I will suggest one idea, which will,
+perhaps, merit attention. That article is an act of sovereign
+authority, and therefore while it exists doubts may arise how far the
+issuing of such certificates can be restrained. If the Quarter Master
+and others will give certificates, and the States will receive them
+and tender them to me, I must, according to this act, accept them in
+payment; but those who contract for supplies to the public, certainly
+will not take them from me. If, on the other hand, that article be not
+inserted, the general authorities given to me by Congress are equal to
+all the necessary regulations in executing their commands. I might,
+for instance, appoint a trusty person to give certificates in
+extraordinary cases. I should then know the amount of such
+certificates, and I could make the necessary arrangements with
+relation to them.
+
+My sentiments on the next article are so fully expressed in the
+enclosed letter, that I will not trouble Congress with the repetition.
+I shall only observe, that daily observation and information confirm
+my fears, that frauds have been practised in giving those
+certificates, and I must be of opinion, that a general permission to
+receive them in taxes will be very injurious, not only to the public
+revenue, but to the reputation of our measures. I am apprehensive that
+many honest men through the United States, who know the frauds
+committed in their neighborhoods, will imagine that sufficient
+attention is not paid to the detection of villany, and that idea will
+disincline them very much from the payment of taxes, because nothing
+induces men to part with their money so cheerfully, as the belief that
+it will be applied to the purposes for which it was granted, with
+economy and integrity.
+
+What I have written on the subject of a final apportionment may appear
+to have proceeded from a want of attention to that article of the
+confederation, which points out the manner of defraying public
+expenses. But this is not the case. The article in question relates
+merely to those circumstances, which shall arise after the completion
+of it, and makes no provision whatever for past expenses. The several
+requisitions of Congress do indeed refer to a future settlement,
+according to the mode expressed in the confederation; but the
+confederation itself must receive a liberal and equitable
+construction; much more so those resolutions which refer to it. If
+this be not the case, it would be madness to expect obedience from
+free agents independent of each other, which is the situation of the
+several States. If, then, the article be considered and weighed, even
+as to the quota of the current year, where certainly it applies with
+greater force, than to any past transaction, we shall find that it
+presupposes the following things; first, a certain mode of determining
+the value of lands, &c., or, in other words, the value of each
+respective State; secondly, that this mode should not be permanent but
+variable, and framed from time to time, according to the then existing
+state of things; thirdly, that it should be founded in liberal
+principles of justice; no other mode being presumable from those who
+are to adopt it; fourthly, that the value being thus equitably
+determined, the expenses of the current year should be estimated
+according to the best lights, which could be obtained; and fifthly,
+that this expense should be apportioned according to that valuation.
+
+If these ideas be just, and I think that an inspection of the article
+itself will show them to be so, then it will follow, that a valuation
+made for one year cannot properly apply to any preceding or subsequent
+year; more especially, if any considerable change take place in the
+respective circumstances of the several States. Let us, for instance,
+suppose, that in the year 1776, five hundred acres of land in the
+State A were worth one thousand pounds; that in the year 1777, they
+were worth five hundred pounds; and in the year 1778, one hundred
+pounds; while, during the whole period, five hundred acres in the
+State B were worth five hundred pounds. Let us suppose the States A
+and B to have been of the same extent, and that thirty pounds were to
+have been paid annually by those States according to the
+apportionment of the confederation, they would then have been charged
+as follows; in 1776, the State A twenty pounds, and B ten pounds; in
+1777, A fifteen pounds, and B fifteen pounds; and in 1778 A five
+pounds, and B twentyfive pounds. Thus, then, of three times thirty or
+ninety pounds, A would be chargeable with twenty, fifteen, and five
+amounting in the whole to forty pounds; and B with ten, fifteen, and
+twentyfive, amounting in the whole to fifty pounds. The proportion,
+therefore, between them is as four to five; but the proportion arising
+from their relative wealth in either of those terms is widely
+different. In the first, it is as two to one. In the second, as one to
+one, and in the third, as one to five. Wherefore, if the whole ninety
+pounds were to have been apportioned on the valuation of the first
+year, it would have been to A sixty, and to B thirty. On that of the
+second A fortyfive, and B fortyfive, and on the third A fifteen, and B
+seventyfive.
+
+If this conclusion be fairly drawn, then a question will arise on this
+point. Suppose no mode of valuation adopted, how are the quotas to be
+ascertained? In answer to this question, I state the following
+positions; first, that the object of the confederation was to make an
+equitable apportionment; secondly, that Congress will always, when
+they direct a valuation, do it in an equitable mode; and thirdly, that
+a valuation is, at present, impracticable, much less a valuation for
+times past. These things admitted, and the necessity of an
+apportionment being also admitted, the question answers itself; for no
+other mode will remain, but by resorting to such lights as Congress
+may have on the subject, and that they determine as equitably as they
+can, according to those lights, which is the very thing I have
+already proposed.
+
+I shall trespass no longer on your Excellency's patience, than to
+mention, that I have detained the copies of those acts, until the
+further order of Congress. But if they disapprove of it, I shall
+immediately transmit them.
+
+I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, November 6th, 1781.
+
+ Sir,
+
+I have been honored with your Excellency's answer of the 4th to my
+letter of the 3d instant. I am sure we cannot differ in opinion. It is
+impossible, that I can doubt the wisdom or integrity of his Most
+Christian Majesty, or that you can doubt his desire of giving further
+assistance to the United States. As to the mode in which that can be
+done, his Majesty's convenience, and the situation of affairs will
+best determine it. I wish to receive pecuniary aid, and when I
+consider the importance, I am led to expect it. You have doubts on
+that subject; but the success which has followed from the grants
+already made, will show so clearly the utility, that you, who see the
+good effects, and who are so zealously attached to the common cause,
+will concur with me in your efforts also. The regard you have
+expressed for the United States, and which, I am sure you feel, gives
+me the highest reason to expect your good offices on all occasions,
+which may relate to their welfare, and particularly those in the line
+of my department, where you are fully sensible assistance is most
+necessary.
+
+ With the most perfect esteem and respect, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE COUNT DE ROCHAMBEAU.
+
+ Office of Finance, November 15th, 1781.
+
+ Sir,
+
+I have the pleasure to observe to your Excellency, that I have
+discharged a bill drawn on me by M. Baulny, in favor of M. Roquebrune,
+for eighty thousand livres, being in part payment of the one hundred
+and forty thousand livres, which you were so kind as to advance, and
+for which I beg leave again to express my grateful sense of
+obligation. The remaining sum of sixtyfour thousand livres, I hold at
+your order, and had determined to remit it; but having accidentally
+mentioned the matter to the Chevalier de la Luzerne, he observed to
+me, that in all probability, you would want money rather in
+Philadelphia than Virginia, because of the necessary expense, which
+would arise in transporting stores from Boston. Upon this principle, I
+deferred sending forward, until I should hear from your Excellency on
+the subject. M. de la Luzerne has also promised me to mention it in
+his letters to you.
+
+Before I conclude this letter, I must trespass one short moment on
+your patience, to express my congratulations on the important and
+splendid success, which has crowned the allied arms before Yorktown.
+My voice, Sir, cannot add to that glory, which the public sentiment
+has most deservedly conferred; but you will permit me to assure you of
+the high gratification it gives my mind, that you are so much the
+object of gratitude, applause and esteem, throughout the United
+States.
+
+With the most perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, November 17th, 1781.
+
+ Sir,
+
+I have the honor to enclose acts of Congress of the 30th of October,
+and 2d instant, which were handed to me on the 4th; but upon a perusal
+of them, it appeared that some things had escaped the attention of
+Congress; wherefore, on the 5th I had the honor of writing to them a
+letter on the subject.
+
+In this letter I took the liberty to state some objections to the
+three clauses in the Act of the 2d, which follow immediately after the
+apportionment. I shall not here repeat those objections. They lay
+before the United States in Congress, and will receive such mature
+consideration, as is becoming the wisdom of that sovereign body. I
+will not however hesitate to declare to your Excellency, that it was
+my wish to have those three clauses repealed.
+
+On the 12th, the United States in Congress assembled passed the act,
+of which a copy is also enclosed, and by which your Excellency will
+perceive, that one of those clauses is repealed. I received this Act
+on the 30th, and I have waited until this day the further order of
+Congress; but there being now but a thin representation, so that
+business cannot be done with the same despatch as when more States are
+present, and these Acts being of great importance, I have thought it
+best immediately to forward them. To press a compliance is I trust
+unnecessary. The respect due to the representation of America will
+speak more loudly and more effectually, than the weak voice of any
+individual servant they may have employed. I shall make but one
+observation. The present requisition is very moderate; the
+compliance, therefore, must be very punctual, for delays are equally
+dangerous and expensive, and if they should happen, the people must be
+burdened with new taxes unnecessarily.
+
+ With great respect, &c.
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Mount Vernon, November 19th, 1781.
+
+ Dear Sir,
+
+I have to inform you, that a very considerable debt has been incurred
+on you as Financier of the United States, by an order for the relief
+of the officers of the army from the goods found in Yorktown; each
+officer, military and staff, having been authorised to take up on
+public account, the sum of twenty pounds Virginia currency; for which
+Mr Ross, commercial agent of this State, is answerable to the
+merchants, payable in tobacco; Mr Ross receiving the amount in bills
+upon you to be paid in six months from the time of the goods being
+taken. The returns not being handed in, I am unable to give you the
+amount with any precision; your own calculations will afford you the
+sum with a degree of certainty.
+
+A quantity of goods found on board a cartel in York river, and which
+have been judged to be forfeit, were part suitable for the army, and
+part for the country; the latter, which will amount to a considerable
+sum, are to be sold at public vendue, and accounted for.
+
+Knowing the state of your finances, I have studied to keep this debt
+within its most moderate bounds, but in spite of all my endeavors, I
+fear you will find it but too large. I hoped to have given you some
+assistance from the military chest found with the enemy, but
+unavoidable contingencies of the army, and furnishing the Quarter
+Master General for the southern army, have swallowed up near one half
+of its contents. A number of iron cannon, being unnecessary for our
+use, I have appropriated as a fund for the discharge of the debt
+incurred, and they are sent to the head of the Elk; this with the
+other funds may possibly amount to a full discharge of the debt.
+
+ I am, &c.
+
+ GEORGE WASHINGTON.
+
+_P. S._ Since writing the above, I am informed by General Lincoln, who
+is come up since I left Yorktown, that the whole amount of the goods
+taken by the officers and on public account, will arise to about
+thirteen thousand pounds sterling, and that the articles sold in
+Yorktown, at public vendue, will be near six thousand pounds.
+
+ G. W.
+
+ * * * * *
+
+TO THE GOVERNOR OF CONNECTICUT.
+
+ Office of Finance, November 20th, 1781.
+
+ Sir,
+
+I have been honored with your Excellency's letter of the 7th instant,
+and am much obliged by the attention you have been pleased to pay to
+the several applications from me, which are noticed in it.
+
+I shall be very happy to receive the several accounts you have
+promised, because the final settlement of all accounts appears to me
+of the utmost importance, and I hope such measures will be taken, as
+founded in justice and propriety will meet your wishes, and be
+agreeable to the State, over which you so worthily preside. I hope
+that in future, there will be no accounts between the States and the
+United States, except cash accounts, one side of which will consist of
+the requisitions, and the other with the payment of them. The old
+Continental, which is brought in, will, I hope, be forwarded hither,
+with its proportionate part of the new, and indeed of the whole, both
+new and old, as soon as possible. Both shall be carried to the credit
+of the State.
+
+As to what you mention of the tax in specie, I have to observe, that
+whatever may have been the practice heretofore, I hope that the moneys
+designed for the general service will be paid into the Continental
+Treasury, and that the army will be paid from thence. This I conceive
+to be the only mode, by which heart-burnings, murmurs, and complaints
+can be avoided, and, at the same time, it is the only mode, by which
+the moneys obtained from the people can be applied with effect and
+economy.
+
+To feed, clothe, and pay the army, form a part of the objects of my
+administration. Clothing I have received. Rations I have contracted
+for in some degree, and I shall extend those contracts. Pay will also
+be advanced, when the treasury will admit of it. I am, therefore, to
+request that the hard money collected, and collecting in your State
+may be held subject to my drafts. I expect that the States will all
+levy taxes sufficient for those things I have just mentioned, and for
+the other necessary expenses. The money which is submitted to my
+disposal shall be faithfully applied.
+
+That the requisitions from Congress have been later than was to have
+been wished, is indeed to be lamented. That body have so many objects,
+which call on their attention, that they cannot always do what they
+would wish. Besides this, the uncertain situation of our money has
+hitherto greatly increased the difficulties, which Congress have
+labored under, and you will permit me to observe, Sir, that those
+difficulties are not a little to be attributed to the inattention of
+the several States. But your Excellency will, I am sure, agree with
+me, that our situation requires joint vigorous exertions, and not
+unavailing complaints and recriminations.
+
+ With the greatest respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+REPORT OF A LETTER TO DON BERNARDO DE GALVEZ, MADE TO CONGRESS,
+NOVEMBER 21ST, 1781.
+
+The Superintendent of Finance, in pursuance of the order of the 7th
+instant, prays leave to submit the following draft of a letter to
+General Galvez.
+
+ Sir,
+
+Your letter, dated at New Orleans the 22d of July, 1780, has been
+received, and was laid before the United States of America in Congress
+assembled on the 29th of September following. The committee to whom
+that letter was referred, did not make any remittances in consequence
+of it, nor write you an answer, because the dangers attending a
+communication with you at that time were too great, occasioned by the
+many ships of war, with which the enemy then infested our coast.
+
+I am now, Sir, directed by the United States to express to you the
+grateful sense they entertain of your early efforts in their favor.
+Those generous efforts gave them so favorable an impression of your
+character, and that of your nation, that they have not ceased to
+respect you, and to wish for an intimate connexion with your country.
+Conceiving it to be for the mutual interest of Spain and North
+America, they have an earnest wish, that as the cause is one, and the
+enemy one, so the operations against him may be continued in such
+manner, as to answer the great purposes, which all have in view. The
+late successes, which have crowned the combined arms of France and
+America in Virginia, while they demonstrate the benefits which flow
+from a union of efforts, will at the same time, lead to wholesome
+reflections on the manner in which that union has been cemented. The
+French and American soldier marching under the same banners, enduring
+the same fatigues, bearing the same dangers, and bleeding in the same
+field together, express in the language of their different nations the
+common sentiment of fraternal affection. Let me congratulate you very
+much on this success, and still more on the sentiment, by which, under
+Providence, it has been secured.
+
+With respect to the advance made by your Excellency, I have the honor
+to enclose copies of two resolutions of Congress, one of the 6th of
+February last, and the other of the 7th instant, by which you will
+perceive, that the public accounts with Mr Pollock are settled, and a
+considerable balance carried to his credit. In these accounts is
+included a part of your advance, and the remainder of it is contained
+in Mr Pollock's account with the Commonwealth of Virginia. This
+latter account has been referred to the consideration of that
+Commonwealth, and I trust the debt to Mr Pollock will be acknowledged
+by them. That which is due from the United States to Mr Pollock is now
+on interest at six per cent, and if you wish that the sums which he
+has appropriated to the service of the United States out of those
+advanced by your Excellency should be credited to you, on transmitting
+an assignment thereof from Mr Pollock, it shall immediately be done,
+and payment will be made both of the principal and interest, as soon
+as the situation of our finances will admit of it, which, from the
+present prospect of things, may happen in a shorter space of time,
+than the public creditors have been generally led to expect.
+
+With perfect respect and esteem, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, November 22d, 1781.
+
+ Sir,
+
+In conversation with your Excellency last evening, you requested me to
+write to you on the subject of it, that you might be fully possessed
+of my sentiments. I have now, therefore, the honor to remind you, that
+some time in the month of May last you promised me that I should draw
+for half a million of livres, and shortly after, for a million more.
+You afterwards extended this sum to two millions and a half, and on
+the 25th of September last, I wrote to you on the subject, having then
+seen the report of the committee appointed to confer with you, by
+which it appeared, that your engagement with me to draw for the sums
+first mentioned formed one object of that conference, but that the
+engagement for one million more was omitted.
+
+I have extended my engagements according to the extent of the means,
+which I was induced to suppose in my power, and therefore, estimating
+the money and supplies the States would probably furnish, and relying
+on the money which had arrived, that which I was authorised to draw
+for, and that which the engagements of your Court had led me to
+expect, my views were directed to all those resources. I shall not
+dwell on the consequences of my efforts. Enough of them are known to
+speak for themselves, and I leave to your knowledge and observation
+the comparison of our public affairs now, with what they were exactly
+six months ago. I will only say, that if those foundations, on which I
+built, are removed, my past labors will have been thrown away, and my
+future utility absolutely destroyed.
+
+You can well remember, Sir, what I have often told you of the course
+of exchange. I have raised it gradually since I first commenced my
+operations, and although it would now have been higher than it is, if
+the quantity of bills thrown on the market last summer had been
+withheld; yet even now, at fifteen pence this money for a livre, it is
+but ten per cent below par; and as I expect shortly to raise it to
+sixteen pence, it will then be at a discount of only four per cent. To
+sustain these operations, if for no other purpose, it is necessary
+that I continue to draw bills, for certainly a remittance cannot be
+made so cheaply from Europe. But, indeed my present demands, arising
+on past engagements, are very great and urgent, so that if I do not
+continue to draw, the chest will presently be empty, which will be
+known as soon as it happens, and then I am again at the mercy of the
+world. I will dwell no longer upon this subject, but take some notice
+of another matter, which stands in intimate connexion with it.
+
+You will remember, that you have often mentioned to me a mistake in
+the account, of which you delivered a copy to Congress. As I made no
+doubt, that it would be properly and satisfactorily explained, I have
+hitherto restrained myself from going at all into the subject. But it
+now becomes my duty to write to Dr Franklin upon it; and, therefore, I
+wish to communicate to you my sentiments, while I request you to use
+your good offices with the Court for having the matter placed on its
+proper footing.
+
+The note from the Count de Vergennes, of the 16th of May last, shows
+very clearly a grant of the three following sums; four millions to Dr
+Franklin to discharge the bills of exchange drawn on him by Congress;
+six millions as a gift towards the operations of the campaign; and ten
+millions in advance of the loan to be opened in Holland, amounting in
+the whole to twenty millions. The first sum of four millions, appears
+evidently to have been for payment of the bills drawn to discharge the
+interest of loan office certificates, according to the original
+engagement, which the Court entered into with the American
+Commissioners. Of the money granted by the Court, there has been
+advanced, as appears by the account you delivered to the committee, in
+warlike stores and money, to Colonel Laurens, four millions seven
+hundred and eightynine thousand one hundred and nine livres; and to
+purchase the remainder of the articles demanded by him, three hundred
+and ninetyseven thousand livres. For the bills of exchange drawn by
+Congress on their Minister, I will suppose the sum mentioned in the
+Count de Vergennes' note, viz. four millions, and I will add for my
+drafts one million and a half, being what, as I have already observed,
+you first promised. Thus the whole amount of these sums is ten
+millions six hundred and eightysix thousand one hundred and nine
+livres, and the balance, which I conceive to be subject to my
+disposition, is nine millions three hundred and thirteen thousand
+eight hundred and ninetyone livres. As to replacing the cargo of the
+Fayette, which is mentioned in your account, I do not take notice of
+it, because I wish that it may not have happened, and because if it
+has been made, it will be time enough to deduct it when the articles
+shall have been actually delivered. The loss of that ship, and the
+detention of one of the transports laden by Colonel Laurens, have
+already compelled me to make heavy expenditures. Among these I will
+mention the purchase of lead some time ago, and a late purchase of
+clothing to a very large amount, a part of which I am now paying for,
+and the remainder is to be paid in three, six, and nine months from
+the date of my engagements.
+
+I have the honor to enclose what I conceive to be the clear state of
+the account between us and your Court. This will be transmitted to Dr
+Franklin, and I hope it will meet with your approbation and support.
+As I have nearly drawn for twelve hundred thousand livres, I must
+request your compliance with your original engagement, that I may
+extend my drafts so as to include the remaining three hundred
+thousand, necessary to complete the one million and a half, mentioned
+in the enclosed account.
+
+I shall be glad to be informed, Sir, whether any more money has been
+shipped on account of the United States. I shall immediately take
+measures to draw on account of the balance already mentioned, as our
+necessities require it; and if in the mean time, so much shall have
+been shipped, as that my bills exceed the balance due, I shall expect
+that they will be punctually paid, and I will readily repay that
+excess out of the moneys so shipped, to the use of your army here.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, November 26th, 1781.
+
+ Sir,
+
+The letter, which you did me the honor to write on the 24th instant,
+was delivered yesterday morning, and I take this early opportunity to
+acknowledge it. As you have assured me, that you cannot know any
+account, which is not conformable to the instructions his Majesty's
+Minister has addressed to you, I shall spare your Excellency the
+trouble of my remarks. But as you say, that your letter of the 26th of
+September last could not have left me the shadow of a hope on the
+subject of further drafts, your Excellency will pardon one
+observation. Those precise orders from your Court, received by Colonel
+Laurens, which compel you now to prohibit my further drafts, permitted
+you then, in consequence of the observations I had the honor of making
+to you, an extent of nearly three hundred thousand livres. It is my
+duty to trespass one moment longer on your Excellency's patience,
+while I take the liberty to observe, that I can by no means consider
+purchases made for any particular State in the Union as properly
+chargeable to the United States.
+
+With the most perfect esteem and respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, November 27th, 1781.
+
+ Sir,
+
+The Marquis de Lafayette who is about to sail for France, will have
+the honor to deliver this letter, and, consistently with the acts of
+Congress of the 23d instant, I must request you to communicate it to
+him, and, from time to time, to take his aid in the prosecution of the
+business, which I must recommend to your particular attention. The
+affairs of my department are of a nature not to require concealment;
+but, even if that were not the case, I have such perfect confidence,
+as well in the prudence of the Marquis, as in his attachment to this
+country, that the acts of Congress out of the question, I should feel
+a pleasure in making him acquainted with my views and wishes. Indeed,
+I expect that his zeal and activity will go far in smoothing the way
+towards the accomplishment of those objects, which your Excellency may
+have to solicit.
+
+In order that you may be perfectly acquainted with the situation of
+our affairs, I shall previous to my observations on the supplies to be
+asked for the next campaign, take some notice of the efforts I have
+made, and am daily reiterating, to obtain supplies from the several
+States, upon the various requisitions, which Congress have already
+made, and to operate a settlement of past accounts, and to procure
+proper funds for the public debts. I shall also make some remarks as
+to the prospect of future supplies in this country, and on those which
+have already been granted by the Court of France.
+
+The papers enclosed relate chiefly to the former requisitions of
+Congress. You will observe, Sir, that by an act of the 28th of June
+last, I was directed to press a compliance with those requisitions,
+and it is in consequence thereof, that my circular letter of the 6th
+of July was written. The demands of Congress were twofold; some for
+specific supplies of the produce of the several States, the others for
+money. It may be proper here to observe, that the manner of doing
+public business had been such, that it was not merely difficult, but
+absolutely impracticable to state any accounts in the clear
+satisfactory manner, which ought always to be wished, even in private
+life, but which in public life is of the last importance. I do not
+mention this to cast any reflection or aspersion; for the evil
+resulted more from the want of arrangement, than the faults of any
+particular men. But it is right to take notice of the circumstance,
+because, in the course of what I am about to write, the want of such
+accounts cannot but appear. I shall say nothing as to the ill effects
+of demanding generally a contribution of specified articles; my
+opinions on that subject will appear from the enclosed papers, and
+experience has taught, that such contributions are no longer to be
+relied on. At the same time, I declare now, that in some degree it
+must still take place, for reasons, which will be mentioned at the
+proper time.
+
+As the letter last mentioned contains no statement of the accounts, I
+wrote on the 16th of July another, containing the cash account of each
+State, as extracted from the treasury books; a statement, however,
+which I knew to be imperfect, for causes not necessary to be repeated.
+On the 25th of July, I wrote another circular letter, and in which was
+enclosed a statement of the several demands for specific supplies.
+These were considerable, and I am of opinion, that a very great part
+of them still remains to be delivered at this day; but there have yet
+come to my hands no accounts by which to determine the balances. What
+is said, as to the settlement of accounts in this letter, will be
+honored with your notice presently. You will now observe, that I
+therein request information as to the revenue laws, which have been
+passed, the mode of collecting taxes, the moneys in their treasuries,
+the various appropriations of it, and the different paper currencies
+in the several States. To your Excellency, it is unnecessary to
+observe, that my object was to obtain proper materials, on which to
+ground my future expectations, and to form efficacious systems of
+revenue and expenditure. I have the mortification, however, to
+mention, that no accurate or satisfactory answers have been received
+to these questions; and when I tell you, that I am not much deceived
+in my expectations, you will readily form the proper conclusions, as
+to the relaxed habit of administration in this country. I wish you to
+be fully possessed of our situation, and that you may convey a clear
+idea of it to the Court of Versailles. This will be useful to the
+common cause. I trust that I need not remind you how advantageous it
+would be for us to know as fully the real situation of France.
+
+The low state of public credit, for the want of solid funds to
+support it, had induced the United States in Congress, to call for an
+impost of five per cent on all goods imported, and on all prizes and
+prize goods, to be granted for the payment of the principal and
+interest of the debts contracted, or which might be contracted, during
+the present war. Some of the States had complied with this demand. The
+two more Southern States were in such disorder, that a compliance from
+them could not reasonably be expected; neither was it relied on, as
+you doubtless have remarked, on reading the resolutions of the 3d of
+February upon that subject, which must have reached you before this
+day. On the 27th of July, therefore, I wrote a letter to the States of
+Massachusetts, Rhode Island, New York, Delaware, Maryland, and North
+Carolina. I have the pleasure to inform you, that the States of New
+York, Delaware, and North Carolina, have since complied with the
+demand of Congress, and I am convinced that they will, in the laudable
+step, be speedily followed by the other States. In the mean time, we
+must patiently wait the event. Such things require time, and since we
+cannot command obedience, we must stay for the assent of conviction.
+
+On the 6th of August, I wrote a letter to the President of Congress,
+enclosing those already mentioned. On this letter it is necessary to
+say nothing more, than that it met with the approbation of the several
+members, who have, I believe, written such letters to their respective
+States as I desired.
+
+My letter of the 15th of September, to the Governor of Massachusetts,
+was, as your Excellency will perceive, although the settlement of past
+accounts is mentioned in it, written in answer to his of the 23d of
+August, in which he tells me, that he will lay the business of the
+impost law candidly before the Legislature, but thinks it will go
+heavily through. I shall add nothing here to what is said in that
+letter.
+
+My letter of the 20th of September to the Assembly of Pennsylvania,
+was written so particularly, in consequence of the authorities they
+had confided by their resolutions. I wrote to you respecting these
+resolutions, and my plans founded on them, the 21st of July, and I
+just mention here, by the way, that this plan has not been in any
+degree executed, for reasons not necessary to be at present enlarged
+upon. My letter to the Assembly of Pennsylvania, with the enclosures
+referred to in it as accounts of which I send you copies, will need no
+explanation, unless it be to mention that this State had issued one
+hundred thousand pounds, secured with interest on certain lands near
+the city, which is now nearly paid by the sales of these lands, and
+five hundred thousand pounds more not bearing interest, which was
+funded upon the Land Office, the dues to which were estimated at a
+much larger sum. I have sent this letter, as also my private letter of
+the 16th of October, to Governor Nelson, merely that you may be well
+apprized of the incessant attention, which is paid here to call forth
+our own resources. I might have added many other letters to particular
+States on particular occasions, but I dare say you will find this
+letter sufficiently voluminous.
+
+Before I quit this subject of the past requisition of Congress, I must
+add that, notwithstanding my pressing instances, very little hard
+money has been obtained from the States; not more than one hundred
+thousand dollars during my whole administration. There has, indeed,
+been drawn forth some considerable specific supplies of provision,
+and there is on hand a great deal of paper money. From the former our
+army has been principally maintained, and indeed there is a small
+advance made to the Count de Rochambeau, which I mean to be in part of
+your promise mentioned in a former letter, and I here repeat to you my
+determination to comply with it as speedily as any convenience will
+possibly admit.
+
+As to the paper money, it is of no use, although it is necessary, for
+evident reasons, to receive it in taxes. But the confidence of the
+people is so entirely lost, that for the present no bills of credit
+whatever can be made use of as money. I hope that the taxes laid and
+collecting in most of the States, will bring in all this useless load
+by the middle of next summer; and I have some expectation, that the
+States of Massachusetts, Connecticut, Pennsylvania, and Delaware, will
+be entirely rid of it by the spring. If I could buy anything with it,
+I would not, until the last necessity; but it will buy nothing, so
+that it must be burnt as soon as it honestly can.
+
+The picture I have already given of this country will not be pleasing
+to you. Truth bids me add, that it will admit of a higher coloring.
+But what else could be expected from us? A revolution, a war; the
+dissolution of government, the creating of it anew; cruelty, rapine,
+and devastation in the midst of our very bowels. These, Sir, are
+circumstances by no means favorable to finance. The wonder, then is,
+that we have done so much, that we have borne so much, and the candid
+world will add, that we have dared so much. I could take up much of
+your time in recapitulating many less matters, which have tended to
+weaken the exertions we have otherwise been capable of. The confused
+state of public accounts, and the deplorable situation of credit for
+want of funds to secure, or means to redeem, the debt, for which the
+public faith is pledged, are, however, of such important operation,
+that I must not pass them over in silence.
+
+In the enclosures your Excellency will have perceived, that I have
+noticed the effects, which follow from the want of a final settlement
+of accounts. Representations on the subject of these accounts, and
+also of certificates given by public officers in the Commissary's and
+Quarter Master's Departments for articles taken from the people had
+been made by some of the States to Congress. The impost asked for by
+Congress was, I have already observed, for the funding of our debts.
+On the 13th of October, I wrote a letter to the several loan officers,
+in which I expressly prohibit the issuing of any more Loan Office
+certificates. The reason for this order will appear more clearly from
+the latter part of my letter to the several Governors of the 16th of
+October.
+
+I do hope and expect, that some methods will speedily be adopted by
+the United States in Congress assembled for settlement of the public
+accounts, as also to liquidate the several certificates given by the
+public officers, and to provide revenues for funding the public debts.
+The last of these objects must not, however, be urged with too much
+rapidity. The impost law is not yet passed, and is the first step.
+When that shall have been taken, it will give room for urging what
+further may be necessary. In the meantime, there is a well grounded
+expectation, that the clamors of our creditors will induce the several
+Legislatures to comply with the requisitions of Congress upon that
+subject.
+
+From what has been said, your Excellency will perceive, that the
+prospect of future supplies from the several States, is by no means
+very brilliant. I send you the Act of Congress of the 29th of October,
+calling for eight millions of dollars, the Act of the 2d instant
+apportioning that demand among the several States, and the Act of the
+12th instant, repealing (in consequence of my letter of the 5th) a
+part of the Act of the 2d. My circular letter of the 17th, enclosing
+those Acts to the Governors, will close what I have to say on the
+subject. But I must observe to you on my letter of the 5th to the
+President of Congress, that although it is strictly true, that I had
+not seen the estimates as mentioned in that letter, yet it is equally
+true, that until the business was nearly completed, I was supposed to
+have seen them, and when the contrary was suggested, they would have
+been sent from Congress, but that so few States were represented, as
+that only the number absolutely necessary to pass such requisitions
+were then present, and some of the representatives of those few were
+about to depart, wherefore it was waved. I have further to remark on
+the estimates themselves, that they are only for the feeding and
+paying the army. The expense of recruiting that army, of moving it
+from place to place, the heavy articles of clothing and ordnance, with
+expense of the hospitals, and the long train, which is comprehended
+under the title of contingencies, is totally unprovided for. Defective
+as it is, I have no hope that it will be complied with. The great
+arrearage of unfunded debt, the cumbrous load of useless paper, the
+multiplied mass of certificates, the distracted situation of the more
+southern States, the ravages which have been made in them, the total
+loss of their commerce, the real want of coin in many States, and the
+equal want of system in all. These, Sir, are circumstances, which
+forbid the most sanguine temper to expect a full compliance. It shall
+be my business, as it is my duty, to get as much as I can, and for
+this purpose, I shall make compositions; where it is necessary, take
+articles of provisions in lieu of money and the like. Still, however,
+I am convinced, that I shall not get what is asked for, and indeed I
+do not expect any part of it, before the middle of next campaign.
+
+I have said, that I will make some remarks on the supplies already
+furnished by France. It is necessary to do this, as well because I am
+so unfortunate as to differ a little in opinion on the subject with
+the Minister of his Most Christian Majesty here, as because the
+demands we are to make on the Court for the next year, will depend on
+the compliances, which have been, and shall be, made with the grants
+for the present year.
+
+It was a point understood in Congress very early, that his Most
+Christian Majesty would pay the interest of certain moneys to be
+borrowed by Congress in America. Your Excellency knows better than any
+other man what passed on that subject. It would, therefore, be absurd
+in me to recapitulate it. Those circumstances which rendered an
+express stipulation improper then, have introduced much delicacy into
+it now; and, therefore, I do not expect that the Court will recur to
+a formal acknowledgement of what was then, perhaps, rather a personal,
+than national, obligation. But I do expect that the payment of that
+interest will be provided for as heretofore, without considering the
+moneys appropriated to that purpose, as a relief to us in carrying on
+the war. You will have seen, Sir, from the course of my letters how
+much it is an object with me to collect from ourselves the revenues
+necessary to lighten our debts. There is a variety of reasons for it,
+which I will not repeat. Among them, however, this is one, that I wish
+to remove the load from France to ourselves. It will in the end be the
+same thing; because, in proportion as our resources here are
+appropriated, we must ask help there. But it would be better, that the
+people were taught to look at home for the basis of national credit,
+because there alone it can be found. I should not have mentioned this
+matter, but that you will find it noted in the correspondence between
+the Chevalier de la Luzerne and myself, of which copies are enclosed.
+
+Shortly after the arrival of M. Gerard, it was understood that France
+would supply us with the clothing and warlike stores which might be
+necessary, and therefore it was, that Colonel Laurens, when in France,
+labored to prevent a deduction from the subsidy of six millions on
+account of the articles furnished to him. As I am persuaded that his
+efforts were in consequence of your advice, and in concert with you, I
+shall say nothing more upon that subject, only to lament that the
+Court have differed from you in opinion, and to acquiesce in their
+determination, on the principle, that those who give have a right to
+dispose of that which is given.
+
+By a note from the Count de Vergennes, of which I enclose a copy, I
+perceive that the Court granted the United States as a gift, six
+millions; advanced to you four millions to pay the bills which might
+be drawn on you; and became security for a loan of ten millions; the
+amount of which was to be advanced from the royal treasury, in case
+the loan should fail of success. The expression, as to this last
+object, is strong, namely, _that his Majesty will see himself under
+the necessity of supplying the deficiency_, although, in the former
+part of the note it is said, that he will supply it from his own
+finances _as soon as possible_. An expression which, while at the
+first blush it makes an earnestness of affection, may be, and in fact
+has been, construed into a kind of cautionary provision. Your
+Excellency will also, I doubt not, observe what is there said of the
+appropriation of the gift, the last two millions whereof, as is
+already observed, we did not expect to find there.
+
+Enclosed also is an account delivered by the Minister of France in the
+month of September to a committee of Congress, which had been
+appointed to confer with him. There are striking differences between
+this account and the note last mentioned. But by this account it
+appears, that it was the design of the Court to make the advances of
+the present year distinct from all past transactions. From whence this
+conclusion, at least, will follow, that such of the bills drawn by
+Congress, either on yourself, or on their agents in Spain, or Holland,
+as you may have discharged before the commencement of the present
+year, are not to be deducted from the sums mentioned in the Count de
+Vergennes' note. Now that I am on this subject, I will observe to you,
+Sir, that I have determined to prevent that circuitous negotiation of
+bills, which has so much perplexed and distressed you, and have for
+that reason stopped many of those already drawn, as will presently
+appear. Another observation to be made on this account is, that no
+notice is taken of the four millions expressly mentioned in the Count
+de Vergennes' note, as granted to you for payment of bills drawn by
+Congress.
+
+A third observation is, that the articles marked B, and the article
+number two, C, which together amount to the sum of six million, six
+hundred and eightysix thousand one hundred and nine livres, are all
+charged as being expended to the order of Colonel Laurens. But by the
+Count de Vergennes' letter to you of the 8th of June last, it appears,
+that Colonel Laurens was to have had the command of no other than the
+six million livres, given by the King. Indeed the Count's note of the
+16th of May shows the same thing. The letter of the 8th of June just
+mentioned, shows clearly the opinion of the Court on another point of
+very great importance, namely, that the whole ten million livres, to
+be advanced for the loan, are, as in effect they ought to be, subject
+to the disposition of the United States only. A fourth observation is,
+that the article A three, B two, and C one, amounting to four millions
+three hundred thousand livres, were, or were to have been, in your
+possession for payment of bills. If to this be added four million
+livres, granted for that express purpose, of which no mention is made
+in the account, it would follow, that you would have eight millions
+three hundred thousand livres at your disposal; and this leads me to
+consider the amount of the demands, which could be made on you.
+
+These cannot be precisely ascertained, but the paper number seventeen,
+contains the best estimate, in my power. The first six articles of
+this estimate contain all the bills, which have been drawn upon you,
+excepting some interest bills, which although made out had not been
+delivered to the people before the 1st of April last. These amount to
+ten millions six hundred and seventyone thousand four hundred and
+fiftysix livres, thirteen sols, four deniers. The article number
+seven, is the whole amount of guilders drawn for; the far greater part
+of which I have detained, as you will perceive by the article number
+eight. The balance it is not possible to ascertain exactly in livres,
+because it must depend upon the course of exchange; but at two livres
+for a guilder, the whole of the bills actually negotiated on Holland
+will amount to one million ninetyfour thousand seven hundred and
+twentynine livres. The article number nine, is the amount of bills
+drawn on Spain, of which a considerable part has been paid by Mr Jay,
+and a part, somewhat more considerable, is destroyed. These parts are
+contained in the articles ten and eleven. The balance (calculated at
+the value of a dollar in France, which will, I suppose, be as much as
+it can cost) amounts to one million seventyseven thousand two hundred
+and eighteen livres. So that the whole of those bills, which by any
+means whatever could have come upon you for payment, will be twelve
+millions eight hundred and fortythree thousand four hundred and three
+livres, thirteen sols, four deniers, and from this sum very
+considerable deductions are to be made. The article number twelve,
+which is the first of them, contains the exact amount of the several
+bills for interest, which were negotiated previously to the first of
+April last.
+
+It may be objected, that these bills will many of them be payable
+during the present year; which indeed, is true, and for that reason,
+I have added to the bottom of the account the extent of one year's
+interest on Loan Office certificates, and which is more than will, I
+believe, be presented. The next article, number thirteen, is for bills
+which had been drawn on you, and have been stopped by me. The article,
+number fourteen, is, you will perceive, for bills, which in all human
+probability will have been paid during the last year. The certainty of
+this transaction is doubtless with you, and what we are now upon is an
+estimate, not an account. The remaining articles speak clearly for
+themselves; wherefore I conceive myself well founded in making the
+amount of deductions in this estimate, nine millions one hundred and
+sixtythree thousand two hundred and sixtyfive livres; so that after
+including one year's interest, as is already mentioned, the total is
+five millions eight hundred and seventythree thousand one hundred and
+twentyeight livres, thirteen sols, and four deniers; and from this
+there must be some deductions, because undoubtedly you have paid some
+of the bills drawn on Spain and Holland before the first day of
+January last. I have mentioned no sum for this purpose, but in order
+to be within bounds, I will suppose it to be only three hundred and
+seventythree thousand one hundred and twenty eight livres, thirteen
+sols, and four deniers, and then the extent of the bills payable by
+you in the year 1781, will be five millions and a half of livres; and,
+therefore, the four millions granted by the Court, and the million and
+a half said to be stopped by you in Holland, will apply to this
+demand.
+
+As the last mentioned sum appears by the Count de Vergennes' note, to
+have been part of that, which was given by the Court, this state of
+the matter will leave clear the ten million livres to have been
+loaned, and seems properly to consist with the Count's note of the
+16th of May, and his letter to you of the 8th of June following. I
+have mentioned above, that in making the deduction for bills paid
+previous to the year 1781, I meant to be within bounds. It is proper
+to give a reason why I supposed that deduction to be so. I have
+already made one remark on the article A one two and F, in the account
+officially communicated by the Minister of France in September last.
+From those articles it appears at least that three million livres were
+advanced for the payment of bills last year. The amount of the
+interest bills, I have already stated as being in the extent, two
+millions one hundred and ninetythree thousand nine hundred and ninety
+livres, to this sum must be added one hundred and fortyfour thousand
+livres, due to M. Beaumarchais, and the one hundred and twentyfive
+thousand livres deducted in the estimate, as having been drawn for by
+the Resolutions of the 19th of May, 1780. These sums together amount
+to two millions four hundred and sixtytwo thousand nine hundred and
+ninety livres; to which I will add for contingencies one hundred and
+thirty seven thousand and ten livres more, making the whole amount two
+millions six hundred thousand livres; wherefore suppose the grant of
+moneys to pay bills for the year 1780, to have been but three million
+livres, and it appears evidently to have been at least that, there
+would have remained in your hands a balance of four million livres;
+which is more than I have deducted from the amount of my estimate.
+
+On the whole, then, I conceive myself well grounded in the opinion,
+that the whole loan is still at our disposal, and this opinion is so
+well supported by the Count de Vergennes' letter to you, that I might
+with great propriety insist on that point. The letter, therefore,
+which I shall write with such act of Congress, as may be made, in
+consequence of yours of the 11th of June, will proceed entirely upon
+that supposition.
+
+I must, however, remark to you in this place, that I by no means
+intend to insist rigidly with the Court, on points which may incommode
+them. We are neither in a situation to do it, nor would it be proper
+even if we were. But while I say this, I do not mean to preclude
+myself from such observations as my duty shall render necessary, on
+any transaction which has happened, or which may happen hereafter.
+
+I enclose you an account, containing the extent of what I conceive to
+have been the appropriation of the supplies above mentioned, together
+with an invoice from the Board of War, amounting to the sum of one
+million seven hundred and seventyseven thousand five hundred and
+twenty livres and ten sols, and which I will call one million eight
+hundred thousand livres, from which it will appear, that there must
+remain, subject to my disposition, the sum of four millions at least,
+after replacing the Lafayette's cargo, and purchasing the articles
+mentioned in the invoice.
+
+I have had the honor to mention to your Excellency, that I have the
+misfortune to differ in opinion with the Minister of France. This is
+upon two points, namely, the drawing of bills by me, and the amount of
+what may remain due by the Court. From the correspondence between us,
+which is contained in the enclosed papers, there will appear to have
+been some warmth on the occasion, but this rather arose from the
+nature of the transaction, than anything else. I know not what
+impression it may have left on his mind, but for my own part, as I
+greatly respect him, I sincerely feel for a situation, to which the
+orders of his Court have reduced him; and although the language of his
+letter of the 24th of November, evidently intended for his Court, was
+so pointed as to force me into the observations contained in mine of
+the 26th, in my own justification; yet I was almost as much wounded
+while writing, as he appeared to have been at reading it. I am much
+inclined to believe, that he wishes to place this business
+substantially in the same point of light that I do. The whole
+correspondence is enclosed, that you may be in a capacity to make any
+proper observations, which occasion may dictate.
+
+Before I take up this correspondence more particularly, I must detain
+you one moment longer to mention the facts, which preceded it. Before
+my acceptance of the office I now hold, the Chevalier de la Luzerne
+informed me, that the Court had given money to the United States, with
+a determination that it should be at the disposal of General
+Washington, but that upon my acceptance, he would authorise me to draw
+for it. It was agreed between us, that I should draw for five hundred
+thousand livres, and so much be deposited to answer the drafts, and by
+giving him notice in season a new deposit of five hundred thousand
+livres should be made, and so on from time to time. Shortly
+afterwards, I formed a plan to get money from the Havana, and
+explained it to the Chevalier. He approved of it, and in consequence,
+I drew a bill on Messrs Le Couteulx & Co. the 17th of July, for five
+hundred thousand livres, but the capture of the Trumbull frigate
+prevented the negotiation of that bill, which being then on board of
+her, intended for Havana, was sunk with my despatches; and the
+knowledge that Colonel Laurens was then on his way with specie,
+together with the expectation of that, which was to be sent by the way
+of Holland, prevented a repetition of the experiment upon Havana at
+that time. It was previously to the 2d of July, 1781, that the
+Chevalier agreed that I should negotiate bills for one million five
+hundred thousand livres, of which the five hundred thousand livres to
+have been negotiated at the Havana, was a part.
+
+You will see enclosed my letter of the 2d of July upon this subject,
+which was the day before M. de la Luzerne went to camp; and also M. de
+Marbois' answer to it. My reply of the 4th closes the matter at that
+time; and then it was understood on all hands in the manner I have
+just now mentioned, and which I have, you will perceive, insisted on
+through the whole of my correspondence, and which was equally insisted
+on in a variety of conversations.
+
+That part of the letter last mentioned, which relates to the effect of
+drawing bills, together with the letters of the 2d and 3d of August,
+need no comment. They merely serve to show the desire, which animates
+the servants of the United States, to economise the resources of
+France. I am not disposed to criminate, but it is right that I should
+inform you of my opinion, which is, that the French troops in this
+country have cost much more than was necessary, if my information is
+not extremely erroneous. I have now in contemplation plans for feeding
+them more cheaply, and I think the French ration ought not to cost
+more than half a livre, at least not much more, if so much. The
+officers who now return to Europe can best answer, whether it has
+formerly exceeded that amount, and the Court must know how much has
+been lost on the negotiation of their bills. While on this subject it
+is my duty to add, that the Minister of France here, has demonstrated
+the most earnest desire to introduce economy in the expenditures of
+the army, and that the readiness shown by the Count de Rochambeau, and
+other general officers, to aid in it, demand acknowledgements.
+
+On the 24th of September the Chevalier wrote me a note, of which a
+copy is enclosed. This, you will observe, was after the receipt of
+those letters, in consequence of which, he, among other things,
+communicated the account, on which I have already had the honor of
+making some remarks. This letter, while it assigns reasons for
+continuing my drafts, shows clearly that the Chevalier had
+communicated his instructions to stop them, which was done, not only
+to me, but to the committee. But I confess, that I was very far from
+considering those instructions as absolute. I concluded, that a line
+of discretion had been left to the Minister; and, indeed, his answer
+to my letter confirmed me in that opinion. This answer is of the 26th.
+He does indeed say, that _it is impossible to depart from the precise
+instructions received on that subject, and authorise my drafts to the
+amount of two millions five hundred thousand livres_; but he
+immediately goes on to permit an addition of two hundred and
+ninetyeight thousand nine, hundred and eightyone livres, fifteen sous,
+and four deniers. Wherefore, it followed, that either those
+instructions left him at liberty to extend those drafts, or that he
+was at liberty to disregard the instructions. I therefore did expect
+to have gone on to the sum first agreed for. These expectations were
+frequently mentioned in conversation, and particularly so in that
+alluded to in mine of the 22d instant.
+
+On the other hand, I must acknowledge, that he always mentioned his
+instructions, but so as to leave me under the original impressions I
+had received. As this letter of the 22d takes notice of another
+matter, it is proper to mention here, that the Chevalier had observed
+on a difference between the account he delivered officially to the
+committee of Congress and the note to the Count de Vergennes; but no
+pointed conversation on this subject had taken place, he expecting
+further information from his Court, and I hoping daily to hear from
+you, and being unwilling to raise a question unnecessarily. The reason
+why I did at last bring it forward is contained in my letter, and
+therefore I shall say nothing about it. The account sent in that
+letter, needs no comment, although it differs very widely from that
+marked thirtythree.
+
+I shall only note, that if the sum of six hundred and eightysix
+thousand one hundred and nine livres be taken from that mentioned as
+advanced for stores by order of Colonel Laurens, so as to render that
+article conformable to what is said in the Count de Vergennes' note,
+the same sum must be added to the balance; by which means placing the
+one million five hundred thousand livres, to have been drawn for by
+me, in the stead of that to have been sent out from Holland, the whole
+will stand as first above mentioned, leaving the amount of the loan
+untouched. In the close of my letter, I mention a determination to
+draw _on account of the balance_, an expression which appears to have
+been mistaken. The reason of the assertion will in some degree appear
+from the answer to it. I will add, that, although I shall not risk the
+drawing of bills while there is any chance that they may return
+protested, I must, nevertheless, take measures to obtain the money for
+very evident reasons, and it is with this view, that I have drawn on
+you in favor of Messrs Le Couteulx & Co. for one million livres.
+
+You have also a copy of the letter written on the 24th instant, in
+answer to that last mentioned. I shall not here notice the difference
+between what we have said about the additional million, as well
+because it is in substance the same, as because I had not insisted on
+drawing for it. In like manner, I shall say nothing about the
+permission given me to extend my drafts after the orders to stop them
+brought by Colonel Laurens; but you will observe, that the pointed
+declaration, that the letter of the 26th of September _could not leave
+me the shadow of a hope, &c._ (with what follows it) stands in such
+direct opposition to the whole tenor of my letter and to the real
+state of my expectations, that to have submitted in silence, would
+have been tantamount to the acknowledgement of falsehood. It is indeed
+easy to perceive, that the Chevalier wrote this letter to his Court,
+although he directed it in the first instance to me; and I conclude it
+to have been in consequence of his last despatches, which had not been
+received long before his letter was written. The equivocal use of the
+expression _as soon as possible_ will not escape you, Sir; but it
+shall meet no other remark from me than this, that I am convinced the
+Court will not apply it in the same sense with the Chevalier. Neither
+the dignity of the Prince, nor the magnitude of the occasion will
+permit a reliance on such distinctions.
+
+The state of the account made in this letter, I really do not see the
+propriety of. It seems to have been, in some degree, extracted from
+the account furnished in September to the committee of Congress,
+because, if the mistake of six thousand livres in the castings of that
+account be rectified, it will make the first sum total amount to
+fifteen millions one hundred and ninetynine thousand five hundred and
+one livres, from which deducting ten million livres, being the amount
+of the subsidy of six million livres and loan of four, there will
+remain the first article of that account, namely, five millions one
+hundred and ninetynine thousand five hundred and one livres. But if
+this be the case, it is a little surprising, that the Chevalier should
+not have noticed a deduction made in that very account of the two
+first articles, amounting to three millions four hundred and sixteen
+thousand livres, which are, it is there said, to be added to the
+advances formerly made to the Congress.
+
+It is somewhat extraordinary, that all these should be considered by
+the Chevalier as advances made in the month of September. For although
+that account was rendered in September, yet four millions six hundred
+and ninetyfour thousand three hundred and ninetytwo livres are
+expressly mentioned as being to be furnished. I shall dwell no longer
+here, but I must repeat, notwithstanding the polite manner in which
+the assertion has been contradicted, that my operations have received
+a very severe, as well as material check, from stopping my drafts;
+not so much on account of the value of the three hundred thousand
+livres, as because, while they were negotiating, I should undoubtedly
+have received those advices from you, which would have enabled me to
+go on in the same line. I had brought the exchange up very nearly to
+par, and should soon have sold at seventeen pence this money
+(Pennsylvania money) for a livre, or eight shillings and sixpence for
+a crown, which is worth here at the extent but eight and four pence.
+This would, therefore, have been two per cent advance, with a saving
+of time, freight, and insurance; and, although a very large sum could
+not have been negotiated during the winter, perhaps not more than one
+million five hundred thousand livres, yet that would have enabled me
+to go on making the preparatives for an early and vigorous campaign,
+and kept everything in train, till some money could have been either
+shipped from Europe, or so negotiated as to be sent hither from
+Havana.
+
+I will take no notice of what is said in the letter now before us, as
+to the error of six thousand livres, because you must at once perceive
+how little it was an object of conversation, and how easy to be
+remedied by any clerk, without waiting either orders or instructions
+from the Court; and because you must also perceive the material
+omission of four million livres, which cannot be overlooked, let the
+calculations be combined as they may. I have not, however, the less
+concern about it, because so rigid an adherence to so palpable an
+error leads me to fear a design, which the generous conduct of the
+King will not permit me to suspect.
+
+Having already given my sentiments as to the interest of Loan Office
+certificates, I will not now repeat them. As to the replacing the
+Marquis de Lafayette's cargo, it is a matter which I will not
+seriously contend about, because, although there will not be use for
+all the articles, there certainly will for many of them; and therefore
+I hardly think a representation on that score necessary, because there
+is no use in multiplying disagreeable considerations. But, by the way,
+I must observe, that it is a little extraordinary this cargo should
+have been replaced out of the loan to have been opened, &c. at your
+request, while at the same request money could not be obtained to pay
+the bills drawn by the order of Congress, as appears from your letter,
+and that from the Count de Vergennes, which is enclosed in it. The
+idea of making advances for any individual State from the funds of the
+United States, must never be admitted by any servant of Congress. It
+will be quite time enough to do that, when they shall have complied
+with the several requisitions made upon them, and when they shall have
+intrusted these subaltern negotiations to the Ministers whom Congress
+have appointed. Such advances stand on a very different ground,
+indeed, from those made for purchasing a like cargo to that of the
+Lafayette; and it cannot be expected, that they should be passed to
+the account of Congress. Besides this, the successes to the southward
+have rendered succors of that sort unnecessary. What has already been
+said will render observations on the letters of the 26th instant
+unnecessary.
+
+On the whole matter, I have to request your exertions to have this
+affair settled as soon as possible, and that you will cause the whole
+of what remains to be paid over to Messrs Le Couteulx & Co. sending
+me notice thereof by every opportunity, that I may attend to the
+disposition of it. I mean, nevertheless, that a reservation should be
+made of what is necessary, to purchase the articles mentioned in the
+enclosed invoice of the Board of War. I wish you to have as little
+trouble as possible in this business, and, therefore, I am to request
+you to employ in it Mr Barclay, our Consul General, and Mr Matthew
+Ridley. They are both gentlemen of knowledge and integrity, and I
+doubt not will perform it with economy and expedition.
+
+You will also be pleased to take arrangements with the Minister of
+Marine, and give your consequent orders to those gentlemen, so that
+all articles of every sort and kind, which are the property of the
+United States, and now in Europe, may come under safe convoy to this
+port. The Marquis de Lafayette, who is charged with the General's
+instructions on military subjects, will assist in combining matters,
+so as to accomplish these objects. I confide, Sir, that your wisdom
+and his vivacity will produce the most beneficial consequences.
+
+Let me add, while I mention the depositing all which remains due to us
+with Messrs Le Couteulx & Co., that I wish you, in conformity to the
+Act of Congress enclosed, to pay the sum of fortytwo thousand one
+hundred and eightynine livres therein mentioned, with the interest, to
+William Lee. Let me also mention my desire, that you would retain two
+millions two hundred thousand livres to pay interest bills drawn from
+the 1st of September to the 1st of April next. I will take such
+arrangements as will save you the trouble of doing this business in
+future, and I mention it here, although the money will come more
+properly under the head of supplies to be asked from the Court for the
+ensuing year.
+
+The declarations, that no more pecuniary aid will be afforded to us,
+are very clear and explicit, but I trust, that these declarations will
+not be adhered to. The interest bills, as I just now observed, will
+amount to about two millions livres. You have to pay M. Beaumarchais
+two millions five hundred and fortyfour thousand livres, and the
+clothing and stores necessary will amount to four millions livres.
+Besides all this we must have money, so that it will become necessary
+to obtain at least twelve millions. When I mention this sum, I take
+the lowest, and I do it from my sincere desire not to burden the
+finances of France with American demands; but I think such clear
+reasons can be assigned for it as must produce conviction.
+
+You have a copy of my letter to the Chevalier of the 3d instant upon
+this subject. You will have observed, that my circular letter of the
+19th of October, which was enclosed in this of the 3d instant, is so
+formed as to lower the expectations of the several States, and
+accordingly the account sent with it is framed from the erroneous one
+before mentioned, and the four millions are totally omitted. The
+languor of the States had been so fostered by their teeming
+expectations from France, that it became my duty to prevent if
+possible the ill effects of it. But on the other hand, a circular
+letter could not but be public, and it necessarily contained such
+matter as must stand in the way of procuring a proper settlement of
+past accounts with the Court, or of obtaining future supplies from
+them. I, therefore, communicated that letter to the Minister, and as
+he very naturally asked a copy, I took the first opportunity, after
+the many necessary copies could be made out, to send it with mine of
+the 3d instant. This contains, as you will perceive, some short
+reasons why we want, and why France should grant, pecuniary
+assistance. The answer to it of the 4th instant, and my reply of the
+6th, close the correspondence on that subject.
+
+This last was intended to take off from the force of those
+observations, as to the King's wisdom and integrity, which had rather
+more of republican simplicity, than courtly elegance. As my letter of
+the 3d was not intended to convince the Minister, that being
+unnecessary, as I am persuaded the conviction was already produced,
+but to prevent any improper conclusions from my circular letter, so it
+was unnecessary to make any particular reply to his observations,
+because, after all a paper argument in Philadelphia can have but very
+little influence at Versailles; and as the Chevalier observed very
+properly in one of his letters, the instructions from his Court must
+necessarily form the basis of his opinion. The proper and useful mode,
+therefore, of convincing him, is by stimulating them.
+
+Knowing as I do the great force and compass of your talents, I should
+not presume to add one word of remark on the Chevalier's letter, if I
+were not convinced, that as it was written for the Court, so it will
+be necessary to oppose it in some degree by a knowledge of facts,
+which may not be in your immediate view. He takes it for granted, that
+the people will make extraordinary efforts, in consequence of their
+successes, and I will readily admit that they have the ability and
+ought to have the inclination; but they must differ much from former
+experience, if they do exert themselves. I will admit that their
+rulers ought to urge them into activity, but it must be remembered,
+that those rulers are themselves of the people, that their ideas and
+views are limited, and that they act like the people rather from
+feeling than reflection. I speak here of the several Legislatures, for
+I must repeat again and again, that our general system has not grown
+into that form and vigor, which can communicate the impulses of a
+sovereign mind to the remotest members of subjected power. I will
+admit that a Monarch, would on so brilliant a success, call into
+action, all which his kingdom possessed of strength and resources; but
+America is not under monarchical government. I will admit further,
+that if the object of the war was conquest, instead of security, every
+victory would give new animation to all the members of our republican
+confederacy; but this war is not carried on for conquest. While it
+rages in any quarter it makes food for itself. The inroads of the
+enemy create opposition. An application is then made immediately to
+the feelings of the people; but when the inroad ceases, when the enemy
+retires, the storm subsides, each man returns to his domestic pursuits
+and employments, and thinks no more of the scenes, which had just
+passed before him. It is true that this is only changing the field of
+battle. But America is so extensive, that a shock given at one
+extremity is lost before it reaches the other.
+
+This true picture of our country, while it demonstrates the
+impracticability of subjecting it, explains the reasons why our
+exertions have always disappointed both our friends and our enemies.
+If then, as the fact is, the mere change of position at the option of
+the foe can so lull our people to rest, how much more are we to
+expect it will follow from the capture of a considerable part of his
+force. To reason rightly on the late events, we must admit the ability
+to make greater exertions, and then seek the means of calling them
+forth. This, Sir, can only be accomplished by pecuniary aid. The
+Chevalier observes that the King's obligations to us have been
+exceeded. This is but a narrow idea. If the King is engaged to support
+the war until our Independence is established, his simple object of
+inquiry will be, how that can be speedily and cheaply accomplished? It
+is certain that America ought to do everything in her power, and you
+may assure the Court, that Congress and the servants of Congress are
+sensible of this duty and determined to comply with it. But it is in
+vain to think of breaking the bounds of possibility, and equally vain
+to think of changing the nature of man.
+
+Let me add, that there is little propriety in reproaching Americans
+with faults inseparable from humanity. Besides this, the exertions of
+our country have really been very great, and as soon as more
+consistency shall have been put in the administration, they will again
+be great; but this is the period of weakness between the convulsive
+labors of enthusiasm and the sound and regular operations of order and
+government.
+
+There is in the end of the Chevalier's letter a hint in relation to
+our commerce, which although it does not immediately apply to the
+present purpose, must not pass unnoticed. That an indirect commerce
+has taken place with England is true, and that France has in a great
+measure been the cause of it is equally true. Men will naturally buy
+where they can obtain things most cheaply. The prime cost of goods,
+though a great object in time of peace is not equally so in time of
+war. The freight and the insurance are then so high that a small
+difference of danger or convenience will counterbalance a great
+difference of price. When France, by subscribing to the principles of
+the armed neutrality, gave her enemy the means of bringing her
+manufactures in safety to our neighborhood, she tempted our merchants
+to buy those manufactures. She added the motives of interest to the
+force of habit, and ought not, therefore, to be surprised that such
+cogent principles have had effect. One mode remained, that of
+convoying the trade between France and America, and that mode has been
+neglected. I am happy, however, to observe, that this British commerce
+is dwindling very fast. The war with Holland has given it one deadly
+blow, and if our privateers are once more freed from the shackles too
+hastily imposed upon them, I cannot doubt, but that the trade of this
+country will flow directly to France, as indeed it ought to do.
+
+And now, Sir, before I close this letter, let me make one further
+observation with respect to the future supplies from his Majesty. To
+solicit them is considered as asking for assistance in a war, whose
+object is of the last importance to us. This is the point of view in
+which I have placed it, and in which I am desirous it should stand.
+But there is another method of looking at it, and, although delicacy
+will forbid us so to present it, yet you may depend upon it, that
+there are many, who have taught themselves to reason about it in a
+different way from what you or I would wish. Whether Britain will
+acknowledge our independence is a question, which is to be answered
+only with some modifications. If, in consequence of such an
+acknowledgement, we would forego our connexion with France, there is
+no manner of doubt, but she would make it immediately. This would on
+our part be wrong, and therefore it ought not to be done; but, Sir,
+when this great object shall be presented on the one side, and the
+weight of new and great taxes be felt on the other, with all their
+ancient prejudices and predilections in aid, will not there be some
+men who, for the shades of ease, will quit the paths of virtue?
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, November 29th, 1781.
+
+ Sir,
+
+Having just now received a short letter from Mr Jay, of the 1st of
+September, from St Ildefonso, I find it my duty to communicate the
+contents immediately to the United States in Congress assembled. Mr
+Jay informs me, that he expects soon to be under the necessity of
+protesting the bills drawn on him; that Dr Franklin had hitherto saved
+that necessity, but that he cannot advance much more, unless by the
+express order of Congress. He says, further, that he has but little
+hopes of loans or subsidies from Spain; that the ship America is
+neither sold nor engaged, and that the Spanish Court seems determined
+to do nothing until the campaign ends.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, December 3d, 1781.
+
+ Sir,
+
+When I was called to the superintendence of the American finances, it
+became necessary to appoint a banker, with whom to deposit the moneys,
+which were to be granted by the Court for payment of my bills. Your
+house naturally presented itself to my consideration, but as I knew
+you to have large accounts open, and as I wished that my transactions
+should be kept in a separate, clear, and distinct manner, I named for
+this purpose the house of Messrs Le Couteulx & Co. At the same time, I
+wrote to his Excellency, Benjamin Franklin, the Minister
+Plenipotentiary of the United States, upon that subject, and was
+honored with his answer two days ago. He has mentioned your services
+to my country in those warm terms of gratitude, which are due to
+early, vigorous, and disinterested exertions. My deep respect for the
+opinions of that worthy Minister, my desire, on all occasions, to
+evince the gratitude of my country, added to those favorable
+impressions, which your conduct has made upon my mind, have induced me
+to employ you as a banker in the affairs of the United States.
+
+You will be pleased, Sir, to close your former accounts, and, in due
+season, to transmit them. For subsequent transactions, you will open
+new accounts, and, from time to time, keep me informed of the state of
+our affairs. The allowance formerly made of one half will be
+continued.
+
+The intelligence lately received, gives strong hopes that the loan of
+five millions of guilders, opened in Holland, will have been
+completed before this reaches you. One million of these is
+appropriated to purchasing certain articles for our army; and I now
+direct one million to be deposited with you, and one million with the
+house of your brother in Amsterdam, subject to my drafts. The
+remaining two millions are to be shipped for this country.
+
+As I am not positively instructed that this loan has succeeded, I do
+not venture to draw bills on you; but in case you shall be in cash for
+the United States, which I expect will happen, you will pay to Messrs
+---- & Co., for account of John Ross, the sum of two hundred thousand
+livres; to Messrs Le Couteulx & Co., for account of William Bingham,
+one hundred thousand livres, and to John Holker, for account of John
+Holker fils, the sum of one hundred thousand. From each of these
+persons you will take quadruplicate receipts, in the form following;
+"Received of ----, banker, by order of the Superintendent of the
+Finances of the United States of North America, on behalf of---- the
+sum of ---- being so much paid by the said States to him, the said
+---- for which I have signed four receipts, all of this tenor and
+date. Done in Paris this ---- day of ---- 178--." You will be
+pleased, Sir, to forward to me three of the copies by different
+opportunities.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. JOLY DE FLEURY.
+
+ Philadelphia, December 3d, 1781.
+
+M. de Fleury will have the goodness to pardon an entire stranger for
+intruding one moment on that attention, which is engaged in so many
+important objects. I have been called, Sir, almost at the same time
+with you, though in a different country, to the same office. The
+intimate alliance and connexion between our Sovereigns is such, that
+we are engaged in the same cause. My first steps have encountered
+difficulties, and you have afforded the first means of surmounting
+them. Thus, I flatter myself, from your clear view of the interests of
+France, that you are disposed to give pecuniary aid to America. I will
+not pretend to delineate the advantages resulting from it to the
+penetrating mind, which has already conceived them. I will only add my
+wish, that your name may be enrolled among those true friends of
+France, who, by espousing warmly the cause of this country, have shown
+themselves to be equally the friends of all human nature. To defend,
+to assert, and to vindicate the insulted rights of man shall be the
+solid monument of glory, which his Minister will industriously raise
+for your royal master. With every fervent prayer for their most
+perfect success, and with the sincerest esteem and attachment, I pray
+you to believe me to be, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, December 5th, 1781.
+
+ Sir,
+
+I was yesterday morning favored with yours of the 12th of September,
+enclosing third copies of your two letters of the 26th of July, also a
+copy of Count de Vergennes' letter to you of the 23d of August. I find
+by these letters, that the idea I had entertained as to the advances
+made by the Court was not so favorable as the truth, and that the ten
+millions of livres, or five millions of florins to be borrowed in
+Holland, will be over and above those advances. How much pleasure I
+receive from that circumstance, you will easily conceive. It is an
+additional pleasure, that the labor of adjusting the matters mentioned
+in mine of the 27th of November, will be saved to you.
+
+I am much surprised to find so large purchases made on account of the
+United States in Holland. If everything else were equal, the generous
+conduct of France towards us has been such, that I cannot but think
+that every possible preference ought to be given to the manufactures
+of that nation. But there is, in my opinion, very essential
+preferences of a different kind. The position of Amsterdam is
+unfavorable in a war with England to a commerce with this country.
+France also can, and I suppose will give convoy, to the articles
+procured there. But I will dwell no longer on the subject, for, I
+trust, that nothing of the kind will happen hereafter.
+
+Should the loan be obtained, you will be so kind, Sir, as to deposit
+one million of florins with Mr Grand, to whom I will pray you to
+deliver the enclosed letter. I shall, in consequence, not draw upon
+you for a million of livres in favor of Messrs Le Couteulx &. Co. as
+I intended; and, in like manner, I beg leave to revoke what I have
+said on the subject of paying all balances into their hands, in my
+letter of the ---- last. One million of florins you will also be
+pleased to deposit with the house of Grand at Amsterdam, sending me
+the precise address of both, so that I can direct my bills properly to
+them. Nearly one million will be necessary to pay the invoice sent in
+my letter of the ---- last. The remaining two millions, I wish may be
+shipped from France in gold by proper vessels of war, which, I dare
+say, will readily be provided by M. de Castries.
+
+I perceive you have not written to Congress on the subjects mentioned
+in the letter of the Count de Vergennes of the 23d of August, which I
+am glad of. The more that an opinion prevails here that we must succor
+ourselves, the more we shall do it; and, therefore, I shall not
+communicate what you have said for the present; but, as the best
+acknowledgement, I shall endeavor to further the operations against
+the common enemy, and draw forth all our resources for an early and
+vigorous campaign. The splendid and important success, which has
+crowned the combined arms in Virginia, is, I hope, only an earnest of
+what is to be done next year. These are the returns which we shall
+make to the King, for the aid he so generously affords. And I have a
+very particular satisfaction in assuring you, that throughout this
+country, a strong attachment to the French nation is daily taking
+place of that blind partiality, once felt for everything, which had
+the name of English. Let me add, for your use, a piece of mercantile
+information lately communicated to me from unquestionable authority.
+The demand for French goods in this country has raised the prices in
+France from twenty to thirty per cent. The importations have reduced
+the prices here nearly twenty per cent, and the exchange, you already
+know, has been raised considerably.
+
+I shall say nothing to you in this letter on the subject of future
+supplies, further than what is contained in mine of the ---- last,
+because I feel a conviction, that you will obtain such as may be
+necessary. I will only repeat what I have often said, let them be
+early. I enclose a letter to M. de Fleury, which you will either
+deliver or not, as may best answer your purposes.
+
+I hope often to have the pleasure of hearing from you, and I pray you
+to believe me to be, with very great truth,
+
+Dear Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF NEW YORK.
+
+ Office of Finance, December 11th, 1781.
+
+ Sir,
+
+I have been honored with your favor of the 24th of last month,
+covering resolutions of the Senate and Assembly of the 21st and 22d.
+You will easily conceive by what passes in your own bosom, how much I
+feel at a representation of distresses, while the necessity of revenue
+admits not of alleviation. The Legislature are undoubtedly best able
+to discover and to describe the evils, which afflict their
+constituents, and I should almost in any case, bend before so high an
+authority. But the situation, in which I am placed, compels me to make
+some observations, which if they are not admitted to have weight, will
+not I hope, be considered as foreign to the purpose.
+
+It is contended by the State agent, that the supplies, which he has
+delivered, and those which he holds ready to furnish, amount fully to
+the demand for specific supplies. And it is lamented, that the army
+have subsisted from the neighborhood of West Point in former times,
+leaving thereby a great mass of certificates, which being useless to
+the inhabitants, the supplies obtained have to all intents and
+purposes, operated a tax. To this I will add, that the resolutions of
+your Legislature state an extra expense, which has produced a tax to
+the amount of one hundred and eighty thousand dollars. If these
+exertions joined to the ravages of the enemy, and the usurpations
+complained of, have occasioned distress, they at least demonstrate the
+abilities of the State in former periods. You will perceive, that I am
+now about to supply the troops by contract, wherefore a ready market
+for their produce must immediately be opened to the inhabitants of
+your State. This will enable them to obtain hard money, and that will
+enable them to pay taxes. The great object, therefore, of the
+Legislature will be to adopt a vigorous and just system of taxation,
+and to take off all those restraints upon the people, which injure,
+afflict, and impoverish them, without producing any advantage to the
+public. The army must be supplied by law or by force. The latter mode
+is detestable, and as to the former, certainly the best way, in which
+it can operate, is to raise taxes and purchase supplies; because by
+this means much less of the produce of the country is expended, and in
+the event, the payment of the people is by the produce of the country,
+that being the only source of national wealth.
+
+As the Legislature seem to have great apprehensions on the score of
+former demands, I take the liberty of enclosing an estimate, which is
+formed on the supposition, that all the specific supplies shall have
+been delivered, which as I have already had the honor to observe, is
+contended for by the agent, though the truth of it cannot be admitted
+before the final adjustment of the amount. The burden of these demands
+would in such case be very moderate. It is my intention to destroy the
+paper money as soon as it can be called in. Wherefore a slight
+exertion for that purpose will relieve your State from the burden of
+it.
+
+As to the extra expense, which has accrued to the State by calling new
+levies into the field, it is the business of the United States in
+Congress to determine upon it. It is, however, my duty to remark, that
+exclusive of the great expense of additional officers, the sum there
+stated as a bounty is fully equal to the pay and rations of so many
+men for six months. I am sure that I need not observe to your
+Excellency the impracticability of carrying on a war where it costs as
+much to enlist a man as it does to feed and pay him for six months. A
+few such extra corps raised in each State, and the bounties charged to
+the United States, in payment of the quota would immediately compel
+Congress to disband the whole army for the want of the means of
+subsistence, or to permit the troops to plunder the inhabitants.
+
+In the midst of those complaints of your situation I receive a
+particular pleasure from the assurance that the Legislature will
+contribute to the general service of the Union their proportion of
+well established funds. I hope the recommendation for that purpose
+will soon come under the consideration of the United States and be
+duly expedited.
+
+I have the pleasure to add, Sir, that a report from this office for
+the full and final settlement of accounts is now before the Congress.
+Whenever a determination shall have been made it will be transmitted.
+
+ With perfect respect and esteem I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNORS OF NORTH CAROLINA, SOUTH CAROLINA, AND GEORGIA.
+
+ Office of Finance, December 19th, 1781.
+
+ Sir,
+
+In my circular letter on that subject, I have already had the honor to
+transmit the requisitions of Congress, contained in their Acts of the
+30th of October and 2d of November last, by which the quota of your
+State for the year 1782 is ---- dollars, payable in quarterly
+payments, commencing the 1st day of April next.
+
+The distresses which your State has lately suffered, will not, I fear,
+permit the collection of this quota in hard money, although the
+subsistence of the army will naturally call for an expenditure to a
+great amount in such articles as the State can furnish. The mode
+hitherto pursued of granting receipts and certificates by every one
+empowered or employed to impress or purchase, cannot but be attended
+with much confusion and difficulty, if not with oppression and fraud.
+It is the duty of those who are intrusted with the management of the
+public affairs, to prevent as much as possible these evils, and as
+much as possible to equalize and diminish those burdens, which the
+people must bear. It would give me great pleasure to be put in such a
+situation, as that I might at once contract for the supplies of the
+southern army; but I have not specie for the purpose; nor do I find
+that taxes are yet laid in the Southern States to procure it.
+Wherefore, I must wait yet some time, until the public treasury is
+replenished, until the hard money now in America gets somewhat more
+diffused, and until I have a prospect of receiving back from those
+States in hard money their quota of the public taxes.
+
+In this situation of things, I have devised and proposed to the
+Delegates of the three Southern States, the following plan. To appoint
+a Receiver of the taxes in each State, agreeably to the Act of
+Congress, and to empower such Receiver to issue notes on the warrants
+of the General, payable in those taxes, or from the amount of them
+when collected. By which means those articles necessary for the
+consumption of the army may be purchased, and the quota of the State
+be thereby paid.
+
+The Delegates of North and South Carolina thought the plan eligible,
+but one of the Delegates of Georgia was disinclined to that part of
+it, which requires the previous passing of a law to raise the quota of
+taxes called for by the United States. I am this morning informed,
+that upon a reconsideration of the matter, a majority of the Delegates
+of South Carolina are also of opinion, that it would be better not to
+make the enacting such a law an indispensable part of the system. I am
+very sorry for this circumstance, because, as all the Delegates from
+the three States mentioned, approve of the plan in other respects, I
+did expect their warm recommendation of it to their respective
+Legislatures; for your Excellency will perceive at a single glance,
+that it originated in the sincere desire of relieving those States,
+and has that relief for its object, as far as the public service of
+the United States will possibly permit.
+
+Those gentlemen who object to making a tax bill the preliminary to any
+issues of the notes, have proposed as an expedient, a law, promising
+the payment of the notes when taxation shall become practicable,
+compelling the receipt of them in payment as specie, and limiting the
+prices of those articles, which the army may want. This is done to
+obviate two objections, which are supposed to be against taxation,
+that the state of the country will not admit of the collection, and
+that those who have no property left but lands, cannot pay the taxes
+without extreme distress.
+
+Before I go into any detailed observations on these subjects, I beg
+leave to state one general reason why I must insist on the tax law,
+even if in other respects I should have no material objections to the
+expedient proposed. As Superintendent of the Finances of the United
+States, it is my duty to urge a compliance with the requisitions of
+Congress, and, therefore, to facilitate that compliance; but I should
+betray the trust reposed in me, if by any expedient whatever, I
+assisted in eluding those requisitions. With me, therefore, the
+propriety of passing the tax bill can admit of no question; and in
+consequence, my orders are precise, to prevent the issue of a single
+note, until such bills shall have been enacted, and effectual
+provision made for the collection.
+
+I shall now take the liberty of trespassing on your patience, with
+some observations as to the two laws proposed. And first, as to the
+expediency of taxing, and the weight of the objections against it.
+When it is considered, that the expenditures of the army, (supposing
+the war to be carried on in the Southern States, must greatly exceed
+the amount of the sums called for from those States,) one position is
+clear, that by complying with the requisitions of Congress, a balance
+of money must necessarily be brought in from the other States, to
+supply the deficiency of the whole revenue in those particular States,
+when compared with the amount of the whole expenditure. But by
+neglecting to comply with the requisitions of Congress, (as it will be
+impossible to supply the army in the same regular manner, which
+prevails elsewhere,) the whole cost of the expenditure will fall in
+the first instance on those who are near the seat of war, subject to a
+future settlement of accounts. Besides which, it is demonstrable, that
+this latter mode of supply, which is at present practised, is very
+wasteful and expensive. Nor is this the only objection, though
+certainly a very strong one. We must further consider, that according
+to the present mode of taking supplies, the burden falls very
+unequally on the inhabitants, and of course, very unjustly. I fear
+that, with truth, it may added, that in some instances, it is attended
+with strong circumstances of distress.
+
+Hence, then, I conclude that the propriety of taxation is evident,
+unless the reasons against it are of weight sufficient to
+counterbalance the inconveniences, which would result from neglecting
+it. I proceed, therefore, to examine them. And first, as to the state
+of the country and the means of collection. It is clear that within
+the enemy's lines, taxes cannot be collected; but out of them, they
+certainly may be. For, surely, it is as easy to compel a man to pay
+money by seizing his property, as it is to seize that property for the
+subsistence of the troops. There is, however, this additional
+advantage in taxing, that those may be compelled to pay, who have not
+articles useful for the army, as well as those who have. The
+objection, that those who have land only will be distressed by the
+sale of it, will have just as much weight as the Legislature may
+choose to give it; for if no taxes are raised on land, the objection
+will vanish, and certainly the Legislature will be in capacity to
+determine whether any tax should be laid on it, and what that tax
+should be.
+
+But, further, it appears that the objection is calculated to favor the
+rich, who are great landholders, in preference to the poor, who labor
+on a small plantation; and how far this may be either wise or just is
+not for me to determine. I will, however, suggest an expedient, that,
+as the taxes are payable quarterly, the first two quarters' tax should
+be raised on the polls, the slaves, and other personal property in the
+State, and the land tax be paid on the last quarterly instalments.
+This will give the several landholders room to turn themselves, so as
+to provide for their several appropriations in season. I will just add
+under this head, that if (as there is some reason to hope) the
+southern States should be totally evacuated, the extension of their
+commerce will soon obviate every objection, which can possibly be in
+the way of taxation.
+
+I must observe further, that those States, which delay the levying of
+taxes to answer present requisitions, will become totally incapable of
+complying with future calls, and consequently, we shall always be
+dealing in doubts and uncertainties, instead of establishing that
+confidence and vigor, which alone can perfect our independence.
