 |
Finding, however, that the balance of money due to the United States has been already drawn for by them, and that the holders of those drafts are very clamorous for payment, I must put money into the hands of the proper officer immediately. To accomplish this, I have fallen upon an expedient, which, while it answers that purpose, will be productive of another very considerable advantage. To explain which, I must previously inform you, that I have lately refused to draw bills on Messrs Le Couteulx & Co. for any other than specie; so that the paper will no longer answer the purpose of procuring a remittance to Europe. I shall, at the same time, borrow such of it as I can discover to have been hoarded, and by paying it to the holders of the drafts drawn by Congress, throw it again into circulation. I shall then draw bills on you for four hundred thousand livres, payable at six months' sight or more, for which I expect to get four hundred thousand paper dollars; a sum sufficient to satisfy the demand. I shall draw on Messrs Le Couteulx & Co. in your favor, to this amount, payable at sixty days' sight, which will probably leave four months for my operations; but at any rate, it will leave three months, which will be amply sufficient; and, therefore, in three months after I shall have drawn on you, I shall remit you my drafts on Messrs Le Couteulx & Co. If in that period this money can be appreciated, it will be a gain to the United States of the difference, which you will clearly see to be very considerable. By this means, also, I shall so economise the funds placed in my hands, that I can make them productive of the supplies from this State.
In mentioning these supplies, it occurs to me, also, to make mention of what has passed, relative to the contract you entered into for a part of them, to the amount of four hundred thousand dollars. Colonel Mennonville spoke to me on this subject, from the Count de Rochambeare, shortly after my appointment. Upon considering the very slender situation of our revenue, or rather the total want of it, and that the several States had omitted furnishing the specific supplies demanded of them, I told Colonel Mennonville, and told him truly, that I had but little prospect of complying with your promise. It is not easy to convey to your mind an idea of the pain I suffered from being obliged to make this declaration. I felt for you, for Congress, for America. There is no man in the world more deeply impressed than myself with the importance of fulfilling every compact made by a proper authority. All my reasonings, my feelings, and my experience, have concurred in producing a thorough conviction, that it is essential according to the principles of justice, from a regard to our national honor, and for the sake of our general interests. I shall, therefore, notwithstanding what has passed between Colonel Mennonville and myself, assiduously endeavor to perform your promise, and I am happy to add, that I am not without hopes of success.
With respect to the bills I intend to draw on you, I must apologize for the trouble they will give you, which I hope will be but little. It will be only necessary to accept them, and direct the holders what banker to apply to for payment. That banker will be enabled to make payment, by the bill I shall draw on Messrs Le Couteulx, & Co. in your favor. Perhaps it may be most convenient to send the bill holders to them, but this you will be the best judge of. It is unnecessary to state any reasons to you for accepting these bills, as I cannot suppose you will have the least hesitation on that subject. I take this opportunity, however, of pledging myself to you, that you shall suffer no inconvenience from honoring them with your acceptance, as I shall most certainly remit in time the bills sufficient to discharge all I draw on you. My reason for drawing them on you at all arises from this circumstance, that I am desirous of keeping the transaction entirely distinct, and that many inconveniences would follow from drawing bills on Messrs Le Couteulx, & Co. at six months' sight for paper, while I draw others at sixty days' sight for specie, especially after my refusal to draw on them except for specie, which refusal was, as you will perceive, a necessary part of my plan. Add to this, also, that the arrangements I had made with the Minister of his Most Christian Majesty would not permit it. When this transaction shall be finished, that is, when my remittances to you and my drafts on you are all paid, be pleased to send me copies of the bankers' accounts.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES.
Philadelphia, July 25th, 1781.
Sir,
I had the honor to write to you on the —— instant, enclosing a certified copy of the account of your State, as it stands in the treasury books of the United States. I now pray leave to recall your attention to it.
It gives me great pain to learn, that there is a pernicious idea prevalent among some of the States that their accounts are not to be adjusted with the continent. Such an idea cannot fail to spread listless languor over all our operations. To suppose this expensive war can be carried on without joint and strenuous efforts, is beneath the wisdom of those who are called to the high offices of legislation. Those who inculcate maxims, which tend to relax these efforts, most certainly injure the common cause, whatever may be the motives which inspire their conduct. If once an opinion is admitted, that those States who do the least and charge most will derive the greatest benefit, and endure the smallest evils; your Excellency must perceive that shameless inactivity must take the place of that noble emulation, which ought to pervade and animate the whole Union. It is my particular duty, while I remind my fellow citizens of the tasks, which it is incumbent on them to perform, to remove, if I can, every impediment which lies in the way, or which may have been raised by disaffection, self interest, or mistake. I take, therefore, this early opportunity to assure you, that all the accounts of the several States with the United States, shall be speedily liquidated if I can possibly effect it, and my efforts for that purpose shall be unceasing. I make this assurance in the most solemn manner, and I entreat that the consequences of a contrary assertion may be most seriously weighed and considered, before it is made or believed.
These accounts naturally divide themselves into two considerable branches, viz. those which are subsequent to the resolutions of Congress of the 18th of March, 1780.[37] The former must be adjusted as soon as proper officers can be found and appointed for the purpose, and proper principles established so as that they may be liquidated in an equitable manner. I say, Sir, in an equitable manner, for I am determined that justice shall be the rule of my conduct, as far as the measure of abilities, which the Almighty has been pleased to bestow, shall enable me to distinguish between right and wrong. I shall never permit a doubt, that the States will do what is right; neither will I ever believe that any one of them can expect to derive advantage from doing what is wrong. It is by being just to individuals, to each other, to the Union, to all; by generous grants of solid revenue, and by adopting energetic methods to collect that revenue; and not by complainings, vauntings, or recriminations, that these States must expect to establish their independence and rise into power, consequence and grandeur. I speak to your Excellency with freedom, because it is my duty so to speak, and because I am convinced that the language of plain sincerity is the only proper language to the first magistrate of a free community.
The accounts I have mentioned as subsequent to the resolutions of the 18th of March, 1780, admit of an immediate settlement. The several States have all the necessary materials. One side of this account consists of demands made by resolutions of Congress, long since forwarded; the other must consist of the compliances with those demands. This latter part I am not in a capacity to state, and for that reason I am to request the earliest information, which the nature of things will permit, of the moneys, supplies, transportation, &c. which have been paid, advanced, or furnished, by your State, in order that I may know what remains due. The sooner full information can be obtained, the sooner shall we know what to rely on, and how to do equal justice to those who have contributed, and those who have not, to those who have contributed at one period, and those who have contributed at another.
