 |
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
GEORGE WASHINGTON TO ROBERT R. LIVINGSTON.
Head Quarters, May 13th, 1783.
Sir,
Your favor of the 3d came to hand by the last post. Before this time you will have seen the report I made to Congress of the interview with Sir Guy Carleton. I am very sorry its result proved so indecisive. That this arises from the cause you mention I am not fully persuaded. I believe a want of information from his Court, which had been for some time without any administration, has been a great embarrassment to him.
The civil jurisdiction of West Chester County Sir Guy Carleton appeared very willing, in his conversation, to relinquish to the State; but what reply he will make to the Governor, when he comes to reduce it to writing, I know not. Long Island he seemed to think could not be so easily delivered up. It would be attended with many inconveniences, and he mentioned particularly the facility it would give to desertions, and the necessity of holding it for the accommodation of those people, who must eventually be obliged to leave the country. Staten Island was also necessary for his convenience.
I have had no reply from Sir Guy since his return to New York, nor, I presume, has Governor Clinton heard anything from him.
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
TO THE CHAIRMAN OF A COMMITTEE OF CONGRESS.
Philadelphia, May 19th, 1783.
Sir,
The inquiries that the committee were pleased to do me the honor to make this morning, relative to my continuing to exercise the office of Secretary of Foreign Affairs, were extremely embarrassing to me, because, on the one hand, I find it impossible to continue in the office on the present establishment, without material injury to my private affairs, and, on the other, to propose the terms on which I would stay would be to overrate my own importance, and to suppose that others could not be had upon such conditions as Congress have been pleased to consider as sufficient. Having given my whole time, and a considerable part of my property to the public during the war, I see, with pleasure, that the affairs of the United States are not now in such a situation as to render the contributions of an individual necessary. It is my wish to endeavor to repair the injuries my estate has sustained by the ravages of the enemy, and my own neglect, by the offices I have held.
From my former letter, Congress will be able to judge how far my expenses in the office exceed the salary. But as it by no means follows, that another by greater economy and humbler, but, perhaps, more just ideas of the importance of this office, could not live at less expense, I do not think that mine should be any reason to induce Congress to make other changes, than such as they shall of themselves deem necessary. And in this view, I requested the committee, that called upon me last winter, to keep the matter of emoluments entirely out of sight in their report, as I then considered my stay only as a temporary inconvenience.
At present, Sir, I must choose between the office I have been honored with from Congress and an important State office. If I continue in the first, I must suppose it the business of years, and lose sight of all other objects in my own State, where I have something to hope from my connexions and the favor of my countrymen, and where I possess an estate, the value of which depends in a great measure upon my attention to it. Under these circumstances, I flatter myself that the committee will not think me blamable, when I assure them, that though I am willing to give my time and services to the public if they should be deemed necessary, yet I cannot in justice to myself or my family, add to this gift that of such a portion of my property as I find absolutely necessary to support the office I hold.
Permit me, Gentlemen, to add, that having no wishes upon this subject, I am sincerely desirous that personal considerations may not enter into the arrangements that Congress make thereon. I feel myself extremely honored by the attention they have shown me in directing you to confer with me on this subject; and I reflect with great pleasure on the reasons I have had to be satisfied with their conduct towards me since I have been honored with the office.
I am, Gentlemen, &c.
ROBERT R. LIVINGSTON.
* * * * *
TO JOSEPH NOURSE.
Philadelphia, May 26th, 1783.
Sir,
In compliance with your request, I have collected from the papers in my office the following account of the moneys received by loans, or otherwise, from Holland, France, and Spain.
The first loan that was opened in Holland on our account with success, was opened by His Most Christian Majesty, and under his special guarantee, for ten millions of livres. Since that, another loan was contracted by Mr Adams with private banking houses, to the amount of five millions of florins.
These houses, in a letter directed to me of the 16th of August last, write that they had at that time in cash by them, one million four hundred and eightyfour thousand florins, of which the interest ran as follows;
1,314,000 florins, from the 1st of June,
170,000 florins, from the 1st of July.
They add, that they had already paid to the order of Mr Adams, in favor of sundry individuals, the sum of two thousand nine hundred and two florins, and that that Minister had hinted to them, that it would be necessary to pay some drafts of Mr Laurens's when arrived, and a few other unavoidable expenses, which would amount to about two hundred thousand florins. By a letter of the 18th of November last, they have acknowledged the receipt of the contract duly ratified, so that the money they had on hand has been since that time at the disposal of Congress.
The moneys received from France before the year 1780, cannot be very accurately stated, for the want of order in the books kept by the Committee of Foreign Affairs. By the best estimate I have been able to make, the amount of such moneys appears to be about nine millions of livres, exclusive of one million received from the Farmers-General on a particular contract. To this, must be added the grants obtained by Colonel Laurens, which, including military stores, amount to fourteen millions of livres. So that the whole of the money received from France, amounts to about four and twenty millions tournois. I should observe, that I have not here made any distinction between loans and gifts, though about eight millions of the above sum have been granted by France without any expectation of being repaid.
From Spain we have only received one hundred and fifty thousand dollars, which were granted to Mr Jay in the beginning of the year 1780.
I have not mentioned the engagement, which France has lately entered into to supply the United States with six millions of livres, as you may find everything that relates to it in the appendix to the address of Congress to the States.
I have the honor to be, &c.
ROBERT R. LIVINGSTON.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, June 2d, 1783.
Sir,
I have the honor to submit to Congress a letter from M. Dumas, with several papers relative to a negotiation, which appears to have been commenced by the States of Holland with our Ministers. As this subject may be very important in its consequences, it is to be presumed, that they would wish to have the direction of Congress. I would therefore take the liberty to suggest, that these papers be committed to a special committee.
As my stay in town will not admit of my executing the commission, which M. Van Berckel requires, I must pray Congress also to give some direction therein.
I have the honor to be, &c.
ROBERT R. LIVINGSTON.
THE
CORRESPONDENCE
OF
ROBERT MORRIS,
SUPERINTENDENT OF FINANCE.
During the first years of the Revolution the financial concerns of Congress were managed by a Committee, under the general supervision of that body. Disorder and confusion were the gradual results of such a system. It was at length resolved to put this Department into the hands of a responsible individual, and ROBERT MORRIS was unanimously chosen Superintendent of Finance, on the 20th of February, 1781. Various reasons prevented his engaging in the duties of the office till the May following.
The high expectations of Congress, and of the country, were fully answered by the ability and success with which Mr Morris administered the affairs of this new Department. Funds were provided, and public credit restored. He remained in office till November 1st, 1784.
Nothing can afford a stronger proof of his zeal, assiduity, and unwearied labor, than the correspondence which he has left respecting the transactions of his office. The letters here published are a selection only from the large mass, which has been preserved. They pertain chiefly to the foreign relations of the United States, either as effected by European loans, or by the agency of the internal resources of the country. In fact, all the financial operations of Congress were more or less connected with their Foreign Affairs since loans from abroad were necessary, and these could be produced only on the strength of public credit and the means of sustaining it at home.
THE
CORRESPONDENCE
OF
ROBERT MORRIS.
* * * * *
ORGANIZATION OF THE FINANCE DEPARTMENT.
In Congress, February 7th, 1781.
Congress resumed the consideration of the plan for the arrangement of the civil executive departments of the United States; and thereupon,
Resolved, That there be a Superintendent of Finance, a Secretary at War, and a Secretary of Marine;
That it shall be the duty of the Superintendent of Finance, to examine into the state of the public debts, the public expenditures, and the public revenue; to digest and report plans for improving and regulating the finances, and for establishing order and economy in the expenditure of the public money; to direct the execution of all plans, which shall be adopted by Congress respecting revenue and expenditure; to superintend and control the settlement of all public accounts; to direct and control all persons employed in procuring supplies for the public service, and in the expenditure of public money; to obtain accounts of all the issues of the specific supplies furnished by the several States; to compel the payment of all moneys due to the United States, and in his official character, or in such manner as the laws of the respective States shall direct, to prosecute in behalf of the United States, for all delinquencies respecting the public revenue and expenditures; to report to Congress the officers who shall be necessary for assisting him in the various branches of his Department.
In Congress, February 20th. Congress proceeded to the election of a Superintendent of Finance; and the ballots being taken, Robert Morris was unanimously elected.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, March 13th, 1781.