+
+I come now to the proposed law for compelling the receipt of the notes
+and regulating the prices of articles. My opinion of all such laws is
+decidedly fixed. I know both from reason and experience, that they
+injure the credit of the paper they appear designed to support. They
+show doubts in the mind of the Legislature, they communicate those
+doubts to the breasts of the people, the credit of the paper is then
+destroyed before it is issued, and all the after operation of the law
+is one continued scene of fraud and iniquity. If, therefore, such tax
+bill shall be passed as will permit issuing the notes in question, I
+entreat, that on no representation, nor for any cause whatever, any
+law be passed making the notes a tender, valuing the price of goods,
+or anything of that sort. I ask for no embargo, no regulations. On the
+contrary, I wish and pray, that the whole detestable tribe of
+restrictions may be done away, and the people be put in possession of
+that freedom, for which they are contending. I have no system of
+finance, except that which results from the plain self-evident
+dictates of moral honesty. Taxation and economy are the two pillars by
+which that system is supported, and if the several States will provide
+the former, I will pledge myself for the latter, as far as my
+abilities will permit.
+
+To return then, Sir, to the plan I have to propose. It is simply this.
+I expect that the Legislature of your State will immediately pass laws
+to collect by the days named, the sums called for from them for the
+service of the year 1782. To facilitate the collection and payment of
+the taxes, I consent to receive the notes signed by the Receiver of
+the continental taxes for your State. If, therefore, the Legislature
+approve of my plan, they will merely add a clause rendering those
+notes receivable by their collectors as specie, in the continental
+taxes. They will, I doubt not, provide the ways and means by which the
+Receiver shall compel the several collectors to pay over whatever
+sums, either of those notes or of hard money, they may have received.
+This will leave it purely optional with the people to take the notes,
+or to let them alone. If the taxes are collected, they must either pay
+those notes or hard money. If they pay hard money, the notes will not
+be necessary. If they pay the notes, the public will already have
+received the value of them, in the articles for which they are first
+paid.
+
+I enclose the form of the notes and the denominations, and I will
+appoint the Receiver of the continental taxes for your State, as soon
+as I can fix on a proper person, and prepare the necessary
+instructions. In the meantime, the law may easily be passed, with a
+clause directing the mode in which the appointment of such Receiver
+shall be announced to the public.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF RHODE ISLAND.
+
+ Office of Finance, December 29th, 1781.
+
+ Sir,
+
+I have been favored with your letter of the 3d of last month, and am
+much obliged to you for the information it contains. There is now
+before Congress, on a report from this office, a plan for liquidating
+and adjusting the accounts of the several States, and I should sooner
+have answered your letter, if I had not expected the pleasure of
+sending forward the Act of Congress on that subject with my letter.
+
+I have no doubt but that the State over which you preside, has made
+great exertions in the common cause, and but for the exertions, which
+have been made, the enemy would long since have been more successful.
+Every State in the Union claims the merit of extraordinary efforts,
+and whose claim is the best, I will not pretend to ascertain; but I
+feel it to be my duty to observe, that nothing but a continuance of
+active exertions on our part can possibly assure those objects, for
+which so much has already been done and suffered. Persuaded that the
+wisdom of your Legislature will feel equally with me the force of this
+observation, I have no doubt but that the requisitions of Congress,
+for the service of the year 1782, will be punctually complied with.
+
+With respect to the impost law, I will not say anything more about it,
+than merely to remind you of what has already been said in former
+letters. The time is hastening on, when it must be determined, perhaps
+forever, whether the United States of North America shall, or shall
+not, possess the inestimable jewel of public credit. In the meantime,
+the conduct of those in public life, as far as it relates to this
+object, must determine whether or not they are really the friends of
+their country. Mr Warren, who is now I suppose with you, will, I doubt
+not, give you every information, which may be required as to the
+situation of our affairs, and his genius and talents will enable him
+to place in a much stronger point of view than any letter from me, the
+importance of complying with the requisitions of the United States. I
+hope, Sir, you will pardon me for adding, that if every State in the
+Union has an equal right with yours to wait until others have
+complied, the Congress may spare themselves the trouble of doing any
+further business, and their constituents may be spared the expense of
+keeping them together. I need not, I am persuaded, go into detail of
+the consequences.
+
+With perfect respect and esteem, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, January 3d, 1782.
+
+ Sir,
+
+Although it is now eleven months since Congress recommended an impost
+of five per cent on goods imported, and on prizes and prize goods, the
+States of Massachusetts, Rhode Island, and Maryland, have not yet
+complied with that recommendation.
+
+I will not repeat the arguments to induce a compliance, which are
+contained, either in my letter of the 27th of July, or elsewhere; that
+is unnecessary. The object of this letter is to make a representation,
+which can no longer be delayed consistently with the duties I owe,
+either to myself, or my country. And although it is principally
+designed for those three States just mentioned, yet I transmit it to
+the other States, (in a letter, of which the copy is enclosed,)
+because all ought to know what is interesting to all.
+
+Convinced that the impost recommended was not sufficient, I had
+devised some additional funds for the payment of our debts, and the
+support of our credit. These I should have submitted to the
+consideration of Congress, had the States complied with their former
+recommendations.
+
+In a circular letter, dated the 19th of October last, I had the honor
+to mention an order prohibiting Loan Officers from issuing
+certificates in payment of interest, together with the reasons for
+which it was made. That order has already produced much clamor among
+the public creditors. This I expected, and I still expect that it will
+occasion much more.
+
+The public debt is considerable, and the public credit must be lost,
+if the interest of it be not provided for. Congress have done their
+duty in requesting revenue, and I have done mine in soliciting a
+compliance with their request. It only remains for me to bear
+testimony against those who oppose that compliance, and to declare,
+that they and they only, must be responsible for the consequences.
+They are answerable to the other States, to their fellow citizens, to
+the public creditors, and to the whole world.
+
+I must speak plainly on this subject. I must point out from time to
+time, the reason of those things, which have produced murmurs and
+complaints against the representative body of America. I must direct
+those who suffer, to those who occasion their sufferings, and those
+who are injured to those who have done them wrong. Let me then once
+more entreat, that this great object be seriously considered. Let me
+repeat, that the hope of our enemy is in the derangement of our
+finances; and let me add, that when revenue is given, that hope must
+cease. He, therefore, who opposes the grant of such revenue, not only
+opposes himself to the dictates of justice, but he labors to continue
+the war, and of consequence to shed more blood, to produce more
+devastation, and to extend and prolong the miseries of mankind.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.[2]
+
+ [2] _January 7th._ This day the National Bank of North America
+ opens to transact business. This institution I am persuaded will
+ flourish under the management of honest men and honest measures.
+ The present directors are such men, and the present system of
+ measures are founded in principles of justice and equity.
+ Therefore, I shall most cheerfully assist all in my power, to
+ establish and support this Bank. And as a beginning, I have this
+ day issued my warrant on the treasury for two hundred thousand
+ dollars in part of the shares, which I have subscribed, on behalf
+ of the public. _Diary_
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, January 8th, 1782.
+
+ Sir,
+
+I have the honor to transmit herewith an ordinance passed by the
+United States in Congress assembled the 31st day of December, 1781,
+incorporating the subscribers of the Bank of North America, together
+with sundry resolutions recommending to the several States to pass
+such laws as they may judge necessary for giving the said ordinance
+its full operation. The resolutions of the 26th of May last speak so
+clearly to the points necessary to be established by those laws, that
+I need not enlarge on them. Should anything more be found necessary
+upon experience, the President and Directors will no doubt make
+suitable applications to Congress, or to the States respectively, as
+the case may require.
+
+It affords me great satisfaction to inform you that this Bank
+commenced its operations yesterday, and I am confident that with
+proper management, it will answer the most sanguine expectations of
+those who befriend the institution. It will facilitate the management
+of the finances of the United States. The several States may, when
+their respective necessities require, and the abilities of the bank
+will permit, derive occasional advantages and accommodations from it.
+It will afford to the individuals of all the States a medium for their
+intercourse with each other, and for the payment of taxes more
+convenient than the precious metals, and equally safe. It will have a
+tendency to increase both the internal and external commerce of North
+America, and undoubtedly will be infinitely useful to all the traders
+of every State in the Union, provided, as I have already said, it is
+conducted on principles of equity, justice, prudence, and economy. The
+present directors bear characters, which cannot fail to inspire
+confidence, and as the corporation is amenable to the laws, power can
+neither sanctify any improper conduct, nor protect the guilty. Under a
+full conviction of these things, I flatter myself, that I shall stand
+excused for recommending in the strongest manner, this well meant
+plan, to all the encouragement and protection, which your State can
+give, consistently with wisdom and justice.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF RHODE ISLAND.
+
+ Office of Finance, January 14th, 1782.
+
+ Sir,
+
+The delegates of Rhode island did me the honor to communicate your
+Excellency's letter of the 24th of last month, directed to them. I
+have carefully considered that letter, and now, agreeably to my
+promise made to them, shall endeavor to convey my sentiments upon it
+to you. You mention, Sir, that the Assembly unanimously concluded,
+that the sum of two hundred and sixteen thousand dollars, called for
+by Congress, to be so large as that it could not by any means be
+raised in specie, and you say, further, that the scarcity of cash has
+become uncommonly great.
+
+By the Acts of Congress on that subject, you will perceive the amount
+of taxes called for by the United States, to be eight millions of
+dollars. I cannot pretend to say, that the apportionment has, or has
+not been equal; but I am persuaded it is as nearly so as the
+information, which could have been obtained, would by any means admit.
+The whole sum, Sir, however large it may appear, is very much short of
+our former annual expenditures; and, I am sorry to add, that it is
+certainly short of what will be necessary, even with the strictest
+economy. I am compelled on this occasion to observe, that the want of
+credit is now materially felt. Other free nations find infinite relief
+from the oppressive weight of taxation by anticipating the public
+revenue; but we, with every advantage from nature to prevent it, are
+obliged to bear now those burdens, which ought, in reason, to be
+divided with succeeding generations. To obtain credit, we must provide
+funds amply sufficient, not only to pay the interest of all former
+debts, both foreign and domestic, but also sufficient to liquidate
+those, which we may find it necessary in future to contract. These
+funds must be permanent, clear, sufficient, and at the disposition of
+Congress. Nothing short of that will answer the purpose.
+
+In the meantime, the interest of our debt is as great as if such funds
+were given; and to pay that interest will cost as much to the people;
+but the complaints from every quarter, until it be provided for, do
+infinite injury. Whereas, if funds were granted, we might from time to
+time obtain loans, both at home and abroad, sufficient to defray a
+great proportion of our annual expenditure. You will easily perceive
+what relief the people would feel from paying the interest instead of
+the principal. As to the want of money, your Legislature must
+consider, that there must always be such want from the very nature of
+things, because nothing gives to money its value, but the universal
+desire of obtaining it; and, of consequence, the ease with which all
+the necessaries, conveniences, and luxuries of life are obtained in
+exchange for it. It is the value of money, which has induced all wise
+nations to raise the supplies in coin, rather than in produce, because
+there is nothing, which so facilitates the economy of public
+resources. And the great object of a wise and just government is, to
+reduce as low as possible the burdens, which the people must bear, for
+their own preservation, safety, and advantage. The want of money
+always has been, and now is complained of throughout the United
+States. This want will, however, be soon remedied in some degree by
+the bank paper; and further, it must be remembered, that as the public
+wants will call for an expenditure faster than the collection of
+taxes will take place, those taxes will by no means decrease the
+general circulating medium, and if that medium be, as is said and as I
+really believe, deficient, commerce will continue, as at present, to
+increase it by the daily importation of specie from abroad.
+
+The taking of specific supplies has, by experience, been found unequal
+to the object, and is extremely wasteful and expensive. Many articles
+produced in the several States, in themselves very valuable, will by
+no means admit of transportation; and even those, which will admit of
+it, can seldom be brought to the place where they must be consumed,
+but at an expense which, in many instances, exceeds the original
+value.
+
+I am convinced, nevertheless, that there is force in your observation,
+on the propriety of expending within the State as much of the revenue
+drawn from it as can consist with the general interest of the Union.
+This, Sir, must, nevertheless, depend in a great degree upon the
+cheapness with which your citizens will furnish such things as the
+public may want. While they industriously make and cheaply vend those
+things, which the necessities of mankind require, they need not
+apprehend a want of money; for as, on the one hand, he will get most
+of a commodity, who will give for it the most money; so, on the other,
+he will get the most money who will give for it the most of a
+commodity. Your honorable delegates inform me, that many articles fit
+for our use, and in particular blankets and woollen stockings, are
+manufactured in your State, and can be afforded to the United States
+on good terms. If so, it is very probable, that not only the revenue
+called for may be expended there, but even a greater sum. I will give
+orders to the Clothier General to make inquiries immediately as to
+the quantities and prices of articles proper for his department in
+your State; and to purchase, if they can be had upon proper terms.
+
+As to making any agreement for specific articles, I cannot undertake
+it, because I have already made contracts for most of the articles,
+which we may want, payable in money; and I am too distant to judge of
+prices; nor is it possible for the human mind in that complicated
+scene, which engrosses every moment of my time, sufficiently to attend
+to such minute details. The business of government must be simplified,
+in order that it may be well conducted, and to do this is with me a
+very principal object. Your Excellency will perceive, that I am
+authorised to appoint a Receiver of the Continental taxes within the
+several States, and I shall make the appointment within your State
+very speedily. I have every disposition to comply with your wishes,
+and will give such instructions to the Receiver, as that he may from
+time to time facilitate the views of the Legislature and lighten the
+burdens of the people, which I sincerely assure your Excellency is an
+object that lies nearest my heart.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, January 15th, 1782
+
+ Sir,
+
+Finding by the Act of the United States in Congress of the 7th
+instant, that I am instructed to prepare and report a table of rates,
+at which the different species of foreign coins most likely to
+circulate within the United States shall be received at the Treasury,
+I have been induced again to turn my attention to an object, which has
+employed my thoughts very frequently, and which would have been long
+since submitted to Congress, had I not been prevented by other
+business, and much delayed by those things relating to this business,
+which depended upon others. I shall now pray leave to deliver my
+sentiments somewhat at large on this subject.
+
+The United States labor under many inconveniences and even
+disadvantages which may at present be remedied, but which, if suffered
+to continue, would become incurable, and lead to pernicious
+consequences. It is very fortunate for us, that the weights and
+measures used throughout America are the same. Experience has shown in
+other countries, that the efforts of the legislator to change weights
+and measures, although fully seconded by the more enlightened part of
+the community, have been so strongly opposed by the popular habits and
+prejudices, that ages have elapsed without producing the desired
+effect. I repeat, therefore, that it is happy for us to have
+throughout the Union the same ideas of a mile and an inch, a hogshead
+and a quart, a pound and an ounce. So far our commercial dealings are
+simplified and brought down to the level of every capacity.
+
+With respect to our money, the case is very widely different. The
+ideas annexed to a pound, a shilling, and a penny, are almost as
+various as the States themselves. Calculations are, therefore, as
+necessary for our inland commerce as upon foreign exchanges. And the
+commonest things become intricate where money has anything to do with
+them. A farmer in New Hampshire, for instance, can readily form an
+idea of a bushel of wheat in South Carolina, weighing sixty pounds,
+and placed at one hundred miles from Charleston; but, if he were told,
+that in such situation it is worth twentyone shillings and eight
+pence, he would be obliged to make many inquiries, and form some
+calculations before he could know that this sum meant in general what
+he would call four shillings; and even then he would have to inquire
+what kind of coin that four shillings was paid in, before he could
+estimate it in his own mind, according to the ideas of money, which he
+had imbibed. Difficulties of this sort do not occur to farmers alone.
+They are perplexing to most men, and troublesome to all. It is,
+however, a fortunate circumstance, that money is so much in the power
+of the Sovereign, as that he can easily lead the people into new ideas
+of it; and even if that were not the case, yet the loose state in
+which our currency has been for some years past, has opened the way
+for receiving any impressions on that subject.
+
+As we are now shaking off the inconveniences of a depreciating medium,
+the present moment seems to be that, in which a general currency can
+best be established, so as that in a few months, the same names of
+money will mean the same things in the several parts of the United
+States.
+
+Another inconvenience, which admits of the same easy remedy, and which
+would indeed be cured by the very same Act, is the want of a legal
+tender. This is as necessary for the purposes of jurisprudence, as a
+general currency is for those of commerce. For although there is great
+impropriety, not to say injustice, in compelling a man to receive a
+part of his debt in discharge of the whole, yet it is both just and
+proper, that the law should protect the honest debtor, who is willing
+to pay, against the vexatious suits of an oppressive creditor, who
+refuses to receive the full value.
+
+The nature, value, and use of money have always occasioned strong
+temptations to the commission of fraud, and of consequence, the
+practice of counterfeiting is coeval with that of coining. No
+government can guard its subject entirely against the wicked
+ingenuity, which has been exercised in this respect. But it has always
+been the object of every wise government to take all the precautions
+against it, which are within the compass of human ability. These
+precautions will be least effectual where the coins are so numerous,
+that the knowledge of them being a kind of science, the lower order of
+citizens are constantly injured by those who carry on the business of
+debasing, sweating, clipping, counterfeiting, and the like. It is,
+therefore, to be lamented, that we have so many different coins in the
+United States.
+
+It is not necessary to mention what is in everybody's mouth, that the
+precious metals were first used as bullion, and that the inconvenience
+of weighing, and the difficulty of assaying introduced the practice of
+coining, in order that the weight and fineness, might be known at the
+first view, and of consequence, the value be instantly ascertained. It
+is equally unnecessary to observe, that the great privilege of
+declaring this value by particular marks has, among all nations, been
+vested exclusively in the Sovereign. A trust so important could not
+indeed be vested anywhere else; because the danger of abusing it was
+too great. And history informs us, that Sovereigns themselves have
+not on this occasion behaved with that integrity, which was alike due
+to their subjects and to themselves, to the interests of their people
+and their own personal glory.
+
+Experience has already told us, that the advantage of gold as a coin
+is in this country very considerably diminished, for every distinct
+piece must be weighed before it can be safely received. Both gold and
+silver coins are indeed preferable in one respect to common bullion,
+that the standard is presumed to be just, and consequently, they are
+received without the delays and expenses of assaying. It must,
+however, be remembered, that they are all foreign coins, and of
+course, we are not only exposed to the tricks of individuals, but
+should it suit the interest or convenience of any Sovereign to make
+base money for us, there is nothing to prevent it. If, for instance,
+the King of England, or any of his Birmingham artists, should coin
+guineas worth but sixteen shillings sterling, our citizens would
+readily and freely receive them at twentyone shillings sterling. It is
+my duty to mention to Congress information I have received, that
+guineas of base metal are coined at Birmingham so well as to escape
+any common attention. Now there can be no doubt, that every such
+guinea received here would be a national loss to us of an English
+crown. How much we suffer in this way at present it is impossible, to
+estimate.
+
+What I have already had the honor to observe contains some of the
+reasons why it appears to me highly necessary, that an American coin
+should be adopted without delay, and to these reasons it may be
+added, that there is a want of small money for the common occasions of
+trade, or that it is more felt by our soldiery than any other persons.
+For the little pay, which they do receive, being either in gold or at
+best in dollars, the sutlers and others with whom they have dealings,
+continually take the advantage of their want of change, and rate the
+prices of their goods accordingly.
+
+Shortly after my appointment, finding that there was a considerable
+quantity of public copper at Boston, I ordered it round to this place.
+It has safely arrived, and will when coined amount to a considerable
+sum. The necessary machinery of a mint can be easily made, and there
+are persons who can perform the whole business. I must pray leave,
+therefore, to submit to Congress some few more particular remarks on
+this subject, as introductory to a plan for an American coin.
+
+Although most nations have coined copper, yet that metal is so impure,
+that it has never been considered as constituting the money standard.
+This is affixed to the two precious metals, because they alone will
+admit of having their intrinsic value precisely ascertained. But
+nations differ very much in the relation they have established between
+gold and silver. In some European countries an ounce of pure gold
+passes for fifteen ounces of pure silver. In others for fourteen. In
+China it passes for much less. The standard, therefore, which is
+affixed to both metals is in reality affixed to neither. In England,
+gold is to silver nearly in that proportion of one to fifteen, and in
+France nearly of one to fourteen. If a man carries fourteen ounces of
+gold from France to England he receives two hundred and ten ounces of
+silver, which in France purchases fifteen ounces of gold. In like
+manner he who carries from England fourteen ounces of silver to France
+receives one ounce of gold, which in England purchases fifteen ounces
+of silver. If it be, then, supposed that the coins of these two
+countries were alike pure, it must follow that in a short time all the
+gold coin of full weight would be in England, and all the silver coin
+of full weight in France. But the light silver circulating in England,
+and the light gold in France, the real standard of coin in each would
+be different from the legal, and seek a medium of fourteen and a half
+of silver for one of gold, although the legal standard might still be
+in the one place fifteen and in the other fourteen.
+
+The demand which commerce might make for any of the precious metals,
+in preference of the other, would vary this real standard from time to
+time, and in every payment a man would get more or less of real value
+for his debt, according as he was paid in the coin of greater or less
+value, in relation to the real standard. If, for instance, the debt
+were contracted when the silver was to gold as one to fifteen, and
+paid when as one to fourteen; if the debt were paid in silver he would
+gain one thirtieth, and if in gold he would lose one thirtieth. In
+England the money standard is rather affixed to gold than to silver,
+because all payments are made in the former; and in France it is
+rather affixed to silver than to gold.
+
+Arguments are unnecessary to show, that the scale by which everything
+is to be measured ought to be as fixed as the nature of things will
+admit of. Since, therefore, a money standard affixed to both the
+precious metals will not give this certain scale, it is better to make
+use of one only. Gold is more valuable than silver, and so far must
+have the preference. But it is from that very circumstance the more
+exposed to fraudulent practices. Its value rendering it more portable
+is an advantage, but it is an advantage, which paper possesses in a
+much greater degree, and of consequence the commercial nation of
+England has had recourse to paper for the purposes of its trade,
+although the mass of circulating coin is gold. It will always be in
+our power to carry a paper circulation to every proper extent. There
+can be no doubt, therefore, that our money standard ought to be
+affixed to silver.
+
+But silver is liable, like everything else, to a change of value. If
+there is a demand for it to export, the value will rise; if the
+contrary it will fall; and so far it cannot be considered as a fixed
+measure of value. Before this objection be considered it will be
+proper to make a few reflections on another part of the present
+subject; but in this place I remark, that if the objection cannot be
+removed, we must not suffer it to be preponderate, because it weighs
+alike against every other metal.
+
+To coin money is a certain expense, and of course it is an expense,
+which must be borne by the people. In England the coin when melted
+will sell as bullion for just as much as its weight in other coin. The
+expense of coinage is paid by the Crown, and of course is raised by
+taxes from the people. In France the coinage instead of being
+expensive yields a profit. The price given for metal at the mint is
+about eight per cent less than the same quantity will yield when
+coined at the French standard. Both of these methods are liable to
+objections. When commerce demands an exportation of bullion from
+England, the coin of the kingdom goes out in common with others. This
+increases, of course, the national expense of coinage. Laws to prevent
+the exportation, or importation of any thing so valuable as money are
+always nugatory, because they always _can_ be eluded, and therefore
+when private interest requires it they always _will_ be eluded. That
+the guineas of England, therefore, are not continually going away is
+to be attributed to the extraordinary value affixed to gold, which has
+just been mentioned, and which banishes silver continually. In France
+the people are not liable to this inconvenience, because their money
+passing for more than its value in bullion, bullion will always be
+exported in preference to coin. But, for the same reason, there is
+always a strong temptation to imitate their coin and send it for the
+purchase of their commodities. It would be both impossible and
+unnecessary to distinguish the true from the false, because both would
+be of equal intrinsic value. The place at which they were struck would
+be indifferent to the receiver. Of consequence, the foreigner who made
+French coin, would gain; by his trade, and the French nation would
+lose proportionably.
+
+The money paid for coining, or the coinage of France has, however,
+this advantage, that the money is a standard, which does not fluctuate
+with the price of bullion. This coinage is, as has been said, about
+eight per cent. When bullion is below ninetytwo, it is carried to the
+mint; when above ninetytwo, to the broker, or the silversmith. The
+coin still continues fixed, nor will it bear exportation until bullion
+rises to a hundred, when the French coin would be as liable to
+exportation as the English. In that case, it would be exported on one
+hand, while on the other no more would have been coined for a
+considerable period, because to make the eight percent coinage, it
+would be necessary that the mint price should be ninetytwo. The coin,
+therefore, could not long be exported, if at all, but would resume its
+value. The price of bullion must float between ninetytwo and a
+hundred, while the coin would preserve its fixed quality as money.
+
+Hence then, it appears proper, that the price of coining should be
+defrayed by the coinage; because, first, it is natural and proper,
+that the price should be paid when the benefit is received, and that
+the citizen in return for the advantage of being ascertained in the
+value of the medium of commerce by the sovereign, should pay for
+ascertaining it, just as much as that he should pay for the fashion of
+the plate he uses, or the construction of the cart he employs.
+Secondly, it is right that money should acquire a value as money,
+distinct from that which it possesses as a commodity, in order that it
+should be a fixed rule, whereby to measure the value of all other
+things. And thirdly, it is wise to prevent the exportation of coin,
+which would involve an unnecessary national expense, and also to
+prevent the imitation of it abroad, so as to create a national loss.
+For both of which purposes, it is proper that the coinage should only
+defray the expense, without making any considerable profit. The laws
+usual in all countries, with respect to the money, will then fully
+operate the effect intended.
+
+In order that a coin may be perfectly intelligible to the whole
+people, it must have some affinity to the former currency. This,
+therefore, will be requisite in the present case. The purposes of
+commerce require, that the lowest divisible point of money, or what is
+more properly called the _money unit_, should be very small, because
+by that means, price can be brought in the smallest things to bear a
+proportion to the value. And although it is not absolutely necessary,
+yet it is very desirable, that money should be increased in decimal
+ratio, because by that means all calculations of interest, exchange,
+insurance, and the like, are rendered much more simple and accurate,
+and of course, more within the power of the great mass of the people.
+Wherever such things require much labor, time, and reflection, the
+greater number who do not know, are made the dupes of the smaller
+number who do.
+
+The various coins which have circulated in America, have undergone
+different changes in their value, so that there is hardly any which
+can be considered as a general standard, unless it be Spanish dollars.
+These pass in Georgia at five shillings, in North Carolina and New
+York at eight shillings, in Virginia and the four Eastern States at
+six shillings, and in all the other States, excepting South Carolina,
+at seven shillings and sixpence, and in South Carolina at thirtytwo
+shillings and sixpence. The money unit of a new coin to agree, without
+a fraction, with all these different values of a dollar, excepting the
+last, will be the fourteen hundred and fortieth part of a dollar,
+equal to the sixteen hundredth part of a crown. Of these units,
+twentyfour will be a penny of Georgia, fifteen will be a penny of
+North Carolina or New York, twenty will be a penny of Virginia and the
+Four Eastern States, sixteen will be a penny of all the other States,
+excepting South Carolina, and fortyeight will be thirteen pence of
+South Carolina.
+
+It has already been observed, that to have the money unit very small,
+is advantageous to commerce; but there is no necessity that this money
+unit be exactly represented in coin, it is sufficient that its value
+be precisely known. On the present occasion, two copper coins will be
+proper, the one of eight units, and the other of five. These may be
+called an Eight, and a Five. Two of the former will make a penny
+Proclamation, or Pennsylvania money, and three a penny Georgia money.
+Of the latter, three will make a penny New York money, and four a
+penny lawful, or Virginia money. The money unit will be equal to a
+quarter of a grain of fine silver in coined money. Proceeding thence
+in a decimal ratio, one hundred would be the lowest silver coin, and
+might be called a _Cent_. It would contain twentyfive grains of fine
+silver, to which may be added two grains of copper, and the whole
+would weigh one pennyweight and three grains. Five of these would make
+a _Quint_, or five hundred units, weighing five pennyweight and
+fifteen grains; and ten would make a _Mark_, or one thousand units,
+weighing eleven pennyweight and six grains.
+
+If the mint price of fine silver be established at twentytwo thousand
+two hundred and thirtyseven units per pound, this being coined would
+be four times five thousand seven hundred and sixty grains, or
+twentythree thousand and forty units. The difference is eight hundred
+and three units, and therefore the coinage is eight hundred and three,
+or twentythree thousand and forty, or somewhat more than three
+fortyeight one hundred per cent, which would be about the expense
+attending it. A dollar contains by the assays, which I have been able
+to get, about three hundred and seventythree grains of fine silver,
+and that at the mint price would be fourteen hundred and forty units.
+In like manner, if crowns contain from four hundred and fourteen to
+four hundred and fifteen grains of fine silver, they would, at the
+mint price, be worth sixteen hundred units.
+
+When such a coin shall have been established, the value of all others
+would be easily ascertained, because nothing more would be necessary
+than to have them assayed at the mint. The advantage of possessing
+legal money, in preference of any other, would induce people to carry
+foreign coin to the mint, until a sufficiency were struck for the
+circulating medium. The remainder of the foreign silver, together with
+the gold, should be left entirely to the operations of commerce as
+bullion.
+
+In the present moment, it is by no means of such consequence to
+establish the relative value of different coins, as to provide a
+standard of our own, by which in future to estimate them. If the value
+were now sought, they must all be estimated in dollars, because
+dollars are called for in the several requisitions of Congress.
+Without noticing the preference thus given of one coin over another,
+it is sufficient to observe, that if a greater alloy should be
+introduced by the Spanish government into their dollars, our interior
+regulations as to money would be overturned; and certainly we have no
+security that this will not happen. There is not any great
+inconvenience in leaving matters on their present footing, until they
+can be remedied by the operations of a mint; for it is not to be
+supposed that all the money raised by taxes in a State is to be
+brought out of it. I expect that there will be very little occasion
+to transport money from place to place. It is much easier to negotiate
+than to carry it; and if any species of money is generally received
+within a State at the same rate in which it is paid in taxes, there
+will be no difficulty in expending it at its value. Whenever money
+shall be struck by authority of the United States, then indeed it will
+be proper to receive in taxes no other coin.
+
+If Congress are of opinion with me, that it will be proper to coin
+money, I will immediately obey their orders and establish a mint. And
+I think I can say with safety, that no better moment could be chosen
+for the purpose than the present; neither will anything have a greater
+tendency to restore public credit; for although it is possible that
+the new money will at first be received with diffidence by some, yet
+when it has been fairly assayed, it will gain full confidence from
+all, and the advantage of holding the only money, which can pay debts
+or discharge taxes, will soon give it the preference over all, and
+indeed banish all other from circulation. Whereas fixing a relation of
+value now on whatever principles attempted, might give offence to the
+power whose coin should, in any instance, be reduced from its present
+numerary value among us.
+
+These sentiments are submitted, with all possible deference, to the
+United States in Congress assembled, in expectation of their further
+instructions on the subject.
+
+ With great respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.[3]
+
+ Philadelphia, January 25th, 1782.
+
+ Sir,
+
+I have received your favor of the 23d respecting Captain Hutchins, and
+shall give you a more definitive answer after I have seen that
+gentleman.
+
+ [3] _January 26th._ In consequence of the information received
+ from Mr Thomas Paine, of the intentions of some officers to
+ promote a general application by way of memorial to General
+ Washington, respecting their pay, I sent for him and had a long
+ conversation on various matters of a public nature. He observed,
+ that his services to the public had rather been neglected. I told
+ him I could wish his pen to be wielded in aid of such measures, as
+ I might be able to convince him were clearly calculated for the
+ service of the United States; that I had no views or plans but
+ what were meant for the public good, and that I should ask no
+ man's assistance on any other ground; that it was true I had
+ nothing in my power at present to offer, as a compensation for his
+ services, but that something might turn up, and that I should have
+ him in my mind.--_Diary._
+
+ * * * * *
+
+ The following record is also contained among Mr Morris's papers,
+ in his own hand writing, dated February, 1782.
+
+ "Having lately had several meetings with Mr Thomas Paine, the
+ writer of a pamphlet, styled _Common Sense_, and of many other
+ well known political pieces, which, in the opinion of many
+ respectable characters have been of service to the cause of
+ America, I thought this gentleman might become far more
+ serviceable to the United States by being engaged to write in the
+ public newspapers in support of the measures of Congress and their
+ Ministers. My assistant, Mr Gouverneur Morris, is clearly of the
+ same opinion, and in all our conferences with him, we have
+ pointedly declared, that we sought the aid of his pen only in
+ support of upright measures and a faithful administration in the
+ service of our country. We disclaim private or partial views,
+ selfish schemes or plans of any and every kind. We wish to draw
+ the resources and powers of the country into action. We wish to
+ bring into the field an army equal to the object for which we are
+ at war. We wish to feed, clothe, move, and pay that army as they
+ ought to be done, but we wish also to effect these on such terms
+ as may be least burdensome to the people, at the same time that
+ the operations shall be every way effective.
+
+ "Having these for our objects we want the aid of an able pen to
+ urge the Legislatures of the several States to grant sufficient
+ taxes; to grant those taxes separate and distinct from those
+ levied for State purposes; to put such taxes, or rather the money
+ arising from them, in the power of Congress, from the moment of
+ collection;
+
+ "To grant permanent revenues for discharging the interest on debts
+ already contracted, or that may be contracted;
+
+ "To extend by a new confederation the powers of Congress, so that
+ they may be competent to the government of the United States and
+ the management of their affairs;
+
+ "To prepare the minds of the people for such restraints and such
+ taxes and imposts, as are absolutely necessary for their own
+ welfare;
+
+ "To comment from time to time on military transactions, so as to
+ place in a proper point of view the bravery, good conduct, and
+ soldiership of our officers and troops, when they deserve
+ applause, and to do the same on such conduct of such civil
+ officers or citizens, as act conspicuously for the service of
+ their country.
+
+ "Finding Mr Paine well disposed to the undertaking, and observing
+ that General Washington had twice in my company expressed his
+ wishes, that some provision could be made for that gentleman, I
+ took an opportunity to explain my design to the General, who
+ agreed entirely in the plan. I then communicated the same to Mr
+ Robert R. Livingston, Secretary of Foreign Affairs, and proposed
+ that he should join me in this business, by furnishing from his
+ department such intelligence, as might be necessary from time to
+ time to answer such useful purposes for which Mr Paine is to
+ write; and in order to reward this gentleman for his labors, and
+ enable him to devote his time to the service of the United States,
+ it was agreed to allow him eight hundred dollars a year, to be
+ paid quarterly. But it was also agreed, that this allowance should
+ not be known to any other persons than those already mentioned,
+ lest the publications might lose their force if it were known that
+ the author is paid for them by government."
+
+By a letter, which General Lincoln addressed, to me before he went to
+the eastward, I find that you approve of my plan of sending officers
+to the four New England States particularly, with the returns of their
+deficiencies of troops, and with instructions to attend upon the
+Legislatures, and to endeavor to impress them with the expediency, and
+indeed necessity, of filling their battalions previous to the opening
+of the campaign. He informed me also, that you would be glad to give
+the same officers some instructions relative to the business of your
+department. If so, I could wish you would have your letters ready to
+go by the next post, by which time I expect to have the returns
+prepared. I have not yet fixed upon the gentlemen who will be proper,
+but you can leave blanks for the insertion of the names of those who
+may be chosen.
+
+As we may reasonably expect to hear soon again from Sir Henry Clinton,
+on the subject of the meeting of commissioners, I think it would be
+well to be preparing the substance of the powers to be delegated to
+the gentlemen to whom the transaction of the proposed business will be
+committed. What I would wish you to prepare particularly, is so much
+as will relate to the liquidation of the former accounts of prisoners,
+and making provision for their maintenance in future.
+
+ I have the honor to be, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, February 11th, 1782.
+
+ Sir,
+
+The situation of my department makes it necessary to lay some matters
+of importance before the United States in Congress, and I shall
+endeavor to do so with as much precision, as possible.
+
+It gives me pain to observe, that the States of Massachusetts, Rhode
+Island, and Maryland, have not yet passed the laws recommended by the
+resolutions of the third of February, 1781. I learn, (though not
+officially,) that the State of Virginia has lately suspended the
+operation of the law, which they had passed in conformity to that
+resolution. The bare mention of these things is sufficient to mark the
+consequences. Our debt being unfunded and unprovided for, the interest
+cannot be paid. Those, therefore, who trusted us in the hour of
+distress, are defrauded. To expect that, under such circumstances,
+others will confide in the government, would be folly; and to expect
+that foreigners will trust a government, which has no credit with its
+own citizens, would be madness. The whole weight, therefore, of the
+war must be borne in the present moment; and even the slightest
+anticipations of revenue are made on the personal credit of the
+Minister.
+
+This, Sir, is not said boastingly, but with unaffected concern. I have
+labored to establish a credit for my country, that when the period
+should arrive, (and I hoped it was not far distant,) in which I could
+lay down the burden now pressing upon me, my successor in office
+should have no other difficulties to struggle with, than those which
+necessarily attend an extensive and complicated administration. It is,
+therefore, with no common degree of anxiety and distress, that I see
+my wishes frustrated. I feel as an American for my country, as a
+public servant for the interest and honor of those whom I serve, and
+as a man, that I cannot enjoy the ease and tranquillity I have sought
+for through a life of continual care and unremitted labor. It is my
+duty to mention to you the fact, and to apprize you, that in such
+circumstances, our operations will continue to be desultory efforts of
+individual power, rather than the combined exertion of political
+strength and firmness.
+
+The repeated assurances we daily receive from the Ministers of his
+Most Christian Majesty, of their steady determination to grant no
+further pecuniary aid, will not leave room to doubt of their
+intentions. I candidly acknowledge that I had formed not only hopes,
+but even expectations from that quarter. For I had persuaded myself,
+that when the brilliant successes of the last campaign should be
+known, and when it should also be known how much the United States are
+capable of, and how necessary an aid of money is to call their power
+into action, the King would have again extended that relief, which
+must be most beneficial to the common cause. Even now, I shall request
+that Congress will instruct the Secretary of Foreign Affairs to make
+the most pointed representations on this subject through our Minister
+at the Court of Versailles, and I shall readily furnish all such
+materials in my department as may be necessary for the purpose; but I
+must not conceal my doubts as to the effect of such representations.
+Duty to this country requires that they should be made, but prudence
+forbids a reliance on their success, and will dictate to us a farther
+duty, which is, to act under the influence of a belief, that they will
+not succeed.
+
+As to hopes of pecuniary aid from any other quarter, the delusion has
+already passed away. It is in vain that expensive establishments are
+kept up to solicit succor from Spain, who appears neither able nor
+willing to afford it; from Holland, who seeks peace and not to
+increase the causes of war; or from Russia, who seems more inclined
+to crush, than to support us. Let us apply to borrow wherever we may,
+our mouths will always be stopped by the one word, security. The
+States will not give revenue for the purpose, and the United States
+have nothing to give but a general national promise, of which their
+enemies loudly charge them with the violation.
+
+Thus, Sir, compelled, however reluctantly, to look at home for the
+means of supporting ourselves against an enemy, whose power has rather
+increased with the increase of her foes, whose force has risen
+superior to defeats, and has found resources in a situation, which
+might have inspired despair, we must no longer rely on those who may
+neglect us, but take care that we be not charged with neglecting
+ourselves. I would to God, that I could say, that there were even the
+appearances of general vigor and exertion. But the truth is very
+different. The United States have called for eight millions of dollars
+early in November last, of which the first quarterly payment was to
+have been made on the 1st day of April next; but I cannot find that a
+single State has yet laid the taxes. I neither know what they will
+think proper to give, nor when. Happy to experience a momentary relief
+from the clamor and revolt of a starving army, from the rage and
+devastation of an inveterate enemy, and from the waste and
+extravagance of cumbrous, unwieldy departments, there appears to be no
+solicitude anywhere for the support of arrangements, on which the
+salvation of our country depends.
+
+To give a little time for the people to breathe, and to remedy some of
+the many abuses, which were equally palpable and enormous, I early
+ventured on the business of contracting, and I have extended it as far
+as prudence would in any degree justify. Nay, relying on the States
+for support, I have made engagements, which, in almost any other
+circumstances, would savor of temerity, and which nothing would have
+led me to do, but a hope that by retrenching expenses, they would be
+sooner induced to grant revenue. So thoroughly am I convinced of the
+superior economy, which attends the present mode of supplying our
+armies, that I would have offered contracts for the southern
+department, could I have formed any well grounded expectation of
+moneys sufficient for the purpose from the southern States. Nor should
+I have been deterred even by the distance of the period at which it
+could be had, if I could have formed a reasonable reliance on it at
+some certain period. Our expenses, it is true, are retrenched, and to
+give an idea to what degree, I will mention, that for the amount of
+salaries alone in the Commissary's department to the northward of
+Potomac river, between three and four thousand soldiers are now fed
+with full rations. But though the retrenchments are great, the
+expenses are great also, and they must rapidly increase every moment
+in preparing for an early and vigorous campaign.
+
+A view either of general politics or of our own situation will impress
+the conviction, that we ought to make an early and vigorous campaign.
+The blow, which the enemy have received in Virginia, should be
+followed as soon as possible before they have time for reflection, for
+reinforcement, or for defence. We must not imagine that Great Britain
+will be so stunned by this blow that she cannot recover, or that she
+will, for such a check, abandon the object both of her interest and
+her wishes, an object in which national importance appears to be
+combined with her national existence, and where every covetous and
+angry passion is strongly excited. What aid she may find from foreign
+powers must depend upon the manner of considering the propositions,
+which may be made, perhaps upon their interests, and, perhaps, upon
+their caprice. A nation, which can hold at bay one half the force of
+Europe, is by no means a despicable ally.
+
+But whether she gets aid from others, or whether she draws it, as
+before, from domestic credit and confidence, this, at least, is
+certain, that we ought to expect new efforts against us, and that we
+ought not to expect any in our favor. If then, we can strike before
+she is ready to ward off the stroke, or bear the blow, our own people
+will be animated, the doubtful will be convinced, and the convinced
+will be confirmed. Nations, who are friendly to us, will give marks of
+amity. Nations, who are hostile, will be deterred from their attempts.
+The councils of our enemy will be distracted. Their intended succors
+may land on hostile ground, and where they want relief, it may be too
+late to obtain it. At what point, and in what manner, and for what
+purpose our efforts are to be made, is the province of the General to
+determine; but, I repeat again, it is our indispensable duty to put
+him speedily in possession of the means.
+
+In order that anything effectual may be done, we must have both men
+and money, and we must have them early. On the 10th of December last,
+Congress were pleased to call on the States in the most pressing
+manner, to have their respective quotas in the field by the 1st day of
+March next; and they determined, that recruits should be raised to
+complete the quotas at the expense of the States, in the first
+instance to be reimbursed by the United States. The intention of
+these resolutions, however clear, may be misunderstood, and attempts
+made to deduct the expenditures of the recruiting service from the
+supplies, which were required by the Acts of the 30th of October and
+3d of November. For this reason, and also that the States may be more
+effectually stimulated to comply with the views and wishes of
+Congress, I shall, before I close this letter, submit certain
+additions and explanations of their Act of the 10th of December. At
+present, I shall only observe, that it gives me very sincere pleasure
+to find the United States in Congress, so fully impressed with the
+necessity of early efforts. This circumstance leads me to hope that
+they will be equally impressed with the duty of urging a compliance
+with their requisitions. It is at least my duty to suggest it. A duty,
+which I owe to America at large, and which no hope of praise, or
+apprehension of blame, shall induce me to neglect. I know there is a
+delicacy, which influences some minds to treat the States with
+tenderness and even adulation, while they are in the habitual
+inattention to the calls of national interest and honor. I know that
+delicacy, and I disclaim it. Nor will I be deterred from waking those
+who slumber on the brink of ruin. But my voice, Sir, is feeble, and I
+must therefore pray to be assisted by the voice of the United States
+in Congress. Supported by them, I may, perhaps, do something; but,
+without that support, I must be a useless incumbrance.
+
+It is also a duty to economise the moneys which are in our possession,
+and it receives a double force of obligation from the peculiarity of
+our circumstances. What moneys the States may grant, and when they may
+grant them, is known only to Him who knoweth all things; but that
+which we have is certain, and ought not to be expended but for useful
+purposes. If we look back to the conduct of the several States in
+former times, we shall find that the negligence with which they have
+treated the requests of Congress has been unequalled, unless by the
+earnestness of entreaty, with which those requests were made. And I
+fear that there is little hope, that the conduct now to be pursued
+will in one instant become the counter part of former experiences. We
+have reason to apprehend a continuance of that shameful negligence,
+which has marked us to a proverb, while all Europe gazed in
+astonishment at the unparalleled boldness and vastness of claims,
+blended with an unparalleled indolence, and imbecility of conduct. But
+let the several States be ever so negligent, the confederation has
+given no power to compel. While it confers on Congress the privilege
+of asking everything, it has secured to each State the prerogative of
+granting nothing. Since, then, the Congress cannot compel the States
+to make a grant of money, they must at least take care to prevent the
+States from making an unnecessary expenditure of those moneys, which
+are in our possession. Nor is this all. We are called on by the
+principles of justice as well as of duty to prevent such expenditure.
+
+The requisitions of Congress have been for men and money. The States
+have furnished officers and transmitted a variety of accounts, demands
+and complaints; but while officers continue numerous they have
+neglected to provide soldiers. Instead of it, some of them have formed
+State regiments, and given State bounties to all those regiments;
+regiments confined to the limits of the State, as if the ultimate
+object of military employment were the show of parade, or to consume
+the fruits of the earth. In the meantime, the continental officers,
+whose services have entitled them to respectful attention, and whose
+experience has enabled them to be essentially useful, are left without
+men to command, and forced to bear the mortification which must
+afflict every generous mind, perceiving themselves a useless burden to
+the community.
+
+But while such pains are taken to enhance expense, every request for
+revenue to pay it is treated with neglect. Congress have determined to
+keep up the establishment agreed on in October, 1780. I shall,
+therefore, by no means propose any reduction. On the contrary I am
+persuaded, that nothing would so speedily terminate the war as the
+bringing such an army into the field, with proper funds and materials
+for its support and operation. This would render us truly independent,
+independent of the smiles of our friends and the frowns of our
+enemies. But although I will not propose any reduction of our
+establishment, I cannot consent that the Union bear the expense of a
+great number of officers without men to command. Neither will I
+propose the expedient of sending them home upon half pay, and liable
+to be called into service. This is an expedient for halving a
+difficulty, which ought to be wholly cured, and at the same time it
+subjects the individual officer to very serious difficulties, which he
+has by no means merited. It is not the officer's fault that he has not
+men, and while he holds himself in readiness to obey the orders of his
+General, he ought to receive that compensation which his commission
+entitles him to. He ought, therefore, to draw his full pay and
+subsistence; but until the State provide men for him to command, that
+pay and subsistence should be drawn from the States. If the States
+will not find soldiers, the continent ought not to pay their officers.
+It is unequal and it is unjust. Some States at a great expense, bring
+men into the field and lay taxes for the general support. Others send
+officers without men, and draw money from the treasury without putting
+any in it. I am regardless where the censure lights. If it fall
+nowhere, then all are innocent; but if it is merited, those to whom it
+applies must blame their own misconduct. My justification is already
+made in the mind of every honest man.
+
+But it is not only necessary that the States bring men into the field.
+It is necessary that this be done at an early period. Recruits which
+do not join the army until the autumn, come too late for anything but
+to increase expense, and to lose their lives by the diseases incident
+at that season, to those who have not been accustomed to the habits of
+a military life. Nor is this all. Recruits sent forward at a late
+period only serve to fill up the vacancies occasioned by sickness,
+deaths, and desertions, without increasing the effective force of the
+army.
+
+To remedy the evils which have been pointed out, I take the liberty to
+propose to the United States in Congress assembled, a resolution,
+
+That on the 1st day of April next, accurate returns be made to the War
+Office of every non-commissioned officer and private in the army, and
+of the particular State to which they belong.
+
+That every State be debited in account for the recruiting service for
+every non-commissioned officer and private, assigned to such State
+respectively in October, 1780, the sum of one hundred dollars in
+specie.
+
+That every State be credited in the said account for the recruiting
+service for every non-commissioned officer and private in the army,
+and belonging to the States respectively on the said 1st day of April
+next, a like sum of one hundred dollars.
+
+That for every recruit which shall join after the 1st day of April and
+before the 2d day of May, the State shall be credited in the said
+account ninety dollars. For every recruit which shall join after the
+1st day of May and before the 2d day of June eighty dollars. For every
+recruit after the 1st day of June and before the 2d day of July
+seventy dollars. For every recruit after the 1st day of July and
+before the 2d day of August sixty dollars. For every recruit after the
+1st day of August and before the 2d day of September fifty dollars.
+For every recruit after the 1st day of September and before the 2d day
+of October forty dollars. But that no allowance be made for any
+recruit whose period of enlistment shall be less than three years or
+during the war.
+
+That every recruit shall be considered as joined, as soon as he shall
+march for the place to which he is ordered on service, from the place
+of general rendezvous within the State, to be appointed by the
+Commander in Chief.
+
+That to determine such time of marching, the time of arrival shall be
+determined and a time allowed for marching thither, calculating on the
+distance at the rate of fifteen miles per day.
+
+That the recruits be maintained at the expense of the States, until
+they shall join as aforesaid; but that during the time of marching an
+allowance be made to the State for each officer and man, at the rate
+of one sixtieth of a dollar per mile for every mile from the said
+place of rendezvous to the place where they shall arrive as aforesaid.
+
+That the Minister of War cause the several men of the different State
+lines to be arranged within their respective lines, in such manner as
+to form complete corps, or parts of corps, so that there be a due
+proportion of men to the officers according to the establishment as
+near as may be.
+
+That the remaining officers, excepting such as the Commander in Chief
+may think proper to retain in service for particular purposes, retire
+to their respective States until such times as the States shall
+provide men for them to command agreeably to the establishment; and
+that in the meantime the said States provide the pay, rations, and
+forage allowed to the officers respectively by the several resolutions
+and Acts of Congress upon that subject.
+
+And in order to explain fully the reasons for taking such measures I
+would also propose, that an address be prepared to the people of
+America stating the want of power in Congress to take measures for the
+defence of the country, the conduct of the several States heretofore,
+the importance of making exertions in the present moment, with the
+dangerous consequences of inattention to, and neglect of, the late
+requisitions, and calling upon them to urge through their respective
+Legislatures the measures recommended by Congress.
+
+My reason for this proposal is, a conviction that the people are
+heartily disposed to support the revolution, but that the public
+service is too frequently delayed by local disputes and animosities,
+which consume the time to be devoted to important purposes, and that
+individuals in the several Legislatures are too apt to believe, that
+by sparing grants they render themselves agreeable to their
+constituents, although in effect such policy cannot but prove highly
+expensive and dangerous if not destructive.
+
+That Congress may be enabled to judge of the saving, which would arise
+from the proposition I have had the honor of making, with respect to
+the officers of our army, I enclose an estimate, by which it will
+appear, that this would be upwards of sixty thousand dollars a month;
+and to this must be added a further consideration of very great
+importance, that as the servants to officers are taken from among the
+soldiers, the army would in effect, receive a considerable
+reinforcement.
+
+With respect to the price of recruiting, I do not consider anything
+proposed as being by any means definitive. I have stated each at one
+hundred dollars, and I would suggest, that as the design is to raise
+men and not money, it is better to value them too high than too low. I
+am far from considering this as the best mode of recruiting an army.
+On the contrary, I am convinced, that if it were a continental instead
+of a State army, the raising as well as maintaining of it, would be
+infinitely easier and cheaper; but under the present limited power,
+which Congress are invested with, it becomes the duty of their
+servants to propose such measures as appear to them best. What I have
+had the honor of stating, is submitted with all possible deference,
+and I hope the decisions of Congress will be as speedy as the nature
+of the business will permit. With perfect confidence in their wisdom,
+I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, February 15th, 1782.
+
+ Sir,
+
+In the circular letter, which I did myself the honor to transmit on
+the 19th day of October last, I stated our situation as clearly and
+explicitly as I could, so that you might be in a capacity to form a
+solid judgment as to what would be proper. I am now to inform you,
+that the most recent and authentic information from Europe, contains
+the reiterated determination on the part of France, to grant us no
+further pecuniary aid. Spain appears to have neither the inclination
+nor the ability to afford any, and in Holland it can only be obtained
+from individuals, who will always require security, and of consequence
+will not lend to the United States, who as you well know have no
+security to give. The want of proper funds has so reduced domestic
+credit, that we can draw no resources from thence, and until domestic
+credit is established, foreign credit cannot exist, for it is absurd
+to expect, that foreigners will confide in a government, which has not
+the confidence of its own citizens.
+
+It is hardly possible to describe the consequences, which have
+followed on a loss of credit. We have seen the people diffident,
+jealous, and unhappy, nor have they yet recovered, even where the
+removal of undue restrictions has given them time to breathe from the
+load of oppression. But the public is, if possible, in a still worse
+situation. No persons will trust the public from a deep apprehension
+of ruin if they should, and consequently our operations must be
+bounded by the taxes, which can be collected, while at the same time
+we must contend for our very existence as a free country at an
+expense, which we cannot limit because we cannot limit the efforts
+made against us. Whenever proper methods shall have been taken to
+restore credit, the benefits arising from it will be as evident to
+all, as the want is now, to those who are intrusted with the
+administration. Our expense at this moment is greater than it ought to
+be, though less than it was, and I cannot retrench, because I have not
+sufficient means in my power, and have not at this moment any certain
+reliance on sufficient aid from the several States.
+
+I am much inclined to believe, that individuals in the several
+Legislatures are unacquainted with the real state of affairs, or
+flatter themselves that they are better than they really are, even
+after information. If gentlemen would consider seriously the situation
+of the public servants, they would at least not suspect them of
+describing our dangers as greater than they are. They could not, for
+instance suppose, that I would give a high coloring to the disorders
+of our finances, because they must see, that on the contrary, I should
+derive a degree of credit from the general belief, that such disorders
+do not exist. And when I declare my apprehensions, I injure so far my
+own operations. My reason for describing our situation in its true
+light is, that the States may be excited to grant us relief. I might
+by an appearance of wealth extend my operations for a little while,
+but in the end they would fail, and how we should then be extricated,
+no man can tell. At present I must bear the evils, which result from
+the want of resources, and limit my views accordingly, but it would be
+madness to inculcate an opinion, that things are worse than they are,
+because then I could not derive the full benefit of those resources
+which we have. You must, therefore, be convinced, that I give you no
+exaggerated account, and I trust, Sir, that your Legislature will give
+due weight to assertions, which they have every reason to believe, and
+which if neglected, they will be convinced of by a melancholy and
+perhaps fatal experience.
+
+Many people flatter themselves with the hope of peace. But on what is
+it founded? Has the enemy given the slightest evidence of a desire for
+it? Instead of suing for peace, they talk only of war; they prepare
+only for war; and when they might have got rid of one enemy by a word,
+they disdained it. Although Holland offered a separate peace, England
+refused to accept it; nor have we heard that she has agreed even to
+negotiate for, much less to conclude, a general peace. She enjoys full
+credit, and therefore she can carry on the war; and the object of it
+on her part is so great, that therefore she will carry on the war.
+Hitherto she has carried it on alone and unsupported. Years have
+elapsed since it was pretended, that she could not find resources for
+another campaign, and yet campaigns have succeeded each other with
+increasing expense, and are still likely to go on. With a credit like
+hers, there can be no want of the means, and therefore we have no
+reason to expect that she will be deprived of them while that credit
+exists. How soon she may find associates, or how soon we may lose
+them, no man can say. While the mutability of all human affairs
+continues to be the theme of common and daily observation, no wise
+man will rely on the frailty of human opinion, and yet opinion may in
+a moment sway the politics of different powers, so as totally to
+change all present appearances. While the war continues England has
+hope. The times and chances which happen to all may favor her, and at
+worst she can conclude a peace, which cannot be much more pernicious
+than the loss of these States. We ought therefore to expect that Great
+Britain will continue the war, and we ought even to expect that she
+will find allies to assist her in it. We ought therefore to prepare
+ourselves for increasing efforts of opposition.
+
+But admitting that negotiations were opened, and in a train of effect,
+what then would be our situation? Are we in capacity to insist on
+useful and honorable terms? There is hardly a State in the Union but
+has an interest in objects, which under our present circumstances are
+unattainable. While the enemy continue in possession of New York and
+Charleston, we cannot expect such a peace as every good American ought
+to desire. Nor shall we obtain that security, without which peace is
+no longer a blessing.
+
+The successes of the last campaign will undoubtedly derange the plans
+of the enemy for a time, but whether or not those successes will prove
+decisive must depend upon ourselves. If we indolently lie still until
+the enemy can obtain reinforcements, our prospects at the close of
+next campaign may be as gloomy as at the opening of the last. If we
+exert ourselves to strike the enemy before he can receive aid, we may
+perhaps drive him entirely away, and then indeed we shall have reason
+to expect peace. It has been the common trick of the enemy to pretend
+at every success we have obtained, nay during every winter of the
+war, that it would immediately cease, and they have had emissaries
+among us to inculcate that idea. The consequences have been, that we
+have never been in a state of preparation as soon as they have,
+notwithstanding the Atlantic ocean lies between the two countries, and
+places them at least three months asunder as to all military
+operations.
+
+No thinking man can hesitate a moment in the opinion, that we ought to
+prepare for an early and vigorous campaign, in order to take New York
+and Charleston. But some persons of sanguine temperament say, that the
+enemy will evacuate one of these places. If it be so, surely they will
+be so much stronger at the other, and of course it will be so much the
+more difficult to expel them from it. Possibly they may incline to
+evacuate one of these places, and if so they will be determined by the
+knowledge of our force. If we are formidable it will be an additional
+reason with them for evacuation. But other persons still more sanguine
+suppose, that they will evacuate both places. This is surely absurd,
+for even if they negotiate for peace, they will hold something as a
+ground, on which to make demands, and if they prosecute war, they will
+certainly not abandon the objects of it. Admitting, however, that the
+enemy may have some thoughts of this sort, surely the determination
+will be greatly influenced by the consideration of our relative force
+or imbecility. And even if they should entirely quit the United
+States, still there are objects well worth fighting for, objects too
+which cannot be obtained without fighting.
+
+Every reason, therefore, combines in showing the propriety of
+commencing our operations very early, and, therefore, everything has
+been done for the purpose, which the means in my power would admit of.
+It remains only with the several States to provide men and money, and
+to make that provision as early as possible; for the old adage, that
+"he who gives early doubles thereby his gift," can never be more
+applicable than on the present occasion. For whatever may be the
+different opinions of different men, all must agree, that the only way
+to secure peace is to be prepared for war. And depend upon it, that if
+we neglect the present moment, we shall have bitter cause to lament
+our negligence.
+
+In the letter before mentioned, I did myself the honor to observe,
+that I expected the future expenditures would be greatly curtailed.
+This has happened, but I also observed, that the most rigid economy
+had its bounds, and could not exist without the punctual performance
+of those engagements, on which the first steps towards it must depend.
+I have not yet reached those bounds, for reasons I have already
+stated, and how long it will be before I arrive at them, must depend
+on the ability to perform the engagements I have made; and surely it
+is unnecessary to add, that this ability must depend on the exertions
+of the States. I mentioned also, that I should shortly advertise for
+contracts, as the most effectual means of husbanding our resources.
+
+With respect to this matter of contracts, I have some reason to
+believe that it has been misunderstood, and, therefore, I shall take
+the liberty, of giving some little information on the subject. When I
+was called into office, I had a thorough conviction, that supplying by
+contracts was the most effectual and most economical, but I had no
+money, and credit was at so low an ebb, that most people doubted
+whether any one would contract. At that time, the State of
+Pennsylvania gave me assurances of hard money to procure the articles
+of specific supplies due from that State on the requisition of
+Congress. I immediately purchased a part of those supplies on my
+private and personal credit and assurances, and I advertised for a
+contract to supply rations at Philadelphia. By degrees I extended the
+contracts throughout Pennsylvania; whereas, if I had advertised for
+them at once, I might, probably, have failed in obtaining proposals;
+or if not, those who inclined to risk it would have made the public
+pay dear for the credit reposed in the Minister. The contracts of
+Pennsylvania were paid out of moneys granted for furnishing the
+supplies, and the articles are carried to account on the requisitions.
+Having reason to expect support from the middle and eastern States, I
+have extended the contracts for supplies through all the country
+northward and eastward of Potomac river; and in order that you may
+judge of the effect, I will mention, that, on application for pay to
+the department of the issuing Commissary, I required a return of them,
+and of their monthly pay; which being made, I found that within that
+district it amounted to ten thousand five hundred and twentyfive
+dollars; which is annually for the salary alone, exclusive of all
+other expenses, one hundred and twenty six thousand dollars.
+
+The rations delivered at West Point and its dependencies are supplied
+at the rate of nine and a half ninetieths of a dollar for each ration;
+consequently, that sum will yield one million one hundred and
+ninetysix thousand five hundred and twentysix rations, which is
+something more than three thousand two hundred and seventyeight per
+day. But when it is considered, that salaries were not the only
+expenses of a department, it is certainly estimating within bounds to
+suppose, that five thousand soldiers are now fed every day on what it
+formerly cost the public to support the issuers of provisions in a
+part of the United States. I should have pursued the business of
+contracting throughout America, had I received any assurances of
+taxation, which would warrant the procedure. But I had none, and I did
+not dare risk myself in making engagements, which I found no
+probability of keeping. But whenever I can see any way clear, I shall
+certainly do it, and, I trust, that the effects will be as beneficial
+as they have been elsewhere.
+
+Having already observed on the necessity of early and vigorous
+exertions, and mentioned that I had done everything towards them which
+was in my power, I have only to add, that unless we are properly
+supported, everything so done has been thrown away. The views of the
+Commander in Chief will be disappointed; the combinations intended
+with our allies will be deranged, and the enemy will derive that
+advantage from our negligence, which we might have derived from their
+weakness.
+
+It gives me great pain to learn that the public service is too often
+interrupted, and the attention of men diverted from it by little
+trivial disputes of a private, partial, or local nature, which are
+comparatively of little consequence. This is a conduct unworthy of
+wise men, and such as cannot be justified. Surely it is best first to
+provide for the defence of our country before we squabble about minute
+objects of controversy. If we should be told that the British were so
+materially divided in their Parliament, that in contentions about
+trivial disputes they delayed granting to the Crown effectual aid of
+money, we should certainly form very splendid expectations from that
+circumstance. Judge then, whether our enemy's hopes are not raised by
+our dissensions. Or rather let me ask, if they have not loudly
+asserted that they would prove ruinous to the cause of independence;
+nay, have they not boasted that those dissensions originated in
+British influence or British gold? What then must be the opinion of
+foreigners and strangers? What will they not conclude from a conduct,
+which according to their habits of reasoning, can only be accounted
+for by disaffection, folly, or madness? Let us, for heaven's sake,
+while engaged in a cause the most honorable, the most virtuous, and
+which must endear the present generation to future ages; let us
+preserve a conduct noble, dignified, and worthy of that glorious
+cause; in pursuit of the greatest, the dearest object which man can
+possess; in the fair road to peace, liberty, and safety, let us not
+fall out by the way. But united to, and supporting each other, let our
+efforts be equal to our claims, and let us show that we have the
+perseverance to obtain what we had the spirit to demand. Let us at
+once become independent; really and truly independent; independent of
+our enemies, of our friends, of all but the Omnipotent.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, February 18th, 1782.
+
+ Sir,
+
+I do myself the honor to submit to the United States in Congress
+assembled, through your Excellency, the propriety and necessity of
+adopting immediate measures for adjusting the accounts of the four
+following departments; namely, the Commissary's, the Quarter Master's,
+the Hospital, and the Marine; up to the last day of December, 1781,
+inclusive. Having long and attentively considered this subject, it
+appears to me to be among those cases, which do not admit of the
+common forms. There must be a degree of vigor and decision in the
+conduct of the business, which few men possess a knowledge of;
+business not commonly to be found, and such uncorrupted and
+uncorruptible integrity as will give security to the United States.
+What may be an adequate reward for the services of such men, I really
+do not know, but I have such reason to believe that many fraudulent
+practices have happened, and that, in some cases, considerable
+balances are due to the United States, that I cannot in consistency
+with my duty avoid proposing to Congress the following resolutions.
+
+"That four Commissioners be appointed for the settlement of accounts,
+namely; one for the Commissary's department, one for the Quarter
+Master's department, one for the Hospital department, and one for the
+Marine department; and that each of the said Commissioners have full
+power and authority to liquidate the said respective accounts up to
+the last day of December, 1781, inclusive.
+
+"That the Superintendent of Finance be authorised and directed to
+appoint the said Commissioners, and to agree with them for a reward
+for their services respectively, and also with respect to the
+allowances to be made to their clerks; and that he report the names of
+the said Commissioners to Congress.
+
+"That it be recommended to the several States, immediately to pass
+laws authorising such Commissioners to send for persons and papers,
+and to examine witnesses upon oath."
+
+These I propose only as a sketch, which the wisdom of the United
+States in Congress will mould into such form as shall be most proper.
+I will only observe one thing, which is, that the proposition that I
+should appoint such Commissioners comes from me. I have no particular
+persons in view, but shall be happy to find those who are proper. I am
+far from being desirous of appointment to office, but this is an
+occasion so important, that I cannot sacrifice my duty to false
+notions of delicacy. Characters fit for such an intricate and
+difficult business cannot easily be found, still less can they be
+known to the several members of Congress, and the debates which
+sometimes take place when appointments are made, deter the most proper
+persons from putting themselves in the way of nomination. Besides
+this, as it is not possible that the several members can be
+sufficiently acquainted with the talents of the particular persons, it
+is better that the appointment should be in one, who can be made
+accountable for an improper choice. I take the liberty to observe,
+that nothing will give more satisfaction to the people at large than
+to find that these things are put in a proper train; for the
+complaints are general, and I am convinced, that in some cases at
+least they are well founded.
+
+My reason for urging this matter at the present moment is, that I am
+not only pressed on the subject by several dismissed officers of those
+departments and by their creditors, but I have also had recent
+information of very considerable frauds and practices; and on
+conferring with the Controller of the treasury this morning, the plan
+above proposed appeared not only the most eligible, but indeed the
+only effectual one. It is submitted, with all due deference, by your
+Excellency's most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, March 9th, 1782.
+
+ Sir,
+
+On the 20th and 27th of last month, the United States in Congress
+passed Acts for settling and finally adjusting all the public
+accounts, up to the first day of the present year. These important
+Acts would immediately have been transmitted, but I wait the event of
+some additional propositions upon that subject, which are now under
+the deliberation of Congress, and then I shall have the honor of
+laying before you the whole of this very important business, so that
+it may be maturely considered in a general and comprehensive point of
+view.
+
+At present I shall confine myself to congratulating your Excellency,
+which I do with the most unfeigned pleasure, on the prospect which
+begins to open, of adjusting these intricate and almost obsolete
+transactions of relieving the various public creditors, and
+consequently of rescuing and restoring the public credit. Let me add,
+Sir, that I consider these things essential to the consolidation of
+our federal Union, to the promotion of general harmony and generous
+confidence throughout the United States, and to the establishment of
+our glorious independence on the solid basis of justice. I am to
+request, Sir, that your public accounts be put in a state of
+preparation, so that the person appointed for that purpose may be able
+speedily to investigate them; as much time and consequently much
+expense will be thereby spared.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND, AT PARIS.
+
+ Office of Finance, March 9th, 1782.
+
+ Sir,
+
+In a letter, of this day to Benjamin Franklin, Minister
+Plenipotentiary of the United States of America to the Court of
+Versailles, I inform him, (which information I am now to convey to
+you,) that I shall draw bills on you, as a market for them may offer,
+to the amount of five hundred thousand livres tournois, on account of
+the United States of North America. I have detailed to him everything
+necessary on the subject, which he will communicate. I am to request
+of you, that you will duly honor and pay those bills, giving me notice
+of every transaction, from time to time as occasion may offer and
+require. The necessary funds are, I presume, in your hands already, or
+will be before this reaches you; but at any rate Dr Franklin will
+provide them in season.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, March 9th, 1782.
+
+ Sir,
+
+The Secretary of Foreign Affairs yesterday transmitted to this office,
+the letters and invoice brought by Captain Jackson from Messrs
+Neufville of Amsterdam. Upon perusing them I am very sorry to observe,
+not only that there has been very great mismanagement, but also that
+the letters do not contain that clear and satisfactory account of the
+business which ought to have been transmitted. There is reason to
+believe, that a considerable part of these goods are of British
+manufacture, and consequently such as cannot be brought within the
+United States. As these matters are not clearly stated, it would be
+useless to go at present into an inquiry who has been or is to blame,
+and therefore any particular observations from me would be both
+unnecessary and improper.
+
+I have written to Dr Franklin to take this business under his
+inspection, and to cause all the goods of British growth and
+manufacture to be sold. As to the remainder of the goods, the
+propriety of selling or shipping them must depend on many
+circumstances, a knowledge of which cannot be acquired here, so as to
+give consistent orders what shall be done there. I have, therefore,
+desired Dr Franklin to cause the goods to be so disposed of, as shall
+to him appear most for the interest of the United States. My reasons
+for referring the whole matter to him were, because he has already had
+so much to do with it as at least to have paid the money, and is, I,
+presume, privy to the original agreements made by Colonel Laurens;
+because he will know what goods are coming out from France, and
+consequently how far any or all of those in Amsterdam, which are not
+of British manufacture may be necessary for us; because he will have
+an opportunity of explaining such parts of the business as may be
+proper to explain to the Court of France, who has had some reason to
+complain, or at least thinks that she has; and, finally, because I
+shall draw bills, the payment of which will be at Paris under his
+direction, and if the other resources fail, the proceeds of these
+goods will enable him to honor them.
+
+With great respect, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE BARON D'ARNOT.
+
+ Office of Finance, March 18th, 1782.
+
+ Sir,
+
+I have received your note of the 9th instant, and in answer am to
+inform you, that if his Prussian Majesty should incline to procure for
+his subjects a part of the emoluments attending the commerce with this
+country, the importance whereof can be easily estimated, from the
+riches it poured into Britain while she enjoyed the benefit of
+monopoly, all that is needful to be done is, to set open his ports to
+our vessels, and protect them whilst there. The merchants of this
+country are unrestricted in their enterprises and commercial pursuits;
+they will naturally trade where they shall find their profits most
+certain and permanent; and I have not a doubt but Prussia would have
+her share of their trade, were the government to give the proper
+encouragement to it.
+
+As to the supplies of the army of the United States, I have determined
+in future to contract for all such articles with individuals, on whose
+abilities for procuring goods on the best terms, I can depend. They
+will import them at their own risk; consequently you see I can by no
+means engage to purchase any of the commodities you mention at St
+Thomas's; but as that island seems to be the general mart in the West
+Indies, where the people of America resort to exchange their produce
+for the manufactures of Europe, I have not a doubt but any of his
+Prussian Majesty's subjects, who may be inclined to this business,
+will readily find an occasion of disposing of their goods there, and
+receiving in exchange for the same, the staple articles of this
+country.
+
+As to what relates to your personal affairs, you will find that I have
+conformed to your views, and I expect what is done in that respect
+will be much to your satisfaction.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, March 23d, 1782.
+
+ Sir,
+
+Applications being frequently made by the several Loan Offices, for
+orders to renew sets of exchange, in consequence of proof made to them
+by the proprietors of interest bills, that the first, second, third,
+and fourth bills, have been lost and destroyed, or by accident
+prevented from reaching the persons to whom they were remitted, and as
+it is but just in such instances to renew the same, I have caused a
+number of bills to be struck, of the same denominations, and in the
+same style, manner, and tenor, except that they are fifth, sixth,
+seventh, and eighth bills, and when made use of will be filled up in
+the same manner as the first four were, and issued from the same
+office. I give you this notice, that you may direct the banker to pay
+due honor to any one of those bills in all instances, where no one of
+the set, consisting of eight, has before been paid; and of course he
+will before such payment always satisfy himself, that none of the
+others have been honored. This general advice will I think answer the
+purpose, and render unnecessary particular advice with each renewed
+set of exchange.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS[4]
+
+ [4] _March 27th._ Having determined to draw bills on Mr Grand at
+ Paris, for five hundred thousand livres, under such limitations
+ and conditions as must secure the payment, the Minister of France
+ being absent, I consulted M. de Marbois, _Chargé d'Affaires_, read
+ to him my letter to Dr Franklin, explained my plan, and finally
+ had his approbation, so far as he is authorised. This gentleman
+ also communicated to me the Minister's letters to the Court, so
+ far as they related to our finances, and I found them to breathe
+ the true spirit of attachment and friendship to America.
+ _Diary._
+
+ * * * * *
+
+TO OLIVER PHELPS.
+
+ Office of Finance, March 30th, 1782.
+
+ Sir,
+
+As I promised during the conference, with which you honored me
+yesterday, to give an answer in writing to the proposition you made in
+consequence of a resolution passed by the Legislature of
+Massachusetts, on the 5th day of this month, I shall now perform that
+promise, but in doing it I shall think it unnecessary to go into that
+full detail of reasoning on the subject, which took place in
+conversation between us; and I am the more readily induced to decline
+this, because you, Sir, seemed satisfied of the force and propriety of
+the reasons urged; wherefore when you come to make the communication
+to the State, your candor will induce, and your abilities enable you,
+to do me ample justice.
+
+I will, therefore, content myself with observing, that in all
+countries engaged in war, experience has sooner or later pointed out
+contracts with private men of substance and talents equal to the
+undertaking as the cheapest, most certain, and consequently the best
+mode of obtaining those articles, which are necessary for the
+subsistence, covering, clothing, and moving of an army. The experience
+of other countries could not satisfy America. We must have it of our
+own acquiring; we have at length bought it; but the purchase had
+nearly been our ruin. I had been long since convinced, that nothing
+could save us, but opening all the American ports to unrestrained
+commerce, all the markets of America to the free sale and purchase of
+every article of its production and import; and by taking away all
+restraints on money, leave every individual to judge and act for
+himself. I labored hard in consequence of this conviction, to
+introduce such measures into the State, of which I am a member, and
+finally was happy enough to succeed; the good consequences were
+immediately seen and felt; the example, has been followed, and it is
+to be attributed to the freedom, which we now enjoy, that persons can
+be found willing to contract for furnishing supplies to the American
+army.
+
+I have succeeded in obtaining many contracts on very reasonable terms.
+The saving to the United States thereby is immense, and I am
+confident, that neither the patriot who fills the chair of government,
+the honorable gentlemen who compose the council, nor those who
+represent the country of Massachusetts, would wish me to make an
+engagement, which in partiality to that State, would in its effects
+destroy a system, that has been proved so truly economical. I cannot,
+Sir, enter into the engagements proposed by Massachusetts, without
+being exposed to similar claims in twelve others, and I feel the
+absolute necessity and propriety of declining every application of the
+kind. The persons who contract with me to supply the armies of the
+United States, must make purchases of the articles necessary; their
+interests will lead them to those markets, which will supply cheapest,
+however remote from the scene of action, and this will give all the
+States a fair chance of obtaining money, or bank notes, through that
+channel to pay their taxes. Those who will give most labor or goods
+for money and notes, will undoubtedly obtain the greatest share
+thereof.
+
+I cannot quit this subject, without observing, that taxing in
+specifics is expensive to the people, cumbersome to the government,
+and generally inadequate to the object. I think if every individual in
+the country is left to dispose as he pleases of his property, and
+compelled to pay his taxes in money or bank notes, he will satisfy the
+tax by the sale of much less of that property, than in the case of a
+specific tax taken from him to raise the sum. Nothing could gratify me
+more than to have an opportunity of evincing to the State of
+Massachusetts how much I am disposed to comply with her wishes in
+every instance, that my general duty to the United States will permit.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, April 15th, 1782.
+
+ Sir,
+
+In a circular letter, which I had the honor to address to your
+Excellency, on the 9th day of last month, you were informed, that the
+United States in Congress had on the 20th and 27th of February, passed
+Acts for settling and finally adjusting all the public accounts; and
+that those Acts would have been transmitted immediately, but that I
+was induced to wait the event of some additional propositions upon
+that subject, which were then before Congress.
+
+As I now discover that those propositions meet with much greater
+delay, than at that time was expected, and as it is still uncertain
+when they may be decided upon, I think it improper to detain longer
+the Acts that were passed, although several considerations induced a
+desire to have the whole system communicated to the several Assemblies
+at one and the same time.
+
+You will observe, Sir, that it is earnestly recommended to the several
+Legislatures, duly to empower and authorise the United States, in
+Congress assembled, to make a final settlement of the proportions to
+be borne by each respective State, of the general expenses of the war,
+from the commencement thereof, until the 1st day of January, 1782. An
+immediate compliance with this recommendation is of infinite
+importance to the Union, as it is also to each of the States. No
+determination of quotas, which Congress can at this time possibly
+make, will create a difference for or against any State equal to the
+expense, which will arise either by disputing its quota, or by
+delaying to have it fixed. If Congress are now empowered, they must
+be determined by general principles, and if the decision is delayed
+ever so long, general principles must at last be resorted to, and that
+after large sums shall have been expended by each of the Governments,
+in attempting to ascertain their respective numbers of inhabitants,
+value of property, quantity of lands, annual income, &c. The returns
+on these points severally, cannot be made with certainty and
+exactitude _as to the time past_, and therefore they will only afford
+more ample field for disputation; disputes, which if the cause be not
+removed by a compliance with the present requisition, may probably
+deprive us of the blessings of peace after the war with Great Britain
+shall cease.
+
+I do not think it necessary to detail the reasons, which induced
+Congress to adopt this measure, but I cannot help observing, that it
+is to the want of a decision on this point, that the languor and want
+of exertion of the several States are to be attributed. That fatal
+assertion that each has done most, which each has made and repeated,
+until it has gained but too much credit, would never have obtained a
+place in the minds of men, who really love their country and cause,
+had the requisitions of Congress been made annually for money, and the
+quotas fixed finally at the date of the demand. The compliances of
+each would in that case have determined their respective merits or
+demerits; we should then have seen a competition the very reverse of
+that which has for some time past prevailed; and it is not yet too
+late. Let us settle the accounts of the past expenditures, adjust the
+shares which each State has to pay, but let the settlement be final,
+or we do nothing. And if on the requisition of men and money for this,
+and for future years, the quotas be finally fixed, and the compliances
+be made publicly known, we shall banish that distrust, which I am
+sorry to say now exists between the States, and in place thereof
+excite the noble ardor, which animated our conduct in the commencement
+of the contest. The strife will then be which shall be foremost in
+contributing their share to the support of that war, on the success of
+which depends the political existence of all.
+
+A desire to name commissioners of approved abilities and character,
+has induced me to delay such nominations, until I can obtain
+information of suitable persons from each State. I shall very soon
+proceed in this business, in such manner as to me shall seem most
+likely to obtain honest, impartial, and equitable settlements of the
+public accounts.
+
+ I have the honor to be, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO NATHANIEL APPLETON.
+
+ Office of Finance, April 16th, 1782.
+
+ Sir,
+
+I am indebted for your letters of the 14th and 28th of last month.
+Having personally a great regard for your Governor, it gives me pain
+to disapprove of any of his measures, and probably he never could have
+given cause for blame by any delay of the impost law, had he
+considered how many widows and orphans, as well as other deserving
+persons, friends to their country and its cause, are deprived of the
+means of comfortable subsistence, by being kept out of that interest,
+which is so justly their due, and which the revenue to be raised in
+consequence of that law was intended to discharge.