I enclose an account of the specific supplies demanded of your State, as extracted from the journals of Congress, but without any mention of what has been done in consequence of those resolutions. Because as I have already observed, your Excellency will be able to discover the balance much better than I can.
I am further to entreat, Sir, that I may be favored with copies of the several acts passed in your State since the 18th of March, 1780, for the collection of taxes and the furnishing supplies, or other aids to the United States; the manner in which such acts have been executed, the times which may have been necessary for them to operate, and the consequences of their operation. I must also pray to be informed of so much of the internal police of your State as relates to the laying, assessing, levying, and collecting taxes. I beg leave to assure your Excellency, that I am not prompted either by an idle curiosity, or by any wish to discover what prudence would dictate to conceal. It is necessary that I should be informed of these things, and I take the plain, open, candid method of acquiring information. To palliate or conceal any evils or disorders in our situation, can answer no good purpose; they must be known before they can be cured. We must also know what resources can be brought forth, that we may proportion our efforts to our means, and our demands to both. It is necessary, that we should be in condition to prosecute the war with ease, before we can expect to lay down our arms with security, before we can treat of peace honorably, and before we can conclude it with advantage. I feel myself fettered at every movement, and embarrassed in every operation from my ignorance of our actual state, and of what is reasonably to be asked or expected. Yet when I consider our real wealth and numbers, and when I compare them with those of other countries, I feel a thorough conviction, that we may do much more than we have yet done, and with more ease to ourselves than we have yet felt, provided we adopt the proper modes of revenue and expenditure.
Your Excellency's good sense will anticipate my observations on the necessity of being informed what moneys are in your treasury, and what sums you expect to have there, as also the times, by which they must probably be brought in. In addition to this, I must pray you to communicate the several appropriations.
A misfortune peculiar to America, requires that I entreat your Excellency to undertake one more task, which perhaps is far from being the least difficult. It is, Sir, that you will write me very fully as to the amount of the several paper currencies now circulating in your State, the probable increase or decrease of each, and the respective rates of depreciation.
Having now stated the several communications, which are most indispensable, let me entreat of your Excellency's goodness, that they may be made as speedily as possible, to the end, that I may be early prepared with those propositions, which from a view of all circumstances, may be most likely to extricate us from our present difficulties. I am also to entreat, that you will inform me when your Legislature is to meet. My reason for making this request is, that any proposals to be made to them, may arrive in season for their attentive deliberation.
I know that I give you much trouble, but I also know, that it will be pleasing to you, because the time and the labor will be expended in the service of your country. If, Sir, my feeble but honest efforts, should open to us the prospect of American glory; if we should be enabled to look forward to a period, when, supported by solid revenue and resources, this war should have no other duration or extent than the wisdom of Congress might allow, and when its object should be the honor and not the independence of our country; if with these fair views the States should be roused, excited, animated, in the pursuit, and unitedly determining to be in that happy situation, find themselves placed there by the very determination; if, Sir, these things should happen, and what is more, if they should happen soon; the reflection that your industry has principally contributed to effect them, would be the rich reward of your toils, and give to your best feelings their amplest gratification.
I have the honor to be, &c.
ROBERT MORRIS.
FOOTNOTES:
[37] It stands thus in the manuscript, but there seems to be an omission of what is meant by the first branch of the accounts.
* * * * *
B. FRANKLIN TO ROBERT MORRIS.
Passy, July 26, 1781.
Dear Sir,
I have just received your very friendly letter of the 6th of June past, announcing your appointment to the superintendence of our finances. This gave me great pleasure, as from your intelligence, integrity and abilities, there is reason to hope every advantage, that the public can possibly receive from such an office. You are wise in estimating beforehand, as the principal advantage you can expect, the consciousness of having done service to your country; for the business you have undertaken is of so complex a nature, and must engross so much of your time and attention, as necessarily to injure your private interests; and the public is often niggardly even of its thanks, while you are sure of being censured by malevolent critics and bug-writers, who will abuse you while you are serving them, and wound your character in nameless pamphlets; thereby resembling those little dirty insects, that attack us only in the dark, disturb our repose, molesting and wounding us, while our sweat and blood are contributing to their subsistence. Every assistance that my situation here, as long as it continues, may enable me to afford you, shall certainly be given; for, besides my affection for the glorious cause we are both engaged in, I value myself upon your friendship, and shall be happy if mine can be made of any use to you.
With great and sincere esteem, I am ever, Dear Sir, &c.
B. FRANKLIN.
* * * * *
B. FRANKLIN TO ROBERT MORRIS.
Passy, July 26th, 1781.
Dear Sir,
I have received the letter you honored me with, of the 8th of June past, acquainting me, that as Superintendent of Finance, you have named Messrs Couteulx, & Co. at Paris to receive from his Majesty's Ministers the money granted to Congress, that they may be enabled to honor your bills whenever they appear; and you intimate a desire to be informed of the responsibility of that house.
With regard to the six millions given by the King in aid of our operation's for the present campaign, before the arrival of Mr Laurens, 2,500,000 of it went in the same ship with him in cash; stores equivalent to 2,200,000 more of it were ordered by him, and are shipped; 1,500,000 were sent to Holland, to go in the ship commanded by Commodore Gillon. Add to this, that Captain Jackson, by his orders, purchased clothing and stores in Holland, to the value of about L50,000 sterling, for which he has drawn bills on me, which bills I accepted, and also agreed to pay those drawn on Messrs Laurens, Jay, and Adams; expecting aid from a projected loan of 10,000,000 of livres for our use in Holland. But this loan meeting with unforeseen difficulties, and its success uncertain, I have found myself obliged to stop the money in Holland, in order to be able to save the honor of the Congress drafts, and to comply with my engagements. By these means you have really at present no funds here to draw upon. I hope, however, that Messrs Couteulx, & Co. will be enabled to honor your drafts; but I trust in your prudence that you will draw no more till you have advice of funds provided. And as the laying out so much money in Holland instead of France is disapproved here, and the payment will, therefore, not be provided for, I must earnestly request your aid in remitting that sum to me before December next, when my acceptances will become due, otherwise I shall be ruined with the American credit in Europe.
With regard to the wealth and credit of the House of Le Couteulx, & Co. I have never heard it in question. But as Mr Ferdinand Grand, banker at Paris, and his broker, Sir George Grand, banker in Holland, have been our zealous and firm friends ever since our arrival in France, have aided us greatly by their personal interest and solicitations, and have often been six or seven hundred thousand livres in advance for us, and are houses of unquestionable solidity, I cannot but be concerned at any step for taking our business out of their hands, and wish your future bills may be drawn on Ferdinand Grand, for I think it concerns our public reputation, to preserve the character of gratitude, as well as that of honesty and justice. The commission hitherto charged to us by Mr Grand for receiving and paying our money is a half per cent, which, considering the trouble given by the vast number of small drafts for interest of the loans, appears to me a moderate consideration.