Sir,
I had the honor to receive your Excellency's letter of the 21st of last month, enclosing the Act of Congress of the 20th, whereby I am appointed, by a unanimous election of that honorable body, to the important office of SUPERINTENDENT OF FINANCE. Perfectly sensible of the honor done me by this strong mark of confidence from the sovereign authority of the United States, I feel myself bound to make the acknowledgments due, by pursuing a conduct formed to answer the expectations of Congress, and promote the public welfare. Were my abilities equal to my desire of serving America, I should have given an immediate determination after this appointment was made; but conscious of my own deficiencies, time for consideration was absolutely necessary. Little, however of that time, which has elapsed have I been able to devote to this object, as the business before the Legislature of Pennsylvania wherein I have the honor of a seat, has demanded and continues to demand my constant attendance.
So far as the station of Superintendent of Finance, or indeed any other public station or office, applies to myself I should without the least hesitation have declined an acceptance; for after upwards of twenty years assiduous application to business as a merchant, I find myself at that period when my mind, body, and inclination combine to seek for relaxation and ease. Providence had so far smiled on my endeavors as to enable me to prepare for the indulgence of these feelings, in such a manner as would be least injurious to the interest of my family. If, therefore, I accept this appointment, a sacrifice of that case, of much social and domestic enjoyment, and of every material interest, must be the inevitable consequence; and as my ambition was entirely gratified by my present situation and character in life, no motive of that kind can stimulate me to the acceptance.
Putting myself out of the question, the sole motive is the public good; and this motive I confess comes home to my feelings. The contest we are engaged in appeared to me, in the first instance, just and necessary; therefore, I took an active part in it. As it became dangerous, I thought it the more glorious, and was stimulated to the greatest exertions in my power, when the affairs of America were at the worst. Sensible of the want of arrangement in our monied affairs, the same considerations impel me to this undertaking, which I would embark in without hesitation, could I believe myself equal thereto; but fearing this may not be the case, it becomes indispensably necessary to make such stipulations, as may give ease to my feelings, aid my exertions, and tend to procure ample support to my conduct in office, so long as it is founded in and guided by a regard to the public prosperity.
In the first place then, I am to inform Congress, that the preparatory steps I had taken to procure to myself relaxation from business, with least injury to the interests of my family, were by engaging in certain commercial establishments with persons, in whom I had perfect confidence as to their integrity, honor, and abilities. These establishments I am bound in honor and by contracts to support to the extent agreed on. If, therefore, it be in the idea of Congress, that the office of Superintendent of Finance is incompatible with commercial concerns and connexions, the point is settled; for I cannot on any consideration consent to violate engagements or depart from those principles of honor, which it is my pride to be governed by. If, on the contrary, Congress have elected me to this office under the expectation, that my mercantile connexions and engagements were to continue, an express declaration of their sentiments should appear on the minutes, that no doubt may arise or reflections be cast on this score hereafter.
I also think it indispensably necessary, that the appointment of all persons who are to act in my office, under the same roof, or in immediate connexion with, should be made by myself; Congress first agreeing, that such secretaries, clerks, or officers, so to be appointed are necessary, and fixing the salaries for each. I conceive, that it will be impossible to execute the duties of this office with effect, unless the absolute power of dismissing from office or employment all persons whatever, that are concerned in the official expenditure of public moneys, be committed to the Superintendent of Finance. For unless this power can be exercised without control, I have little hopes of efficacy in the business of reformation, which is probably the most essential part of the duty.
These being the only positive stipulations that occur to me at this time, the determination of Congress thereon will enable me to determine whether to accept or decline the appointment. I must, however, observe that the act of Congress of the 7th of February, describing the duties of the Superintendent of Finance, requires the execution of many things, for which adequate powers are not provided, and it cannot be expected, that your officer can in such case be responsible. These however may be the subjects of future discussions.
With sentiments of the highest respect, for you and Congress, I have the honor to subscribe myself, your Excellency's most obedient and most humble servant.
ROBERT MORRIS.[30]
FOOTNOTES:
[30] During the whole period in which Mr Morris held the office of Superintendent of Finance, he kept a Diary, in which he entered daily the principal transactions of his department. The following is an extract from the Diary.
"On the 21st of February I received a letter from the President of Congress, enclosing the resolves of the 20th, whereby I was unanimously elected the Superintendent of Finance of the United States. This appointment was unsought, unsolicited, and dangerous to accept, as it was evidently contrary to my private interest, and if accepted must deprive me of those enjoyments, social and domestic, which my time of life required, and to which my circumstances entitled me; and a vigorous execution of the duties must inevitably expose me to the resentment of disappointed and designing men, and to the calumny and detraction of the envious and malicious. I was therefore determined not to engage in so arduous an undertaking. But the solicitations of my friends, acquaintance, and fellow citizens, a full conviction of the necessity, that some person should commence the work of reformation in our public affairs, by an attempt to introduce system and economy, and the persuasion, that a refusal on my part, would probably deter others from attempting this work, so absolutely necessary to the safety of our country; these considerations, after much reflection and consultation with friends, induced me to write a letter to the President of Congress, dated the 13th of March, 1781."
* * * * *
PROCEEDINGS IN CONGRESS.
March 20th. A letter of the 13th instant from Robert Morris was taken into consideration, and it was
Resolved, that the United States in Congress assembled do not require him to dissolve the commercial connexions referred to in the said letter.
March 21st. The consideration of the letter of the 13th instant, from Robert Morris being resumed, a motion was made, and it was
Resolved, that the Superintendent of Finance be, and he is hereby empowered to appoint and remove at his pleasure, his assistants in his peculiar office or chamber of business in immediate connexion with him; it being first determined by the United States in Congress assembled, that such assistants so to be appointed are necessary, and what the salary of each shall be.
Ordered, that the remainder of Mr Morris's letter be referred to a committee of three. The members appointed were Messrs Houston, Burke, and Wolcott.
* * * * *
TO THOMAS BURKE, WILLIAM HOUSTON, AND OLIVER WOLCOTT, COMMITTEE OF CONGRESS.
Date Uncertain.
Gentlemen,
When I had the honor of a visit from you on the subject of my interview with Congress, it was agreed that I should make out and deliver you a list of the several officers concerned in the expenditure of public money, over whom I judged it necessary for the Superintendent of Finance to have the uncontrolled power of dismission. But on reflection I found it was not in my power to render such a list, because I do not know the several degrees of officers now in employment, and even if I did, such a list would not answer the end, because others may hereafter be created, who should also be subjected to the power of the Financier, and it would be very troublesome for Congress on every such appointment to pass a resolution for the purpose. There will also be appointments made occasionally by the Commander in Chief, the Heads of Department, and by other officers, in which the expenditure of public moneys will be involved, and of course such appointments must also be subject to the same authority. For these reasons, it seems proper that the power of the Minister of Finance, with respect to the control and dismission from office of all persons concerned in the expenditure of public property, should be defined in one Act of Congress, vesting him with that authority.
To me it appears absolutely necessary, that this power should be vested in the Financier to enable him to remedy and prevent public abuses; and the extent should be measured by the necessity and the use. As to myself, I am far from desiring power for the sake of power. Indeed I think it is generally more dangerous to the possessor than to the objects of it. Consequently I cannot have a wish to extend it beyond the necessity and utility mentioned.
The whole business of finance may be described in two short but comprehensive sentences, if I have proper notions on the subject. It is to raise the public revenues, by such modes as may be most easy and most equal to the people; and to expend them in the most frugal, fair, and honest manner. In our case the first part must ever be the business of Congress, and the Legislatures of the respective States; because the powers of taxation cannot be delegated. The second I take to be the most essential part of the duty of the Superintendent of Finance. He must ever have it in view to reduce the expenditures as nearly as possible to what in justice and in reason they ought to be; and to do this, he must be vested with power to dismiss from employment those officers he shall find unnecessary, unequal to their stations, inattentive to their duty, or dishonest in the exercise of it.
In a monarchy this power need not be officially vested in a Minister, because he can have constant intercourse with the Sovereign, and by that means he is in the daily exercise of it. Where the sovereignty is vested in a public body of men, such an intercourse is impracticable; and I am persuaded that a Minister who would venture to execute the duties of his office with vigor, without possessing uncontrolled the power of dismission, would in a few months put it out of his power to proceed in his business, and Congress would have full employment to hear and determine between him and suspended officers. On the contrary, if a dismissed officer can have no appeal but to the laws of the land, Congress will not be troubled, business may be conducted with decision, and the very knowledge that such a power exists, will have a tendency to prevent the frequent exercise of it, after the first reforms are effected.