+
+I know he has a benevolent heart; I know that he is generous; and
+principles of justice will always have their proper influence over
+him. I beg you will remind him, that his generosity, humanity, and
+justice, are all concerned in promoting the establishment of permanent
+revenues, sufficient to discharge the interest of our public debt.
+Nay, more, the political existence of America depends on the
+accomplishment of this plan. We cannot be called a nation, nor do we
+deserve to be ranked amongst the nations of the earth, until we do
+justice to those, who have served and trusted us. A public debt,
+supported by public revenue, will prove the strongest cement to keep
+our confederacy together. Sound policy would also dictate, that we
+should do justice to those who have trusted us, in order that we may
+have pretensions to credit in future. We might then tax the present
+race of citizens six pounds, instead of a hundred, and leave posterity
+to pay the principal of a debt contracted in consequence of our
+distresses and necessities, but from which they will derive ease and
+emolument. I could say a great deal more on this subject, and probably
+shall to the world at large, if the just measures of Congress continue
+to meet with such ill judged opposition.
+
+ I am, Dear Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, April 17th, 1782.
+
+ Sir,
+
+In consequence of the communications made to me by his Excellency, the
+Chevalier de la Luzerne, since his return from Virginia, I shall
+proceed to draw bills upon Mr Grand to the extent of five hundred
+thousand livres monthly; so that computing the months of January,
+February, March, and April, I have now to draw for two millions of
+livres; as I hope and expect that the five hundred thousand livres,
+already drawn, may be provided for out of the balance due on the Dutch
+loan. This supply comes most seasonably, and at a more leisure moment
+you will be charged with the proper acknowledgements to the Court. I
+must however repeat, that the sum requested for the service of this
+year will be necessary to enable me to support the campaign, and
+perfect my arrangements; it will be my constant study to draw forth
+our own resources and lessen our demands on France; but these things
+require time.
+
+I find it will be advantageous to draw upon Holland and Cadiz as well
+as on Paris; and, therefore, I request that you will desire Mr Grand
+to give immediate orders to Messrs Fizeau, Grand & Co. in Amsterdam,
+to honor any bills I may draw on them, with directions to take their
+reimbursement on him, for account of the United States. He must also
+give similar orders to Messrs Harrison & Co. of Cadiz, and I will
+furnish Mr Grand with regular advice of every bill I draw, whether on
+himself or either of those houses. My bills in the whole will not
+exceed the sums to which I am limited, and the commission those houses
+charge will be paid by Mr Grand. I expect it will not exceed a half
+per cent; respecting which I shall write to them. I am induced to draw
+on those places, because the sale bills will thereby be extended, and
+the price better supported.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JOHN JAY.
+
+ Office of Finance, April 23d, 1782.
+
+ Dear Sir,
+
+You have enclosed herewith, the copy of an official letter to the
+Secretary of Foreign Affairs, which contains some information on
+subjects that you ought to know. It has been my intention for some
+time past to give you a detail of circumstances, which have happened
+since the date of my former despatches; but the occurrences of every
+day employ my whole time, and engross my whole attention, especially
+for the last six weeks, as I have been deprived of assistance. The
+first leisure moments shall be devoted to make you acquainted with the
+situation of things here, and in the meantime you may indulge the
+pleasing idea, that system and regularity are dispelling the clouds in
+which our affairs have been enveloped.
+
+ I am, very sincerely, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Head Quarters, April 23d, 1782.
+
+ Sir,
+
+I am obliged to you for the copy of the contract you have been pleased
+to send me, under cover of your favor of the 15th instant. It came
+very opportunely, as I have already been applied to for a
+determination upon the points submitted to my decision.
+
+I am very glad to find that an Intendent, appointed by you, is to
+attend the army, and to hear and decide causes of complaint or
+uneasiness, which may arise between the army and the contractors. As
+we are still to gain knowledge by experience, other complaints than
+those which have already occurred may yet arise; and I shall be very
+happy to be relieved from those troubles as much as possible. I wish
+you may be fortunate in the appointment of this person, and that he
+may be with the army at an early period.
+
+You may be assured, that I am fully persuaded of the importance and
+utility of the present mode of feeding the army, and that I shall take
+every occasion to impress the same ideas upon the minds of the
+officers. I am pleased to find, that saving the complaints, which have
+arisen in their execution, they are generally inclined to acquiesce
+and promote the contracts; and you may depend, that I shall take
+pleasure in giving the gentlemen concerned in our supply, every
+assistance and protection in my power, consistent with that justice,
+which I think is due to the army.
+
+ I have the honor to be, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+TO MAJOR GENERAL GREENE.
+
+ Office of Finance, April 24th, 1782.
+
+ Sir,
+
+The several bills you found it necessary to draw upon me have been
+punctually honored, and I am pleased at having been able by this means
+to strengthen your credit and provide you with money, which I dare say
+will, agreeably to your declaration, be expended only on occasions of
+pressing necessity. Would it were in my power to make you perfectly
+easy on the score of money; you would then experience the alacrity
+with which my compliances would be made.
+
+I have observed by the tenor of several of your letters on the subject
+of the confederation, that your sentiments coincide entirely with my
+own. The inefficacy of that instrument is daily felt, and the want of
+obligatory and coercive clauses on the States will probably be
+productive of the most fatal consequences. At present they content
+themselves with the assertion, that each has done most, and that the
+people are not able to pay taxes. Languor and inexertion are the
+offspring of this doctrine, and finally the people, who are said to be
+incapable of bearing taxation, actually pay double the sum, that would
+be necessary in the first instance. Nothing on my part has been
+omitted that I could think of, to stimulate them to exertions; and I
+have given them every encouragement to support my arrangements, that
+could be derived from regularity, system and economy; but all this
+does not produce the effect it ought; there are in every Legislature,
+characters too full of local attachments and views, to permit
+sufficient attention to the general interest. I am perfectly sensible,
+and was the day I became Superintendent of Finance, of the
+difficulties that are to be encountered. I know full well that it
+requires much time, more patience, and greater abilities than I claim,
+to bring the finances to the order in which they ought to be in every
+well governed country. But I apprehend this knowledge ought not to
+deter either you or me from continuing the struggle with those
+difficulties. If I had been deterred by their appearance from the
+acceptance of my appointment, our affairs would probably have been
+worse than they now are, or if you had declined to oppose the British
+arms in the Southern States, Virginia might now have formed the
+boundary line.
+
+You, therefore, my Dear Sir, must continue your exertions, with or
+without men, provisions, clothing, or pay, in hopes that all things
+will come right at last; and I will continue mine until somebody more
+competent shall be found to relieve me. The Secretary at War will say
+everything that is necessary with respect to men, clothing, short
+enlistments, and future operations.
+
+With respect to the pay of the army, we have abolished the practice of
+partial payments. The officers with you will be furnished monthly with
+their subsistence money, and let their distance be what it may, they
+shall have the same payments with those that are nearer; for I never
+will consent to partial payments so long as it depends on me. How much
+pay I shall be able to make, depends absolutely on the collection of
+taxes in the several States. If they comply tolerably well with the
+requisition of Congress for the year 1782, I will make tolerably good
+pay to the army for that year, but if the States will not furnish the
+means, it is impossible. The discontents of the army should in justice
+be directed to the Legislatures of those States, which neglect or
+delay to pay their quotas of the continental tax, and it shall be
+clearly known in future which they are.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF VIRGINIA.
+
+ Office of Finance, April 27th, 1782.
+
+ Sir,
+
+In a letter from the Minister Plenipotentiary of France, of the 22d
+instant, is the following paragraph.
+
+"His Majesty having consented to furnish the State of Virginia with
+arms, clothing, and munitions, for a sum, with the amount of which I
+am unacquainted, the Minister desires that Virginia would render an
+account of the same to the United States, and that you would close the
+business, and the amount which has been advanced by France to
+Virginia, shall be deducted from the sums loaned to the United
+States."
+
+My answer of this date is as follows.
+
+"With respect to the supplies for the State of Virginia, I have
+already had the honor of mentioning to your Excellency, that I could
+by no means consider purchases made for any particular State in the
+Union, as properly chargeable to the United States. This was in a
+letter of the 26th of November last, in consequence of your
+application relating both to Maryland and Virginia. If Dr Franklin has
+asked the supplies on the credit of the United States, they will, of
+course be brought to their account. But I cannot conceive, that this
+has been done by him, as I do not know of any orders to do so from the
+Congress. Your Excellency will, I am confident, see with me the
+impropriety of listening to the applications made by separate States,
+and be convinced how much it is the duty of those to whom the
+administration is committed, to oppose these appearances of disunion
+in our councils; appearances, which, however unfounded, are not the
+less injurious. The State of Virginia, is, as you well know, far from
+being singular in her applications abroad for separate aid, and your
+Excellency is better informed than almost any other, of the evils
+which have resulted from them. I do not mention this with a view to
+blame those who made, or those who granted the requests, alluded to.
+On the contrary, it gives me pleasure to find, that in some instances
+among so many, a fruitless recourse has not been had to the purses of
+individuals. As there is a hope that these irregularities may no
+longer take place, I will not absolutely decide, and must pray that
+this question be for the present left open; as I am extremely desirous
+not to injure the operations or credit of any particular State, while
+I pursue the road marked out by public duties. I shall transmit to the
+government of Virginia that part of our letter, which relates to this
+object."
+
+I presume that it will be unnecessary to remark to your Excellency,
+how incapable the United States are of assuming burdens of debt, while
+so little attention is paid to put the public treasury in a situation
+to defray the necessary expenses of the current service. I must pray
+to be furnished with an exact account, as soon as may be, of the sum
+due by the State of Virginia to the Court of France, and of the funds
+which the State propose to apply in discharge of it; in order that I
+may, if possible, take such measures as may preserve her credit, and
+not be injurious to the United States. It becomes my duty, Sir, on
+this occasion, to mention further the sum of sixtysix thousand eight
+hundred and fiftythree livres, which were expended by Mr Lee in the
+purchase of supplies for your State; which were acknowledged by a
+certificate of the 13th of March, 1780, with a promise to account.
+
+Your letter of the 28th of March last has been received some time ago.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE SECRETARY OF FOREIGN AFFAIRS.
+
+ Office of Finance, April 27th, 1782.
+
+ Sir,
+
+His Excellency the Minister of France having informed me on the part
+of his Court, that no extraordinary sums will be paid to the Ministers
+of the United States in Europe, I must request that you will furnish
+me with an account of the several salaries payable to the foreign
+Ministers and their Secretaries; and I will make out bills in your
+favor on the Banker of the United States in Paris, for the last
+quarter, commencing with the present year. I must, at the same time,
+pray you will require of those gentlemen, the state of their several
+accounts with the public for salaries, that the whole may be adjusted,
+and all future expenses of that sort be classed under the proper head
+of the Department of Foreign Affairs.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF MARYLAND.
+
+ Office of Finance, April 30th 1782.
+
+ Sir,
+
+I had the honor to receive your Excellency's letter, dated In Council,
+Annapolis, April, 1782, previous to which I had in mine of the 15th
+instant, transmitted the Acts of Congress, which you mention. I hope
+they will meet the wishes of your Excellency and of the State, so that
+a speedy compliance with them may forward the great business they are
+formed to accomplish.
+
+I am much obliged by your Excellency's observation, as to the
+propriety of stating how much money is to be expended. The estimates
+of the current year were formed by Congress; the accuracy of them I
+cannot answer for, but rather incline to think they will fall short of
+the object proposed. The loose manner in which business has formerly
+been conducted, did indeed render it impracticable to frame very
+precise estimates. That those adopted are not exorbitant, will easily
+be seen, by comparing the sum total with the expenditure of former
+years. It is my intention to show by the exhibition of clear accounts,
+how the public money intrusted to me has been expended. This shall be
+done publicly, and then estimates formed agreeably so such accounts
+will be clearly understood, and convey that satisfaction to the mind
+of every candid man, which I am desirous of imparting.
+
+Your Excellency will easily perceive, that the primary step must be to
+grant money, and the accounting for it a secondary one. I presume that
+by the American Constitution, the determination on sums to be
+appropriated must be vested in the supreme representative, and I hope
+there is so much confidence in the wisdom and integrity of that body,
+as to believe that they do not ask for sums which are unnecessary.
+
+Before I close this letter I will pray leave to repeat to your
+Excellency a sentiment often expressed before, that I despise every
+scheme or system, which must depend for its success on mystery or
+concealment, and am convinced that our credit will never be fully
+established, until all our public affairs are open to the public eye.
+I ardently long for the arrival of that moment, when I may lay a state
+of them before the world, in an account of the moneys received and the
+moneys expended, with the debts we owe, and the produce of the funds
+assigned for the payment of them. Your Excellency is not a stranger to
+many of the reasons why such an account cannot now be framed, and
+will, I doubt not, sincerely co-operate with me in removing them.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JOHN WENDELL.
+
+ Office of Finance, May 1st, 1782.
+
+ Sir,
+
+I have been duly honored with yours of the 7th and 15th of April. From
+what you propose with respect to the establishment of a bank in New
+Hampshire, as well as from the ideas which you say are entertained of
+the increase of my private fortune, I am convinced that you and other
+gentlemen are alike mistaken as to the nature of the National Bank,
+and my official connexions and transactions. The confidence you have
+been pleased to repose in me, and your communication of sentiment as
+to public affairs, require of me, that I I should give such
+explanation of both, as the multiplicity of objects, which engross my
+attention will permit.
+
+The bank is a mere thing, in which any man may be interested, who
+chooses to purchase stock. Personally I have no other concern in it,
+than any other gentleman may have, who pleases to invest his property
+in it. The government have nothing to do with the bank, except merely
+to prevent the Directors, should they be so inclined, from extending
+their operations in a manner disproportionate to their capital,
+thereby endangering their credit. Any aid which the government derives
+from the bank is by lodging proper securities with it, and borrowing
+money for short periods on the discount of interest at the rate of six
+per cent, which is receiving ninetynine and paying a hundred at the
+end of two months. The moneys so borrowed are punctually repaid.
+
+By accepting the office I now hold I was obliged to neglect my own
+private affairs. I have made no speculation in consequence of my
+office, and instead of being enriched I am poorer this day, than I was
+a year ago.
+
+You will, from what I have said, see two sufficient reasons against
+adopting the plan you have proposed. That I have not money, and that I
+have totally quitted commerce and commercial projects, to attach
+myself wholly to a business which requires my whole attention. A
+principal object of my last letter was to acquaint you with this
+circumstance, and by what I have there said I meant to acquaint you
+also with the manner of doing business at the bank. If, for instance,
+you draw a bill in favor of your factor here on a merchant of
+reputation, payable at sixty days' sight, and that merchant accepts
+the bill, your factor can get ninety dollars for every hundred of the
+bill by discounting it at the bank, and with that money can purchase
+the articles you direct; but you must then be careful to make due
+remittances to the merchant on whom you draw. If by connecting
+yourself in this manner with any gentleman in trade here you can
+derive any benefit, it will afford me a very sensible pleasure, but as
+to myself, I must again repeat, that I have quitted trade; and I will
+add, that the closing my past dealings, which is now the only private
+object of my attention, requires time, which I cannot spare for the
+purpose; and of consequence it is, with everything else of a private
+nature, very much neglected, to my very great disadvantage.
+
+ I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+REPORT TO CONGRESS ON A MEMORIAL OF THE MERCHANTS OF PHILADELPHIA.
+
+ Office of Finance, May 4th, 1782.
+
+The Superintendent of the Finance of the United States, to whom was
+referred the report of a committee on a memorial of the merchants of
+Philadelphia, and motion thereon, begs leave to report,
+
+That the navy of the United States is not in a situation to afford
+protection to their commerce, nor can it be rendered equal to that
+object for some considerable time, even if the necessary funds could
+be procured. That there remains no mode of obtaining such protection,
+unless from the allies of the United States, or the powers engaged
+with them in war against Great Britain.
+
+That the commerce of these States is of such importance, that it is
+not improbable the Court of France would afford permanent protection
+if in their power; and that in the interim some relief may, perhaps,
+be obtained from the fleets in the West Indies.
+
+The following resolution therefore is submitted; That the
+Superintendent of Finance prepare a statement of the commerce of the
+United States, together with a plan for the protection thereof.
+
+That the Secretary of Foreign Affairs communicate the same to the
+Minister of his Most Christian Majesty, and cause application to be
+thereupon made by the Minister of these States to the Court of
+Versailles; and that the Superintendent, as Agent of Marine, make
+application on the same subject to the Commanders of the fleets of
+France and Spain in the West Indies.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 8th, 1782.
+
+ Sir,
+
+His Excellency, the Minister of France, in a late letter to me has
+officially declared, that in future no sums will be paid to the
+Ministers of the United States in Europe by his Court. It becomes
+necessary, therefore, to make provision for their support here. I
+immediately applied to the Minister of Foreign Affairs for an account
+of the annual salaries payable to his Department. I have received it
+this day, and do myself the honor to enclose a copy. I must take the
+liberty to observe, that the sum is very large, and such as cannot be
+advanced without greatly retrenching from essential services, at least
+in the present moment. It will, I humbly conceive, be necessary that
+arrangements should be taken, so that in future all such salaries as
+are payable to foreign Ministers be advanced in America, and
+negotiated by their respective Agents. This will be honorable to the
+United States, and I should suppose more agreeable to the gentlemen
+concerned.
+
+The Minister of France has also observed, that the accounts between
+his Most Christian Majesty and the United States having become very
+important, by the greatness of the sums advanced and lent, it is
+indispensable that measures be taken to adjust them, and to avoid that
+confusion, which would be introduced by a longer delay. And in
+consequence, he has desired that Congress would transmit to Dr
+Franklin full power finally to settle those accounts, and in the name
+of the United States to execute the proper obligations for securing
+the debt and fixing the periods of payment. To this he adds, that it
+is not expected Congress can do anything towards payment during the
+war, but that they will fix the several epochas at which they shall be
+made.
+
+To a proposition so reasonable, there will, I presume, be no
+objection. The solidity of the observation on which it is founded
+cannot be called in question, and I am induced by it to extend the
+remark a little further. The great sums which remain unsettled and
+undetermined between the French Court and the United States are alike
+unsettled between the latter and their public servants. How the
+accounts may stand I know not, but it is my particular duty to
+observe, that there appears to have been but little received for the
+great sums, which have been expended, and therefore it is highly
+necessary, that the public accounts of these States with their
+servants in Europe be also settled. It shall be my study in future to
+prevent the existence of such accounts, but their magnitude as well as
+other circumstances, makes me extremely solicitous to have them
+adjusted.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES
+
+ Office of Finance, May 9th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose you copies of three accounts, which I
+have this day received from the Controller of the Treasury of the
+United States. Each State will from these accounts perceive what still
+remains for it to do in consequence of the resolutions of Congress, of
+the 18th of March, 1780.
+
+As this is a circular letter, the observations I make shall be
+general, and such as result from a general view of the object. The
+particular application of them, dependent on local circumstances, will
+be made by those to whom such circumstances apply. The resolutions of
+the 18th of March, 1780, were in part directed towards the redemption
+of the old Continental money, and the opinions which may have been
+formed as to the issuing of a new paper medium, the paying of interest
+upon it, and the connexion with relation to the old, are immaterial
+under the present point of view.
+
+Nothing can be more clear and simple than this, that the bills issued
+by Congress for support of the war should be redeemed by taxes. This
+was one capital object of the resolutions, and as to the
+apportionment, I am to presume it was as perfect as the fluctuating
+nature of human affairs will permit, and more especially so, when the
+few lights, which could the obtained, and the various circumstances of
+the several States, are compared with the very variable object of
+depreciated paper, which was then in contemplation. But, admitting for
+argument's sake, that the apportionment was not strictly right; this
+must also be admitted, that to redeem the paper was called for by
+principles both of reason and justice. It was, therefore, a duty of
+the several States to comply with the requisitions of their sovereign
+representative. For any inequalities, either actually existing, or
+which a subsequent change of circumstances might produce, would admit
+of a remedy, but a neglect of the resolutions had the inevitable
+consequence of injuring the public credit, weakening the public
+operations, and risking our very existence as a people.
+
+But however strong the motives, which should have prompted a
+compliance, it will not be disputed that some of the States may have
+been in circumstances not to admit of the exertion, and whether this
+incapacity has arisen from exterior violences, or the defects of
+internal polity, or both, is in one sense immaterial, because the
+eventual consequence is the same. Yet, though charity may for a time
+overlook these defects, it becomes the duty of each State to apply a
+remedy, if the evil be in its nature remediable; and should they
+neglect what is in their power, they must expect complaints from
+Congress, and the servants of Congress from the other States, and from
+their own bosoms the admonitions of conscience, which will become more
+poignant from every moment's delay.
+
+A general view of the accounts now transmitted, will show at a single
+glance, that large sums of the old paper still remain to be provided
+for, and it might, perhaps, have been right in Congress to have fixed
+an ultimate day of redemption for the whole, and charged what remained
+due after that day at forty for one in specie to every deficient
+State. This, I say, might perhaps have been right, if the ravages of
+war and other local circumstances had not required attention and
+forbearance as to some, if not all. But it cannot be denied, that many
+are now in a capacity to call in by taxes their quota of this paper.
+And those who are, should consider what must be the feelings of men,
+who hold it on the faith of so many promises, such repeated
+requisitions, and such sacred bonds of national faith and honor. What
+must be their feelings to find those promises violated, those
+requisitions neglected, and that faith disregarded? Can it be
+expected, that while such flagrant instances of national neglect, to
+call it by no harsher name, are in the view of almost every citizen,
+we can possibly establish the fair reputation so essential to public
+credit?
+
+The plea of inability is not to be admitted, excepting, as I have
+already observed, in some very particular circumstances. Considering
+our country in a general point of view, this paper laying dead is
+already lost, and the only question is, whether that loss shall be
+borne by the whole people or only a part of them. Those who parted
+with it have received the value, and it would be a flagrant
+injustice, that the whole tax for redeeming it should fall on those
+who have received it. Neither can it be supposed, that if any were
+inclined to promote such injustice it would be borne by the sufferers.
+And whether these sufferers are individuals or States, the suffering
+is the same; the sentiment, therefore, must be the same, and so will
+the conduct be which that sentiment shall dictate.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 10th, 1782.
+
+ Sir,
+
+In consequence of the Act of Congress of the 4th instant, I do myself
+the honor to enclose a state of the American commerce, with a plan for
+protecting it. I shall, in obedience to the orders of Congress,
+transmit a copy of this paper to the commander of his Most Christian
+Majesty's fleet in the West Indies, and make the application which I
+am directed to him, and to the commander of the fleet of Spain. I take
+the liberty to suggest for the consideration of Congress, whether any
+application on this subject to the Court of France would not go with
+propriety through the Office of Foreign Affairs.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.[5]
+
+ [5] _May 13th_: This day the Chevalier de la Luzerne had a public
+ audience of Congress, when he announced the birth of the Dauphin
+ of France. I attended at the ceremony, being admitted into the
+ Congress hall within the bar, and I took my place next to the
+ members of Congress, the left of the President, the Minister of
+ Foreign Affairs and the Minister of War next to me. We stood
+ during the whole ceremony, as well also the President and Council
+ of the State of Pennsylvania. When the ceremony was ended, Mr
+ Livingston, General Lincoln, Mr Gouverneur Morris and myself, went
+ to his Excellency, the Minister of France, to pay our compliments.
+ Afterwards we repaired to the City Tavern to an entertainment
+ ordered by Congress, thence to an exhibition of fireworks at the
+ State House, and then to an entertainment given by the Secretary
+ of Foreign Affairs. _Diary._
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, May 16th, 1782.
+
+ Sir,
+
+I have heretofore taken occasion to observe, that the former
+expenditures of the United States were at a medium rate of twenty
+millions of dollars annually, for the support of the war. At the
+present moment, while laboring under a large debt, only eight millions
+have been asked for. It is evident, therefore, that the sum now
+required is as little as can possibly answer the purpose. I venture to
+say that it is not enough. According to the estimates for the year
+1782, which were laid before Congress by the late Board of War, the
+present establishment of the army would require for pay, exclusive of
+the half pay, near three millions and a half, for rations near two
+millions and a half, for clothing, about twelve hundred thousand, for
+forage above three hundred thousand, for the Quarter Master's
+department, (exclusive of articles on hand) above eight hundred
+thousand, for military stores (exclusive of articles on hand) near two
+hundred thousand, for the hospitals (exclusive of medicine and also of
+sundry stores on hand) above one hundred thousand.
+
+If to all these be added the sum of four hundred thousand for the
+Departments of the Pay Office, Commissary of Prisoners, and the
+various other contingencies of service, which naturally and
+necessarily arise, without mentioning the losses, which happen in war,
+here will be an aggregate amount of nine millions, and in this sum
+nothing is estimated for the interest of our debts, for the Marine,
+and for the Civil List, and the Department of Foreign Affairs.
+
+Of the various expenditures, much was to be provided immediately. The
+heavy article of clothing, for instance, was indispensable. Many
+things were to be provided early, in order that the army might
+operate, and the subsistence is to be paid for regularly and
+constantly. Yet the States have not been asked for any money before
+the 1st day of April; and I appeal to them all, whether the supplies
+of money they have afforded me for the last year were such as would
+enable me to provide for the present.
+
+A three months' expenditure was permitted by Congress to elapse,
+before the first payment of two millions was asked from the States;
+but what have they done? While I write this letter near two months
+more are gone forever, and a dishonorable neglect endangers our
+country. Little local objects have postponed those measures, which are
+essential to our existence, so that the most fatal consequences are
+now suspended but by a thread. Should they fall on our heads, this
+solemn protest shall point to the real cause of our calamities. I
+write, Sir, to apprize you of the public danger, and to tell you I
+shall endeavor to fulfil engagements, which I have entered into
+already, that I may quit my station like an honest man. But I will
+make no new engagements, so that the public service must necessarily
+stand still. What the consequences may be I know not, but the fault is
+in the States. They have not complied with the requisitions of
+Congress. They have not enabled me to go on. They have not given me
+one shilling for the service of the year 1782, excepting only the
+State of New Jersey, from which I received five thousand five hundred
+dollars, a few days ago, and this is all that has come to my hands out
+of two millions, which were asked for.
+
+Now, Sir, should the army disband, and should scenes of distress and
+horror be reiterated and accumulated, I again repeat, that I am
+guiltless; the fault is in the States; they have been deaf to the
+calls of Congress, to the clamors of the public creditors, to the just
+demands of a suffering army, and even to the reproaches of the enemy,
+who scoffingly declare, that the American army is fed, paid, and
+clothed by France. That assertion, so dishonorable to America, was
+true, but the kindness of France has its bounds, and our army, unfed,
+unpaid, and unclothed, will have to subsist itself, or disband itself.
+
+This language may appear extraordinary, but at a future day, when my
+transactions shall be laid bare to public view, it will be justified.
+This language may not consist with the ideas of dignity, which some
+men entertain. But, Sir, dignity is in duty, and in virtue, not in the
+sound of swelling expressions Congress may dismiss their servants, and
+the States may dismiss their Congress, but it is by rectitude alone,
+that man can be respectable. I have early declared our situation, as
+far as prudence would permit, and I am now compelled to transgress the
+bounds of prudence, by being forced to declare, that unless vigorous
+exertions are made to put money into the treasury, we must be ruined.
+I have borne with delays and disappointments as long as I could, and
+nothing but hard necessity would have wrung from me the sentiments,
+which I have now expressed.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 17th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose to your Excellency the copy of a
+circular letter, which I have written to the several States. The
+situation which I find myself is extremely delicate. The habitual
+inattention of the States has reduced us to the brink of ruin, and I
+cannot see a probability of relief from any of them. I rather perceive
+a disposition to take money from the public treasury, than to place
+any in it. A variety of causes, which Congress are, I presume
+acquainted with, prevents the collection of taxes, and delays the
+payment of them, even after they are collected. In many States they
+are not laid. I must not conceal from Congress my apprehensions, that
+the idle hopes entertained from the changes of administration in
+Britain will increase that negligence, which is but too prevalent
+throughout the United States.
+
+I might add many reasons, why a call should be made in the present
+critical moment, and it is evident, that such a call should be couched
+in terms so pressing, as to stimulate if possible their sluggishness
+into exertion. But on the other hand, it is evident that if a faithful
+representation of our distressed circumstances should fall into
+improper hands, it would be productive of the most dangerous
+consequences. And when the number of our internal enemies, and the
+designs of our external ones are considered, there can be little
+doubt, that such a letter would be handed about soon after its arrival
+for the illicit purposes of both. At the same time, however, it must
+be considered, that if any fatal consequences should ensue from the
+continued negligence of the States, attempts will be made to justify
+it on the principle, that they were not seasonably apprized of their
+danger.
+
+I am sure I need not take up more of your time, Sir, in showing the
+difficulties with which on the present occasion I am surrounded. Urged
+by them I must entreat the opinion of Congress, whether the letter in
+question be retained or transmitted. I take the liberty further to
+remark, Sir, that the declaration contained in it, purporting any
+intention not to make new engagements, is short of what I am under the
+necessity of doing, for the public departments are now absolutely at a
+stand for the want of money, and many things already commenced I must
+desist from. This cannot be wondered at, when it is considered that
+near five months of the present year have elapsed without my having
+received anything on account of its expenditures, except the trifling
+sum of five thousand five hundred dollars mentioned in the enclosed
+letter, and that sum, calculating our expenses at eight millions
+annually, is about _one fourth of what is necessary to support us for
+a single day_.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, May 17th, 1782
+
+ Sir,
+
+In a letter which I had the honor to write to your Excellency on the
+17th of last month, I mentioned the communications of the Minister of
+France here, by which I was empowered to draw to the amount of six
+millions in monthly instalments of half a million each. He has since
+informed me, that no moneys will be paid by his Court except on my
+draft. It is in consequence of this, that I have drawn the bills
+contained in the enclosed letter to Mr Grand, which is left open for
+your perusal. Your Excellency will be pleased to arrange this matter
+with Mr Grand, so as best to answer the purposes intended. You will
+also be pleased, Sir, to pay over to Mr Grand on my account such
+moneys belonging to the United States as may be in Europe, distinct
+from those to be advanced by the Court for the current year.
+
+I am extremely desirous of having a state of these matters so as to
+know what dependence can be made on the funds, which are at our
+command. You would, therefore, confer upon me a very particular
+obligation by transmitting the best statement in your power. I
+mentioned to your Excellency in a former letter, that I would write to
+you on the subject of your salary, more particularly than I then did,
+but I have since spoken and written to Mr Livingston with relation to
+those matters, and he will, I expect, write to you and to all our
+foreign Ministers very fully.
+
+We have not yet heard anything of the Alliance, and therefore
+conclude, that she must have been delayed in Europe. I hope this may
+have been the case, for if she sailed on the 1st of March, according
+to my orders, she must have met with some unfortunate accident. I hope
+soon to hear from your Excellency. Indeed I persuade myself, that in
+the very critical situation of affairs at present, we cannot be long
+without receiving very important intelligence.
+
+I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, May 17th, 1782.
+
+ Sir,
+
+In my letters of the 28th of March, and 8th of April, I informed you
+of my drafts on you to the amount of five hundred thousand livres. I
+have since that time drawn sundry other bills, all of which you have
+been duly advised of, or will be so by this conveyance.
+
+I am now to inform you, that his Excellency, the Minister of France,
+has given me assurances on the part of his Court, that five hundred
+thousand livres per month, during the year 1782, will be paid on my
+drafts, making in the whole six millions. He has also suggested to me
+the expedient of drawing twelve sets of exchange on Dr Franklin, our
+Minister Plenipotentiary, in favor of my banker, so that the money may
+be in his hands monthly at my order. In consequence therof, I now
+enclose to you twelve bills of exchange on Dr Franklin, all at thirty
+days' sight, and each for half a million. When these bills arrive you
+will present so many of them for acceptance, as that at the end of the
+thirty days the amount shall be equal to the monthly payments above
+mentioned. As for instance, if these bills should arrive in July, you
+will present seven of them for acceptance, because by the time the
+thirty days have elapsed there will be due so many of those monthly
+payments. But in this, as well as in other matters of arrangement with
+the Court, you will take the advice of Dr Franklin and govern yourself
+accordingly.
+
+The several bills which I draw on you I will regularly inform you of.
+After the first month has elapsed you will present another bill for
+acceptance, and so on monthly, presenting each month a bill. I write
+also by this conveyance to Dr Franklin to pay on my account all the
+moneys belonging to the United States in Europe, which may be in his
+possession.
+
+I wrote to Dr Franklin on the 17th of April to inform you, that I
+should draw on Messrs Fizeau, Grand & Co. at Amsterdam, and on Messrs
+Harrison & Co. at Cadiz, desiring that you would direct those houses
+to honor my bills, and take their reimbursement on you, which I now
+confirm. I expect that the five hundred thousand livres which are
+mentioned in my letters of the 28th of March, and 8th of April, will
+be paid out of moneys, which were already in Europe; and indeed, that
+still farther sums were there belonging to the United States, besides
+the monthly payments to be made by the Court as above mentioned. At
+any rate you will be in cash to pay all the bills which I have drawn
+or shall draw. You will take care to transmit me a state of your
+accounts by every opportunity that I may be thereby directed in my
+operations.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, May 18th, 1782.
+
+ Sir,
+
+Our enemies being at length convinced by fatal experience, that it is
+in vain to effect the conquest of America, have now changed the mode
+of attack, and strike at our commerce and our resources. I have no
+doubt, but that eventually they will be foiled in this, as in every
+other attempt they have made, but in the interim between their first
+effort and the period which must elapse, in preparations to obviate
+this plan, we have suffered and must suffer considerably.
+
+The commerce of this country has sustained no severer blow than has
+been hitherto felt, and the effects of it materially influence my
+operations. The merchants deprived of their property cannot command
+money, and of consequence cannot pay bills. I am, therefore, unable to
+command by drafts the money in your hands. My bills do not yet amount
+to a million of livres, and will not I believe exceed that sum when
+this letter goes away. These bills will not come to you before the
+month of July, and the greater part will not be payable until the end
+of September, and even later; but you will be possessed of three
+millions and a half by the first of July, even if you shall have
+received nothing from Dr Franklin on the old accounts.
+
+I am therefore to request that you will make three shipments of one
+hundred thousand crowns each, or six hundred thousand livres, making
+in the whole eighteen hundred thousand livres. I wish it to be sent by
+three different conveyances, for the sake of greater safety, unless
+some very important convoy should offer, in which case I desire an
+immediate shipment of twelve hundred thousand livres. I wish also,
+that the money be invested if possible in gold, because four crowns
+are worth here only four hundred pence, but a louis is worth four
+hundred and fourteen pence, being a difference of three and a half per
+cent. But that you may know the best mode of investing it, I have to
+inform you, that English guineas are worth four hundred and twenty
+pence, half johannas seven hundred and twenty pence, moidores five
+hundred and forty pence, and Spanish pistoles three hundred and
+thirtysix pence.
+
+I shall leave this letter open for the inspection of Dr Franklin, to
+whom I shall enclose it, and I shall request him to obtain for and
+communicate to you such information from the Court as may be necessary
+for your direction in this business. I wish that the shipments of
+money may if possible be on board of the same vessels in which the
+money shall be sent for the use of the French army or navy here. I
+wrote to you on the 3d of December last, requesting you to pay to
+Messrs Couteulx & Co. for account of John Ross two hundred thousand
+livres, and for account of William Bingham one hundred thousand
+livres, to John Holker for account of John Holker fils; conceiving
+that you would be in cash for the purpose, from the loan opened in
+Holland for our use.
+
+I hope before this reaches you, that those sums will have been paid;
+and you will observe it is my wish, that as well those as the bills
+mentioned in my letters of the 9th and 28th of March, should be paid
+out of that loan, but if that cannot be done, you will then make
+payment from any other moneys which may be in your hands.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS LE COUTEULX & CO.[6]
+
+ Office of Finance, May 18th, 1782.
+
+ Gentlemen,
+
+I pray that you will receive my sincere thanks for the accurate and
+punctual manner in which you have performed the business of the United
+States, which I have placed in your hands, and be assured that it
+shall always command my attention. I should have lodged in your hands
+very considerable sums on their account, subject to my disposition,
+but Dr Franklin having recommended to me in a very particular manner
+Mr Grand, whom he had formerly employed, not only for his punctuality
+as a banker, but also for his zeal in the American cause, which he had
+early and warmly espoused, and evidenced his attachment by liberal
+advances of money on the credit of their commissioners, before the
+Court had acknowledged them as a nation, I thought it my duty to
+employ him. But I think it more than probable, I shall have occasion
+for another banker, on particular occasions and negotiations, and I
+shall take the liberty in every such instance to employ you,
+gentlemen, not in the least doubting a continuance of your punctuality
+and attention.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ [6] _May 20th._ This evening I met Mr Madison, Governor Rutledge,
+ Mr Clymer, Mr Lovell, and Mr Root, the Committee of Congress
+ appointed to confer with me on the subject of my letter to
+ Congress of the 17th instant, enclosing an intended circular
+ letter to the States. I laid before these gentlemen a true picture
+ of our present situation, but after much conversation, they
+ appeared to be disinclined to sending the circular letter, and I
+ proposed sending suitable persons to the several States, to make
+ proper representations to the Executives and Legislatures, which
+ they seemed to prefer, and on which they are to consult and report
+ tomorrow morning. _Diary._
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, May 23d, 1782.
+
+ Sir,
+
+The Minister has been so kind as to delay his express, until I could
+write this letter. You mention in yours of the 4th of March, that on
+Friday (then) last, the Minister informed you that we should have six
+millions, paid quarterly, and that you should now be able to face the
+loan office and other bills, and your acceptances _in favor of M. de
+Beaumarchais_.
+
+You are not unacquainted with the disputes which have subsisted with
+respect to M. de Beaumarchais' demand. Whether or not the moneys were
+originally advanced to him by the Court, is not at present to be
+brought into question by me, because it involves many things, which
+are better adjusted by the Court themselves, than by any
+communications to or with others. I am only to observe, that if the
+very considerable sum, which is now payable to that gentleman forms a
+deduction from the pecuniary aid afforded us, the remainder will be
+extremely incompetent to the purposes intended by it. There can be no
+doubt that your acceptances must be paid, but I have always expected
+that you would have been enabled to do it by a special grant for that
+purpose, or by an assumption of the payment on the part of the Court.
+I shall not enter into the mode of arranging this business, but I must
+not refrain from observing, that the great object now is to prosecute
+the war, that the articles which may have been furnished for the sum
+payable to M. de Beaumarchais must long since have been applied and
+expended, that our necessities now are as pressing as they possibly
+can be, and that everything which adds to their weight is extremely
+distressful.
+
+You will observe, Sir, that I have already made my dispositions as to
+the six millions granted for the current year. I shall go on to draw
+as occasion offers, for all the moneys which may be in Mr Grand's
+possession, making allowance for the shipments of money, directed in
+my letters to him. If, therefore, any part of this sum should be
+otherwise disposed of, it might produce the most dangerous
+consequences.
+
+ With respect and esteem, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 23d, 1782.
+
+ Sir,
+
+I do myself the honor to enclose to your Excellency copies of letters,
+the former from Dr Franklin to me of the 4th of March, and the latter
+from the Count de Vergennes to him of the 6th of February. With these,
+I send the best sketch I have been able to form of the state of the
+public moneys; from which Congress will perceive that every sou we
+can command during the year 1782 is already anticipated. They will
+perceive that the pecuniary supplies of 1781 and 1782 amount, after
+deducting the expenses on the loan, to twentyfive and a half millions
+of livres, and that there are, (including the two million two hundred
+thousand livres, appropriated to the interest of Loan Office
+certificates) ten millions, besides the sum expended in Holland, which
+have already passed and are now passing through the hands of Dr
+Franklin, and of which not a livre has been, or ever will be, applied
+to the current service.
+
+If to this be added above two millions and a half due on Beaumarchais'
+bills, we shall have an amount of about twelve and a half millions,
+being at least one half of all the moneys obtained abroad for the
+service of the year 1781 and 1782. And we shall find, that this
+greater half is totally consumed in paying the principal of some, and
+the interest of other debts, which have been contracted before that
+period. I shall make no further comments on these things. They are
+before Congress, and will speak for themselves. I have only to lament,
+that the situation to which our affairs have been reduced is such,
+that the greatest exertion which our ally can make in our favor is
+barely sufficient to satisfy present engagements, and that the
+knowledge of such aid only confirms the inattention of our own
+citizens to those distressing circumstances which it does not relieve.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 27th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose certain information, which I have
+just received in a letter from the Minister of France. I take this
+occasion to mention, that it is some time since M. de la Luzerne
+communicated to me the grant of his Court, which was made in the month
+of December last. I think it my duty to add the persuasion I have,
+that this grant was made on the Minister's representations, and I
+cannot omit testifying to Congress my grateful sense of his conduct,
+and my conviction, that his endeavors have not been wanting still
+further to promote the interests of the United States.
+
+I should earlier have communicated my intelligence of the loan in
+question, but I wished to receive the details, which would enable me
+to judge how much of it was at my disposition. I confess that I did
+not expect they would have been so unfavorable. I was restrained also
+by an apprehension, that the exertions of the States would relax, when
+they should learn that any foreign aid could be obtained; and the
+situation of our commerce was such, that if I had been enabled to draw
+for much larger sums, it would have been of no avail, as I could not
+have got money for the bills.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+_Information mentioned in the above Letter._
+
+The King never promised any subsidy to the United States, and all the
+sums which they have received from him have been lent or freely
+given. All those, which have been advanced after the 6th of February,
+1778, are to be repaid by the United States except the six millions
+given last year. All the rest, whether furnished in money or in value,
+is a debt, which they have contracted with his Majesty.
+
+These advances have been made at the following periods, and are
+payable with interest, conformably to the acknowledgements and
+obligations of Dr Franklin.
+
+ Livres.
+ In 1778, 3,000,000
+ In 1779, 1,000,000
+ In 1780, 4,000,000
+ In 1781, 10,000,000
+ ----------
+ Total, 18,000,000
+
+ From this sum must be taken the
+ gratuitous subsidy granted last year of 6,000,000
+ ----------
+ Remains 12,000,000
+
+ To this must be added, 1st the
+ produce of the loan in Holland, 10,000,000
+
+ 2dly, The loan made by his Majesty for the
+ service of the current year, 6,000,000
+ ---------
+
+ Total of the capital of the debt contracted
+ by the United States with his
+ Majesty, 28,000,000
+
+I am ordered, Sir, to renew to you the demand, which I had the honor
+to make before, to the purport that Congress should authorise Dr
+Franklin to consolidate the principal and interest of that debt, by an
+obligation in proper form. You are so firmly resolved, Sir, to
+preserve the order you have introduced into your department, that it
+would be superfluous to reiterate to you the assurance, that his
+Majesty will under no pretext exceed the sum of six millions, which he
+has determined to advance to the United States for the current year.
+This exactness, which is in all cases indispensable, has become still
+more so now, that the enemy seem determined to adopt a system, which
+obliges us to turn the greatest part of our resources to a marine. I
+am persuaded, Sir, that you can have no doubt as to the interest of
+Loan Office certificates, and that you will not consider it as being
+at our expense, seeing that no engagement of that sort has ever been
+taken by us. If bills for this interest should continue to be
+forwarded, those who draw must provide for the payment of them.
+
+ LUZERNE.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, May 29th, 1782.
+
+ Dear Sir,
+
+I do myself the honor to enclose you copies of two Acts of Congress,
+one of the 5th of June, and the other of the 18th of June, 1779,
+relating to the affairs of M. de Beaumarchais.
+
+You will observe, Sir, that you were authorised to pledge the faith of
+the United States to the Court of Versailles for obtaining money or
+credit to honor the drafts on you. There is a mysteriousness in this
+transaction arising from the very nature of it, which will not admit
+of explanation here, neither can you go so fully into an explanation
+with the Court. M. de Beaumarchais certainly had not funds of his own
+to make such considerable expenditures; neither is there any reason to
+believe that he had credit. If the Court advanced money it must be a
+secret; but there would be no difficulty in giving an order in your
+favor for the sum necessary to pay those bills, and, therefore,
+measures might be taken to obtain from him the reimbursement of any
+sums he might have received. Consequently, there would be no actual
+advance of money made, as the whole might be managed by the passing of
+proper receipts from you to the Court, from M. de Beaumarchais to you,
+and from the Court to him.
+
+I wish that you would apply on this subject and get it adjusted. The
+diverting from a loan, for the service of the current year, so
+considerable a part as that due to M. de Beaumarchais, will defeat the
+object for which it was granted. It ought not, therefore, to be done
+if possible to be avoided.
+
+ With respect and esteem, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO DANIEL CLARKE.
+
+ Office of Finance, May 30th, 1782.
+
+ Sir.
+
+I received your letters of the 7th, 9th, 14th, 18th, and 21st of May.
+The resolutions of the House of Delegates, passed on the 20th, have
+been submitted to Congress, and they have referred the matter to Mr
+Rutledge, and Mr Clymer, two of their members, who are going on
+special business to the southward. Your letters contain a great many
+particulars, which I shall briefly enumerate, and take notice of;
+many of them are of a private and personal nature, and therefore ought
+not in any case to have influenced the determinations on a matter of
+great public importance. I should pay no attention to them, if I were
+not persuaded, that the design is not so much to injure me, as to
+involve the national affairs committed to me.
+
+I find there are made against me personally, the following charges.
+
+1st. That I have robbed the Eastern States of their specie.
+
+2dly. That I am partial to Pennsylvania, being commercially connected
+with half the merchants of Philadelphia.
+
+3dly. That I am partial to the disaffected.
+
+4thly. That I have established a bank for sinister purposes.
+
+5thly. That my plan and that of Pennsylvania, are to keep Virginia
+poor, and
+
+6thly. That with the Secretary of Congress and Mr Coffin I am engaged
+in speculation.
+
+As to the first point, I believe the Eastern States have a very
+different opinion of the matter, although there may be one or two
+persons in some part of those States, who from their great latitude of
+conscience, would not scruple to assert what they know to be false.
+Those who make and respect such assertions, must be content to pass
+for the authors and inventors of untruths, with design to injure the
+public service and sow dissensions among the States. I have not
+received from the Eastern States, any more than from the Southern
+States, _one shilling of specie_, since I was appointed to my present
+office, although I have sent very considerable sums from hence, both
+eastward and southward, as the exigencies of the service required.
+
+As to the second point, that I am commercially concerned with half the
+merchants of Philadelphia, if that were as true as it is false, the
+conclusion, that I am partial to Pennsylvania would by no means
+follow. A merchant, as such, can be attached particularly to no
+country. His mere place of residence, is as merchant perfectly
+accidental, and it would be just as reasonable to conclude, that an
+American residing at L'Orient, and trading to China, must be partial
+to the French and Chinese. I know that this story of my partiality to
+Pennsylvania has been very assiduously circulated, and has obtained an
+extensive currency. It was supposed that I must be partial to
+Pennsylvania, because I reside in it. The assertion therefore was
+made, and the contracts I had entered into were brought as the
+evidence to support it. I have received from Pennsylvania, for the
+service of the last year, one hundred and eighty thousand dollars,
+besides a warrant on their treasury for near ninety thousand, which is
+not yet paid. The contracts in Pennsylvania have not amounted to that
+sum. Is there a State in the Union, which can say I received from them
+one shilling for the last year? There is not one. But I can
+demonstrate that while I was charged with this partiality, I had
+exhausted my credit, and supplied every shilling of money, which I
+could command from my private fortune, to support and succor _the
+Southern States_. But this was not from a partiality in their favor,
+for I will neither endeavor to ingratiate myself with them, on such
+principles, nor subject myself to the ignominy of just reproach from
+others. It was for the general good.
+
+That I am partial to the disaffected is among those threadbare topics
+of defamation, which have been so generally applied, that they have
+lost their effect. But I have remarked, that this particular aspersion
+is generally cast on those who least deserve it, and by those who are
+in a fair way of becoming disaffected themselves. I am not very sorry
+for this charge, because it shows, that while I have inveterate
+enemies, they have nothing to allege against me, and must resort to
+the regions of fiction for the ground of calumny.
+
+That I have established the bank I shall confess. That bank has
+already saved America from the efforts of her avowed, and the
+intrigues of her concealed enemies; and it has saved her from those,
+who, while they clamor loudly against the administration for doing so
+little, sedulously labor to deprive it of the means of doing anything.
+The bank will exist in spite of calumny, operate in spite of
+opposition, and do good in spite of malevolence. If there be sinister
+purposes in view, it must be easy to show what they are. The
+operations of a bank are such plain matters of arithmetic, that those
+who run may read. There is nothing of mystery, disguise, or
+concealment. If, therefore, these sinister views cannot be shown, (and
+I know that they cannot) that defect of proof, after the charge made,
+is itself a proof that the thing does not exist. But the matter does
+not terminate here. A groundless unfounded opposition against measures
+of public utility, must proceed from some cause. If it proceed from an
+opposition to the public interests, their conduct is dangerous; but if
+it proceed from aversion to me, I pity them.
+
+That I should, or that Pennsylvania should have a plan to keep
+Virginia poor, is a strange assertion. I believe that Pennsylvania
+will probably be rich, the soil and climate are good, and the people
+are quiet and industrious. Their rulers also begin to be sensible of
+their true interests. They encourage commerce, have laid aside all the
+idle systems of specific supplies, and content themselves with laying
+money taxes. There can be no doubt but that such a people must become
+rich. On the other hand, if Virginia, or any other State, be poor, it
+must be their own fault. Prudence, diligence, and economy, promote
+national prosperity; and vice, indolence, and prodigality, involve
+national ruin. I am so far from wishing to impoverish Virginia, that I
+have constantly labored, both in my public and private applications to
+bring about those measures, which are calculated to make her wealthy
+and powerful. In the moment of cool reflection this will be
+acknowledged; whenever my measures are adopted, it will be known, and
+in that moment those who from ignorance, or wickedness, have opposed
+themselves to their country's good, will be known and despised. The
+charge of speculating, in conjunction with the Secretary of Congress
+and Mr Coffin, is one of those foolish things, which are not worth an
+answer. The whole business was known to the General, and after him, to
+a committee of Congress, before anything was done.
+
+You tell me further, that there are jealousies and resentments against
+Congress, for a design to curtail the territory of Virginia; that it
+is alleged no money can come into the country, while bank notes and
+bills on Philadelphia will purchase tobacco; and that the enemy having
+failed to subdue Virginia by force, would now try the arts of
+seduction, wherefore great care ought to be taken in preventing any
+intercourse with them. As to any design in Congress to curtail
+Virginia, if there be such, I know nothing, of it. Congress will
+undoubtedly pursue the line of justice, and might be justly offended
+were they charged with that design, which you say has offended
+Virginia. There was a time when Pennsylvania clamored loudly against
+Congress. It impeded the public service, and injured the reputation of
+Pennsylvania, without producing any good, much less a counterbalance
+for the evils, which it did produce. Happily all those heats have
+subsided, and Pennsylvania is now, what I hope Virginia will soon be,
+the zealous supporter of Congress.
+
+The means of bringing money into a country are very simple, being
+nothing more than the creating a demand for it. If every man be
+obliged to get some money, every man must part with something to get
+money. This makes things cheap, and those who have money always choose
+to expend it where things are cheapest. But what is the predilection
+in favor of specie? If bank notes answer the purposes of money the man
+who receives them has every benefit, which he could derive from
+specie. If they will not answer those purposes, no man will receive
+them; and then Virginia will not be troubled with them. If money is
+due from Virginia to Pennsylvania or Maryland, it must go thither, and
+the only way to get it back again is to sell something cheaper than
+Pennsylvania or Maryland will sell it. As to any profit made by the
+bank in issuing their paper, gentlemen in Virginia may easily share it
+by purchasing stock, which can be had here for the subscription and
+interest.
+
+That the enemy have been foiled in their attempts to subdue Virginia
+is true, and when we recollect the means by which they were foiled,
+it will not only obviate the charges of partiality, but show the
+advantages of unanimity; and ought to become a motive to cultivate
+harmony and excite exertion. That the enemy will try the arts of
+seduction I verily believe, or rather that these arts have been tried,
+but I do not believe they have the will or the power to buy many. It
+will sufficiently answer their purposes, if they can promote disunion
+among us, because our concord is our only safety. To produce disunion
+nothing more is necessary than to set at work a few turbulent spirits.
+Neither do I see that they need go at the trouble of sending ships
+into the harbors of the several States, because such negotiations may
+be accomplished without that trouble or parade.
+
+You tell me that the Executive of Virginia refused the passports,
+because they deemed the commerce and intercourse with the enemy to be
+dangerous. There can be no doubt, that a commerce with the enemy is
+not only dangerous but highly reprehensible, and if the transaction in
+question could be considered as a commerce of that sort, I would
+readily join in the censure. But if there was a commerce, it was by
+the capitulation, and the present object relates only to the mode of
+paying a debt already contracted under that solemn agreement.
+
+You tell me, also, that it is the Governor's opinion, that the State
+should have the benefit resulting from the passports, because the
+undoubted power of granting such passports is in the State; and in
+another letter you say it has been urged in argument, that Congress
+have no right to grant the passports. As the right is thus brought in
+question, it is to be presumed, that should that right be in Congress,
+the Governor's argument must operate in their favor. If I am rightly
+informed, their right on this occasion is not only unquestionable, but
+it is exclusive; and I am told that numerous instances have occurred
+in which vessels having passports from one State have been captured by
+the privateers of another State, and been adjudged lawful prize. Judge
+Griffin, who is now in Virginia, can doubtless give information on
+this subject, and if one could be allowed to determine where the right
+is from where it ought to be, there can be no doubt but that it must
+be in Congress. If this be so, then the assertions about delivering
+the rights of Virginia into the hands of Congress, must be considered
+as nothing more than mere flowers of rhetoric, which are very good to
+please an audience, but ought not to influence or convince a
+legislative body.
+
+How it can be said, that these passports contravene the resolutions of
+Congress for confiscating British manufactures within the United
+States, I am at a loss to conceive, and shall be, unless it can be
+proved, that tobacco is a British manufacture. For I cannot suppose,
+that it is intended to confiscate that property, which, having been
+secured by the capitulation, is under the protection of the law of
+nations, which law must always be taken notice of and respected by the
+municipal law of every civilized country. As to the laws of Virginia,
+which may be contravened by it, I cannot speak decidedly, but I have a
+pretty strong reason to doubt the truth of this assertion, and it will
+presently be assigned. But of all things in the world the most
+ridiculous is the assertion, that this would give cause of complaint
+to the King of France. There is something of the same kind in the
+resolutions of the Delegates, which I will now consider; observing
+beforehand, that the objection would come rather unfortunately, should
+it be made by men, whose zeal for the honor and interest of his Most
+Christian Majesty has never shown itself, except in the present
+moment, and then by exciting discord among his allies.
+
+The resolutions, being the act of a respectable body, are deserving of
+respect, and shall meet with it from me. But I must take the liberty
+to differ from them in some of their positions. It is resolved first,
+that allowing the capitulants to export tobacco is not _warranted_ by
+the capitulation. Much of what follows depends on the equivocal sense
+of the word _warranted_. If by that word is meant enjoined, or
+directed, the position is just, but if the idea to be conveyed is,
+that such exportation is not _permitted_, then the position is untrue.
+The exportation is very clearly permitted by the capitulation, because
+the capitulation does not prohibit it, nor indeed say anything about
+it. But in a day or two after the capitulation an agreement was made
+for the purchase of goods payable in tobacco, which is now sanctioned
+by the Delegates in the last of their resolutions. Clearly, therefore,
+the exportation of tobacco in payment for British goods, is (in the
+judgment of the Delegates) _permitted_ by the capitulation.
+
+The second resolution seems to go upon a mistake. The Acts of Congress
+for confiscating British manufactures, as I have already observed in
+another place, cannot, I should imagine, be contrary to the laws of
+the Commonwealth, or else it would not have been permitted in another
+instance, for the Delegates cannot be supposed to intend a breach of
+the law, and still less can they be supposed to mean, that it was
+lawful for the general and the State Agent to do what it is not lawful
+for the United States in Congress to do.
+
+The third resolution, quoting a part of an article in the treaty of
+commerce, appears to me to be rather inconclusive. The object of that
+article was to make provision in a case which might happen, when one
+of the high contracting parties was at peace, and the other at war,
+which is not the case at present. The sense which France entertains on
+this subject may clearly be learnt from the various capitulations
+granted to the conquered Islands; and if I am not much misinformed the
+sense of Virginia on this very question of exporting tobacco may be
+found, by consulting sundry instances of the kind subsequent to the
+capitulation of York.
+
+The fourth resolution is a conclusion drawn from the three preceding,
+and says that the capitulation does not warrant the enemy to export
+tobacco, and that such exportation would be contravening the
+regulations of the United States, and contrary to the laws of the
+Commonwealth, wherefore the vessels ought not to be permitted to load.
+The premises on which this conclusion is founded being unsupported,
+the conclusion itself must fall, or else the next succeeding
+resolution ought to be revoked.
+
+The industry which you say has been used on this occasion would not
+have surprised me, if our affairs had been in such train, that the
+country was entirely out of danger. But under our present
+circumstances, it both astonishes and afflicts me, not for myself, but
+for the public. Men may flatter themselves, that all is safe and well,
+and endeavor to shrink from the public burdens and embarrass the
+public operations, but the consequence is clear, and certain. The
+enemy know they cannot conquer, and therefore seek to divide us.
+Convinced that the Northern and Eastern States cannot even then be
+subdued, their ultimate ambition now is to subjugate those to the
+southward, and the only means under heaven of preventing it is by
+unanimity. That the other States should be plunged into hasty
+measures, pregnant with disunion, might have been expected, but that
+any inhabitants of a State, deeply interested to pursue the contrary
+conduct, should be so blind both to the duty and interest of that
+State will scarcely be believed hereafter, and could not have happened
+now, but from causes which would bear a harder name than I shall give
+them.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 31st, 1782.
+
+ Sir,
+
+I perceive that on the 29th instant Congress resolved, "that the
+salaries and allowances to which the public servants of the United
+States are, or shall be entitled, be in future paid by the
+Superintendent of Finance, and of the moneys which shall from time to
+time be in his hands, and that the said public servants be authorised
+to make quarterly drafts on him for that purpose." The tenor of this
+resolution would, I believe, give to every officer of the United
+States, both civil and military, the right of drawing upon me, which
+would be liable to this objection among many others, that I should
+frequently be obliged to protest the bills for want of funds to
+discharge them. If, therefore, the object of the resolution was to
+provide for the foreign servants only, it might, perhaps, be proper to
+make some alteration in the terms.
+
+But I would submit to Congress whether a better mode might not be
+devised for payment of the salaries in question. It will tend greatly
+to simplify the public accounts if those of each Department be brought
+under one separate head, whereas if bills are to be drawn by every
+public officer much confusion would be introduced, and forged bills
+might be paid without a possibility of detecting the forgery. The
+present mode which I have adopted is, that the accounts of each
+Department of the civil list be made up and settled at the treasury
+quarterly, and that a warrant issue for the amount. If this mode be
+pursued with respect to the Department of Foreign Affairs, the moneys
+may be remitted to those who are abroad by the Secretary of Foreign
+Affairs, until they shall have appointed their respective agents to
+receive it for them here. This will not only simplify the accounts,
+but be of great use to the parties, because in some cases they may be
+unable to sell their bills on this country at all, and in others they
+must suffer a considerable loss. And if obliged to send such drafts on
+their own account to obtain payment of their salaries, much time may
+be lost by delay in tedious passages and other accidents, and of
+course they will be exposed unnecessarily to inconveniences and
+disappointments.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE OLNEY, OF RHODE-ISLAND.
+
+ Office of Finance, June 1st, 1782.
+
+ Sir,
+
+I have received your favor of the 13th of May last, enclosing an
+account of moneys you had received. The particular details you have
+entered into are a pleasing circumstance to me, as they show your
+accuracy and attention; but as such returns will consume much time and
+be of no correspondent utility, it will not be necessary to continue
+them; but in general state to me the amount of cash received, the
+amount of cash exchanged, the amount of cash in hand, the amount of
+bank notes in hand, and the amount of my notes in hand.
+
+It would be of great use to the State that the special account of the
+money received from each collector should be published; and when they
+place you in the situation required by Congress, it will form a part
+of your duty. In the interim you had better avoid any discussion on
+the subject, which may lead to disagreeable altercation. If the sum
+total received from each collector were published, in order to render
+the system complete it would be proper, that every such collector
+should be obliged to deposit, in some place within the circle of his
+collection, such account of his receipts _for the public inspection_,
+that every man might see whether the moneys he had paid were fairly
+delivered over.
+
+You will do well to explain this whole system to men of discernment in
+your legislature. My object in this branch of administration is to
+enable each individual man to trace the money he pays, from his own
+pocket into the public treasury. To this I shall add accounts of equal
+notoriety, by which every man who can read (being previously informed
+as above of the sum total of receipts) may perceive the manner in
+which the public treasure is expended and appropriated. A similar line
+of conduct will be pursued with respect to all funds which may be
+granted for liquidation of the national debt.
+
+Finally, when all the world can perceive that our revenue is equal to
+our expenditure, and that new revenues are devising, and the old daily
+placing in a better state of collection, our credit will be firmly
+established; that will enable the public to command money in any
+emergency, both at home and abroad; that again will put us in a
+situation to make active, vigorous exertions, and thus we shall come
+to be beloved by our friends, feared by our enemies, and respected by
+all mankind. In this natural progress and order of things, I must
+expect of the several States, as the servant of the United States, a
+revenue ample in its extent, punctual in the payment, and absolutely
+at my disposition. In return for such grants the States are to expect
+from a Superintendent of Finance, vigilance, integrity, order and
+economy. Should he be deficient in these duties he will deserve to be
+removed and punished. Should the States be deficient they must allow
+him to complain, they must expect him to remonstrate, and finally they
+must not be surprised if their negligence, boding ruin to their
+country, be pointed out, and exposed, and reprehended.
+
+ Your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CARON DE BEAUMARCHAIS TO ROBERT MORRIS.
+
+Translation.
+
+ Paris, June 3d, 1782.
+
+ Sir,
+
+The health of poor Francy not yet permitting him to hazard another
+voyage to America, I find myself obliged (to my very great loss and
+regret) to postpone the hope of closing and settling all my accounts
+with the General Congress, until he shall have recovered sufficient
+strength for his voyage; he alone being able to resume the thread and
+instructions of an affair, which he has already pursued with so much
+assiduity during three years.
+
+From one merchant to another, the extract of the account adjusted in
+France by the person authorised, who has ordered and vouched all my
+advances, and which I have the honor herewith to address to you, would
+be sufficient for the entire settlement of my account; but my business
+lies with an association of United States, who have intrusted the
+administration of their most valuable interests, to an assembly of
+citizens, to a General Congress, the members of which are continually
+changed, and as continually liable to view transactions of the oldest
+date, and those which have been most thoroughly investigated at other
+times, with the same uncertainty and ignorance of circumstances, as if
+they were new events. From whence arises the necessity of causing my
+accounts to be adjusted and settled by the same agent, who has already
+presented and discussed them, agreeably to the vouchers in his
+possession; which M. de Francy will do as soon as his health will
+permit him to undertake a voyage at sea.
+
+In the meantime, Sir, I have the honor to address to you a faithful
+abstract of my accounts, as they have been settled by Mr Deane, with
+whom alone, on behalf of the General Congress, I treated. His
+misfortunes, the malice with which his character, naturally mild and
+uniform, has been aspersed, and the complaints which I have heard in
+this country against certain of his writings, (of which I have not yet
+seen any) since the English papers made them public, have not changed
+the opinion I had formed of him; and I will always do him the justice
+to say, that he is one of those men, who have contributed most to the
+alliance of France with the United States. I will even add, that his
+laudable endeavors in the most difficult times merited, perhaps,
+another recompense. I see there are intrigues _among Republicans, as
+well as in the Courts of Kings_. This digression, (which a
+compassionate feeling for a man, worthy of a better lot, forces from
+me in writing to you, to you, Sir, who have loved him as I do,) this
+digression excused, I resume my affair; and I request of you, Sir, to
+engage Congress to assist me by the very first opportunity, with bills
+of exchange, such as the first which I received in 1779. Though they
+are not yet payable, and though I have been obliged to undergo the
+heaviest losses in order to make them serviceable, I cannot support
+the weighty burden of my credit to America, (with which alone I should
+be able to settle my debts in Europe,) without having, at least, an
+object representative of this said credit in my hands. And neither the
+Congress nor I should look too minutely to the losses that I sustain
+in the negotiation of this paper. It is one of the events, one of the
+indispensable consequences of the nature and situation of things. Have
+then the justice, Sir, to remit to me as speedily as possible, if not
+the whole of my account, at least a large part of what is due to me
+by Congress in bills of exchange, reserving what may be objected to in
+the account and its full proof, until Francy may be able to repair to
+Philadelphia. My very embarrassed situation will cause me to receive
+this strict justice from Congress as a favor, and I shall be under the
+greatest obligation to you for it.
+
+Receive, Sir, all my congratulations on the merited confidence which
+your fellow citizens have placed in you. No man can entertain a
+greater esteem for your person and superior talents than I do. Messrs
+De Francy and Deane have taught me to become acquainted with you; and
+it is after the most deliberate affection that I subscribe myself,
+with the most respectful regard and acknowledgement, Sir, your
+obedient servant.
+
+ CARON DE BEAUMARCHAIS.
+
+ * * * * *
+
+ THE FOLLOWING ARE THE ABSTRACTS MENTIONED IN
+ THE PRECEDING LETTER.
+
+_Dr the Honorable Congress of the United States in Account Current
+with Caron de Beaumarchais._
+
+ 1776, _Livres._ _s._ _d._
+
+ Sept. 21, To so much paid Messrs Du Coudray & Le Brun, 3,600
+ Oct. 25, To ditto paid ditto, 4,400
+ Nov. 6, To ditto paid ditto, 7,200
+ " 12, To ditto paid Mr Silas Deane, 20,000
+ " 18, To ditto paid Messrs Du Coudray & Le Brun, 12,000
+ " 21, To ditto paid ditto, 12,000
+ " 25, To ditto paid the Chevalier Prudhomme de Bore, 2,400
+ " 27, To ditto paid ditto, 2,100
+ " 25, To ditto paid the Chevalier Prudhomme de Bore, 2,400
+ " 27, To ditto paid ditto, 2,100
+
+ Dec. 4, To ditto paid Messrs Du Coudray & Le Brun, 53,541 13 4
+ " 5, To ditto paid ditto, 4,800
+ " " To ditto paid Mr Silas Deane, 2,400
+ " 6, To " " M. de Vrigny, 600
+ " 12, To " " Mr Rogers, 240
+ " 13, To amount of the cargo and expenses to
+ departure of the ship _Amphitrite_, insurance,
+ freight, and commission on
+ the outfit, 979,493 8 3
+ " 14, To so much paid M. de Goy, 240
+ " 26, To ditto reimbursed to M. de Montieu
+ per Silas Deane, 411 16
+ " " To commission at 1 per cent on the above
+ payments made to Mr Deane, 228 1
+ 1777,
+ Jan. 15, To amount of the ship _Seine_, her cargo,
+ charges to departure, insurance, freight,
+ and commission on the outfit, 784,631 2 10
+
+ Feb. 5, To amount of the cargo and charges to
+ the departure of the ship _Mercury_, insurance,
+ freight, and commission of
+ the outfit, 878,758 13
+ " 15, To ditto of the ship _Amelia_, 241,068 15 3
+ " 27, To so much paid M. de Goy, 800
+ " " To commission at 1 per cent on the several
+ payments as above made to Messrs
+ Du Coudray, Le Brun, and others, 1,039 4
+ May 10, To amount of the cargo and expenses to
+ departure of the ship _Teresia_, insurance,
+ freight, and commission on the
+ outfit, 1,062,853 17 6
+ " 15, To ditto of the ship _Mère Babi_, 89,460 1
+ June 10, To " " _Maria Catherina_, 166,217 6 3
+ Sept. 25, To " " _Flamand_, 630,195 14
+ Nov. 26, To ditto of an account of expenses incurred
+ at St Doiningue, by M. Carabasse,
+ relative to the cargoes of the ships
+ _Teresia_ and _Amelia_, 122,882 7 3
+
+ 1778, _Livres_ _s._ _d._
+ May 27, To amount of a second account, ditto 23,037 11 10
+ 1781,
+ April 6 To commission at
+ 1/2 per cent on 25,000)
+ 30,000) = 199,000 in
+ 144,000) bills on Paris, 995
+ " " To amount of the account of interest
+ at 6 per cent per annum, as
+ particularized hereafter, 1,167,250
+ -------------------
+ Livres, 6,274,844 11 6
+ -------------------
+
+ _Contra Cr._
+ 1777, _Livres_ _s._ _d._
+ Aug. 23, By net proceeds of the returned
+ cargo of the _Mercury_, 18,728 7
+ 1778,
+ Feb. 27, By ditto, ditto of the
+ _Amphitrite_, 135,338 8 9
+ April 17, By remittance to Mr Francy of
+ 20,000 dollars at 4 for 1 is, at
+ 5 livres tournois for a dollar 25,000
+ May 26, By ditto of 24,000 dollars at
+ ditto ditto 30,000
+ Oct 22, By net proceeds of the returned
+ cargo of the _Teresia_, 124,139 9 6
+ 1779,
+ May 5, By ditto of the _Amelia_, passed
+ on _memorandum_, waiting the
+ final of accounts of M. Carabasse, the
+ shipper in this affair.
+ June 26, By net proceeds of 231 hhds tobacco per
+ the _Fier Rodrigue_, reduced to
+ to 115-1/2 on account of the freight
+ being one half, 74,905 3 9
+ 1780,
+ June 25, By remittances on Dr Franklin to the
+ 15th of June, 1780, viz.
+ 74,000)
+ 72,000) = 144,000[7]
+
+ _Livres._ _s._ _d._
+ 1781,
+ April 6, By balance due to me from the honorable
+ Congress, 5,722,723 2 6
+ -------------------
+ Livres, 6,274,844 11 6
+ ------------------
+
+ Errors and omissions excepted.
+
+ Paris, April 6th, 1781.
+
+ [7] There appears to be an error in adding up this sum, viz.
+ 74,000 and 72,000, amount to 146,000.
+
+ * * * * *
+
+_Dr the Honorable Congress in their new Account Current with Caron de
+Beaumarchais_.
+
+ 1781, _Livres._ _s._ _d._
+ April 6, To balance due to me on the preceding
+ account, 5,722,723 2 6
+ 1782,
+ May 18, To commission at 1/2 per cent on 144,000
+ and 2,544,000 making 2,688,000, in
+ bills on Paris, 13,440
+
+ " " To amount of interest account at 6 per
+ cent per annum, as particularized
+ hereafter, 382,698 18
+
+ " " To commission at 2-1/2 per cent to M. de
+ Francy on the returns from America,
+ viz.
+
+ On 552,121 9 amount of the returns to the
+ credit of their account settled the 6th
+ of April, 1781,
+
+ 2,882,332 10 9 amount of the returns to
+ the credit of the account settled this
+ day,
+
+ 3,434,453 19 9 at 2-1/2 per cent, 86,861 6
+ ---------------
+ Livres, 6,204,723 6 6
+ ---------------
+
+_Contra Cr._
+
+ 1781, _Livres._ _s._ _d._
+ June 25, By remittances on Dr Franklin to the
+ 25th of June, 1781, 144,000
+
+ _Livres._ _s._ _d._
+
+ July 20, By net proceeds of 150 hhds tobacco per
+ the ship _Peru_, reduced to 75, on account
+ of the freight being one half, 34,991 19
+
+ " " By ditto of 176 hhds tobacco per the _Two
+ Helenas_, reduced to 88 by the freight; 49,826 19
+
+ " " By ditto of 32 hhds ditto per _Good Man
+ Richard_, reduced to 16 by the freight, 6,141 5
+
+ " " By ditto of 188 hhds ditto per the _Polly_,
+ reduced to 125-1/3, the freight being
+ one third, 55,872 14 9
+
+ Oct. 1, By ditto of 159 hhds ditto per _Fier Rodrigue_,
+ reduced to 79-1/2 by the freight at
+ one half, 47,499 13
+
+ " " By 15 hhds ditto per the _Jean_, and which
+ were lost, this vessel having foundered
+ at sea, (for _memorandum_.)
+
+ 1782
+ May 18, By remittances on Dr Franklin to the
+ 25th of June, 1782, passed here in
+ anticipation, amounting to 2,544,000
+
+ " " By balance due to me from the Honorable
+ Congress, 3,322,390 15 9
+ -------------------
+
+ Livres, 6,204,723 6 6
+ -------------------
+
+_Dr the Honorable Congress_
+
+ 1782,
+ May 18, To balance due to me on the above account, 3,322,390 15 9
+
+ Closed the above account, as well debit as credit, of the sum of
+ six millions two hundred and four thousand seven hundred and
+ twentythree livres, six sols, and six deniers tournois; on which
+ the Honorable Congress of the United States of America owe me as
+ balance the sum of three millions three hundred and twentytwo
+ thousand three hundred and ninety livres, fifteen sols, and nine
+ deniers tournois.
+
+ * * * * *
+
+_Dr, moreover, the Honorable Congress._
+
+To amount of the drafts of General Lincoln, drawn at Charleston, in
+the month of March, 1780, on Samuel Huntington, President of Congress,
+to the order of M. de Francy, for the purchase of the cargo of the
+corvette the _Zephyr_, sold by Captain Mainville to the said General
+Lincoln, Commander of the Southern army of the United States, for the
+sum of two hundred and twentyfour thousand three hundred dollars,
+(this for _memorandum_,) for which two hundred and twentyfour thousand
+three hundred dollars I am yet to be credited, no return having been
+made to me.
+
+Errors and omissions excepted.
+
+ CARON DE BEAUMARCHAIS.
+
+ Paris, May 18th, 1782.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, June 4th, 1782.
+
+ Sir,
+
+I have received your Excellency's letters of the 17th and 25th of May,
+with the enclosure. I am much obliged by the attention paid in your
+circular letter to the situation of my department. I am very sorry to
+inform you that it is really deplorable. I with difficulty am enabled
+to perform my engagements, and am absolutely precluded from forming
+any new ones. I have therefore been under the very disagreeable
+necessity of suffering the public service to stand still in more lines
+than one. I have been driven to the greatest shifts, and am at this
+moment unable to provide for the civil list.
+
+I can easily suppose that military men should murmur to find the
+salaries of the civil list more punctually paid than their own. To
+enter into arguments on this occasion will be unnecessary, for I am
+persuaded that your Excellency must be of opinion with me, that
+unless the civil list is paid neither civil or military can exist at
+all.
+
+I am well persuaded of your Excellency's desire to promote the success
+of those measures I have taken, because I am sure you are convinced
+that their tendency and my intentions are all directed to the public
+good. Indeed, my Dear Sir, you will hardly be able to form an adequate
+idea of the earnestness with which I desire to relieve you from the
+anxieties you must undergo. But when the several gazettes shall have
+announced the sums received for this year's service, and I am well
+convinced that the whole did not on the 1st of June amount to twenty
+thousand dollars; when it is recollected that our expenses at the rate
+of eight millions annually, are near twenty thousand dollars a day;
+and when it is known that the estimates on which the demand was
+founded do not include many essential branches, among which the Marine
+and Foreign Affairs are to be numbered; surely it cannot be a matter
+of surprise that the army are not paid; surely the blame is to fall on
+those from whose negligence the evil originates. But I will not give
+you the pain of hearing me repeat complaints, which you know to be but
+too well founded.
+
+ I pray you to believe, that I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO EDWARD CARRINGTON, IN VIRGINIA.
+
+ Office of Finance, June 6th, 1782.
+
+ Sir,
+
+I have received your letter of the 26th of May, from Richmond. It does
+by no means surprise me, after some other things which have happened,
+that an opposition is made to receiving my notes in taxes. I am
+indifferent about the event of those deliberations, which may be had
+on that subject. If they choose rather to tax in coin, I shall be
+content, for the coin will answer my purposes as well as the notes,
+which were only intended to anticipate the revenue, and supply that
+want of money, which is not a little complained of, and particularly
+in Virginia. The views of those who oppose their circulation, I will
+not guess at, but I hope they may be virtuous and honorable motives,
+in which case, I shall only pity a want of understanding to discover
+the true interests of their country.
+
+ I am, your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE SECRETARY OF FOREIGN AFFAIRS.
+
+ Office of Finance, June 7th, 1782.
+
+ Sir,
+
+I received this morning the letter you did me the honor to write on
+the 6th. Congress have asked from the several States a five per cent
+duty on goods imported, and on prizes and prize goods, as a fund for
+paying the principal and interest of their debts. This fund, when
+granted, will not be sufficient, and it is not yet granted by all. I
+expect, however, that the requisition will speedily be complied with.
+I shall not cease urging it, and also such further revenues as may be
+sufficient for the purpose. When they shall have been obtained, they
+will be duly applied in liquidation of the public debts; but until
+that period arrives, neither the principal nor the interest of such
+debts can be paid.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO DANIEL JENIFER, OF MARYLAND.
+
+ Office of Finance, June 11th, 1782.
+
+ Sir,
+
+I have received the letter which you did me the honor to write on the
+31st of last month. I am so habituated to receive apologies instead of
+money, that I am not surprised at the contents of it. If complaints of
+difficulties were equivalent to cash, I should not complain that the
+quotas are unpaid. But unluckily this is not the case, and if the
+States really mean to prosecute the war, something more must be done
+than merely to pass declaratory resolutions; for no man can be found
+who will for such resolutions supply food to our army. I am well
+persuaded, that the difficulties which any State labors under, proceed
+more from impolitic laws than any other source; for as to the taxes
+required, they are very moderate, when compared either with the real
+wealth of the people, or the former expenses which they have borne.
+
+How far the quota asked from your State, is or is not proportionate,
+it is not my business to determine. I presume it is right; but let it
+be as high as it may, I am persuaded that when your specifics are
+turned into specie, and the various expenses attending such mode of
+taxation are paid, if the net amount be compared with the property
+taken from the people according to this simple proportion, (as the
+whole tax laid is to the net amount brought into the treasury, so is
+the price of wheat, tobacco, or any other article fixed in the law, to
+a fourth number to be found,) if, I say, this comparison be made, it
+will appear that the people have sustained a greater loss, than any
+disproportion in their quota could amount to.
+
+You must not, however, suppose that Maryland is singular in
+considering her quota too high, so far from it, that I believe every
+State thinks so of its own quota, and would be very happy to apologise
+to the world for doing nothing, with the thin and flimsy pretext, that
+it has been asked to do too much.
+
+You tell me your assembly would pledge any species of security in
+their power to borrow money. I am persuaded that you think so, but you
+must pardon me for holding a different opinion, besides that their
+willingness in this respect can be of but little avail; for while such
+extreme reluctance is shown to granting a sufficient revenue to pay
+past debts, you must not expect that any persons will rely on promises
+of future integrity. I believe your assembly, like all others on the
+continent, means well, and therefore I am in hopes that they will act
+well. But before they call on Hercules they must put their shoulders
+to the wheel. It is a vain thing to suppose that wars can be carried
+on by quibbles and puns, and yet laying taxes payable in specific
+articles amounts to no more, for with a great sound they put little or
+nothing in the treasury.