With great and sincere esteem, I have the honor to be, Dear Sir, &c.
B. FRANKLIN.
* * * * *
TO THE GOVERNORS OF MASSACHUSETTS, RHODE ISLAND, NEW YORK, DELAWARE, MARYLAND, AND NORTH CAROLINA.
Philadelphia, July 27th, 1781.
Sir,
I find upon examination, that the recommendation of Congress of the 3d of February last, for laying an impost of five per cent on goods imported, and a like impost of five per cent on prizes and prize goods, has not been complied with by your State.
The object which Congress had in view when they issued this recommendation was of the utmost importance, and every day gives it an additional weight and magnitude. Whether these States are able to support the annual expenses of the war by their annual revenue, and whether it would be prudent and wise to draw forth such revenue, are questions which may hereafter be agitated, considered, and answered. For the present it is sufficient to observe, that no methods have hitherto been adopted to produce a revenue by any means adequate to the current expenses. The public debt, therefore, is large and increasing. The faith of the United States is pledged to the public creditors. At every new loan it must be pledged anew, and an appeal is now made to the States individually, to support the public faith so solemnly pledged. If they do, it is possible that public credit may be restored, if not our enemies will draw from thence strong arguments in favor of what they have so often asserted, that we are unworthy of confidence, that our union is a rope of sand, that the people are weary of Congress, and that the respective States are determined to reject its authority. I fear that a mere verbal contradiction of these assertions will have but little effect. No words will induce men to risk their property upon the security of a nominal union. Your Excellency will be able at once to determine whether that union is more than nominal, in which any part shall refuse to be bound for the debts of the whole, or to contribute to the general defence. I must be permitted, however, to observe, that in matters of public credit long delay is equivalent to direct refusal.
Despotic governments are in war superior to others by the union of efforts, the secrecy of operations, and the rapidity with which every wheel may be moved by one sovereign will. This superiority, however, is amply compensated to free governments by the ardent attachment of their citizens, and the general confidence, which enables them to make exertions beyond their force, and expend in one year the revenues of many. A single view of our enemy, in the unequal contest she now carries on, will demonstrate these advantages more clearly than any arguments. The credit of Great Britain is not only her chief, but it is almost her only support. Inferior in everything else to the associates combined against her, she still makes head everywhere, and balances the opposition through the four quarters of the globe. While we feel the force of these last struggling of her ambition, we must admire the source from whence they flow. Admiring, we should endeavor to imitate, and in order to succeed, we need only to make the attempt. There was a time when public confidence was higher in America than in any other country. Hence the existence of that paper, which bore us through the conflict of five years' hostility. In the moment when no others dared oppose Great Britain in her career towards universal empire, we met her ambition with our fortitude, encountered her tyranny with our virtue, and opposed her credit with our own. We may perceive what our credit would have done, had it been supported by revenue, from what it has already effected without that support. And we have no reason to doubt but that it may be restored, when we reflect on the fate which paper currencies have formerly sustained. The appeal, as I have already had the honor to observe, is made by Congress to the several States. Some of them have answered by passing the laws required, others are silent. Whence this silence proceeds, I confess myself at a loss to determine. Some reasons, indeed, I have heard assigned by individuals in conversation, but I cannot conceive that they should have weighed with the Legislatures. Indeed I can hardly conceive how any reasons can have weighed against a matter of such importance as the keeping public faith inviolate.
I have heard it said, that commerce will not bear a five per cent duty. Those who make such assertions must be very little acquainted with the subject. The articles of commerce are either such as people want, or such as they do not want. If they be such as people want, they must be purchased at the price for which they can be had; and the duty being on all, gives to no seller any advantage over another. If, on the contrary, the article be such as people do not want, they must either increase their industry so as to afford the use of it with the duty, or else they must dispense with that use. In the former case, the commerce is just where it was, and in the latter case the people consume less of foreign superfluities, which certainty is a public benefit.[38]
I have also heard it said, that the duty should be carried to the account of the State where it is levied. What can be the object of those, who contend for this point, I know not. If there are doubts as to the justice of Congress, that body should not have been intrusted with the power of apportioning quotas on the several States. If, on the contrary, those who make this proposition, expect that the commercial States, by carrying the five per cent duty to their private account, can derive from their neighbors, the idea is as fallacious as it is unjust. The equity of Congress would lead them to relax so much in the quotas as would render the contribution of the States proportionate, or if that could not be done, the suffering State would be induced to carry on its commerce. Thus the end would be defeated, as indeed it ought; for surely the advantage derived by the mercantile States, as a mercantile profit, is sufficient without exacting a revenue in addition to it. Articles imported into the country are consumed in the country. If each pays a duty, that duty will be paid by all. The tax will fall equally on all, and therefore ought, in justice, to be carried to the general account.
I have also heard it suggested, that the public debts ought to be divided among the several States, and each be called to provide for its proportion. This measure would be sufficient to destroy the credit of any country. The creditors trust the Union, and there can be no right to alter the pledge which they have accepted for any other, even for a better one, without their free consent. But this is not all; there is in it a principle of disunion implied, which must be ruinous. Even at this late period, the States might singly be subjugated. Their strength is derived from their union. Everything, therefore, which injures that union, must impair the strength which is dependent upon it.
I shall not encroach longer upon your Excellency's patience by adducing farther arguments. Everything for and against the proposition, has doubtless been considered by the United States in Congress assembled, with that attention which is due to the importance of those objects on which they deliberate. I think, however, it may fairly be concluded, that those who wish to re-establish the credit and confirm the union of these States, will comply with this requisition. As I do not doubt that this is the sentiment of that State over which you preside, I shall believe that the Legislature at their next session, will pass the proper laws, and I shall at present only entreat that it may be done as speedily as possible.
I take the liberty, however, on this occasion, to make an observation, which applies indeed to many others. Those who have the public weal very seriously at heart, cannot but lament that the acts passed by many States on the requisitions of Congress, have been fettered with restrictions, as to their operation and effect, very inconsistent with that confidence which is due to the integrity of the United States in Congress assembled. Nothing can be more pernicious than the jealousy which dictates clauses restraining the operation of laws, until similar laws shall have been passed by the other States, or confining the revenue or supplies to partial or particular objects, not within the design of Congress, or short of their intentions; or any other clauses, which show a distrust of the States in the sovereign representative of America, or in each other. Such jealousies must prove highly detrimental, if not ruinous. And surely there can be no ground to entertain them, for the Congress is composed of Representatives freely chosen, and is of consequence under the control of those by whom they were appointed. Nothing, therefore, ought to prevent the free and generous communication of all necessary powers to Congress; and I am confident that such a communication will more effectually dishearten the enemy, encourage our friends, and promote the general and unanimous efforts of the whole community, than any other circumstance which could possibly happen. It is a truth, that the enemy does not even pretend to hope anything except from sowing discord among us, and it is but too true, that while the whigs of America are daily more firm and united in the cause of independence, there has been too little attention paid to give to that union of sentiment a proper political form and consistency. I am not, however, the less confident that in this, as in everything else, the enemy will, to their cost, discover that their hopes have been extremely fallacious.
