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diff --git a/42413-8.txt b/42413-8.txt deleted file mode 100644 index 4a60919..0000000 --- a/42413-8.txt +++ /dev/null @@ -1,17537 +0,0 @@ -The Project Gutenberg EBook of The Diplomatic Correspondence of the -American Revolution, Volume XII, by Various - -This eBook is for the use of anyone anywhere at no cost and with -almost no restrictions whatsoever. You may copy it, give it away or -re-use it under the terms of the Project Gutenberg License included -with this eBook or online at www.gutenberg.org - - -Title: The Diplomatic Correspondence of the American Revolution, Volume XII - -Author: Various - -Editor: Jared Sparks - -Release Date: March 25, 2013 [EBook #42413] - -Language: English - -Character set encoding: ISO-8859-1 - -*** START OF THIS PROJECT GUTENBERG EBOOK DIPLOMATCI CORR. AM. REVOL., VOL 12 *** - - - - -Produced by Frank van Drogen, Julia Neufeld and the Online -Distributed Proofreading Team at http://www.pgdp.net - - - - - - - - - - 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 _Mčre 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 THIS PROJECT GUTENBERG EBOOK DIPLOMATCI CORR. AM. 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