+
+I know of no persons who want your specific supplies, and, if they
+did, rely on it that they would rather contract with an individual of
+any State than with any State in the Union. I have yet met with no
+instance in which the articles taken in for taxes are of the first
+quality, neither do I expect to meet with any; and so little reliance
+can be placed on them, as to punctuality, that you may depend they
+can never be sold but at a loss. This I have experienced. Somebody or
+other will make a good bargain out of you, and the best you can make
+is to sell before the expenses eat up the whole. This will be buying
+experience, and perhaps it may prove a cheap purchase.
+
+I am sorry that you are about to quit your office, and particularly
+sorry for the want of health which leads you to that determination. I
+had hopes that your endeavors would have brought things into order. I
+shall expect to hear from you soon better tidings.
+
+ Yours, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF CONNECTICUT.
+
+ Office of Finance, June 14th, 1782.
+
+ Sir,
+
+Mr Merrill in a letter of the seventh instant informs me, that your
+Excellency requested him to delay the publication of receipts for your
+State. I am convinced, Sir, that you had good reasons for this
+request, and wish it were in my power still further to gratify your
+wishes. But I am under the necessity of insisting on the publication
+for the following reasons--1st, To obviate the charge of partiality,
+if made in one State and not in others. 2dly, To show the deficiency
+of means granted for carrying on the war. 3dly, Thereby to exonerate
+those who are immediately responsible. And, 4thly, to direct the
+public to the real cause of our calamities.
+
+Your Excellency well knows that it is common for representatives to
+aim at popularity, by lessening or procrastinating the taxes of their
+constituents. It is proper, therefore, that the people should know the
+situation to which such conduct reduces them.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JAMES LOVELL OF MASSACHUSETTS.
+
+ Office of Finance, June 16th 1782.
+
+ Sir,
+
+I have received this day your letter of the sixth instant. I find the
+publications of "_no receipts_" are by no means very pleasing. Men are
+less ashamed to do wrong, than vexed to be told of it. Mr Merrill of
+Connecticut delayed his publication in consequence of a request from
+the Governor. This he informed me of by letter, and I enclose you a
+copy of my answer. It contains some of the reasons why I insist on
+such publications, and I send them to you because I think I can at
+this distance perceive, that some men will desire to know those
+reasons from you.
+
+I know it will be alleged that from such publications the enemy will
+derive information, but I am convinced they will gain all the
+knowledge of that sort, which they want, without our newspapers; for
+the collection of taxes is a matter of too great notoriety to be
+concealed, and therefore I have long considered such arguments as mere
+excuses to keep the people in ignorance, and deceive them under
+pretext of deceiving their enemies.
+
+ I am, Sir, your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, June 21st, 1782.
+
+ Sir,
+
+I am informed that several of our officers have left behind them in
+New York considerable sums of money unpaid, which had been advanced to
+them while they were prisoners. The humanity of those, who have made
+such advances, as well as the principles of justice, requires that
+they should be repaid. But there is another reason which has
+considerable weight on my mind. The establishment of a credit among
+our enemies by the punctual payment of such debts will induce them
+again to make advances, should the chance of war place any of our
+unfortunate officers in a situation to render it necessary. I am
+therefore to request of your Excellency (should you agree with me in
+opinion) that you would take measures to cause the amount of those
+debts to be particularly ascertained, in order that I may devise some
+means of discharging them as soon as the state of the treasury will
+permit.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF RHODE-ISLAND.
+
+ Office of Finance, June 26th, 1782.
+
+ Sir,
+
+Finding that your State has made advances of pay to their troops, it
+becomes my duty to inform your Excellency, that Congress included in
+their estimates, amounting to eight millions, the sums necessary for
+paying the army; of consequence there can be no use in making such
+payments by the several States. I must also observe, Sir, that
+partial payments or supplies of any kind have been found by experience
+to give general dissatisfaction, and therefore the determination to
+discontinue them has been long since adopted.
+
+The variety of accounts also is dangerous and expensive, and therefore
+to be avoided. I might add other reasons why such payments by the
+States cannot be admitted in abatement of their respective quotas. The
+same reasons also operate against the admission of charges for
+supplies of any kind, or certificates thereof as deductions from those
+quotas. I have written to Mr Olney on the subject, the 23d instant;
+and am now to pray your Excellency's attention and assistance to
+prevent such irregularities in future. The more our operations are
+simplified, the better will they be understood, and the more
+satisfactorily will they be conducted. Congress have asked for men and
+money. Those granted, they will ask for nothing more, and I persuade
+myself, that if consistently with the confederation, they could
+confine their requisitions to money alone, the people at large would
+derive relief from it, the Legislature would act with greater ease,
+and our resources be applied with greater vigor.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, June 29th, 1782.
+
+ Dear Sir,
+
+I have received your favors of the 8th and 16th instant, the former
+enclosing alterations proposed in the present mode of issues, and the
+latter a copy of your circular letter to the States of the 4th of May.
+I pray you to accept my thanks for these communications. I consent to
+the alterations mentioned, and shall be very happy that harmony be
+restored; for I do assure you that let the cause of disputes be what
+it may, I am extremely sorry to find that any exist.
+
+I find that you have misunderstood that part of my letter which
+relates to the complaints of the officers. My design was not to oppose
+any arrangement which might contribute to their convenience. I only
+meant to show that their convenience having been consulted in the
+first instance, the mode had excited uneasiness, and that the endeavor
+to remove that uneasiness having excited complaint and remonstrance,
+the direct compliance with the reasoning adopted by them would produce
+greater hardship, than that which was complained of. Hence follows the
+inference which was on my mind, that a spirit of accommodation alone
+could place all parties at their ease, and I supposed that the
+interest of the contractors on one hand, and the convenience of the
+army on the other, would produce that accommodating disposition in
+both. I am happy to find that matters are now in a train towards that
+desirable end, and much lament that it has not sooner arrived.
+
+I shall close what I have to say on this subject, by assuring you most
+confidentially, that I will to the utmost of my power do justice, and
+bring relief to both officers and soldiers, but as these things can
+only be effected by exact method and economy, so I must pursue that
+method and economy, as the only means by which the desired end can be
+obtained.
+
+With respect to the civil list, I shall say but one or two words. I
+know well the connexion, which ties together all the public servants,
+and I lament every comparison, which implies a distinction between
+them. The civil list consists chiefly of persons whose salaries will
+not do more than find them food and clothing. Many of them complain,
+that with great parsimony they cannot obtain even those necessaries.
+The difference then between them and the army, supposing the latter to
+get but four months' pay out of twelve, is that both would be alike
+subsisted, and the army would have an arrearage of eight months' pay
+to receive at a future period, but the civil list would have to
+receive nothing.
+
+ I am, my Dear Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, July 1st, 1782.
+
+ Sir,
+
+I have deferred until this moment my answer to your letters of the
+4th, 9th, and 30th, of March, in expectation that I should have heard
+from you by the Marquis de Lafayette. A vessel now about to depart
+induces me to address you. I enclose an Act of Congress, by which you
+are empowered to adjust the public accounts with the Court of France.
+I wish this may be done, and the amount transmitted hither, that
+arrangements may be taken for ascertaining the times and the modes of
+payment. You will at the same time observe, that it is determined to
+appoint a commissioner for liquidating and finally adjusting the
+accounts of the public servants of Congress in Europe.
+
+The Minister here, in a letter to me of the 25th of May last, gives
+the following state of moneys granted by France, viz.
+
+"These advances have been made at the following periods, and are
+payable with interest, according to the obligations and
+acknowledgements of Dr Franklin.
+
+ "In 1778, 3,000,000
+ 1779, 1,000,000
+ 1780, 4,000,000
+ 1781, 10,000,000
+ ----------
+ Total 18,000,000
+
+ "From this sum must be deducted the
+ gratuitous subsidy of last year, 6,000,000
+ ----------
+ Remains 12,000,000
+
+ "To this must be added,
+ 1st. The produce of the loan in Holland, 10,000,000
+ 2dly. The loan made by his Majesty for
+ the current year, 6,000,000
+ ----------
+ "Capital of the debt due to His Majesty
+ by the United States, 28,000,000"
+
+I think it right to send you this statement, on which I will make a
+few observations. I could have wished that the whole of the moneys,
+which the Court have furnished us had been what the greater part is,
+_a loan_. I know that the United States will find no difficulty in
+making payment, and I take this opportunity to give _you_ an
+assurance, which is not meant for the Court, that I will endeavor to
+provide _even now_ the means of repayment, by getting laws passed, to
+take effect at a future period, or otherwise, as shall be most
+convenient and agreeable to all parties, after the amount is
+ascertained and the times of payment fixed. I wish it had all been a
+loan, because I do not think the weight of the debt would be so great
+as the weight of an obligation is generally found to be, and the
+latter is of all others what I would least wish to labor under, either
+in a public or private capacity. A still further reason with me is,
+that there is less pain in soliciting the _aid_ of a loan, when there
+is no expectation that it is to be a gift.
+
+Prompted by such reasons, I could be well content, that the advances
+made previously to the year 1778, were by some means or other brought
+into this account. By Mr Grand's accounts is appears, that Messrs
+Franklin, Deane and Lee, on the 1st of January, 1777, paid him five
+hundred thousand livres; on the 28th of April, other five hundred
+thousand livres; on the 4th of June, one million of livres; on the 3d
+of July, five hundred thousand livres; and on the 10th of October,
+other five hundred thousand livres; amounting in the whole to three
+millions of livres. I suppose, that these sums were received of
+private persons in like manner with those supplies, which were
+obtained through M. de Beaumarchais, and if so they will be payable in
+like manner with those supplies.
+
+I have in a former letter estimated the yearly interest on Loan Office
+certificates, payable in France at two million livres, consequently
+taking in the months intervening between September and March, the
+total amount from September the 10th, 1777, to March the 1st, 1782,
+may be stated at nine million livres; which is just one half of the
+supplies granted for the years 1778, 1779, 1780, and 1781.
+
+A resolution now before Congress will, I believe, direct that no more
+bills be drawn for this instant; but Mr Grand in his letter of the 4th
+of March, tells me he has paid six million two hundred and thirtynine
+thousand one hundred end eightysix livres, thirteen sous, four
+deniers, in sixteen thousand eight hundred and nineteen bills, from
+the 11th of February, 1779, to the 28th of January, 1782. His accounts
+are now translating, and when that is completed, I shall transmit them
+to the treasury, and I hope soon to have the accounts of the several
+loan officers in such a train of settlement, that all these matters
+may finally be wound up.
+
+Should the Court grant six million livres more for the service of the
+current year, making twelve million livres in the whole, which to tell
+you the truth, I do expect, then the sum total in five years will be
+forty million livres, or eight million annually. And when the occasion
+of this grant is considered, the magnitude of the object, and the
+derangement of our finances, naturally to be expected in so great a
+revolution, I cannot think this sum is by any means very
+extraordinary. I believe with you most perfectly in the good
+dispositions of the Court, but I must request you to urge those
+dispositions into effect. I consider the six millions mentioned to me
+by the Minister here, and afterwards in your letters, as being at my
+disposal. The taxes come in so slowly, that I have been compelled and
+must continue to draw bills, but I shall avoid it as much as possible.
+In my letters of the 23d and 29th of May, of which I enclose copies,
+are contained my sentiments as to M. de Beaumarchais' demand. Indeed,
+if the sums paid to him and others for expenditures previous to the
+year 1778, and the amount of the interest money, of which the
+principal was also expended at that time, be deducted, the remaining
+sum will be considerably less than thirty millions.
+
+I must entreat of you, Sir, that all the stores may be forwarded from
+Brest as soon as possible, and I shall hope that the Court will take
+measures to afford you the necessary transports, so that they may come
+under proper convoy. As to the cargo of the ship Marquis de Lafayette,
+it is true, that some of it has arrived here from neutral ports, but
+it is equally true that money was necessary to purchase it, and that
+money is quite as scarce as any other article. If, however, all the
+cargo of that ship was like some which I procured, the taking of her
+has been no great loss, for the clothing was too small to go on men's
+backs. The goods from Holland we still most anxiously expect. Would to
+God that they never had been purchased. Mr Gillon, however, is at
+length arrived, and I hope we shall have those matters, in which he
+was concerned, brought to some kind of settlement.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO ALEXANDER HAMILTON.
+
+ Office of Finance, July 2d, 1782.
+
+ Sir,
+
+I yesterday received your letter of the 17th of June, and am very
+happy to find that you have determined to accept the office I had the
+pleasure of offering to you.[8] I enclose the commission,
+instructions, &c. together with a bond for performance of the duties,
+which I must request you to fill up and execute, with some sufficient
+surety, and transmit.
+
+ [8] Receiver of the Continental taxes for the State of New
+ York.
+
+The complaint you make of the system of taxation in New York, might, I
+believe, very justly be extended; for though it may be more defective
+in some than in others, it is, I fear, very far from perfect in any. I
+had already heard, that no part of the taxes were appropriated to
+Continental purposes, but I expect that the Legislature will, when
+they meet, make such appropriation, as well as lay new, and I hope
+productive taxes, for the purposes of paying what may remain of their
+quota.
+
+It gives me a singular pleasure to find, that you have yourself
+pointed out one of the principal objects of your appointment. You will
+find that it is specified in the enclosure of the 15th of April. I do
+not conceive that any interview will be necessary, though I shall
+always be happy to see you, when your leisure and convenience will
+admit. In the meantime, I must request you to exert your talents in
+forwarding with your Legislature the views of Congress. Your former
+situation in the army, the present situation of that very army, your
+connexions in the State, your perfect knowledge of men and measures,
+and the abilities which Heaven has blest you with, will give you a
+fine opportunity to forward the public service, by convincing all who
+have claims on the justice of Congress, that those claims exist only
+by that hard necessity, which arises from the negligence of the
+States. When to this you shall superadd the conviction, that what
+remains of the war, being only a war of finance, solid arrangements of
+finance must necessarily terminate favorably, not only to our hopes
+but even to our wishes, then, Sir, the government will be disposed to
+lay, and the people to bear these burdens, which are necessary, and
+then the utility of your office and of the officer will be as manifest
+to others as at present to me.
+
+ I am, with respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. JOLIE DE FLEURY.
+
+ Office of Finance, July 6th, 1782.
+
+ Sir,
+
+I have received the letter which you did me the honor to write in
+February last. It gives me very particular pleasure to find that my
+operations are approved by a gentleman whose talents and situation
+conspire together in giving the means and the power of forming a
+proper judgment. I receive, Sir, with so much greater satisfaction
+your promise to concur in promoting the success of my measures, as I
+persuade myself that a true Frenchman must deeply interest himself in
+the present American Revolution.
+
+The indissoluble bands which unite our sovereigns, have connected the
+success of that revolution with the glory of the King, and the
+interests of his subjects. Being therefore alike prompted by that
+animated zeal and attachment to your prince which forms a beautiful
+trait in the French character, and by your own benevolence, you cannot
+but pursue the road which leads to the establishment of our
+independence. It is by these motives, Sir, that you are assured of my
+confidence. I shall take the liberty to lay before you my
+arrangements, as soon as they can be completed, in order that you may
+possess the views of my administration.
+
+ I have the honor to be, with perfect esteem and respect,
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, July 5th, 1782.
+
+ Sir,
+
+I have received your several favors of the 2d of February and 4th of
+March last, together with the accounts accompanying the latter. I am
+sorry to find the funds we have in Europe are so deeply anticipated.
+This circumstance introduces a degree of hesitancy and doubtfulness
+into my measures, which is alike disagreeable and pernicious. I hope,
+therefore, that all the old accounts will soon be wound up and finally
+closed; and then in future I shall possess a full view of what is in
+my power. With respect to any arrangements with the Court of Spain, I
+incline to think that they will be necessary, for I persuade myself
+that money negotiations through Havana might be performed to equal, if
+not greater advantage, by private channels.
+
+ I am, Sir, with respect and esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF MARYLAND.
+
+ Office of Finance, July 9th, 1782.
+
+ Sir,
+
+I have not been until this moment favored with your letter in Council
+of the 5th. I pray that you will accept and present to the Council my
+sincere thanks for your attention to the public service. Your offer to
+pay for the transportation of clothing to the southern army, gives me
+an additional reason to believe that a sense of the public distresses
+will always operate a desire to relieve them. To go into detail of
+those distresses, is at all times dangerous, and indeed it would be
+impracticable, for they are so numerous that all my time would be
+insufficient for the purpose. The publications made by the receivers
+in the several States, will however carry a conviction of them, to
+every man of sense end reflection.
+
+It is my constant endeavor to administer the little aid which is
+afforded to the best advantage; and I am in hourly apprehensions from
+the dilatoriness which has been shown by almost all the States, in
+granting the supplies required by Congress. No proposition can be
+clearer than this, that the salvation of our country must depend upon
+such grants; and it will be a matter of wonder for future generations,
+how a people who once showed such enthusiastic ardor, should at the
+moment when it is within their grasp, put everything to the hazard, by
+omitting to make the little exertion that remains. Yet such is the
+fact.
+
+I shall rely on receiving considerable supplies of money from Maryland
+in the course of the present month; and shall, in consequence, make
+engagements for transporting the clothing and stores to the southern
+army, and for other services equally pressing and essential. That you
+will be obliged to sell the property of the State, at less than you
+suppose it to be worth, I had long foreseen, and am thoroughly
+convinced of. That is one among the very many objections against
+raising specific taxes; but you may depend that the longer they are
+kept on hand, the greater will be the loss. The people must be
+undeceived, and the sales of such property will have a tendency to
+produce that effect. They will at length, I hope, open their eyes, and
+be convinced of a truth which all history and experience bear witness
+to, namely, that the true art of governing is to simplify the
+operations of government.
+
+Permit me, Sir, before I close this letter, to press upon your
+consideration the state of public affairs. Every operation is, at
+present, supported by credit, and that credit has long hung but by a
+thread. Unless the States give speedy and effectual aid, that thread
+must break. It would long since have broken, and scenes of military
+pillage, waste, murmuring, extravagance and confusion would again have
+been opened, if I had not for some time declined all expenditure,
+except what was necessary merely to feed the army. If, under such
+circumstances, the enemy has made offensive operations, you may easily
+guess the consequences. Your State will, I hope, contribute amply to
+provide against them. Should anything happen, the fault will not lie
+at the door of Congress or of their servants.
+
+ With perfect esteem and respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JAMES LOVELL OF MASSACHUSETTS.
+
+ Office of Finance, July 10th, 1782.
+
+ Sir,
+
+I have received your favors of the 24th and 27th of June. The conduct
+of the States is very alarming, and has given me much serious
+apprehension. A want of knowledge or of zeal among those who compose
+the several Legislatures, produces misfortunes which their
+constituents must feel, although they do not themselves appear to be
+aware of them. Had permanent funds been established on which to borrow
+money, in all human probability our credit would have been such, as
+that a considerable part of every year's expenditure might have been
+obtained in that way. The advantages of such a measure are self
+evident. If we suppose the states at war possessed of equal force and
+resources, the one of them enjoying credit, which the other wants, the
+efforts would be so unequal, that the nation in credit might compel
+her antagonist to ask peace in a very short period.
+
+In America we have disdained to profit by experience, and therefore
+are reduced to the sad necessity of bearing the whole burden of the
+war at the present moment, when least able to bear it. Still, however,
+I had hoped, by making anticipations on the taxes, to lay a foundation
+for more extensive credit; and at length to recover that useful
+confidence, which has been too carelessly squandered away. But in
+fixing the first stone of this useful edifice, I am disappointed by
+finding that after taxes are laid, and in the moment when I expect to
+feel the benefits, the collection is postponed unto a future day. I
+shall not dwell longer on this disagreeable topic. I deeply feel and
+sincerely lament the consequences, which you may rely on it are far
+more pernicious even in the article of expense than any person is
+aware of; besides other things which are of equal, and may perhaps, be
+of greater importance.
+
+I find by examining the sums I have drawn on you for, that you can
+find no great difficulty in making the payments by sales of the bills.
+I would advise you, immediately on the receipt of this, to employ a
+good broker to sell all the bills you have, at a price to be fixed
+between you, leaving it optional in the party, to pay either specie,
+bank notes, or my notes, and give from a week to a fortnight credit to
+good hands. The price will, I suppose, be high if sold in this
+manner, and you will doubtless obtain a preference in the sales over
+others. When you open this business it must be transacted speedily by
+letting your broker make the sales, and take the promisory notes from
+the parties. The effects of this plan will be as follows; people
+knowing that the notes are at a discount, will readily, I suppose,
+make purchases on such conditions; and if they do, you will thereby
+raise them to par, and command a considerable sum in specie, for I
+know there are very few now in your country, and therefore when they
+come to be bought up and looked for, their value will rise; and I
+presume that taxation will then come in to aid their farther
+circulation.
+
+ I am, Sir, with great respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF MARYLAND.
+
+ Office of Finance, July 29th, 1782.
+
+ Sir,
+
+I have now before me your two favors of the 12th instant. You will
+find my answers as well in a former letter, as in the enclosed
+circular. For what remains I must only declare to you my regret at
+finding your prospects so gloomy. The idea that taxes cannot be raised
+because of the want of specie, is very general, indeed it is almost
+universal, and yet nothing can be more ill-founded. If the people be
+put in the necessity of procuring specie, they will procure it. They
+can if they will. Tobacco may not sell at one moment, grain at
+another, or cattle at a third; but there are some articles such as
+horses, which will sell at all times. The mischief is, that when a
+purchaser offers, the party not being under a necessity of selling,
+insists on a higher price than the other can afford to give. Thus the
+commerce is turned away to another quarter. Nothing but the necessity
+of getting money will bring men in general to lower their prices. When
+this is done purchasers will offer in abundance, and thus it will be
+found, that the tax instead of lessening will increase the quantity of
+specie. But so long as the want of it can be pleaded successfully
+against taxes, so long that want will continue. And then all that
+remains to consider is, whether the army can be maintained by such a
+plea. The States, Sir, must give money, or the army must disband.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, July 29th, 1782.
+
+ Sir,
+
+The reference which Congress were pleased to make of a remonstrance
+and petition from Blair Mc Clenaghan and others, has induced me to
+pray their indulgence while I go somewhat at large into the subject of
+that remonstrance.
+
+The propriety and utility of public loans have been subjects of much
+controversy. Those who find themselves saddled with the debts of a
+preceding generation, naturally exclaim against loans; and it must be
+confessed, that when such debts are accumulated by negligence, folly
+or profusion, the complaint is well founded. But it would be equally
+so against taxes, when wasted in the same way. The difference is, that
+the weight of taxes being more sensible, the waste occasions greater
+clamor, and is therefore more speedily remedied. But it will appear,
+that the eventual evils, which posterity must sustain from heavy taxes
+are greater than from loans. Hence may be deduced this conclusion,
+that in governments liable to a vicious administration, it would be
+better to raise the current expense by taxes; but where an honest and
+wise appropriation of money prevails, it is highly advantageous to
+take the benefit of loans. Taxation to a certain point, is not only
+proper but useful, because by stimulating the industry of individuals,
+it increases the wealth of the community. But when taxes go so far as
+to entrench on the subsistence of the people, they have become
+burdensome and oppressive. The expenditure of money ought in such case
+to be, if possible, avoided; if unavoidable, it will be most wise to
+have recourse to loans.
+
+Loans may be of two kinds, either domestic or foreign. The relative
+advantages and disadvantages of each, as well as those which are
+common to both, will deserve attention. Reasonings of this kind, as
+they depend on rules of arithmetic, are best understood by numerical
+positions. For the purposes of elucidation, therefore, it may be
+supposed that the annual tax of any particular husbandman were fifteen
+pounds, so that (the whole being regularly consumed in payment of
+taxes) he would be no richer at the end of the war, than he was at the
+beginning. It is at the same time notorious, that the profits made by
+husbandmen, on funds which they borrowed were very considerable. In
+many instances their plantations, as well as the cattle and family
+utensils, have been purchased on credit, and the bonds given for both
+have shortly been paid by sales of produce. It is, therefore, no
+exaggeration to state the profits at twelve per cent. The enormous
+usury, which people in trade have been induced to pay, and which will
+presently be noticed, demonstrates that the profits made by the other
+professions, are equal to those of the husbandman.
+
+The instance, therefore, taken from that which is the most numerous
+class of citizens, will form no improper standard for the whole. Let
+it then be farther supposed in the case already stated, that the party
+should annually borrow the sum of ten pounds at six per cent, to pay
+part of the tax of fifteen pounds. On this sum then he would make a
+profit of twentyfour shillings, and have to pay an interest of twelve
+shillings. The enclosed calculation will show, that in ten years he
+would be indebted one hundred pounds, but his additional improvements
+would be worth near one hundred and fifty, and his net revenue be
+increased near twelve, after deducting the interest of his debt.
+Whereas if he had not borrowed, his revenue, as has been already
+observed, would have continued the same. This mode of reasoning might
+be pursued farther, but what has been said is sufficient to show, that
+he would have made a considerable advantage from the yearly loan. If
+it be supposed, that every person in the community made such a loan, a
+similar advantage would arise to the community. And lastly, if it be
+supposed, that the government were to make a loan and ask so much less
+in taxes, the same advantage would be derived. Hence, also, may be
+deduced this position, that in a society where the average profits of
+stock are double the interest at which money can be obtained, every
+public loan for necessary expenditures, provides a fund in the
+aggregate of national wealth equal to the discharge of its own
+interest.
+
+Were it possible that a society should exist, in which every member
+would of his own accord industriously pursue the increase of national
+property, without waste or extravagance, the public wealth would be
+impaired by every species of taxation. But there never was, and unless
+human nature should change, there never will be such a society. In any
+given number of men, there always will be some who are idle, and some
+who are extravagant. In every society also there must be some taxes,
+because the necessity of supporting government and defending the State
+always exists. To do these on the cheapest terms is wise, and when it
+is considered how much men are disposed to indolence and profusion it
+will appear, that even if those demands did not require the whole of
+what could be raised, still it would be wise to carry taxation to a
+certain amount, and expend what should remain after providing for the
+support of government and the national defence, in works of public
+utility, such as the opening of roads and navigation. For taxes
+operate two ways towards the increase of national wealth. First, they
+stimulate industry to provide the means of payment. Secondly, they
+encourage economy, so far as to avoid the purchase of unnecessary
+things, and keep money in readiness for the tax gatherers. Experience
+shows, that those exertions of industry and economy grow by degrees
+into habit. But in order that taxation may have these good effects,
+the sum which every man is to pay and the period of payment, should be
+certain and unavoidable.
+
+This digression opens the way to a comparison between foreign and
+domestic loans. If the loan be domestic, money must be diverted from
+those channels in which it would otherwise have flowed; and,
+therefore, either the public must give better terms than individuals,
+or there must be money enough to supply the wants of both. In the
+latter case, if the public did not borrow, the quantity of money would
+exceed the demand, and the interest would be lowered; borrowing by the
+public, therefore, would keep up the rate of interest; which brings
+the latter case within the reason of the former. If the public out bid
+individuals, those individuals are deprived of the means of extending
+their industry; so that no case of a domestic loan can well be
+supposed where some public loss will not arise to counterbalance the
+public gain, except where the creditor spares from his consumption to
+lend to the government, which operates a national economy. It is,
+however, an advantage peculiar to domestic loans, that they give
+stability to government, by combining together the interests of the
+monied men for its support; and, consequently, in this country a
+domestic debt would greatly contribute to that union, which seems not
+to have been sufficiently attended to or provided for in forming the
+national compact. Domestic loans are also useful, from the farther
+consideration, that as taxes fall heavy on the lower orders of the
+community, the relief obtained for them by such loans more than
+counterbalances the loss sustained by those who would have borrowed
+money to extend their commerce or tillage. Neither is it a refinement
+to observe, that since a plenty of money and consequent ease of
+obtaining it, induce men to engage in speculations, which are often
+unprofitable, the check which these receive is not injurious, while
+the relief obtained by the poor is highly beneficial.
+
+By making foreign loans, the community, as such, receive the same
+extensive benefits, which one individual does in borrowing of another.
+This country was always in the practice of making such loans. The
+merchants in Europe trusted those in America. The American merchants
+trusted the country store-keepers, and they the people at large. This
+advance of credit may be stated at not less than twenty millions of
+dollars. And the want of that credit now is one principal reason of
+those usurious contracts mentioned above. These have been checked by
+the institution of the bank, but the funds of that corporation not
+permitting those extensive advances, which the views of different
+people require, the price given for particular accommodations of money
+continues to be enormous; and that again shows, that to make domestic
+loans would be difficult, if not impracticable. The merchants not
+having now that extensive credit in Europe, which they formerly had,
+the obtaining such credit by government becomes in some sort
+necessary.
+
+But there remains an objection with many against foreign loans, which
+(though it arises from a superficial view of the subject) has no
+little influence. This is, that the interest will form a balance of
+trade against us, and drain the country of specie; which is only
+saying in other words, that it would be more convenient to receive
+money as a present, than as a loan; for the advantages derived by the
+loan exist, notwithstanding the payment of interest. To show this more
+clearly, a case may be stated, which in this city is very familiar.
+An Island in the Delaware overflowed at high water has for a given
+sum, suppose a thousand pounds, been banked in, drained, and made to
+produce, by the hay sold from it at Philadelphia, a considerable sum
+annually; for instance, two hundred pounds. If the owner of such an
+Island had borrowed in Philadelphia the thousand pounds to improve it,
+and given six per cent interest, he would have gained a net revenue of
+one hundred and forty pounds. This certainly would not be a balance of
+trade against his Island, nor the draining it of specie. He would gain
+considerably, and the city of Philadelphia also would gain, by
+bringing to market an increased quantity of a necessary article.
+
+In like manner money lent by the city of Amsterdam to clear the
+forests of America would be beneficial to both. Draining marshes and
+bringing forests under culture, are beneficial to the whole human
+race, but most to the proprietor. But at any rate, in a country and in
+a situation like ours, to lighten the weight of present burdens must
+be good policy by loans. For as the governments acquire more
+stability, and the people more wealth, the former will be able to
+raise, and the latter to pay, much greater sums than can at present be
+expected.
+
+What has been said on the general nature and benefit of public loans,
+as well as their particular utility to this country, contains more of
+detail than is necessary for the United States in Congress, though
+perhaps not enough for many of those to whose consideration this
+subject must be submitted. It may seem superfluous to add, that credit
+is necessary to the obtaining of loans. But among the many
+extraordinary conceptions which have been produced during the present
+revolution, it is neither the least prevalent nor the least
+pernicious, that foreigners will trust us with millions, while our own
+citizens will not trust us with a shilling. Such an opinion must be
+unfounded, and will appear to be false at the first glance; yet men
+are, on some occasions, so willing to deceive themselves, that the
+most, flattering expectations will be formed from the acknowledgement
+of American independence by the States-General. But surely no
+reasonable hope can be raised on that circumstance, unless something
+more be done by ourselves. The loans made to us hitherto, have either
+been by the Court of France, or on their credit. The government of the
+United Netherlands are so far from being able to lend, that they must
+borrow for themselves. The most, therefore, that can be asked from
+them, is to become security for America to their own subjects; but it
+cannot be expected that they will do this, until they are assured and
+convinced that we will punctually pay. This follows necessarily from
+the nature of their government, and must be clearly seen by the
+several States as well as by Congress, if they only consider what
+conduct they would pursue on a similar occasion. Certainly Congress
+would not put themselves in a situation, which might oblige them to
+call on the several States for money to pay the debts of a foreign
+power. Since then no aid is to be looked for from the Dutch
+government, without giving them sufficient evidence of a disposition
+and ability to pay both principal and interest of what we borrow; and
+since the same evidence which would convince the government must
+convince the individuals that compose it, asking the aid of government
+must either be unnecessary or ineffectual. Ineffectual before the
+measures are taken to establish our credit, and unnecessary
+afterwards.
+
+We are, therefore, brought back to the necessity of establishing
+public credit; and this must be done at home before it can be extended
+abroad. The only question which can remain, is with respect to the
+means. And here it must be remembered, that a free government whose
+natural offspring is public credit, cannot have sustained a loss of
+that credit, unless from particular causes, and therefore those causes
+must be investigated and removed, before the effects will cease. When
+the continental money was issued, a greater confidence was shown by
+America than any other people ever exhibited. The general promise of a
+body not formed into, nor claiming to be a government, was accepted as
+current coin; and it was not until long after an excess of quantity
+had forced on depreciation, that the validity of these promises was
+questioned. Even then the public credit still existed in a degree, nor
+was it finally lost until March, 1780, when an idea was entertained
+that government had committed injustice. It is useless to enter into
+the reasons for and against the resolutions of that period. They were
+adopted, and are now to be considered only in relation to their
+effects. These will not be altered by saying that the resolutions were
+misunderstood, for in those things which depend on public opinion, it
+is no matter, (so far as consequences are concerned,) how that opinion
+is influenced. Under present circumstances, therefore, it may be
+considered as an incontrovertible proposition, that all paper money
+ought to be absorbed by taxation, or otherwise, and destroyed before
+we can expect our public credit to be fully reestablished; for so long
+as there be any in existence, the holder will view it as a monument of
+national perfidy.
+
+But this alone would be taking only a small step in the important
+business of establishing national credit. There are a great many
+individuals in the United States, who trusted the public in the hour
+of distress, and who are impoverished, and even ruined by the
+confidence they reposed. There are others whose property has been
+wrested from them by force to support the war, and to whom
+certificates have been given in lieu of it, which are entirely
+useless. I need no inspiration to show that justice establishes a
+nation. Neither are the principles of religion necessary to evince
+that political injustice will receive political chastisement.
+Religious men will cherish these maxims in proportion to the
+additional force they derive from divine revelation. But our own
+experience will show, that from a defect of justice this nation is not
+established, and that her want of honesty is severely punished by her
+want of credit. To this want of credit must be attributed the weight
+of taxation for the support of the war, and the continuance of that
+weight by the continuance of the war.
+
+It is, therefore, with the greatest propriety, your petitioners
+already mentioned, have stated in their Memorial, that both policy and
+justice require a solid provision for funding the public debts. It is
+with pleasure, Sir, that I see this numerous, meritorious, and
+oppressed, body of men who are creditors of the public, beginning to
+exert themselves for the obtaining of justice. I hope they may
+succeed, not only because I wish well to so righteous a pursuit, but
+because their success will be the great ground work of a credit, that
+will carry us safely through the present just, important, and
+necessary war; which will combine us closely together on the
+conclusion of a peace, which will always give to the supreme
+representative of America, a means of acting for the general defence
+on sudden emergencies, and which will of consequence procure the third
+of these great objects, for which we contend, _peace, liberty, and
+safety_.
+
+Such, Sir, are the cogent principles, by which we are called to
+provide solid funds for the national debt. Already Congress have
+adopted a plan for liquidating all past accounts, and if the States
+shall make the necessary grants of revenue, what remains will be a
+simple executive operation, which will presently be explained. But
+however powerful the reasons in favor of such grants, over and above
+those principles of moral justice, which none, however exalted, can
+part from with impunity, still there are men, who, influenced by
+penurious selfishness, will complain of the expense, and who will
+assert the impossibility of sustaining it. On this occasion the
+sensations with respect to borrowing are reversed. All would be
+content to relieve themselves by loan from the weight of taxes, but
+many are unwilling to take up as they ought the weight of debt. Yet
+this must be done before the other can happen; and it is not so great
+but that we should find immediate relief by assuming it, even if _it
+were a foreign debt_. I say if it were a _foreign_ debt, because I
+shall attempt to show, first, that being a _domestic debt_, to fund it
+will cost the community nothing, and secondly, that it will produce,
+on the contrary, a considerable advantage.
+
+And as to the first point, one observation will suffice. The
+expenditure has been made, and a part of the community have sustained
+it. If the debt were to be paid by a single effort of taxation, it
+could only create a transfer of property from one individual to
+another, and the aggregate wealth of the whole community would be
+precisely the same. But since nothing more is attempted than merely
+to fund the debt, by providing for the interest at six per cent, the
+question of ability is resolved to the single point, whether it is
+easier for a _part of the people_ to pay one hundred dollars, than for
+the _whole people_ to pay six dollars. It is equally clear, though not
+equally evident, that a considerable advantage would be produced by
+funding our debts, over and above what has been already mentioned as
+the consequence of national credit.
+
+The advantage is threefold. First, many persons by being creditors of
+the public are deprived of those funds, which are necessary to the
+full exercise of their skill and industry. Consequently the community
+are deprived of the benefits, which would result from that exercise,
+whereas if these debts, which are in a manner dead, were brought back
+to existence, monied men would purchase them up, though perhaps at a
+considerable discount, and thereby restore to the public many useful
+members, who are now entirely lost, and extend the operations of many
+more to considerable advantage. For although not one additional
+shilling would be by this means brought in, yet by distributing
+property into those hands, which could render it most productive, the
+revenues would be increased, while the original stock continued the
+same. Secondly, many foreigners who make speculations to this country,
+would, instead of ordering back remittances, direct much of the
+proceeds of their cargoes to be invested in our public funds, which,
+according to principles already established, would produce a clear
+advantage, with the addition, from peculiar circumstances, that it
+would supply the want of credit to the mercantile part of society. The
+last but not least advantage is, that in restoring ease, harmony, and
+confidence, not only the government (being more respectable) would be
+more respected, and consequently better obeyed, but the mutual
+dealings among men on private credit would be facilitated. The horrors
+which agitate people's minds, from an apprehension of depreciating
+paper would be done away. The secret hoards would be unlocked. In the
+same moment the necessity of money would be lessened, and the quantity
+increased. By these means the collection of taxes would be
+facilitated, and thus instead of being obliged to give valuable
+produce for useless minerals, that produce would purchase the things
+we stand in need of, and we should obtain a sufficient circulating
+medium, by giving the people what they have always a right to demand,
+solid assurance in the integrity of their rulers.
+
+The next consideration, which offers is the amount of public debt, and
+every good American must lament that confusion in public affairs,
+which renders an accurate state of it unattainable. But it must
+continue to be so until accounts at home and abroad be fully adjusted.
+The enclosed is an estimate, furnished by the Controller of the
+Treasury; from which it appears, that there is, already an
+acknowledged debt bearing interest, to the amount of more than twelve
+millions of dollars. On a part of this also there is a large arrearage
+of interest, and there is a very considerable debt unsettled, the
+evidence of which exists in various certificates, given for property
+applied to the public service. This service, including pay due to the
+army previous to the present year, cannot be estimated at less than
+between seven and eight millions. Our debt to his Most Christian
+Majesty, is above five millions. The nearest guess, therefore, which
+can be made at the sum total, is from twentyfive to twentyseven
+millions of dollars; and if to this we add what it may be necessary to
+borrow for the year 1783, the amount will be, with interest, by the
+time proper revenues are obtained, considerably above thirty millions.
+Of course the interest will be between eighteen hundred thousand and
+two millions of dollars.
+
+And here, previous to the consideration of proper revenues for that
+amount, it may not be amiss to make a few general observations; the
+first of which is, that it would be injurious to the United States to
+obtain money in loans, without providing beforehand the necessary
+funds. For if those who are now so deeply engaged to support war, will
+not grant such funds to procure immediate relief, certainly those who
+come after them will not do it to pay a former debt. Remote objects,
+dependent on abstract reasoning, never influence the mind like
+immediate sensibility. It is, therefore, the province of wisdom to
+direct towards proper objects that sensibility, which is the only
+motive to action among the mass of mankind. Should we be able to get
+money from the Dutch, without first providing funds, which is more
+than doubtful; and should the several States neglect afterwards making
+provision to perform the engagements of Congress, which is more than
+probable, the credit of the United States abroad would be ruined
+forever. Very serious discussions also might be raised among foreign
+powers, and our creditors might have recourse to arms, we might
+dishonorably be compelled to do what dishonestly we had left undone.
+
+Secondly, the idea, which many entertain, of soliciting loans abroad
+to pay the interest of domestic debts, is pregnant with its own
+destruction. If the States were to grant revenues sufficient only to
+pay the interest of present debts, we might, perhaps, obtain new
+credit upon a general opinion of our justice, though that is far from
+certain. But when we omit paying by taxes the interest of debts
+already contracted, and ask to borrow for the purpose, making the same
+promises to obtain the new loans, which had already been made to
+obtain the old, we shall surely be disappointed.
+
+Thirdly, it will be necessary, not only that revenues be granted, but
+that those revenues be amply sufficient for the purpose, because (as
+will presently appear) a deficiency would be highly pernicious, while
+an excess would be not only unprejudicial, but very advantageous. To
+perceive this with all necessary clearness, it must be remembered that
+the revenues asked for on this occasion must be appropriated to the
+purposes for which they are asked, and in like manner the sums
+required for current expenditures must be appropriated to the current
+service. If then the former be deficient the latter cannot be brought
+in to supply the deficiencies, and of course the public credit would
+be impaired; but should there be an excess of revenue it could be
+applied in payment of a part of the debt immediately, and in such
+case, if the credits should have depreciated they would be raised to
+par, the offer of payment would induce creditors to lower the
+interest. Thus in either case, the means of making new loans on good
+terms would be extended, and the necessity of asking more revenues
+obviated.
+
+Lastly, the revenues ought to be of such a nature, as naturally and
+necessarily to increase, for creditors will have a greater confidence
+when they have a clear prospect of being repaid, and the people will
+always be desirous to see a like prospect of relief from the taxes.
+Besides which, it will be necessary to incur some considerable expense
+after the war, in making necessary establishments for a permanent
+naval force, and it will always be least objectionable to borrow for
+that purpose on funds already established.
+
+The requisition of a five per cent impost, made on the 3d of February,
+1781, has not yet been complied with by the State of Rhode Island; but
+as there is reason to believe that their compliance is not far off,
+this revenue may be considered as being already granted. It will,
+however, be very inadequate to the purposes intended. If goods be
+imported and prizes introduced to the amount of twelve millions
+annually, the five per cent would be six hundred thousand, from which
+at least one sixth must be deducted, as well for the cost of
+collection as for the various defalcations which will necessarily
+happen, and which it is unnecessary to enumerate. It is not safe,
+therefore, to estimate this revenue at more than half a million of
+dollars, for, though it may produce more, yet probably it will not
+produce so much. It was in consequence of this, that on the 27th day
+of last February, I took the liberty to submit the propriety of asking
+the States for a land tax of one dollar for every hundred acres of
+land, a poll tax of one dollar on all freemen and all male slaves
+between sixteen and sixty, (excepting such as are in the federal army,
+and such as are by wounds or otherwise rendered unfit for service) and
+an excise of one eighth of a dollar per gallon, on all distilled
+spirituous liquors. Each of these may be estimated at half a million,
+and should the product be equal to the estimation, the sum total of
+revenues for funding the public debts, would be equal to two millions.
+What has been the fate of these propositions I know not, but I will
+beg leave, on this occasion, not only to renew them, but also to state
+some reasons in their favor, and answer some objections against them.
+
+And first, as to a land tax. The advantages of it are, that it can be
+reduced to a certainty as to the amount and time. That no
+extraordinary means are necessary to ascertain it, and that land being
+the ultimate object of human avarice, and that species of permanent
+property, which peculiarly belongs to a country as neither to be
+removed or concealed, it stands foremost for the object of taxation,
+and ought most particularly to be burdened with those debts, which
+have been incurred by defending the freedom of its inhabitants. But
+besides these general reasons, there are some which are in a manner
+peculiar to this country. The land of America may, as to the
+proprietors be divided into two kinds; that which belongs to the great
+landholders, and that which is owned and occupied by the industrious
+cultivators. This latter class of citizens, is, generally speaking,
+the most numerous and most valuable part of a community. The artisan
+may, under any government, minister to the luxuries of the rich, and
+the rich may, under any government, obtain the luxuries they covet.
+But the free husbandman is the natural guardian of his country's
+freedom. A land tax will probably, at the first mention, startle this
+order of men; but it can only be from the want of reflection, or the
+delusion must be kept up by the artifice of others. To him who
+cultivates from one to five hundred acres, a dollar per hundred is a
+trifling object, but to him who owns a hundred thousand it is
+important. Yet a large proportion of America is the property of great
+landholders, they monopolise it without cultivation; they are, for the
+most part, at no expense either of money or personal service to defend
+it, and keeping the price higher by monopoly than otherwise it would
+be, they impede the settlement and culture of the country. A land tax,
+therefore, would have the salutary operation of an agrarian law
+without the iniquity. It would relieve the indigent, and aggrandize
+the State by bringing property into the hands of those who would use
+it for the benefit of society.
+
+The objections against such a tax are twofold; first, that it is
+unequal, and secondly, that it is high. To obviate the inequality,
+some have proposed an estimate of the value of different kinds of
+lands. But this would be improper; because, first, it would be
+attended with great delay, expense, and inconvenience. Secondly, it
+would be uncertain, and therefore improper, particularly when
+considered as a fund for public debts. Thirdly, there is no reason to
+believe, that any estimate would be just, and even if it were, it must
+be annually varied, or else come within the force of the objection as
+strongly as ever; the former would cost more than the tax, and the
+latter would not afford the remedy asked for. Lastly, such valuations
+would operate as a tax upon industry, and promote that land monopoly,
+which every wise government will study to repress. But further, the
+true remedy for any inequality will be obtained in the apportioning
+other taxes, of which there will always be enough to equalize this;
+besides, the tax being permanent and fixed, it is considered in the
+price of land on every transfer of property, and that produces a
+degree of equality, which no valuation could possibly arrive at.
+
+In a word, if exact numerical proportion be sought after in taxes,
+there would be no end to the search. Not only might a poll tax be
+objected to, as too heavy on the poor and too light on the rich, but
+when that objection was obviated the physical differences in the human
+frame would alone be as endless a source of contention, as the
+different qualities of land. The second objection, that the tax is too
+high, is equally futile with the former. Land which is so little
+worth, that the owner will not pay annually one penny per acre for the
+defence of it, ought to belong to the society by whom the expense of
+defending it is defrayed. But the truth is, that this objection arises
+from and is enforced by those men who can very well bear the expense,
+but who wish to shift it from themselves to others. I shall close this
+subject by adding, that as such a tax would, besides the benefits to
+be derived from the object of it, have the farther advantage of
+encouraging settlements and population, this would redound not only to
+the national good, but even to the particular good of the landholders
+themselves.
+
+With respect to the poll tax, there are many objections against it,
+but in some of the States a more considerable poll tax already exists
+without inconvenience. The objections are principally drawn from
+Europe, by men who do not consider that a difference of circumstances
+makes a material difference in the nature of political operations. In
+some parts of Europe, where nine tenths of the people are exhausted by
+continual labor, to procure bad clothing and worse food, this tax
+would be extremely oppressive; but in America, where three days of
+labor produce sustenance for a week, it is not unreasonable to ask two
+days out of a year as a contribution to the payment of public debts.
+Such a tax will, on the rich, be next to nothing; on the middling
+ranks it will be of very little consequence; and it cannot affect the
+poor, because such of them as are unable to labor will fall within the
+exception proposed. In fact the situation of America differs so widely
+from that of Europe as to the matter now under consideration, that
+hardly any maxim which applies to one will be alike applicable to the
+other. Labor is in such demand among us, that the tax will fall on the
+consumer. An able bodied man who demands one hundred dollars to go
+into military service for three years, cannot be oppressed by the
+annual payment of one dollar while not in that service. This tax,
+also, will have the good effect of placing before the eyes of Congress
+the numbers of men in the several States; an information always
+important to government.
+
+The excise proposed is liable to no other objection than what may be
+made against the mode of collection, but it is conceived that this may
+be such as can produce no ill consequences. Excise laws exist and have
+long existed in the several States. Of all taxes, those on the
+consumption of articles are most agreeable, because being mingled with
+the price, they are less sensible to the people; and without entering
+into a discussion with which speculative men have amused themselves,
+on the advantages and disadvantages of this species of taxation, it
+may be boldly affirmed, that no inconvenience can arise from laying a
+heavy tax on the use of ardent spirits. These have always been equally
+prejudicial to the constitutions and morals of the people. The tax
+will be a means of compelling vice to support the cause of virtue, and
+like the poll tax, will draw from the idle and dissolute, that
+contribution to the public service which they will not otherwise make.
+
+Having said thus much on the propriety of these taxes, I shall pray
+leave to assure you of my ready acquiescence in the choice of any
+others, which may be more agreeable to the United States in Congress,
+praying them nevertheless to consider, that as the situation of the
+respective States is widely different, it will be wise to adopt a
+variety of taxes, because by that means the consent of all will be
+more readily obtained, than if such are chosen as will fall heavy only
+on particular States.
+
+The next object is the collection, which, for the most obvious reasons
+ought to be by authority derived from the United States. The
+collection of a land tax, as has been above observed, will be very
+simple. That of the poll may be equally so, because certificates of
+the payment may annually be issued to the collectors, and they be
+bound to return the certificates or the money, and empowered to compel
+a payment by every man not possessed of a certificate. If in addition
+to this, those who travel from one State to another be obliged to take
+out and pay for a new certificate in each State, that would operate a
+useful regulation of police; and a slight distinction between those
+and the common certificates would still preserve their utility in
+numbering the people.
+
+It is not necessary to dwell on the mode of collecting these branches
+of revenue, because in reason, a determination on the propriety of the
+taxes should precede it. I will only take the liberty to drop one idea
+with respect to the impost already required. It is conceived that laws
+should be so formed, as to leave little or nothing to the discretion
+of those by whom they are executed; that revenue laws, in particular,
+should be guarded in this respect from odium; being, as they are,
+sufficiently odious in themselves; and therefore it would have been
+well to have stipulated the precise sum payable on different species
+of commodities. The objection is, that the list to be accurate must be
+numerous. But as this accuracy is necessary, the description ought to
+be very short and general, so as to comprise many commodities under
+one head; and the duty ought to be fixed according to their average
+value. The objection against this regulation, is, that the tax on fine
+commodities would be trivial, and on coarse commodities great. This
+indeed is true; but it is desirable for two reasons. First, that
+coarse and bulky commodities could not be smuggled to evade the heavy
+duty; and that fine commodities would not be smuggled to evade the
+light duty. Secondly, that coarse commodities, generally speaking,
+minister to the demands of necessity or convenience, and fine
+commodities to those of luxury. The heavy duty on the former would
+operate an encouragement to produce them at home, and by that means a
+stoppage of our commerce in time of war would be most felt by the
+wealthy, who have always the most abundant means of procuring relief.
+
+I shall now, Sir, take the liberty to suppose, that the revenues I
+have mentioned, or some others, to the amount of at least two
+millions net annual produce, were asked for and obtained, as a pledge
+to the public creditors, to continue until the principal and interest
+of the debts contracted or to be contracted, shall be finally paid.
+This supposition is made, that I may have an opportunity, thus early,
+to express my sentiments on the mode of appropriation. It would be as
+follows; any one of the revenues being estimated, a loan should be
+opened on the credit of it, by subscription to a certain amount, and
+public debts of a particular description, or specie, be received in
+payment of the subscriptions. This funded debt should be transferable
+under particular forms, calculated for the prevention of fraudulent,
+and facilitating of honest negotiations. In like manner on each of
+these revenues should subscriptions be opened, proceeding by degrees
+so as to prevent any sudden revolutions in money matters, such
+revolutions being always more or less injurious.
+
+I should further propose, that the surplus of each of these revenues,
+(and care should be taken that there would be a surplus,) should be
+carried to a sinking fund; on the credit of which, and of the general
+promises of government, new loans should be opened when necessary. The
+interest should be paid half yearly, which would be convenient to the
+creditors and to the government, as well as useful to the people at
+large; because by this means, if four different loans were opened at
+different times, the interest would be payable eight times in the
+year; and thus the money would be paid out of the treasury as fast as
+it came in; which would require four officers to manage the business,
+keep them in more constant and regular employment, dispense the
+interest so as to command the confidence and facilitate the views of
+the creditors, and return speedily the wealth obtained by taxes into
+the common stock.
+
+I know it will be objected, that such a mode of administration would
+enable speculators to perform their operations. A general answer to
+this would be, that any other mode would be more favorable to them.
+But further, I conceive, first, that it is much beneath the dignity of
+government to intermeddle in such consideration. Secondly, that
+speculators always do least mischief where they are left most at
+liberty. Thirdly, that it is not in human prudence to counteract their
+operations by laws; whereas, when left alone, they invariably
+counteract each other; and fourthly, that even if it were possible to
+prevent speculation, it is precisely the thing which ought not to be
+prevented; because he who wants money to commence, pursue, or extend
+his business, is more benefited by selling stock of any kind, even, at
+a considerable discount, than he could be by the rise of it at a
+future period; every man being able to judge better of his own
+business and situation than the government can for him.
+
+So much would not perhaps have been said on the head of this
+objection, if it did not naturally lead to a position, which has
+hitherto been ruinous, and might prove fatal. There are many men, and
+some of them honest men, whose zeal against speculation leads them to
+be sometimes unmindful not only of sound policy, but even of moral
+justice. It is not uncommon to hear, that those who have bought the
+public debts for small sums, ought only to be paid their purchase
+money. The reasons given are, that they have taken advantage of the
+distressed creditor, and shown a diffidence in the public faith. As to
+the first, it must be remembered, that in giving the creditor money
+for his debt, they have at least afforded him some relief, which he
+could not obtain elsewhere, and if they are deprived of the expected
+benefit, they will never afford such relief again. As to the second,
+those who buy up the public debts, show at least as much confidence in
+the public faith as those who sell them. But allowing, for argument
+sake, that they have exhibited the diffidence complained of, it would
+certainly be wiser to remove than to justify it. The one mode tends to
+create, establish, and secure public credit, and the other to sap,
+overturn, and destroy it. Policy is, therefore, on this, as I believe
+it to be on every other occasion, upon the same side of the question
+with honesty. Honesty tells us, that the duty of the public to pay,
+is like the same duty in an individual. Having benefited by the
+advances, they are bound to replace them to the party, or to his
+representatives. The debt is a species of property, and whether
+disposed of for the whole nominal value, or the half, for something,
+or for nothing, is totally immaterial. This right of receiving and
+the duty of paying must always continue the same. In a word, that
+government which can, through the intervention of its Courts, compel
+payment of private debts, and performance of private contracts, on
+principles of distributive justice, but refuses to be guided by those
+principles as to their own contracts, merely because they are not
+amenable to human laws, shows a flagitious contempt of moral
+obligations, which must necessarily weaken, as it ought to do,
+their authority over the people.
+
+Before I conclude this long letter, it would be unpardonable not to
+mention a fund, which has long since been suggested, and dwells still
+on the minds of many. You doubtless, Sir, anticipate my naming of what
+are called the back lands. The question as to the property of those
+lands, I confess myself utterly incompetent to decide, and shall not
+for that reason presume to enter on it. But it is my duty to mention,
+that the offer of a pledge, the right of which is contested, would
+have ill consequences, and could have no good ones. It could not
+strengthen our credit, because no one would rely on such a pledge, and
+the recurrence to it would give unfavorable impressions of our
+political sagacity. But admitting that the right of Congress is clear,
+we must remember also, that it is disputed by some considerable
+members of the confederacy. Dissentions might arise from hasty
+decisions on this subject. And a government torn by intestine
+commotions, is not likely to acquire or maintain credit at home or
+abroad.
+
+I am not, however, the less clear in my opinion, that it would be
+alike useful to the whole nation, and to those very constituent parts
+of it, that the entire disposition of those lands should be in
+Congress. Without entering, therefore, into the litigated points, I am
+induced to believe, and for that reason to suggest, the proposing this
+matter to the States as an amicable arrangement. I hope to be pardoned
+when I add, that considering the situation of South Carolina and
+Georgia, it might be proper to ask their consent to matters of the
+clearest right. But that supposing the right to be doubtful, urging
+decision in the present moment, might have a harsh and ungenerous
+appearance.
+
+But if we suppose this matter to be arranged either in the one mode or
+in the other, so that the right of Congress be rendered indisputable
+(for that is a previous point of indispensable necessity) the
+remaining question will be, as to the appropriation of that fund. And
+I confess it does not appear to me, that the benefits resulting from
+it are such as many are led to believe. When the imagination is heated
+in pursuit of an object, it is generally overrated. If these lands
+were now in the hands of Congress, and they were willing to mortgage
+them to their present creditors, unless this were accompanied with a
+due provision for the interest, it would bring no relief. If these
+lands were to be sold for the public debts, they would go off for
+almost nothing. Those who want money could not afford to buy land.
+Their certificates would be bought up for a trifle. Very few monied
+men would become possessed of them, because very little money would be
+invested in so remote a speculation. The small number of purchasers
+would easily and readily combine; of consequence they would acquire
+the lands for almost nothing, and effectually defeat the intentions of
+government; leaving it still under the necessity of making further
+provision, after having needlessly squandered an immense property.
+
+This reasoning is not new. It has been advanced on similar occasions
+before, and the experience, which all America has had of the sales of
+confiscated estates and the like, will now show that it was well
+founded. The back lands then will not answer our purpose, without the
+necessary revenues. But those revenues will alone produce the desired
+effect. The back lands may afterwards be formed into a fund, for
+opening new loans in Europe on a low interest, redeemable within a
+future period, (for instance twenty years) with a right reserved to
+the creditors of taking portions of those lands on the non-payment of
+their debts, at the expiration of the time. Two modes would offer for
+the liquidation of those debts. First, to render payment during the
+term to those who would not consent to alter the nature of the debt;
+which, if our credit be well established, would place it on the
+general footing of national faith. And secondly, to sell portions of
+the land (during the term) sufficient to discharge the mortgage. I
+persuade myself, that the consent of the reluctant might be obtained,
+and that this fund might hereafter be converted to useful purposes.
+But I hope that in a moment when the joint effort of all is
+indispensable, no causes of altercation may be mingled unnecessarily
+in a question of such infinite magnitude as the restoration of public
+credit. Let me add, Sir, that unless the money of foreigners be
+brought in for the purpose, sales of public lands would only absorb
+that surplus wealth, which might have been exhaled by taxes; so that
+in fact no new resource is produced. And that while, as at present,
+the demand for money is so great as to raise interest to five per cent
+per month, public lands must sell extremely low, were the title ever
+so clear. What then can be expected, when the validity of that title
+is one object of the war?
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, July 30th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose for the inspection of Congress,
+estimates for the service of the year 1783, amounting in the whole to
+eleven millions. I should be strictly justified in praying a
+requisition of the United States for that sum, but I conceive that the
+demands made should be the lowest which our circumstances will
+possibly admit of. I am persuaded, that if the United States in
+Congress will adopt those means of economy, which are in their power,
+we may save two millions; and, therefore, on a presumption that those
+means will be adopted, I shall ask only nine millions. Congress will
+observe, that the estimates of the Marine Department amount to two
+millions and a half; whereas there was no estimate made for that
+service in the last year, any more than for the Civil List. There can
+be no doubt that the enemy have changed their mode of warfare, and
+will make their principal exertions in the naval line. It becomes us,
+therefore, to make like exertions, and that for the plainest reasons.
+
+Experience has shown that the efforts to obtain a large army have for
+many years proved utterly fruitless. The only effect of those efforts,
+has been to enhance the price of such men as were obtained, and
+thereby to disable the States, who exerted themselves to raise
+recruits, from pouring supplies into the public Treasury. Thus we have
+not only been unable to get more men, but also to pay and support
+those which we had gotten. Admitting, however, that the required
+number were obtained and properly supported as an army, these things
+are clear; first, that without naval aid we could not make an
+impression on the enemy's posts. Secondly, that they would be able to
+harass and distress us in every quarter, by predatory incursions.
+Thirdly, that they would prevent us from receiving those supplies,
+which are necessary alike to the operations and existence of an army.
+And, fourthly, that their inroads on our commerce would produce such
+distress to the country, as to make our revenues utterly unproductive,
+and finally bring our affairs to destruction.
+
+An army, therefore, without a navy would be burdensome, without being
+able to give essential aid, supposing the enemy to have changed their
+system of carrying on the war. But if we had a navy, we should be
+able, first, to prevent the enemy from making predatory incursions.
+Secondly, we should, at least, keep the ships they have on our coast
+together, which would prevent them from injuring our commerce, or
+obstructing our supplies. Thirdly, if they kept in this country an
+equal or superior force, we should by that means have made a powerful
+diversion in favor of our allies, and contributed to give them a naval
+superiority elsewhere. Fourthly, if our enemy did not keep an equal or
+superior force in this country, we should be able by cruising to
+protect our commerce, annoy theirs, and cut off the supplies directed
+to their posts, so as to distress their finances and relieve our own.
+Fifthly, by economising our funds, and constructing six ships
+annually, we should advance so rapidly to maritime importance, that
+our enemy would be convinced, not only of the impossibility of
+subduing us, but also of the certainty that his forces in this country
+must eventually be lost, without being able to produce any possible
+advantage. And, sixthly, we should, in this mode, recover the full
+possession of our country, without the expense of blood or treasure,
+which must attend any other mode of operations; and while we are
+pursuing those steps, which lead to the possession of our natural
+strength and defence.
+
+I trust, Sir, that the influence of these considerations, will not
+only lead the councils of America to adopt the measures necessary for
+establishing a navy, but that by economising as much as possible, we
+may be able (from the sums now to be asked for) to do more in that
+line than is contained in the estimate; but as this must depend on
+circumstances, which we cannot command, so it is not prudent or proper
+to rely on it. Having already stated the lowest necessary sum at nine
+millions, I proceed, Sir, to propose that four millions be borrowed,
+which will reduce the quotas to five millions. I make this
+proposition, under the idea, that the plans contained in my letter of
+yesterday's date be adopted. The quotas then being five millions, the
+sum total of what will be taken from the people will amount to only
+seven millions; and of that, full twelve hundred thousand will be paid
+back as the interest of our domestic debt, so as not to be, in fact,
+any burden on the whole people, though a necessary relief to a
+considerable part of them. On this plain statement I shall make no
+comment. I shall only pray, that as much expedition may attend the
+deliberations on these objects as the importance of them will permit,
+so that the States may be in a situation to make speedy decisions. And
+this is the more necessary, as the negotiations for a loan must be
+opened in Europe early next winter.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.[9]
+
+ [9] _August 1st._ This day many people expected that my
+ engagements to supply the Paymaster General with money to
+ discharge the notes, which, under that engagement he had issued to
+ the officers of the army on account of their pay, would be broken,
+ and, consequently, that my public credit would be lost, and a
+ train of evils, easy to be conceived, ensue to the United States.
+ But having warranted Mr Pierce, the Paymaster General, to give his
+ notes in February last to all the officers of our army, viz. to
+ all subalterns for the amount of three months' pay, that is, for
+ January, February, and March, 1782, I have for some time past been
+ providing for the performance of this engagement, and to
+ accomplish it, have been distressed in a variety of channels. When
+ this engagement was taken, it was at the pressing instance of the
+ Commander in Chief, and to enable the officers to clothe
+ themselves, which they could not have done without that seasonable
+ aid. At the time this engagement was made, I had a right to expect
+ that four millions of dollars would be paid into the treasury of
+ the United States; as, agreeable to the requisitions of Congress,
+ two millions were to be paid on the 1st day of April, and two
+ millions on the 1st day of July. Instead of receiving those sums,
+ I have not to this hour received fifty thousand dollars on account
+ thereof, and have, therefore, been compelled to raise this money
+ by selling bills of exchange on France. Upon sending for Mr
+ Pierce's return of the notes I issued, I find they amount to one
+ hundred and forty thousand two hundred and sixtysix dollars; of
+ which Mr Sands is possessed of thirtynine thousand, which he has
+ delivered up on my paying part of the amount now, and part to be
+ paid a short time hence, which leaves to be provided for about
+ eightyfive thousand nine hundred and fortysix dollars; and as this
+ debt will be punctually paid, it leaves only an unprovided balance
+ of fifteen thousand three hundred and twenty dollars, which I
+ think will be ready before payment is demanded; so that the hopes
+ and expectations of the malicious and disaffected will in this
+ instance be disappointed. _Diary._
+
+ * * * * *
+
+TO THE GOVERNOR OF RHODE ISLAND.
+
+ Office of Finance, August 2d, 1782.
+
+ Sir,
+
+I presume you have been before this informed, that all the States
+except Rhode Island, have acceded to the impost law. A committee of
+Congress lately appointed on this subject, did me the honor to request
+my attendance, with that of your Delegates, to hear the objections
+from them, and know from me the circumstances attending the
+requisition. After a long conversation the committee were about to
+confer on a report, which, at my request they were pleased to suspend,
+that I might have the last opportunity of praying your attention to
+the subject. And I was induced to make that request, as well for the
+avoiding those disagreeable discussions, which cannot exist between
+the Union and an individual State without inducing pernicious
+consequences, as because it appeared to me, that the reasons urged
+against passing the impost are not conclusive, as some have thought
+them to be.
+
+Mr Howell was so kind as to promise, that he would state his
+objections in writing. This he has done, and a copy of them is
+enclosed. They are,
+
+1st. That the impost would draw a disproportionate supply from either
+merchant or consumer.
+
+2dly. That Rhode Island imports and consumes more of foreign articles
+in proportion, than any other State.
+
+3dly. That, from her maritime situation she is exposed to great
+losses.
+
+4thly. That the exclusive benefit of the impost should be carried to
+account of the State.
+
+5thly. That the impost will raise prices, and therefore manufactures
+brought from the neighboring States will draw a revenue from Rhode
+Island.
+
+6thly. That duties imposed by the neighboring States may compel Rhode
+Island to subsist by foreign articles.
+
+7thly. That many men will be employed in the collection.
+
+8thly. That it would be evaded by smuggling; and,
+
+9thly. That the collection may be objectionable.
+
+To each of these I will reply in their order.
+
+1st. To determine whether the impost will act proportionably or not,
+we must consider in what respect the proportion is to be taken. If it
+be a proportion between two of the States, that will be considered
+under the second head; if it be a proportion among the people of the
+same State, it is only recurring to the question, whether the taxes on
+consumption are useful; for so long as no man pays the tax, but he who
+chooses to purchase the article, the disproportion, if any, is of his
+own creating. The necessity of a revenue to a certain amount must be
+admitted. Is it then wise to raise a part of it from the _consumption_
+of foreign articles? I say the consumption, because the tax
+undoubtedly falls on the consumer and not on the importer. If this be
+not a wise tax, what shall we substitute? Articles of primary and
+immediate necessity are made in the State of Rhode Island. Both food
+and raiment can be had without crossing the Atlantic in search of
+them. Every man, therefore, is at liberty to use foreign articles or
+not. If he does use them the tax is voluntary, and therefore cannot be
+considered as disproportionate, any more than for one man to wear silk
+while another wears wool.
+
+2dly. That Rhode Island consumes more foreign commodities in
+proportion than any other State in the Union, cannot be admitted.
+Rhode Island certainly makes many commodities, but the more southern
+States are in the habit of importing everything.
+
+3dly. That Rhode Island is, from its situation, liable to the unhappy
+accidents of war is true; but this incidental evil, arising from an
+advantageous position, cannot be adduced as a plea for exemption from
+public burdens. New York has suffered, at least as much and as long.
+
+4thly. That the exclusive benefits of an impost should be carried to
+the State where it is collected, is a position unjust in itself, and
+which would forever prevent any duties; wherefore it would cut off not
+only one of the most productive, but one of the most useful branches
+of revenue. Rhode Island, Pennsylvania and some other States carry on
+the commerce of their neighbors as well as their own, from which they
+derive great riches. The duties are always (like the risks and the
+expenses) paid by the consumer; for unless this be so, no tolerable
+reason can be assigned, why foreign commodities should be dearer in
+war than in peace. If then a considerable duty were laid by the
+commercial State, it would fall on its uncommercial neighbor. That
+neighbor, therefore, would immediately take measures to carry on its
+own commerce, and prohibit the bringing of articles from the
+commercial State. Those measures would produce a repeal of the duty. I
+take no notice here of the altercations which would arise; it is
+sufficient to show, that the private view of revenue for the State
+would be defeated.
+
+5thly, and 6thly. These objections do not appear to me to apply,
+because in the first place, I can hardly suppose the neighboring
+States will ever think of laying duties on the produce, for if any of
+them should, her citizens would be the sufferers. Secondly, if the
+article of produce be left uncontrolled by the government every
+individual will be a check on the avidity of his neighbors, and if by
+this means a piece of American goods can be vended cheaper in Rhode
+Island than a piece of foreign goods, the consumer in Rhode Island
+will by the purchase of it save money to himself, and therefore to
+the country. And as the duty is collected only on foreign goods he
+will not pay the duty, and of course the duty on his State will be so
+much the less.
+
+7thly. The seventh objection will apply more strongly to almost any
+other kind of tax, because this may be collected by a very small
+number of men.
+
+8thly. The eighth objection I cannot admit, because forming my opinion
+of that State from what I conceive to be the character of the
+gentleman who makes the objection, I cannot believe it to be valid.
+Smuggling was formerly not disreputable because it was the evading of
+laws, which were not made by proper authority, and therefore not
+obligatory; but nothing can be more infamous than to defraud our own
+government of so poor a pittance; and I trust, that if any individual
+were inclined to do so, he would be detected by the first person who
+saw him, and would be as much exposed to the resentment and contempt
+of his fellow citizens as an informer would have been in the times
+alluded to.
+
+9thly. The last objection ought not to be made, because there is no
+reason to suppose, that Congress would devise means to oppress their
+fellow citizens. But it is one of our greatest misfortunes, that men
+are apt to reason from one thing to another that is very dissimilar.
+The parliament of England cared nothing about the consequences of laws
+made for us, because they were not affected by them. This is always
+the case under such circumstances, and forms one of the most powerful
+arguments in favor of free governments. But how can it be supposed,
+that a member of Congress who is liable to be recalled at a moment's
+warning would join in measures which are oppressive to the people, and
+which he must necessarily himself feel the weight of, without deriving
+any advantage from them. For it is not here as in England, that there
+is a King to buy votes for bad purposes. If the members of Congress be
+seduced, it must be by the Congress, which is absurd. If indeed the
+Congress were either an hereditary body, self-existent, or if they
+were self-elected, there might be room for apprehension, but as they
+are, there can be none.
+
+Now, Sir, the state of things is shortly this. The United States are
+deeply indebted to the people of America. They have called for
+revenues to pay their debts in a course of years, being the only means
+of reviving credit and lightening burdens. All the States consent but
+Rhode Island, to whose citizens a very considerable part of this debt
+is due. Of consequence the whole is suspended. The reasons assigned
+are purely local, and I verily believe are founded on mistaken
+principles. The revenue, however, if granted is insufficient. More
+must be demanded; and consequently, as all taxes are unpleasant some
+State will be found to oppose any which can be devised, on quite as
+good ground as the present opposition. What then is the consequence?
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO SIR GUY CARLETON.
+
+ Office of Finance, August 20th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose to your Excellency letters from the
+masters of two flag ships, which have arrived in this port with
+American prisoners. I have sent them in by Mr John Greene, one of the
+persons that came in the Symmetry, who will bring such orders, as your
+Excellency may think proper to transmit to those gentlemen. I have
+further to mention, Sir, that I intend delivering to one of them such
+British marine prisoners as may be in this place, or its vicinity,
+when they depart, provided their receipt shall be deemed a proper
+evidence of the delivery, on a settlement of the account hereafter. On
+this point I shall be happy to learn your sentiments. It might have
+been more proper to have addressed myself to Admiral Digby, especially
+as Mr Greene carries the duplicates of a former letter to him. But as
+the King's servants in England have placed the masters of these flags
+under your Excellency's directions, I was led to conclude, that if the
+concurrence of the Admiral should be necessary, you would take the
+trouble of obtaining it.
+
+ I have the honor to be, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO ALEXANDER HAMILTON.
+
+ Office of Finance, August 28th, 1782.
+
+ Sir,
+
+I have duly received your several favors of the 22d and 27th of July,
+and 10th and 13th of August. My not answering them is owing to causes
+which you will easily conceive; for you will easily conceive the
+multiplicity of objects to which I must turn my attention. I am very
+sorry to learn that you can no longer continue in the office of
+Receiver. It would have given me great pleasure that you should have
+done so, because I am sure that you would have rendered very signal
+services to the public cause. This you will now do in another line,
+more important as it is more extensive; and the justness of your
+sentiments on public affairs, induce my warm wish that you may find a
+place in Congress so agreeable, that you may be induced to continue in
+it.
+
+I am sorry to learn, that any letter of mine should have given
+offence; but I conclude that this effect must follow from many parts
+of my writings and conduct; because the steady pursuit of what appears
+to be the true line of duty will necessarily cross the various oblique
+views of interest and opinion. To offend is sometimes a fault, always
+a misfortune. The letter in question is, I suppose, under the date of
+the 11th of December, of which I enclose you a copy. Let me at the
+same time assure you, that in all your excellent letter of the 13th
+instant, I most esteem the clause now in question because it contains
+that useful information which is least common. I will make no
+apologies for the letter, to any one, because apologies are rarely
+useful, and where the intention has been good, they are to candid
+minds unnecessary. Possessed of the facts you can guard against
+misrepresentation, and I have found that to be the most hostile
+weapon, which either my personal or political enemies have been able
+to wield against me.
+
+I have not even yet seen the resolutions of your Legislature,
+relative to an extension of the powers of Congress. I had supposed the
+same reason for them that you have expressed. Indeed power is
+generally such a darling object with weak minds, that they must feel
+extreme reluctance to bid it farewell; neither do I believe that
+anything will induce a general consent to part with it, but a perfect
+sense of absolute necessity. This may arise from two sources, the one
+of reason the other of feeling; the former more safe and more
+uncertain, the latter always secure and often dangerous. It is, my
+Dear Sir, in circumstances like these, that a patriotic mind seeking
+the great good of the whole on enlightened principles, can best be
+distinguished from those vulgar souls, whose narrow optics can see but
+the little circle of selfish concerns. Unhappily such souls are but
+too common, and but too often fill the seats of dignity and authority.
+A firm, wise, manly, system of federal government, is what I once
+wished, what I now hope, what I dare not expect, but what I will not
+despair of.
+
+Your description of the mode of collecting taxes, contains an epitome
+of the follies, which prevail from one end of the continent to the
+other. There is no end to the absurdity of human nature; mankind seem
+to delight in contrast and paradox, for surely nothing else could
+sanctify (during a contest on the precise point of being taxed by our
+own consent) the arbitrary police, which on this subject, almost
+universally prevails. God grant you success in your views to amend it.
+Your ideas on the subject are perfectly correspondent to my own. As to
+your doubt on the mode of collecting it, I would wish to obviate it by
+the observation, that the further off we can remove the appointment of
+collectors from popular influence, the more effectual will be their
+operations; and the more they conform to the views of Congress, the
+more effectually will they enable that body to provide for general
+defence. In political life, the creature will generally pay some
+deference to the creator. The having a double set of officers is
+indeed an evil, but a good thing is not always to be rejected because
+of that necessary portion of evil, which in the course of things must
+be attached to it. Neither is this a necessary evil, for with a proper
+federal government, army, navy, and revenue, the civil administration
+might well be provided for, by a stamp act, roads by turnpikes, and
+navigation by tolls.
+
+The account you give of the State is by no means flattering; and the
+more true it appears, the more concern it gives me. The loan I hope
+will be completed, and I wish the _whole_ amount of the tax may be
+collected. The forage plan I have disagreed to, and enclose for your
+information, the copy of my letter on that subject to the Quarter
+Master General. I believe your State is exhausted, but perhaps even
+you consider it as being more so than it is. The certificates, which
+now form a useless load, will (if the United States adopt, and the
+several States agree, to a plan now before Congress) become valuable
+property. This will afford great relief. The scarcity of money also
+may be immediately relieved, if the love of popular favor would so far
+give way to the love of public good, as to enforce plentiful taxation.
+The necessity of having money, will always produce money. The desire
+of having it produces, you see, so much as is necessary to gratify the
+desire of enjoying foreign luxuries. Turn the stream, which now flows
+in the channels of commerce, to those of revenue, and the business is
+completed. Unfortunately for us, this is an operation which requires
+fortitude, perseverance, virtue, and which cannot be effected by the
+weak or wicked minds, who have only partial, private, or interested
+views.
+
+When I consider the exertions, which the country has already made,
+under striking disadvantages, and with astonishing prodigality of
+national wealth, by pernicious modes of applying it, I persuade myself
+that regular consistent efforts would produce much more than you
+suppose.
+
+For your accurate, clear, and comprehensive description of general and
+particular characters, sentiments, and opinions, accept my sincere
+thanks and warm approbation. They do equal justice to your talents,
+both for observation and description.
+
+Mr Duer's attention to the business of his contract, is very pleasing
+to me, and honorable to himself. I am very sorry that he should lose
+by it, but to avoid this as much as possible, I am determined to
+support him by liberal advances so soon as it shall be in my power to
+do it.
+
+ I pray you to believe me to be yours, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, August 20th, 1782.
+
+ Sir,
+
+I have now to address you on a subject, which cannot be more painful
+to you than it is to me. I am determined to act justly, and therefore
+when I find that I shall be unable to pay the contractors, I will give
+them due notice in season. This period is fast approaching, and unless
+the States make infinitely greater exertions than they have hitherto
+done, it must soon arrive. To comprise this matter in a short compass,
+your army is fed at a dollar for nine rations, or three dollars and a
+third per month to feed a soldier. Twentyfour thousand rations per day
+would therefore amount to eighty thousand dollars monthly, which is
+more than had been paid by all the States on the 1st instant. The
+object of this letter, Sir, is to request that you will consider how
+your army is to be subsisted or kept together, if I am obliged to
+dissolve the contracts. I pray that Heaven may direct your mind to
+some mode by which we may be yet saved. I have done all that I could,
+and given repeated warnings of the consequences, but it is like
+preaching to the dead. Every exertion I am capable of shall be
+continued while there is the least glimmering of hope.
+
+ I have the honor to be, with great respect, &c.
+
+ ROBERT MORRIS.[10]
+
+ [10] _August 29th._ Mr Duane, Arthur Lee, Abraham Clark, and
+ Samuel Osgood, a Committee of Inquiry, came this morning and
+ proceeded in their business. They desired me to make out an
+ account of all the moneys that have come into my hands, and those
+ which I have paid. They asked the reasons for employing Mr
+ Swanwick, and proceeded in other parts of their inquiry until the
+ hour for going to Congress arrived. They inquired into the reasons
+ for appointing Receivers of Continental taxes in each State, and
+ Mr Clark expressed doubts of my authority to make those
+ appointments. I therefore produced the Acts of Congress of the 3d
+ of November, 1781, which satisfied him on that point. I informed
+ the Committee, that my reasons for making new appointments, in
+ preference to employing the Loan officers, were first, the Loan
+ officers have not settled their accounts with the United States,
+ and some of them have long accounts depending; secondly, although
+ some of them may be fit, all are not; thirdly, had the money paid
+ by the States, for the current expenses of the year, been put into
+ the hands of the Loan officers, the people entitled to the
+ interest on Loan Office certificates, issued by these gentlemen,
+ would have been very clamorous for payment. They would not have
+ entered into, or admitted the distinction of moneys granted for
+ revenue or for current expenses of the year. _Diary._
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, August 30th, 1782.
+
+ Sir,
+
+My letter of the 29th, which is enclosed, I have written for two
+reasons; one that you may be informed and I may stand justified in
+every respect, should the event take place; the other, which is the
+principal one, that you may found a warm application on it to the
+States. You will, I hope, keep this entirely to yourself. You will
+see, that I have not intrusted a view of it to my Secretary, or to any
+of the clerks. The effect of your application must depend on raising a
+very general alarm.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.[11]
+
+ [11] _September 3d._ This day I requested a Committee of Congress
+ for a conference. Mr Rutledge, Mr Osgood, and Mr Madison, were
+ appointed, and I proposed to them to present the seventyfour gun
+ ship, America, to his Most Christian Majesty; who has lately lost
+ _Le Magnifique_, a seventyfour gun ship, in the harbor of Boston.