With every sentiment of respect, &c.
ROBERT MORRIS.
FOOTNOTES:
[38] For a very interesting letter from the President of Congress to the Governor of Rhode Island, on the matter of duties to be levied by the States, reported by a Committee, of which Hamilton was Chairman, see the Public Journals of Congress, under the date of April 29th, 1783.
* * * * *
TO JOHN JAY, MINISTER IN SPAIN.
Philadelphia, July 29th, 1781.
Sir,
I enclose you copies of my letters, of the 17th, to the Governor of Havana, and Robert Smith. These letters will require no explanation to you. In addition, however, I am to inform you, that my letter to the Governor was shown to Don Francisco Rendon, whose full approbation of it is contained, in the enclosed copy of his note to me.
I am to request your early attention to this matter, and that you will support and justify the measures I have taken, and which may be taken in consequence of them by others.
With every sentiment of respect, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF THE COUNCIL OF PENNSYLVANIA.
Philadelphia, July 30th, 1781.
Sir,
I am favored with your Excellency's letter, of the 27th instant, for which I beg leave to make my acknowledgements.
I must again repeat my regret, that the means devised by the Legislature are unequal to the exigencies of the State. A majority of the Assembly seemed much disposed, at their late meeting, to adopt such measures as were calculated to promote the public service; and therefore it is to be lamented that they were not called, after passing the resolutions mentioned in your letter, to appropriate to the disposition of Council, such funds as might have been adequate to the demands they are liable to, if those which remained for that purpose were deemed insufficient. I still hope, however, that the collection of specie in taxes may enable the Council to effect more than present appearances promise; but it is evident, that the money allotted to my disposal is intended for the procuring specific supplies, and paying the balance of the four tenths of the new Continental emission, and that I cannot apply any part of it to other purposes, without crediting the State in account with the United States for such part, at a value equal to gold and silver. I must observe, that the resolutions taken by the Assembly, were consequent upon a report made to them, and communicated to me by order of the House, after it had been made. This report also was by a committee appointed on a message from your Excellency in Council to the Assembly, and it is therefore to be presumed, that it originated in that message. Be that as it may, this at least is certain, that the resolutions of the Assembly were proposed by them, and accepted by me.
With respect to the balances due from the State, I am to observe, that I have a perfect conviction of and reliance on the justice of Congress, who will I am persuaded, make every equitable and proper allowance; and your Excellency will perceive by the circular letters I have had the honor to transmit, my determination to have the accounts of every State with the United States settled on just principles, with all possible expedition.
I am obliged by your communication as to Mr Searle's mission,[39] and assure you, that I lament his disappointments, and still more so, that his negotiations have met with any opposition, which to me was quite unexpected. I freely confess, that I did not expect he would be successful; nevertheless, he had my good wishes, and had it been in my power, he should have experienced my readiness to assist every public measure. I wish his efforts in Holland may be productive, but I have very little expectation of it, being convinced that war with England will create such demand for money, and procure for the lenders such security as will prevent them from listening to American proposals. It was from a belief that your Excellency and the Council would give your support to measures which have the public good for their object, that I sought your confidence, asked your advice, and relied on your assistance. Entertaining still the same opinion, I shall freely and candidly give my sentiments and opinions on every proposition, which the Council may think proper to refer to me.
The arguments against drawing paper money from the treasury, and throwing it into circulation, had forcibly impressed my mind; and nothing but necessity will compel me to have recourse to it, being very desirous to pay every possible attention to your Excellency's request.
The determination to proceed with vigor and energy in the collection of taxes, coincides with my judgment, and of course meets with my earnest wishes for success. And your promise to strengthen my hands, and enable me to proceed with cheerfulness, in the great work I have undertaken, excites my warmest gratitude. The delays which attend the collection of taxes, are indeed great and alarming. To remedy them will be highly beneficial, and perhaps the modes suggested in your letter may be effectual. Every proposition of this sort will command my serious attention; and if it shall appear to me productive of the public good, your Excellency may rely that it shall meet with all the support in my power.
I am, respectfully, &c.
ROBERT MORRIS.
FOOTNOTES:
[39] Mission to Holland, for the purpose of borrowing money for the State of Pennsylvania.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, Dobbs's Ferry, } August 2d, 1781. }
Dear Sir,
The expectation of the pleasure of seeing you, has prevented me hitherto from making a communication of a most important and interesting nature. But circumstances will not admit of further delay, and I must trust it to paper. It seems reduced almost to a certainty, that the enemy will reinforce New York with part of their troops from Virginia. In that case, the attempt against the former must be laid aside, as it will not be in our power to draw together a force sufficient to justify the undertaking. The detachment, which the enemy will probably leave in Virginia, seems the next object which ought to engage our attention, and which will be a very practicable one, should we obtain a naval superiority, of which I am not without hopes, and be able to carry a body of men suddenly round by water. The principal difficulty which occurs, is in obtaining transports at the moment they may be wanted; for if they are taken up beforehand, the use for which they are designed cannot be concealed, and the enemy will make arrangements to defeat the plan.
What I would therefore wish you to inform yourself of, without making a direct inquiry, is what number of tons of shipping could be obtained in Philadelphia at any time between this and the 20th of this month, and whether there could also be obtained at the same time, a few deep waisted sloops and schooners, proper to carry horses. The number of double decked vessels which may be wanted, of two hundred tons and upwards, will not exceed thirty. I shall be glad of your answer as soon as possible, because, if it is favorable, I can direct certain preparations to be made in Philadelphia, and at other convenient places, without incurring any suspicions. There certainly can be no danger of not obtaining flour in Philadelphia, and as you seem to have doubts of procuring salt meat there, I shall direct all that which is to the eastward, to be collected at points from whence it may be shipped at the shortest notice.
You will also oblige me by giving me your opinion of the number of vessels which might be obtained at Baltimore, or other places in the Chesapeake, in the time before mentioned, or thereabouts.
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
TO M. DE LA LUZERNE.