I have been told, that some gentlemen considered the expressions in my letter to Congress on this subject so general as that they might be construed to comprehend the Commander in Chief, Heads of Department, &c. But this cannot be. The Commander in Chief is not concerned himself, but employs others in the expenditure of public money, to whom he grants warrants or drafts on the military chest; and the persons so employed ought to be accountable, and subject to dismission. I suppose officers of the army may frequently be so employed, and in that case it cannot be supposed, that the power of the Financier extends to the military commission, for it certainly must be confined to the money matters. There is one exception with respect to what I have said of the Commander in Chief, and that is the expenditures for secret service, and in this respect I think he should be responsible to the Sovereign only.
The Quarter Master General, having a military as well as a civil duty, he cannot be under the control of the Financier, for the first, although he certainly ought to be the last, which has great connexion with heavy expense, and perhaps it would be best, that he should execute all the business of expenditures by one or more deputies, which would exonerate him from that power, which they must be subjected to. The Commissary General, and every person employed under him, are the immediate objects of this power. The Paymaster General, may be considered as a channel of conveyance, through which money passes from the treasury to the army, and as he is subjected to the law military, the Minister of Finance needs no other authority over him and his officers, than the power of putting under arrest and suspending for mal-conduct in office.
All persons employed as Commissaries of military stores, of clothing, or any other denomination, wherein the expenditure of public money or property is connected, ought to be subjected to this authority. The expenses in the medical department are said to have exceeded those of the like kind in any other country. It is, therefore, evident that the Purveyors, Commissaries, &c. in this department should be subject to the same immediate control as others; and although the Financier cannot judge of the medical skill of the Director General and his officers, yet if any waste or misapplication of public property in their department should come to his knowledge, he should have authority to bring offenders to a Court Martial.
There is no possibility of introducing public economy without the frequent adjustment of accounts; and the more various these may be, the greater is the necessity of constant attention to liquidate them speedily and well. The Financier ought, therefore, to have the power of removing any of the officers, whose business it is to examine and settle the public accounts, that so he may be enabled to obtain a proper and early settlement, and prevent the dangerous effects of inattention or corruption on one hand, or of delay, insolence, and tyranny to individuals concerned in such accounts, on the other. And on account of this power the Financier should have no accounts with the public himself, but wherever expenditures are necessary in his department, he should employ proper persons therein, subject to the same powers and modes of accounting with every other person employed in expending public property; or if of necessity he shall at any time have accounts with the public, Congress can appoint a committee, or special board, to examine and settle his accounts.
From what I have already said, I think it is evident, that the power I have stipulated for is absolutely necessary; and although it is not possible to enumerate every object of that power, yet the general lines within which they may be comprehended can be drawn from the observations I have made, although I have said our foreign departments, as these may be brought into consideration hereafter when it shall appear necessary.
Whoever contemplates the extent of the United States, and the vast amount of their present expenses, while at the same time all our operations languish, must certainly be convinced that some immediate remedy ought to be applied. The office of Superintendent of Finance I suppose is meant as one means of restoring economy and vigor; and nothing will keep up in the minds of the public servants such a constant sense of their duty, as a knowledge of the power to remove them in the hands of a person of vigilant and decisive character. Whether I shall have sufficient courage and perseverance to act up to that character, and whether my small abilities, supported by application and attention, will enable me to render essential service in the execution of this office, is become an object of great consideration, that fills my mind with much apprehension, and induces me to wish I had declined this arduous undertaking in the first instance.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
PROCEEDINGS IN CONGRESS.
April 21st. On a report of the committee, to whom was referred Mr Morris's letter of the 13th of March,
Resolved, That the Superintendent of Finance be, and he is hereby authorised, to remove from office or employment, for incapacity, negligence, dishonesty or other misbehavior, such persons, not immediately appointed by the United States in Congress assembled, as are or may be officially intrusted with, and immediately employed in the expenditure of the public supplies, stores, and other property; in stating, examining and passing the public accounts, or in the receipt of the continental revenues of the United States, and such of the said persons as are or may be in his judgment unnecessary, reporting to such authority, board, minister, or office, to whom it may belong to supply the vacancy, the respective names of the persons so removed.
That he be authorised to suspend from office or employment, for similar causes, persons officially employed and intrusted as aforesaid, immediately appointed by the United States in Congress assembled, reporting forthwith their names and the reason of suspension.
Provided, that in all cases where any of the persons aforesaid, are or may be amenable to the law martial, the Superintendent be, and he is hereby authorised and directed, if he shall deem it most expedient for the public service, to put them in arrest by order in writing, and to apply to the officer whose duty it may be, to order a court martial; and such officer is hereby directed to order proceedings on the arrest accordingly.
That in every case of suspension, all pay and emoluments cease from the date thereof, unless the persons suspended be, upon trial, acquitted and restored; and the Superintendent shall have power to supply the place when it may be necessary, by a temporary appointment, to continue until the person suspended be restored or dismissed.
That the aforesaid powers shall not be construed to interfere with the rank, commission, or military duty of any officer in the line of the army, or those who may be duly intrusted with money for secret services by Congress, or the Commander in Chief of the army, or commanding officer of a separate department.
That the powers aforesaid be exercised during the pleasure of Congress, but not to extend beyond the duration of the war.
April 27th. On a further report of the committee on Mr Morris's letter of the 13th ultimo,
Resolved, that in order that the Superintendent of Finance may be at liberty to devote his time and attention to the more immediate duties of his office, he be, and hereby is authorised, to appoint by letter of attorney, or otherwise, such person or persons, as he may think proper, to prosecute or defend for him, in his official capacity, or in behalf of the United States, in all places where the same may be necessary.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, May 14th, 1781.
Sir,
The honor conferred by Congress in appointing me Superintendent of Finance, their several resolutions of the 20th of March, and the 21st and 27th of April, which your Excellency has been pleased to transmit, and a serious conviction of that duty, which every citizen owes to his country, especially in times of public calamity, will no longer permit me to hesitate about the acceptance of that office, although I must again repeat, that I have the fullest sense of my own inability. I shall, however, strive to find such assistance as will enable me, in some measure, to answer the reasonable expectations of Congress, to whom I can promise for myself nothing more than honest industry.
You will readily perceive, that much time must be consumed in procuring proper officers; fixing on men for assistants, whose abilities and integrity may be depended on; in laying plans for obtaining money with the greatest ease to the people, and expending it with the greatest advantage to the public; forming arrangements necessary to carry these plans into execution; and obtaining information as to the present state of things, in order that abuses may be, if possible, speedily and effectually remedied.
Besides this, it will be necessary that I should confer with the Commander in Chief, on the various expenditures of the war, and the means of retrenching such as are unnecessary. Let me add, that the accounts of my private business must be adjusted, so as that all my affairs may be put into the hands of other persons, and subjected to their management. My necessary commercial connexions, notwithstanding the decided sense of Congress, expressed in their resolution of the 20th of March, might, if the business were transacted by myself, give rise to illiberal reflections, equally painful to me and injurious to the public. This reason alone would deserve great attention; but, further, I expect that my whole time, study, and attention will be necessarily devoted to the various business of my department.
Having thus stated some of the causes, which will prevent me from immediately entering on the arduous task assigned me, I pray leave to call the attention of Congress to the advanced season, and then I am persuaded their own good sense will render it unnecessary for me to observe, that very little can be expected from my exertions during the present campaign; they will, therefore, easily perceive the propriety of the request I am to make, that the business may go on according to the present arrangements, or such other as Congress may devise, until I can take it up, which I promise to do as speedily as possible. By this means, I may be enabled so to dispose of the several members of my department, as to form them into a regular system; whereas, by throwing the whole immediately upon me, I shall be inevitably involved in a labyrinth of confusion, from which no human efforts can ever afterwards extricate me.
Another consideration of great magnitude, to which I must also pray the attention of Congress, is the present public debts. I am sure no gentleman can hope that these should be immediately paid out of an empty treasury. If I am to receive and consider the applications on that subject, if I am to be made responsible, that alone will, I fear, be full employment for the life of one man, and some other must be chosen to attend to the present and provide for the future. But this not all; if from that, or any other cause, I am forced to commit a breach of faith, or even to incur the appearance of it, from that moment my utility ceases. In accepting the office bestowed on me, I sacrifice much of my interest, my ease, my domestic enjoyments, and internal tranquillity. If I know my own heart, I make these sacrifices with a disinterested view to the service of my country. I am ready to go still further; and the United States may command everything I have, except my integrity, and the loss of that would effectually disable me from serving them more. What I have to pray, then, is, that the adjustment of all past transactions, and of all that relates to the present system, may be completed by the means already adopted, that whatever remains unpaid may become a funded debt, and that it may in that form be committed to me, to provide for the yearly interest and for the eventual discharge of the principal. This task I will cheerfully undertake; and if, in the progress of things, I am enabled to go further, with equal cheerfulness it shall be done; but I must again repeat my serious conviction, that the least breach of faith must ruin us forever.