+ The Committee were unanimously of opinion with me, that this
+ unfortunate incident afforded Congress an opportunity of showing a
+ mark of the sincerity of their attachment to their ally, by
+ enabling his Minister to continue the force of his fleet at a time
+ when it could not otherwise be done. Besides the propriety which
+ there is in showing this mark of attachment and gratitude to his
+ Most Christian Majesty, I have several other strong and pointed
+ reasons, which induced me to propose and always to support this
+ measure. The want of money in our treasury to fit, equip, and man
+ this ship, is amongst the number. _Diary._
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, September 9th, 1782.
+
+ Sir,
+
+I did myself the honor to propose, in my letter of the 30th of July
+last, the borrowing or four millions of dollars for the service of the
+ensuing year. It always gives me pain to repeat any application to
+Congress, because it is my duty to suppose they pay every proper
+attention to those things, which are submitted to their consideration.
+But I must take the liberty, on this occasion to observe, that the
+many engagements I have been compelled to make for the purpose of
+supporting the public service to the present moment, will all fall due
+between this and the first of next year.
+
+My prospects of relief from the revenues of America are slender
+indeed. As a safe opportunity for Europe will offer in a few days,
+Congress will be pleased to consider that the moments are precious.
+They will consider, that I cannot act in this business without their
+authority, and that it will take some days to prepare the necessary
+despatches, even after that authority is given. I hope, Sir, that I
+shall not be understood as desiring to precipitate any acts or
+resolutions. We are fast approaching to the winter. If everything
+could be ready by the 15th of this month, we could not reckon on the
+arrival of despatches at Paris before the beginning of November. A
+month is but a short period to transact this important business, and
+this would not leave another month for the winter's passage back.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, September 9th, 1782.
+
+ Dear Sir,
+
+The dates of the enclosed letters will show you my extreme reluctance
+to wound your mind with the anxieties which distress my own. At the
+time they were written, I was sore pressed on every quarter; but a
+gleam of hope broke in upon me, and induced me to bear up still longer
+against the torrent of demands, which was rushing upon me. These would
+long since have overwhelmed me, had I been supported only by the
+revenues drawn from the States.
+
+At length, however, my other resources, which are nearly exhausted,
+have become useless by the total stagnation of trade, owing to the
+expectations of peace. There is, therefore, no other dependence left
+but the taxes, and, unless these become immediately productive of
+funds sufficient to feed our troops, I need not describe the
+consequences. Already I am in arrears, in spite of my efforts. I am
+determined, however, to continue those efforts to the last moment, but
+at present, I really know not which way to turn myself.
+
+ With the most sincere esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS WILLINK & CO., AMSTERDAM.
+
+ Office of Finance, September 24th, 1782.
+
+ Gentlemen,
+
+Presuming, from the letters of yourself and of Mr Adams, that the loan
+opened on account of the United States of America under your auspices
+is filled, I do myself the honor to enclose you sundry acts of
+Congress, by which you will see that the amount is subject to my
+disposal. Whatever measures I may take, you will from time to time
+receive due notice of, unless the miscarriage of letters by the
+accidents to which they are at present subjected should prevent.
+
+I have now in view a money negotiation, which may or may not take
+place according to circumstances, but which will probably be
+accomplished, to the amount of from one to two millions of florins. If
+it should be effected, Messrs Le Couteulx & Co. bankers at Paris, will
+have occasion to draw on you. I am now, therefore, to desire that the
+bills drawn by that house to whatever amount, be punctually honored
+and paid on account of the United States. It is in a reliance on this
+that I shall take my measures, and a failure of payment would be
+attended with the worst consequences.
+
+ I have the honor to be, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS LE COUTEULX & CO., PARIS.
+
+ Office of Finance, September 24th, 1782.
+
+ Gentlemen,
+
+Enclosed you have letters of this date to the house of Messrs Le
+Couteulx, at Cadiz, and to Wilhelm and Jan Willink, Nicholas and Jacob
+Van Staphorst, and De la Land and Fynjé, at Amsterdam. These two
+letters, which I am to request that you will forward, are left open
+for your perusal, and will explain to you the object which I now have
+in view.
+
+The United States having moneys in Holland, which are very necessary
+for the public service here, I have deemed it best to bring them
+through the Havana, for the following reasons. First, bills of
+exchange cannot be negotiated here to the necessary amount, and are
+even then negotiated at the rate of thirteen per cent discount.
+Secondly, as it is, therefore, necessary to import money, the risk is
+less from the Havana than from Europe. Thirdly, it might not be
+agreeable to the prejudices of many to draw from Europe their
+circulating coin; and, fourthly, I expect that a considerable gain
+will be made on the negotiations. Thus, for instance, to take it in
+its greatest extent, I am informed that bills on Cadiz, at thirty
+days' sight, sell at the Havana for an advance of eight per cent; and
+that bills on Paris sell at Cadiz, for an advance of nine per cent;
+and there is also an advance on bills drawn from Paris on Amsterdam;
+to which may be added, that a considerable time is also gained in
+these various negotiations; and, therefore, if any benefit can be
+derived to the United States from that circumstance, you will govern
+yourself accordingly. In this, as well as in every other circumstance
+relating to the business, I have on you, Gentlemen, the most perfect
+reliance.
+
+I think it will be best for you to know immediately of the gentlemen
+in Amsterdam, whether they will answer your drafts to the amount;
+because, if they should raise obstacles in the way, those may be
+removed in season from this country, provided an early notice be
+transmitted; for I expect you will receive this letter by the time Mr
+---- reaches the Havana, if not before; and I do not suppose that his
+bills can reach Cadiz in less than two months; and, of course, at one
+usance only (and they shall, if that can be done without loss, be
+drawn at two usances) they will not be payable until three months, and
+then if time is necessary, you will direct the house in Cadiz to draw
+at two usances more, which will bring the business to between five and
+six months from your receipt of my letters. At any rate, it will not
+do, that Mr ----'s bills be protested; I must rely on you to prevent
+an accident, which would be attended with such fatal consequences, and
+shall take measures to put you in a capacity to answer them
+seasonably.
+
+ With perfect respect, &c.
+
+ ROBERT MORRIS.
+
+_P. S._ You will observe, that there is in the foregoing letter, a
+blank for the name of the person who is to be employed in this
+business. The reason is, that the gentleman I spoke to on the subject,
+is prevented by the circumstances of his family from going to Havana.
+I shall write to you further on the subject when I shall have taken
+other arrangements.
+
+ R. M.
+
+ * * * * *
+
+TO B. FRANKLIN, JOHN ADAMS, AND JOHN JAY.
+
+ Office of Finance, September 25th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose for your perusal, Acts of Congress of
+the 27th of November and 3d of December, 1781, and the 14th and 3d
+instant. In consequence I have to request, that all the bills hitherto
+drawn by authority of Congress be paid and the accounts of those
+transactions closed. After this is done, and I hope and believe that
+while I am writing this letter it may have been already accomplished,
+you will be freed from the torment and perplexity of attending to
+money matters.
+
+I am persuaded that this consideration will be highly pleasing to you,
+as such things must necessarily interfere with your more important
+attention. I have long since requested the Secretary of Foreign
+Affairs to desire you would appoint an agent or attorney here, to
+receive and remit your salary, which will be paid quarterly; in the
+meantime it is paid to him for your use. As to any contingent expenses
+which may arise, I shall readily make the necessary advances upon Mr
+Livingston's application. These arrangements will, I hope, be both
+useful and agreeable to you.
+
+ I am, Sir, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JOHN ADAMS.
+
+ Office of Finance, September 27th, 1782.
+
+ Sir,
+
+I do myself the pleasure to congratulate you on the success of your
+patriotic labors in Holland. The general tribute paid to your
+abilities on this occasion, will so well dispense with the addition of
+my feeble voice, that I shall spare your delicacy the pain of
+expressing my sentiments.
+
+The enclosed resolutions and copies of letters will convey to you so
+fully the views of Congress, and explain so clearly my conceptions on
+the subject, that very little need be added. If the application to
+France should fail of success, which I cannot permit myself to
+believe, you will then have a new opportunity of showing the influence
+you have acquired over the minds of men in the country where you
+reside, and of exerting it in the manner most beneficial to our
+country.
+
+Before I conclude this letter, I must congratulate your Excellency on
+the success of the loan you have already opened, which I consider as
+being by this time completed.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS LE COUTEULX & CO.
+
+ Office of Finance, September 27th, 1782.
+
+ Gentlemen,
+
+I write to Dr Franklin under this date to place in your hands five
+hundred thousand dollars, as soon as he possibly can. I hope it may be
+effected speedily. My object in making this deposit is, that you may
+remit to the amount of that sum to the Havana, provided bills on that
+place can be purchased at a discount of twentyfive per cent; by which
+I mean, that seventyfive dollars in Europe should purchase one hundred
+dollars in Havana. If the negotiations cannot be effected upon those
+terms, you will retain the money in your hands subject to my after
+direction. I suppose that those, or better terms, can be obtained for
+the following reasons.
+
+The person who has money in the Havana, by selling bills will
+immediately possess himself of the amount for which they are sold; and
+therefore, allowing time for the bills to go over and be presented,
+with the thirty days of payment, and the further time, which would be
+necessary to remit that money from the Havana to Cadiz, and he would
+gain from eight to twelve months' time, which is itself important; but
+in addition to this, there is the duty of nine per cent on exporting
+cash from the Havana; a freight, which is I suppose considerable; a
+risk which is very great, and perhaps a farther duty on the arrival at
+Cadiz. To which may be added, the advance on bills drawn at Cadiz on
+the different parts of Europe.
+
+If you can accomplish the negotiation on the terms I have mentioned,
+you will then remit the bills to a good house in the Havana, to
+receive the money and hold it subject to my order; and you will, if
+you can, fix the terms on which that House are to do the business.
+Whether anything of this sort takes place or not, I am to request that
+you will give me every information on the subject, which you can
+acquire.
+
+I am, Gentlemen, your most obedient and humble servant,
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, September 27th, 1782.
+
+ Sir,
+
+I have the honor to enclose the copy of Acts of Congress of the 14th
+and 23d instant, together with the copy of my letter of the 30th of
+July, covering the estimates for the year 1783. These estimates are
+not yet finally decided on. By the Act of the 14th you are, as you
+perceive, instructed to communicate the resolution for borrowing four
+millions of dollars, to his Most Christian Majesty; and first, to
+assure his Majesty of the high sense, which the United States in
+Congress assembled entertain of his friendship and generous exertions.
+Secondly, their reliance on a continuance of them; and thirdly, the
+necessity of applying to his Majesty on the present occasion.
+
+From this, and even more particularly from the Act of the 23d, you
+will see, that it is the wish of Congress to obtain this money from or
+by means of the King. After the decisive expressions contained in
+those resolutions, of the sense of our Sovereign, I am sure that it is
+unnecessary for me to attempt anything like argument to induce your
+exertions. I shall, therefore, rather confine myself to giving
+information. The grateful sense of the King's exertions, which has so
+warmly impressed your bosom, operates with undiminished force upon
+Congress; and what is of more importance, in a country like ours, has
+the strongest influence upon the whole whig interest of America.
+
+I have no doubt but that the King's Minister here has given his Court
+regular information on this and every other subject of equal
+importance, and, therefore, any general assurances on your part will
+be complimentary, and in some degree superfluous. But there is a kind
+of knowledge not easily attainable by foreigners in any country,
+particularly on such a matter as the present. It is not amiss,
+therefore, that I should convey it to you, and your good sense will
+apply it in the most proper manner. You (of all men in the world) are
+not now to learn, that the sour English prejudices against everything
+French had taken deep root in the minds of America. It could not have
+been expected that this should be obliterated in a moment. But by
+degrees almost every trace of it has been effaced. The conduct of
+Britain has weaned us from our attachments, and those very attachments
+have been transferred, in a great measure, to France.
+
+Whatever remains of monarchical disposition exist, are disposing
+themselves fast to a connexion with the French monarchy; for the
+British adherents begin to feel the pangs of a deep despair, which
+must generate a deep aversion. The British army here, felt the
+national haughtiness increased by the contempt which, as Englishmen,
+they could not but feel for those who had combined against the freedom
+of their own country. Every part of their conduct, therefore, towards
+the tories, while they flattered themselves with victory showed how
+much they despised their American friends. Now that a reverse of
+fortune has brought on a little consideration, they find a total
+separation from this country unavoidable. They must feel for the fate
+of their country; they must, therefore, hate, but they must respect
+us, too; while their own adherents are both detested and despised.
+Since General Carleton's arrival, or rather since the change of
+Ministers, the British have shown that their intention is, if
+possible, to conciliate the rulers of America; and by the influence of
+a common language and similar laws, with the force of ancient habits
+and mutual friendships not yet forgotten, not only to renew again the
+commercial intercourse, but to substitute a new federal connexion to
+their ancient sovereignty and dominion.
+
+The assurance, therefore, which Congress have directed you to make,
+must not be considered in the number of those idle compliments, which
+are the common currency or small change of a Court. It is an assurance
+important because it is founded in truth, and more important still
+because it is dictated by the affections of a people. If I may venture
+an opinion still further, it is principally important because of the
+critical situation of things. The sudden change of Britain from
+vengeance and war to kindness and conciliation must have effects; and
+those effects, whether they be contempt or affection, will depend
+less, perhaps, on them than upon others. It cannot be doubted that
+they will ring all the changes upon their usual theme of Gallic
+ambition. They will naturally insinuate the idea, that France will
+neglect us when we have served her purposes; and it would be very
+strange if they did not find some converts among that class of people
+who would sacrifice, to present ease, every future consideration. What
+I have said will, I am confident, put your mind into the train of
+reflections, which arise out of our situation, and you will draw the
+proper conclusions and make a proper appreciation of them.
+
+Congress have directed you further, to express to the King their
+reliance on a continuation of his friendship and exertions. I have no
+doubt that a full belief of this reliance will be easily inculcated.
+Indeed, I apprehend, that we shall be considered as relying too much
+on France, or in other words, doing too little for ourselves. There
+can be no sort of doubt, that a good argument may be raised on the
+usual position, that the nation which will not keep itself, does not
+merit the aid of others; and it would be easy to tell us, that we
+must put our own shoulders to the wheel before we call upon Hercules.
+In short, if the application be refused or evaded, nothing can be
+easier than to assign very good reasons why it is done. But you have
+very justly remarked in one of your letters, that it is possible to
+get the better in argument, and to get nothing else. So it might be
+here. True sagacity consists in making proper distinctions, and true
+wisdom in taking determinations according to those distinctions.
+Twenty years hence, when time and habit have settled and completed the
+federal constitution of America, Congress will not think of relying on
+any other than that Being, to whose justice they appealed at the
+commencement of their opposition. But there is a period in the
+progress of things, a crisis between the ardor of enthusiasm and the
+authority of laws, when much skill and management are necessary to
+those who are charged with administering the affairs of a nation. I
+have already taken occasion to observe, that the present moment is
+rendered particularly critical by the conduct of the enemy; and I
+would add here, (if I dared even in idea to separate Congress from
+those they represent,) that now above all other times, Congress must
+rely on the exertions of their ally. This sentiment would open to his
+Majesty's Ministers many reflections, the least of which has a
+material connexion with the interests of his kingdom. But an argument
+of no little weight, is that which applies itself directly to the
+bosom of a young and generous prince, who would be greatly wounded to
+see that temple, dedicated to humanity, which he has taken so much
+pains to rear, fall at once into ruins, by a remission of the last
+cares, which are necessary for giving solidity to the structure. I
+think I might add, that there are some occasions on which a good
+heart is the best counsellor.
+
+The third topic on which Congress have directed you to dwell upon, is
+the necessity of their present application; and it is this which falls
+most particularly within my department; for I doubt not that every
+sentiment on the other objects, has been most forcibly inculcated by
+the Minister of Foreign Affairs. I might write volumes on our
+necessities, and not convey to you so accurate an idea, as by the
+relation of a single fact, which you may see in the public newspapers.
+It is, that the requisitions of last October for eight millions, had
+produced on the 1st day of this month only one hundred and twentyfive
+thousand dollars. You are so perfectly a master of everything, which
+relates to calculation, that I need not state anything of our
+expenses. You know also what were our resources beyond taxation, and
+therefore you have every material for forming an accurate idea of our
+distresses. The smallness of the sum which has been paid will
+doubtless astonish you; and it is only by conversation or a long
+history that you could see why it has been no greater. The people are
+undoubtedly able to pay, but they have easily persuaded themselves
+into a conviction of their own inability; and in a government like
+ours the belief creates the thing.
+
+The mode of laying and levying taxes are vicious in the extreme; the
+faults can be demonstrated; but would it not be a new thing under the
+sun, that people should obey the voice of reason? Experience of the
+evil is always a preliminary to amendment, and is frequently unable to
+effect it. Many who see the right road, and approve it, continue to
+follow the wrong road, because it leads to popularity. The love of
+popularity is our endemial disease, and can only be checked by a
+change of seasons. When the people have had dear experience of the
+consequences of not being taxed, they will probably work the proper
+amendment, but our necessities in the interim are not the less severe.
+
+To tell America in such a situation, that she should reform her
+interior administration, would be very good advice, but to neglect
+affording her aid, and thereby to lose the capital objects of the war
+would be very bad conduct. The necessity of the present application
+for money arises from the necessity of drawing by degrees the bands of
+authority together, establishing the power of government over a people
+impatient of control, and confirming the federal union of the several
+States, by correcting defects in the general constitution. In a word
+it arises from the necessity of doing that infinite variety of things,
+which are to be done in an infant government, placed in such delicate
+circumstances, that the people must be wooed and won to do their duty
+to themselves, and pursue their own interests.
+
+This application also becomes the more necessary, in order to obviate
+the effort of that British faction, which the enemy are now attempting
+to excite among us. Hitherto indeed they have been unsuccessful,
+unless perhaps with a very few men, who are under the influence of
+disappointed ambition, but much care will be required when their plans
+are brought to greater maturity. The savage inroads on our frontiers
+have kept up the general horror of Britain. The great captures made on
+our coasts have also rather enraged than otherwise, though such
+captures have always the twofold operation of making people wish for
+peace as well as for revenge. But when the enemy shall quit our
+coasts, (and they have already stopped the inroads of their savage
+allies,) if the people are urged at once to pay heavy and unusual
+taxes, it may draw forth and give weight to arguments, which the
+boldest emissaries would not at present hazard the use of.
+
+I have already observed, that Congress wish to obtain this money
+either from or by means of the King. The most cautious prudence will
+justify us in confiding to the wisdom of his Ministers the portrait of
+our situation. But it might not be very wise to explain to others
+those reasons for the application, which lie so deep in the nature of
+things, as easily to escape superficial observers. I shall enclose a
+copy of this letter to Mr Adams, and you will find a copy of what I
+say to him on the subject. I hope the Court will take such measures as
+to render any efforts on his part unnecessary; but you and he must
+decide on what is best for your country.
+
+I must trouble you still further on this subject, with the mention of
+what you will indeed collect from a cursory reading of the
+resolutions, that Congress have the strongest reason for their
+procedure, when they direct your utmost endeavors to effect this loan,
+notwithstanding the information contained in your letters. If the war
+is to be carried on, this aid is indispensable, and when obtained,
+will enable us to act powerfully in the prosecution of it. If a peace
+takes place, it is still necessary, and as it is the last request
+which we shall then have occasion to make, I cannot think it will be
+refused. In a word, Sir, we must have it.
+
+With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, September 27th, 1782.
+
+ Sir,
+
+By my letter of this date you will be informed of the intentions of
+Congress, to provide for a principal part of the expenditures of the
+year 1783, by loan. I expect that you will be able to obtain the four
+millions of dollars, either from the Court, or by their assistance. I
+wish for an immediate deposition of a part in the following manner.
+That the Court of Spain should give orders for the shipment of a
+million of dollars at the Havana, free of duties, and be convoyed by
+one or more ships of the line to an American port; the money to be
+paid to them during the year, in Europe; I wish this order may be so
+expedited, as that Captain Barney, in the Washington, by whom this
+letter goes, may carry it out to the Havana, and receive the money,
+which will by that means arrive here some time during the winter, and
+of course will, I expect, come safely as well as seasonably. I wish
+that a half million of dollars may be paid to Messrs Le Courealx & Co,
+as soon us possible, to enable them to execute my orders as to
+particular negotiations, which I commit to them. Whatever else of the
+money is obtained in France, will of course be paid to Mr Grand,
+subject to my orders. If any part of the money be negotiated in
+Holland, it will be, I suppose, proper to leave it in the hands of
+those who negotiate the loan, subject to my further disposition.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN
+
+ Office of Finance, September 30th, 1782.
+
+ Sir,
+
+It is in some respects fortunate, that our stores were not shipped,
+because, as you observe, they might have been taken; but I hope they
+are now on the way, for if they are to lie in France at a heavy
+expense of storage, &c. while we suffer for the want, it will be even
+worse than if they were taken. You will find by the letters, which are
+to go with this, that Mr Barclay is prohibited from making any more
+purchases on account of the United States. I confess, that I
+disapprove of those he has made; for the purchase of unnecessary
+things because they are cheap, appears to be a very great
+extravagance. We want the money as much as anything else, and the
+world must form a strange idea of our management, if while we are
+begging to borrow, we leave vast magazines of clothing to rot at
+Brest, and purchase others to be shipped from Holland. I have said
+nothing on this subject to Mr Barclay, because the thing having been
+done, could not be undone, and because the pointed resolutions of
+Congress on the subject, will prevent any more such operations.
+
+What I have now said, however, will I hope lead you to urge on him the
+necessity of making immediate shipments of all stores in Europe. A
+merchant does not sustain a total loss of his goods by their
+detention, but the public do. The service of the year must be
+accomplished within the year, by such means as the year affords. The
+detention of our goods has obliged me to purchase clothing and other
+articles at a great expense, while those very things were lying about
+at different places in Europe. I am sure that any demand made for
+money on our part, must appear extraordinary, while we show so great
+negligence of the property we possess. The funds, therefore, which
+were obtained for the year 1781, are not only rendered useless during
+the year 1781, but so far pernicious, as that the disposition of them
+will naturally influence a diminution of the grants made for the year
+1782.
+
+You mention in yours of the 25th of June, that you would send enclosed
+the account of the replacing of the Lafayette's cargo, if it could be
+copied in season. As it did not arrive I shall expect it by the next
+opportunity.
+
+I have received Mr Grand's accounts, which are not settled in the
+manner I wish; and in consequence I have written to him by this
+opportunity to alter them. I have desired him to give your account
+credit for every livre received previous to the current year,
+including therein the loan of ten millions of livres in Holland,
+though a part of it may not have been received until this year. I have
+desired him to debit your account for every expenditure made by your
+order, which will include all your acceptances of bills, &c. and of
+course M. de Beaumarchais' bills, if they shall have been paid.
+Finally, I have desired him to carry the balance of your account to
+mine, in which he is to credit all moneys received for the current
+year; for instance, the six millions (and the other six if they are
+obtained) together with such moneys as may come to his hands, from the
+loan opened for the United States, by Messrs Willink, Staphorst, & Co.
+
+I did expect to have had some kind of adjustment made by this time of
+Captain Gillon's affair; but Congress referred much of it to a
+committee, with whom it has long slept; but I have informed Mr Gillon,
+that I must have a settlement, and at present I wait a little for the
+determination of Congress.
+
+You mention to me, that the interest on the ten millions, Dutch loan,
+is payable at Paris annually on the 5th of November, at four per cent.
+I must request you to send me the particular details on this subject,
+such as who it is payable to, and by whom, that I may make proper
+arrangements for a punctual performance, so as not to incur
+unnecessary expense. I presume that the first year's interest may be
+discharged before this reaches you; but at any rate I enclose a letter
+to Mr Grand, to prevent any ill consequences, which might arise from a
+deficiency of payment.
+
+I informed you, in mine of the 1st of July, that Congress had resolved
+to appoint a Commissioner to settle the public accounts in Europe.
+This is not done, but they have reconsidered and committed the
+resolution. Where the thing will end, I do not know. I think, however,
+that eventually they must send over some person for the purpose.
+
+The appearances of peace have been materially disserviceable to us
+here, and general cautions on the subject from Europe, and the most
+pointed applications from the public officers, will not prevent that
+lethargy, which the very name of peace extends through all the States.
+I hope measures will be taken by our public Ministers in Europe, to
+prevent the people from falling into the snares which the enemy has
+laid. Undue security in opinion, is generally very hurtful in effect,
+and I dread the consequences of it here, if the war is to be carried
+on, which is not improbable.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, October 1st, 1782.
+
+ Sir,
+
+In my letter of the 27th of September last I expressed my wish, "that
+the Court of Spain should give orders for the shipment of a million of
+dollars at the Havana, free of duties, and to be convoyed by one or
+more ships of the line to an American port," &c. Upon further
+reflection, I am induced to believe that the Court of Spain will not
+go into the whole of this arrangement; for although they may, and
+probably will, agree to so much of it as will procure them an
+equivalent in France for the one million dollars, to be shipped from
+the Havana, yet there are reasons to doubt whether they will convoy
+the Washington hither. I wish, therefore, (should you meet with
+difficulties in that quarter) to apply to the Court for such convoy. I
+wish it may consist of a ship of the line, because none but frigates
+will cruise on this coast during the winter, and therefore a ship of
+the line will afford more protection than two or three frigates.
+However, this will depend entirely on the convenience or inconvenience
+which may attend the business. I shall communicate both this letter
+and that of the 27th, to the Chevalier de la Luzerne, on whose
+representations I rely much, as well for procuring the aid asked for,
+as for accomplishing the necessary arrangements after it is procured.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, October 2d, 1782.
+
+ Sir,
+
+I have the honor to enclose for your Excellency's perusal, the copies
+of letters from this office to Dr Franklin, of the 27th of last month
+and the 1st instant. I am to entreat, Sir, that you will represent to
+your Court the necessity of the application, which Congress have
+directed their Minister to make for four millions of dollars. The
+resolutions on the subject have, I suppose, been communicated to you
+by the Secretary of Foreign Affairs. I have, also, to request that you
+will facilitate the arrangements proposed in my letters already
+mentioned, the advantages of which are so well known to you that I
+shall not dwell on them.
+
+ With real esteem and respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO ALEXANDER HAMILTON.
+
+ Office of Finance, October 5th, 1782.
+
+ Sir,
+
+I have now before me your letters of the 14th and 21st of last month.
+I am sorry to find that you are less sanguine in your pecuniary
+expectations than the Governor appears to be; for I have always found
+that the worst forebodings on this subject are the truest.
+
+I am not surprised to find that the contractors apply with their
+paper, in the first instance, to the receivers and collectors. This I
+expected, because much of that paper is not fit for other purposes.
+Some of it, however, which is payable to the bearer, is calculated
+for circulation, which you observe, is not so general as otherwise it
+might have been, by reason of the largeness of the sums in the notes.
+Mr Duer's letters contain the same sentiment.
+
+In issuing this paper, one principal view was to facilitate the
+payment of taxes, by obviating the too general, though unjust,
+complaint of the want of a circulating medium. In substituting paper
+for specie, the first obstacle to be encountered, was the difference
+which has arisen from the late profusion of it. Had a considerable
+quantity been thrown into the hands of that class of people, whose
+ideas on the subject of money are more the offspring of habit than of
+reason, it must have depreciated. That this apprehension was just, is
+clear from this fact, that the paper I first issued, and the bank
+paper which came out after it, did depreciate from ten to fifteen per
+cent in the Eastern States, notwithstanding all the precautions which
+were used. If I had not taken immediate measures to create a demand
+for it on the spot, and to stop issues to that quarter, its credit
+would have been totally lost for a time, and not easily restored.
+Besides that the quantities, which were pouring in from thence would
+have done mischief here. Confidence is a plant of slow growth, and our
+political situation is not too favorable to it. I am, therefore, very
+unwilling to hazard the germ of a credit, which will in its greater
+maturity become very useful. If my notes circulate only among
+mercantile people, I do not regret it, but rather wish that the
+circulation may be for the present confined to them and to the
+wealthier members of the professions.
+
+It is nothing but the greater convenience, which will induce people to
+prefer any kind of paper to the precious metals, and this convenience
+is principally felt in large sums. Whenever the shop-keepers in
+general discover that my paper will answer as a remittance to the
+principal ports, and will be readily exchanged by the receivers, they
+will as readily exchange it for other people. When the people in
+general, find that the shop-keepers receive it freely, they will begin
+to look after it, and not before. For you must know, whatever fine
+plausible speeches may be made on this subject, the farmers will not
+give full credit to money merely because it will pay taxes, for that
+is an object they are not very violently devoted to; but that money
+that goes freely at the store and the tavern, will be sought after as
+greedily as those things which the store and the tavern contain.
+
+Still, however, your objection remains good, that the trafficking in
+which the greater part of the community engage, do not require sums so
+large as twenty dollars. This I shall readily acknowledge; but you
+will observe, that there is infinitely less danger that notes, which
+go only through the hands of intelligent people will be counterfeited,
+than small ones that come to the possession of illiterate men. When
+public credit is firmly established, the little shocks it receives
+from the counterfeiters of paper money, do not lead to material
+consequences; but in the present ticklish state of things, there is
+just ground of apprehension. Besides this, the value of paper will
+depend much upon the interchanges of it for specie; and these will not
+take place when there is a circulation of small paper. Lastly, I have
+to observe, that until more reliance can be placed on the revenues
+required, I dare not issue any very considerable amount of this paper,
+lest I should be run upon for more than I could answer; and as the
+circulation of what I dare issue, by increasing the general mass,
+enables people (as far as it goes) more easily to get hold of other
+money, it consequently produces, in its degree, that object of
+facilitating taxation, which I had in view.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, October 7th, 1782.
+
+ Sir,
+
+Captain Barney having been detained until this day, and it being
+probable that he will not arrive in Europe so early as I expected, I
+am very doubtful whether it would be proper to send him to the Havana,
+but think it would be better he should return immediately hither,
+because it is likely that the negotiation I proposed will consume more
+time than he can spare. His ship is small, but she sails remarkably
+well, and will, therefore, give us a good chance of being well
+informed of the situation of our affairs.
+
+If there is likely to be any delay or difficulty in the Havana plan,
+it will be best that you endeavor to obtain the shipment of a
+considerable sum in Europe on board some of the King's frigates. At
+any rate, we must have money, and I think you may venture fifty
+thousand crowns by this vessel. You will see that Captain Barney is
+put under your directions, and is to wait your instructions; but I
+must at the same time inform you, that Congress have directed his ship
+to be purchased and sent to France, among other things, for the
+purpose of obtaining a better communication with their servants, and
+more frequent and accurate intelligence from Europe. You will see,
+therefore, the propriety of despatching her as speedily as possible,
+and I think we may, probably, fall upon ways and means to afford you
+frequent opportunities of writing with a great chance of security.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, October 15th, 1782.
+
+ Sir,
+
+I have received your letters of the 2d, 3d, and 7th instant. There is
+no man in America, more heartily disposed than I am to remove from the
+army and from all others who have claims on the public, every just
+ground of complaint. But with the means in my power, how is it
+possible? I have been obliged to submit to cancelling one contract and
+forming another, at one third advance on the former price, for the
+want of a mere trifle, compared with what we had a right to expect. I
+am in advance on credit to an amount, which you can scarcely form an
+idea of, although I have declined every expenditure not indispensable.
+
+That part of the late arrival of clothing, which is unfit for
+soldier's use, is now selling to pay debts contracted by the clothing
+department during my administration. Among these debts are twelve
+thousand dollars for needle work done by people in extreme indigence.
+The clothing which arrived fit for the officers' wear, was inadequate
+to the purpose of clothing them all. The division must have created
+confusion and raised disputes. If this had not been the case, still
+it would have been liable to the inconveniencies attending partial
+payments, and we should have been justly reproached for having broken
+repeated promises, that no such payments should take place. Congress
+have done all in their power to procure money for the army. My own
+efforts I shall not dwell upon. If money is obtained, that will
+produce satisfaction; I am sure that nothing else will.
+
+My credit has already been on the brink of ruin. If that goes, all is
+gone; but if it can be preserved, there will, in the last necessity,
+be some chance of making advances on credit to the army, as well as to
+others. Thus, Sir, you will see that I look forward as far as my
+distressed situation will admit; but after all, if the States cannot
+be prevailed on to make greater exertions, it is difficult to see
+where the thing is to terminate.
+
+I have this day commissioned Major Turner as Marine Commissary of
+prisoners, and I trust he will soon be in capacity to prevent your
+Excellency from having any further trouble on that subject.
+
+I am, Sir, with sincere respect and esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF NORTH CAROLINA.
+
+ Office of Finance, October 7th, 1782.
+
+ Sir,
+
+Since the receipt of your favor of the 20th of August last, I have
+received copies of a correspondence between yourself and Colonel
+Carrington on the subject of specific supplies. The disposition which
+you have expressed, (in your letter to me, and which indeed breathes
+through your whole correspondence) to promote those plans of
+regularity and economy, which Congress have adopted, command my
+sincere acknowledgements.
+
+I perceive that there is a difference of opinion between the officers
+of the continent and your State on the receiving specific supplies,
+which I attribute principally to some misunderstanding of the matter.
+The specific supplies called for by Congress in their several
+resolutions on that subject are undoubtedly receivable, and ought
+above eighteen months ago to have been received, on the requisitions
+which were made at the rates for that purpose mentioned. Such as it
+may now suit any State to deliver on those requisitions, ought in like
+manner to be carried to account. But it is very clear, that they
+cannot be received on account of the subsequent money requisitions.
+The several quotas of the eight millions asked for last year, to
+supply the current expenditures of the year 1782, must be paid in
+cash, or what is equivalent to it, in my notes or bank notes. I cannot
+consent to receive anything else. It is by this means alone, that
+economy can be established, order restored, and confusion, that parent
+of fraud, too apt to introduce itself into public accounts, banished
+and destroyed.
+
+I incline to think, that as Congress have determined to have all
+accounts settled and liquidated to the end of the year 1781, your
+State would rather choose to attend only to the money requisition, and
+leave the further delivery of specifics to a liquidation of the old
+accounts; but if not, there can be no doubt but the specifics will be
+received, and in such case I will give the gentleman whom I shall
+appoint as Receiver of taxes in your State, instructions how to
+dispose of them; but I must again repeat, Sir, that I will not accept
+one particle of them in abatement of the State quota for the year
+1782.
+
+Before I close this letter I must take the liberty to mention a
+matter, which suggests itself from one of your letters to Colonel
+Carrington. You tell him that you will continue the prohibition
+against sending certain things out of the State, in order that he may
+purchase for the United States on better terms. Now, Sir, while I feel
+it my duty to require justice for the United States it is equally my
+duty to take care that equal justice be done to the several States,
+individually considered, as well as to the individuals which compose
+them. I am, therefore, to request that all such restrictions be taken
+off. They sour people's minds, destroy the spirit of industry, impair
+by a rapid as well as a certain progress, the public wealth of the
+State, producing a dearth of the things embargoed, eventually enhance
+the prices far more than they could have been increased by any other
+mode. Whereas perfect freedom makes the people easy, happy, rich, and
+able to pay taxes, and the taxes when paid can be expended amid a
+plenty of products, and consequently be expended to advantage. I say a
+plenty of products because I know, that liberty to dispose of them to
+the greatest advantage will encourage men to raise them and produce a
+plenty. Your Excellency will, I hope, excuse reflections which arise
+from an ardent desire to promote the general welfare and happiness of
+all the inhabitants of the United States.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MAJOR GENERAL GREENE.
+
+ Office of Finance, October 17th, 1782.
+
+ Dear Sir,
+
+I have received your letter of the 1st of September, for which I pray
+you to accept my acknowledgements. Amid the many distresses and cares,
+which await every step of my administration, it is a great relief and
+consolation to have met with the support of those who command (and
+what is more, who worthily command) the armies of the United States. I
+have felt, my Dear Sir, your efforts to support my measures, and I
+know that they have been useful. I wish it were in my power to give to
+you and to your brave army that full relief, which their conduct,
+their sufferings, and above all, their patience, have merited.
+
+I had intended to supply their subsistence, and the little contracts
+in Virginia, from the quota of that State, as the money there
+collected would have been nearest the spot where it was to be applied.
+But I need not tell you how deficient that State has been. The
+consequence is, that I must endeavor to supply the deficiency from
+other sources, which I am now doing; but in the precarious state of
+things at present, there is no reliance to be placed on any measure. I
+suppose, however, that the evacuation of Carolina will enable you to
+move northward, with a considerable part of your army; these will, I
+hope, meet the relief intended. I shall direct a statement of the
+whole to be made out by the Pay Master General, and do whatever may
+lay in my power; but as to pay, my inviolable determination is, that
+the whole army shall equally share whatever is disposed of in that
+way.
+
+The disposition of the State of North Carolina to pay in specie, is
+far from being peculiar to that State. Attempts of the same kind have
+been made by others; and they have invariably been opposed and shall
+be. There is however a distinction to be taken. You recollect that
+Congress called for large quotas of specie. I am perfectly persuaded,
+that no State has fully obeyed that call, but many, and indeed almost
+all, aver that they have overpaid. The last requisitions have been for
+money; and if I had not by the publications prevented such assertions,
+it would not be surprising, that they should be repeated, even as to
+the money quotas. Now if the State of North Carolina are desirous of
+paying in specie, on the requisitions of specie, I shall not have the
+least objection; but on the requisitions for the service of the
+current year, I will receive money alone. I make this distinction in
+such clear and peremptory terms, to avoid all further cavils on the
+subject. I see that it has already been drawn into some length, and
+must, therefore, be finally terminated. Besides, under the present
+appearances there can be little doubt, that specie in North Carolina
+will be almost as useless as if they were in Otaheite. A copy of my
+letter to Governor Martin on this subject shall be enclosed to you.
+
+You have in several of your letters, made very just observations on
+the business of my department, and such as convince me you have turned
+your attention to it. I have therefore taken the liberty to enclose to
+you a copy of a letter to Congress, on the subject of a mint, of one
+on the establishing public credit by funding our debts; and of a
+third, on the estimates for the ensuing year.
+
+As there is a report, that the enemy got several letters intended for
+you, it is possible that some or other of those, may be among the
+number.
+
+I pray you to believe me, with very sincere esteem, your most obedient
+servant,
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Head Quarters, October 18th, 1782.
+
+ Sir,
+
+I take the liberty to enclose to your care, a letter for the Chevalier
+de la Luzerne, on the subject of expense, which at his request I have
+incurred, for the purpose of forwarding intelligence of the movements
+of the enemy at New York, to the Marquis de Vaudreuil.
+
+If our circumstances would admit, I should be very glad that this
+expense should be defrayed by the United States; it is infinitely
+short of the debt, which gratitude imposes on us. I submit therefore
+to your judgment, whether to deliver the enclosed, or to send forward
+the money from your own funds, agreeably to the monthly estimate sent
+to the Minister.
+
+The chain of expresses was instituted about the middle of August, and
+will probably be continued till the sailing of the French fleet from
+Boston.
+
+ I am, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, October 21st, 1782.
+
+ Sir,
+
+I have on many occasions warned the States of the consequences which
+must follow from delays in supplying the treasury. The expense which
+attends such delays, has frequently been mentioned, and instances
+daily occur to show, how much the public burdens are increased by the
+want of a timely provision. To cite them all would be endless; but
+there is one of no inconsiderable magnitude, which I think it proper
+to state for your consideration. I had contracted on the part of the
+United States for the supply of rations to the main army, at ten pence
+Pennsylvania currency, and to the garrison at West Point for nine
+pence half penny, and had agreed to pay, at the commencement of each
+month for the issues of the preceding month.
+
+These beneficial contracts have been dissolved by my inability to make
+punctual payments, which rendered the contractors incapable of
+performing their engagements. After many efforts on my part to supply
+the want of cash, and on their part to substitute private credit and
+promises in the place of ready money, they found it impracticable to
+proceed further on the moderate terms stated in the contract. Some of
+them told me so, and asked (what any persons in their situation would
+have asked) _the promise of indemnification for any damages they might
+sustain_. And a promise to pay at the end of each month, one half the
+amount of issues for the preceding month in coin, and three times the
+remaining half in bills or notes receivable in taxes. They offered if
+I would agree to these propositions, to go on and supply the army;
+but declared, that if I would not, they could no longer perform their
+engagements.
+
+From this moment I was obliged to consider the contract as dissolved;
+because the dissolution of it appeared inevitable. I had already by
+entering into the contract, promised on the part of the public, a
+payment of the whole money due for the monthly issues. A new promise
+of the half would have given no additional security, and therefore I
+considered that stipulation as a request, that I should on my private
+and personal honor, assure them the public funds would enable me to
+make such payments. But of this I had no good prospect. The greater
+part of what little came in from taxes, was the same kind of paper
+with that which they asked for, being what I had long before issued
+for other services. If indeed I could have trusted the assurances made
+to me, I might have given the assurances required by them. But
+experience had taught me caution, and the event has shown, that if I
+had made the promise, I should now have been chargeable with
+falsehood.
+
+I think the contractors were prudent in requiring a promise of
+indemnification; their situation made it necessary; but it was a
+promise which I could not make, for although I had reason to confide
+in their integrity and would have done it in my private capacity, yet
+as a public officer, I could not. For there would have been no longer
+certainty of the extent to which their expenditures might have been
+carried, after it should have become a matter of indifference to their
+private interest what prices should be given for supplies.
+
+Thus, Sir, I found myself reduced to the alternative of making a new
+agreement for subsistence of the army and garrison, or of leaving them
+to subsist themselves by military collection. The latter was to be
+avoided, if possible, for it would have been the most expensive mode
+of obtaining supplies, not to mention other circumstances. The former,
+therefore, was to be adopted, and I accordingly gave instructions to
+Mr Cornell, the inspector of the contracts, to consult with the
+Commander in Chief, and take the necessary arrangements. It could not
+be expected, that a contract dictated by necessity, could be made on
+economical terms, and the inability to perform old engagements would
+necessarily influence the rate of new ones. Besides this, it was
+indispensably necessary to obtain a longer credit, because otherwise
+the burden would have been shifted, not removed; and the evil must
+have returned with equal speed and greater magnitude. Under such
+unfavorable circumstances, it was necessary to pay for a credit in
+order to obtain it. A new contract is made, and the rations issued
+now, are to be paid for three months hence, at the rate of thirteen
+pence, Pennsylvania currency, for a ration; which is an advance of
+about one third upon the former price. The public therefore will pay
+for this advance of moneys, equal to feeding the army at the rate of
+thirtythree and one third per cent for three months; or, to make the
+matter more simple, they must pay for feeding them three months, as
+much as would have fed them four months. Besides this, the public
+credit sustains material injury, and damages will be expected by the
+former contractors.
+
+If, Sir, it should be supposed that this is the only instance of loss
+sustained from the low state of the treasury, it is a great mistake.
+The attempt to establish economical systems is vain, unless we can
+support them by punctuality. Congress have placed me in a situation
+where I am exposed in the first instance to claims and demands, but
+these must come home to the several Legislatures, and eventually to
+their constituents. My situation, therefore, makes it a duty to
+expostulate freely on the circumstances of my department. I am not to
+learn that free representations will sometimes give offence, and I
+know that those will be always most offended, who are most in fault;
+but I make no apologies for what I have to say. It is necessary that
+the truth should be known to the people; to our enemies it is known
+already, and has been for a long time. They hold up to contempt and
+derision the contrast between resolutions to carry on the war at every
+expense, and receipts of nothing in some States, and very little in
+all of them put together. Those who court public favor at the expense
+of public good, are very apt to inveigh against taxes, and to flatter
+the indolent and avaricious with the idea that war can be carried on
+without labor or money. But it is time for the people to distinguish
+between their flatterers and their friends. Sooner or later the
+current expense must be paid, and that payment must come from the
+purses of individuals. If it were made in season, it would be lighter
+by one half than it is. Congress have called for a certain sum, and
+that sum paid punctually would have answered the purpose, but they
+cannot be responsible for the consequences of delay. The expense will
+necessarily in such case exceed their calculations, and of course
+further sums must be required.
+
+There are certain arguments, Sir, which ought not to be used if it is
+possible to avoid them; but which every one invested with public
+authority should suggest to his own mind, for the government of his
+own conduct. How long is a nation, who will do nothing for itself, to
+rely on the aid of others? In a war waged by one country to obtain
+revenue from another, what is to be expected in case of conquest? How
+long will one part of a community bear the burdens of the whole? How
+long will an army undergo want, in the midst of plenty? How long will
+they endure misery without complaint, injustice without reproach, and
+wrongs without redress? These are questions which cannot be solved by
+arithmetical calculation. The moral causes that may procrastinate or
+precipitate events, are hidden from mortal view. But it is within the
+bounds of human knowledge to determine that all earthly things have
+some limits, which it is imprudent to exceed; others, which it is
+dangerous to exceed, and some, which can never be exceeded. It is
+possible, that we are near the close of this war, and perhaps we are
+only in the middle of it. But if the war should continue, we have to
+blame ourselves; for were those resources called into action, which we
+really possess, the foreign enemies would soon lose all hope, and
+abandon their enterprize. The greater injury, therefore, which we
+sustain, is not from foreign, but from domestic enemies; from those
+who impede the necessary exertions. I have mentioned one among many
+instances, to show the consequences of withholding the public revenue,
+and I take the liberty to observe, that it would be more manly to
+declare at once, for unlimited submission to British tyranny, than to
+make specious declarations against it, and yet take the direct road to
+bring it about, by opposing the measures for our defence. That open
+declaration will doubtless be restrained by the fear of general
+resentment; but the other conduct is so much the more dangerous, as
+it is calculated to close people's eyes, while they approach the
+precipice, that they may be thrown down with greater ease and more
+absolute certainty.
+
+I trust that your Excellency, and every other friend to our country,
+will urge forward that speedy and effectual collection of taxes, which
+can alone give vigor and stability to all our measures; and I risk
+nothing when I assert, that the public service shall be performed, (if
+the proper revenues be obtained,) at less than half of what would
+otherwise be expended.
+
+ I am, Sir, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF RHODE ISLAND.
+
+ Office of Finance, October 24th, 1782.
+
+ Sir,
+
+My circular letter of the 23d instant, contains the estimates and
+requisitions for the service of the year 1783. I must take the liberty
+to make a few observations on them, which apply particularly to the
+State of Rhode Island. In the letters to Congress of the 29th and 30th
+of July last, copies of which were transmitted in my circular letter
+of the 12th of September, I have so fully expressed my sentiments on
+the subject of credit and loans, that I shall not repeat them. Your
+Excellency will perceive, that in the Act of the 16th instant,
+although the estimates amount to six millions, yet only two are
+required and that further requisitions are suspended until the result
+of measures for obtaining loans shall be known. It is unnecessary to
+mention, that Congress have directed an attempt to borrow four
+millions.
+
+The propriety of this step will be self evident, when the date of
+their requisitions for the present year is considered. The sums
+brought in from the several States being regularly published in the
+gazettes, will spare me the pain of repeating them. I say the pain,
+because every such repetition will have, in some degree, the air of
+reproach. It must be remembered, that the duration of the war does not
+depend upon Congress. This is an invaded country; invaded for the
+purpose of conquest. And between opposition and submission there is no
+middle line. The idea of submission is, and ever ought to be, rejected
+with disdain. Opposition, therefore, becomes a matter of necessity;
+and that opposition involves expense.
+
+There is then a certain degree of expense that cannot be avoided. And
+this must be provided for. The estimates being formed under the idea
+of money in hand to pay for services required, they are stated as low
+as possible. It appears, therefore, that the six millions mentioned in
+the estimates must be had. It appears from the experiments already
+made, that the people are either unwilling or unable to pay the whole
+in taxes; and whether want of power or inclination be the true cause,
+is immaterial to the present inquiry, for the fact is clear. Now there
+are but four modes of obtaining the supplies. Either they must be
+given to us, or lent to us, or raised by taxes, or taken by force. As
+to the first, we can place no dependence on it; and as to the last, it
+is neither the most constitutional, the most economical, nor the most
+pleasing way. Necessity may justify it, but it will be very difficult
+to justify the necessity. The supplies, therefore, must be obtained by
+loans or taxes; so that if they cannot be obtained by loans, taxation
+is the only resource; and in that case, there is no medium between
+legal taxation and military collection. For if we will not submit to
+Great Britain, we must carry on the war; and if we carry on the war,
+we must obtain the means; and if we cannot get the means abroad, we
+must provide them at home; and if we do not provide them by law, they
+must be taken by force.
+
+The inattention of the States to the requisitions of the United
+States, leaves Congress no choice between loans and military
+collections. Whether they can obtain loans must depend upon other
+people. They cannot obtain loans without credit, and they cannot have
+credit without funds; and they cannot get funds without the
+concurrence of the States. They must ask that concurrence before they
+can obtain it, and they must determine on the funds before they can
+ask. The making yearly requisitions of quotas to pay the interest of
+public debts will not do. It is in itself a futile measure; but if it
+were the best thing in the world, yet if those who are to lend do not
+think so, there is an end of the matter. Now the fact is, that nobody
+will lend upon the promise of such requisitions. And truly the
+compliances made with those for carrying on the war, give very little
+encouragement. It follows then, that Congress _must_ ask for
+particular funds. They have asked for one, and it is not complied with
+by two States out of thirteen. Shall Congress then adhere to the
+demand; or shall they change their application? If they should change
+it, could they expect that there would not then be one or two opposing
+States? To answer the question let it be inquired, what objects of
+taxation can be devised, to which exceptions cannot be made? Surely
+there are none.
+
+Let it be inquired next, whether there is any object so
+unexceptionable as that which they have fixed upon? The answer is, no.
+It follows then, that in changing the application, there would be less
+prospect of success than at present. Congress then must adhere to
+their requisitions; and if that fund be not granted, we cannot expect
+loans. But it is demonstrated by experience, that we cannot get
+sufficient taxes. We certainly cannot get rid of the war, and
+therefore the people must have their property taken by force. The
+necessity will justify this. But as I said before, who will justify
+the necessity? Surely the authors of it should think of that in
+season.
+
+Will it be a sufficient justification, to say that the demand of
+Congress is _unconstitutional_? If a thing be neither wrong nor
+forbidden it must be admissible. Such a requisition is nowhere
+forbidden, and therefore it is admissible if it be not wrong. Now it
+cannot be wrong to do that which one is obliged to do, be the act what
+it may. And Congress are obliged to make such requisitions. But
+further it must be admitted, that they are not contrary to the moral
+law. Supposing then, for argument's sake, that the thing asked for,
+would if granted be contrary to the confederation. If so, the grant
+would alter the confederation. But the grant is not to take effect
+without general consent. The confederation was formed by general
+consent, and by general consent it may be altered. The requisition,
+therefore, if complied with, will by that very compliance become
+constitutional.
+
+But it may perhaps be suggested, that the five per cent impost will
+not be sufficient for the object in view. This must be acknowledged,
+but what inference is to be drawn from thence? Not that Congress
+should ask for more. Under the circumstances in which they are placed
+it is difficult to ascertain what line of conduct is to be pursued. If
+they ask further revenues it may be said, that there is weakness in
+framing new demands before old ones are complied with. Every fund will
+meet with some opposition, and every opposition encourages new
+opponents. The evil presses hard. Public credit is at the last gasp,
+or rather it is expired. Not only are we to expect a formidable clamor
+from the abused and injured creditors, but there is really very little
+hope of obtaining foreign loans. For how can it be expected, that a
+Republic without funds should persuade foreigners to lend them money,
+while its own citizens, who have already lent theirs, can neither
+obtain the interest, nor any solid security, either for interest or
+principal.
+
+This, Sir, is an object of great magnitude, and one which directly or
+indirectly concerns every inhabitant of the United States. The
+critical situation we stand in, has rendered it necessary for Congress
+to demand a decided answer. No time is to be lost, for if the revenues
+cannot be obtained, the public creditors must be told so in plain
+terms. The efforts to borrow further sums must cease of course, and
+then the whole weight of the war must fall on the people, in one mode
+or the other. It is a very serious question, whether the little
+applause, which individuals may gain by specious declamations and
+publications should over balance every consideration of national
+safety. This serious and important question your Legislature is now,
+by the representatives of all America, most solemnly called on to
+decide.
+
+I am, Sir, with perfect respect, your Excellency's most obedient and
+humble servant,
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance. October 27th, 1782.
+
+ Sir,
+
+I do myself the honor to enclose the copy of a paper transmitted to me
+by the Governor of Virginia. The clothing there mentioned is a part of
+those supplies for the State of Virginia, which the Court of France
+have charged to the United States. You will recollect the discussions
+on the subject. It is with a very sincere desire to remove every
+disagreeable trace of them, that I have agreed to a proposition made
+me by the Governor of Virginia, in his letter dated in Council Chamber
+on the 23d of September last, of which the following is an extract.
+"The regulations you have entered into for clothing the continental
+army will render useless to the State a quantity of necessaries now in
+France, furnished by his Most Christian Majesty; as the terms we have
+them on, which I have before transmitted to you, are such as will make
+the payment easy to the United States, we shall be obliged to you to
+take them off our hands, and take the debt so far as they go to the
+States. You will have a copy of the invoice enclosed, by which you
+will see, that they will be useful and necessary for the army, which
+will, I hope, induce you to oblige the State." The enclosed referred
+to, is that above mentioned. I make no doubt, that the Court will
+choose to consider the whole of these supplies as advanced on the
+credit of the United States. And therefore there is so much the less
+objection to taking a part of the goods. As for the remainder, I think
+it better for Congress to adjust the matter with Virginia than to
+plague the King's Ministers with altercations about it.
+
+I am, Sir, your most obedient and humble servant,
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF CUBA.
+
+ Philadelphia, November 27th, 1782.
+
+ Sir,
+
+I do myself the honor to present to you Mr John Brown of this city,
+whom I have charged on the part of the United States with the
+negotiation of bills at your port, to the amount of two hundred
+thousand dollars. These bills will be drawn on Messrs J. L. & L. Le
+Couteulx & Co. at Cadiz. I have already taken the proper measures for
+placing in their hands the necessary funds. I presume that the actual
+state of things will render it as convenient (either to your
+Excellency on the part of the King, or to the merchants) to purchase
+bills, as it will be to the United States to sell them. The risk which
+attends sending of money to Europe, will probably have raised the
+exchange so considerably, as to compensate the risk of bringing it
+hither. This, I confess, is the principal reason with me for adopting
+this measure.
+
+I shall highly esteem any favorable assistance, which your Excellency
+may be pleased to afford Mr Brown on this occasion; and I persuade
+myself that the intimate connexion of interests between his Catholic
+Majesty and my Sovereign during the continuance of hostilities against
+the common enemy, will be a strong inducement with you to promote the
+service of the United States.
+
+With sentiments of the most perfect esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THOMAS BARCLAY, IN PARIS.
+
+ Office of Finance, December 5th, 1782.
+
+ Sir,
+
+On the 28th of May last, the United States in Congress resolved, that
+a Commissioner be appointed to liquidate and finally settle the
+accounts of all the servants of the United States, who have been
+intrusted with the expenditure of public moneys in Europe. On the 29th
+of July last it was resolved, that the resolution of the 28th of May
+be reconsidered, and on motion it was ordered, that the said
+resolution be committed. On the 18th of November last, on the report
+of a committee to whom, upon a reconsideration the resolution of the
+28th of May last was referred, it was resolved that a commissioner be
+appointed by Congress with full power and authority to liquidate and
+finally to settle the accounts of all the servants of the United
+States in Europe; and to commence and prosecute such suits, causes and
+actions as may be necessary for that purpose, or for the recovery of
+any property of the said United States, in the hands of any person or
+persons whatsoever. That the said commissioner be authorised to
+appoint one or more clerks, with such allowance as he may think
+reasonable; and that the said commissioner and clerks respectively
+take an oath, before some person duly authorised to administer an
+oath, faithfully to execute the trust reposed in them respectively. On
+the same day you were elected the commissioner, and it was resolved,
+that Congress would hereafter make adequate provision for the said
+commissioner, according to the nature and extent of the services which
+he shall perform. And on the 20th of November last it was resolved,
+that the Superintendent of Finance be directed to instruct the
+commissioner for settling the public accounts in Europe, to take
+proper measures for adjusting, without delay the accounts of M. de
+Beaumarchais, or Roderique Hortales & Co. and to report such
+settlement to Congress; that order may be taken for the payment of the
+balance, if any shall be justly due; and that, in the meantime, no
+farther remittances or payments be made to M. de Beaumarchais or
+Roderique Hortales & Co. by virtue of any former resolution of
+Congress.
+
+Enclosed herein, you will find a commission authorising you to act in
+this business; and I shall now endeavor to give you such explanations
+and directions as may be necessary for the accomplishment of it,
+consistently with the views and intentions of the United States in
+Congress. You will undoubtedly remark, that no sum is fixed upon as
+the compensation for this duty; the reason of which is apparent, that
+until the completion of it, neither the nature nor extent can be
+perfectly known. This might, perhaps, have induced a monthly or annual
+stipend, to any other commissioner, but as your other duties may, and
+probably will, occupy a part of your time and attention, which must
+nevertheless be indeterminate, so it follows, that no points could be
+properly assumed, by which the reasonable extent of such a stipend
+could be known. I have reason to believe, that it is in the intention
+of Congress to make a generous allowance for the performance of this
+service; and I am persuaded, that by attention, assiduity and the
+faithful exertion of your talents and abilities, you will merit their
+regard.
+
+The appointment of your clerks, as well as the ascertaining their
+number and reward, are left to your discretion. You will on this
+occasion consult the principles of true economy, which dictate the
+employing as many persons as are capable of performing the service and
+no more; the taking care that those employed are capable of performing
+the business committed to them, and the obtaining such a number of
+such persons, on the cheapest terms, for which they can be procured.
+But the worst economy in the world is, to employ improper men. That
+you may be enabled to form a judgment of the talents necessary to a
+clerk, you will observe that Congress in their ordinance of the 11th
+of September, 1781, for regulating the treasury and adjusting the
+public accounts, ordained and declared that the clerks, the number of
+whom should be regulated by the Superintendent of Finance, should be
+appointed by the Controller. That it should be their duty to examine
+all accounts which should be committed to them by the controller, to
+correct all errors, and to note in writing what may appear
+exceptionable, either as to the propriety of the charges or the
+validity of the vouchers, and transmit the accounts with their remarks
+to the auditor. And that the party for himself, and the clerk on
+behalf of the public should be heard before the auditor. From the
+nature of the commission intrusted to you, it follows that you must
+both commit the account to the clerk and afterwards audit it, as well
+as finally determine on and adjust it; which last is done here by the
+controller, except in cases where the appointment of a commissioner
+has been necessary, with authorities similar to yours. It is to be
+apprehended, that the accounts will, in many instances, be exhibited
+to you informally; and as it is not only useful in the first settling
+of complicated accounts to adhere to settled forms, but absolutely
+necessary to the clear and easy understanding of them after they are
+settled, so it will frequently become necessary to have the accounts
+restated, and all the vouchers of them numbered by your clerks. And
+although all your own care and attention will always be requisite to
+detect and discover errors and frauds, yet so much will depend on the
+accuracy and abilities of the clerks in these investigations, that I
+cannot too strongly recommend to your attention the choice of able
+accountants for that purpose.
+
+With respect to the accounts of M. de Beaumarchais, much has been
+said, and therefore I might dispense, perhaps, with saying anything;
+but as I have reason to believe, that whatever may have been the
+character of the persons concerned, either for ability or integrity,
+the business which has passed through their hands has not been well
+done, I must desire that these accounts undergo your strictest
+scrutiny. You will probably find some other large accounts which merit
+a like attention. In every such case, the observations made here will
+be equally applicable. You are too well acquainted with mercantile
+business, not to know what, how, and when commissions are chargeable
+on a transaction. I believe that knowledge and information on this
+subject will be found very necessary. They will be indispensable
+should it be attempted to charge several commissions on the same
+thing, whether it be done openly, as such, or covertly, as brokerage,
+factorage and the like, or still more covertly, for increase of
+original price. Hence, therefore, it will be found necessary to
+consider well the original prices; and it is much to be lamented that
+samples of the articles cannot be laid before you, because many have
+been received of a quality not only base but despicable.
+
+It is not possible at this distance of time and place, to ascertain by
+whom such articles were purchased, and indeed many of those which have
+been shipped have never arrived; under such circumstances it becomes
+your duty, to require proof of the quality of such articles as appear
+charged to the United States, and the idea will naturally suggest
+itself that the character of the party making the charge will
+influence the necessity of such proof, as the validity of the proof
+itself will be influenced by the character of the witnesses.
+
+Had these transactions been merely confined to the purchase and
+delivery of goods, they might, perhaps, easily have been investigated,
+but they extend themselves to many other things, among which is the
+transportation, and expenses incident to it. Under this head, two
+objects present themselves immediately to view. First, whether due
+care was taken in the mode of transportation adopted; and secondly,
+whether the expense has been reasonable or exorbitant. With respect to
+the latter, it will certainly be your duty to correct improper or
+exorbitant charges. But in the former case, your conduct must be
+directed by circumstances in their nature so various as to admit of no
+prescribed rule, and therefore I can only recommend it to you to
+consult the interests of the United States as far as the principles
+of justice will permit. I know it is unnecessary to tell you that the
+delivery of goods purchased and transported should be shown before the
+charges are admitted; but I must desire that the evidence on this
+subject may be so clear and plain as to enable us to call the receiver
+of them to account. Cases will doubtless occur of loss by the
+accidents of the sea and by enemies; these also should be clearly
+proved, and the causes, as much as possible, investigated.
+
+Your commission will entitle you to aid and protection in the
+execution of the duties committed to you; and you will make the
+necessary applications on the subject to the proper persons, whenever
+circumstances shall require. A primary object will be to discover what
+sums have at any time or times been paid to the use of the United
+States. These can, I suppose, be discovered, and the names of the
+persons to whom they have been paid, although it is possible that in
+certain cases the persons by whom they have been paid will not be
+known to you. The first account you form will be a general one, under
+the title of loans and subsidies obtained in Europe on account of the
+United States. The debt of this account you may leave in blank, but
+the credit side will consist of the sums paid to the use of the United
+States, and the persons to whom they were paid. Every account of these
+persons will, of course, be debited in particular accounts, for the
+respective sums so credited. These sums then they are to account for,
+and where they have paid over to others, such payments are again to be
+accounted for, until they are traced to a final appropriation, which
+will be of articles purchased for, or services rendered to the United
+States.
+
+In the course of this investigation, however, it may happen, that in
+some case of payment by one to another, the receiver shall not account
+properly; on which the question will arise, how far the payment is to
+operate a discharge to the party by whom it was made. This question
+admits of so many modifications, according to the varieties of
+possible circumstances, that no provision can be made, which will be
+applicable to all. I have therefore thought it best to enclose for
+your perusal, the instructions on this subject to Commissioners
+appointed for settling the old accounts of the civil departments. You
+will govern yourself by the spirit of these instructions, according to
+circumstances, as they arise. I have already observed, that the final
+appropriation of moneys must be traced to articles purchased, and
+services rendered; but such a general distinction would not be
+sufficiently clear in the stating of accounts; you will place this
+final appropriation, therefore, under one or other of these following
+general heads.
+
+1st. _Salaries and Expenses of Public Ministers, Commissioners, and
+Agents._ In this account you will charge all moneys advanced to any
+public servants of the United States in Europe on account of their
+salaries or expenses.
+
+2d. _Clothier General's Department._ In this account you will charge
+every article of clothing, which may have been purchased.
+
+3d. _Commissary of Military Stores' Department._ In this account you
+will charge all arms, ammunition, and the like.
+
+4th _Quarter Master General's Department._ In this account you will
+charge tents, sheet tin for camp kettles, and other articles properly
+belonging to that department.
+
+5th. _Marine Department._ In this you will charge all moneys expended
+in building or buying ships of war, and fitting them out, with the
+incidental charges; also all naval stores purchased for the United
+States, and the like.
+
+6th. _Hospital Department._ In this you will charge all instruments,
+medicines, &c. &c. appertaining to that department.
+
+7th. _Merchandise General._ In this you will charge such articles of
+stores as do not fall within the second, third, fourth, fifth, and
+sixth heads, if any such there be, and also any articles which you
+shall be doubtful as to the account they ought to be carried to.
+
+8th. _Transport Service._ In this you will charge the purchase,
+freightment, hire, insurance, and the like, of ships or vessels for
+the purpose of bringing any articles to America.
+
+9th. _Contingent Service._ In this you will charge the expense of land
+transportation, expresses, storages, and other like articles; also all
+those things, which do not fall properly under some other general
+head.
+
+10th. _Prisoners and Americans in Europe._ In this you will charge all
+moneys paid for or to American prisoners or other Americans; taking
+care so to designate and specify these charges and the parties, so
+that those who are able may be called on for repayment. The names and
+usual places of abode will as far as they are attainable, be of
+importance.
+
+11th. _Foreign Officers._ In this you will charge all sums advanced or
+paid to foreign officers coming to or returning from America.
+
+12th. _Interest of Debts._ In this you will charge all sums paid on
+the interest bills of exchange, issued from the several Loan Offices,
+and any other interest moneys, which may have been paid.
+
+13th. _Bills of Exchange._ In this you will charge all sums paid on
+bills of exchange, drawn by order of Congress.
+
+It is not impossible, that in the course of your business, you may
+find it necessary to raise some other such general accounts, and if
+so, you will raise them accordingly. You will take care to attend
+strictly to the propriety of all charges made, and to the validity of
+the vouchers by which they are supported. You will examine very
+particularly into the accounts of armed vessels fitted out in Europe
+on account of the United States, especially of those wherein any
+individuals shall appear to have been interested. And you will bring
+those persons to account, into whose hands any prizes, or moneys for
+the sales of prizes, may have come, so that justice may be done as
+well to the public as to the captors concerned therein.
+
+Whenever you finally settle an account, you will take care to be
+possessed of the several vouchers, which together with the account are
+to be kept in your Consular office, until further orders; but you will
+transmit quadruplicate copies of the general accounts by safe
+conveyances as soon as possible.
+
+ I am, Sir, your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, December 12th, 1782.
+
+ Sir,
+
+On the 7th of January last, Congress were pleased to resolve, that it
+be an instruction to the Superintendent of Finance, to prepare and
+report to Congress a table of rates, at which the different species
+of foreign coins, most likely to circulate within the United States,
+shall be received at the treasury thereof. In consequence of this
+resolution, I took the liberty to recommend the establishment of a
+mint, which was agreed to. I have taken many steps to carry that
+resolution into effect, and hoped by this time to have laid a
+satisfactory state of it before Congress. Delays, the causes of which
+need not be enumerated, have hitherto procrastinated this matter
+beyond my expectations. But there are many reasons why an immediate
+regulation of foreign coins should now be made. It is not the least
+among them, that all our dollars are rapidly going to the enemy in
+exchange for light gold, which must eventually cause a considerable
+loss and scarcity of silver, which will be severely felt. I take the
+liberty, therefore, to suggest the following Act.
+
+Whereas, by the Articles of Confederation and Perpetual Union, the
+United States in Congress assembled, are vested with the sole and
+exclusive right and power of regulating the alloy and value of coins
+struck off by their own authority, or by that of the respective
+States; and whereas, the several requisitions on the States and the
+public accounts of those United States are made and kept in dollars;
+and whereas, it is of importance, that until money be coined by
+authority of the United States, some fixed proportion be established
+between the different foreign coins, most likely to circulate; be it,
+therefore ordained, by the United States in Congress assembled, and it
+is ordained by authority of the same, that from and after the 1st day
+of January, in the year of our Lord, one thousand seven hundred and
+eightythree, English silver coin be received at the rate of one dollar
+and sixteen ninetieths of a dollar by the ounce; Dutch silver coin at
+the rate of one dollar and fifteen ninetieths by the ounce; French
+silver coin at the rate of one dollar and fourteen ninetieths by the
+ounce; Portuguese silver coin at the rate of one dollar and thirteen
+ninetieths by the ounce; English, Spanish, and Portuguese gold coin at
+the rate of sixteen dollars and sixtyeight ninetieths by the ounce.
+
+I take the liberty to observe, Sir, that this estimate of coins is
+founded upon the quantity of alloy, which they respectively contain.
+The weight of each particular piece current among us is so
+indeterminate, that the value by tale cannot be fixed; but whenever
+the rates at which they go as bullion are known, a table may be formed
+in each State for the tale, according to the customary weight which
+prevails.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Head Quarters, December 20th, 1782.
+
+ Sir,
+
+In consequence of a resolve of Congress, I some time since directed an
+inscription with some devices to be engraven on the cannon to be
+presented to the Count de Rochambeau, and enclosed is a certificate of
+General Knox relative to the execution of the work and its price.
+
+In answer to Mr Billings's application to me for his pay, I informed
+him I would write you on the subject, and did not doubt you would
+order payment to be made.
+
+ I have the honor to be, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, January 11th, 1783.
+
+ Sir,
+
+On the 9th instant, from an investigation of Mr Grand's account then
+lately received, I found that after making due allowance for Loan
+Office bills, &c. which might still come upon him, my drafts and those
+which I have directed, would exceed by something more than six
+millions (exclusive of the interest payable by him in November on the
+Dutch loan) any funds which he could be possessed of. It appeared also
+by indirect information so late as in the month of September, that the
+loan opened by Mr Adams had not produced above three millions, so that
+unless he had met with further success, there would be a deficiency of
+three millions.
+
+Had the Court granted us twelve millions in the first instance, had Mr
+Adams's loan produced six millions, had M. de Beaumarchais' bills been
+provided for without recurrence to the American banker, or, finally,
+had the heavy deduction made by those bills been replaced, this
+disagreeable thing would not have happened. Presuming that the loan of
+the last year was exclusively at my disposition, I drew during the
+year to the amount of it, and I am convinced that all my bills, and
+those drawn by my authority, will have been paid. Rely on it, that as
+I told you in a former letter, I have acted under the influence of
+dire necessity, and this you will be convinced of by a few out of many
+circumstances.
+
+Enclosed you have a general statement of the public account until the
+year 1781, on which you will observe that the army was fed
+principally, though scantily, by the specific supplies called for at
+different previous periods, and that there remained in the treasury
+near three hundred thousand dollars, being part of the money which
+Colonel Laurens brought with him from France. I also enclose to you
+the copy of a letter written to Congress on the 21st of October, and
+of its several enclosures, which will need no commentary; or if it
+did, I would only add, that I have been obliged to sell part of the
+goods, which arrived here from Holland, in order to raise so much
+money as would save my sinking credit from destruction. I would go
+into a detail of the various measures pursued to stimulate the
+exertions of the States, but to do this with accuracy, would be to
+give a tedious history of my whole administration. Whatever expedient
+could suggest itself, which might have that desirable effect, I have
+tried, and I do assure you, that when I look back at the scenes I have
+passed through, they strike my own mind with astonishment. As soon as
+I can get the accounts made up, I will transmit to you the total of
+our expenditures; but to transmit, or even relate our hazards and
+difficulties, would be impossible.
+
+Even at this moment I am making further exertions to bring our
+unwieldy system into form, and ward off impending evils; but what the
+success may be, heaven only knows. Imagine the situation of a man, who
+is to direct the finances of a country almost without revenue, (for
+such you will perceive this to be) surrounded by creditors, whose
+distresses, while they increase their clamors, render it more
+difficult to appease them; an army ready to disband or mutiny; a
+government, whose sole authority consists in the power of framing
+recommendations. Surely it is not necessary to add any coloring to
+such a piece, and yet truth would justify more than fancy could paint.
+The settlement of accounts, long and intricate beyond comprehension,
+becomes next to impossible, from the want of that authority which is
+on the verge of annihilation, from those confusions which nothing can
+dissipate except the complete settlement of accounts, and an honest
+provision for payment.
+
+Upon discovering the situation of our affairs in the manner already
+mentioned, I laid them before Congress. You will know the result. The
+Secretary of Foreign Affairs will, doubtless, transmit their Act; to
+which I must add this further communication, that I expect my bills
+will amount to a million within a month from this date. There are
+cases, where nothing worse can be apprehended from a measure than what
+would inevitably happen without it, and our present position is one of
+them. An immediate command of money is alike necessary to our present
+existence and future prospects. In Europe, when this letter arrives,
+you will know decidedly whether we are to expect peace or war. We must
+prepare for the latter. By so doing we may forward negotiations for
+peace, and, at the worst, will only have incurred some additional
+expense, whereas by neglecting it, we risk the chance of being taken
+unawares, and paying very dearly the penalties of neglect.
+
+But, Sir, notwithstanding these reasons and many others will justify
+every counsel and every act however irregular in other respects, I
+would not draw one more bill, and I would boldly hazard every
+consequence of the omission, if I were not persuaded that they would
+be paid. On this occasion your sovereign will expect your most
+vigorous exertions, and your country will, I trust, be indebted to you
+in a degree for her political existence.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, January 13th, 1783.
+
+ Dear Sir,
+
+I have received, in addition to those already acknowledged, your
+letters of the 12th of August, 26th of September, and 14th of October.
+I should, therefore, regularly have received two copies of the
+contract entered into on the 16th of July, between you and the Count
+de Vergennes, but I suppose it has been omitted through mistake in
+both the letters which refer to it.[12] I lament this the more, as no
+one copy of it has yet arrived, and, consequently, the Congress cannot
+do what I am persuaded they would on the occasion. But although from
+this circumstance they do not make professions, yet, as far as I know
+the sentiments of that body, they are penetrated with gratitude. And
+you hazard nothing in making to the King the fullest assurances of
+their desire to repay the obligations they have received, and gratify
+their affection for his person and family by services and benefits.
+You will oblige me much if (together with the contract in question)
+you will send a statement of the Farmer-General's account, and of the
+agreement with them.
+
+ [12] See this contract in the _Secret Journal of Congress_, Vol.
+ III. p. 273.
+
+You tell me that the losses in the West Indies prevent you from
+obtaining farther aid. It is, therefore, to us a double loss. As to
+the precaution you give me about my banker, you will find that before
+the receipt of Mr Grand's accounts, I had drawn on him beyond his
+funds. I have this day entered into an explanation with the Minister
+on that subject, and I enclose you the copy of my letter, as also of
+another paper delivered to him, which may be worth your attention. In
+my turn, I rely upon your promise of exertion to pay my drafts. If one
+bill should be protested, I could no longer serve the United States.
+
+With respect to the apprehension you express as to my bills, I do not
+perceive the matter in the same point of light with you. The lists of
+my bills are transmitted to Mr Grand by various opportunities, and
+they will check any which might be forged or altered.
+
+I shall take due notice of what you say about your salary, and will
+enclose the bills to you. The amount will depend on the course of
+exchange during the war. You will be a gainer, and after the peace you
+may perhaps lose some trifle, but not much, because remittances might
+then be made in specie, should the exchange be extravagantly high. You
+will readily perceive, that although the fluctuations of exchange are
+in themselves of very little consequence to the individuals who may be
+connected with government, they become important at the treasury,
+partly from the numbers of payments and consequent amount, but more so
+because they would introduce a degree of intricacy and perplexity in
+the public accounts, which are generally either the effect, or the
+cause of fraud and peculation. Besides, there is no other way of
+adjusting salaries, than by a payment of so much at the treasury,
+unless by rating them in the currency of every different country as
+livres, dollars, guilders, rubles, &c. The late mode of rating them in
+pounds sterling, required a double exchange. For instance, the number
+of livres to be given in payment of one hundred pounds sterling at
+Paris on any given day, depends on the then rate of exchange between
+Paris and London, and the value of those livres here depends on the
+exchange between Paris and Philadelphia.
+
+I pray you, Sir, to accept my sincere thanks for the kind interest you
+take in the success of my administration. The only return, which I can
+make to your goodness, is by assuring you, that all my measures shall
+be honestly directed towards the good of that cause, which you have so
+long, so faithfully, and so honorably served.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, January 13th, 1783.
+
+ Sir,
+
+I have received your several favors of the 13th of July, 11th and 19th
+of August, and 14th of October. The contents are far from being
+agreeable, but I thank you for the communication of them. If I had
+been so fully apprized of our situation as I now am, perhaps I might
+have suffered everything to be ruined, rather than have risked my
+bills. But if that had been done, more men would have blamed than
+applauded my conduct. I have gone into a full explanation with M. de
+la Luzerne, and although he cannot as Minister approve what is done,
+he has too much sense not to see the propriety and necessity of it.
+
+It will be very useful both to you and me, that we should know exactly
+the state of our affairs, but I cannot acquire that knowledge by any
+comparison of accounts in my possession. You I think will be able to
+do it, and for your assistance I send the following information.
+There have been issued from the several Loan Offices, bills, at thirty
+days' sight, for eight millions four hundred and thirtyone thousand
+seven hundred and fifty livres; bills at sixty days' sight, for one
+hundred and twentyfive thousand livres; and bills at ninety days'
+sight, for one million three hundred and sixtyfour thousand one
+hundred and ninetyone livres, thirteen sous, and four deniers. An
+examination of your books will show at once how much of these sums
+remains unpaid. There have been issued bills on Mr Laurens and Mr
+Adams in Holland, for five hundred and fortyseven thousand three
+hundred and sixtyfour guilders and two thirds; and there have been
+issued on Mr Jay, for four hundred and fiftyeight thousand eight
+hundred and twentysix dollars. A proper inquiry will, I suppose,
+obtain the amount of payments on all these bills, and then you will be
+possessed of the state of things so fully, that you can apprize me of
+facts sufficient for my information.
+
+From the best information I have been able to collect on the subject,
+my bills have very considerably exceeded your funds, but I trust that
+you have been possessed of additional funds for the acquittal of them
+in due season. I do everything that I can, and shall expect that you
+will exert yourself, to aid Dr Franklin. On those exertions I place
+much reliance; being with sincere esteem, Sir, your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, January 13th, 1783.
+
+ Sir,
+
+In the close of our conversation on the 11th instant, your Excellency
+did me the honor to request that I would recapitulate to you in
+writing, the reasons why my bills had exceeded the funds in possession
+of Mr Grand, by about three millions and a half of livres. I undertake
+this task with pleasure, but I will premise, that in the course of
+this letter (seeking clearness more than precision) I will not trouble
+you with an attention to fractional sums, but rather to round numbers.
+
+You will remember, Sir, that shortly after your arrival in this
+country, the Congress, while they continued their drafts for interest,
+added a number of other bills on Dr Franklin, at a long sight, which
+they directed to be sold; and urged by their necessities, and relying
+on the success of measures then just undertaken, they drew other bills
+at a long sight on their Ministers in Spain and Holland. Before this
+they had drawn bills on Dr Franklin, in favor of M. de Beaumarchais,
+for nearly three millions, of which two millions and a half were
+payable in June, 1782. The amount of all these bills, exclusive of
+those to M. de Beaumarchais, was between thirteen and fourteen
+millions. How great a proportion of this sum had been paid, and how
+much remained due, it was impossible for me to determine with
+precision, because I had not received the accounts, but the best
+estimate in my power was made.