Philadelphia, August 2d, 1781.
Sir,
Agreeably to the intimations I made to your Excellency some days ago, it was my intention to have gone to camp yesterday. But an act of Congress of the —— of July, rendered it necessary for me to hold a conference with a Committee of Congress and the Board of War. This was done; and it was determined, that a member of the Board of War should go with me to camp.
This circumstance has postponed my journey for a few days. But this is not all; the daily demands on me for money are considerable, and beyond the utmost extent of any funds I can command. The demands for past dues in compensation for past services, and the like, are rejected; but those for the prosecution of the campaign must be attended to. If, in my absence, and from that cause there be any stoppage, or considerable delay, the consequences will be equally injurious to my reputation, and to the public service.
I have before mentioned to you, that my dependence for immediate supplies of money, is on the produce of bills of exchange. I am sorry now to observe, that this dependence fails, and from a cause equally prejudicial to France and to the United States, considered in their collective capacity, though, perhaps, advantageous to individuals. Your Excellency will remember, that when I was called to the administration, the bills of your army had been selling for two thirds, and even so low as for one half of their value in Europe. What might have been the causes of this, it is not my business to inquire. The fact is incontestable. Your Excellency observed it, and endeavored to remedy the evil, by holding your own bills at five sixths. But the merchants, who had benefited by the former low rate, could not be brought at once to make so considerable an advance. They expected that the same causes, which had reduced bills to one half, must again bring them down; and, therefore, were disposed to wait the event.
I take the liberty here to observe, that the fluctuation of exchange will naturally strengthen that expectation, and nothing but steady, firm perseverance on the part of the administration, can, or indeed ought, to produce a ready sale on good terms. Bills of exchange are remitted to France in payment for European commodities. If the cost of this remittance is fixed, commerce may so far be established on true commercial principles; otherwise, it is a mere game of hazard. Sensible of this, the merchant will rather wait, with his money in his chest, the event of public necessity, than invest that money in bills, which may shortly after be bought on better terms by his more cautious neighbor. Hence it follows, that the public will really command less money than they otherwise might. Nor is that all. While the public can command the money of the merchants as fast as it comes into their hands, the servants of the public can spend that money to advantage, and the very expenditure will increase the circulation, so as to bring it again sooner into the hands of the merchant.
Your good sense, Sir, your experience, and the unremitted attention, which I have perceived you pay to every object which can relate to the service of your Sovereign, will render it necessary for me to prosecute any further these observations.
It was from a knowledge of this subject, which many years' constant attention to this business had imparted, that I saw the necessity of raising the value of bills by degrees, and, at the same time, of opposing the most inflexible firmness to every attempt at lowering their price. The bills I drew on Messrs Le Couteulx & Co., at sixty days' sight, were selling readily at four fifths, until the bills for your army were offered at thirty days' sight, and at a lower rate, This, Sir, has checked my sales; and this induces me to mention to you another matter, which will, I foresee, become of great importance.
The concurrence of many venders of bills cannot be more pernicious than the concurrence of many purchasers of supplies. The merchant cannot reason more effectually on public necessities, which he may conjecture, than the husbandman on such wants as he has ocular demonstration of. Melancholy experience has shown, that the contest between our purchasers has been extremely pernicious. What may have been the manner of conducting the business by the agents of the King, I do not positively know; but if I were to credit many tales which I have heard about it, I should believe there had been errors at least. But I know too well the weakness and impropriety of listening to slanderous reports; and I am very confident, that all possible care will be taken of the interests of his Majesty.
But, Sir, if the supplies for the French army and navy are kept in a distinct channel, I do not believe it will be possible to obtain them so cheap as they might otherwise be had. The ration consisting of one pound of bread, one pound of beef, or three quarters of a pound of pork, one gill of country made rum; and to every hundred rations one quart of salt, two quarts of vinegar; also to every seven hundred rations eight pounds of soap, and three pounds of candles, is now furnished to the United States in this city, at nine pence, with a half penny allowed over for issuing. It may perhaps cost more to furnish rations to the army, perhaps as high as ten pence or eleven pence, Pennsylvania currency.
You I suppose, Sir, can command the necessary accounts to determine what the King now pays for the subsistence of his troops; but as the French and American rations differ, I take the liberty for your further information to mention, that the parts of the ration are estimated as follows; for one pound of bread, two ninetieths of a dollar; for one pound of beef, or three quarters of a pound of pork, four and a quarter ninetieths; for one gill of rum, two ninetieths; for soap, candles, vinegar, and salt, one and a quarter ninetieths for each ration. You will also observe, Sir, that when exchange is at four fifths, one livre tournois is equal to fourteen pence and two fifths of a penny, Pennsylvania money.
I go into these details to enable your Excellency exactly to determine what is most for the interest of France, for I conceive it my duty to give you a confidential state of our affairs, whenever it can promote his Majesty's service, which I beg leave to assure you, I have every possible desire to assist; being convinced, that I can by no other means more fully comply with the wishes of the United States in Congress assembled.
I beg leave further to observe, that I have no personal wish to negotiate your bills, or to supply your fleets and armies. You must be very sensible that I have already before me a field of business sufficiently large. To extend it, will give me labor and pain, I can derive no advantage from it, nor will anything induce me to engage in it, except it be the prospect of rendering effectual service to the common cause. I make this declaration, not because I conceive it necessary to you, or from an ostentatious display of those motives, which actuate my conduct, but there may be persons to whom I am not so well known as I have the honor of being to your Excellency, and who from ignorance or interest might give to the present intentions the foulest interpretation.
I have been led much further, Sir, than the occasion strictly required, but perhaps my observations may demand your attention; they certainly appeared to me of importance, or I would not have given you the trouble of so long a letter.
I pray you to believe me, with respect, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE.
Philadelphia, August 4th, 1781.
Sir,
I was honored with your letter of the 3d yesterday evening; I am happy that the sentiments expressed in mine of the 2d, meet with your Excellency's approbation, and shall readily confide in your direction, to make such use of it as you think proper.
The two questions you ask do not admit of a precise answer. The rate of exchange ought by no means to be under four fifths; indeed I could wish that it were higher, and am not without hopes of raising it; but that must depend on circumstances, which I cannot command. The sum, which can be furnished to the French army monthly by the sale of bills, admits still less than the other of being precisely ascertained. Let me add, Sir, that the sum, which your army may want, must greatly depend upon the measures, which may be taken to supply them. Government ought to know its expenses precisely, if that were possible. Upon this principle, it will be of use, that your stipulations should be to pay a certain sum in France for every ration; consequently you will want no money here for that purpose.