It is not from vanity that I mention the expectations, which the public seem to have formed from my appointment. On the contrary, I am persuaded, they are raised on a weak foundation, and I must lament them, because I foresee they must be disappointed. I must, therefore, entreat that no flattering prospect of immediate relief may be raised.
Congress will know that the public credit cannot be restored without method, economy, and punctual performance of contracts. Time is necessary to each; and therefore the removal of those evils we labor under can be expected from time only. To hold out a different idea would deceive the people, and consequently injure the public service.
I am sure it is unnecessary to add, before I close this letter, that I confidently expect my measures will meet with the fullest support from Congress, so long as they are honestly directed to the general welfare. In this conviction, and with every sentiment of respectful attention, I have the honor to be, &c.
ROBERT MORRIS.[31]
FOOTNOTES:
[31] May 14th. Wrote a letter to the President, promising to accept the office. At this time, however, various reasons occurred to prevent an immediate acceptance of the Commission; but particularly it was necessary to retain my seat in the Assembly of Pennsylvania, in order to lay a foundation for such measures as might tend to their support of me in pursuing the public good, not doubting but their example would have proper influence on the Legislatures of the other States, especially in their determination upon general points, such as their repealing those tender and penal laws, which in their operation had destroyed all public and private confidence and credit; in passing effective tax bills, that might yield substantial aid to the United States for calling in the paper money, that had lost its credit; and is adopting plans of reviving and establishing the credit of such as had been injured in some degree, but which, being necessary in circulation, and originally issued on funds sufficient for its redemption, ought not to be given up to ruin, if possible to prevent it. Diary.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, May 17th, 1781.
Sir,
I beg leave to submit the enclosed plan for establishing a National Bank in these United States, and the Observations on it, to the perusal and consideration of Congress.
Anticipation of taxes and funds is all that ought to be expected from any system of paper credit. This seems as likely to rise into a fabric equal to the weight, as any I have yet seen or thought of; and I submit whether it may not be necessary and proper, that Congress should make immediate application to the several States, to invest them with the powers of incorporating a bank, and for prohibiting all other banks, or bankers, in these States, at least during the war.[32]
I have the honor to be, &c.
ROBERT MORRIS.
FOOTNOTES:
[32] See the Plan of the National Bank here mentioned, and also the Observations on it, in John Jay's Correspondence, Vol. VII. p. 444.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, May 23d, 1781.
Sir,
As I have heard in times past, that the treasury has frequently been in want of hard money, to comply with engagements made with the approbation of Congress, and sometimes obliged to obtain it on terms inconsistent with the dignity of government, and not very consonant to the public interest, I would wish to guard against the like inconveniences by importing from foreign countries a supply at least sufficient to pay rents of the houses and offices necessarily employed for the Continental service; also to answer, as far as may be, the calls for secret service. And even if I could devise the means of obtaining it, I should suppose it would be agreeable to bring such sums as may answer other valuable purposes; but as it cannot be imported but at the risk of being captured by the enemy, and the danger of the elements, you will perceive the necessity of my being authorised by Congress to enter on and execute this business at the risk, and for account of the Continent, on the best terms in my power.
The sum may be limited if thought needful; although I should suppose it is not possible in our circumstances to obtain too much; yet the sum to be risked in any one bottom may very properly not exceed a certain amount in a line of battle ship or frigate, and a smaller in any one merchant vessel. Should Congress think proper to authorise these measures, as I hope they will, the private journals will be most proper to insert the proceedings in; as a want of secrecy may endanger the money.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO ALEXANDER HAMILTON.
Philadelphia, May 26th, 1781.
Sir,
It is some time since I received your performance, dated the 30th of April last. I have read it with that attention, which it justly deserves, and finding many parts of it to coincide with my own opinions on the subject, it naturally strengthened that confidence, which every man ought to possess to a certain degree in his own judgment.
You will very soon see the plan of a bank published, and subscriptions opened for its establishment, having already met with the approbation of Congress. It only remains for individuals to do their part, and a foundation will be laid for the anticipation of taxes and funds, by a paper credit that cannot depreciate. The capital proposed fell far short of your idea; and, indeed, far short of what it ought to be; but I am confident if this is once accomplished, the capital may afterwards be increased to almost any amount. To propose a large sum in the outset, and fail in the attempt to raise it, would be fatal. To begin with what is clearly within our power to accomplish, and on that beginning to establish the credit, that will inevitably command the future increase of capital, seems the most certain road to success.
I have thought much about interweaving a security with the capital of this bank, but am apprehensive it would convey to the public mind an idea of paper being circulated on that credit, and that the bank in consequence must fail in its payments, in case of any considerable run on it; and we must expect, that its ruin will be attempted by external and internal foes. I have, therefore, left that point to the future deliberations of the Directors of this bank, to whom in due time, I shall communicate your address.
I esteem myself much your debtor for this piece, not merely on account of the personal respect you have been pleased to express, but chiefly on account of your good intentions; and for these, and the pains you have taken, I not only think, but on all proper occasions shall say, the public are also indebted to you.
My office is new, and I am young in the execution of it. Communications from men of genius and abilities, will always be acceptable, and yours will ever command the attention of, Sir, your obedient humble servant,
ROBERT MORRIS.
* * * * *
TO MAJOR GENERAL PHILIP SCHUYLER.
Philadelphia, May 29th, 1781.
Dear Sir,
You will probably have heard that Congress have done me the honor to bestow their confidence, by appointing me to the important station of Superintendent of Finance of North America; a station that makes me tremble when I think of it, and which nothing could tempt me to accept, but a gleam of hope, that my exertions may possibly retrieve this poor distressed country from the ruin with which it is now threatened, merely for want of system and economy in spending, and vigor in raising the public moneys. Pressed by all my friends, acquaintances, and fellow citizens, and still more pressed by the necessity, the absolute necessity, of a change in our monied system, to work salvation, I have yielded, and taken a load on my shoulders, which it is impossible to get clear of without the faithful support and assistance of those good citizens, who not only wish, but will promote the service of their country. In this light I now make application to you, Sir, whose abilities I know, and whose zeal I have every reason to believe. The object, however, before me, is not of such magnitude as to require any great exertion of either at present, although it is of sufficient importance to induce the invocation.
General Washington is distressed for want of an immediate supply of flour, and as I am not even yet fairly entered on the execution of my office, and when I do, have to meet an empty treasury, and a totally exhausted credit, it must be some time before funds can be created or money be commanded for any purpose whatsoever; and as I do not know any gentleman of such resources as General Schuyler, he seems the most likely of all men to give assistance under the present circumstances. I must, therefore, request that you will take the most speedy and effectual measures to deliver to the order of his Excellency, General Washington, one thousand barrels of flour, which I am sure you will purchase and cause to be transported on the most reasonable terms that are practicable. No time must be lost, but the flour must be sent down in the parcels as fast as procured. The Pennsylvania Bank had all the flour they supplied to the army, secured with outside lining hoops on each head of every barrel, and the weight and tare marked on each cask. If you were to cause this to be done, and add to the mark your name, it would save a waste of flour, oblige the Issuing Commissary to take notice of an account for the weights as well as barrels, and teach the army to think that they are indebted to your exertions for a seasonable supply.
I have the means of raising hard money to pay for this flour, and the charges on it; but the longer time I am allowed to do it, the more I can consult the public interest. I take it for granted, that you can, upon your own credit and engagements, either borrow the money for a few months, necessary to accomplish this business; or that you can make the purchases on such credit, without giving higher prices; and for your reimbursement, you may either take me as a public or a private man, for I pledge myself to repay you with hard money wholly, if required, or part hard and part paper, if you so transact the business. In short, I promise, and you may rely that no consideration whatever, shall induce me to make a promise, that I do not see my capability to perform, that I will enable you to fulfil your engagements for this supply of flour, if you find it convenient, you may draw on me for hard money or paper, payable in such sums, and at such times, as you can conceive may not be inconvenient, judging by what I have said on this subject. Should good bills on France be wanted, at about —— hard money your currency, for five livres tournois, I will furnish them, drawn or endorsed by myself, for the whole, or any part of this purchase.
I hope we shall hereafter supply our army by contracts, and your information and observations on this subject would be very obliging. Perhaps if you are not fully employed otherwise, you might start some worthy man under your patronage, that might render essential service to the public, with proper advantage to himself and connexions in this line.
I am, Dear Sir, yours, &c.
ROBERT MORRIS.