+
+Your Excellency will also remember, that from the sketch which you did
+me the honor to deliver from the Count de Vergennes, there was due on
+the Dutch loan of 1781 about four millions, or three and a half after
+deducting the supposed expenses of that loan. I considered this
+balance as sufficient to liquidate what I estimated to remain due of
+the several bills drawn by order of Congress as above mentioned,
+excepting the two millions and a half payable in June last. I
+perceive, however, from Mr Grand's accounts, that although his
+Majesty, among other acts of his royal generosity, remitted the
+expenses of the loan, yet the balance actually touched by the banker,
+amounted only to about two and a half millions. Thus there was a
+deficiency of a million in what I had relied upon to acquit former
+engagements. It is necessary for me to mention here, that I had
+allowed also for a supposed deduction on account of the Virginia
+goods, but as I had also supposed, that fewer of the Congress bills
+remained unpaid than appeared afterwards to have been, so one error
+eventually corrected the other, and left the deficiency still at a
+million. It is proper also to observe further, that although the loans
+and subsidies of 1781, amounting in the whole to twenty millions, had
+been principally employed in the purchase of clothing and military
+stores, yet the continuance of those things in Europe by various
+delays and mischances obliged me to make provision for the same
+articles here, forming thereby a heavy deduction from the small means
+which were at my disposal.
+
+Having said thus much of things previous to the year 1782, I must now
+take the liberty to remind your Excellency, that I had requested the
+sum of twelve millions for that year, on the principle, that after
+deducting two millions and a half for M. de Beaumarchais, the
+remaining nine and a half would be absolutely necessary, and I then
+did expect much more from the States than has been received. The
+Court, however, granted only six millions, but I had every reason to
+suppose, that this sum would be exclusively at my disposition; and
+therefore in consequence of your Excellency's assurances, and
+according to your advice, I drew twelve bills of half a million each
+on Mr Franklin, in favor of Mr Grand, and I appropriated this money to
+the payment of what bills I should draw on him; excepting a part which
+I desired him to ship during the last summer, when bills were not
+saleable, and which I expected here in November, or December; but as
+it did not arrive, I conjectured as the event has shown, that no
+shipment was made, and extended my bills accordingly. As to M. de
+Beaumarchais' bills, I expected that some arrangement might have been
+taken with relation to them, according to our conversations. For
+although you declared that you had no instructions on that subject,
+yet you saw with me that our funds would not bear such a deduction,
+and the line of conduct which you advised, was precisely that which I
+pursued, as I shall presently have occasion to mention.
+
+I relied then on the loan of six millions, and on three millions which
+Mr Adams had obtained in Holland, so long ago as in September last. My
+appropriation of these sums was as follows. Bills drawn on Mr Grand in
+1782 for six millions, being the amount of the loan made by his
+Majesty; one million negotiated through the Havana; half a million
+which I directed for payment of interest on the Dutch loan of 1781;
+and a million and a half drawn for in 1783, at the time I had the
+honor to speak to your Excellency, formed the amount of three millions
+in Holland, which by the Acts of Congress were exclusively at my
+disposition.
+
+It was not, therefore, until the investigation of Mr Grand's accounts,
+that I was struck with the deficiency above mentioned, and which arose
+from the difference of one million due on the former transactions more
+than I had calculated, and two millions and a half to M. de
+Beaumarchais. The moneys which I supposed to be at my sole disposal
+were, I found, subject to Dr Franklin's order, and therefore Mr Grand
+instead of six millions possessed only two and a half towards
+answering my bills drawn in 1782. I had written to Dr Franklin in the
+manner agreed between us as to M. de Beaumarchais. But the money was
+paid before the letter arrived. I should not, however, do that justice
+to Dr Franklin which I ought, if I did not observe, that I think he
+was perfectly right in causing those bills to be paid. You will
+consider, Sir, that they had been drawn in 1779, and negotiated for
+three years, through different parts of Europe and America, on the
+public faith and credit of the United States. It is a very moderate
+calculation to suppose, that a thousand different people were
+interested in the sum of three and a half millions. Protesting the
+bills, therefore, would have sent them back again from one person to
+another, affixing a stigma on our character wherever they went. The
+necessary consequence would have been, not only a total loss of credit
+in Europe, but that no person here would have bought my bills. The
+funds, therefore, which I could command would have been useless, and
+the difference between not having money and not being able to use it
+is immaterial.
+
+Having said thus much, Sir, on the reason of the deficiency, I find
+it proper to add, that the bills drawn in December and November amount
+to two millions; which being at thirty days' sight will not be payable
+until February or March next. One million negotiated through the
+Havana on Cadiz, thence to Paris, &c. will not finally be payable
+until March and April. And one million drawn the beginning of this
+month at one hundred days' sight, will not fall due until some time in
+April and May. On the other hand, any further success of Mr Adams's
+loan will apply for the payment.
+
+I trust from the whole state of these things your Excellency will see,
+that nothing has introduced any disorder into these transactions, but
+the appropriation without my authority of moneys intended to be at my
+disposition, and that this again has arisen from the utter incapacity
+of Dr Franklin any otherwise to acquit the demands on him, arising
+from expenditures made some years before my administration. If I might
+venture, therefore, to advise, it should be that three and a half or
+four millions were paid to Mr Grand as an addition to the loan of
+1782, and then the sum which the Court may think proper to advance for
+1783, being clear of preceding transactions, I will pledge myself that
+no act of mine shall exceed the limits to be prescribed by your Court.
+
+You see, Sir, that I rely on aid for the current year; and this brings
+me to the resolution of Congress, which I had also the honor to
+communicate. You observed on it with great propriety, as a Minister of
+France, that you advised me not to comply with it; and as a Minister
+of the United States I might reply, that I should certainly obey the
+order of my masters. At the bottom I believe we are both agreed. I
+would not put my name to a bill if I doubted the payment, and you must
+be convinced that it is necessary to draw. Not to mention those
+critical circumstances of the army, which you are perfectly apprized
+of, it must be remembered how important an effect it might have on the
+negotiations for peace, if we should now neglect to prepare for war,
+and much more if we should suffer any serious misfortune. To keep the
+army together, in good humor and prepared for action, is a duty which
+we owe alike to ourselves, to our allies, and to our associates in the
+war.
+
+I shall I believe draw within a month for at least a million. You
+know, Sir, that the funds given by the States are incompetent, and I
+am sure you will do me the justice to believe, that I have done all in
+my power to husband our means and to increase them. That I have not
+talents equal to this task must be lamented and forgiven. It is not my
+fault but my misfortune. The share of abilities which I possess, be it
+what it may, has been faithfully exerted. If, however, I have incurred
+censure on the present occasion, it must be because I was ignorant of
+what I could not know, and did not perform what was not in my power.
+
+I am, Sir, with respect and esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JOHN ADAMS.
+
+ Office of Finance, January 19th, 1783.
+
+ Sir,
+
+Although I have not yet been honored with any letters from your
+Excellency, I cannot omit the occasion of writing, which offers itself
+by Mr Jefferson. Having already congratulated you on the
+acknowledgement of our independence by the States-General, and on the
+rapid success of your labors equally splendid and useful, I hope when
+this letter shall have reached your hands I may have the additional
+cause of congratulation, that the loan you have opened in Holland
+shall have been completed. This is a circumstance of great importance
+to our country, and most particularly so to the department, which I
+have the honor to fill. Whatever may be the success of it, whether
+general or partial, I pray your Excellency to favor me by every
+conveyance with every minute detail, which can lend to form my
+judgment or enlighten my mind.
+
+For the more perfect security of our correspondence I do myself the
+honor to enclose the counterpart of a cypher, to the use of which you
+will soon become familiarised, and I hope you will be convinced, that
+any confidence with which you may honor me shall be safely reposed and
+usefully employed for the public benefit.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF PENNSYLVANIA.
+
+ Office of Finance, January 20th, 1783.
+
+ Sir,
+
+I had the honor to receive your Excellency's favor of the 18th of last
+evening. In answer, it becomes my duty to convey to your Excellency,
+the painful information, that those affairs of Congress, which relate
+to the public revenue, are reduced to the most critical situation.
+They are now under contemplation of that honorable body, and I shall
+take the earliest opportunity of communicating to the several States
+the result of their deliberations.
+
+It is also my duty, Sir, on this occasion, to remind your Excellency,
+that on the 2d day of November, 1781, the Congress required of the
+State of Pennsylvania, one million one hundred and twenty thousand
+seven hundred and ninetyfour dollars, as the quota of that State, for
+the expenditure of the year 1782. This sum was to have been paid in
+equal quarterly proportions, commencing on the 1st day of April last.
+I am extremely sorry to mention, that during the whole of the year,
+1782, there has been received towards the payment of this quota, only
+the sum of one hundred and seven thousand nine hundred and twentyfive
+dollars and twentyfour ninetieths, being less than a tenth of the sum
+required. It is of little avail, Sir, that the army who are the
+immediate sufferers, or the people of America whose national existence
+is so imminently hazarded, should be told, that a law has been enacted
+for raising the sum required. Laws not executed, or which from their
+nature are not to be executed, only substitute deception in the place
+of denial. Congress can never believe, that a State seriously means a
+compliance with the demands made on it, unless the laws be such, that
+responsible officers be sufficiently empowered to collect the taxes by
+certain specified periods, and that the Continental Receiver of taxes
+be empowered after such periods shall have elapsed, to issue
+executions against the persons and estates of those officers for any
+deficiency, which may remain of the sums payable by them respectively.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, January 21st, 1783.
+
+ Sir,
+
+I have received your Excellency's favor of the 6th and 8th instants. I
+have directed the Commissary of Marine Prisoners to appoint a proper
+agent at Dobbs' Ferry, and I hope for your Excellency's advice to him
+on that occasion, which he will be desired to apply for. Without
+wishing to incur the blame of too great suspicion, I take the liberty
+to suggest, (as an additional reason for caution;) that moneys
+intended for commercial pursuits, might be transmitted under the idea
+of relieving prisoners. Mr Skinner has never yet communicated his
+returns or accounts.
+
+It was with very great pleasure, Sir, that I paid the money you
+desired, to Mr Adams, and I beg you to believe, that I shall at all
+times be happy to facilitate your views. At present, the negotiation
+happens by good luck to minister alike to your convenience and mine. I
+am very sorry, that you did not make an earlier mention to me of your
+demands for secret service. I would have anticipated your views, had
+it not escaped my attention, for be the distresses of my department
+what they may, this is of too much importance ever to be neglected. I
+think it best in future, that a solid arrangement should be taken, and
+for this purpose I will give directions to the Paymaster General
+always to keep some money in the hands of his deputy, to answer your
+drafts for contingencies and secret service. I have, as you will see,
+taken methods to put the deputy in cash, and then your Excellency will
+be relieved from any further care than the due application. I am,
+however, to pray for the sake of regularity in accounts, that your
+Excellency in the warrants would be so kind as to specify the
+particular service when on the contingent account, and draw in favor
+of one of your family on account of secret services, mentioning that
+it is for secret service. I shall direct Mr Swanwick to endorse the
+bills on you in favor of Mr Adams to the Paymaster General, whose
+deputy will receive from your Excellency the amount.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, January 24th, 1783.
+
+ Sir,
+
+As nothing but the public danger would have induced me to accept my
+office, so I was determined to hold it until the danger was past, or
+else to meet my ruin in the common wreck. Under greater difficulties
+than were apprehended by the most timid, and with less support than
+was expected by the least sanguine, the generous confidence of the
+public has accomplished more than I presumed to hope.
+
+Congress will recollect, that I expressly stipulated to take no part
+in past transactions. My attention to the public debts, therefore,
+arose from the conviction, that funding them on solid revenues was the
+last essential work of our glorious revolution. The accomplishment of
+this necessary work is among the objects nearest my heart, and to
+effect it, I would sacrifice time, property, and domestic bliss.
+
+Many late circumstances have so far lessened our apprehensions from
+the common enemy, that my original motives have almost ceased to
+operate. But other circumstances have postponed the establishment of
+public credit in such a manner, that I fear it will never be made. To
+increase our debts, while the prospect of paying them diminishes, does
+not consist with my ideas of integrity. I must, therefore, quit a
+situation which becomes utterly insupportable. But lest the public
+measures might be deranged by any precipitation, I will continue to
+serve until the end of May. If effectual measures are not taken by
+that period, to make permanent provision for the public debts of every
+kind, Congress will be pleased to appoint some other man to be the
+Superintendent of their Finances. I should be unworthy of the
+confidence reposed in me by my fellow citizens, if I did not
+explicitly declare, that I will never be the minister of injustice.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, February 26th, 1783.
+
+ Sir,
+
+A number of those who have contracted engagements with me will, I
+know, place a personal reliance on me for the fulfilment of them, As
+the time approaches very fast when I am to quit this office, it is
+proper for me to make the necessary preparations. Among these, I must
+place the due and seasonable information, which as an honest man I
+must convey to those who have confided in me. I am, therefore, to pray
+that the injunction of secrecy, contained in the order of the 24th of
+January last, may be taken off. At the same time, I take the liberty
+to suggest to Congress, that the early appointment of my successor,
+will give him opportunity to take such measures as may prevent many
+inconveniences that might otherwise happen.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, February 27th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose to you the copy of a letter to the
+President of Congress, which was written on the 24th of last month. I
+should have transmitted it to you on the next day, but contrary to my
+expectations, Congress enjoined secrecy. I yesterday wrote a letter,
+of which I also enclose a copy, and in consequence of it I am this
+instant informed that the injunction of secrecy is taken off. I seize,
+therefore, the earliest moment to give you the information.
+
+I do assure you, Sir, that nothing would have induced me to take this
+step, but a painful conviction that the situation of those to whom the
+public are indebted is desperate. I believe, sincerely, that a great
+majority of the members of Congress wish to do justice; but I as
+sincerely believe that they will not adopt the necessary measures,
+because they are afraid of offending their States. From my soul I pity
+the army, and you, my Dear Sir, in particular, who must see and feel
+for their distresses, without the power of relieving them.
+
+I did flatter myself that I should have been able to procure for them
+that justice to which they are entitled; and in the meantime, I
+labored to make the situation as tolerable as circumstances would
+permit. For the assistance which you have kindly afforded me, I pray
+you to accept my thanks, and to be assured that I shall ever retain on
+that account the most grateful emotions. My thanks are due also to all
+our officers, for I know that unwearied pains have been taken to give
+them disagreeable impressions, and I am, therefore, doubly indebted
+for the just sentiments, which amid so many misrepresentations they
+have constantly entertained. I hope my successor will be more
+fortunate than I have been, and that our glorious revolution may be
+crowned with those acts of justice, without which the greatest human
+glory is but the shadow of a shade.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO WILLIAM CARMICHAEL, IN MADRID.
+
+ Office of Finance, March 4th, 1783.
+
+ Sir,
+
+You will probably recollect that Mr Jay protested ten bills of
+exchange, each for two hundred and twentyfive Mexican dollars, of
+which the list is enclosed. These bills, with the addition of twenty
+per cent damages, amount to two thousand seven hundred dollars, for
+which I have this day signed a set of bills on you, which, to avoid
+the dangers to which communication is liable, are extended to the
+eighth bill. This draft is at six months' sight, and I am to desire
+that you will honor it, and take your reimbursement on Mr Grand. The
+length of sight may probably place it at a considerable discount on
+the exchange of Madrid, and it is probable, also, that you may draw on
+Mr Grand to advantage; if so, I conceive it would be best to have the
+bill bought.
+
+Draw on Mr Grand at the common usance, and close the transaction;
+which I hope may be the last of the kind, which the American
+government will be concerned in. An additional reason for suggesting
+this is, that should this bill go through hands ignorant of the whole
+transaction, it may give rise to conjectures, that the former practice
+of drawing is about to be revived. I should have drawn on France or
+paid in cash, but as the party is at Boston, and the rate of the
+exchange unfixed, it is more conformable to mercantile usage to give a
+new bill for the principal and damages.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, March 8th, 1783.
+
+ Sir,
+
+I received yesterday afternoon a report, which is to be considered on
+Monday the 10th instant, and with it I received an order to transmit
+my observations. The shortness of the time obliges me to ask
+indulgence for deficiencies or inaccuracies. I have always believed
+that Congress were disposed to do _justice_ to the public creditors,
+and I shall presume that the _power_ of Congress will be exerted for
+that purpose.
+
+There appear, therefore, two principal points to be considered.
+
+I. What justice requires; and,
+
+II. What Congress have power to do.
+
+To the first I answer. _Justice requires that the debt be paid._ The
+_principles_ of justice require that from a government, which a
+_court_ of justice exacts from an individual. Government have no right
+to oblige creditors to commute their debts for anything else. Any
+revenues, therefore, to be pledged for the restoration of public
+credit must be such, that money may be borrowed on them to pay those
+to whom it is due; any plan which falls short of that object will not
+do justice. And no plan will embrace that object unless it be such
+that under it individuals would prefer government security to any
+other. In our particular situation it appears clear, that such public
+creditor has a complete right to demand his whole debt from Congress,
+and to name the terms on which he will forego it, and that Congress
+have a similar right in regard to the States.
+
+In order to determine on the second question, viz. the _power_ of
+Congress, we must resort to the confederation. By the eighth article
+it will appear, that Congress have a right to determine on the sum to
+be paid by the States, and the time of payment; and that this sum is
+to be paid by the States in proportion to their respective value, or
+an estimation to be made in the mode to be appointed by Congress. It
+is, therefore, in the _power_ of Congress to call for payment of the
+whole debt by any day; such for instance as the 1st of January; and to
+have a valuation made some previous day; such for instance as the 1st
+of September. _The right of Congress is perfect, and the duty to pay
+absolute._ It appears necessary that this power be exerted in the most
+_decisive form_, and that whatever _general plan_ of finance may be
+adopted, the concurrence of each State in such plan should be admitted
+_as an alternative_ for not paying her apportioned quota of the whole
+debt. My reasons are these.
+
+1st. It will not be believed, that Congress have no power to do
+justice until the power which they have is exerted.
+
+2dly. The public creditors have a right to expect that exertion.
+
+3dly. Until it be made, a compliance with the demands of Congress will
+be considered by the States as a matter of favor and not of right.
+
+4thly. Congress having a right to the whole money, it follows that
+they have the _exclusive_ right to name those precise terms on which
+they will commute it.
+
+5thly. Hence it follows that their plan, (be it what it may) must be
+adopted by the States in all its parts, because none of them can have
+a right to make amendments.
+
+6thly. The objections heretofore raised against the impost will by
+this means be totally done away, because each State may at its option
+either comply with the general plan or pay her particular share of the
+whole debt.
+
+7thly. If the plan proposed as an alternative be adopted, it will from
+the nature of the case be an express national compact between the
+United States and each individual State. The revenue will have been
+purchased by Congress and they will have a perfect right to insist on
+their bargain.
+
+8thly. The plans of Congress will by this means be greatly facilitated
+in the States, because the arguments will apply to men's feelings, and
+they will at once perceive, that it is better to give a permanent
+revenue of six, than make immediate payment of a hundred. Every term
+and condition in the plan will then be fair, because if the revenues
+be such as in the judgment of the Legislature will fall too heavy on
+their constituents, they can adopt others, borrow on their own
+account, and pay in their share at the day named. So that the United
+States will either receive the whole money, and pay all their debts,
+or they will get solid revenues to fund the whole, or they will
+receive a part and have such revenues for the remainder.
+
+It also appears to me that our situation requires the utmost despatch,
+and therefore I wish much that the days named should be shorter than
+those above mentioned. The Act of the 17th of last month has been duly
+forwarded to the several States, but there will be no impropriety in
+taking a shorter mode of valuation for apportioning the debt, and
+leaving the valuation by the Act of the 17th to apply to the yearly
+apportionments subsequent to the last year. Various modes of making a
+speedy valuation might be suggested; such for instance, as that
+Congress should appoint a commissioner for each State, directing them
+to meet at this place on the 1st of June and determine, that the
+valuation made by the majority of those who do meet should be
+conclusive. If such a line of conduct as this be pursued, those
+suspicions as to the integrity of Congress, which ill designing men
+have endeavored to raise must immediately cease. And if justice be not
+done, public indignation will be pointed to the proper persons.
+
+With respect to the alternative which may be proposed, I am sorry to
+find that my ideas as to the objects of revenue have not met with the
+approbation of Congress. I must be indulged in observing, that let the
+revenues be what they may, it is indispensable that all the collectors
+be appointed by the authority of the United States, and for the
+following reasons.
+
+1st. Experience has shown, that the taxes heretofore laid in the
+States have not been collected.
+
+2dly. It is evident from a consideration of their modes of taxation,
+(which they are all very obstinately attached to,) that they never
+will be punctually collected.
+
+3dly. The punctuality in the payment of interest is essential to
+public credit.
+
+4thly. As Congress forego their right to insist on the principal, it
+is but just that they should have every possible security for the
+interest.
+
+5thly. As the people are in either case to pay the supposed tax at
+certain periods it must be a matter of indifference to what particular
+man the payment is made.
+
+6thly. The objection raised in favor of elected tax gatherers, viz.
+that they consider the circumstances of the people, which is saying in
+other words, that they are guilty of favor and partiality, is the
+strongest reason why the collectors should be appointed by, and
+amenable to, Congress.
+
+7thly. It is a kind of absurdity in itself, that Congress should have
+a right to the tax, and yet no right to send their servants to receive
+it.
+
+I pray leave also to observe, that the revenues must be co-existent
+with the debt. No man in his senses will lend on any other terms. If
+the revenue be only for a fixed period of time, no more can be
+borrowed on it than the price of an annuity for such a time. And it
+has already been observed, that money must be _borrowed_ to _pay_ the
+public creditors, because they have a just right to their _money_.
+Another observation on this subject I must take the liberty to
+impress. The more clear, certain, permanent, and increasing the funds
+are, the lower will be the interest at which money can be borrowed. If
+the funds be very good, money may be borrowed at four per cent,
+perhaps at three per cent. If they are not good it will not be
+procured for less than six, seven, or eight per cent, and perhaps not
+at all. Proper reflections on this subject will naturally suggest
+themselves, and it will not be forgotten, that whether the debt be
+less or greater, and whether the interest be higher or lower the
+_people must pay all_.
+
+With respect to the impost I conceive it to be justly exceptionable,
+because that an estimation ad valorem is arbitrary, and the law ought
+in all cases to be clear and explicit. The impost on prizes need not,
+I should suppose, be asked for, because Congress may take measures for
+the purpose themselves whenever the occasion requires. I conceive
+also, that a tax might be laid on exports which, without being
+burdensome, would still be productive. Enclosed is a list of rates,
+which I take the liberty to submit. I cannot go into a written detail
+of the reasons for them, because my time will not permit.
+
+I am told that the principal objection to a land tax is the
+inequality. To obviate this objection (although I cannot accede to the
+force of it) perhaps a reduction of the sum from one dollar to a
+quarter of a dollar per hundred acres might be expedient; and to
+supply the deficiency, a tax on houses might be adopted, according to
+the enclosed rate, which I also beg leave to submit.
+
+I must take the liberty to declare my most serious apprehensions from
+the existence of unsettled accounts among the States. Everything which
+tends to create or continue them is fraught with ruinous consequences.
+Keeping accounts of moneys paid by taxes of the States, and
+liquidating those accounts by after settlements, will, I fear, prove
+the source of much dissension. It will operate as heretofore in
+preventing the States from paying anything. I would pray therefore to
+submit to Congress the following mode of terminating all present
+accounts, viz. that the whole sum paid or expended by each State, for
+the public service from the commencement of the war, should be placed
+to the credit of the particular State, and each draw interest on such
+sum. By these means the whole account would be equitably settled in
+the first instance. The States which are indebted on their own private
+account, would be able to wipe off such debts by an assignment of
+national stock. And on the first requisitions made by Congress for
+current expenditures, each might make payment either in part, or
+perhaps in the whole, by a discharge of so much of the debt. Thus a
+degree of simplicity would be introduced into our affairs, and we
+might avoid the horrors of intestine convulsions.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Head Quarters, March 8th, 1783.
+
+ Sir,
+
+Very painful sensations are excited in my mind by your letter of the
+27th of February. It is impossible for me to express to you the regret
+with which I received the information it contains.
+
+I have often reflected with much solicitude upon the disagreeableness
+of your situation, and the negligence of the several States in not
+enabling you to do that justice to the public creditors, which their
+demands require. I wish the step you have taken may sound the claim to
+their inmost souls, and rouse them to a just sense of their own
+interest, honor and credit. But I must confess to you that I have my
+fears, for as danger becomes further removed from them, their feelings
+seem to be more callous to those noble sentiments, with which I could
+wish to see them inspired. Mutual jealousies, local prejudices and
+misapprehensions, have taken such deep root as will not easily be
+removed.
+
+Notwithstanding the embarrassments which you have experienced, I was
+in hopes that you would have continued your efforts to the close of
+the war at least; but if your resolutions are absolutely fixed, I
+assure you I consider the event as one of the most unfortunate that
+could have fallen upon the States, and most sincerely deprecate the
+sad consequences which I fear will follow. The army, I am sure, at the
+same time that they entertain the highest sense of your exertions,
+will lament the step you are obliged to take as a most unfortunate
+circumstance to them.
+
+ I am, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.[13]
+
+ Office of Finance, March 10th, 1783.
+
+ Sir,
+
+In consequence of the order of Congress of the 18th of last month, I
+do myself the honor to enclose an estimate of the principal of the
+public debt to the first day of January, 1783, which has been
+transmitted to me by the Register of the Treasury. This amounts to
+_thirtyfive millions three hundred and twentyseven thousand seven
+hundred and sixtynine dollars fiftythree and one eighth ninetieths_,
+exclusive of what he calls the _unliquidated debt_, being the moneys
+due to the several States and to individuals in the several States. I
+beg leave also to mention other debts which have not been taken into
+the Register's contemplation, namely, the _old continental bills_ and
+_arrearages of half pay_. Congress will easily see that it is not in
+the power of their servants to state the public debts with any
+tolerable precision.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ [13] _March 12th._ This morning arrived the ship Washington,
+ Captain Barney, with despatches from our Ministers in Paris, and
+ with six hundred thousand livres in cash, on account of the United
+ States, in consequence of my order in October last;--and this day
+ also appeared a virulent attack on my public and private
+ character, signed _Lucius_, in the Freeman's Journal, replete with
+ falsehoods.--_Diary._
+
+ * * * * *
+
+TO MAJOR GENERAL GREENE.
+
+ Office of Finance, March 14th, 1783.
+
+ Sir,
+
+I received the other day your letter of the 2d of February last, and
+am very much obliged both by the pains you have taken, and the
+sentiments you have expressed in favor of a department, which I shall
+shortly be obliged to abandon. You will before this reaches you have
+seen in the newspapers my letters of resignation. I shall not,
+therefore, go into a detail of the reasons for taking that step, which
+was as painful to me as you can easily conceive. But I had no
+alternative. I saw clearly that while it was asserted on all hands,
+our debts ought to be paid, no efficient measures would be adopted for
+the purpose; no good plan agreed on. I felt the consequences of my
+resignation on the public credit; I felt the probable derangement of
+our affairs; I felt the difficulties my successor would have to
+encounter, but still I felt that above all things it was a duty to be
+honest. This first and highest principle has been obeyed. I do not
+hold myself answerable for consequences. Those are to be attributed to
+the opposers of just measures, let their rank and station be what they
+may. I expect much obloquy for my conduct, because this is what I
+knew to be the reward for any conduct whatever which is right. To
+slander I am indifferent, and still more indifferent about the
+attempts to question the services I have rendered, but I feel most
+sensibly for your situation, and for that of every other officer.
+
+The Congress have now, and have long since had under their
+consideration, a due provision for the public debts; when they will
+conclude it, and what it will be, God only knows. If it is such as in
+my opinion will do justice, I shall stay somewhat longer in office to
+know the decisions of the States, and if their proceedings are what on
+such an occasion they ought to be, I shall spare no labor and regret
+no time in completing the business, so that my successor may receive
+it from my hands as clear and simple, as it was confused and
+embarrassed when it was undertaken. But if these things do not happen,
+you and every other good man will, I hope, acquit me for leaving a
+post, in which I am totally unsupported, and where I must be daily the
+witness to scenes of poignant anguish, and deep injustice without the
+possibility of administering either relief or palliation. While I do
+continue in office, rely on every support in my power, and always,
+whether a public or a private man, believe in my esteem and affection.
+
+ I am, very respectfully, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, March 17th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose the copy of a letter of the 14th of
+December last from Dr Franklin, and the translation of a letter of
+the 15th instant, from the Chevalier de la Luzerne. These, together
+with the letter of the 23d of December from Dr Franklin, of which I
+have already submitted a copy, will I trust claim the attention of the
+United States.
+
+M. de la Luzerne did me the honor to make verbal communication of the
+Count de Vergennes' letters, from which as well as from those of Dr
+Franklin and from other circumstances, I consider it as certain that
+we are to expect no further pecuniary aid from Europe. So late as on
+the 9th of December last, the loan in Holland had not amounted to
+eighteen hundred thousand florins, and after the deduction of the
+charges on it, there were not above seventeen hundred thousand at my
+disposal. From the month of June to the 9th of December this loan had
+not increased half a million of florins, so that the most sanguine
+expectation will not carry it beyond two millions out of the five for
+which it was opened.
+
+Congress will recollect, that on the 14th of September last they
+ordered a loan of four millions of dollars in Europe, for the service
+of 1783, in addition to this loan, which Mr Adams had opened in
+Holland. They will also recollect, that I had anticipated upon those
+resources about three and a half millions of livres during the year
+1782. And that this anticipation was over and above the sum of a
+million and a half of florins, which we then knew to have been
+borrowed in Holland. Allowing, therefore, for the supposed increase of
+half a million of florins or a million of livres, there will still
+remain of anticipation two and a half millions of livres; so that of
+the sum lent for this year by his Most Christian Majesty there will
+remain but three millions and a half of livres. According to the
+common course of exchange, this sum cannot be expected to yield more
+than six hundred thousand dollars. Six hundred thousand dollars,
+therefore, with what the States will yield in taxes, form the whole of
+our expectations for the current year. From this is to be deducted one
+month's pay already promised to the army, amounting by estimate to
+upwards of two hundred and fifty thousand dollars.
+
+To judge of our prospects for what remains, Congress will be pleased
+to observe, that the subsistence of our officers is nearly twenty
+thousand dollars, that the rations issued in New York and New Jersey
+are about fifty thousand dollars, and that the rations of the southern
+army will probably amount to upwards of twelve thousand dollars. If to
+this be added the various detached corps, it will be found, that the
+articles of rations and subsistence, exclusive of the prisoners, will
+form an amount of about ninety thousand dollars a month. My
+anticipations on the taxes are so well known, that it is not necessary
+to mention them any more than the other objects of forage, &c. which
+are indispensable. I have gone into these few details merely to
+elucidate one position, viz. that _all the money now at our command,
+and which we may expect from the States for this two months to come,
+will not do more than satisfy the various engagements, which will by
+that time have fallen due_.
+
+It is of importance that Congress should know their true situation,
+and therefore I could wish, that a committee were appointed to confer
+with the Minister of France. My reason for that wish is, that every
+member of Congress may have the same conviction, which I feel of one
+important fact. _That there is no hope of any further pecuniary aid
+from Europe._ The conduct of the French Court on the subject has been
+decisive. Some persons have indeed flattered themselves, that her
+positive declarations were merely calculated to restrain our rashness
+and moderate our excess, but these ideas can no longer have place in
+any sound and discerning mind. Her conduct has been consistent with
+her declarations, and if she had ever so much inclination to assist us
+with money _it is not in her power_.
+
+But whatever may be the ability of nations or individuals, we can have
+no right to hope, much less to expect the aid of others, while we show
+so much unwillingness to help ourselves. It can no longer be a doubt
+to Congress, _that our public credit is gone_. It was very easy to
+foresee that this would be the case, and it was my particular duty to
+predict it. This has been done repeatedly. I claim no merit from the
+prediction, because a man must be naturally or wilfully blind who
+could not see, _that credit cannot long be supported without funds_.
+
+From what has already been said, Congress will clearly perceive the
+necessity of further resources. What means they shall adopt, it is in
+their wisdom to consider. They cannot borrow, and the States will not
+pay. _The thing has happened which was expected._ I cannot presume to
+advise. Congress well knew that I never pretended to any extraordinary
+knowledge of finance, and that my deficiencies on this subject were a
+principal reason for declining the office. I have since had reason to
+be still more convinced of my incompetency, because the plans which I
+did suggest have not met with approbation. I hope, therefore, that
+some abler mind will point out the means to save our country from
+ruin.
+
+I do assure you, Sir, that it is extremely painful to me to be
+obliged to address Congress on this subject. I wish most sincerely,
+that I could look at our future prospects with the same indifference,
+that others have brought themselves to regard them. Perhaps I am not
+sufficiently sanguine. It is common for age to listen more to the
+voice of experience than youth is inclined. The voice of experience
+foretold these evils long since. There was a time when we might have
+obviated them, but I fear that precious moment is passed.
+
+Before I conclude this letter, I must observe on the misconstructions,
+which men, totally ignorant of our affairs, have put on that conduct,
+which severe necessity compelled me to pursue. Such men, affecting an
+intimate knowledge of things, have charged the destruction of public
+credit to me, and interpreted the terms of my resignation into
+reflections upon Congress. I hope, Sir, that so long as I have the
+honor to serve the United States, I shall feel a proper contempt for
+all such insinuations. I shall confidently repose myself on the candor
+of Congress. It is for them to judge of my conduct on full and
+intimate knowledge. Writers for a newspaper may, indeed, through the
+medium of misrepresentation, pervert the public opinion, but the
+official conduct of your servants is not amenable to that tribunal. I
+hope, however, to be excused for observing, that on the day in which I
+was publicly charged with ruining your credit, those despatches
+arrived from Europe, which tell you it was already at an end. The
+circumstances which I alluded to in my letter of resignation, were not
+yet known in Europe. It was not yet known that Rhode Island had
+unanimously refused to pass the impost law, and that Virginia had
+repealed it. The very delays, which the measures of Congress had met
+with, were sufficient to sap the foundations of their credit. And we
+now know that they have had that effect. When those circumstances,
+therefore, shall be known, it must be overturned. I saw this clearly,
+and I knew that until some plain and rational system should be adopted
+and acceded to, the business of this office would be a business of
+expedient and chicane. I have neither the talents nor the disposition
+to engage in such business, and, therefore, I prayed to be dismissed.
+I beg pardon, Sir, for this slight digression. I shall trespass no
+longer on your patience, than to assure you of the veneration and
+respect, with which I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE RECEIVERS OF CONTINENTAL TAXES IN THE SEVERAL STATES.
+
+ Office of Finance, April 7th, 1783.
+
+ Sir,
+
+I enclose you an account of the public receipts and expenditures from
+the commencement of my administration to the close of last year. While
+in compliance with what I conceive to be the duty of those intrusted
+with expenditures of public money, I publish these accounts, I cannot
+but blush to see the shameful deficiency of the States. You will, I
+hope, take occasion to make the proper remarks, and, indeed, it were
+to be wished that some able writers would rouse the attention of your
+Legislature to our situation. Surely the pride and good sense of the
+people will combine in stimulating them to exert themselves, so as to
+stand on their own feet, and not owe a support to the precarious
+bounty of foreign powers.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, April 7th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose for your Excellency's perusal, and
+the consideration of your Legislature, a statement of receipts and
+expenditures for the years 1781 and 1782, so far as the same have
+fallen under my administration. You will also find enclosed, the
+general accounts of receipts from the States, and subsequent payments
+into the treasury for the last year, together with the particular
+account of your State for that period. I shall not trouble your
+Excellency with any comments on these accounts.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO A COMMITTEE OF CONGRESS.
+
+ Office of Finance, April 14th, 1783.
+
+ Gentlemen,
+
+Since the conference I had the honor to hold with you on the 9th
+instant, my mind has been continually occupied on the important
+subject to which it relates. My feelings are strongly excited by what
+I wish for the public, and by what I apprehend, both for them and for
+myself.
+
+The two points, which relate to my department, are the settlement of
+accounts and advance of pay. With respect to the first, it is now
+going on in a satisfactory manner, and will be as speedily
+accomplished as can reasonably be expected. The arrangements taken on
+that subject are of such a nature, that I conceive the disbanding of
+the army need not be delayed until the settlement is completed,
+because the proper officers may be kept together, although the men be
+dismissed. The amount of three month's pay, which is stated by the
+General to be _indispensable_, is, according to the estimate, seven
+hundred and fifty thousand dollars. From what I have already stated to
+Congress, it will appear that the reliance for a great part of this
+sum, must be on the sales of public property and the taxes. Neither of
+these sources can produce much immediately, and from the latter there
+is but little hope at all, unless something can be done to stimulate
+the exertions of the States.
+
+The receipts being regularly published, I am spared the necessity of
+disagreeable observations on that topic. To supply so large a sum as
+is required is utterly impracticable, or, indeed, to obtain any very
+considerable part. The most, therefore, which can be done, is to risk
+a large paper anticipation. This is an operation of great delicacy,
+and it is essential to the success of it, that my credit should be
+staked for the redemption. Do not imagine, Gentlemen, that this
+declaration is dictated by vanity; it becomes my duty to mention
+truth. I had rather it had fallen from any other person, and I had
+much rather it did not exist. In issuing my notes to the required
+amount, it would be necessary that I should give an express assurance
+of payment, and in so doing, I should be answerable personally for
+about half a million, when I leave this office, and depend on the
+arrangements of those who come after me to save me from ruin. I am
+willing to risk as much for this country as any man in America, but it
+cannot be expected that I should put myself in so desperate a
+situation. To render the arrangements, which that advance would
+require, effectual in an official point of view, would be a work of
+time, and the period of my official existence is nearly arrived.
+
+Disbanding the army in a manner satisfactory to them and to the
+country, is doubly desirable, and although extremely difficult, is I
+believe practicable. I shall be very ready at all times, Gentlemen, to
+give my advice and assistance to those who may be charged with that
+delicate and perilous undertaking, and I would go as far to effect it
+myself as any reasonable man could require. But though I would
+sacrifice much of my property, yet I cannot risk my reputation as a
+man of integrity, nor expose myself to absolute ruin.
+
+ I am, Gentlemen, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO ALEXANDER HAMILTON.
+
+ Office of Finance, April 16th, 1783.
+
+ Sir,
+
+I have been duly honored with the receipt of your favor of the 15th
+instant. I accepted the Marine Agency, simply with a view to save the
+expense of the department; but whenever a Marine is to be established
+a previous point would be (in my opinion) to nominate a Minister of
+Marine, and let his first work be the forming of those plans and
+systems, which when adopted by Congress, he would have to execute. For
+my own part, were my abilities equal to this task, my leisure would
+not permit the attempt.
+
+With respect to the finances, I am of opinion, that as we cannot
+increase our revenue, we must do all we can to lessen our
+expenditures, and that, therefore, we should take off every expense
+not absolutely necessary as soon as possible.
+
+On the subject of the coin, I hope soon to make a communication to
+Congress, which, if approved of by them, will complete the business.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, April 23d, 1783.
+
+ Sir,
+
+On the 21st of February, 1782, Congress were pleased to approve of the
+establishment of a mint, and to direct the Superintendent of Finance
+to prepare and report a plan for conducting it. This matter has been
+delayed by various circumstances until the present moment. I now
+enclose specimens of a coin, with a view that if Congress should think
+proper to appoint a committee on the subject, I may have the honor of
+conferring with them, and explaining my ideas of the plan for
+establishing and conducting a mint. Such plan when reported by a
+committee, will more probably meet the ideas of Congress than any
+which I might prepare.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.[14]
+
+ [14] _April 29th._ This morning when I received the book from the
+ office of the Secretary of Congress, in which the Acts of Congress
+ that respect this department are entered every day, I perceived
+ that the committee who had conferred with me respecting my
+ continuance in office after the last day of next month had not
+ reported the whole of the conversation which passed, and that the
+ report as entered on the Journals of Congress, mistakes the sense
+ of what passed on my part. I, therefore, wrote a note to Mr
+ Osgood, informing the committee that they had misconstrued my
+ sentiments. He soon called, and upon my repeating some material
+ parts of the conversation, he acknowledged they had been omitted.
+ I requested him to call the committee together again, but he said
+ they had made their report, and are dissolved, but he would
+ immediately return to Congress, have my note to him read, and move
+ to have the report of the committee expunged from the Journals.
+ _Diary._
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 1st, 1783.
+
+ Sir,
+
+When I saw the journal of the 28th of last month, I was surprised to
+find that the report of the honorable committee appointed to confer
+with me relative to my continuance in office, did not contain those
+ideas, which I had endeavored to convey. I immediately wrote a note to
+the chairman mentioning "that the committee had misapprehended the
+conference on my part." When the conversation passed, I had no
+expectation of seeing it introduced into the report, or I should
+certainly have asked permission to deliver my sentiments in writing.
+
+I am placed, Sir, in a very painful situation and must therefore
+entreat your indulgent interpretation of what I am compelled to say. I
+had the honor of two conferences with the committee, and in the
+mornings after those conferences, respectively, made short minutes of
+what had passed. It is my custom to make such minutes with respect to
+most of my transactions, and as they were originally intended merely
+to aid my own memory, they are not very minute or particular. Those to
+which I now refer are contained in the following words;
+
+_April 22d, 1783._ "The honorable Mr Osgood, Mr Bland, Mr Peters, Mr
+Madison, and Mr Hamilton, a committee of Congress appointed to confer
+with me respecting my continuance in office. I told them that a letter
+from Mr Grand, gave a new complexion to our affairs in Europe, and
+that a frigate being just arrived in a short passage from France I
+expect further advices, which I am desirous of seeing before I enter
+into this conference. I stated the difficulty of fulfilling
+engagements, and the danger of taking any new ones."
+
+_April 24th, 1783._ "The committee of Congress called this morning, in
+consequence of Mr G. Morris having told Mr Osgood, that he imagined I
+was ready for a conference with them. I told the committee that my
+mind had been constantly occupied on the subject, from the time they
+first called until the present moment. That I see and feel the
+necessity and propriety of dismissing the army among their fellow
+citizens, satisfied and contented; that I dread the consequences of
+sending them into civil life, with murmurs and complaints in their
+mouths; and that no man can be better disposed than I am to satisfy
+the army, or more desirous of serving our country, but that my own
+affairs call loudly for my care and attention. However, having already
+engaged in this business, and willing to oblige Congress if they think
+my assistance essential, I will consent to remain in office for the
+purpose of such payment to the army, as may be agreed on as necessary
+to disband them with their own consent, &c. But prayed of Congress to
+excuse me from even this service if they can accomplish their views in
+such other way as they may approve."
+
+These, Sir, are exact copies of my minutes on the subject, and
+although they were hastily drawn, yet I can safely appeal to the
+committee to declare, whether they do not contain what really passed,
+and also whether I did not (in reply to a question put to me by one
+of the members) say, that I expected, if Congress should ask me to
+continue in office, they would confine their request to the effecting
+that particular object of satisfying the army, and would distinguish
+it from anything, which might be construed into an approbation of
+their plan for funding the public debts.
+
+I hope, Sir, that Congress will excuse me for picturing the situation
+I was in, and the feelings which arose out of it. By the Act of the
+7th of February, 1781, it was declared to be the duty of the
+Superintendent of Finance, "to digest and report plans for improving
+and regulating the finances." Congress well know, that I have from
+time to time attempted the performance of this duty, and they know
+also, that such plans have not met with their approbation. The clear
+inference is, what I have already declared both previously and
+subsequently to my appointment, that my abilities are unequal to the
+task I am called to perform. If, therefore, Congress would at any time
+have made a new appointment, I should have considered it as the
+greatest favor. But since they saw fit to continue me in office, I
+prepared the best plans which I could devise, and finding they were
+not agreeable to the ideas of Congress, I waited for the adoption of
+such as might be suggested from some other quarter, or originated
+among themselves. I patiently, but anxiously waited until the 24th of
+January last; but then a clear view of those circumstances, which have
+since followed, compelled me to request they would appoint some other
+man to be the Superintendent of their Finances, if effectual measures
+were not taken by the end of May, to make permanent provision for the
+public debts of every kind. On the 26th of February, finding that no
+successor was yet appointed, and that the plans of Congress were not
+yet completed, I requested leave _to give due and seasonable
+information of my removal to those who had confided in me_. By this
+means I became pledged to the world, not to continue in office after
+the end of May, unless such measures as I conceived to be effectual,
+should be taken before that period, to provide for the public debts.
+On the 7th of March, I received the report of a committee on the
+finances, with orders to transmit my observations. These are contained
+in a letter of the 8th. On the 9th day of April, (no plan being yet
+adopted) a committee called on me to know, whether three months' pay
+could be advanced to the army. I stated to them the incapacity of the
+public treasury to complete in any short period the one month's pay
+already promised, as also the great anticipations made on the public
+revenue. And on the 14th, in a letter recapitulating the hazardous
+situation of things, I informed them that I believed the object they
+had in view was practicable by means of a large paper anticipation. On
+the 18th the plan was adopted for funding the public debts.
+
+It was under these circumstances, Sir, that I held the conferences now
+immediately in question. It was my most earnest desire to be dismissed
+from office, and I stood pledged for it to the public. But a
+circumstance of peculiar nature, which had not been foreseen, now
+presented itself. That army to whom we were indebted for our national
+existence was to be disbanded, either in extreme misery, or with some
+little relief. Every principle of justice and gratitude called loudly
+to administer it; but this could not be done without entering into
+engagements beyond our resources. The dictates of prudence would,
+indeed, have determined me to adhere inflexibly to the resolution
+expressed in my letter of the 24th of January. By so doing I hazarded
+nothing. And as far as my own reputation was concerned, I could have
+placed it in security. For I must be permitted to say, that if solid
+arrangements had been taken to establish national credit, four times
+the required sum might have been easily obtained. No evils, therefore,
+had arisen, which I had not predicted, and none which it was possible
+for me to guard against.
+
+But, Sir, my conduct was not influenced either by personal or
+prudential motives. A sense of the situation to which Congress were
+reduced, an earnest desire to support their dignity and authority, a
+grateful regard to our fellow citizens in arms, mingled with respect
+for their sufferings and virtues. These sentiments, Sir, decided my
+opinion. I agreed for your sakes and for theirs to enter into a
+labyrinth, of which I did not then, nor do I now see the termination.
+
+But I could not do this, except under conditions and limitations. The
+conditions were, that Congress should ask my continuance, and pledge
+themselves for my support; the limitations, that the objects of my
+continuance should be accurately expressed, and that it should be
+confined to the fulfilment of such engagements, as those objects might
+require. These terms were expressed to the committee, and I am sure
+they will do me the justice to acknowledge that they were so. Whether
+they were reasonable, and whether they have been complied with, form
+questions of some importance.
+
+It may be suggested, that asking my continuance would derogate from
+the dignity of Congress. How far this observation is founded, will
+appear from a resolution of the 21st of December last. It was not a
+new thing to make such requests, nor was the practice obsolete, yet I
+should not have desired anything more particular on this subject than
+has been done in the Act of the 28th of April, although far short of
+what other persons have received. But surely it will be admitted, that
+I had a right to expect Congress would pledge themselves for my
+support when I entered into such deep engagements for theirs. Whether
+the limitation of my continuance in the manner just mentioned was
+proper, will appear from considering whether it consisted with the
+dignity of Congress to procure my tacit approbation of their system
+for funding the public debts; a system widely different from ideas,
+which I had expressed on a variety of occasions, and in the most
+pointed manner. Surely, Sir, it was not kind to place me in a
+situation where I must appear either to refuse the performance of an
+important public service, or to break the most solemn engagements and
+contradict the most express declarations. I might dwell much on this
+question, but the delicacy of Congress will render it unnecessary.
+
+The second question is, whether the terms I offered have been complied
+with. And this question is answered by a bare inspection of the Act.
+Your Excellency will pardon me for mentioning, that the report and
+resolution considered conjunctively, rather convey the idea of a
+permission to hold my office than anything else. I had declared to the
+committee, and here again repeat, that a longer continuance would be
+extremely disagreeable to me, and that nothing but the particular
+circumstances already mentioned, could induce my consent. I must add,
+that under the resolution in its present form I cannot stay. I shall
+detain your Excellency no longer than to mention, that I am sensible
+some other man may still suppose that I am only desirous of obtaining
+from Congress some more particular resolutions. To obviate such
+disingenuous remarks, it is my humble request that no further question
+be made on my subject. If, Sir, I have rendered any services, and if
+those services have merited any return, I shall ask no other reward
+than a compliance with this request.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 3d, 1783.
+
+ Sir,
+
+Upon consideration of the Act of Congress, of the 28th of April[15]
+and 2d instant, I have determined to comply with their views. But I
+pray it may be understood, that my continuance in office is limited to
+the particular object of fulfilling my present engagements, and those
+which the necessity of our affairs may compel me to form. Let me
+entreat your Excellency to inform Congress, that I entertain a proper
+sense of their assurance of firm support, and that in a reliance on it
+I shall continue my zealous exertions for the service of the United
+States.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ [15] Requesting Mr Morris's continuance in office.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, May 6th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose to your Excellency the copy of an Act
+of Congress of the 2d instant. I shall in consequence thereof address
+some special despatches to Dr Franklin, by a packet boat, which I will
+communicate to your Excellency, and pray you to write to your Court on
+the subject of them.
+
+In the meantime, I beg leave to mention to you, Sir, that if, (as I am
+informed,) the administration of your army have more money in this
+country than they have immediate occasion for, it would greatly
+facilitate my operations to be possessed of it. What I have to propose
+on the subject is, that whatever sum may be paid to me here, should be
+deducted from the three millions mentioned in the enclosed resolution,
+and be repaid from the amount of the existing requisitions on the
+States. But that if this arrangement should not be agreeable to the
+Court, then that it be paid in France or here, immediately after I
+shall have been made acquainted with his Majesty's pleasure, and in
+such way as shall be most agreeable to your Court.
+
+I present this matter to you, Sir, quite naked of arguments, to
+enforce the request. I am sure, that you will do what you conceive to
+be right; you know our situation, and I presume that you are
+acquainted with the orders given to your administration.
+
+ With great respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, May 12th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose to your Excellency, Acts of Congress
+of the 28th of April and 2d instant, together with a copy of my
+letters in answer. Permit me to assure you, Sir, that nothing would
+have induced me to continue in office, but a view of the public
+distresses. These distresses are much greater than can easily be
+conceived. I am not ignorant that attempts are made to infuse the
+pernicious idea that foreign aid is easily attainable, and that of the
+moneys already obtained a considerable part remains unappropriated. If
+such attempts were injurious only to my reputation, I should be
+entirely silent; but they are calculated to prevent exertions, and are
+therefore injurious to the public service. I most seriously assure
+you, that I do not expect success in the application to France,
+directed by the Act of the 2d instant, although my earnest endeavors
+shall not be wanting.
+
+If, however, it should prove successful, we shall only be enabled to
+draw resource from it at a future period, and the amount is to be
+replaced from the produce of existing requisitions on the States. With
+respect to the moneys, which have already been obtained abroad, I will
+not pretend to say what lights those gentlemen may have, who speak on
+the subject in a decisive tone, but I candidly acknowledge, that I
+have never yet been able to obtain a clear statement of them, which is
+the reason why no account of those moneys have yet been laid before
+the public. Those who know the confusion in our domestic transactions,
+from which we are just beginning to be extricated, will not be
+surprised that foreign transactions dependent on them should also be
+deranged. Neither can it be expected that in the midst of war the
+accounts could be so soon adjusted and transmitted as could be wished.
+I have written to obtain them, and a commissioner is employed in
+adjusting them. From the best statement and estimate which I have, I
+can assure you, that what remains at my disposition is extremely
+small.
+
+Your Excellency is doubtless informed, that at the close of last year,
+there was an anticipation on the public credit to the amount of above
+four hundred thousand dollars. This anticipation amounts to a greater
+sum now than it did then, and a very considerable addition must be
+made at the disbanding of the army. My mere assertion might, I am
+sensible, be drawn into doubt, but, Sir, there is evidence sufficient
+to convince every considerate man. The expenses of 1782 were above
+twentytwo hundred thousand dollars; those of 1783 are greater, by a
+month's pay made to the army, and by extending the contract for
+rations. Near five months of this year are already expired. One
+month's pay of the army is above two hundred and fifty thousand
+dollars, according to the establishment, and although the army is not
+completed to its establishment, yet the deficiency, being in private
+sentinels, will not form a great deduction.
+
+The conclusion from what I have stated is clear and irresistible;
+there is no reliance but on the energy of the States, and it is on
+that reliance that I rest for the affairs of my department. I shall
+not add anything to what is said in the resolutions of Congress, as
+inducements for, or to stimulate exertions, because I cannot suppose
+that the voice or the word of an individual servant will meet an
+attention which is not paid to the representation of the whole empire,
+expressed in its solemn Acts, and on the most urgent occasion, where
+wisdom, justice, and gratitude combine to enforce the requisition.
+
+ I am, Dear Sir, yours, &c.
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THOMAS BARCLAY, AGENT FOR SETTLING THE PUBLIC ACCOUNTS IN EUROPE.
+
+ Office of Finance, May 12th, 1783.
+
+ Sir,
+
+I have received from you many letters, which I beg leave to
+acknowledge.
+
+The bills drawn by order of Congress at a long sight on their
+Ministers, as well in Spain and Holland as in France, have involved
+the affairs of my Department in a labyrinth of confusion, from which I
+cannot extricate them, and I very much fear that many of these bills
+will have been twice paid. I know not what has been done respecting
+them, and only know, that ever since I entered into office they have
+not only plagued and perplexed me, but they have invariably consumed
+the resources on which I have formed a reliance. I have now determined
+to refer them all to Mr Grand for payment, but according to such
+arrangements as you shall take. You will be pleased, therefore, to
+consult with Dr Franklin, Mr Adams, Mr Laurens, and Mr Jay, to whom I
+write on the subject, as you will see by the enclosed letters.
+
+I enclose you an account from the treasury of what bills have been
+drawn on those gentlemen, and I am to request, that you will obtain as
+soon as possible an account of the payments made on them, as also of
+those which are still due, and take measures to have them paid by
+drafts for the purpose, if necessary, on Mr Grand, and provide against
+the double payments, which I fear. I have already ordered funds into
+Mr Grand's hands. Some I expect from you. As the credit I gave you has
+not been used, that alone furnishes a part, and I expect there will be
+considerable balances from the sales of the Alliance's prizes, of
+which I am daily expecting your accounts, &c. You will also, I
+suppose, have recovered the insurance you made, to the amount of forty
+thousand florins, which will be something. Every aid which you can
+bestow is necessary, for I fear those bills will plunge him into great
+difficulties, and the protest of any public bills, particularly any
+which I should draw, would reduce our affairs here to infinite
+distress.
+
+I am also to request of you, that you will cause as soon as possible
+all the accounts of the clothing, arms, and other supplies to be
+liquidated and transmitted, so that they may be properly adjusted
+here; for at present, that business is in a state of extreme
+confusion.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, May 12th, 1783.
+
+ Sir,
+
+The bills drawn by Congress in their necessities press very heavily
+upon me, and one of the greatest among many evils attending them is
+the confusion in which they have involved the affairs of my
+Department. I have not yet been able to learn how many of these bills
+have been paid nor how many remain due; neither am I without my fears,
+that some of them have received double payment.
+
+To bring at length some little degree of order into this chaos, after
+waiting till now for fuller light and information, I write on the
+subject to Mr Adams and Mr Jay, and send Mr Barclay, to whom I also
+write, a copy of the enclosed accounts, directing him to consult with
+your Excellency, and with them to transmit me an account of the bills
+paid, and of those remaining due, and to take measures for preventing
+double payments. The enclosed accounts will inform you, that of the
+bills drawn for interest and those for carrying on the current
+service, which have gone forward through the Loan Offices, amount, the
+first to one million six hundred and eightyfour thousand two hundred
+and seventyeight dollars; equal to eight millions four hundred and
+twentyone thousand three hundred and ninety livres; and the second to
+two hundred and eightysix thousand seven hundred and thirtythree and
+one third dollars; equal to one million four hundred and thirtythree
+thousand six hundred and sixtysix livres, six sous, and eight deniers.
+
+Let me entreat you, Sir, to forward these views as much as possible,
+for you will, I am sure, be sensible how necessary it is for me to
+know the exact state of our pecuniary affairs, lest on the one hand I
+should risk the public credit by an excess of drafts, or on the other
+leave their moneys unemployed, while they experience severe distress
+from the want.
+
+ I am, Sir, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO A COMMITTEE OF CONGRESS.
+
+ Office of Finance, May 15th, 1783.
+
+ Gentlemen,
+
+In consequence of the conversation which passed between us this
+morning, I shall give you the best information in my power as to the
+state of my Department and the resources I can command.
+
+You have in the enclosed paper an account of receipts and expenditures
+from the commencement of the year to the end of the last month; by
+which it appears, that there is an advance on credit to the amount of
+near six hundred thousand dollars, exclusive of what may appear in Mr
+Swanwick's accounts for the month of April. A large sum is also due on
+General Greene's drafts, and the contractors are to be paid in this
+month for the supplies of January last. At the end of this month,
+therefore, that anticipation must necessarily be much increased, as
+will appear from the slightest reflection after what is to be said of
+our resources.
+
+These are either foreign or domestic. As to the first, I enclose the
+copy of the last letter I have received from Mr Grand, and I have to
+add to what is contained in that letter, that the day it was received,
+my drafts on him, over and above those mentioned in it, amounted to
+three millions forty thousand two hundred and seventyeight livres. I
+have directed, therefore, Mr Barclay to pay over to Mr Grand any
+moneys, which may be in his possession, and I have directed Messrs
+Willink & Co. of Amsterdam to do the same, after deducting what may be
+necessary to pay the interest of their loan falling due the 1st of
+June next. But as I have no accounts of how much has been borrowed
+since the end of January, and as all which had been borrowed before
+was disposed of, I cannot determine how far they can come in aid of Mr
+Grand. Neither can I tell until the receipt of his accounts what aid
+he may stand in need of. In these circumstances I am obliged to leave
+about eighteen hundred thousand livres (which remain of a sum placed
+in the hands of Messrs Le Couteulx for answering drafts intended
+through Havana,) to answer any deficiency of other funds to pay my
+drafts on Mr Grand. These then, Gentlemen, are all the foreign
+resources, except what the French Court may advance on the late
+resolutions of Congress, and you will see by the enclosed translation
+of a letter from the Minister of France, what little hope is to be
+entertained from that quarter.
+
+Our domestic resources are twofold. First, certain goods and other
+property, such as horses, wagons, &c. These latter will produce very
+little, and the former are, by the peace, very much reduced in value,
+and from the nature of the goods themselves they are chiefly
+unsaleable. Very little reliance, therefore, can be placed on this
+first dependence. The amount I cannot possibly ascertain, for I do not
+yet know, and cannot until the opening of them now in hand shall be
+completed, the kinds, quality and situation. Some are damaged, those
+which were deemed most saleable have been tried at vendue, and went
+under the first cost, and much the greater part will certainly not
+sell at a fourth of their value.
+
+The only remaining resource is in the taxes, and what they may amount
+to, it is impossible to tell. But you have enclosed an account of what
+they yielded the four first months of this year, and you will see from
+thence, that if all expense had ceased on the first day of this month,
+the anticipations already made would not have been absorbed by the
+same rate of taxation in eight months more.
+
+Now then, Gentlemen, you will please to consider, that if your army is
+kept together they will consume as much in one month as the taxes will
+produce in two, and probably much more; to make them three months' pay
+will require I suppose at least six hundred thousand dollars, and
+every day they continue in the field lessens the practicability of
+sending them home satisfied. The anticipations of revenue are
+threefold, two of which appear as to their effects in the public
+accounts, and one very considerable one, though it produces great
+relief, is not seen. It consists in the drawing of bills on me for the
+public service by different persons and at different usances. I
+imagine that these amount at the present moment to one hundred
+thousand dollars. The other anticipations consist in loans from the
+bank on the issuing of my own notes. As to the first of these it is
+limited in its nature by the capital of the bank, which being small
+will not admit of great deductions, and it depends much upon
+circumstances, whether the bank will go to the extent which they may
+go. If they find the revenues increasing and the expenses diminishing,
+they will, but otherwise, they certainly will not. As to the notes I
+issue, and which form the greatest part of my anticipations, these
+have also a certain limit, to exceed which would be fatal. I must not
+so extend that circulation, as that I shall be unable to pay them when
+presented, for that would totally destroy their credit, and, of
+course, their utility.
+
+If anything of this sort should take place before the army are
+disbanded, you will see at once that they could be fed no longer, and
+must of course disband themselves. I will not dwell on the
+consequences, but I will draw one clear conclusion, which you have,
+doubtless, by this time anticipated, viz. that unless they are
+disbanded immediately, the means of paying them, even with paper, will
+be gone. And this sentiment I have not delivered to you, but to a
+former committee, as well as to many individual members of Congress.
+
+But when I speak of disbanding the army, I beg to be understood as
+meaning to reserve a sufficient garrison for West Point; and on this
+subject I pray to be indulged in a view of our political and military
+situation as far as relates to this capital object of my department.
+And first, as to our political situation, I conceive that we are at
+peace. It is true, that the definitive treaty is not, that we know of,
+completed; but it is equally true, that all the other belligerent
+powers have been disarming for mouths past, and I presume they are at
+least as well acquainted with the state of things as we are. To
+express doubts of the sincerity of Britain on this subject is, I know,
+a fashionable, but in my opinion a very foolish language. We have the
+best evidence of their sincerity, which the nature of things will
+admit, for we know they are unable to carry on the war, and we see and
+feel, that they are passing every act, and doing everything in their
+power to conciliate our affections. Expressions of doubts as to their
+sincerity, if intended to foster enmity against them, will fail of the
+effect and produce the direct contrary, for everybody will soon learn
+to consider them as unjustly suspected, and their Ministers will take
+care to inculcate and enforce the sentiment.
+
+As to our military situation some of the troops in the southern States
+have already mutinied, the principal part of them are ordered away,
+and since the Floridas are ceded to Spain it follows, that those
+troops which may remain in the southern States will have to operate
+against the Spaniards if they operate at all. So that every man,
+except those under the General's immediate command and the little
+garrison of Fort Pitt, are in fact disbanded to every purpose but that
+of expense.
+
+The prisoners are some of them going, and the rest gone into New York,
+so that in a few days the enemy will be able to do everything which
+they could do if the greater part of our army were gone home. For they
+could not take West Point if it is properly garrisoned, and they could
+ravage the country in spite of our army when theirs shall be all
+collected.
+
+Our situation, therefore, seems to be this. We are keeping up an army
+at a great expense, and very much against their inclinations for a
+mere punctilio, and by that means incapacitating ourselves from
+performing what they begin to consider as a kind of engagement taken
+with them. I shall detain you no longer on this subject, but must
+repeat one observation, which is, that unless the far greater part of
+our expenses be immediately curtailed, the object Congress had in
+view by their resolutions of the 2d instant, cannot possibly be
+accomplished.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.[16]
+
+ [16] _May 13th._ Mr Gorham and Mr Hamilton, two members of a
+ committee of Congress for conferring with the Secretary of War,
+ the Secretary of Foreign Affairs, and myself, relative to
+ disbanding the army, met this morning. I opened the business, and
+ stated very fully the necessity of disbanding the army, in order
+ to get clear of an expense, which our resources are unequal to,
+ and which cannot be supported many months at any rate, but which,
+ if continued any longer, will consume the only means now left for
+ making a payment to the army when disbanded. The gentlemen of the
+ committee seemed perfectly satisfied of the necessity of
+ disbanding the army on principles of economy, but opposed to it on
+ principles of policy, in which the Secretary of Foreign Affairs
+ joins with them. The Secretary at War said little, and I related
+ an observation which he had made to me a few days before in favor
+ of disbanding the army directly, viz.; that they would not
+ continue in the field under their present enlistments, if the war
+ were to break out again; but that in such a case we must begin
+ entirely anew. The conclusion of the conference is, that I am to
+ state the reasons resulting from the situation of our finances,
+ which induce an immediate disbanding of the army, in writing to
+ the committee. _Diary._
+
+ * * * * *
+
+TO MAJOR GENERAL GREENE.
+
+ Office of Finance, May 16th, 1783.
+
+ Sir,
+
+Your bills on me fall very heavy, and I am in hourly apprehensions of
+being unable to pay them. You will see, therefore, that it is utterly
+impossible to send money for your military chest. I hope, however, and
+expect, that the sales of the public property will provide you more
+money than you stand in need of. I know not what orders the Secretary
+at War may give, but if they be agreeable to my wishes, they will
+contain an absolute dismission of all the troops in your quarter, for
+I can see no use in keeping them together.
+
+The attacks made upon you, might reconcile me to those which I
+experience, for they show that no conduct, however just, can possibly
+escape censure. It is far easier to be faultless than blameless, and
+the experience I have had in this way leads me to a total disregard of
+all things, so far as conduct is to be determined. But I must at the
+same time acknowledge, that I cannot help feeling indignation whenever
+they are made. They are for the most part mere ebullition of low
+malice, and if rightly understood contain the most indisputable
+acknowledgement of merit. Let this reflection console you for what you
+have already experienced and what may yet be behind.
+
+I thank you for the sentiments you express in my favor. You will have
+seen, that contrary to every private interest and sentiment I have
+agreed to a longer continuation in office. And you may rest assured,
+that nothing but a view of the public necessities should have induced
+me still longer to bear up under the burden. Not because I regard the
+calumnies I meet with, for although they excite my feelings they shall
+not influence my conduct, but because I do not think those measures
+are pursued, which are calculated for the happiness of this country,
+and I do not wish to participate in any others.
+
+There are many persons in the Southern States, who think the measures
+of Congress and of their servants are directed to the particular good
+of Pennsylvania, and more who pretend to think so. It is a little
+history of human weakness and I might say meanness, the manner in
+which antipathies have been imbibed and propagated with respect to my
+department. One sample will show the texture of the whole piece. While
+I was in advance, not only my credit but every shilling of my own
+money, and all which I could obtain from my friends, to support the
+important expedition against Yorktown, much offence was taken that I
+did not minister relief to the officers taken prisoners at Charleston.
+I felt their distresses as sincerely as any man could do, but it was
+impossible to afford relief.
+
+Before I close the letter, I must again repeat my solicitude on the
+score of your bills, which are coming in upon me so fast, that the
+means of paying them must, I fear, be deficient. Take care, therefore,
+to draw as little and at as long sight as possible.
+
+ I am, Sir, your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, May 26th, 1783.
+
+ Sir,
+
+I have now before me your letters of the 14th and 23d of December,
+which are the last I have received. Enclosed you have a letter from me
+to the Minister of France, with his answer of the 14th of March, on
+the subject of the delay which happened in transmitting his
+despatches. You will see by these, that Lieutenant Barney was not to
+blame.
+
+Your bills in favor of M. de Lauzun have not yet appeared, or they
+should have been duly honored. That gentleman has since left the
+country, and therefore it is possible that the bills may not come.
+
+The reflections you make, as well on the nature of public credit, as
+on the inattention of the several States, are just and unanswerable;
+but in what country of the world shall we find a nation willing to tax
+themselves. The language of panegyric has held forth the English as
+such a nation, but certainly if our Legislatures were subject to like
+influence with theirs, we might preserve the form, but we should
+already have lost the substance of freedom. Time, reason, argument,
+and above all, that kind of conviction, which arises from feeling, are
+necessary to the establishment of our revenues, and the consolidation
+of our union. Both of these appear to me essential to our public
+happiness; but our ideas, as you well know, are frequently the result
+rather of habit than reflection, so that numbers who might think
+justly upon these subjects, have been early estranged from the modes
+and means of considering them properly.
+
+I am in the hourly wish and expectation of hearing from you, and
+sincerely hope it may be soon. Believe me, I pray, with esteem and
+respect, yours, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, May 26th, 1783.
+
+ Sir,
+
+By the enclosed Acts of the 28th of April and 2d of May, with the copy
+of my letter to Congress of the 3d of May, you will perceive that I am
+to continue somewhat longer in the Superintendence of our Finances.
+Be assured, Sir, that nothing but a clear view of our distresses could
+have induced my consent. I must at the same time acknowledge, that the
+distresses we experience, arise from our own misconduct. If the
+resources of this country were drawn forth, they would be amply
+sufficient, but this is not the case. Congress have not authority
+equal to the object, and their influence is greatly lessened by their
+evident incapacity to do justice.
+
+This is but a melancholy introduction to the request contained in the
+Act of the 2d instant. But I shall not be guilty of falsehood, nor
+will I intentionally deceive you, or put you in the necessity of
+deceiving others. My official situation compels me to do things, which
+I would certainly avoid under any other circumstances. Nothing should
+induce me in my private character to make such applications for money
+as I am obliged to in my public character. I know and feel that you
+must be in a disagreeable situation on this subject. I can anticipate
+the answers to all your requests; and I know you may be asked for
+payment when you ask for loans. Yet, Sir, I must desire you to repeat
+your applications. My only hope arises from the belief, that as the
+King's expenses are much lessened, he may be able to comply with his
+gracious intentions towards America.
+
+And the only inducement I can offer is the assurance that the taxes
+already called for, shall be appropriated as fast as other
+indispensable services will admit, to the replacing of what the Court
+may advance.
+
+Our situation is shortly this. The army expect a payment, which will
+amount to about seven hundred thousand dollars. I am already above
+half a million dollars in advance of our resources, by paper
+anticipation. I must increase this anticipation immediately to pay
+moneys due on contracts for feeding our army; and I must make them the
+expected payment by notes to be discharged at a distant day. Now, Sir,
+if these notes are not satisfied when they become due, the little
+credit which remains to this country must fall, and the little
+authority dependent on it must fall too. Under such circumstances it
+is, that you are to ask aid for the United States. If it can be
+obtained, I shall consider the obligation as being in some degree
+personal to myself, and I shall certainly exert myself for the
+repayment. You will be so kind, Sir, as to ship on board the
+Washington eighteen hundred thousand livres, but if the loan be not
+obtained, I must entreat you will give me the earliest possible
+information of the refusal.
+
+I shall communicate this letter to the Minister of his Most Christian
+Majesty, and request him to write to the Count de Vergennes, on the
+subject of it. Believe me; I pray, with sincere and respectful esteem,
+&c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, May 27th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose for your Excellency's perusal, the
+copy of a letter to Dr Franklin, which will go by the Washington
+packet, on Sunday next. I am to request, that your Excellency will
+write on the subject of it to the Count de Vergennes. You will
+observe, Sir, that I have made no mention whatever of the reasons,
+which might induce France to grant the aid requested. Every argument,
+which can apply to the interests of your Court, will come more
+properly, as well as more forcibly from your pen than from mine. I
+shall only ask, that you will give your own sentiments and views of
+our circumstances and situation. These will, I doubt not, be the most
+powerful reasons in support of the present application.
+
+ I am, Sir, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, May 29th, 1783.
+
+ Dear Sir,
+
+I am now to acknowledge the receipt of your Excellency's letter of the
+8th instant. I have not answered it sooner, because until now it has
+not been in my power to answer it satisfactorily.
+
+By some designing men my resignation of office (grounded on a clear
+conviction, that unless something was done to support public credit,
+very pernicious consequences would follow) was misconstrued. It was
+represented as a factious desire to raise civil commotions. It was
+said that the army were to be employed as the instruments to promote
+flagitious interested views. These found admittance to minds, which
+should forever have been shut against them. We now rest on the event,
+to determine whether a sincere regard to public justice and public
+interest, or a sinister respect to my own private emolument were the
+influential motives of my conduct. I am a very mistaken man, if time
+and experience shall not demonstrate, that the interests of the army
+and of the public creditors are given up. But I mention these things
+only to you in confidence, for it shall not again be supposed that I
+am the leader of sedition.
+
+Having done what was in my power to establish those plans, which
+appeared necessary for doing justice to all, and affording relief to
+our army in particular, I have acquitted what was the first and
+greatest duty. When it appeared that other modes were to be pursued, I
+would gladly have departed in peace, but it has been thought that my
+further agency was necessary, to procure for the army that species of
+relief, which they seemed to desire. The factious designing man, who
+was to have lighted up the flames of mutiny and sedition, has
+undertaken, a most arduous and perilous business to save this country
+from those convulsions, which her negligence had hazarded. This became
+a duty when the first duty to justice was performed, and this shall be
+performed also. It is now above a month since the committee conferred
+with me on that subject, and I then told them that no payment could be
+made to the army but by means of a paper anticipation, and unless our
+expenditures were immediately and considerably reduced, even that
+could not be done. Our expenditures have nevertheless been continued,
+and our revenue lessens, the States growing more and more remiss in
+their collections. The consequence is, that I cannot make payment in
+the manner first intended. The notes issued for this purpose would
+have been payable at two, four, and six months from the date, but at
+present they will all be at six months, and even that will soon become
+impracticable, unless our expenses be immediately curtailed.
+
+I shall cause such notes to be issued for three months' pay to the
+army, and I must entreat, Sir, that every influence be used with the
+States to absorb them, together with my other engagements, by
+taxation. The present collections are most shameful, and afford but a
+sad prospect to all those who are dependent upon them.
+
+I hope, my Dear Sir, that the state of public affairs will soon permit
+you to lay down the cares of your painful office. I should in two days
+have been liberated from mine, if a desire to free you from your
+embarrassments, and procure some little relief to your army, had not
+induced a continuance of them. But it must always be remembered, that
+this continuance is distinct from any idea, which may be connected
+with the plans for funding our public debts. As I do not approve of,
+so I cannot be responsible for them. Neither will I involve myself in
+endless details, which must terminate in disappointment.
+
+ With great respect, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, June 5th, 1783.
+
+ Sir,
+
+Congress having directed a very considerable part of the army to be
+sent home on furlough, I am pressed exceedingly to make a payment of
+three months' wages, and I am very desirous to accomplish it, but the
+want of money compels me to an anticipation on the taxes by making
+this payment in notes. To render this mode tolerably just or useful,
+the notes must be punctually discharged when they fall due, and my
+dependence must be on the money to be received of the several States,
+on the requisitions for the last and present year. I hope the urgency
+of the case will produce the desired exertions, and fully enable me
+to preserve the credit and honor of the federal government.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, July 11th, 1783.
+
+ Sir,
+
+I do myself the honor to enclose to your Excellency, a state of the
+public accounts, balanced on the last day of June, 1783. A view of
+these accounts will render it unnecessary to make many observations.
+
+On the States I am to rely for payment of the anticipations amounting,
+as you will see, to more than a million. And you will observe, that
+this great anticipation has been made for that service, which all
+affect to have so much at heart. A payment to the American army. If
+they had received no pay during the year 1783, I might perhaps have
+been spared the necessity of this application, because it is probable
+that the taxes even as they are now collected might have absorbed such
+anticipations as I should then have been obliged to make.
+
+Much pains have been taken to inculcate the idea that we have funds in
+Europe. Those funds which we had there are exhausted, and the general
+apprehension that no proper funds here will be provided has cut off
+all hopes from that quarter.
+
+The question has frequently and industriously been asked, what becomes
+of the moneys which are paid in taxes. I have furnished the means of
+judging, as to those which reach the public treasury, to every man
+employed in the administration of government in the several States,
+for my accounts have been regularly transmitted. And I would not have
+mentioned the insinuation had it not been for the purpose of
+observing, that it is incumbent on all those who are desirous of
+forwarding a collection of taxes to show a fair appropriation, and not
+suffer groundless clamors to disturb the public mind.
+
+It has been said that there is no necessity of urging the collection
+of taxes now, because the notes given to the army are not payable in
+less than six months. This again is an assertion whose mischievous
+operation is levelled at the very vitals of our credit. One month of
+that time is already expired with respect to all those notes which
+have been already issued. They are not the only notes in circulation.
+Notes are not the only modes of anticipation which have been adopted.
+And it is a serious fact, that unless more vigorous measures take
+place, the credit of all notes and of everything else must be
+destroyed. But this is not all. Supposing for a moment, that the notes
+given to our army were the only object whose credit was to be attended
+to. Can any reasonable man imagine, that they could be of any use if
+the payment were to depend on taxes which are not to be collected
+until the notes are due.
+
+I have not been wanting on my part in pointing out from time to time,
+the mischiefs which must ensue from neglect. The applications have met
+with inattention, which personally I have disregarded, but which I
+could not but feel, from the consequences involved in it. Again, in
+compliance with the duty I owe to the United States, I call for that
+aid which they are entitled to. And on this occasion I take leave to
+observe, that the moment is very fast approaching which is to
+determine whether America is entitled to the appellation of just, or
+whether those who have constantly aspersed her character are to be
+believed.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+REPORT TO CONGRESS RELATIVE TO THE PAY OF THE ARMY.
+
+ Office of Finance, July 15th, 1783.
+
+The Superintendent of Finance, to whom was referred, on the 11th
+instant, the extract of a report, with order to report thereon, and
+also to report what measures he has taken relative to the pay of the
+army, begs leave to report,
+
+That the receivers in the several States have long since been
+instructed, to take all notes signed by the Superintendent of Finance
+in payment of the taxes, and also, take up all such notes whenever
+tendered, if they have public money in their hands.
+
+That when it was in contemplation to make a payment to the army, the
+committee who conferred with the Superintendent on that subject were
+informed, that it could only be done in notes, and that in order to
+support the credit of such notes, it would not be sufficient that they
+should only be receivable in taxes in some particular State, but that
+the receivers throughout the States must receive and exchange them, in
+like manner with other notes issued from the Office of Finance.
+
+That the instruction to the receivers is generally known to all those
+who are concerned in the business they relate to, and in consequence
+thereof the receivers are in the constant practice of receiving and
+exchanging notes signed by the Superintendent of Finance, which they
+duly remit to the treasury.
+
+That whenever they shall find it difficult to obtain such notes for
+the purpose of making their remittances (which is not likely to be the
+case in any short period,) they will naturally advertise to obtain
+them. Wherefore, any general notification, such as is contained in the
+extract committed, will be unnecessary.
+
+That if such publication as is recommended were confined (as seems to
+have been the idea,) to those notes which have been issued for payment
+of the army, it would destroy what little credit is at present reposed
+in the public servants, and by bringing home immediately all other
+notes which have been issued, render it impracticable to discharge
+them; in which case the notes issued to the army could be of no use,
+because nobody would take them. The importance of preserving credit in
+this respect, will appear from the preamble to an Act of Congress of
+the 2d of May last.
+
+That if (as is most probable) the publication were intended to relate
+alike to all notes, it is a thing which is already well known, and
+therefore the expense of printing may be spared.
+
+With respect to the measures taken relative to paying the army, he
+begs leave to report, that upon an estimate from the War Office, he
+signed warrants for four months' pay of the present year, whereof one
+month's pay has been made to the noncommissioned officers and privates
+in specie, and to the officers in notes, and three months' pay to both
+officers and soldiers in notes. That the Paymaster has not yet
+received all the notes necessary for the purpose, but has in his hands
+as many as he wants for the present.
+
+ All which is humbly submitted.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, July 18th, 1783.
+
+ Sir,
+
+I would sooner have replied to the Act of Congress of the 11th
+instant, if I had not been prevented by other business, which required
+immediate attention. The Act recites a representation to Congress,
+that certain parts of the army retired on furlough have not received
+the pay, &c. I will not contest the truth of this representation. But
+when I come to state such facts as are within my knowledge, I shall
+appeal to the candor of Congress how far that representation will
+warrant a censure against me.
+
+I am directed to complete without delay the same payment to the
+officers and soldiers of the Massachusetts line which were ordered to
+be paid to the army at large. Congress will be pleased to observe,
+that they have passed no particular order to which the above
+resolution can refer. The general Acts which relate to paying our army
+from the _authority_ on which the payment alluded to was made.
+Supposing, however, that by the resolution is meant three months' pay,
+in notes payable at six months from the date; I must take liberty to
+remind Congress, that completing the payment to any part of the army
+is not the business of my department, but of the Paymaster General.