I wish it were in my power to reply more pointedly, for I am well convinced of the importance of information on that subject. Whenever I am in a condition to know more, I shall readily communicate to you the extent of my inquiries. But while it is my determination to speak to you with that confidence, which your ingenuous conduct has merited, I am equally determined neither to compromise myself nor mislead you, by relying on unfounded conjecture.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE GOVERNOR OF MASSACHUSETTS.
Office of Finance, August 4th, 1781.
Sir,
On the 23d of June last, the United States in Congress assembled, directed me to take measures for the speedy launching and equipping the ship America, and directed the Board of Admiralty to assign to me the share of the United States, in the prizes taken by Captain Barry, to enable me to carry their orders into effect.
By a letter from the Navy Board in the eastern district, dated the 18th of July at Boston, it appears, that the greater part of this money is already expended, and that more is wanting to fit the Deane and Alliance for sea. Congress have referred this letter to me, and in consequence, as I am convinced that expense will constantly accrue while those vessels continue in port, I request of your Excellency to furnish to the Navy Board, such moneys as may be necessary to fit them out, with all possible expedition. I must further entreat to be favored with an account of the sums furnished, that they may be carried to the credit of your State on the late requisitions of Congress, and the Navy Board to be debited with them in the treasury books.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE GOVERNORS OF DELAWARE, MARYLAND, AND NEW JERSEY.
Philadelphia, August 4th, 1781.
Sir,
Being obliged to go to camp on public business, I shall set off this day. During my absence, it is highly probable that the service may require various applications to your Excellency. Should this be the case, they will be made to you by Mr Gouverneur Morris, who is my official assistant. I am, therefore, to pray the same attention to his letters as if they were written by me.
With great respect, &c.
ROBERT MORRIS.[40]
FOOTNOTES:
[40] August 4th. Having omitted in my minutes to make mention of the assistance I have received from Gouverneur Morris, I think it proper to declare, that he has most cheerfully afforded me every advice and assistance, which his genius and abilities enabled him to afford, from my first appointment to this time; and that I found him so capable and useful as to induce me to solicit his assistance in an official character, which having readily consented to, I made a verbal engagement with him, since confirmed by my letter of appointment, dated on the 6th of July last, being the date of the Acts of Congress, which fixes a salary for my assistant, and he is of course entitled to that salary from date. Diary.
* * * * *
TO GEORGE WASHINGTON.
Camp, August 13th, 1781.
Sir,
The orders of Congress, which we have the honor to communicate, directing us to confer with your Excellency on the subject of the proposed numbers and arrangements of the army for the next campaign, not having pointed out the reasons for inducing the measure, we have the honor to lay before you our ideas on the subject, so far as we are acquainted with the matter, from a long conference at which we were present in Philadelphia, held by a committee of Congress, the Superintendent of Finance, and the Board of War, pursuant to a resolution of Congress, with a copy of which your Excellency has been furnished.
After the full conversation with which we were honored on the 12th instant, it is unnecessary to enter at large into those reasons, or to urge the pressing necessity of economising our affairs so as to make our revenues in a great degree meet our expenses. Your Excellency must be equally sensible with us of the necessity, and we are perfectly convinced that you are disposed to assist in every measure tending to promote so desirable an object. You are also sensible of the impolicy of calling on the States for men or money, in numbers or quantities so extensive as to excite among even the zealous and considerate, ideas of the impracticability of carrying on the war on such terms. Demands of this nature, instead of animating to exertions, are only productive of hopeless languor. Your mortifying experience of the inadequate compliance of the States heretofore, with your former requisitions, will explain the motives inducing to the expediency of moderating those demands, so as to render them productive, and in case of failure to leave the delinquent State without excuse. Your Excellency has no doubt considered that the class of men who are willing to become soldiers is much diminished by the war, and therefore the difficulties of raising an army equal to former establishments has increased, and will continue to increase, and embarrass the States in their measures for filling up their quotas, should the mode of recruiting the army be continued in the present line. You will also have considered, that the enemy proportionably debilitated by war, is incapable of opposing to us the force we originally had to encounter; and, therefore, the necessity of such extensive levies as we formerly raised, seems to be in some measure superseded.
In what degree the forces of these States should be decreased, we do not pretend to determine, leaving this to your Excellency's better judgment. But from past experience it appears, that the States are incapable of bringing into the field an army equal to that called for by the last arrangement; or, if all the demands of Congress on the States become merely pecuniary it does not seem probable that they can or will furnish money for raising, equipping, and supporting such an army.
We wish we were capable, from any information we are possessed of, to assist your Excellency in the investigation of the subject with respect to the probable designs or force of the enemy the next campaign. This must in its nature depend upon contingencies at present even beyond conjecture. At this time, therefore, in our apprehension, the only solid grounds of procedure is to consider what force these States are capable of producing.
Having thus, in general, mentioned the ideas which have arisen on the subject, we beg to leave the matter to your consideration, and take the liberty of proposing the following queries, after further stating that it has been thought that it would be expedient, in case of a reform, to lessen the number of regiments so as to make fewer commissioned officers and privates in the regiments. It has been supposed that a considerable saving would arise from this measure, by not having so many officers in full pay, with their horses, servants, baggage, and other consequent expenses in the field. Or if they remain in quarters from want of commands, they are in a situation disagreeable to their own feelings, and uselessly expensive to the public. We presume that gentlemen qualified for staff officers, and that artificers and other persons employed by the staff department, should not come into the calculation, as the officers at the head of those departments should be enabled to carry on their business without taking men from the line, a practice introduced from necessity, very prejudicial to discipline, and productive of pernicious consequences by lessening the effective force of the army.
Quere 1. Is a reduction of the number of the officers and men, as fixed by the last arrangement, expedient or proper?
2. How can the reduction be brought about, consistently with the good of the service? and what arrangement should be made in consequence of this resolution?
The answer to the above queries will no doubt include the number of men necessary for the next campaign, and the organization of them so as to designate the numbers of regiments, and the numbers in those regiments, both of commissioned and non-commissioned officers and privates, as well regimentally as by companies. The expediency of having fewer regiments of artillery and horse, and of consolidating the independent corps, will also, we presume, come into your Excellency's consideration.
3. What periods of enlistment, under present circumstances, are most proper to be adopted?
4. What regulation can be made to modify the practice of taking servants from the line by officers? and, on this head we beg leave to submit to your opinion a copy of a motion made in Congress on this subject.
5. What is to be done with officers by brevet, or those who have no particular commands? Can they not be placed in the regiments, or retire on half pay?
6. Would it be practicable, consistent with justice, and the good of the service, to call into actual service officers who have retired on half pay, by the former arrangement, to fill vacancies happening in the lines to which they respectively belong?