P. S. Remember, that I put absolute dependence on you for this one thousand barrels of flour, and it must be sent to the army directly.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, June 4th, 1781.
Sir,
Having been informed by several members of Congress, as also by his Excellency, the Chevalier de la Luzerne, that it was determined to put the management of the moneys lately granted by his Most Christian Majesty under my direction, in order that they might be punctually applied to the purposes for which the grant was made, viz. a vigorous prosecution of the present campaign; I had, in conjunction with the Minister of France, formed some arrangements for drawing part of this money into immediate use; but, on applying to the Secretary of Congress, I do not find that any act has been passed giving me authority over the moneys so granted; consequently, all proceedings must stop until the previous steps are taken by Congress.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, June 8th, 1781.
Dear Sir,
In a private letter, which I did myself the honor to write you on the 6th instant, I announced the appointment I have received from the honorable Congress, to the office of Superintendent of the Finances of the United States of North America; and I now beg leave to address you in my official character.
Congress have thought proper to commit to me the disposition and management of the money granted to the United States by his Most Christian Majesty, in aid of our operations for the present campaign, in order that the same may be solely applied to that use; and for this reason, I have found it necessary to keep the whole sum of this grant separate and distinct from any other, so that its application may at any time be clearly seen. Instead, therefore, of drawing upon your Excellency, who have many other bills running upon you, I have judged it expedient to name Messrs Le Couteulx & Co., bankers in Paris, to receive the money from his Majesty's Ministers, so that they may be able to honor my bills with acceptance whenever they appear, and punctually to acquit them as they fall due. I have written to Messrs Le Couteulx, that you would join and support them in any application that may become needful to his Majesty or his Ministers, which I hope you will readily do.
And, on the other hand, your attention to the interest of this country will lead you to inform yourself whether the house of Le Couteulx and Company, are as perfectly safe and rich as they ought to be, to entitle them to this trust. They are represented to me as one of the safest and most prudent banking houses in Europe; and his Excellency, the Minister of France at this place, now writes to have five hundred thousand livres tournois deposited with them, on account of the United States, subject to my drafts or orders. Should their credit not entitle them to this trust, you will please to interfere, and consult with M. Necker what banker to employ in such case, directing those you do employ, to accept and pay my drafts. However, I imagine these gentlemen will be found sufficiently safe.
Should it be more agreeable to M. Necker that any other banker be made use of, give me the name and write me the propriety of such alteration, and I shall acquiesce in such change immediately on the receipt of your letter, for I have no partiality in public business. All I wish is to act with security, and to the best advantage.
If you think it proper to inquire into the terms on which the bankers will receive and pay this money, and settle their commissions on the most reasonable footing, I shall be happy in your doing so. I do not, however, wish to give you any trouble that is not proper and necessary; being, with the highest respect, your Excellency's most obedient, humble servant,
ROBERT MORRIS.
* * * * *
TO MESSRS LE COUTEULX & CO., BANKERS IN PARIS.
Philadelphia, June 8th, 1781.
Gentlemen,
In a private letter, I have already informed you of my appointment, by the honorable Congress, to the office of Superintendent of the Finances of the United States of North America; and in that character I now address you.
His Most Christian Majesty, having been graciously pleased to grant an aid of money for the purpose of invigorating our operations during the present campaign, I find it convenient to make use of your house as bankers to receive from his Majesty's Ministers such sums as they may have occasion to deposit, in order that you may accept and pay my drafts on you as fast as they shall appear. His Excellency, the Minister Plenipotentiary of France at this place, now writes to his Court, at my request, desiring that five hundred thousand livres tournois may be placed in your hands thirty days after the receipt of his letter, the said sum to be subject to my drafts or orders, and I shall proceed to draw upon you as fast as purchasers offer for the bills; therefore, I beg you will be prepared to honor my bills, drawn as Superintendent of Finance, whenever they offer; for I would not, on any account, that there should be the least demur; and I am confident, that his Most Christian Majesty's Minister of Finance will enable you punctually to make payment as they fall due. I shall communicate this matter to his Excellency, Benjamin Franklin, Minister Plenipotentiary from these States to the Court of Versailles, who will join you in any application that may become necessary in this business; which, however, I expect will be conducted much to your satisfaction. And as it may become important, I hope your attention to it can be relied on, and that you will render the charges as moderate as possible.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE, MINISTER OF FRANCE.
Philadelphia, June 8th, 1781.
Sir,
The honorable Congress having thought proper to invest me with the power, disposition, and management of the moneys granted by his Most Christian Majesty to the United States, for the purpose of assisting them to carry on the present campaign with vigor, I have, with your concurrence, taken some arrangements for drawing it into the uses for which the grant has been made; and in conformity with your promise, I pray you to write immediately to his Majesty's Ministers, that they cause the sum of five hundred thousand livres tournois to be deposited with Messrs Le Couteulx & Co., bankers in Paris, for account of the United States of North America, and subject to my drafts or orders as Superintendent of Finance of the said United States.
This deposit I hope may, without inconvenience, be made in thirty days after the receipt of your letter; and I shall proceed to draw on Messrs Le Couteulx & Co. in full confidence thereof, until my bills on them shall amount to the said sum of five hundred thousand livres tournois, when I will give you timely notice, that another deposit may be made for the like purpose, and by this means I hope we shall occasion as little trouble to his Majesty's Minister of Finance as the nature of this transaction will admit of.
With great respect and esteem, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR RESPECTING THE NATIONAL BANK.
Philadelphia, June 11th, 1781.
Sir,
No doubt you have seen in the public papers, the plan for establishing a National Bank, the necessity of which everybody sees, that allows himself the least time for reflection on the present state of public credit. All the public bodies in America have, more or less, lost the confidence of the world as to money matters, by trying projects and applying expedients to stop a course of depreciation, which original errors had fixed too deeply to admit of any radical cure.
It is vain to think of carrying on war any longer by means of such a depreciating medium, and at the same time an efficient circulation of paper that cannot depreciate, is absolutely necessary to anticipate the revenues of America. A National Bank is not only the most certain, but will prove the most useful and economical mode of doing so. It is, therefore, of the utmost importance that this first essay, confined as it is in point of capital, should be brought into action with the greatest expedition. I am sensible that plans of public utility, however promising and pleasing they may be on their first appearance, soon grow languid, unless it be the particular business of some man, or set of men, to urge them forward; this may be said to be my duty in the present instance. But as I cannot be everywhere, I must apply for support to gentlemen of your character and zeal for the service of their country, requesting in the most earnest manner, that you will urge your friends and fellow citizens to became proprietors of this bank stock.
Every subscriber will find his own interest benefited in proportion to the capital he deposits, and I dare say few will find the other parts of their fortunes to yield them so large or so certain an income as the stock they may have in the bank; and at the same time they will have the satisfaction to be considered forever as the promoters of an institution that has been found beneficial to other countries, and inevitably must be so in the highest degree to this; an institution, that most probably will continue as long as the United States, and that will become as useful to commerce and agriculture in the days of peace, as it must be to government during the war.
The capital proposed is but small, when the extent and riches of the United States are considered; but when put in motion, the benefits flowing from it will be so perceptible, that all difficulty about increasing the capital or securing its credit, will vanish, and we shall only have to appeal to the interest of mankind, which, in most cases, will do more than their patriotism; but there have been, and will continue to be, many instances, where interest is sacrificed to patriotism; and in that belief, I ask you to devote some of your time to this infant plan, which, as it gathers strength, may in the end prove the means of saving the liberties, lives, and property of the virtuous part of America. My good opinion of you is an excuse for giving you this interruption.
I am, Sir, yours, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, June 21st, 1781.
Sir,
I find that the new payment of the moneys due to the subscribers to the Pennsylvania Bank materially injures and impedes the subscription to the National Bank. At the same time, I am informed, that Congress are unwilling to dispose of the bills lodged as a security, lest the Minister of the United States at Madrid should be incommoded by it. I have the honor to observe to your Excellency, that if these bills shall be submitted to my disposal, I think I can pay the debts, above mentioned, and cause the greater part of the money to be subscribed to the National Bank, thereby rescuing, in some measure, the public credit and forwarding the service, while, at the same time, I shall put the bills in such a train of negotiation, that at least a very considerable time must elapse before they can be presented, and probably they may not be presented at all.
I have the honor to be, &c.
ROBERT MORRIS.[33]
FOOTNOTES:
[33] July 4th. I met the Directors of the Pennsylvania Bank, and a number of the subscribers to that bank called, at my desire; and I proposed that they should transfer their subscriptions from the Pennsylvania to the National Bank, and deliver up to me the bills of exchange deposited by Congress with the Directors as security; and I undertook to place the amount of what remained due to them from Congress, in the hands of Messrs Clymer & Nixon, in payment of such transferred subscriptions to the National Bank; which all that were present agreed to. Diary.