+All which can depend on me, is to put those notes into his hands when
+called for, and this has been done as fast as was possible.
+
+I am directed to report the reasons why the troops lately furloughed
+did not receive a part of their pay previous thereto. Not being able,
+Sir, to make so full report on this subject as I could wish, I have
+written a letter to the Paymaster General, of which the enclosure,
+number one, is a copy. The answer to this letter shall be transmitted
+as soon as received. The facts relating to that matter which are
+within my knowledge are the following.
+
+On the 9th day of April last, a committee of Congress did me the honor
+to call, for the purpose of consulting on certain propositions
+contained in a letter from the Commander in Chief to an honorable
+member from Virginia. One of these propositions was to make the army
+three months' pay previous to their disbandment. My reply was, an
+acknowledgement that the claim was very reasonable, a declaration that
+I doubted of the practicability, and a prayer to be indulged with time
+for consideration. On the 14th of April I wrote a letter to that
+committee, in which I had the honor to inform them, that three months'
+pay amounted, according to the estimates, to seven hundred and fifty
+thousand dollars. That to supply so large a sum was utterly
+impracticable, or indeed to obtain any considerable part. That the
+most which could be done was to risk a large paper anticipation. That
+to render the arrangements for that purpose effectual in an official
+point of view would be a work of time. That the period of my official
+existence was nearly arrived; that disbanding the army in a manner
+satisfactory to them and the country was doubtless desirable. That I
+believed it to be practicable, although extremely difficult, and that
+I should be ready at all times to give my advice and assistance to
+those who might be charged with that delicate and perilous
+undertaking.
+
+On the 22d of April, Congress were pleased to appoint a committee to
+confer with me relative to my continuance in office. I told that
+honorable committee, that the late advices from Europe gave a new
+complexion to our affairs, and prayed some further time for the
+receipt of intelligence. On the 24th of April, I had the honor to
+inform the committee, that if Congress thought my assistance essential
+toward completing such payment to the army as might be agreed on, &c.
+I would consent to a further continuance in office for that purpose;
+but prayed to be excused from that service if Congress could otherwise
+accomplish their views.
+
+On the 28th of April, Congress were pleased to resolve, that the
+public service _required my continuance in office_ till arrangements
+for the reduction of the army could be made, and the engagements taken
+in consequence, as well as those already taken, should be completed.
+On the 2d day of May Congress were pleased to pass some further
+resolutions on the same subject, which I shall shortly have occasion
+to mention. On the 3d of May I had the honor to entreat of your
+Excellency, that you would inform Congress that I entertained a proper
+sense of their assurance of firm support, and _in reliance on them_
+should continue my zealous exertions for the service of the United
+States.
+
+On the 9th of May, having had a conference with the Minister of War,
+on the resolutions of the 7th and 28th of April and 2d of May, we took
+the liberty to request, that a committee might be appointed to confer
+with us on the subject of those resolutions. On the 15th of May, two
+gentlemen of that committee did us the honor of the conference
+requested. In which it was stated, _as impracticable to make any
+payment to the army, unless our expenditures were immediately and
+considerably reduced_. The committee, however, being desirous to have
+the situation of things stated to them in writing, I wrote them a
+letter on the same day, showing, that on the last day of April we
+were in advance of our resources, to the amount of six hundred
+thousand dollars; that our foreign resources were exhausted; that our
+domestic resources as far as they consisted in sales of public
+property, were considerably reduced; that as far as they consisted in
+the produce of taxes they were extremely slender and precarious; that
+the monthly consumption of the army was at least double the monthly
+produce of the taxes; that if they were kept longer in the field, they
+would consume every resource by which the payment could possibly be
+made or hazarded. And, therefore, that _unless the far greater part of
+our expenses was immediately curtailed, the object Congress had in
+view by their resolutions of the 2d of May could not possibly be
+accomplished_. This letter was accompanied with the necessary
+documents to establish the positions contained in it.
+
+On the 26th of May it was resolved, that the Commander in Chief should
+be instructed to grant furloughs, &c. And this resolution was
+communicated to me on the 27th. Thus, Sir, from the 9th day of April,
+when this matter was first proposed, until the 27th day of May, when
+the final determinations of Congress were made known, my conduct was
+of necessity suspended.
+
+On the 29th of May I informed the Commander in Chief of my
+determination to issue notes payable in six months from the date, for
+three months pay, and explained to him the reasons why I could not
+make the payment in any other mode. In reply to this, I received on
+the 5th of June a letter from the General, dated the 3d, which was
+brought by express and urged the transmission of a part of those
+notes. I immediately wrote an answer, in which I informed him that on
+Saturday evening, the 31st of May, the paper arrived from the maker;
+that on Monday, the 2d of June, it was delivered to the printer; that
+he had agreed to send the first parcel of notes to me on Friday, the
+6th of June; and that as soon as I could sign them they should be
+delivered to the Paymaster, to be sent forward. On the 7th of June the
+Paymaster received fifty thousand dollars, on the 9th fifty thousand
+dollars, and on the 13th one hundred thousand; so that in six days I
+signed six thousand notes, besides the other business of my office.
+That paper made on purpose for this business was necessary no man can
+doubt, or if it could have been doubted the recent attempt to
+counterfeit these notes is a sufficient proof. That the printing was
+to take place before the signing must be admitted. The only delay
+therefore with which I can be chargeable must be in the signing of
+them, and upon that subject I shall say nothing. If by any means a
+delay happened after the notes were delivered into the pay office, I
+presume that the Paymaster General will be able to account for it. I
+shall only add, that he has received half a million of these notes, as
+will appear by the enclosed note of the payments number two.
+
+I am also directed, Sir, to report the manner in which I expect to
+redeem the notes in question. Congress will be pleased to recollect,
+that the issuing of those notes arose from a proposition made by the
+General and warmly adopted by them. That although I was very desirous
+of gratifying the wishes of the army, I had great apprehensions as to
+the ability of doing it. And that from a view of the scantiness of our
+resources I felt extreme reluctance in giving my consent. As to the
+means of redeeming the notes, permit me to refer Congress to the
+letters which I had the honor of writing to your Excellency on the
+17th of March and 1st of May; to my correspondence with the honorable
+committee of Congress on the 14th and 16th of April, copies whereof
+are enclosed in the paper number three; and to a circular letter to
+the States of the 12th of May, of which a copy is enclosed in the
+paper number four.
+
+Permit me also to refer to the various accounts which have been
+rendered to Congress of the state of my department; and to these let
+me add what appears on their own minutes. On the 2d of May they
+declared it to be their desire, when the reduction of the army should
+take place, to enable the officers and soldiers to return to their
+respective homes with convenience and satisfaction; _for which purpose
+it would be indispensable to advance them a part of their pay_. They
+declared further, that there were many other engagements for which the
+public faith was pledged, and _the punctual performance of which was
+essential to the credit of the United States_. And they further
+declared, that _neither of these important objects could be effected
+without the vigorous exertions of the several States in the collection
+of taxes_. From a conviction of these facts Congress were pleased to
+call upon the respective States in the most earnest manner, to forward
+the collection of taxes. As an additional means to accomplish the same
+end, they were pleased to apply for a further loan of three millions
+of livres to his Most Christian Majesty. And they resolved, that the
+Superintendent of Finance be directed to take the necessary
+arrangements for carrying the views of Congress into execution. And
+that he be assured of their firm support toward fulfilling the
+engagements he has already taken, or may take, on the public account
+during his continuance in office.
+
+Having already so fully stated the situation of my department, I have
+only to say in answer to the order I have received, that I rely on the
+firm support of Congress, solemnly pledged to me (for the purpose of
+inducing my continuance in office) to redeem those notes issued to the
+army, as well as to fulfil all other engagements which I have taken or
+may take on the public account.
+
+Before I close this letter, I beg leave to assign my reason for
+reducing my report to that form. It is because I had rather bear the
+censure contained in the acts of the 11th of July, however painful,
+than place on the minutes of Congress anything which may hold up the
+idea of precipitancy on their part.
+
+ With perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, July 25th, 1783.
+
+ Sir,
+
+I have received your letter of the 15th of April, covering a statement
+of your accounts, by which it appears that my bills on you exceed the
+sum which you will have to receive from the Court on this year's
+subsidy. This circumstance gives me great pain, for it would be very
+hard if after supporting our credit in Europe during the war, it
+should be fatally ruined on the establishment of peace. You will have
+learned by my former letters, that I had taken measures to throw into
+your hands all the moneys, which I could by any means command for that
+purpose. I am still in hopes, that the Court will make a further
+effort in our favor, but at any rate if your payments should exceed
+your funds, I must replace your advances by remittances from hence. I
+hope that our affairs will soon take such a form, solidity and
+establishment, as to render all things perfectly easy, and the
+conclusion of the definitive treaty, which will enable us to reduce
+our expenditures, added to the advantages of a general and lucrative
+commerce, cannot fail of absorbing what few engagements may be at
+present unprovided for. On the whole, my Dear Sir, I have only to say
+my bills must be honored, and your zeal in favor of America must be
+rewarded.
+
+ With sincere esteem, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, July 28th, 1783.
+
+ Sir,
+
+Conceiving it to be almost certain, that a definitive treaty of peace
+is concluded, I am bound to request the attention of Congress towards
+reducing the expenses. It is unnecessary to repeat, that our resources
+for absorbing the anticipations, depend on the produce of taxation.
+There is no hope of fulfilling the public engagements, but by a strict
+economy, for there is no evidence of that energy among the States,
+which the Act of Congress of the 2d of May was framed to inspire. Let
+me, therefore, repeat my request, _that the public expenses be greatly
+reduced_. The number of men which it may be necessary to keep in the
+field, I cannot presume to name, as it is a military question; but it
+would best consist with the present state of my department to disband
+the whole.
+
+Your Excellency will easily conceive the situation to which I am
+driven when I am compelled to withhold assent to a moderate demand of
+the Secretary at War, for building magazines to preserve the public
+stores. It is certainly of importance, that arsenals should be erected
+in such proper places as to provide for the public defence, but
+reasons against advancing money are incontrovertible. Congress knew
+the extent of my engagements, for the discharging of which they have
+solemnly pledged themselves. Congress know also, that the States do
+not furnish means. They will perceive, therefore, that I should
+wantonly sacrifice their honor and dignity, should I form new
+engagements before the old are satisfied.
+
+I know, Sir, that many of the stores may be wasted and destroyed for
+the want of magazines, and that if they are sold it will be to a
+considerable loss. But much loss must be added to the mass of injuries
+America has already sustained by not complying with the requisitions
+of Congress. It is a loss, which in its consequences must fall upon
+the States themselves, who are the immediate authors of it; but if the
+engagements already taken are violated by applying money to other
+purposes, then the honor of Congress will be sacrificed, together with
+the property of those who relied on it.
+
+I should not, Sir, have dwelt so long on this small circumstance, if
+it did not serve to impress the true object of my letter, a _reduction
+of national expense_. And here let me notice what has often been
+mentioned, the expense of the civil list. If in this general term of
+civil list are comprehended the public servants abroad, I freely
+acknowledge my opinion, that it might be curtailed. But the foreign
+affairs not being within my line, this sentiment is expressed with all
+possible deference.
+
+Our domestic civil list consists of two parts. First, that which is
+engaged in settling and adjusting old accounts; and secondly, that
+which is employed in present objects. The first is rendered necessary
+by the confusions which arose before regular systems were established;
+but it is of a temporary nature, and can never again take place,
+unless our affairs are suffered to relapse into that irregularity from
+which they are beginning to emerge. The second, I believe, consists of
+as few as were ever appointed to perform the business of a nation. For
+what relates to the expense of both, I must observe, that those who
+labor for the public are at least to be subsisted; and the proof that
+their salaries do not amount to more than a decent subsistence, is the
+difficulty with which men qualified to fill the several offices can be
+prevailed on to accept them. Shortly after my appointment, a special
+order was passed to defray the expenses of the civil list; but should
+Congress think proper to repeal that order, I will suspend the
+payment, and apply the money to take up my notes. But whether the
+gentlemen of the civil list will continue their services after they
+know that their salaries are to be withheld, is a question which I
+shall not agitate.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE GOVERNORS OF THE STATES.
+
+ Office of Finance, July 28th, 1783.
+
+ Sir,
+
+Having already transmitted the public accounts from the commencement
+of my administration to the first day of this month, I shall not
+trouble your Excellency with a repetition of them. But I must pray
+your indulgence while I make a few observations. Perhaps this letter
+may contain too much of egotism, but your candor will excuse me when
+the motive is known. If I have rendered any services to the United
+States, they have been derived from the generous confidence of my
+countrymen. This confidence must not be abused, and if it be lost my
+utility is at an end.
+
+The accounts will show to any informed and reflecting mind, that the
+public moneys were economically applied; and if farther proof were
+necessary I could appeal to the honorable Delegates in Congress, who
+have every opportunity of investigation. I might also appeal to the
+clamors against me for opposing claims I could not properly comply
+with. Long have I been the object of enmities derived from that
+origin. I have, therefore, the right to consider such clamors and such
+enmities as the confession and the evidence of my care and attention.
+
+But, Sir, from the same accounts it will appear, that on the 30th day
+of June last, my payments had exceeded the amount of my receipts by
+more than a million of dollars. How, indeed, could it be otherwise,
+when all the taxes brought into the treasury since 1781 did not amount
+to seven hundred and fifty thousand dollars? I have been impelled to
+this heavy anticipation by an earnest desire to relieve our army, by
+the General's warm representations on the subject, and above all, by
+the directions of Congress and their assurance of support. The
+enclosed letter to them will show my desire to reduce our expenses.
+But while I urge the reduction of expense it is equally my duty to
+urge an increase of revenue. If I have been a faithful steward of what
+was intrusted to me, if more became necessary than I ever received,
+and if urged by that necessity I have anticipated the receipts, surely
+I am in the strictest line of propriety when I loudly call for relief.
+Every one must know, that the paper I have circulated will lose its
+value, unless punctually redeemed. The several receivers are indeed
+instructed to exchange it; but what can that instruction avail, if
+specie be not placed in their hands for the purpose? And how can that
+be effected but by a vigorous collection of taxes?
+
+I know that my solicitude on this subject will be charged to improper
+motives. When I urge a reduction of expense it will be said, that I
+wish to impair the strength and lessen the respectability of our
+country. Far other wishes swell my bosom. But I have been driven into
+a conviction, that the necessity of strength, and the advantage of
+reputation, are not yet sufficiently felt and understood by all the
+members of our federal Union.
+
+My present call for taxes has also been anticipated by a slanderous
+report, that I have speculated on this very paper which I urge the
+redemption of. Most solemnly I declare, that I have never been
+concerned, directly or indirectly in any such speculation. If there be
+a man in the world who knows any instance to disprove what I say, let
+him step forth with the accusation. No, Sir, the object is in nowise a
+personal one to me; I only advocate the interest and reputation of
+America. If, with a view to injure me, the attempt is made to violate
+my engagements, the malice will be defeated; but at the same time let
+it be remembered, that the country, which will not support faithful
+servants, can never be faithfully served. Guilt and desperation will
+ever pant for scenes of tumult and disorder, office will ever excite
+envy, and malevolence delight in slanderous tales. Is it then to be
+wondered at if my foes are numerous? Believe me, Sir, if their
+attempts had only affected me and mine, they should have been received
+in the same silence, which has buried many other wrongs. But on the
+present occasion, it becomes my duty to delineate their baneful
+influence.
+
+Pains are taken to cover with infamy all those who discount the public
+paper. The natural effect of this measure is to prevent those men from
+meddling with it, who, from a regard to their own reputation, would do
+the business on moderate terms. Hence it follows, that the holders
+cannot obtain so much for their paper as they otherwise might. Hence
+again an additional clamor and of course an additional loss to the
+possessors. On the basis of the depreciation is founded an argument to
+prevent the redemption. By these means the public credit is totally
+ruined, and the government becomes chargeable with flagrant injustice.
+No future anticipations can be made to supply the most urgent wants;
+and in the whole proceeding, they are made the victims, who confided
+in the faith of government. The attempt, therefore, by this slander to
+injure me is an injury to those, who have received my paper; and in
+every instance where they have joined in propagating the report, they
+have joined their enemies to plunder themselves.
+
+Let me no longer intrude on your Excellency's patience, than to
+declare my conviction, that the States might easily fulfil far more
+extensive engagements than those which I have made on their account.
+Notwithstanding every insinuation I will continue my efforts for the
+purpose, and though base minds should reiterate their charges, I will
+persist in my duty and defy their malice.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+REPORT TO CONGRESS RESPECTING TRANSFERABLE CERTIFICATES.
+
+ Office of Finance, July 31st, 1783.
+
+The debts which have been found due to persons by settlements at the
+Treasury Office, have not been evidenced by transferable certificates
+for the following reasons.
+
+1st. All such certificates have by experience been found to be only
+another kind of paper money, continually depreciating both by increase
+of quantity and defect of funds.
+
+2dly. The consequence thereof is, that the same is daily brought into
+fewer hands and for less value, by which one of two things must
+happen, either that those few become very rich by their speculations,
+or, that being defrauded they become clamorous against the government.
+
+3dly. If the certificates are transferable in the manner proposed by
+the motion, they are evidence of the debt as due to the bearer, and
+therefore whether obtained by accident, force, or fraud, vest him with
+a right, to the prejudice of the injured or unfortunate party.
+
+4thly. Being, therefore, a precarious property, they become less
+valuable from that circumstance.
+
+5thly. When the original proprietors become divested of them, some of
+the reasons in favor of revenues to redeem them lose their force, and
+the advocates for just measures being lessened, the probability of
+carrying them through is decreased.
+
+6thly. While the evidence of such debts is in the treasury books and
+the stock transferable there, the public debt becomes a property, the
+object of purchase, instead of being as in the other case the means of
+making purchases as money.
+
+But if there be powerful reasons in favor of the motion, which have
+escaped the Superintendent of Finance, he shall very readily comply
+with such order as to the wisdom of Congress may seem meet.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, August 1st, 1783.
+
+ Sir,
+
+I do myself the honor to enclose an account of payments, made by the
+States to the receivers, until the 1st day of July last, and with it I
+take the liberty also to enclose a note, containing nearly the
+proportions, in which the States have paid their quotas of the
+requisitions for 1782.[17]
+
+ [17] The proportions are as follows:
+
+
+ South Carolina 1-1
+ Rhode Island nearly 1-4
+ Pennsylvania above 1-5
+ Connecticut and}
+ New Jersey } each about 1-7
+ Massachusetts, about 1-8
+ Virginia about 1-12
+ New York and }
+ Maryland } each about 1-20
+ New Hampshire, about 1-121
+ North Carolina,}
+ Delaware and } nothing at all.
+ Georgia }
+
+I take the liberty further to mention, that the State of South
+Carolina has (by means of the supplies to the troops serving
+there) paid the full amount of her quota for 1782, as I am
+informed by the Receiver, whose accounts and vouchers (though
+momently expected) are not yet come forward. The State of Georgia
+has I believe contributed something in the same way, but if not,
+the great ravages which she has endured will account for the
+defect, without supposing any defect of inclination. As for the
+other States, I pray leave to avoid any comments on the balances
+of their accounts.
+
+I have the honor to be, &c.
+
+ROBERT MORRIS.
+
+
+ * * * * *
+
+TO MESSRS WILLINK & CO.
+
+ Office of Finance, August 6th, 1783.
+
+ Gentlemen,
+
+I beg leave to acknowledge your favor of the 12th of April last,
+which came to hand two days ago. From the letters I had already
+written, and which I presume you will have received before this,
+you will easily see how much pleasure I derive from the prospect
+that your loan may speedily fill. Be assured, Gentlemen, that your
+endeavors on this occasion shall not be forgotten; and rely on it
+that you cannot render more acceptable service to the United
+States.
+
+My former letters contained the disposition of your funds so far
+as to satisfy any demands which Mr Grand might have. These I
+suppose have been complied with, and I expect, that not only the
+sums which Mr Grand could possibly want must have come to your
+hands before this letter can arrive, but that you will still have
+a considerable balance.
+
+Under these circumstances, the exchange on your city being now
+high, and the disbandment of our army having increased my need of
+money to make them a considerable payment, I have concluded to
+draw on you to the amount of two hundred thousand florins, as
+occasion may offer; and if exchange should not fall, nor any
+advices arrive to prevent the measure, I may perhaps extend my
+drafts on you to five hundred thousand florins. But as it might
+happen, notwithstanding my opinions, that you should not be
+considerably in cash beyond Mr Grand's demands, I have determined
+on these two points; first, that I will not precipitate my sales
+here, but only dispose of bills as occasion may require; and
+secondly, that I will draw at ninety days' sight, because the
+demand for bills is such, that a difference in the sight will make
+none in the price. By these means it will happen, Gentlemen, that
+even if you are not in cash when the bills arrive, you can have no
+difficulty as to the acceptance, because the natural progress of
+the loan must put you in possession of money before they can fall
+due. And this is the more to be expected, as some of the tobacco
+will doubtless have arrived, which cannot but give a weight and
+solidity to your negotiations. If however these things should not
+so happen, you will, I expect, pay the bills at any rate, and for
+any excess beyond your immediate funds you will charge an interest
+to the United States. On the other hand, if it should happen
+according to my expectations, that you have unappropriated money
+in your hands when the bills are presented, I am then to request
+that you will pay them at sight, if agreeable to the parties,
+deducting the usual discount for prompt payment, which you will be
+so kind as to credit to the United States.
+
+With every wish for your success and prosperity, I have the honor
+to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Head Quarters, August 6th, 1783.
+
+ Sir,
+
+I thank you for the communication, which you have been pleased to
+make to me under the 11th of July. It was handed to me on my
+return last evening from a tour ---- have been making to the
+northward and westward, as far as Crown Point and Fort Schuyler,
+to view the posts and country in that part of the United States'
+territory.
+
+The anticipations you have been obliged to make are indeed great,
+and your circular letter to the States on the occasion appears to
+me sufficient, if anything of the kind can be so, to arouse their
+attention to the necessity of your circumstances. I most sincerely
+wish it may have the desired effect.
+
+In consequence of my tour to the northward, the Quarter Master
+General, will have my orders to prepare batteaux and other means
+of transportation to the upper posts, of the cannon, stores and
+provisions, which will be absolutely necessary for possessing and
+maintaining them. To effect this money will be necessary, and I
+give you this information, that a demand will probably be made on
+you for the purpose.
+
+The State of New York, which is deeply interested in the security
+of these posts, and effecting this business, may perhaps be
+prevailed on to furnish the necessary sums to be placed to general
+accounts. This will probably exert itself in this case preferably
+to any other. I give you this hint, and leave its improvement to
+you.
+
+Knowing your situation, I am pained when necessity obliges me to
+make any application for money. But this purpose is of so great
+importance to the interests of the United States, and of so urgent
+necessity, that if the sums required cannot be obtained in the way
+I have hinted, I must entreat you to give every assistance to
+Colonel Pickering that shall be necessary.
+
+ I am, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+ Office of Finance, August 12th, 1783.
+
+ Sir,
+
+I have received your Excellency's favor of the 6th instant. I am
+always happy to hear from you, although I confess that every new
+demand for money makes me shudder. Your recommendations will
+always meet my utmost attention, because I am persuaded that you
+have equally with me the desire to husband and enlarge our
+resources. Your perfect knowledge of our political and military
+situation must decide on the measures to be pursued, and I am
+persuaded, that your advice to Congress on these subjects will be
+equally directed to the safety, the honor, and the interests of
+the United States.
+
+ With very sincere esteem, I have the honor to be, &c.
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PAY MASTER GENERAL.
+ Office of Finance, August 12th, 1783.
+
+ Sir,
+
+I am to acknowledge the receipt of your favor of the 6th instant,
+containing two questions. To the first of these I answer, that my
+anticipations amount to a very large sum, that it will employ all
+my resources to honor engagements already taken; that of
+consequence I cannot see my way clear to form new ones, and that
+if I did, the groundless and injurious clamors, which have been
+raised on this subject, would prevent me. It becomes impossible to
+serve a people who convert everything into a ground for calumny.
+The existence of the republic, since the conclusion of a peace,
+no longer depends upon extraordinary sacrifices and exertions. My
+desire to relieve the army has been greatly cooled, from the
+information, that many of them have joined in the reproaches I
+have incurred for their benefit. And the necessity I feel of
+quitting (at the earliest possible moment) an office of incessant
+labor and anxiety, whose only reward is obloquy, will not permit
+me even to think of any farther anticipations.
+
+The second question in your letter is foreign to my department; a
+question, which you have as many materials to judge upon as I
+have, and which you are particularly authorised to decide.
+
+ I am, Sir, &c.
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO ELBRIDGE GERRY.
+ Office of Finance, August 26th, 1783.
+
+ Sir,
+
+In compliance with your request, I shall not only give the
+information which appears to have been the object of Mr Clarke's
+letter, but recapitulate also the observations which I had the
+honor to make on what you mentioned as the object of the
+committee. And first, for the information desired, I can answer
+only in general terms, that I believe the various engagements
+entered into previous to the end of 1781, were under the faith of
+requisitions then existing. Since that period, I know of only two
+requisitions for current service, both of them founded on
+estimates. The first was of eight millions for the service of
+1782, and the second was of two millions, for part of the service
+of 1783. All the engagements of my administration are on the faith
+of these latter requisitions.
+
+The first object you mentioned was to alter the mode of settling
+accounts, so far as the requisitions previous to 1781 are
+concerned, and only to calculate the actual payments, or advances
+by the States, with the interest, so that the whole, being formed
+into one sum, may be afterwards apportioned among the States. To
+which plan, among other objections, I look the liberty to state
+the following. First, there is no evident necessity for taking
+this step, and therefore it will be prudent to omit it; because in
+such cases government risk every unforeseen danger that may
+result, and always render their affairs more complicated.
+Secondly, the measure may be misunderstood, and occasion clamors,
+which will indispose some to adopt the other measures recommended
+by Congress; which objection though it ought not to weigh in
+competition with what is evidently _proper and right_, must
+nevertheless be attended to in things of more doubtful complexion.
+Thirdly, there would arise from it a degree of _irregularity_; for
+the particular accounts being now all opened in the treasury
+books, by the authority of the late Board of the Treasury, it
+appears most natural to continue them in their present form, until
+the final settlements. Fourthly, all the information necessary to
+enable Congress to decide on the accounts when settled will then
+be in their power; for the accounts will contain, on one side, the
+compliances of the State with the requisitions, together with all
+other advances which they have made for the public service, and on
+the other side will be the amount of the various requisitions.
+Whenever therefore Congress on such full view of the subject,
+shall think proper to remit the whole, or any part of the
+requisitions, entries will be made in the treasury books
+accordingly. Fifthly, it would be rather premature to make the
+decision proposed before (by a settlement of accounts) all the
+proper materials are brought into view; and until the States have
+adopted the proposed measures for funding the public debts.
+Because, sixthly, it is conceived that the various requisitions
+were adequate to the necessary service; and that although it may
+perhaps be wise eventually to convert the whole expenditure of the
+war into the form of a debt, in order thereby to prevent the
+disputes which might arise on the apportionments, still it must be
+remembered, that this step cannot be taken until funds are
+obtained. Until that period, therefore, it is perhaps as well to
+leave the requisitions; if it be only to show the States why they
+are called on for revenues now, viz. because they would not or
+could not furnish supplies before. But, lastly, it might prove
+dangerous under present circumstances to take any step whatever
+with these requisitions. Only partial compliances have been made.
+Some States therefore adhere to some requisitions, and some to
+others, according to the real or supposed situation of their
+accounts. To go no farther, it would hardly be prudent to hazard a
+dispute with Massachusetts, by relinquishing the requisitions of
+March, 1780, or with some other States by a useless attempt to
+enforce them.
+
+The other object, Sir, which you appeared to have in view, is to
+relinquish so much of the requisitions since 1781, as might leave
+only the sum necessary for fulfilling present engagements. Now
+although the resolution, which seems to have been in contemplation,
+would not have had this effect, because the requisition for the
+service of 1782 was made on estimates, yet I shall assign a few
+objections to the plan. The reason urged in favor of it is, that the
+demand was so much beyond the abilities of the States, and the
+necessities of the service, that it must excite a despair of
+compliance, and a diffidence in the prudence of those by whom it was
+made. To which it may well be replied, that the ability of the States
+is not so hastily to be decided on, because it has never been put to
+the proof by prudent and vigorous taxation, because other countries
+not so wealthy bear much heavier taxes without inconvenience, and
+because these very States have borne it, though under another name;
+for the depreciation of the paper money, which wiped away not less
+than twelve millions annually, was in effect a tax to that amount.
+
+But further, even admitting the supposed inability, still the
+requisition, if not excessive as to its object, ought of necessity
+to have been made. Because the States could by no other mode of
+reasoning be convinced of the necessity of establishing that
+credit, which can alone prevent such great efforts. And because if
+such requisitions had not been made, some branch of service must
+have been left unprovided for by Congress, on the very face of
+their own measures, which would have been a palpable absurdity.
+
+And this leads to the second point, viz. that the demand was
+beyond the necessities of the service. Before this position is
+assumed it must be considered, not only what expense was actually
+paid, but also what was probable when the demand was made, and
+what of the expense incurred still remains due. And first, as to
+what was paid; we shall find that the military collections in the
+Southern States went to a considerable sum, which is not yet
+brought into the public accounts, as there was no money to defray
+it, owing to the noncompliance of the States. Secondly, the
+probable expense was far beyond the actual, because of the
+misfortunes of our allies, which rendered it necessary lay aside
+the proposed offensive measures, and which could not, if not laid
+aside, have been carried into effect, by reason of the lamentable
+deficiencies of the public revenue. And thirdly, a very
+considerable part of the expense of 1782 is necessarily paid in
+1783, and a far more considerable part remains unpaid. For
+instance, almost the whole amount of the pay of the army; an army
+by no means so numerous as that which the General had called for,
+and Congress resolved on. And it would have been indeed very
+strange, if Congress had asked only five millions from the States,
+including therein every other article, but the pay of the army on
+whose exertions everything depended.
+
+Having said thus much on what has been assumed with respect to
+these estimates, and which I can defend the more hardily, as by
+accident they did not pass through my office, I proceed now to
+state the objections against remitting them. And first, let it
+always be kept in view, that the States not having granted the
+funds necessary for securing to our army the interest of their
+dues, that army has a just right to insist that the requisition
+for the principal be not relinquished, until such grants be made.
+Secondly, it must be remembered, that Congress have not yet any
+standard for making a final apportionment, and therefore it must
+be very useless now, to touch requisitions which must speedily be
+retouched again. Thirdly, the States which have complied more
+fully than others, would undoubtedly, in such cases, relax from,
+and perhaps totally withhold their efforts; from the conviction
+that deficient States would always be able to obtain from Congress
+a vote favorable to themselves, and consequently unfavorable to
+others; which idea, grounded too much on past experience, is one
+great cause of that inattention which led us to the brink of
+ruin. Fourthly, this mischief would not only arise among the
+States, but it would exist also amidst and within them, for a
+relaxation of the whole quota would naturally render new interior
+apportionments necessary. Not to mention the delays and disputes
+thereby occasioned, the remainder of what would then be to pay
+would be thrown of course upon remote counties, where the powers
+of government are weak, the collections languid, and the revenue
+in every respect feeble and unproductive. Great deficiencies would
+arise from these causes, both in the periods and the amount of
+payments, and either would be sufficient to cause another national
+bankruptcy. But, fifthly, there can be no reason for the measure
+proposed; because it is much more simple to leave the present
+demands for ten millions of dollars upon their present footing,
+until the apportionment of that whole sum can be made _finally_ to
+pay (from whatever is brought in) the amount of all existing
+engagements, to go on (should collections be sufficient) and pay
+off a part of our debts, and finally to make no new requisitions,
+until these be completely complied with. By that period Congress
+will be able to deride with accuracy on the sums necessary for
+annual service; they will be able to apportion their demands
+accordingly, and, what is of infinite importance, they will have
+set an example of persisting regularly in a measure, until a full
+and final compliance.
+
+ I am, Sir, respectfully, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+GEORGE WASHINGTON TO ROBERT MORRIS.
+
+ Rocky Hill, August 30th, 1783.
+
+ Sir,
+
+I take the earliest opportunity of informing you, that Baron
+Steuben has returned from Canada, without being able to accomplish
+any part of the business he had in charge. In consequence of
+which, and of the late season of the year, I have judged it
+impossible to take possession of the western posts this fall, and
+have ordered a stop to be put to the movement of troops and
+stores, and to the preparations which were making for that
+purpose; of which I have given notice to the Quarter Master
+General, and to the contractors, and have taken every other
+precaution in my power to prevent the accumulation of unnecessary
+expenses.
+
+ I am, &c.
+
+ GEORGE WASHINGTON.
+
+ * * * * *
+
+TO GEORGE WASHINGTON.
+
+ Office of Finance, September 2d, 1783.
+
+ Sir,
+
+I received your Excellency's favor of the 25th and 30th of last
+month. The latter was by far the more agreeable, for I confess to
+you, Sir, that I beheld the attempt to garrison the western posts
+with pain, and went into so much of it as concerns my department
+with infinite reluctance. I persuade myself that the only
+effectual means of getting a good American establishment of any
+kind is, to be so long without it that a sense of the want shall
+stimulate the States into the means of forming it. At present all
+we can do is, to close the past scene, if possible, with
+reputation.
+
+ I am, very sincerely, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+CIRCULAR TO THE COMMISSIONERS OF ACCOUNTS.
+
+ Office of Finance, September 4th, 1783.
+
+ Sir,
+
+As the Commissioners, both on the Accounts of the Departments and
+on those of the States, are now almost all appointed, and in the
+execution of their respective offices, I shall take the liberty of
+adding a little to their important employment. And this I do with
+a view to the future service of the Union, under whatever hands
+the administration may fall.
+
+In the course of the business committed to your care, you will
+have occasion to travel into different places, and therefore you
+will have an opportunity to render an accurate account of many
+particulars, which it is important to know. A well regulated
+system of finance requires, that money be raised with ease to the
+people, and expended with economy to the public. An intimate
+acquaintance with the state and the resources of a country, is
+alike essential to both of these objects.
+
+The state of the country is either _geographical_, _moral_,
+_political_, or _commercial_. The geographical state comprehends,
+
+1st. The general extent, divisions, and subdivisions.
+
+2dly. The mountains, rivers and roads, with their respective
+courses and distances.
+
+3dly. The kind and quality of the soil; and
+
+4thly. The natural advantages or disadvantages for husbandry,
+manufactures, or commerce, including therein, mines, minerals,
+quarries, salines, and the like.
+
+The moral state of the country comprehends,
+
+1st. The population, whether numerous or, not, and whether by
+natives or emigrants.
+
+2dly. The manners; which include the mode of life and occupation
+of the people, from those who live by hunting or grazing, to the
+husbandman, and so on to the most perfect mechanics.
+
+3dly. The husbandry; by which is meant the particular kinds which
+may be practised, and the degree of improvement in each. The
+various climates and productions of the States, as well as their
+different periods of settlement and relative population, have
+rendered this article extremely various.
+
+4thly. The arts; by which is not so much intended the fine, as the
+useful arts. It may, however, be not amiss to mention any peculiar
+or remarkable excellence in the former. The useful, or mechanic
+arts, being in some places considerably advanced, and in others
+hardly established, and the wealth of the country depending much
+upon them, it will be well to know the subject intimately.
+
+5thly. The buildings; these may be either public or private. The
+former may be noticed, but of the latter an accurate information
+will be necessary, seeing that in general much information as to
+the abilities of a people may be derived from a knowledge of the
+houses they have built; whether these be of logs, for shelter of
+the new and indigent cultivator; or of stone, for the accommodation
+of the established and wealthy husbandman. So also, whether the
+windows be glazed or not, the state of the several outhouses, &c. And,
+
+6thly. The improvements; which will comprehend, of land, from the
+first clearing of a forest, to the watering and dyking of meadows
+and swamps; and of buildings, from a common saw mill, to all the
+various furnaces, forges, mills, and machines, which may be met
+with in the progress of your inquiries.
+
+The political state of the country comprehends,
+
+1st. The constitution of government; which is not merely the paper
+form, but the practice under it; and that will depend much upon
+the tendency of the people towards aristocratical or democratical
+dispositions. The former may be expected, where large tracts of
+territory are in the hands of a few, and the latter where a
+considerable equality of fortunes is found in cities. But neither
+of these circumstances, though forcible, is conclusive, and
+therefore it is, that the knowledge collected on the spot by
+conversation and observation, becomes useful.
+
+2dly. The magistracy; by which is meant not only the mode of
+appointment, the names, the powers, and the jurisdictions, but
+what is far more important, the authority, which materially
+depending upon the respect paid to the magistracy, must be much
+influenced by the personal character of the magistrates; and by
+that character is not so much intended the reputation of a few
+individuals, as of the whole corps, and for a considerable space
+of time.
+
+3dly. The interior police; which is intimately connected with, and
+mutually acted upon by the former. This differs widely in the
+different States, and is the more necessary to be known, as
+various branches of it may either facilitate or oppose the public
+measures.
+
+4thly. The revenue; and under this head is particularly to be
+noted the modes of laying, levying, and collecting taxes, the time
+and the expense which are employed, and the delays and the frauds
+which happen. To these will be added, the amount brought into the
+treasury, and, as far as may be, the quantum appropriated to
+public uses; and,
+
+5thly. The credit, both public and private; the former of which
+has a close connexion with the revenue.
+
+The commercial state of the country, comprehends,
+
+1st. The produce; under which term is included not only the raw
+material, but the ruder manufactures; such for instance, as flour
+from wheat, iron from ore, and the like.
+
+2dly. The roads and navigation to the several ports; on the
+facility whereof must greatly depend the prices of things, and
+even the practicability of obtaining them.
+
+3dly. The imports and exports, with the places to and from which
+the same are made; the former as precisely as possible, and the
+latter in such general terms as may convey a tolerably just idea
+of the principal branches and connexions of foreign commerce.
+
+4thly. The value of lands; which though a result from various
+heads already mentioned, has a more intimate connexion with
+commerce; and,
+
+5thly. The value of money; by which is not so much meant the
+coins, as the rates of interest actually paid, and the facility of
+obtaining money on interest.
+
+The resources of a State are twofold, being either those which
+exist and may be drawn forth and applied in peace, for the various
+purposes which may then occur to meliorate or beautify the
+country, such as the opening of interior navigation, mending of
+roads, and erecting of buildings; or those, which can be exerted
+for the purposes of war, either offensive or defensive. The
+resources in peace will appear from due reflection on the
+information already asked; as will indeed, in a great degree,
+those for war, particularly offensive war. But still there remain
+some particulars worthy of notice; such as,
+
+1st. The number of men which may be brought into the public
+service; being either seamen or soldiers; and consequently the
+number of each should be distinguished.
+
+2dly. The quantity of provisions and the kinds.
+
+3dly. The forage of different kinds; and,
+
+4thly. The various means of transportation, such as horses,
+wagons, boats, &c.
+
+Having thus, Sir, pointed out the principal objects on which I
+wish for information, I must now request, that you will endeavor
+to collect it as speedily and as perfectly as your means and
+opportunities may permit, and that you will transmit it as fast as
+it is obtained, but always in letters which contain no other
+matter, and arranged regularly under the several titles which have
+been mentioned; but as it is impossible to foresee the various
+matters which may arise, and the occurrences which will impress
+themselves on an intelligent and inquisitive mind, you will be
+pleased under the head of _Miscellaneous Observations_, to
+transmit any such things as you may think useful or important to
+be known.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JOHN ADAMS.
+
+ Office of Finance, September 20th, 1783.
+
+ Sir,
+
+I have been duly honored with your Excellency's favors of the 5th,
+10th, and 11th of July. I have taken the liberty to make some
+extracts from the two latter, which are transmitted in a letter to
+the Governor of Massachusetts, a copy whereof is enclosed. Permit
+me, Sir, to give my feeble approbation and applause for those
+sentiments of wisdom and integrity, which are as happily expressed
+as they are forcibly conceived. The necessity of strengthening our
+confederation, providing for our debts, and forming some federal
+constitution, begins to be most seriously felt. But unfortunately
+for America, the narrow and illiberal prejudices of some have
+taken such deep root, that it must be difficult and may prove
+impracticable to remove them.
+
+I agree with you, Sir, in opinion, that the late peace was not,
+all circumstances considered, a bad one for England. It is
+undoubtedly a peace equally glorious to, and necessary for,
+America. All ranks of men in this country feel, as well as
+perceive, the benefits of it, and the fault finders (for such men
+there always will be) are borne down by the general torrent of
+applause.
+
+I was happy to learn by the Washington packet, that you intended a
+short trip to Amsterdam for the purpose of urging on the loan. I
+hope you may have met with the success due to your zeal and
+abilities; I shall ask no greater.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, September 30th, 1783.
+
+ Sir,
+
+I am to acknowledge the receipt of your favors of the 7th of March
+and 27th of July. For both of them, accept my thanks. You express
+an apprehension lest the union between France and America should
+be diminished by accounts from your side of the water. This
+apprehension does you equal honor as a statesman and as a man.
+Every principle, which ought to actuate the councils of a nation,
+requires from us an affectionate conduct towards France, and I
+very sincerely lament those misapprehensions, which have
+indisposed some worthy men towards that nation, whose treasure and
+blood have been so freely expended for us.
+
+I believe the truth, with respect to some, to be this. A warm
+attachment to America has prevented them from making due
+allowances in those cases where their country was concerned. Under
+certain prepossessions it was natural for them to think, that the
+French Ministry might do more for us, and it was quite as natural
+for the Ministers to think, that we ought to have done more for
+ourselves. The moment of treaty with England was of course the
+moment of profession with English Ministers. I fear that the
+impressions made by these were for a little while rather more deep
+than was quite necessary. But the same love of America, which had
+raised such strong irritability where her interests were
+concerned, will of course stimulate it to an equal degree when
+those interests are assailed from another quarter. I think I may
+venture to assure you, that the esteem of this country for France
+is not diminished, and that the late representations have not been
+so unfavorable as you fear.
+
+Our commerce is flowing very fast towards Great Britain, and that
+from causes which must forever influence the commercial part of
+society. Some articles are furnished by Britain cheaper, many as
+cheap, and all on a long credit. Her merchants are attentive and
+punctual. In her ports our vessels meet with despatch. I say
+nothing of language and manners, because I do not think their
+influence so strong on commerce as many people suppose, but what
+is of no little importance is, that the English having formed our
+taste, are more in a capacity to gratify that taste by the nature
+and fashion of their manufactures. There is another circumstance,
+also, which must not be forgotten. The great demand for French
+manufactures during the war increased the price of many, and some
+time will be required before it can, by a fair competition, be
+discovered, which of the two countries, France or England, can
+supply us cheapest. The delays in the public bills is a further
+circumstance which militates (a momentary obstacle) against the
+trade with France.
+
+I must, therefore, mention to you, also, a matter which is of
+great effect. Until we can navigate the Mediterranean in safety,
+we cannot trade in our own bottoms with the ports of France or
+Spain, which are on that sea. And we certainly will not trade
+there in foreign bottoms, because we do not find the same
+conveniences and advantage in so doing, as in our own vessels;
+unless, indeed, it be on board of English ships. This may be a
+disagreeable fact, but it is not the less a fact.
+
+I believe that informations are transmitted hence to the Court,
+which they ought not to rely on. Their servants doubtless do their
+duty in transmitting such information, but I am persuaded that
+they are themselves not well informed. Indeed it is quite natural,
+that men should mistake when they examine and treat of a subject
+with which they are unacquainted. And it cannot well be supposed,
+that political characters are competent to decide on the
+advantages and disadvantages of allowing to, or withholding from
+us, a share in the carrying trade. On this subject I will make a
+further observation, and you may rely on it, that I speak to you
+with candor and sincerity, not with a view to making any
+impressions on the Court. You may communicate or withhold what I
+say, and they may or may not, apply it to their own purposes. If
+anything will totally ruin the commerce of England with this
+country, it is her blind attachment to her navigation act. This
+act which never was the real foundation of her naval superiority,
+may and perhaps will be the cause of its destruction. If France
+possesses commercial wisdom, she will take care not to imitate the
+conduct of her rival.
+
+The West India Islands can be supplied twenty per cent cheaper in
+American than in French or British bottoms. I will not trouble you
+with the reasons, but you may rely on the fact. The price of the
+produce of any country must materially depend on the cheapness of
+subsistence. The price at which that produce can be vended abroad
+must depend on the facility of conveyance. Now admitting for a
+moment (which by the by is not true) that France might, by
+something like a British navigation act, increase her ships and
+her seamen; these things would necessarily follow. 1st. Her
+Islands would be less wealthy, and therefore less able to consume
+and pay for her manufactures. 2dly. The produce of those Islands
+would be less cheap, and therefore less able to sustain the weight
+of duties, and support a competition in foreign markets. 3dly. The
+commerce with this country would be greatly lessened, because that
+every American ship, which finds herself in a French, English, or
+other port, will naturally seek a freight there, rather than go
+elsewhere to look for it; because in many commodities the
+difference of price in different parts will not compensate the
+time and cost of going from place to place to look after them. To
+these principal reasons might be added many others of less weight,
+though not of little influence, such as the probable increase of
+commercial intercourse, by increasing the connexions and
+acquaintances of individuals. To this and to everything else which
+can be said on the subject by an American, I know there is one
+short answer always ready, viz. that we seek to increase our own
+wealth. So far from denying that this is among my motives, I place
+it as the foremost, and setting aside that gratitude which I feel
+for France, I do not scruple to declare, that a regard to the
+interests of America is, with respect to all nations of the world,
+my political compass. But the different nations of Europe should
+consider, that in proportion to the wealth of this country will
+be her ability to pay for those commodities, which all of them are
+pressing us to buy.
+
+Our people still continue as remiss as ever in the payment of
+taxes. Much of this, as you justly observe, arises from the
+difficulties of collection. But those difficulties are much owing
+to an ignorance of proper modes, and an unwillingness to adopt
+them. In short, though all are content to acknowledge, that there
+is a certain burden of taxation which ought to be borne, yet each
+is desirous of shifting it from his own shoulders to those of his
+neighbors. Time will, I hope, produce a remedy to the evils under
+which we labor, but it may also increase them.
+
+Your applications to the Court for aid are certainly well
+calculated to obtain it; but I am not much surprised at your ill
+success. Indeed I should have been much surprised if you had been
+more fortunate. Of all men I was placed in the situation to take
+the deepest concern in the event, but I cannot disapprove of the
+refusal, for we certainly ought to do more for ourselves before we
+ask the aid of others. Copies of your letters to the Court were
+laid before Congress, and also the copy of the new contract. I
+will enclose with this a further copy of the ratification of the
+old, if I can obtain it in season from Princeton, where the
+Congress now are.
+
+I have written also on the subject of the debt due to the
+Farmers-General, and should Congress give me any orders about it,
+I shall attend carefully to the execution. The conduct they have
+maintained with regard to us has been generous, and will demand a
+return of gratitude as well as of justice. This I hope my
+countrymen will always be disposed to pay. I shall take some
+proper opportunity of writing to the Farmers-General, but will
+wait a while to know what may be the determination of Congress on
+their affairs.
+
+It gives me much pleasure to find, that by the proposed
+establishment of packets, we shall shortly be in a condition to
+maintain more regular and connected correspondence; for although I
+shall not myself be much longer in public office, I feel for those
+who are or will be charged with the affairs of our country, both
+at home and abroad. It will naturally occur, however, that a good
+cypher must be made use of not unfrequently, when despatches are
+trusted to foreigners. They have no regard either to propriety or
+even decency where letters are concerned.
+
+ With very sincere esteem and respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO ARTHUR LEE.
+
+ Office of Finance, October 4th, 1783.
+
+ Sir,
+
+I have received your letter of the 26th of last month, desiring
+information as to the reality of a contract with, and instructions
+to Mr Deane. Enclosed you have a copy of the contract mentioned.
+The instructions to Mr Deane are, I presume, in the Office of
+Foreign Affairs.
+
+The facts under this contract are generally as follows, so far as
+my knowledge extends. Money was advanced to me, which I expended
+in shipment of cargoes from the Delaware and Chesapeake, and have
+long since accounted for. Money was also advanced to Messrs Lewis,
+Livingston and Alsop, and, I believe, expended by some or one of
+them in shipments from New York and Connecticut, but the accounts
+are not yet closed; which is one among many reasons why a
+commissioner should be appointed or authorised to settle the
+accounts of the secret and commercial committees.
+
+Of the several shipments made, some arrived, some were taken, some
+were detained by the enemy's naval power. The risks becoming
+great, it was thought most adviseable to abandon the farther
+prosecution of the plan; which the parties to the contract, then
+in this country, cheerfully consented to, and it was determined
+that the proceeds of those shipments, which might have arrived,
+should be carried into the general public accounts. Mr Deane went
+to Europe under this contract; and being unable, from the
+remittances sent, to complete the intentions of his voyage, has, I
+believe, carried the amount of those remittances into his general
+accounts with the United States. These accounts are among those
+which Mr Barclay is appointed to settle, and I presume that no
+allowance will be made, such as claimed by Mr Deane, until he
+shall have produced the contract and instructions to which he
+refers for support of his claim; nor then, unless very completely
+supported or specially allowed by Congress.
+
+I believe Mr Barclay is now employed in making that adjustment,
+and I suppose, that after he shall have gone through Mr Deane's
+accounts, admitted such charges as ought clearly to be admitted,
+and rejected such as ought clearly to be rejected, there will
+remain some articles on which he will apply to Congress for their
+special decision; in which case he will naturally transmit all the
+evidence which Mr Deane may have exhibited.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE LA LUZERNE.
+
+ Office of Finance, October 15th, 1783.
+
+ Sir,
+
+I had the honor to receive your Excellency's letter of the 11th
+instant. If a settlement of the accounts which arose before the
+commencement of my administration had depended on me, neither M.
+Holker nor any other person should have had cause of complaint.
+The perplexed situation of those accounts rendered it necessary
+for Congress to submit them to the investigation of special
+commissioners, who have but lately commenced their operations. I
+shall immediately transmit a copy of your Excellency's letter to
+the gentleman who may be charged with those accounts in which M.
+Holker is concerned, and request his attention to the subject.
+
+That any person should suppose the apprehension of being taxed
+with favor to an individual, would induce me to delay the justice
+due alike to all, is so extraordinary, that your Excellency must
+permit me to express my surprise at meeting the idea in a letter
+from the King's Minister.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS WILLINK & CO.
+
+ Office of Finance, October 23d, 1783.
+
+ Gentlemen,
+
+Upon taking a view of my various engagements for the public
+service, and considering the great anticipations, which have been
+made at the period when our brave army quitted the field, it has
+appeared to me, that the sum of about three hundred thousand
+dollars would be necessary for me over and above the probable
+produce of our taxes, to clear off all those engagements, and
+enable me to lay down the burdens of official life in a consistent
+and proper manner, should the situation of public affairs then
+admit of it. This circumstance, however nearly it interests my
+personal feelings, is still more interesting to my country;
+because a regular and punctual performance of engagements, while
+it establishes confidence, ensures the means of future punctuality.
+
+Revolving much on this subject in my own mind, I have been led to
+consider also, that the present rate of exchange, which is very
+favorable, may not continue when tobacco, rice, indigo, and the
+other produce of the southern States shall be freely exported in
+remittances to Europe. And if the exchange should lower, there
+will be a loss on the bills of the United States, which I would
+always wish to prevent. Besides this there is another important
+circumstance, which is, that if the drafts are suspended until
+notice of the success of your loan, so as to lodge the money, the
+public will be paying interest, both here and in Europe for the
+same sum; which ought, you know, as much as possible to be
+avoided.
+
+Under these different impressions, the natural conduct would have
+been, to vend my bills very boldly, and trust to the success of
+those exertions, which you will undoubtedly make. But here it was
+proper to consider, that if unforeseen circumstances should in any
+manner have put a check upon your operations, the consequence
+might have been a very great inconvenience, and perhaps injury to
+you, which I would always wish to avoid, together with a loss of
+credit, coupled with the payment of heavy damages to the United
+States.
+
+I have therefore adopted a middle line of conduct, which will
+combine the advantages and avoid the inconveniences, both of delay
+and of precipitation. I have drawn three sets of exchange, all
+dated on the 21st instant, (the time when they were drawn) and
+each for two hundred and fifty thousand current guilders, payable
+at one hundred and fifty days' sight. These bills are numbered one
+hundred and ninetyone, one hundred and ninetytwo, and one hundred
+and ninetythree; the first in favor of John Ross, the second in
+favor of Peter Whiteside & Co., and the third in favor of Isaac
+Hazelhurst. All these are solid houses, upon whose fidelity and
+punctuality I can place equal dependence. I have taken from them
+proper stipulations to pay at the end of one hundred and twenty
+days, each one hundred thousand dollars; by which means I have
+secured the immediate vent of that sum at the very highest
+exchange. And it is further agreed between us, that in case of
+protest, (which God forbid should happen) the public shall not be
+charged with damages; the necessary consequence of which is, that
+the bills will not be negotiated further than to place the amount
+in the hands of their friends, which is indeed fully understood
+between us. You will see also, that in this mode I shall bring to
+the public use here (allowing about two months for the bills to be
+presented) the sum of three hundred thousand dollars, near three
+months before it is paid by you.
+
+From this explanation, which I have entered into in order to show
+you the full grounds of my procedure, because I knew how much more
+satisfactorily business is conducted when all circumstances are
+known, you will perceive that my bills already advised of, are
+first to meet due honor, and consequently funds set apart for
+their absolvement. These three new bills then come in their
+course, and I must entreat you, Gentlemen, to honor them also,
+even if you have not the funds, provided a view of fair prospects
+can render it at all consistent with that prudence, which must
+doubtlessly influence you in such important concerns. I must also
+request, that you will give me, by various conveyances, the most
+immediate notice of your acceptance, because I shall from that
+moment be able, by discount, to bring the securities given by
+those gentlemen into operation.
+
+ I am, Sir, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE FARMERS-GENERAL OF FRANCE.
+
+ Office of Finance, November 4th, 1783.
+
+ Gentlemen,
+
+The Honorable Minister Plenipotentiary of the United States of
+America to the Court of Versailles, having done me the honor to
+transmit a copy of your letter to him of the 17th of July last, I
+took the earliest opportunity after the receipt of it, to submit
+that business to the consideration of Congress; who by their Act
+of the 1st instant, whereof a copy is enclosed, have instructed me
+to inform you, that Congress are sensible of your generous
+attention to the circumstances of the war, in which these United
+States have been so long engaged, and which, interrupting their
+commerce, deprived them of the means of seasonable remittances to
+satisfy the balance so justly due on the loan made by you.
+
+I am further instructed, Gentlemen, to assure you that the United
+States in Congress assembled, in providing for the national debt,
+by their Act of the 18th day of April, 1783, were not unmindful of
+your demands, and that when the system thereby adopted for the
+relief of public creditors shall have taken effect, the interest
+accrueing on the balance due to you, will be punctually remitted.
+
+If, Gentlemen, this arrangement shall not prove satisfactory to
+you, I am further instructed to assure you, in the name of the
+United States, that all the means in their power shall be employed
+to discharge the principal sum due to you, as soon as the
+condition of the public finances will admit.
+
+I have the honor to enclose a copy of the above mentioned Act of
+the 18th of April for your better information on this subject, and
+take the liberty to add, Gentlemen, to the assurances just given
+on the part of my sovereign, that every effort in my power shall
+be made to comply with such ulterior orders as may be issued, as
+well as to render you any acceptable services in my power.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+REPORT TO CONGRESS ON AN EXTRACT FROM THE JOURNALS OF THE GENERAL
+ASSEMBLY OF PENNSYLVANIA.
+
+The Superintendent of Finance, to whom was referred an Extract
+from the Journals of the General Assembly of Pennsylvania, begs
+leave to report;
+
+That the said extract consists of two parts; the former whereof
+contains certain matters reported by a committee of that
+honorable House, in consequence of a conference held with the
+commissioner for settling the accounts of the said State, the
+which matters are reported by the committee, and appear to have
+been considered by the House as facts. The latter part contains
+reasonings upon the former, and resolutions in consequence
+thereof. Pursuing therefore the same line, the Superintendent of
+Finance must take leave to observe, that the former part of the
+said extract implies an inattention on his part to the orders of
+the United States in Congress, and an assumption of powers not
+delegated. He humbly prays to submit both of these charges to the
+wisdom and equity of Congress, who have long since had before them
+all the instructions given to the commissioners for settling
+accounts, together with a report on the reference mentioned in the
+extract; wherefore it is to be presumed, that if undue negligence
+or the arrogating of power had appeared, it would not have passed
+unnoticed.
+
+It is further to be observed, that the doubts stated by the said
+commissioner and the difficulties under which he is supposed to
+labor, must have chiefly originated in circumstances peculiar to
+himself, because that such doubts and difficulties have not
+occurred to the commissioners employed in other States, and
+because they would easily have been obviated by a careful
+consideration of the Acts and instructions in his possession;
+excepting only in one point, viz., "Whether charges for buildings,
+fences, wood, &c. damaged or destroyed by continental troops, or
+militia, are to be allowed?" This question (which can only be
+resolved by special Act of Congress) is not to be found among
+twelve questions proposed by the commissioner to Congress; but
+among nine proposed to the Superintendent of Finance.
+
+It is stated in the said extract, "that by the instructions from
+the Office of Finance to the said commissioner, he is enjoined a
+strict attention to the resolve of Congress of the 23d of August,
+1780, _touching all certificates generally_; that this resolve
+introduces an entire new method of granting certificates; that to
+require those new forms in certificates, granted before they were
+instituted, is requiring an impossibility, or (in other words) is
+_a refusal to liquidate any certificate given before the 23d of
+August, 1780_." Were this the case, doubtless there would be
+sufficient cause of complaint and sharp animadversion; but the
+Acts and instructions, all which are in possession of Congress,
+will show the state of facts to be as follows. The Act of Congress
+of the 20th of February, 1782, speaking of the commissioner
+contains the following words; "That he be also fully empowered and
+directed, to liquidate and settle, in specie value, all
+certificates given for supplies by public officers to individuals,
+and other claims against the United States, by individuals for
+supplies furnished the army, the transportation thereof, and
+contingent expenses thereon, within the said State, according to
+the principles of equity and good conscience, _in all cases which
+are not or shall not be provided for by Congress_." Under this Act
+of Congress, the Controller of the Treasury issued certain
+instructions, which were approved of by the Superintendent of
+Finance, thereby directing each of the several commissioners "to
+open an account with the principal of each department, for the
+time being, and with every person who is properly accountable for
+articles purchased by or delivered to him. In which _they must be
+changed respectively with all such articles, and for which they
+are to account with the commissioners appointed, or to be
+appointed to adjust the accounts of these departments respectively_."
+
+The Superintendent of Finance, in a letter to the commissioners of
+the 7th September, 1782, after referring to the Controller's
+instructions, calls their attention to two particulars, the former
+whereof is not material to the present point, and the latter is as
+follows; "In settling the accounts with individuals, you will
+consider _that artful men have frequently taken advantage of the
+public_, and that, in many instances, _public officers have taken
+advantage of the weak and unprotected_. You will therefore always
+remember that _it is your duty to do justice_." The two
+commissioners who were first appointed after considering the Acts
+of Congress and the several instructions given to them, proposed,
+among others, the following question, "Whether certificates given
+to individuals are to be taken as they stand, and new ones given
+for their amount; or whether they are to be re-examined and new
+prices affixed to the articles _when they have been over or under
+charged_? The Superintendent and Controller entered into a
+consultation together, and the following answer was returned.
+"Certificates given by quarter masters or commissioners to
+individuals, must be re-examined, the articles shown, and their
+value determined, _that the receiver of them may be charged and
+made accountable to the commissioners appointed for the respective
+departments_. See resolutions of Congress of the 23d of August,
+1780, relating to them, which must be strictly attended to."
+
+This question and answer is regularly transmitted by the
+Controller to all the commissioners appointed to adjust the
+accounts between the individual States and the Union. The
+commissioner for the State of Pennsylvania, had therefore the
+matters above recited in his possession when he proposed to
+Congress the following questions. "Are certificates or receipts
+given by quarter masters, commissaries, their deputies,
+assistants, agents, or other public officers for supplies
+furnished, before the 15th of September, 1780, to be taken as they
+stand, and new ones given for their amount, estimated in specie?
+Are certificates issued agreeable to the mode prescribed by
+resolution of Congress, 23d of August, to be taken up and new ones
+given?" These questions were, among others, referred to the
+Superintendent of Finance; who thereupon informed the commissioner,
+that the answer thereto was in the Act of Congress, the letter from
+the Superintendent, and the question and answer above quoted. Surely
+there is nothing in either which _requires the forms prescribed by the
+Act of the 23d of August, 1780, in certificates granted before they
+were instituted_. The commissioner is indeed referred to that Act, and
+directed to pay attention to it; but the evident construction of this
+order, limits it to certificates issued under the Act. And even if
+that were not the case, yet when the whole of the instructions (or
+rather the answers) which are complained of, is taken together, there
+cannot be the shadow of a doubt. For among the commissioner's
+questions to the Superintendent is the following; "How are claims for
+supplies furnished, or services performed by an individual, who is
+destitute of a certificate or any kind of voucher, having only a bare
+charge against the United States for the same, to be settled? Will the
+oath or affirmation of the claimant make the charge good?" And he
+shortly after asked Congress, "How are claims for supplies furnished
+for public use by an individual, who is destitute of a proper voucher,
+to be authenticated?" To both these queries the answer given by the
+Superintendent, (and which forms part of the instructions complained
+of) is as follows. "They relate to the same point, viz. _What evidence
+shall establish claims?_ It appears, that the article passed in favor
+of the claimant must charge some other person, and that public notice
+is to be given of the times and places of settlement, that both
+parties may attend. Under these circumstances, if the demand is
+grounded on _principles of equity_, and the evidence produced
+satisfies the _conscience_ of the commissioner, he is bound to pass
+it, _by the Act of Congress_." Now it must be remembered, that the
+commissioner is (by the Act under which he was appointed) empowered
+and directed to liquidate, &c. _according to the principles of equity
+and good conscience, in all cases which are not or shall not be
+provided for by Congress_. The answers therefore given by the
+Superintendent to his questions, are no more than applications of the
+Act, to the doubts which he had suggested. It is more than probable
+that if the honorable Assembly of Pennsylvania, had communicated with
+the Superintendent on this subject, they would not have assumed the
+same ground of reasoning which they appear to have done.
+
+It is alleged in the said extract, "that certificates given for
+personal services, wages or hire, are rejected;" in answer to
+which it can only be said, that if the claimants are officers or
+persons acting in any of the departments, the certificates ought
+to be rejected by the commissioner for the State, because such
+accounts are to be liquidated by the commissioners of the
+departments respectively; but if other claims have been rejected
+by the commissioner, he must have been under the influence of some
+misapprehension.
+
+As the honorable Assembly have, through their delegates, proposed
+certain resolutions, it will be proper to examine the reasoning
+which led to that proposition. And first, it alleged, that "if an
+exact account is _really_ wanted of the specific articles for
+which any certificate was given, it may be found in the receipts
+given by the party, at the time of getting his certificate, and
+that these receipts are in the power of the public, being lodged
+with the heads of the different departments." Surely such an
+assertion is somewhat hazarded. Congress have before them full
+evidence, that many persons, late officers in the civil
+departments, refuse to account at all. If, therefore, such persons
+should even possess the supposed receipts, still those receipts
+are not _in the power of the public_, nor will they be so until
+all the States have passed laws similar to those of the State of
+Pennsylvania. But further, it will on inquiry appear, that when
+individuals received certificates from public officers, the
+receipts they gave did not always contain a list of the articles,
+or account of the services which had been rendered. Certainly,
+where any fraud was designed, a specification of articles was of
+course avoided; and in many cases it has been neglected, even
+where nothing wrong was intended. The idea therefore that the
+specific articles are contained in the receipts, is as unfounded
+as that those receipts are in the power of the public.
+
+But supposing the facts were such as they are assumed to be, will
+it follow, that the officers have in no instance, been guilty of
+collusion with individuals, and given more than they were worth
+both for articles and services? And will it not appear, that an
+exact account of the specific articles is _really_ wanted, and
+indeed absolutely necessary, for the detection of such abuses? Or
+if it be supposed that all the inhabitants of Pennsylvania were so
+honest and so disinterested, as neither to partake in fraud, nor
+take advantage of negligence, must it also be presumed that the
+public officers, acting within that State, have in no cases
+whatever seized the property of individuals and given certificates
+for less than the value? Or if it be imagined, that the officers
+and the individuals have been all alike innocent, and that the
+clamors raised on these subjects are totally groundless as to
+Pennsylvania, will it follow that such things have not happened in
+any other State? Or will it be proper to establish different rules
+for the settlement of public accounts, under the idea of honesty
+in one State and the want of it in another?
+
+It is however assumed, as a position, that "any frauds which have
+been committed cannot be detected in any other place, so well as
+by the commissioners who settle the general accounts, at the heads
+of departments." But surely it is necessary, not only to the
+detection of frauds, but even to the settlement of accounts at
+all, that the commissioners acting in the several States, obtain
+accounts of the articles before they pass the sums. If, for
+instance, the public officer should by collusion with the party,
+make a charge of double the sum actually due for any article, can
+a deduction be made after the sum has been passed to the
+individual by the state commissioner? If the officer should omit
+to charge himself with articles purchased, can this be proved,
+when only the money certificate is produced against him? If the
+officer paid, by a certificate, the nominal sum for articles
+purchased, a year before, will this appear in such manner as to
+prevent him from taking all the benefit of the depreciation? If,
+for instance, he purchased to the amount of two hundred thousand
+dollars, when money was at two for one, paid in certificates when
+it was at four for one, and carried the articles to account at a
+reasonable specie value, viz. one hundred thousand dollars, and
+if the certificates be now liquidated at their value, viz. fifty
+thousand dollars, would he not be gainer of the like sum of fifty
+thousand dollars merely by the depreciation? It is also asserted,
+"That the holders of certificates are subjected to many
+inconveniencies from this delay, and that after _coming from the
+remote parts of the State_, and having a liquidation of their
+certificates refused, they depart with murmurs and discontent." If
+holders of certificates came from _remote parts of the State_, and
+the Act of Congress of the 20th of February, 1782, intended to
+afford relief, becomes thereby a source of distress, it must arise
+either from the ignorance of the people themselves, or from a want
+of attention in the commissioner; for by the Act it is ordained,
+"that the commissioners respectively give public and early notice
+of the _times_ and _places_ of their settling, and the _districts
+within which_ they settle accounts, that as well the public
+officers as private individuals, may have an opportunity to
+attend." From the whole scope and tenor of the Act, as well as
+from the express words of this particular part, it appears clearly
+to have been the intention of Congress, that the commissioner
+should mark out convenient districts in the State, take some
+proper position in each district, and then give such early _public
+notice_ of the _place_ and the _district_, as that claims arising
+from transactions _within that district_ might be brought in and
+adjusted, and both the public officer and the private individual
+concerned in the transaction, have an opportunity of attending.
+
+As the honorable Assembly have marked out a different mode of
+settlement from that which has been adopted, it may be proper to
+take a general view of the present and of the proposed plan, so as
+to discover the inconveniencies resulting from each, and thence
+determine which ought to be preferred. Under the present plan, the
+first step of the commissioner is to mark out some particular
+spot, with a convenient surrounding district, within which the
+parties may attend, without the waste of time and the expense of
+long journeys. The next is to give _early public_ notice thereof.
+Supposing then the time to have arrived, which he had specified in
+his advertisement, and a claimant to appear, the first question to
+be solved is, whether that claimant be one of those whose demands
+are to be adjusted by him, or whether it is the business of a
+commissioner of one of the departments. Supposing the former, the
+next object of inquiry would be, whether any and what services or
+supplies were rendered by the claimant to the United States, and
+if any were rendered, then what was the real value at the _time
+and place_ of rendering them. Every kind of evidence exhibited in
+support of each point is then to be examined, the officer who is
+said to have received the articles is to be heard, if he contest
+the claim, and, finally, the commissioner being in the vicinity of
+the place, with opportunity to learn both the acts done and the
+characters of the agents, must decide _according to equity and
+good conscience_, where no express provision is made by an Act of
+Congress. If this decision be in favor of the claimant, the
+business of the commissioner is to give a certificate for the full
+value of the articles and services, and then to charge the proper
+officer and department, not with so much money, but with the
+specific articles and services, for the due application whereof
+account is to be rendered to the commissioner of the department.
+
+A duty of the State commissioner, in the course of this business,
+will be to discover and detect as much as possible the frauds
+which have been committed, and transmit proper evidence, as it may
+arise, to the commissioner of the department. In cases, however,
+where the decision is against the claimant, it will be proper
+still to return to the commissioner of the department a statement
+of the claim, that if it should be found to be credited to the
+public, in the accounts of such department, the party may meet
+with redress at a future period. The inconveniencies attending
+this mode are, that possibly some just claims may be finally
+rejected from the want of sufficient proof, and that some honest
+claimants may be put to trouble and difficulty in supporting their
+claims.
+
+The proposed plan appears to be shortly this, _that the
+commissioner shall liquidate every certificate which may be
+tendered to him in specie value_. If, however, the restriction
+implied in the Extract, by the words "that no delay be given to
+any certificate granted by an officer who has settled his public
+accounts," &c. be made, viz. that the liquidation of such
+certificates be suspended until the accounts of the officer who
+gave them be settled, it is humbly conceived that such liquidation
+can never take place; because, as the public have assumed the
+debts of their officers, it is impossible to settle the accounts
+of those officers, until the amount of their debts be known; those
+debts forming a charge against the officers in the same manner as
+the moneys advanced to them from the public treasury. The
+settlement of the officers' accounts must, therefore, ultimately
+depend on the settlements made with individuals, and therefore
+this restriction must be rejected or the whole plan prove
+abortive.
+
+The proposition of the honorable Assembly may then be examined and
+considered as of the effect which is just now stated. And if that
+proposition be adopted, the commissioner sitting in one corner of
+the State and examining claims and certificates brought from two
+or three hundred miles distance, without the slightest attention
+to the value of articles for which money is claimed, will be
+exposed to every kind of imposition. Certificates will be
+counterfeited, pretended depositions will be produced, fabricated
+accounts will be delivered, vast sums will of course be
+acknowledged as due to whoever may please to demand them. The
+officers will (and very justly too) refuse to account for such
+sums, the frauds which they will detect in claims allowed by the
+State commissioners will cast a cloud even upon the just claims,
+and the commissioners for the departments will for that reason be
+unable to insist on any. Thus the officers will be empowered in
+their turn to render such accounts as they think proper. So that
+on the whole, the public debts will be greatly and unnecessarily
+accumulated, and a precedent will be established to sanctify every
+improper act which may hereafter be committed in times of
+confusion.
+
+These are public inconveniencies, and from a comparison of the two
+plans one important question arises, shall the public property be
+given away, and the country be taxed for the purpose of paying
+moneys not justly due; or shall individuals who have claims on the
+United States be obliged to validate such claims by sufficient
+evidence? Surely the honorable Assembly of Pennsylvania will not,
+cannot hesitate, in deciding this question. All which is humbly
+submitted.
+
+ ROBERT MORRIS.
+
+ _Office of Finance, November 5th, 1783._
+
+ * * * * *
+
+TO JOHN ADAMS.
+
+ Office of Finance, November 5th, 1783.
+
+ Sir,
+
+I am honored with your Excellency's favor of the 28th of July from
+Amsterdam, for which I pray you to accept my acknowledgements. I
+am perfectly in sentiment with you, that it is best to avoid
+government interference in the affair of our loan. If there were
+no other reason I should not like the demand of grateful
+acknowledgement, which would be erected on that foundation. We
+hear enough already of our national obligations, and I most
+heartily wish for my own part, that we could at once acquit them
+all, even to the uttermost farthing, for I seriously believe, that
+both nations and individuals generally prove better friends when
+no obligations can be charged nor acknowledgements and retributions
+claimed on either side.
+
+I am also very strongly in opinion with you, that remittances from
+this country would greatly uphold our credit in Europe, for in
+mercantile life nothing vivifies credit like punctuality and
+plenteousness of remittance. The plan you propose to obtain them,
+might also be attended with some good consequences, but there are
+impediments in the way of its success, which it would be tedious
+to detail, and which indeed you could not be so perfectly master
+of without being on the spot. I shall not, therefore, go into that
+matter at present, and the more especially as we have now good
+hopes, that the plan of Congress will be adopted by the States.
+Last evening I received advice, that Massachusetts had acceded,
+and I have a double pleasure in announcing this to you, as they
+certainly would not have come in but for the sentiments contained
+in your letters.
+
+Let me then, my Dear Sir, most heartily congratulate you on those
+virtuous emotions, which must swell your bosom at the reflection,
+that you have been the able, the useful, and what is above all
+other things, the honest servant of a Republic, indebted to you in
+a great degree for her first efforts towards an independent
+existence. That you may long live to enjoy those pleasing
+reflections, which flow from the memory of an active and
+beneficial exercise of time and talents, is the sincere wish of
+your most obedient and humble servant,
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS WILLINK & CO.
+
+ Office of Finance, December 31st, 1783.
+
+ Gentlemen,
+
+Upon the 21st of October I valued on you to the amount of seven
+hundred and fifty thousand guilders as expressed in my letter of
+the 23d of that month, and in the beginning of this month having
+received your letter of the 4th of August, and concluding as well
+from the contents of that letter as from the actual state of
+things here, that you would be successful in the succeeding
+months, I gave notice to the gentlemen to whom I had sold the
+bills mentioned in my said letter of the 23d of October, that I
+should discount their notes, which has been done accordingly.
+Thus the United States are become liable to pay any damages, which
+those gentlemen may sustain, if, in consequence of delay their
+bills may meet with, those drawn by them in consequence of a
+reliance on your funds should return protested. The United States
+will also be liable to the damages, which might arise on my
+further bill drawn in favor of Mr Haym Solomons for one hundred
+thousand guilders on the 12th instant, and mentioned in my letter
+of that date.
+
+Under these circumstances, Gentlemen, and unable to judge what
+delays the loan may have met with from the causes you have
+mentioned, or from any other, being also uncertain how far it may
+have been or may be accelerated from other causes, I must request
+that in any case whatever all my aforesaid bills may be accepted.
+You will see from the enclosed copies of letters to the receivers
+of Virginia and South Carolina, that I am taking measures to put
+you in cash for any advance which such acceptances may render
+necessary. These measures are intended with the double view of
+providing for the interest of your loan or of reimbursing your
+advance. In the former case you will be in cash before the
+interest falls due, but at any rate you shall be secured. The
+disbandment of our army having brought our expenses within the
+revenue, there remains an excess, which cannot fail to reimburse
+you even if the loan should totally fail. For I cannot suppose,
+that you will be much more than half a million in advance, and I
+am certain that the excess of taxes for current services would
+easily pay this sum in four or five months, and I am equally
+certain that I could by anticipation bring that excess forward to
+your relief at an earlier period if necessary.
+
+My request to you, therefore, Gentlemen, is this, that you accept
+my bills at any rate, whether you have funds or not, and whether
+you have or have not the probability of receiving them. If the
+payments fall due before you find relief, take such measures to
+obtain money as shall under a view of all circumstances produce
+that effect with the least loss to the United States. Of these
+measures I leave to you the entire disposition, and I promise you
+on the part of the United States to reimburse all losses,
+interests, costs, and charges, which may accrue thereupon. You
+will be pleased, Gentlemen, to give me very early notice of your
+situation, and to point out very particularly the sums which may
+be needful, and also the articles of this country, which will
+probably form the best remittance, and on my part I promise to
+take the earliest measures for making you such remittances. I
+shall confidently rely on your efforts, and remain with perfect
+respect, Gentlemen, your most obedient servant,
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS WILLINK & CO.
+ Office of Finance, December 31st, 1783.
+
+ Gentlemen,
+
+Your advices of the 26th of September, that the success of our
+loan with you had been greatly impeded by reports, propagated on
+the part of Great Britain, did not a little surprise me. In my
+letter of the 12th of this month, I have given you some slight
+sketch of the mutiny of a few troops near this city, and this
+perhaps may be among the circumstances, which have militated and
+been magnified to our disadvantage. But as I did not then, so I do
+not now think it worth while to mispend time by the history of a
+trifling thing, which has no importance in itself, and which might
+derive some by treating of it seriously. It has always been the
+common trick of the British and their adherents to assert, that
+America had neither government, armies, nor resources. To all
+which, I answer, that America has established her independence.
+Far be it from me to attempt an injury to the credit of any other
+nation; on the contrary, let those who would rather trust England
+than America, make the experiment, and if it prove beneficial, let
+them rejoice; if it prove otherwise, I shall pity the sufferers.
+
+I should not, indeed, be greatly surprised, that our credit were
+impaired in any of the absolute monarchies of Europe, because that
+such governments have no proper ideas of the sacred regard, which
+is due to pecuniary engagements taken by the public, and because
+the people have no conception that the government should be unable
+to command all the wealth of its subjects. But in your country, it
+is an every day's experience, that determinations of the
+States-General should meet with obstacles in the different
+Provinces, and this has been precisely our case in the business of
+finance. No State has insinuated, that our public debts ought not
+to be paid; nor indeed does any individual dare to hold up that
+idea. But differences have arisen about the mode of making
+provision for them, and such differences of opinion necessarily
+cause delay. It is, however, with much satisfaction, I inform
+you, that the different States are coming in one after the other,
+and I have strong expectations that all of them will soon accede
+to the plan of Congress, which I formerly transmitted. The
+government of this country has been vigorous enough to carry us
+through the war, and it would be strange indeed, if it should all
+at once become weak in that moment of peace, when other
+governments usually acquire strength.
+
+For my own part, I cannot believe that such ideas will take place
+among sensible men; but on this occasion, I will show to his
+Excellency, M. Van Berckel, the letter I am now writing, and
+desire him to write candidly to you and to others his sentiments
+as to the state of this country, whether the people are in peace,
+obedient to the laws and the government in due force, or whether
+we are a prey to discord, and our country the theatre of tumult
+and confusion.
+
+ I am, Gentlemen, &c.
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+ Office of Finance, January 13th, 1784.
+
+ Sir,
+
+The Secretary of Congress has transmitted to me the petition of
+John Cowper, with an order to report thereon. I must, on this
+occasion, pray leave to observe, that this, with a variety of
+other similar transactions, depends on the adjustment of the
+accounts of the Secret and Commercial Committees of Congress. In a
+letter of the 12th of August last, I had the honor to observe,
+that those accounts "were far from being inconsiderable, either
+as to their nature or magnitude; that they were involved with
+others, and had extended themselves to different parts of the
+United States, and to Europe, and the West Indies; that they were
+more connected with the Marine Accounts than with any others; and
+that the settlement of them was highly necessary." I took the
+liberty, also, then, to suggest the propriety of submitting the
+investigation of those accounts to the commissioner for settling
+the Marine Accounts, or of appointing a special commissioner for
+that express purpose.
+
+Since writing that letter, the Commissioner on the Marine
+Accounts, having been obliged in the course of his business, to
+look at the Commercial and Secret Committee Accounts, has not only
+discovered some balances due to the United States, but has
+reported other matters, which show in a strange point of light,
+the necessity of examining and settling those accounts. I think
+they could be more easily, speedily, and effectually settled by
+that gentleman, than by any other, and therefore the submitting of
+them to him, might be eligible in an economical point of view.