We have the honor to be, with much regard, &c.
ROBERT MORRIS, RICHARD PETERS.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, Dobbs's Ferry, } August 17th, 1781. }
Dear Sir,
I have in confidence imparted to you the alteration of our late plan, and made you acquainted with our intended operations. Besides the provision necessary at the head of the Elk to carry the troops down the bay, a very considerable quantity will be wanted in Virginia. I should suppose three hundred barrels of flour, as many of salt meat, and eight or ten hogsheads of rum, would be sufficient, at the Elk. For what will be consumed in Virginia, I imagine the order must be general, as we can neither ascertain the number of men which will be drawn together, or the time they will be employed.
I have written to the Count de Grasse, and have requested him to send up his light vessels of every kind to the Elk; but I would, nevertheless, wish to have all that may be at Baltimore, and the upper parts of the bay, secured. I shall therefore be obliged to you, to take measures at the proper time for that purpose. When that time will be, and when you shall give orders for the deposit at the Elk, I will hereafter inform you.
I shall direct the Quarter Master in due season to take up all the small craft in the Delaware, for the purpose of transporting the troops from Trenton to Christiana. Should he have occasion for advice or assistance from you on this occasion, I most request you to give him both.
I am confident it will be necessary to give the American troops, destined for Southern services, one month's pay in specie. This will amount to about —— dollars. If it will be possible for you to procure this sum, you will infinitely oblige me, and will much benefit the service. I shall also stand in need of a sum of specie for secret services; I suppose about five hundred guineas.
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
TO GEORGE WASHINGTON.
Office of Finance, August 22d, 1781.
Dear Sir,
I arrived in town the day before yesterday. Having taken the earliest opportunities to acquire information, I am sorry to inform you, that I find money matters in as bad a situation as possible. The exchange, by the concourse of venders, has run down to five shillings, and bills are offered at that rate in such great numbers, as to command all the money which is to be disposed of; so that reducing the price of bills still lower, would not command money, or answer any other good purpose.
The paper of this State, (Pennsylvania) is indeed appreciating; but to issue it, in the present moment, would destroy in embryo all my hopes from that quarter, cut off the only resource which I have the chance of commanding, and shake a confidence which has been reposed in me, and which the public interest calls upon me to cherish. I am sorry to observe, in consequence, that you must expect to meet with disappointments; but I assure you, that I will make every possible exertion to place you in the most eligible situation which my means will admit of.
I am, Sir, your most obedient, &c.
ROBERT MORRIS.
* * * * *
TO THE GOVERNORS OF NEW JERSEY AND DELAWARE.
Office of Finance, August 22d, 1781.
Sir,
I have, in a former letter, forwarded to your Excellency, an account of the specific supplies, which Congress had demanded from your State. It now becomes my duty again to press for a compliance with those demands. The exigencies of the service require immediate attention. We are on the eve of the most active operations; and should they be in anywise retarded by the want of necessary supplies, the most unhappy consequences may follow. Those who may be justly chargeable with neglect, will have to answer for it to their country, their allies, to the present generation, and to posterity. I hope, entreat, expect, the utmost possible efforts on the part of your State; and confide in your Excellency's prudence and vigor to render those efforts effectual.
I beg to know, most speedily, Sir, what supplies are collected, and at what places; as also the times and places at which the remainder is to be expected. I cannot express to you my solicitude on this occasion. My declaration to Congress, when I entered upon my office, will prevent the blame of ill accidents from lighting upon me, even if I were less attentive than I am; but it is impossible not to feel most deeply on occasions where the greatest objects may be impaired or destroyed, by indolence or neglect. I must, therefore, again reiterate my requests; and while I assure you, that nothing but the urgency of our affairs would render me thus importunate, I must also assure you, that while those affairs continue so urgent, I must continue to importune.
With all possible respect, &c.
ROBERT MORRIS.[41]
FOOTNOTES:
[41] August 21st. During my stay it camp, I had constant applications for money from almost everybody, as all had claims on the public. I took with me only one hundred and fifty guineas; and, finding so many demands, I thought it best to satisfy none, therefore brought the money back. I had conferences with the Quarter Master General, Paymaster General, Clothier General, Commissary General of Issues, Director General of the Hospitals, and with many other persons; but as these chiefly ran on the wants of themselves and others employed in their departments, I could only recommend the strictest economy in their expenditures, that I might thereby be the better warranted in making reasonable requisitions from the several States; always promising what I mean most punctually to perform, that is, to use my utmost endeavors to establish such revenues, as will enable the regular payment of their salaries and other just demands; but always concluded with assuring them, that this ultimately depended on the several Legislatures, which could only be induced to grant such revenues from a conviction, that their grants would be faithfully and frugally used. I made the same observations to the general officers and others, who spoke to me on money matters. Diary.
* * * * *
TO THE GOVERNOR OF VIRGINIA.
Office of Finance, August 23d, 1781.
Sir,
I am just returned from the head quarters of the Commander in Chief, where I have been for some days, in order to confer with him on the various military operations and arrangements, as far as they are connected with the duties of my department. Of consequence the defence of that valuable part of Virginia now invaded, became much a subject of consideration, and I am happy to inform you, that every measure will be pursued for its safety, which is consistent with the general objects of the war.
The force in Virginia ought to be very considerable, for reasons, which it is unnecessary to mention to you, who are so well acquainted with the country. But it is necessary to observe that the supplies to this force must be proportionably great. I have already done myself the honor to transmit to your Excellency an account of specific supplies, which have been required by Congress. Virginia stands debited for the whole, and it is not in my power, perhaps not in yours, to state as yet the credit side of that account. Let, however, the amount of the articles already furnished, be what it may, this at least is certain, that I have the command of no money from the several States, which will serve to maintain a force in Virginia. Much, therefore, must depend on the provisions and forage, which that State can call forth.
It is necessary for me to inform the General what reliance can be made on your resources, and it is also necessary, that this information should be just. Your Excellency must perceive, that his arrangements will greatly depend upon my communication; and therefore you will need no incitement to transmit to me as soon as possible the answers to my inquiries.
Let me then entreat, Sir, to know what quantity of flour, beef, and pork, both fresh and salted, and what quantity of hay and Indian corn, or other forage, can be delivered by the State of Virginia, at what places, and by what times. I shall also be happy to be informed, where the tobacco required of your State is deposited, that I may take proper measures for the disposal of it.
With all possible respect, &c.
ROBERT MORRIS.
* * * * *
TO MESSRS LE COUTEULX & CO.