* * * * *
TO B. FRANKLIN.
Philadelphia, July 13th, 1781.
Sir,
The unanimous appointment to the Superintendency of our Finances, with which Congress have honored me, and my conviction of the necessity that some one person should endeavor to introduce method and economy into the administration of affairs, have induced me, though with reluctance, to accept that office. Mr Jay will receive by this conveyance, and forward to you, copies of those resolutions and letters which may be necessary to explain my appointment and powers.
I wish I could as readily effect, as I most ardently desire, the accomplishment of all proper arrangements. Thoroughly convinced that no country is truly independent, until, with her own credit and resources, she is able to defend herself and correct her enemies, it shall be my constant endeavor to establish our credit and draw out our resources in such manner, that we may be little burdensome, and essentially useful to our friends.
I am sure I need not mention to you the importance of collecting a revenue with ease, and expending it with economy. As little need I detail the time, the authority, the ability, the favorable circumstances, that must combine for these purposes. But I think that I may assert, that the situation of a country just emerging from dependence and struggling for existence, is peculiarly unfavorable; and I may add, that this country, by relying too much on paper, is in a condition of peculiar disorder and debility. To rescue and restore her, is an object equal to my warmest wishes, though probably beyond the stretch of my abilities.
Success will greatly depend on the pecuniary aid we may obtain from abroad; because money is necessary to introduce economy, while, at the same time, economy is necessary to obtain money; besides that a greater plenty of solid circulating medium is required to support those operations, which must give stability to our credit, fruitfulness to our revenue, and activity to our operations. Among those things, which, after the experience and example of other ages and nations, I have been induced to adopt, is that of a national bank, the plan of which I enclose. I mean to render this a principal pillar of American credit, so as to obtain the money of individuals for the benefit of the Union, and thereby bind those individuals more strongly to the general cause by the ties of private interest. To the efficacy of this plan, as well as to the establishment of a Mint, which would also be of use, a considerable sum of money is necessary, and, indeed, it is indispensably so for many other purposes.
Be not alarmed, Sir, from what I have said, with the apprehension that I am about to direct solicitations to the Court of Versailles; which, after the repeated favors they have conferred, must be peculiarly disagreeable. On the contrary, as I am convinced that the moneys of France will all be usefully employed in the vigorous prosecution of the war, by her own fleets and armies, I lament every sum which is diverted from them. Our necessities have indeed called for her aid, and perhaps they may continue to do so. Those calls have hitherto been favorably attended to, and the pressure of our necessities has been generously alleviated; nor do I at all doubt that future exigencies will excite the same dispositions in our favor, and that those dispositions will be followed with correspondent effects. But I again repeat my wish, at once to render America independent of, and useful to her friends.
With these views, I have directed Mr Jay to ask a considerable sum from the Court of Madrid, to be advanced us at the Havana, and brought thence by us, if it cannot conveniently be landed here from Spanish men-of-war.[34] I say a considerable sum, because, as I have declared to him, I do not wish to labor under the weight of obligation without deriving from it any real benefit; and because I consider the advance of small sums rather as a temporary palliation than a radical remedy. Our disorders are such, that the former can be of no use, and it would be better to desist in a desultory defence, than to put on the delusive appearances of a vigor we do not feel; for this lulls the people into a dangerous security, and softens those hopes of the enemy, which give duration and extent to the war. It is the disorder of our finances, which have prevented us from a powerful co-operation with our allies, and which have enabled the enemy to linger on our coasts with the dregs of a force once formidable; and it is from this cause that they have been permitted to extend the theatre, and multiply the victims of their ambition.
America alone will not derive benefit from the advances which Spain may make to her. All the associates in the war will feel the consequential advantages. The expense of the American war now hangs a heavy weight about the neck of Britain, and enfeebles her on that element, which she called her own. An increase of that expense, or the loss of her posts here, must necessarily follow from additional efforts on our part, and either of these must be a consequential benefit to those who are opposed to her. France will derive a small immediate benefit from it, as she will thereby get more money here for her bills of exchange, than she can at present procure. But it is not so much from any advantage, which may be expected to that kingdom, or from any motives of interest, as from the generosity and magnanimity of the Prince, that we hope for support. I will not doubt a moment, that at your instance, his Majesty will make pressing representations in support of Mr Jay's application, and I hope that the authority of so great a Sovereign, and the arguments of his able Ministry, will shed auspicious influence on our negotiations at Madrid.
From the best returns I have been able to collect, and which are in some measure imperfect, from the confusions and disasters of the Southern States, I find that there are about seven millions two hundred thousand dollars due on certificates, which bear an interest of six per cent, payable in France, at the rate of five livres for every dollar. Many causes have conspired to depreciate the certificates, notwithstanding the interest is so well secured, and has been punctually paid. This depreciation is so great, that they are daily offered for sale at a very considerable discount, which is attended with two pernicious consequences; one, that a considerable expense is unnecessarily incurred, and the other, that the public credit is unnecessarily impaired. If I had the means, therefore, I would remove this evil by purchasing in the certificates; and to procure the means, I am to pray that you would state this matter fully to the Ministers of his Most Christian Majesty. The interest being guarantied by the Court of France, they now pay for this purpose, two millions one hundred and sixty thousand livres annually; a sum, which in less than ten years, would pay a debt of fifteen millions of livres at five per cent interest. With fifteen millions of livres, however, prudently managed, the whole of these certificates might be paid. I am sure it is unnecessary to dwell on the advantages, which would result from making such a loan for this purpose, and, I trust, that if this matter is stated to M. Necker, that enlightened Minister will co-operate in the plan, to the utmost of his ability. I again repeat, that I do not wish to lay any burdens on France; but this proposal is calculated to relieve us both; and, in any case, the expense to France will be the same. Should it be adopted, I must request the earliest notice, that my operations may commence; and, in any case, I hope that secrecy will be observed, for the most evident reasons.
I am sorry to inform you, that we have as yet no satisfactory news of the ship Lafayette; but, on the contrary, her long delay occasions the most alarming apprehensions. If, as but too probable, that ship is lost, you will more easily conceive than I can describe what will be the situation of our troops next winter.
I could wish, as soon as possible, to have a state of all the public accounts transmitted, to the end that moneys due to the United States may be paid, and measures taken to provide for such sums as they stand indebted in to others. Your Excellency will, I dare say, send them as soon as may be convenient; and I hope the public affairs will hereafter be conducted in such a manner as to give you much less of that unnecessary trouble, which you have hitherto experienced, and which could not but have harassed you exceedingly, and, perhaps, taken up time, which would otherwise have been devoted to more important objects.
I shall, probably, have frequent occasion to address you, and shall always be happy to hear from you; but the mischiefs, which arise from having letters intercepted, are great and alarming. I have, therefore, enclosed you a cypher, and in the duplicate of my letters, I shall enclose another. If both arrive, you will use one, and, in case of your absence, leave the other with such person as may supply your place. Let me know, however, which cypher you use.
The bearer of this letter, Major Franks, formerly an Aid-de-camp to General Arnold, and honorably acquitted of all connexion with him, after a full and impartial inquiry, will be able to give you our public news more particularly than I could relate them. He sails hence for Cadiz, and on his arrival will proceed to Madrid, where having delivered my letters to Mr Jay, he will take his orders for you. He will then wait your orders, and I hope, will soon after meet a safe opportunity of coming to America.
With the most perfect esteem and regard, I have the honor to be, &c.
ROBERT MORRIS.
FOOTNOTES:
[34] See a letter from Mr Morris, in John Jay's Correspondence, Vol. VII. p. 421.
* * * * *
TO B. FRANKLIN.
Philadelphia, July 14th, 1781.
Dear Sir,
If Major Franks had departed yesterday, as was expected, he would have left the enclosed cypher behind. It was supposed to have been with the plans of the intended bank, but was left out by accident. I wish you would, when leisure and opportunity will permit, converse with some of the eminent bankers in Paris on this plan, and ask whether a correspondence and connexion with the directors will be agreeable, and whether they would establish a credit for this bank, and to what amount, to be replaced again by remittances in other bills within such time as they may limit. Or, if they decline giving such credit, then the terms on which they will receive remittances and pay drafts of the bank.