+
+I come now, Sir, to observe, which I am sorry to do, that my
+report on Mr Cowper's case must necessarily be suspended, until
+after a reference to the commissioner appointed to adjust the
+accounts of the Secret and Commercial Committees, I shall be
+possessed of such a state of facts, as will enable me to report
+with propriety.
+
+Before I close this letter, I must also observe, that as the
+accounts in question originated with, and were under the
+superintendence of members of Congress, it is a kind of duty,
+which Congress in their political capacity owe to themselves, to
+trace the applications of money through those channels with the
+same attention, which has very properly been applied to other
+public expenditures.
+
+ With perfect respect and esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS LE COUTEULX & CO.
+
+ Office of Finance, January 13th, 1784.
+
+ Gentlemen,
+
+I some time since drew a bill for two hundred and fifty thousand
+livres, on Messrs Wilhelm and Jan Willink Nicolas, and Jacob Van
+Staphorst, De la Lande and Finje, merchants at Amsterdam, in favor
+of Mr John Ross. This bill was drawn on the credit of the loan
+opened under the direction of those gentlemen, and in consequence
+of flattering accounts of its success, which I had just then
+received. I find that Mr Ross has remitted this bill to you, and
+is actually drawing on the credit of it. Some late advices from
+Amsterdam give me reason to apprehend the possibility of a
+nonpayment of this bill, and therefore I am now about to make to
+you the request of a favor on the part of the United States. It
+is, Gentlemen, that you would place this sum to the credit of Mr
+Ross at the day when the bill falls due, whether it be paid or
+not, and whether in the whole or only in part, taking the bill up
+for the honor of the United States. You will then immediately give
+me notice of the sum, which, by this means, your credit is
+advanced for, and I will take care to make you remittances for
+amount of the principal and interest of that sum, nor will I quit
+my office until you are fully repaid. At the same time you will
+probably also find some relief from the further produce of the
+loan; as the causes which impeded its progress during the months
+of August and September, have long since been removed. And indeed
+I still expect, that the success of it will enable the punctual
+payment of Mr Ross's bill, and only write this letter out of
+prudence and for the greater caution.
+
+You will observe, Gentlemen, that I have two objects in making
+this request, one is to save the credit of the public, which might
+materially suffer by the coming back of this bill, and the other
+is to prevent the payment of twenty per cent damages, which would
+be the eventual consequence, over and above the private injury,
+which Mr Ross would sustain in his personal credit. If, Gentlemen,
+you have a sufficient confidence in me and in my country, you will
+comply with this request, provided your own convenience will in
+anywise permit. If you have not that confidence, I must lament it
+as a misfortune.
+
+ I am, Gentlemen, yours, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, January 16th, 1784.
+
+ Sir,
+
+I do myself the honor to transmit to your Excellency the copy of a
+letter from David Sproat; I should not trouble Congress with it if
+the supplies mentioned had been advanced to persons taken in the
+service of the United States. As it is I should suppose an express
+appropriation of money to this purpose to be necessary; Congress
+can best judge whether that be proper, but if I were to express an
+opinion, it would be, that the payment of such debts is the most
+effectual mode of providing for those disastrous accidents, which
+the citizens of America are liable to in common with the rest of
+mankind.
+
+ I am, Sir, respectfully, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, January 21st, 1784.
+
+ Sir,
+
+I do myself the honor to enclose the extract of a letter of the
+10th instant, from the Quarter Master General. The latter part of
+it, referring to a matter which he has long since brought before
+Congress, I shall not take the liberty of meddling with.
+
+In the former part, he alludes to a letter of the 27th of October
+last, in which he had stated to me the claims of individuals for
+damages done by the army. Instances are mentioned peculiarly
+distressing, and of a nature to require compassion while justice
+demands for them somewhat more. I did not on the receipt of this
+letter address Congress on the subject of it, because the making
+any particular provision for the cases of individuals, is laboring
+to very little purpose, and by stilling the cries of one only
+raises the clamors of hundreds. This indeed was the remote cause
+of the Quarter Master's letter, for the resolution passed in the
+case of Stephen Moore, had given activity to the complaints of all
+those who knew of that resolution, and labored under similar
+grievances. But a stronger reason for not troubling Congress on
+the subject, was that I had already brought it before them in a
+letter of the 12th of August last. The following is an extract
+from that letter.
+
+"There is, however, among the commissioner's questions to me, one
+which Congress alone can answer in the affirmative; viz. _are
+charges for buildings, fences, wood, &c. damaged or destroyed by
+Continental troops or militia, to be allowed?_ Considering the
+extent and magnitude of this object on the one hand, and on the
+other, what serious injuries have been sustained by some
+individuals, the question is equally intricate and important. No
+answer has yet been given, although not unfrequently agitated, as
+the journals will testify. Whether Congress will leave it on the
+present footing, or order such damages to be allowed, or (making a
+distinction between wanton devastations and necessary impressure)
+leave the officer to account in one case and the public in
+another, or finally whether they will take a course between all
+these and order the accounts to be liquidated and reported, but
+the balances not to be finally allowed and certificates given,
+until their further order, are questions which it is in their
+wisdom to determine by that extensive view of things which they
+possess."
+
+I shall take the liberty to observe to your Excellency, that
+claims of this kind become daily more urgent. The people
+recovering by degrees from their despondency as to the settlement
+of their old accounts and beginning to feel some hope of eventual
+payment, and of consequence a firmer reliance on and belief in the
+justice of the United States, naturally look forward from the
+measures already taken to those which prudence and equity may
+still further dictate. Some provision ought certainly to be made;
+but I must repeat that the object is not only great as to the
+pecuniary amount; but extensive as to place, persons, claims and
+circumstances. The caution hitherto preserved was therefore wise,
+but it can no longer be adhered to, because the idea held up to
+every applicant, was that after a termination of the war, and not
+before, provision should be made.
+
+I take leave also, further to observe to your Excellency, that
+there is a material distinction to be made, even among such of
+these claims as are otherwise similar, according to the times in
+which the respective causes of them may have originated, as
+whether they were previous or subsequent to the commencement of
+the year 1782; claims for supplies obtained during the latter
+period, ought certainly to be considered as within the appropriations
+of money demanded for the current service, the quotas of which yet
+remain unsatisfied. In order then that this matter may come before the
+United States in Congress in such regular form, as that some decision
+may be made, I shall submit to their wise consideration the following
+Act.
+
+Whereas, the late wasteful and expensive war, is now by the
+blessing of divine Providence finally terminated, and whereas,
+divers citizens of these States have during the course thereof
+sustained various injuries and damages, as well by the armies of
+the United States as otherwise, by the operations and effects of
+the war. And whereas, no provision can as yet be made for the just
+relief of the sufferers, neither can it be determined to whom such
+relief may be due. And whereas, it is the indispensable duty of
+every Government, in all things to the utmost of their power, to
+do what to right and justice may appertain. Be it therefore
+ordained by the United States in Congress assembled, and it is
+hereby ordained by authority of the same, that each and every of
+the commissioners who are or may be appointed in pursuance of the
+resolutions of Congress of the 20th day of February last, be and
+they hereby are authorised and directed to receive within the
+States, to and for which they are or may be appointed respectively,
+all claims and demands made by individuals for damages done to or
+sustained by them within such State, during the late hostilities and
+by reason thereof; whether the same have been committed and done by
+officers or soldiers, acting under the authority of Congress, or by
+the enemy. And be it further ordained by the authority aforesaid, that
+the said commissioners do require and receive such evidence with
+respect to each and every such claim as they shall judge fitting and
+proper according to the nature and circumstances of the case
+respectively, and where due evidence is produced in support of such
+claims, that they do liquidate and adjust the same according to equity
+and good conscience. Provided always, that the said commissioners
+shall not give to the claimants any certificates or other evidence of
+such adjustment. And be it further ordained by the authority
+aforesaid, that the said commissioners respectively do from time to
+time make return to the Superintendent of our finances, of the amount
+of each and every such claim, and the time when the same arose,
+whether previous to the 1st day of January, 1782, or subsequent to the
+last day of December, 1781; specifying clearly in the said return the
+nature of every claim in such full and ample manner, as that when the
+same shall be laid before the United States in Congress, for their
+investigation, they may be thereby enabled to make such further order
+in the premises as to right and justice may appertain.
+
+Before I close this letter, I will trouble your Excellency one
+moment longer to assign my reasons for extending this provision
+to the case of damage done by the enemy. The investigation does by
+no means imply any recompense from the United States. But if there
+should be cases where such recompense is proper, the materials on
+which to judge will by this means be prepared. The object however
+is to ascertain the damages done by the enemy, which will in this
+way come forward, so as that an account thereof can be made out
+with exactness to answer any purposes, which future negotiations
+with Great Britain may render necessary. To this I would add, that
+the expense of the business will be so trivial as not to be worthy
+of consideration, when compared with the advantages to result from
+it.
+
+ I have the honor to be, with perfect esteem, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, January 24th, 1784.
+
+ Sir,
+
+The re-establishment of peace having at length given room for the
+proper investigations, it becomes in me a duty of public justice
+to mention to Congress the situation of those persons in Canada,
+or out of it, who are creditors to the United States for property
+furnished or services rendered in that country. To these may
+perhaps be added those who have claims for damages sustained.
+Persuaded, as I am, that unless some general arrangements be taken
+on this subject, it will occasion a great expense of time and
+money, together with the loss of reputation, I think economy as
+well as justice calls for a due attention to the subject in the
+present moment.
+
+I submit then the following ideas, not as being a perfect plan,
+but merely as hints to be perfected by the wise care of the United
+States. And first, it might be proper, that a commissioner were
+appointed _to go into Canada_ for the purpose of examining into
+the several claims above mentioned, with power to liquidate the
+same, and to give certificates of the amount. If it be a desirable
+thing that justice be done, it is a necessary thing that the
+inquiries be made on the spot. There and there alone, can the due
+investigations take place, so as to prevent either the public or
+individuals from being defrauded. Besides it will not cost more to
+maintain a commissioner there than it will here, and many who have
+been both distressed and oppressed are confined to that spot by
+their circumstances. It may also appear to be of some importance,
+that by doing justice to these people unsolicited we secure their
+affections; which will prevent Great Britain from using them
+hereafter against us. Neither will it escape the attention of
+Congress, that such a commissioner may transmit useful intelligence.
+But this being rather in the Department of Foreign Affairs, I shall
+not enlarge on it.
+
+A natural question will probably arise, as to the means of
+payment. This may be answered by applying a like question to the
+case of other public debts. But I conceived that another, if not a
+better answer may be given. If a new State were set off about
+Detroit, and the lands sold to all inclining to purchase, with
+permission to pay in certified Canadian debts, not only as
+specie, but even at a premium of five per cent, the lands would
+pay the debts, and the United States would gain more than the
+amount of the payment by the very act of making it. For an equal
+if not greater number of persons than the creditors in Canada,
+would become settlers from that country, and bring with them
+property beyond their purchase money. Nor is that all; such State
+would became a barrier of infinite importance. It would secure
+eternal peace with the Indians, and it would secure the Indian
+trade. For it would soon place the principal traders at that spot
+in the character of American citizens.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, February 2d, 1784.
+
+ Sir,
+
+I have delayed answering your Excellency's favor of the 4th of
+last month, in the hope that I might have been able to announce to
+you the having sent off the duplicate of the definitive treaty.
+Hitherto no opportunity has offered. But as Colonel Harmar has
+sailed, and probably Lieutenant Colonel Franks, I am not so
+anxious on that subject as I have been.
+
+ With sincere esteem, I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS LE COUTEULX & CO.
+
+ Office of Finance, February 12th, 1784.
+
+ Gentlemen,
+
+Previously to my letter of the 13th of January, I had received
+yours of the 10th of September and 18th of October. In one of my
+said letters I requested you to come under acceptance for Mr
+Ross's bills, although my public bill in his favor should not be
+accepted. But Mr Ross assures me that he has not yet drawn, and
+promises that he will not draw on the credit of that bill until my
+advices from Europe shall warrant it. So that my precaution in
+this respect was unnecessary. Neither is that bill to be protested
+if not paid when it falls due, but it is to be held by you for Mr
+Ross's future orders. Those advices which I have lately received,
+are far from being agreeable, and it is probable that my letters
+written to Dr Franklin in consequence of them may induce him to
+apply for your friendly aid to prolong the time of payment of some
+bills, which I had drawn on the credit of that loan, and which to
+my great surprise the negotiators of it were not in cash to
+answer. Should he make any such application, Gentlemen, I am to
+request that you will come in with your extensive credit, to
+support that of the United States; and you may rely that I will
+take care, by proper and speedy remittances, finally to absolve
+your engagements.
+
+I have this day given to the house of Peter Whitesides & Co. my
+bill on you, (number ninetyseven) payable at ninety days' sight,
+and for three hundred thousand livres. I am to desire your
+acceptance of that bill, which I have drawn, to prevent, if
+possible, the protest of bills drawn by that House in consequence
+of one of my said bills on Amsterdam; to put you in cash for that
+sum, I have purchased already seven hundred hogsheads of tobacco,
+now lying ready for shipment at Alexandria in Virginia, and
+directed farther purchases, as also the chartering of vessels to
+carry it to Europe. I shall make you a shipment of from seven to
+eight hundred hogsheads as soon as the weather will permit, for at
+present all our navigation is shut up by the ice. This tobacco
+shall be shipped to your order at L'Orient, and I think, that with
+every allowance for delay, it must leave the Chesapeake by the 1st
+of April at farthest, and will arrive within two months after the
+bill shall have been presented. The sales of it will therefore put
+you in cash to answer the bill. But to render the matter as safe
+as possible, you shall have early advices, so as to make the
+insurance, which will answer the bill should the tobacco fail.
+After all, Gentlemen, it is possible that you may be in advance
+for a short time. But I make not the least doubt, that you will
+cheerfully go into the proposed operation, at present necessary to
+the United States, and which (that necessity out of the question)
+is in itself among the best kinds of commercial transactions. In
+order, also, to place you more perfectly at your ease, I agree to
+make good any expense, which may be incurred, by negotiations to
+prolong the payment, should it be inconvenient for you to make the
+actual advance, and should such advance become necessary by
+accidents of the sea or other unforeseen circumstances. But at
+all events my said bills must be honored.
+
+ With esteem and respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MR GRAND.
+
+ Office of Finance, February 12th, 1784.
+
+ Sir,
+
+The last letter which I have received from you is of the 12th of
+September, and in that you have left a blank for the amount of
+funds received from Amsterdam, and inform me, that you expect
+again to apply for more, as Mr Barclay could not tell what sum he
+should be able to pay you nor when. My letters from Messrs Wilhelm
+and Jan Willink, Nicolas and Jacob Van Staphorst, De la Lande and
+Finje, announce to me a sum remitted to you beyond the idea which
+I had formed of your wants; and the consequence of it is, that
+bills I had drawn on them remained unprovided for. Not having
+received letters from you in so long a time, it is impossible for
+me to guess at the exact state of your accounts; but if Mr Barclay
+has placed in your hands the sums which I expected he would have
+done, it appears to me that the United States must have been
+considerably in advance to you, at the very moment when my bills
+were in the critical situation above mentioned. I shall not,
+however, draw any conclusions on this subject before I receive
+those advices from you, which I am in the hourly expectation of.
+As I do not know whether any effectual measures have yet been
+taken to provide for the bills, which I had drawn, and which the
+Houses in Amsterdam were not in cash to answer, owing to a sudden
+failure of the loan intrusted to their management, I have written
+to Dr Franklin on that subject, and am now to request your aid in
+the business, so that time may be given for the arrival of those
+remittances, which I am making to provide for the consequences,
+should the loan continue unproductive. On this occasion I
+confidently rely on your efforts, and I persuade myself, that the
+credit of the United States, so long preserved in Europe, through
+doubtful and dangerous events, will not now be suffered to expire
+for the want of a very little timely aid and attention.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+ * * * * *
+
+TO MESSRS WILLINK & CO.
+
+ Office of Finance, February 12th, 1784.
+
+ Gentlemen,
+
+On the evening of the 9th instant I received your letters of the
+20th of November and 1st of December. The intelligence contained
+in these letters, so far as concerns the loan under your
+direction, and the bills which I had drawn upon the credit
+thereof, is very far from being agreeable.
+
+The tenor of your last letter, renders it necessary for me to
+obviate the constructions put on my conduct in drawing to that
+extent. And this is easily done, for it appears by your letters
+now before me, that the total of those bills for a million, did
+not exceed the funds actually in your possession, by above six
+hundred thousand guilders, and if the second expedition of tobacco
+be deducted, that excess cannot be considered as going beyond five
+hundred thousand. Now, Gentlemen, I have already told you, that
+Mr Grand's drafts exceeded my expectation; but we will put this
+out of the question for the present, as I shall write on that
+subject to him; but you will observe, that your letters announcing
+the decline of the loan did not reach me until the close of the
+last year; and therefore I could not have calculated on so great
+an alteration. The occurrences in this country, which occasioned
+it have never appeared of any consequence to us who are on the
+spot, although, by exaggeration, they have staggered the minds of
+people in Europe. You will observe also, Gentlemen, that when my
+letter of the 1st of October was written, I had not received any
+letter from you of later date than the 11th of June. The
+intelligence mentioned in my letters as having come through an
+indirect channel, was contained in a letter from Mr Adams himself,
+and your letters written in the months of July and August
+confirmed that intelligence. All this will appear if you compare
+our correspondences, and place yourselves in the situation, which
+the long passage of your letters of the 4th, 11th and 26th of
+September placed me. The two first of these did not come to hand
+until a very few days ago, as you will observe that they are not
+acknowledged until the 9th instant. It has therefore been alike
+impossible for me to conjecture the hard fate of my bills, or to
+provide against it by seasonable remittances.
+
+But as I have already mentioned, the sum total of the advance,
+which those bills could have occasioned would not exceed five
+hundred thousand guilders, payable in all the month of March,
+supposing that the loan should produce nothing in the whole
+winter. By a circuitous negotiation this payment might have been
+prolonged without difficulty, and you will see that the measures I
+am taking, even at this late period, would have produced the
+necessary funds in season. I have not indeed any right to expect,
+that you would risk so heavy a sum in reliance on me, but if you
+had done it I should have felt the obligation, and I think my
+conduct would have been such as to convince you that the
+confidence was not misplaced.
+
+Under the present very disagreeable circumstances, and not knowing
+whether Dr Franklin has complied with your proposals, I cannot
+take such decisive steps as I otherwise might. I enclose, however,
+a copy of the letter which I have written to him, and I shall
+proceed to make remittances, as soon as the weather, which now
+shuts up our navigation, will permit. The advices which I shall
+receive from Europe, while ships are lading, and which I daily
+expect, must govern me in the consignments; which is the reason
+that I can say nothing positive on that subject.
+
+If Dr Franklin has complied with your proposals, you will of
+course have accepted my bills to the extent of the million
+guilders. If he has not, it is possible that my letters to him may
+still arrive in season to prevent the protests for nonpayment. If
+however this should not be the case, I wish you to call on those
+who held the bills, and tender payment, on return of the bills, or
+on giving an indemnity against them; in which case you will also
+pay the costs of protest, interest which may have accrued, and the
+like. If they will not do this, you will then be pleased to
+transmit notarial certificates of your tender of such principal,
+interest and costs; and if your payments are accepted, to transmit
+immediate accounts thereof.
+
+With respect to the three bills, numbered one hundred and
+ninetyone, one hundred and ninetytwo, and one hundred and
+ninetythree, dated the 21st of October, for two hundred and fifty
+thousand guilders each, I have agreed with the Houses to whom I
+sold them, that they shall still lay to be accepted or not, as may
+hereafter be determined, and in the meantime the United States are
+to pay the interest of their advances to me until they can
+reimburse themselves, or are repaid by me, whichever shall
+eventually happen. The bill number one hundred and ninetyfour,
+dated the 12th of December last, for one hundred thousand current
+guilders, I purchased and remitted on my own private account, and
+have given orders that it be not returned to this country; so that
+on that subject you may also be at ease. I shall receive on my
+private account the interest of the forty thousand dollars paid
+for this bill, on the same principles with which I have settled
+for the other bills just mentioned. And by the way, you will see
+how great was my confidence in the success of your operations,
+when I have involved my own private fortune in the purchase, not
+only of that bill, but also of four hundred thousand guilders out
+of the million. All which was done because the demand for exchange
+on London being greater than on your city, I bought those bills,
+remitted them, and drew on my private account to replace my funds,
+merely with a view to facilitate the public service. In addition
+to the bills just mentioned, there is one which I request may meet
+due honor; it is number one hundred and ninetyfive, dated the 2d
+instant, payable at six months' sight, and for fourteen thousand
+three hundred and nineteen current guilders. This bill was drawn
+to replace bills drawn above two years ago at six months' sight on
+the American Minister at Madrid and protested for certain
+circumstances attending the negotiation of them; wherefore I was
+under the necessity of replacing them with twenty per cent
+damages, by a bill of equal dignity.
+
+ I am, Gentlemen, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO MESSRS WILLINK & CO.
+
+ Office of Finance, February 12th, 1784.
+
+ Gentlemen,
+
+I am to acknowledge the receipt of your favor of the 14th of
+October. My letter to you and the other Houses, will convey
+sufficiently my sentiments as to the disagreeable consequences
+occasioned by the ill success of our loan. I shall not here dilate
+upon that subject, which, for the present, I can only lament; for
+I agree, Gentlemen, with you, that urgency on your part would
+rather damp the spirits of monied men than increase their
+exertions.
+
+I see clearly, that if it were possible to convey an adequate idea
+of the wealth, extent, and power of this country, it would do a
+great deal towards exciting the favorable attention of mankind.
+But this is a very difficult thing, for the British Ministers, and
+even their Generals _in the country_, with all the pains they
+could take, and all the intelligence they could procure, were
+extremely ignorant of our resources. This is among the reasons why
+they pursued the conquest of America full three years after every
+sensible man in it saw that the thing was impossible.
+
+However, as you desire an account of our products, I will refer
+you to a very unexceptionable testimony, that of the British
+Ministers themselves, in a pamphlet lately published under the eye
+of the Court, by Lord Sheffield; in which the writer attempts to
+prove that we must trade with them whether they treat us well or
+ill. To show this, he gives certain facts, which, at least, prove
+that the British are our worst customers, so far as the sale and
+consumption of our produce is concerned. He proves, also, that if
+they have any advantage over others, it is what your countrymen
+may have in an eminent degree over them; I mean the securing a
+great part of our trade by giving credit to our solid mercantile
+houses.
+
+But to return from that digression to the principal object of this
+letter, viz. the actual and probable resources of America. Let it
+be remembered, that a century ago the place from which this letter
+was written was an unlimited forest; that the whole State of
+Pennsylvania did not produce enough to support five hundred men
+after the European manner, and that every other part of America
+was, a little earlier or a little later, in the same situation.
+But now this very city is worth more than all the public and
+private debts put together, which we owe to Europe.
+
+M. Van Berckel has convinced me, Gentlemen, of your good will, and
+zealous endeavors to promote the interests of America. And I
+flatter myself that not only his representations, but my own
+conduct, will convince you of the just sense I entertain of those
+endeavors.
+
+ With esteem and respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, February 12th, 1784.
+
+ Dear Sir,
+
+Three days ago I received, in a letter of the 1st of December from
+Messrs Wilhelm and Jan Willink, Nicolas and Jacob Van Staphorst,
+De La Lande and Finje at Amsterdam, a copy of their letter to you
+of the 30th of November. Enclosed you have a copy of my answer of
+this date. I flatter myself that you will not have suffered the
+public credit to be ruined for want of an engagement to the amount
+of so small a sum as might be necessary to avoid the danger to
+which it was exposed, and I wait in the anxious expectation of
+hearing from you, what arrangements have been taken on this
+subject, as I wish to conform my measures to them. If, contrary to
+my expectations, some unforeseen causes should have induced you to
+decline so necessary an engagement, I hope this letter may arrive
+in season, and induce you to do it.
+
+You will observe that a copy of this letter is transmitted to the
+Houses in Amsterdam, but I have not sent a copy of the enclosed
+letters to Mr Grand and Mr Barclay, which are left open for your
+perusal. I have not time now to go particularly into the
+estimation of their accounts, but I am almost persuaded that there
+is, between them, and ought to be in the hands of the former
+before this time, about half a million of livres belonging to the
+United States. But in the present exigency, I shall not reckon on
+this sum, nor on the second expedition of five hundred hogsheads
+of tobacco, which are, I presume, before this hour arrived at
+Amsterdam. I shall calculate on a deficiency of five hundred
+thousand guilders, and prepare remittances as fast as proper
+articles can be purchased to that amount; because the surplus may
+be well disposed of to answer the interest of the Dutch loan,
+which falls due in June next.
+
+If, therefore, you can adopt any measures by which, in circuitous
+negotiations, the time of payment can be prolonged, you may rely
+on the arrival of such remittances in the months of June and July
+at farthest, as shall fully answer the sums which may then fall
+due, and as I have told the gentlemen in Amsterdam, the advices
+which I may receive will govern the direction of those remittances.
+I shall give immediate orders for the purchase of one thousand
+hogsheads of tobacco, and as that amount is completed, I shall extend
+it according as circumstances may require.
+
+The season has been so intemperate, that the navigation of the
+Chesapeake is to this hour shut up by the ice, but that cannot
+last much longer, and therefore I have good hopes that some
+capital shipments may depart before the 1st of April; and should
+the urgency of the case require it, I can draw at long sight on
+the consignees, and transmit the bills, which will enable a
+farther negotiation, if necessary. The means of making remittances
+are now, thank God, in my power; for the amount of taxes exceeds
+that of the expenditures, which last are reduced almost to
+nothing; and as the revival of commerce must increase the means of
+paying taxes, I have no other solicitude for the event than what
+arises from the want of time to make due arrangements. This want,
+I persuade myself you will remedy, if you have not already
+provided against it. And you may rely, that any engagements you
+may think it necessary to take, shall be most punctually complied
+with by me.
+
+ With unfeigned esteem and respect, I have the honor to be, yours,
+ &c.
+
+ ROBERT MORRIS.
+
+_P. S._ Since writing the above, it occurs to me, that there is
+(particularly on the present occasion) a propriety in transmitting
+to you the best account in my power of the situation of things, as
+to the funding of our public debt. I say the best in _my power_,
+for I know not what is done southward of Virginia, no mail having
+come from thence in upwards of six weeks, by reason of the
+inclemency of the weather, which greatly impedes our intelligence
+from every quarter. New Hampshire, Massachusetts, New Jersey,
+Pennsylvania, Delaware, Maryland and Virginia, have adopted the
+plan recommended by Congress. I am assured that New York and
+Connecticut will adopt it very speedily, and I am told, on good
+authority, that Rhode Island will come in as soon as the example
+of the other States is communicated. It is in consequence of my
+conviction that the plan will soon be agreed to by all, that I
+have published an advertisement of the 9th instant, a copy whereof
+is enclosed.
+
+ R. M.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, February 13th, 1784.
+
+ Dear Sir,
+
+I have written to you, under yesterday's date, on a very
+interesting subject; and I will now add something farther, which I
+did not choose to place in that letter, as a copy of it is
+transmitted to the Houses in Holland. And, first, I will give you
+an account of my situation, as accurately as possible, in order
+that (seeing the whole state of my engagements, and the means of
+fulfilling them) you may rest at ease under the operation I have
+requested, and which I must now most strongly urge and entreat you
+to engage in.
+
+My present actual engagements are threefold, viz., first, general
+engagements for the public service not yet satisfied, including
+therein the notes issued by me, which remain in circulation;
+secondly, my bills of exchange unpaid; and, thirdly, my debts to
+the national bank.
+
+The first of these it is difficult to ascertain with exactness,
+for I take into the account all payments to be made for past
+services and the like, and I set against it sundry sums to be
+received, and the public goods which are yet to arrive. It cannot
+be expected, therefore, that any great precision will take place
+in this estimate, but from the clearest insight I have, the amount
+is rather under than over one hundred thousand dollars.
+
+The second stands thus. I drew for a million of guildders, of
+which, calculating the extent, not more than one half remains
+unprovided for, as I have observed in my letter of yesterday. This
+half may be considered as of the value of two hundred thousand
+dollars. Besides this sum, I have drawn three bills of two hundred
+and fifty thousand guilders each, and one of one hundred thousand
+guilders, for which I have received three hundred and forty
+thousand dollars; but as I have agreed that those bills shall not
+be protested, they are not to be carried to the account of bills
+of exchange.
+
+My debt to the national bank is the above sum of three hundred and
+forty thousand dollars, obtained from them by discounting notes
+received for the bills of exchange, and which notes they will
+continue on interest, until taken up by my payments here, or by my
+moneys raised on the drafts of the parties who gave them, should
+my bills be eventually paid in Europe.
+
+In this calculation you will perceive, that I make no mention of
+any moneys which I suppose to be in the hands of Mr Grand,
+because, for the greater certainty, I will on the present occasion
+consider them as equal to answer for contingencies only. And on
+the other hand, I will not calculate the interest to arise on
+moneys borrowed in Europe, because although that object may be
+stated as of the value of from one hundred and fifty to two
+hundred thousand dollars, yet to answer it, I place first, the
+general system of funding the public debts, and secondly, whatever
+small sums may arise on the Dutch loan, supposing it to have no
+success worth counting on for other purposes.
+
+Hence, therefore, we will state the account as of the first of the
+present month thus,
+
+ Balance due for past services, $100,000
+ Due for bills of exchange drawn, 200,000
+ Due to the national bank, 340,000
+ --------
+ 640,000
+ Add for contingencies, 10,000
+ --------
+ $650,000
+
+We come now to the means of making payment; after rejecting all
+hope of any material aid from the Dutch loan. And they are as
+follows. The taxes for the last four months, ending the 31st of
+January, amounted to somewhat more than two hundred thousand
+dollars. Towards these taxes, the States of Delaware, North
+Carolina and Georgia, have as yet paid nothing. Neither is there
+anything paid by the State of South Carolina within the account of
+those months. The States of New Hampshire, Connecticut, New York,
+Maryland and Virginia have paid very little, in proportion, to
+their present ability, and the other four States will all, by the
+extension of peace and commerce, be in better circumstances for
+revenue than they were before.
+
+From the States of New York, Maryland, Virginia and South
+Carolina, I expect to derive very considerable relief; particularly
+from the first, by a proposed sale of confiscated lands. However, I
+shall (after deducting from the probable increase of the revenue so
+much as may pay the current expenditures) calculate the surplus and
+the proposed sales of lands, as amounting to no more than two hundred
+and fifty thousand dollars, by the end of next September. This then
+will place the sum unprovided for at the amount of four hundred
+thousand dollars, and the fund to pay it at fifty thousand dollars per
+month. That fund will discharge the first article above mentioned, by
+the end of March; and the next thing to be provided for, is the two
+hundred, to answer bills of exchange drawn.
+
+The intended provision for that object is as follows; I shall
+borrow immediately one hundred thousand dollars of the bank, and
+direct purchases of tobacco and rice, partly with cash, partly on
+credit, and partly by bills drawn on me. By this means, I can with
+that one hundred thousand dollars have the purchases made in all
+March and April, so that the shipments to the required amount of
+two hundred thousand dollars will take place, some in March, some
+in April, and all of them I hope by the end of May. The taxes
+during April and May, will pay the purchases on credit, and the
+bills drawn on me; and the taxes in June and July will pay the
+hundred thousand dollars due to the bank. By the end of September,
+therefore, I may calculate on a full discharge of all these debts.
+
+If the loan should meet with success, my relief will be more
+speedy; but you will see, Sir, from this detail, what is most
+important to you, viz; that the funds will be placed in Europe
+during the months of June and July, to pay the half million of
+guilders, which I desire you to provide for. I suppose the mode of
+circuitous negotiations to be very familiar with your bankers, but
+I would hint at the following as practicable. Suppose the Houses
+in Amsterdam to draw in the month of March on Mr Grand, at sixty
+days' sight; Mr Grand might in May draw, on a good House in London
+for his full reimbursement, and the House in London might, in like
+manner, reimburse on Messrs Le Couteulx & Co. by which time the
+remittances would arrive. Or the time might be still farther
+extended, if the House in London should reimburse on Messrs
+Wilhelm and Jan Willink, and they on Messrs Le Couteulx. Or the
+last bills might perhaps be drawn on Mr Grand instead of Messrs Le
+Couteulx. However, supposing that the credit of those gentlemen
+might be useful, I have requested them to aid your operations,
+should you think proper to ask their aid.
+
+And now, my Dear Sir, let me before I close this letter, entreat
+of you most earnestly, that the public credit just beginning to
+revive be not totally lost for a want of an effort, which is but
+nothing in comparison with what we have already experienced, and
+passed through with success.
+
+ With very sincere esteem, yours, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THOMAS JEFFERSON.
+ Office of Finance, February 25th, 1784.
+
+ Sir,
+
+Your letter of the first instant reached me but a few days since,
+and I seize the earliest moment in my power of replying to it. I
+shall reply also in this letter to that with which I was favored
+from Mr Williamson, and pray both him and the committee that they
+will excuse it; assuring them that it proceeds from a desire of
+collecting all I have to say on the subject under one point of
+view.
+
+It was and is my opinion, and has frequently been expressed, that
+the calls of Congress should be confined to the arrears of former
+requisitions, so long as it can be possible out of such means to
+defray the current expenditures. And although it has been
+necessary to comprise a part of the expenditures of 1782 and 1783
+within that debt, for the interest whereof permanent funds have
+been required, I thought it my duty to oppose any relinquishment
+of the existing requisitions. I will not repeat the reasons,
+because the grand committee appear to be of the same opinion. It
+was evident, that if those requisitions should produce more than
+the current expenditure, the surplus would easily be applied
+towards discharging a part of the debt, which arose during the
+years 1782 and 1783.
+
+Enclosed, Sir, you will find the required amount of taxes received
+to the end of last year. But since that period, there have been
+farther receipts, and I must observe, that among these are some
+small sums collected in New Jersey and Pennsylvania on the
+requisitions for 1783. But these are nevertheless carried, in the
+treasury books, to account of the unsatisfied requisitions of
+1782.
+
+Confining myself to round numbers, because I presume the committee
+would rather receive information materially right in season, than
+wait for greater accuracy at the expense of moments, every one of
+which must be precious, I take leave to mention, that the
+arrearages on the requisitions of 1782 and 1783 exceed eight
+millions, and that one of those eight millions would pay the
+unfunded expenditures from the end of 1781 to the commencement of
+the current year; by which term of _unfunded expenditures_ used
+for want of a better, I mean such part of the public debt as arose
+in that year, and which not having been carried to the account of
+the public debt, but remaining due on my official engagements and
+anticipations, must still be provided for out of the requisitions.
+There will remain, therefore, at least seven millions for the
+service of this year, and payment of a part of the former debt,
+should the collections be so rapid as to pay off the required
+million beyond the immediate expenses, which I confess there is
+but little reason to expect. It will, however, be useful, that
+pressing application be made to the States, to complete their
+quotas, under those requisitions; for if only one hundred thousand
+dollars were employed in payment of our funded debt, before
+January next, in addition to the provision for paying the
+interest, we might then consider the independence of our country
+as firmly established. I shall dwell no longer on this subject,
+which will, I am sure, be better matured by the committee, than by
+any of my reflections. But I am bound to mention, Sir, that, from
+the slowness and smallness of the collections, our finances are in
+a more critical situation than you can easily conceive; such that
+I dare not leave this place, although I am very desirous of paying
+my respects to Congress at Annapolis.
+
+As to the vote of September, 1782, requiring one million two
+hundred thousand dollars for payment of interest on Loan Office
+certificates, &c. I have no official information of what has been
+done by the States; some among them have, I believe, directed the
+issue of certain other kind of certificates for payment of that
+interest; but as the acts do not conform to the resolution of
+Congress, I cannot know what conduct the Loan officers have
+pursued. It is much to be lamented, that the States individually
+are not sensible how necessary it is to conform to general
+regulations; on every occasion, some local convenience is
+consulted, and a deviation made, which appears to be of little
+consequence to the general system, and which is nevertheless
+important, and becomes injurious to the very State by which it was
+made. The idea of an officer dependent only on Congress, amenable
+only to them, and consequently obedient only to orders derived
+from their authority, is disagreeable to each State, and carries
+with it the air of restraint. Every such officer, therefore, finds
+the weight of public opinion to contend with. But how in a
+continent so extensive, can that simplicity of administration,
+which is essential to order and economy, be introduced, unless
+such officers are not only tolerated, but aided by the legislative
+and executive authorities? I will pursue these ideas no further
+for the present, because I think the opportunity will arrive in
+which the subject must be considered with more attention.
+
+Enclosed, Sir, I have the honor to transmit an account of the
+civil establishment of the United States, together with an account
+of contingent expenses of the several offices. Neither of these is
+as complete as could be wished, though as perfect as they can at
+present be made. You will doubtless observe, that all the offices
+are not completely filled, and that all the contingent expenses
+are not brought into the account. Among the latter omissions is
+the contingent expense of our foreign ministers, which will, I am
+persuaded, be far from inconsiderable. I have thought it proper,
+also, to transmit to the committee an estimate of the sum at which
+our civil establishment might be fixed; and on this estimate I
+make the following general observations. 1st. That the articles of
+contingencies therein mentioned, are carried out on conjecture,
+and therefore the sum total may be somewhat more or less,
+according to circumstances. 2dly. That the numbers, titles, and
+salaries of the several officers being entirely in the disposition
+of Congress, they will add to or diminish from them as they may
+think proper, wherefore the totals will doubtless be different
+from what I have stated; and 3dly, that a very considerable part
+of this expense being occasioned by the old accounts, will cease
+of itself when those accounts are settled.
+
+I proceed then to observe more particularly on the expenses of the
+President's household. 1st. That the present mode is certainly
+objectionable, as I have frequently had occasion to observe, and
+which I now repeat with the more freedom, as nothing which can be
+said will bear the least personal application. My reasons are,
+1st. No person not accountable to the United States should be
+invested with the right of drawing at will on the public treasury.
+2dly. Every expenditure ought, as far as the reason and nature of
+things will permit, to be ascertained with precision. 3dly. A
+fixed salary being annexed to the office of President of Congress,
+he will be more effectually master of his own household, and in
+consequence a greater order and economy may reasonably be
+expected.
+
+On the expenses of the office of Secretary of Congress, I shall
+say nothing. The expenses, the duties, and the cares are so
+immediately under the eye of Congress themselves, that it would be
+presumption. But I would observe, that to the account of the
+contingencies of this office, ought to be carried the expense not
+only of office rent, stationary, &c. but also fuel for Congress,
+printing of the journals, expresses sent by Congress, and the
+like.
+
+The chaplains of Congress receive, at present, at the rate of four
+hundred dollars each. If the office be necessary, it ought to be
+so supported as that the officers may be entirely attached to
+Congress, and accompany them in their changes, or fix at their
+permanent place of residence; whichever of these modes shall
+eventually be adopted, I have ventured to state their salaries at
+one thousand dollars each; perhaps I am still under the proper
+sum.
+
+On the expense of the court of appeals I can say nothing, because
+I know not whether the continuance of it be necessary. But I
+should suppose, that if three gentlemen, well versed in the law of
+nations, were, from the tenure of their offices to be always with
+Congress (so as to be consulted and employed when the public
+service might require it) such an establishment would be
+continued, if the expense did not exceed the utility.
+
+When all our accounts shall be settled, our debts either paid or
+properly funded, and things reduced to a peace establishment, the
+expenses of the Office of Finance may perhaps be reduced about two
+thousand dollars, by taking away the salaries of the assistant and
+one clerk, and adding somewhat to that of the secretary; under the
+present circumstances I do not think the number of the officers
+can be lessened. The salary of the Superintendent has often been
+mentioned as very high. This is a subject on which I can speak
+with great plainness, and but for the disagreeable situation of
+things above mentioned, I should speak also without any personal
+reference. I humbly conceive, that the object of Congress is what
+it certainly ought to be, an enlightened economy. On the powers of
+the office I will say nothing here, because it would be misplaced.
+The expenses of it are and ought to be great. Until we can create
+new beings we must take mankind as they are; and not only so, but
+we must take them as they are in our own country. Now it is
+evident, that a certain degree of splendor is necessary to those
+who are clothed with the higher offices of the United States. I
+will venture to say, that without it, those officers do not
+perform one of the duties, which they owe to their masters; and I
+can say, also, from experience that a salary of six thousand
+dollars does not exceed the expense of that officer. I speak for
+my successor, or rather for my country. Neither the powers nor
+emoluments of the office have sufficient charms to keep me in it
+one hour after I can quit it, and I did hope that period would
+have arrived during the next month. Perhaps it may. If a man of
+fortune chooses to run the career of vanity or ambition, he will
+naturally wish the salaries of office to be low, because it must
+reduce the number of honest competitors. I say honest competitors,
+because those who would make a property of public trusts will
+always be indifferent as to the amount of salary, seeing that with
+such men it forms the smallest pecuniary consideration. When a
+liberal salary enables a man, not rich, to live in a style of
+splendor without impairing his private fortune, the show he makes
+and the respect attached to him really belong to the country he
+serves, and are among the necessary trappings of her dignity. Now
+it has always appeared to me that true economy consists in putting
+proper men in proper places; to which purpose proper salaries are
+a previous requisite. Here I shall pause, because the reflection
+occurs to my mind, that perhaps this, with many other propositions
+equally true, will never be duly felt until an opposite conduct
+shall lead to disagreeable conviction. If indeed it were my object
+to enforce this point, I should go no further than the past
+experience of Congress, and perhaps there might be room for some
+argument on the actual state of the Office of Foreign Affairs. The
+expenses of that office, as well as of the War Office, require
+only a reference to what has been just mentioned. The expenses of
+the Treasury Office cannot be curtailed, for before the present
+business can be lessened, that of our debt must come forward, and
+there must be some persons to manage it, although the great
+machinery at present employed will be unnecessary.
+
+For reasons of evident propriety, I say nothing on the
+establishment of our foreign servants, only recommending, that as
+little as possible be left to the article of contingencies.
+Because, if, on the one hand, it be just to compensate extraordinary
+and unexpected expenses for the public service, it is proper, on the
+other hand, to reduce within the closest limits of certainty, which
+the nature of things can permit, the amount of those burdens which the
+people must bear. And it ought to be remembered, that contingencies
+are generally speaking a kind of expenses, which though justified by
+necessity are unprovided for by express appropriation, and which
+therefore ought as much as possible to be avoided.
+
+The last article is, expenses on collection of the revenue; and
+it is much to be lamented, that this is so heavy; not indeed the
+sum proposed in the estimate, which is trifling, but it will be
+found on examination, that the expense of collecting taxes in this
+country is greater than in almost any other; a serious misfortune,
+and which would certainly be provided against if the officers of
+the collection were nominated by authority of the United States;
+because then those principles of suspicion, which have already
+done so much and spoken so loudly, would soon fix upon a
+grievance, at present overlooked, because it forms part of the
+system favorable to withholding instead of collecting taxes. It
+has already been observed, that officers of the nature of
+receivers are necessary in the several States; it is here
+repeated, and experience will prove it. At the same time the
+committee will please to take notice, that the Loan officers are
+not included in the estimate; the reason of which is, that they
+can answer no purpose but the expense of the appointment, and the
+complicating of a system which ought to be simplified. An officer
+whose duty it is to urge collections, may do good if he performs
+that duty, but when it is a question of paying, means may be
+adopted, which will be more effectual, less expensive, and
+infinitely less liable to fraud. Not to mention that these means
+may be such as to avoid long and intricate accounts. In fact (and
+I hope, Sir, you will excuse the observation) there seems to have
+existed a solicitude how to spend money conveniently and easily,
+but little care how to obtain it speedily and effectually. The
+sums I have proposed as fixed salaries for these officers, may at
+first sight appear large, but if the office is to be at all useful
+it must be in the hands of a good man who can devote to it his
+whole time and attention, and who will neither by his private
+distresses nor by the scantiness of his stipend, be prompted to
+betray his trust, or abuse the confidence reposed in him.
+
+Before I close this letter, I will take the liberty further to
+mention to the committee, as a principal means of avoiding many
+disagreeable discussions relative to the present object, that the
+establishment of a mint, and due regulations of the post office,
+would soon supply the funds necessary to defray the expenses of
+our civil establishment. The former of these is entirely in the
+power of Congress, and I should suppose, that the States could
+have no reasonable objection to leave the revenue, which might
+arise from the second to the disposition of Congress for that
+purpose.
+
+I pray you to excuse me, Sir, for troubling you with so long a
+letter, which I will not add to by making an apology; but assure
+you of the respect, with which I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+PROPOSED EXPENSES OF THE CIVIL LIST.
+
+ _President of Congress_, his household, $10,000
+ His private Secretary, 500
+ -------
+ $10,500
+ _Secretary of Congress_, 3,000
+ Two Clerks, 1,000
+ Messenger, 300
+ ------ 4,300
+ Contingencies; fuel, stationary, rent. &c. 750
+ ----- 5,050
+ _Chaplains of Congress_, 2,000
+ _Three Judges of Appeals_, at 2250 dollars each, 6,750
+ Contingencies during their sittings, 150
+ ----- 6,900
+ ------
+ 24,450
+
+ _Superintendent of Finance_, $6,000
+ Assistant, 1,850
+ Secretary, 1,000
+ Clerks, three, 1,500
+ Messenger, 300
+ ------ $10,650
+ Contingencies, 750
+ ------- 11,400
+ _Minister of War_, 6,000
+ Two Clerks, 1,000
+ Messenger, 300
+ ------ 7,300
+ Contingencies, 500
+ ------- 7,800
+ _Minister of Foreign Affairs_, 6,000
+ Two Secretaries, 2,000
+ Messenger, 300
+ ------ 8,300
+ Contingencies, 500
+ ------- 8,800
+ _Controller of the Treasury_, 1,850
+ Auditor, 1,000
+ Six Clerks, 3,000
+ ------ 5,850
+ Register, 1,200
+ Four Clerks, 2,000
+ ------ 3,200
+ Treasurer, 1,500
+ Clerk, 500
+ ------ 2,000
+ Messenger, 300
+ -------
+ 11,350
+ Contingencies, 1,000
+ ------- 12,350
+ ------
+ 64,800
+ _Two Foreign Ministers, at $10,000 each_, 20,000
+ _Five Residents, with Consular Powers, at 6,000_, 30,000
+ Contingencies, 10,000
+ ------ 60,000
+ --------
+ Permanent expense, 124,800.
+
+ _Temporary Expense._
+
+ A Commissioner of accounts here, salary 1,500
+
+ A Commissioner for settling old accounts in
+ Europe, his clerks, contingent expenses,
+ &c. suppose $10,000
+ Two Clerks, 1,000
+ Contingencies, 250
+ ------
+ 2,750
+ Multiply by 18
+ ------ 49,500
+ ------- 59,500
+ ---------
+ $184,300.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, March 17th, 1784.
+
+ Sir,
+
+Permit me, through your Excellency, to call the attention of the
+United States to the situation of my department. During the last
+year, engagements were made to a very considerable amount for
+payment of the army. This payment was effected by notes which fell
+due the end of last year, and the commencement of this. The funds
+at my disposal were unequal to the discharge of them. I was,
+therefore, under the necessity of drawing bills on the credit of
+the loan in Holland. The information I had received from the
+gentlemen who had the management of it, gave me hopes that funds
+sufficient to discharge those bills were in their hands; for in
+the months of April, May, June and July, they had received and
+distributed obligations for one million one hundred and thirtysix
+thousand florins. But from causes, which will readily suggest
+themselves to Congress, that loan, which had taken a rapid start
+at the peace, began to decline in August and stood still during
+all November. It has happened, therefore, that bills to the amount
+of one million three hundred and twentyfive thousand florins,
+equal at the current exchange to five hundred and thirty thousand
+dollars, are protested for non-acceptance. Should they come back
+protested for non-payment, the consequences will be easily
+imagined.
+
+For about a month past I have been in the expectation, that this
+disagreeable event would happen, and whether it will or not is yet
+undetermined. My last advices from the gentlemen who have the
+management of the loan are in a letter of the 22d of December; by
+which they tell me, "we are sorry to be obliged to repeat, that
+since our last till the present moment, our prospects are not very
+much increased; however, we are not quite without hopes, and have
+determined, if we cannot do otherwise, to sacrifice some more
+premium to the undertakers, which if we do, we will charge to the
+account of the United States. We think ourselves fully authorised
+to do this by the circumstances; since without the bills going
+back, it is certain that, besides the disappointment and the
+discredit it would give to the government bills, the expenses
+attending the returns will be much more burdensome. We have almost
+no prospect of getting the money without such a sacrifice, and
+only hope it will answer your views." Enclosed you have the
+account current with those gentlemen, as sketched out by the
+register for information; by which it appears, that they had in
+their hands a balance of three hundred and fortyseven thousand
+seven hundred and seventy current guilders on the 31st of October
+last, and by the subordinate account, number five, it will appear,
+that my bills exceed that balance by one million five hundred and
+thirteen thousand two hundred and twentynine florins; but from
+this a deduction is to be made for some tobacco shipped to them,
+the account of sales whereof is not yet come to hand. They have,
+however, accepted of my bills beyond the amount of their funds,
+and still there are to the value of one million three hundred and
+twentyfive thousand florins protested for non-acceptance. In
+order, however, that Congress may possess as full a view of things
+as possible, I will suppose, for the present, that by making a
+sacrifice of premium the funds for discharging these bills may be
+obtained. I must also mention here, to obviate what might be
+suggested, that the remittances to Messrs Le Couteulx and Mr Grand
+will be found accounted for in their accounts, but time will not
+permit going into all those details at present.
+
+ Supposing then the funds to be obtained for payment
+ of these bills, the interest falling due the beginning of
+ June next, will amount to two hundred thousand florins,
+ equal at the current exchange to $80,000
+
+ By the enclosed state of payments
+ just received from Mr Grand it will
+ appear, that on the 5th of November,
+ there is payable at his House
+ the sum of one million six hundred
+ thousand livres, equal at the current
+ exchange to 320,000
+ --------
+ $400,000
+
+Thus you will find, that on the best supposition which can be
+made, there is to be paid in Europe during this year four hundred
+thousand dollars, over and above the salaries of foreign
+Ministers and their contingent expenses. There is also to be paid
+the further sum of one hundred thousand dollars, due in this
+country on engagements taken for the public service during the
+last and present year, besides notes in circulation, which may
+probably be absorbed by the taxes, between this and the 1st of May
+next. Thus there is a deficiency of half a million to be provided
+for by the taxes from the 1st of May, to which must be added
+sundry debts of the last year not yet adjusted, and which cannot
+therefore be estimated, but which may amount to between one and
+two hundred thousand dollars more. And to all this must be added
+the current expenses, which Congress will best be able to
+ascertain.
+
+This, Sir, is a view of things upon the fairest side, but if the
+bills noted for non-acceptance come back, a scene will then be
+opened, which it is better for you to conceive than for me to
+describe. The delay of the States in passing the laws for granting
+revenue to fund our debts has left the above mentioned sum of four
+hundred thousand dollars totally unprovided for; and I cannot see
+the least probability that this general concurrence will be
+obtained in season to make that provision. I beg leave, therefore,
+to suggest the expedient that the produce of the requisitions for
+1782 and 1783 be partly appropriated to that payment, and that the
+money be replaced from the proper funds when obtained. But
+whatever mode may be adopted, Congress will doubtless be struck
+with this truth, that unless the States can be stimulated into
+exertion, and that speedily, everything must fall into confusion.
+I will not pretend to anticipate the evil consequences. Having
+stated the facts I have done my duty.
+
+I must, however, pray a moment's indulgence to mention, that the
+accounts of the last year would have been rendered by this time,
+but as I have not relinquished the hope of being able to quit this
+office soon, I have rather desired to be able to complete all the
+accounts of my administration. It will give me infinite pleasure,
+if, when I have the honor of presenting to Congress these accounts
+with my commission, I shall find them in circumstances as
+prosperous as those under which I accepted it were adverse.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO JACOB READ, MEMBER OF A COMMITTEE OF CONGRESS.
+
+ Office of Finance, March 30th, 1784.
+
+ Sir,
+
+I am to acknowledge the receipt of your favor of the 14th instant;
+which should have been done sooner, but that I have been much
+engaged, and indeed the accounts you ask for, and which are
+enclosed, required time to be completed. I shall expect the papers
+which relate to Mr Gillon by the first good opportunity.
+
+With respect to the report of the committee, I cannot presume to
+say anything about it, unless it should be officially referred to
+me, which indeed would seem to be the regular mode of proceeding
+in matters of that sort, but I am far from desirous of such
+reference, and therefore if Congress are prepared to decide, I am
+perfectly content. So long as I am in their service I shall
+endeavor to carry their measures into effect.
+
+I am perfectly in opinion with the committee, that the arrears
+should be demanded before new requisitions are made; and if I were
+to hint anything like advice, it should be that Congress state
+clearly the evils which arise from their inability to enforce the
+payments.
+
+The desire that Loan officers may issue certificates I have long
+known, and I know also, that it originates in a desire to elude
+actual by making nominal payments. However, it occurs to me that a
+mode might be fallen upon to conciliate this object with the
+public interest. I consider the Loan offices as a very unnecessary
+burden on the community, and I think they ought to be got rid of,
+for I am sure that the whole business might be better done at one
+tenth of the expense, besides the advantage of leaving no
+unsettled accounts behind. If the States will act with rigor and
+honesty on the present occasion, there would be no difficulty, I
+should suppose, in negotiating with the several banks to make
+actual effective payment. But you may be sure they will not
+undertake anything unless they have a solid reliance on the
+revenues. Now this is precisely what Congress ought to desire, for
+if they are prevailed on to cause the issue of paper money by
+their officers, the States may as heretofore neglect the means of
+redeeming it, and then all the blame falls upon Congress. Indeed
+they would well deserve it. For why need they attempt to
+accommodate the States in the manner proposed? Think you the
+Legislatures will be more solicitous to save the public faith than
+to quiet the clamors of their own citizens? For my part I am
+persuaded that they will not, and I cannot but think that an
+address to the public creditors, charging the fault where it is
+justly chargeable, would be more useful than mere temporary
+palliations of their distress. On the whole I think it best for
+Congress to adhere as much as possible to great outlines, and to
+avoid details. Those should be left to the Minister of Finance. If
+he is an able and honest man he will do well, and if the thing be
+well done all is right. If he be unequal to his duties, the blame
+of wrong measures will fall upon him. But if Congress do his work,
+then unless their work be more than humanly perfect, they will
+undoubtedly compromise themselves. I say these things to you in a
+conviction of the truth of what I say, and with a perfect
+indifference as to any personal considerations. If I can get out
+of office I will, and if I cannot I will never ask Congress for a
+confidence they do not wish to repose.
+
+I am very much obliged, my Dear Sir, by your kind and confidential
+communication, and reply to it, as you see, with full confidence.
+If I were in a situation to converse with you on the state of our
+affairs, I should be glad to do it, but the limits of a letter
+will not permit the saying what is necessary on so extensive a
+subject. I find that Congress are in the habit of passing
+resolutions, which relate to my department, without a reference; I
+am sorry for it, because some of them are inconvenient to me, and
+others will I fear be found dangerous. However, they are the best
+judges of what is for the public interest, and therefore I shall
+avoid as much as possible all remonstrance.
+
+ I am, very sincerely, your most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THOMAS JEFFERSON.
+
+ Office of Finance, April 8th, 1784.
+
+ Sir,
+
+I have received the letter which you did me the honor to write on
+the 30th of last month, for which I pray you to accept my thanks.
+The circular letter, a copy of which you enclosed, has my entire
+approbation, and I pray leave to assure the committee, that while
+I am favored with the firm support of Congress, I shall not shrink
+from the difficulties, however great, with which we are
+threatened.
+
+The idea of applying to the banks for aid, is in itself a good
+one, but the present moment is unfavorable. The establishment of
+so many banks instead of aiding credit, and facilitating
+operations, will for some time to come have a contrary effect, and
+it is not without great difficulty, that they will each collect a
+capital sufficient to support its own operations. The struggle to
+get such capital, places these institutions in a degree of
+opposition to each other, injurious to them all. Without going
+more minutely into that part of the subject, I take the liberty to
+observe further, that as we had no mint established when the
+treaty of peace took place, and consequently no proper regulation
+of our coin, a great part of it was immediately exported, and the
+country being now laden with foreign goods, and having but little
+means of payment with produce, still farther exportations of coin
+will take place, especially if by the return of the public bills
+so great an additional remittance becomes necessary.
+
+I shall leave all observations upon this matter to the good sense
+of the committee, and proceed to mention further, that if the
+abilities of the several banks were ever so great, we cannot rely
+much on their inclinations, unless their respective directors
+could clearly see a prospect of speedy reimbursement from the
+taxes. It is, therefore, a matter of much delicacy, to make any
+proposals to them on the part of government; for which and for
+other evident reasons, I pray leave to suggest the propriety of
+leaving all such negotiations to the Superintendent of Finance.
+That officer has already sufficient powers to do everything,
+except granting premiums for the loans proposed, and with respect
+to them, I am clearly of opinion, that none ought to be given; but
+if in the last necessity that step should be unavoidable, he may
+then apply for authority. This I conceive to be better than
+vesting him beforehand with such extensive power; for the
+committee will be pleased to observe, that as the laws of the
+several States have fixed the rate of interest, premiums on loans,
+which in their effect raise the rate of interest, would be
+exceptionable as well as odious. It is true, that the situation of
+affairs is very disagreeable, but it is better to bear up and
+struggle hard against present difficulties than lay the foundation
+of future evils.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, April 29th, 1784.
+
+ Sir,
+
+I do myself the honor to enclose for the consideration of Congress
+the extract of a letter from the commissioner for settling the
+accounts of Connecticut, together with the copy of a receipt
+which was enclosed in it, and the original of which is returned to
+the commissioner. Before I make any observations on this extract I
+take the present opportunity of explaining a part of my conduct,
+which has I know given some offence.
+
+Previous to the acceptance of my office I was naturally led to
+examine the ground on which I should be brought to act. I clearly
+saw that great confusion had been introduced into the public
+affairs, not merely from defects in former plans, but from a great
+negligence in those to whom the execution had been committed. For
+although the general arrangements were in some respects defective,
+as is the case with all human institutions, yet those who were in
+any degree culpable had taken care to charge the fault on such
+deficiencies by way of excusing themselves. Congress will perceive
+at a single glance, that where boards or committees, perpetually
+changing, and whose members are not accountable, are charged with
+the superintendence of a general system, and the subordinate
+agents rendered accountable to them, it is vain to expect that
+steady, severe, and attentive administration, which can alone
+secure the public welfare. Experience had shown, that this radical
+evil produced shameful negligences in the executive departments,
+the mischiefs of which are felt at the present hour. Affairs were
+so complicated that it was hardly possible to say who was in
+fault; and while every individual officer took care to excuse
+himself the blame was placed on Congress; from whom of all others,
+if the future interests of America be consulted, it ought to be
+removed. The expense which attends the settlement of the old
+accounts is the least mischief which has resulted.
+
+This view of our situation rendered it necessary for me to
+stipulate, that I should be invested with ample powers, and
+induced, also, the determination to avoid as much as possible the
+employing of persons who had public accounts unsettled. My
+subsequent experience has shown, that if this determination had
+been universally adhered to, it would have tended much to the
+establishment of that regularity, which has constantly been kept
+in view. From frequent information I was convinced, that many of
+the loan officers had not conducted their business according to
+the modes prescribed, and had indeed neglected even to make those
+returns, which had been from the beginning required. This was an
+additional reason for placing the receipt of the continental taxes
+in other hands. And when it was considered, that these gentlemen
+would be constantly pressed for the payment of interest, that
+which was necessary in the case with some became proper with
+respect to all. This conduct, as has been already mentioned, gave
+offence to some, but as no regular accusation has ever been
+brought I shall go no farther into a defence of the measure; my
+object being as well to point at future operations as to explain
+the past.
+
+I will not go into a detail of the modes formerly prescribed for
+keeping the Loan Office accounts. Suffice it to say, that very few
+of the officers have conformed to them. The instructions for
+settling the accounts are before Congress, and the enclosed
+extract shows that they cannot be effectually adhered to; and
+consequently that a principal object in the settlement of the
+accounts will not be effected. I pray leave, therefore, again to
+bring to the attention of Congress a report made on the 3d of
+September from the Office of Finance. Not that it is desired that
+the United States should adopt the resolution there proposed, but
+merely that it may serve as a groundwork on which to establish
+some Act which may prove effectual.
+
+It is perhaps a favorite object to keep up the establishment of
+the Loan offices, but I must on this occasion repeat what I have
+so often declared, that it is an expensive and a pernicious
+establishment, without being attended with a single good effect to
+compensate the mischiefs. I shall not, however, trouble Congress
+with my reasons on that subject, because I think it my duty to
+bear witness against them. I know the progress of all reformations
+to be slow, and that experience is the most certain teacher.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, May 6th, 1784.
+
+ Sir,
+
+In consequence of the resolutions of the 28th of April, and 2d of
+May, 1783, I have made the various engagements then in contemplation,
+and any late letters to Congress will show that some of those
+engagements to the amount of three hundred thousand dollars still
+remain to be fulfilled. Congress will be pleased also to observe that
+their late arrangements with respect to foreign officers, form an
+object of about fifty thousand dollars, including the grant of ten
+thousand to Baron Steuben. Notwithstanding this and the constant
+demands for current service, I am not without hopes that if all the
+bills on Holland be paid, I shall in the course of the summer be able
+to quit my station. Having been informed (though not officially) that
+Congress intend to adjourn in the beginning of next month, I am humbly
+to request that they would in such case be pleased to take eventual
+arrangements for administering their finances. And I am the more
+solicitous on this subject, lest through the want of such
+arrangements, some injury should happen to the public service when I
+retire.
+
+I hope Congress will indulge me also in mentioning, that no
+committee has been appointed to inspect into the conduct of my
+department. It would give me particular pleasure that measures
+were taken on that subject also.
+
+ With respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE MARQUIS DE LAFAYETTE.
+
+ Office of Finance, May 19th, 1784.
+
+ Dear Sir,
+
+By the opportunity which your friend, Mr Constable, offers, I now
+acknowledge the receipt of your several favors of the 26th of
+December, 10th of January, and 9th of March last. Accept, I pray
+you, of my sincere thanks for them all. I also enclose for your
+perusal the copies of my letters to Congress, of the 16th of April
+and of this date. To these I add their resolutions of the 3d
+instant, which will I hope prove agreeable to you. If I have not
+transmitted the copies of or extracts from your letters to
+Congress so soon as they were received, you must attribute it to
+circumstances which I, on the spot, could best judge of, and which
+is not worth while to mention.
+
+In pursuance of what I have just now said to Congress, I shall
+proceed to request your exertions for establishing a free port at
+the Isle of France or Bourbon. You will easily obtain sufficient
+information in Europe to direct your applications on this subject,
+and Mr Constable will, I think, be able to give you some useful
+information as to the consequences of it upon this country. I
+confess, that it appears to me to be the probable means of
+establishing at that port, the most extensive and useful commerce
+with India, that has ever yet existed. To France and to America it
+will be most particularly useful, because we shall trade freely
+and without risk to such port, and you will undoubtedly furnish us
+with all those articles of India goods, which we should otherwise
+go in search of to India, or procure from other nations. This will
+form an object of near twenty millions of livres annually, or
+calculating both the export and import cargoes, it will amount to
+about thirty millions, and consequently cannot be less than five
+millions clear advantage to France; and if it be considered, that
+this is so much taken from her commercial rival, we may estimate
+it as being an object of ten millions annually. Such being the
+importance of it with respect to America, what may we not
+calculate on for the other countries, who may incline to trade
+thither? But besides this great commercial consideration, there
+are others of a political nature; such as the increase of your
+seamen; the advantage of a place of arms, marine arsenal, &c. in
+that critical position. These I shall not dwell upon, because I do
+not wish to go out of my depth.
+
+Returning then to a commercial view of the subject, I consider it
+as almost certain, that America would find it more advantageous to
+trade with that port than to go on to India; and hence I draw one
+very strong inference, that we should not only be by that means
+brought into a closer political connexion with France, but that
+France would hold a much larger share of all our other commerce,
+than she would without such an establishment. I will not trouble
+you with my reasons, because I think they will not escape you. But
+before I close my letter I must observe, that although this
+commerce may and undoubtedly will yield you a revenue, yet there
+is danger in beginning with revenue too soon. Let the port be
+first made free to all the world, and let good and intelligent
+commissioners or intendants be appointed to transmit information
+of the commerce carried on. If there be no duties, there will be
+no false entries; and thus in two or three years the Court will be
+able to act with their eyes open; and in the meantime the
+enriching of your own subjects is always of sufficient consequence,
+even if revenue be put entirely out of the question. If on the other
+hand you only free the port by halves, and leave it subject to duties
+and restrictions, the commerce may never take its course that way; and
+always remember, that the commission received by your merchants from
+such a commerce is alone of vast importance.
+
+ I am, Sir, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE GOVERNOR OF RHODE ISLAND.
+
+ Office of Finance, June 21st, 1784.
+
+ Sir,
+
+That my official existence has been prolonged to the present
+moment arises from the dilatoriness of the States in providing
+means to discharge those engagements, which I had taken for their
+benefit at the pressing instance of Congress. I hope your
+Excellency will believe me when I seriously assure you, that the
+greatest advocates for a change cannot more earnestly desire my
+dismission than I myself do. I hope that their sincerity and mine
+will speedily be put to the trial. They, by granting money, and I
+by resigning, can best evince that our professions are founded in
+truth. Thus, Sir, it has happened, that the reasons for granting
+money to the Union have acquired an additional weight from
+considerations personal to me, and perhaps in the only way in
+which I could have given to them any efficacy.
+
+Whatever sinister causes may have been suggested to invalidate my
+former applications, I humbly hope, that at this period my earnest
+entreaty to comply with the requisitions of Congress for funding
+the public debt will be considered as flowing from a conviction,
+that it is a measure necessary to the peace and happiness of our
+country. To me it can produce neither honor, nor power nor profit.
+The advantage I may derive will be common with all my fellow
+citizens, and I shall share, also, the burden in common with them.
+But the numerous class of sufferers in whose particular favor that
+burden is to be sustained, will, I hope, meet with an advocate in
+every bosom. Justice, policy, humanity, press the measure upon our
+feelings and reflection; and if it be objectionable, let it be
+considered how seldom any human plans are formed, to which
+objections may not be made. Our union, necessary as it is to our
+existence, is still liable to objections. And government, without
+which we cannot participate in the benefits of society, will
+always in something or other give room for clamor and discontent.
+
+I hope, Sir, this application from me will be at least excused. It
+is the last. It is the general result of what I feel to be my
+duty. Those who come after me will, I hope, have that influence,
+which I have not; and succeed where I have failed. But whether
+they succeed or whether they fail, they cannot more earnestly
+desire the good of America than I do.
+
+ I am, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO M. DE MARBOIS, CHARGÉ D'AFFAIRES FROM FRANCE.
+
+ Office of Finance, August 17th, 1784.
+
+ Sir,
+
+I had yesterday the honor to receive your letter of the 15th, by
+which I perceive that you misunderstood me a little in the
+conversation alluded to. On that occasion, Sir, I expressed my
+intention to take arrangements for the payment of four hundred
+thousand livres, being the interest due in November next, upon the
+loan of ten million livres, guarantied by his Most Christian
+Majesty; but I could not have told you that they were actually
+taken, because that is not the fact. Indeed I did expect, that
+certain attachments which have been laid upon the property of the
+United States in France would have been taken off; and that in
+consequence of orders formerly given, Mr Grand would have received
+through Mr Barclay the necessary funds. Should this be the case he
+will pay that interest of course, having already done so last
+year, in pursuance of a general authority to that effect. If,
+however, the suspense occasioned by those attachments should cause
+any delay, the King's Ministers who were long ago informed of
+them, will doubtless excuse the inconveniences which may result
+from it. The arrangements now to be formed must be in a double
+sense eventual, and depend not only upon the fate of the
+attachments, but also upon the state of those funds, which may be
+in Europe at the disposition of the United States.
+
+I should be happy, Sir, in the opportunity of satisfying your
+desire, to be informed of the measures taken with respect to those
+sums, which the King was pleased to lend, and which (with the
+interest accruing thereon) are payable at the several epochas
+specified for the purpose in the conventions made on that subject,
+between our respective Ministers; but not having received the
+orders of the United States in Congress, I cannot presume to
+anticipate what they may think proper to say. I will immediately
+do myself the honor of transmitting to his Excellency, the
+President, a copy of your letter; and as I cannot doubt, that both
+those measures which they have already taken, and those which
+they may hereafter adopt, must be perfectly consistent with their
+honor, I shall indulge the hope, that they will meet the
+approbation of their august ally.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, September 30th, 1784.
+
+ Sir,
+
+I had the honor of mentioning to Congress, upon the 4th of May,
+the advices then just received from Holland, and to pray their
+sentiments upon the loan, which Mr Adams had (upon a view of all
+circumstances) found it necessary to open. I was the more anxious
+on this subject, as I saw a probability of the speedy completion
+of this loan for two millions of guilders, and therefore if not
+approved of, no time should have been lost in stopping the further
+progress.
+
+Since writing that letter, I have received the scheme of the loan,
+and the copy of the obligation, both of which are here enclosed
+for the inspection and consideration of the United States in
+Congress. It is probable, that not only this loan, but also the
+former loan of five millions will both be filled before any
+determinations of Congress can arrive in Europe; for the
+concurrence of many States to the measures proposed by Congress,
+and the resolutions of several legislative bodies expressing their
+sense of the necessity of enabling the United States punctually
+and honorably to discharge their engagements have reanimated that
+credit, which for evident reasons had languished and died away.
+
+The public accounts will sufficiently explain the situation of
+money matters, and the gentleman charged with the department of
+the finances will of course furnish such information as may from
+time to time be required; I shall not therefore go any further
+into the details of this business, but must express to Congress my
+opinion of the loan generally; and certainly, if we consider the
+very untoward circumstances in which it was undertaken, very great
+praise is due to the persons concerned in proposing, adopting, and
+pursuing it. This sentiment, which I have constantly felt has not
+been declared until the present moment, because no suspicion can
+now arise, that what I say, is dictated by a view to influence
+their future exertions, seeing that my political existence must be
+at an end before the contents of this letter can possibly be
+transmitted.
+
+I have invariably in my official correspondence, (as indeed upon
+every other occasion, both public and private) expressed the
+conviction which I feel, that however the several States may, from
+a difference in local circumstances, differ in their opinions
+about the mode of providing for public debts, all of them will
+concur in the just sentiment, that these debts ought to be most
+punctually discharged. There cannot, therefore, be any doubt, that
+the proper provisions will be made, and I am grounded in the
+assertion that when made, the public credit of America will be the
+best of any in the world, that it will cost less to maintain it by
+us, than by any other nation, and that considering the infant
+state of our cultivation in general, and the frontiers in
+particular, it is of more importance to us than it can be to any
+other country. It is also a commercial problem, which admits of
+absolute demonstration, that the punctual payment of interest on
+our debts will produce a clear annual gain of more than such
+interest can possibly amount to. So that the eternal and immutable
+principles of truth and justice, being for a moment out of the
+question, and stifling those sentiments of humanity, which arise
+from a view of what the public creditors must suffer, should their
+dues be withheld, (if indeed it be possible to stifle such
+sentiments,) still it will indisputably appear to be the interest
+of the merchant, as well as of the husbandman and mechanic, to pay
+their just proportions towards discharging the public engagements.
+For this plain and simple system of common honesty, while it
+invigorates the springs of our credit, strengthens also the bands
+of our union, proceeding with equal motion towards the public weal
+and private prosperity.
+
+That the labors of our great and glorious revolution may thus be
+crowned by the impartial hand of justice, and the last stone be
+thus placed in the arch of our extensive empire, is the ardent
+wish of your Excellency's most obedient, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO B. FRANKLIN.
+
+ Office of Finance, September 30th, 1784.
+
+ Dear Sir,
+
+This is rather a late day to acknowledge your favors of the 25th
+of December and 15th of June last, but I have always intended in
+my acknowledgement of them to close our public correspondence, and
+I have always been disappointed in my expectation of being able
+speedily to quit this office. That period, however, so ardently
+desired, is at length nearly arrived, and while I look back on
+cares and dangers past, I feel an increased emotion of joy in the
+prospect of future hopes and expectations. But I cannot review the
+past scene without strong feelings of gratitude and respect for
+the able and active efforts, which you have made to support the
+finances of this country. I would to God that your just sentiments
+on property and taxation were as fully felt as they must be
+clearly understood in America; but time is as necessary to mellow
+the judgment of a country as of a man. Happy indeed shall we be if
+it produce that effect among us.
+
+I am much obliged by your explanation of M. Chaumont's accounts,
+which are lodged at the treasury. If any insinuations have been
+made injurious to you upon your connexion with M. Chaumont, they
+have not reached me, and I am persuaded that none such can make
+any impressions which ought to give you pain.
+
+I have not remitted bills for the salaries of foreign ministers,
+because the resolutions of Congress having varied, and Mr Grand
+having informed me that he should pay them, I have left it as an
+account unsettled to be arranged by Mr Barclay. And as I cannot
+doubt that the attachments will have been taken off, and as I have
+given Mr Grand a credit on the commissioners of the loan in
+Holland for four hundred thousand livres, and directed Messrs Le
+Couteulx to pay over to him a balance in their hands, I have no
+doubt that he will be in cash for the purpose. I agree with you
+that a fund ought to be set apart for contingencies, and had I
+continued, and been supported in my administration, such a fund
+should certainly have been provided. I am at the same time an
+enemy to contingent accounts, and therefore I should have urged
+the ascertainment of every allowance as far as possible, thereby
+curtailing the account of contingencies. But after all, it cannot
+be annihilated. Congress have hitherto made no determination on
+this subject. Indeed it is very difficult, and even almost
+disreputable for them to make arrangements of expenditure, while
+the means of expenditure are so shamefully withheld by their
+constituents. These things, however, will mend, at least I hope
+so.
+
+I have already said that I expected the attachments laid on the
+public goods would be discharged. Your letter to the Count de
+Vergennes on that subject is perfect, and if that minister did not
+immediately obtain a compliance with your request, I presume it
+must have been occasioned by some circumstances purely domestic,
+which we in this country cannot guess at, for certainly nothing
+can be more astonishing than to find a subject countenanced in
+arresting the property of a sovereign power in this enlightened
+age, and in the country, which of all others has been most eminent
+for a sacred regard to the rights of nations.
+
+From your last letters to your friends, I find that your return to
+this country is somewhat doubtful; I am therefore disappointed in
+one of the greatest pleasures, which I had promised myself. But,
+Sir, in whatever country you may be, and whether in public or in
+private life, be assured of my warmest and most respectful esteem,
+and that my best wishes for your happiness shall be clothed with
+the utmost efforts in my power to promote it on every proper
+occasion.
+
+ I am, Sir, with perfect respect, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, September 30th, 1784.
+
+ Sir,
+
+I do myself the honor to enclose for the inspection of Congress a
+copy of a letter of the 14th of last month from the Marquis de
+Lafayette; and with it I send the originals, which were delivered
+by him to me. The unexampled attention to every American interest,
+which this gentleman has exhibited, cannot fail to excite the
+strongest emotions in his favor, and we must at the same time
+admire the judgment which he has shown in the manner of his
+applications, as well as the industry in selecting proper
+materials. There can be little doubt, but that his interest at his
+own Court must always prove beneficial to this country, while the
+same cordiality shall continue which now subsists between him and
+the Venerable Plenipotentiary now resident at Passy.
+
+I shall not hazard opinions upon the matters which have employed
+the attention of M. de Lafayette, as a negotiator from this
+country to that which gave him birth. It would be intruding
+sentiments which will suggest themselves. But while I feel the
+delicacy and perhaps the danger of asking from France the
+moderation or abolition of particular duties, thereby establishing
+a precedent for similar requests on her part, I hope Congress will
+pardon a wish prompted by the general interests of commerce, that
+the statement of all those duties might be translated and
+published, for the government of those who may form expeditions to
+those different ports now opened to us.
+
+ I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+ADVERTISEMENT.
+
+ Philadelphia, October 11th, 1784.
+
+The subscriber having taken measures to provide for the payment of
+his various engagements on behalf of the United States, and
+particularly for such of his notes as may be in circulation, gives
+this public notice to all who may be concerned therein, that
+although he be no longer in office, yet those notes will all be
+duly paid at maturity; and for such payment he hereby pledges
+himself personally to the holders, and therefore requests that if
+any attempt should be made to obtain them by any suggestions at
+less than the specified value, such attempts may be defeated.
+
+ ROBERT MORRIS.
+
+ * * * * *
+
+TO THE PRESIDENT OF CONGRESS.
+
+ Office of Finance, November 1st, 1784.
+
+ Sir,
+
+I have the honor of enclosing to your Excellency, and pray you
+will deliver to the United States in Congress, the commission by
+which I was appointed Superintendent of their Finances. It gives
+me great pleasure to reflect that the situation of public affairs
+is more prosperous than when that commission issued. The
+sovereignty and independence of America are acknowledged. May they
+be firmly established, and effectually secured. This can only be
+done by a just and vigorous government. That these States,
+therefore, may be soon and long united under such a government, is
+my ardent wish, and constant prayer.
+
+ With perfect respect, I have the honor to be, &c.
+
+ ROBERT MORRIS.
+
+END OF THE TWELFTH VOLUME.
+
+ * * * * *
+
+ Transcriber's note:
+
+ Text enclosed by underscores is in italics (_italics_).
+
+ Small capital text has been replaced with all capitals.
+
+ Variations in spelling, punctuation and hyphenation have been
+ retained except in obvious cases of typographical error.
+
+ The cover for the eBook version of this book was created by the
+ transcriber and is placed in the public domain.
+
+ Omitted words, shown as blank spaces in the original, have been
+ transcribed as four hyphens ( ---- ) in the following cases:
+
+ Page 59: As I am not positively instructed that this loan has
+ succeeded, I do not venture to draw bills on you; but in case you
+ shall be in cash for the United States, which I expect will
+ happen, you will pay to Messrs ---- & Co., for account of John
+ Ross, the sum of two hundred thousand livres; to Messrs Le
+ Couteulx & Co., for account of William Bingham, one hundred
+ thousand livres, and to John Holker, for account of John Holker
+ fils, the sum of one hundred thousand. From each of these persons
+ you will take quadruplicate receipts, in the form following;
+ "Received of ----, banker, by order of the Superintendent of the
+ Finances of the United States of North America, on behalf of ----
+ the sum of ---- being so much paid by the said States to him, the
+ said ---- for which I have signed four receipts, all of this tenor
+ and date. Done in Paris this ---- day of ---- 178--." You will
+ be pleased, Sir, to forward to me three of the copies by different
+ opportunities.
+
+ Page 62: in my letter of the ---- last
+
+ Page 62: the invoice sent in my letter of the ---- last
+
+ Page 63: the ---- last, because I feel a conviction
+
+ Page 66: 1782 is ---- dollars, payable
+
+ Page 258: by the time Mr ---- reaches the Havana
+
+ Page 259: that Mr ----'s bills be protested
+
+ Page 397: from a tour ---- have been making
+
+ "... the subject of paying all balances ..."
+
+
+
+
+
+End of the Project Gutenberg EBook of The Diplomatic Correspondence of the
+American Revolution, Volume XII, by Various
+
+*** END OF THE PROJECT GUTENBERG EBOOK 42413 ***
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