An American bank must deal largely in bills of exchange. It will thereby rule the price of bills so as to keep it pretty steady, by passing most of the bills drawn on the continent through their channel, so as to leave a certain moderate profit. And the use of a credit in Europe will be, to have paid for their honor such bills as may be protested on account of the drawers; by which means the bank will secure the damages of twenty per cent, and pay only interest for advance and commission for negotiating. Occasion may also offer, when the bank, by drawing on Europe, shall get a high price for bills, and in a few months replace them much cheaper.
I do not wish to give you trouble on this occasion; but, if opportunities offer, you can mention the subject, and if any of the bankers will write me proposals, I will lay them before the directors. You will tell them, that although the very moderate sum of four hundred thousand dollars is proposed as the first capital, I intend to increase it gradually to ten times that sum. The only difficulty is to get it into action now that people have but little money and less confidence. I should be glad to see your name in the list of subscribers to an institution, that I believe will be permanent.
I ever am, Dear Sir, yours, &c.
ROBERT MORRIS.
* * * * *
TO THE GOVERNOR OF HAVANA.
Philadelphia, July 17th, 1781.
Sir,
The favorable attention shown to me by your Excellency in my private character, has excited those sentiments of esteem and respect, which now impel me to ask your assistance for my country.
The United States of North America, are at the present moment, possessed of more strength in men, arms, and ammunition, than when they first ventured to wage war with Great Britain. The means of subsistence are abundantly equal to our own wants, and will essentially contribute to the relief of our friends. A variety of causes, too numerous to be detailed, in the compass of a letter, have combined to destroy the credit of that paper money, which has enabled us hitherto to support the war. It has therefore become necessary to provide the means for paying the expenses to be incurred hereafter. Our people are not yet inured to taxation, neither has the revenue, which this country is capable of affording, been drawn fairly or fully into use. The derangement of our credit and finances, consequent upon the loss of faith in our paper, rendered it necessary for Congress to create a Superintendent of the Finances of the United States, in order, that he might regulate and settle the present debts, point out new funds, with the best means of collecting them, and superintend the public expenditures, so as to prevent as much as possible all excess or abuse. This arduous task is assigned to me, by a unanimous choice of that honorable body; and nothing could have induced me to undertake it, but my perfect conviction, that it is necessary that some person should undertake the work of reformation and economy. I have engaged in this business with the sole view of saving my country, and therefore think myself entitled to seek support from all who are really friends to her independency, and particularly from those nations, which have become parties in the war.
I have commenced my administration with a proposal to establish a National Bank; the plan of which I take the liberty to enclose. The subscriptions to it are going on, and I expect the very moderate sum therein proposed will soon be completed. When that is done, the directors will be chosen, incorporated, and proceed on their business. As the bank notes are intended to be made use of by government in anticipation of the revenues of this country, you will easily perceive, that the sum proposed is far short of the object, which it is intended to accomplish. My present pursuit, therefore, is to obtain such additional sums as will, when deposited in the bank, not only facilitate the anticipations above mentioned, but induce further subscriptions among our own countrymen. For when they see and feel the use of an institution, which they are yet unacquainted with, they will cheerfully and liberally support it.
It is to your Excellency that I apply for foreign aid. The vicinity of your situation, the frequent intercourse between your port and this, and your ability to comply with what I shall request, all point out the propriety of that application. Your friendly disposition towards these United States, and above all your strong attachment to the interests of your own country, will dispose you to yield me every assistance in your power. The United States have already received very considerable aid from the Court of Madrid. Much more, however is expected,[35] and in time to come these services will be repaid with honor, as they now are acknowledged with gratitude.
Our distresses induced Congress to order certain bills of exchange to be drawn on their Ministers at the Courts of Versailles and Madrid. The former have been all negotiated and paid off by the assistance of that Court. Many of the latter have also been negotiated, and those that have appeared for payment have been discharged. There is every reason to believe, that this would still happen; but we learn that the advance of money in Europe is rendered inconvenient during the war, by the impediments, which it occasions to the usual course of remittances from his Majesty's American territories. We have desisted, therefore, from the further sale of those bills, especially as we have reason to expect, that in consequence of measures adopted here, Mr Jay will obtain from your country a much larger sum than we had before asked for; and that the greater part, if not the whole of it, will be paid to us at your port. However this may be, my present view is to obtain from Havana, as expeditiously as possible, four hundred thousand Mexican dollars, in order to deposit them in the bank, and thereby doubling the capital, give its operations such force as will draw the attention of our own citizens, and induce them to afford it such assistance as will reduce our necessities, and place us in a situation to be less troublesome to our allies and friends in the common cause.
His Excellency the Chevalier de la Luzerne, Minister of France at this place, in consequence of orders from his Court, has authorised me to draw bills of exchange on Paris to a very considerable amount; and being sensible of the propriety of my proceedings, he will give you assurances, that they shall be punctually paid. I transmit a bill for five hundred thousand livres to Robert Smith, now appointed agent for these United States at your port, in order that he may negotiate it, and ship the money back to my address. Should it in any manner promote the interest of your Court he will certainly give your Excellency a preference in the purchase; and I am confident, that if this should not be convenient to you, you will countenance and promote his negotiations with private persons. I have also transmitted to Mr Smith certain bills, drawn some time past by order of Congress, on his Excellency John Jay, to the amount of one hundred and twenty thousand, three hundred and eightyone dollars. I am to request, and have strong hopes, that when Mr Smith shall have deposited these bills with you, your Excellency will advance that sum, so that he may immediately ship it to my address.
We are convinced that these bills, if sent forward, would have been paid by your Court; but as such a negotiation would bring no money into the treasury, I propose that you keep them in your possession until the pleasure of the Court shall be known. I will write very fully to Mr Jay on this subject, and obtain the earliest information. But lest the Court should not choose that these bills be finally accepted by you in discharge of the moneys advanced on them, I have empowered Mr Smith for your perfect security to enter into conditional stipulations to repay your Excellency that money by a delivery of flour to the amount, at such price as you and he may agree for; the payment to commence as soon after the pleasure of the Court shall be known as circumstances will admit.
I hope, Sir, you will find it agreeable to your inclinations, and perfectly consistent with the duties of your station to gratify my desires. They are very moderate considering the necessities of this country, and your ability to minister to its relief. Besides, your Excellency's good sense will readily perceive, that money granted to invigorate the operations of America will weaken and distress the common enemy much more than the same sums expended in Europe, because the enemy must prosecute the war here at more than four times the expense at which it must be carried on there.
Assuring myself of assistance from your Excellency I have ordered one of the continental frigates to proceed with these despatches for Havana. She will take with her some flour, which I have ordered returns for in dollars.
There are two most cogent reasons why this frigate should be despatched instantly from your port with the money. The first is, because we are much in want of it; and the second is, to prevent our enemies from the possibility of receiving any advice of her. We have so contrived things here, that everybody believes she is going to join the French fleet at Rhode Island, and to carry the flour for their use.
On the whole, I most earnestly entreat your Excellency, that if it be at all convenient and consistent with your duty, you will advance the whole of the four hundred thousand dollars in question to Mr Smith, so that the frigate may immediately return.
I am sensible that there are certain duties payable to his Majesty on the exportation of money from your port; but as this which I apply for, is to be expended in carrying on the war against his Majesty's enemies, I hope it may be dispensed with; if not, our Minister at Madrid will be directed to make application to the Court on that subject, so that the duty being charged to us in the first instance, may, if not remitted, be added to the general sum. The same observations will apply to the flour on board this frigate, which is also public property.
I hope it is not necessary to add anything more to induce a full compliance with my requests. But his Excellency the Chevalier de la Luzerne, Minister of France, and Don Francisco Rendon, your own Agent here, will also write you on the subject of this application.
I have the honor to remain, with sentiments of the highest esteem and respect, &c.[36]
ROBERT MORRIS.
FOOTNOTES:
[35] This anticipation was never realized, as the whole amount of the Spanish loan to the United States during the war, was no more than one hundred and fifty thousand dollars.
[36] For several letters from Mr Morris to Mr Jay, on the subject of loans in Spain, and the National Bank, see John Jay's Correspondence, Vol. VII. pp. 421-449.
* * * * *
TO ROBERT SMITH, AGENT FOR THE UNITED STATES IN CUBA.
Philadelphia, July 17th, 1781.
Sir,
Upon a proper representation of your character, situation, and attachments to your country and its cause, the Congress of the United States of America have thought proper to appoint you their Agent at the port, of Havana and Island of Cuba. I take much pleasure in transmitting your commission, which you will find enclosed herein; because my knowledge of you leads me to expert every exertion, which your situation and the circumstances attending it will admit of, in favor of your country.
You will not find any salary annexed to your appointment for this plain reason, that we cannot afford any. It is our present business to reduce salaries heretofore given, and not to create new ones. This appointment, however, may be attended with pecuniary advantages, because a public character may, and no doubt will, point you out to American merchants as the proper person to intrust with their commercial affairs. Continental prizes and other objects may occasionally turn up, which will leave a reasonable commission behind; and you will have the pleasure of serving Congress when necessary, and the citizens and commerce of your country, as often as opportunities for so doing may occur.
I shall now put your talents to the proof. You will find enclosed a letter I have written for his Excellency Governor Navarro (or should he be gone, for his successor) which will unfold to you very fully my intentions. You will find enclosed in it for him, as in this letter for you, the plan of a National Bank, which I have proposed to establish for many valuable purposes. You will observe that the sum proposed as a capital is far short of what it ought to be; but I was afraid of attempting too much at first, and must now endeavor to increase it by other means. If any of your acquaintances in the Havana have a mind to speculate in the American funds, I think they cannot place their money on a more secure or profitable establishment. This Bank will, I believe, exist for ages to come; and I am persuaded the annual dividends will not be less than from eight to ten per cent. They may also have the honor and pleasure of seeing their names enrolled among the first promoters of this useful institution, on which the salvation of our country in some measure depends. Should any of them incline to subscribe, they must send hither money at their own risk; consigning it to whomsoever they please, with power to act for them. I hope you will promote this business, and in order that you may be able to show the profits arising from it, I am to observe, that when once, by punctual payment, the notes of the bank have obtained full credit, the sum in specie, which will be deposited, will be such, that the bank will have the interest of a stock two or three times larger than that which it really possesses. Should M. Miralles, or any of the family be so inclined, I will put any part of their money into the bank, which they may think proper.
By captain James Nicholson, commanding the frigate Trumbull, I send a bill of lading and invoice of five hundred barrels of flour, which is all fresh and good, and a considerable part of it superfine. This flour I have caused to be shipped to your address, on account and risk of the United States of North America. Be pleased to receive it as quickly as may be from the ship, make the most advantageous sale of it, which you can, and remit the net proceeds in Mexican dollars, consigned to my order, for account and at the risk of the United States. I expect you will not charge more than five per cent for transacting the business, that is, two and a half per cent on the sales, and the same on the returns.
I have also enclosed a bill of exchange, drawn by myself on Messrs Le Couteulx & Co. bankers in Paris, to the amount of five hundred thousand livres tournois; this bill is at sixty days' sight, and you may depend it will be punctually paid, for I have the authority of the Court of Versailles to draw it, and every assurance I could wish. You will observe, by my letter to the Governor, that he is to have the refusal of this bill; you will therefore offer it to him in the first instance. When I consider the risk, which must attend sending money from Havana to Cadiz, and the remittances, as well private as public, which are to be made from one place to the other, I cannot but persuade myself, that unless the government and the people are alike blind to their interests, good bills must sell at a very considerable advance. Should the Governor decline taking the bill on Paris, as it is not probable that any one private person would purchase it, you may either remit it to the House of Le Couteulx & Co. in Paris, or to the House of Messrs. J. L. & L. Le Couteulx & Co. at Cadiz, as may be most convenient for your operations. You will then draw on the House to whom you remit the bill, and sell your bills to the same amount. Should you remit to the House in Cadiz, let me know it, that I may write and apprize them of it; but this I shall do provisionally, beforehand, so that they may be prepared for you.
I have also, as you will perceive, written to his Excellency on the subject of certain other bills of exchange, drawn on Mr Jay. You will endeavor to get the money for these, if possible; and in case it is required, you will enter the stipulations there mentioned, as to the shipment of flour. In this last case, get the flour fixed at as high a rate as possible, and let me have due notice, so that I may punctually cause to be fulfilled, whatever contracts you shall, on the part of the public, have entered into.
Should his Excellency be inclined to make those advances of money, which I have so earnestly pressed upon him, you will be able the sooner to despatch the frigate, which I hope will be done without delay. But as there is a risk in placing large sums on board of any one vessel, I am to observe, that if there should be any fast sailing vessels about to leave the Havana at the same time, and if in consideration of convoy, they will take the public money freight free, you will then prudently distribute it among them, and direct Captain Nicholson to give them signals, and to take them under his convoy. But I must caution you, that on no consideration is any private property to be covered as belonging to the public, either to save the duties or for any other purpose. You will, therefore, use all proper vigilance to prevent everything of this sort, should it be attempted. If there are not such vessels as Captain Nicholson and you shall approve of ready to sail, then ship the whole money in the frigate; for the risk of being waylaid by the enemy in consequence of any unnecessary delay, is greater than that of being otherwise intercepted.
It is unnecessary for me to mention to you, that we want money exceedingly. This very measure must convince you of it. Exert yourself therefore to get it, and you will merit much at the hands of your country. Should you not succeed in getting the whole sum I have asked for, get as much as you possibly can; and if the Governor should decline advancing any money on the bills drawn by order of Congress on Mr Jay, perhaps the Intendant may accept your contract for flour, and take these bills in security, or you may possibly borrow on their credit from individuals, to be repaid when I shall send you shipments of flour, which I will cause to be done so soon as I shall hear from you to this effect.
I have forbidden Captain Nicholson to cruise, but should fortune enable him to bring a good prize into Havana, the Continent has one half, and you must send that half to me in dollars. Whatever supplies the frigate is absolutely in need of, you must let her have; but I entreat, that the expenses may be as moderate as possible, and the best way to secure this is to despatch her quickly, for the moment they get clear of the salt water air, and feel, their land tacks on board, every soul of them will try to get his hands into your pockets; but take care.
I have desired Captain Nicholson to consult with and obey you whilst in Havana, and to push off whenever you say the word. I shall send you flour by private vessels, for the sake of getting money back, and write you further, as occasion may require.
I am, Dear Sir, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, July 19th, 1781.
Sir,
The foregoing are duplicates of my letters of the several dates there mentioned, by Major Franks, who has sailed for Cadiz. I now enclose to you duplicate copies of the letters and resolutions, referred to in mine of the thirteenth.
I do not write to Colonel Laurens, because I know not whether he is still in France, and because I am confident you will make to him all necessary communications. I pray you, if he is still with you, to present my compliments to him, and inform him of the reasons of my silence. Colonel Laurens's letter of the 9th of April last, from Versailles, has been received, and I am induced to hope, that the ten millions of livres mentioned in it, to be borrowed in Holland, will be, as he says he shall request, advanced from the treasury of France.
He mentions also a promise of the Marquis de Castries to make immediate arrangements for the safe transportation, of the pecuniary and other succors destined hither. It would be well that the money, or as much of it as possible, were in heavy half Johannes. Whether this letter may arrive in time I know not, but if it should, you will, I hope, be able to effect my views.
If the fifteen millions of livres I mentioned in my letter of the 13th, can be obtained, it will be best that they should be retained in France, provided the ten millions be sent to America; for in that case, the exchange may, I believe, be put upon such a footing as to answer every valuable purpose. Of consequence the risk will be saved to America, and France will not suffer by the exportation of so much coin. To this it may be added, that a loan will probably be more easily obtained, if the days of payment of the money by the subscribers to it be somewhat distant, which will answer very well for bills of exchange, though not quite so well for the exportation of money.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, July 21st, 1781.
Sir,
I have now to inform you, that the State of Pennsylvania had emitted five hundred thousand pounds in bills of credit, funded in such manner, that there could be no reasonable doubt of their redemption. But the public confidence had been so impaired, that these bills, soon after they came out, rapidly depreciated, notwithstanding the solidity of the funds by which they had been secured. The executive authority of Government, therefore, declined issuing more of them than were then in circulation (being one hundred and thirty thousand pounds), and called together the Legislature. The Assembly, at their late meeting, took measures for the collection of a very considerable tax, sufficient to absorb all the paper then in circulation, and which was receivable in taxes, as also a considerable balance in specie. It is therefore evident, that if the tax has time to operate before any more of the paper be issued, it must necessarily rise in value.
The Assembly did me the honor to commit this sum of five hundred thousand pounds to my care, for the purpose of paying to Congress a balance due on the resolutions of that honorable body, of the 18th of March, 1780, and of procuring the specific supplies which had been called for, the greater part of which had been unpaid. In this situation, it has been my study to effect both these objects, without making any new issues of the paper money. I cannot easily describe to you the good consequences which would follow from the appreciation of it. You will partly conceive them, when I inform you, that it is now at five for one, and that my expectation of specific supplies, or rather of furnishing rations to the amount of them, is very much founded upon the rise of its value. |
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