Office of Finance, Philadelphia, } August 26th, 1781. }
Gentlemen,
My former letters advised you of the sundry bills I had drawn on you to the 2d day of this month, being numbered from one to one hundred and thirtyone inclusive, and amounting to five hundred and twentyone thousand, six hundred and thirtyfour livres, sixteen sous, and eight dernier tournois, as you will perceive by a copy of a list of said bills, herein enclosed. To which you will find added the list of sundry bills drawn on the 10th instant, numbered one hundred and thirtytwo to one hundred and fiftyeight inclusive, all at sixty days' sight, in favor of Mr Haym Solomans, amounting to two hundred and one thousand, three hundred and twentythree livres, eight sous tournois.
On the 8th of this month I had occasion to visit his Excellency General Washington at camp, and at my departure I left these bills signed. They were sold during my absence, and I pray that they may be duly honored. You will be enabled to pay these punctually, as his Excellency the Minister Plenipotentiary of France has engaged, that five hundred thousand livres tournois, should be placed with you for that purpose; of course you will have received one million of livres, subject to my drafts, and I shall continue to pass them on you as occasion may require.
On the 17th of July last, I drew one hill on you at sixty days, in favor of Robert Smith, or order, for five hundred thousand livres, but that bill is either sunk, or has fallen into the enemy's hands, therefore should it ever appear it must be refused as a fraud.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Chatham, August 27th, 1781.
Dear Sir,
Accounts brought by several vessels to Philadelphia, and to the eastward, leave little doubt but that the Count de Grasse must have already arrived in the Chesapeake, or that he must be very soon there. The Count de Rochambeau and myself have therefore determined, that no time ought to be lost in making preparations for our transportation from Trenton to Christiana, and from the head of the Elk down the Chesapeake. I have written by this opportunity to Colonel Miles, and have directed him immediately to engage all the proper kind of craft for the navigation of the Delaware, which can be found in Philadelphia, or in the creeks above and below it; and as your advice may be useful to him, more especially as far as respects procuring the vessels at a distance from Philadelphia, I have desired him to wait upon you for that purpose.
I shall also be obliged to you for using your influence with the gentlemen of Baltimore to permit any vessels, which may be in that port to come up to the Elk to assist us in transportation. I have little doubt, from the cheerfulness with which they furnished the Marquis de Lafayette last winter, that they will comply with your requisition on the present occasion. But lest there should be a necessity for the interference of the Executive of the State, I have written to Governor Lee, upon that and other matters. I enclose the letter under flying seal for your information, and you will be good enough to forward it by a chain of expresses, which is established. Any vessels, which may be procured in the Chesapeake, should rendezvous as soon as possible in Elk river.
You will be pleased to make the deposit of flour, rum, and salt meat, at the head of the Elk, which I requested in a former letter.
I am very fearful, that about fifteen hundred barrels of salt provisions, and thirty hogsheads of rum, which I directed to be sent from Connecticut and Rhode Island, under convoy of the Count de Barras, would not have been ready when the fleet sailed from Newport. Should that have been the case, the disappointment will be great. I would wish you to see whether a like quantity of those articles can be procured in Philadelphia, or in Maryland, if we should find that they have not gone round from the eastward.
I must entreat you if possible to procure one month's pay in specie for the detachment, which I have under my command. Part of the troops have not been paid anything for a long time past, and have upon several occasions shown marks of great discontent. The service they are going upon, is disagreeable to the northern regiments, but I make no doubt, that a douceur of a little hard money would put them in proper temper. If the whole sum cannot be obtained, a part of it will be better than none, as it may be distributed in proportion to the respective wants and claims of the men.
The American detachment will assemble in this neighborhood today. The French army tomorrow.
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
TO DONALDSON YEATES.
Office of Finance, August 28th, 1781.
Sir,
The express which carries this letter will bring you one from Colonel Miles, on the same subject. It is necessary, that vessels be procured as speedily us possible, to transport a body of from six to seven thousand men from the head of the Elk to Virginia, with their necessary apparatus. You will, therefore, collect them at the head of the Elk, on the 5th of September, and us soon after as may be, engage them by the day on the cheapest terms you can, to be paid in hard money, and obtain as long a credit as possible. There will be little or no risk of the vessels, and therefore you may insure them to the owners, if that will tend to obtain them either sooner or cheaper. The express has letters to William Smith and Matthew Ridley, of Baltimore, on this subject, and they will give you their advice and assistance, as will some other gentlemen, to whom I have written, should either be necessary. He has also letters to the Governor of Maryland, who will I am confident give every aid, which the Executive authority of the State can afford. You will therefore either apply to the Governor or not, as circumstances shall require.
Any engagements you enter into on this account, shall be fulfilled; but I must again request, that you will be as economical as the nature of the business will permit. I expect and rely on the exertion of your utmost industry and attention and am, Sir, very respectfully, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, August 28th, 1781.
Sir,
Herewith I send you triplicates of my letters of the 13th and 14th of July last, and duplicates of my letters of the 19th and 21st of July last. I have not yet executed the plan mentioned in mine of the 21st of July, of drawing bills on you, for reasons, which it is not necessary to enumerate at present.
Since my letter to you of the 8th of June last, I have found it necessary to apply to the Minister of his Most Christian Majesty in this place, to direct another sum of five hundred thousand livres to be deposited with Messrs Le Couteulx &. Co., and I am now drawing bills for that sum, wherefore I must pray your Excellency to take measures, that they be put in cash to answer my drafts. Although I have no doubt that this will be done on the Chevalier de la Luzerne's application, yet as his letters may miscarry, or other unavoidable misfortune happen, I take this additional precaution, because it is of the utmost importance to the United States, that these bills be duly honored.
The last advices from Europe inform us of M. Necker's resignation and removal, which occasions much speculation, as to the causes which produced this event. I should be glad to hear from you upon that subject.
We learn from Boston the arrival of the frigate Magicienne, with a large store ship laden with clothing, &c. for the United States; another store ship put back to Corunna, as is said, having been dismasted in a gale of wind. If this be so, it is a loss which will be more easily supplied than that of the Lafayette, which ship we are informed was taken and carried into England.
Colonel Laurens's embarkation on board a frigate for this place, with money, is also announced, and I hope she will speedily arrive. The Boston account of the 16th of August, mentions the arrival of the Magicienne in fifty days. If Colonel Laurens had then sailed, he must now have been out sixtytwo days, which is a very long period for a single frigate to be engaged in that voyage. If that frigate arrives safe, with five hundred thousand dollars, which is, as I am informed, on board of her, it will relieve me from many very great difficulties, which I have now to struggle with, and give a much better appearance to our affairs, as it will enable us to operate with far more vigor and activity.
It is now a very long time since we have had any tidings of Mr Adams. We have indeed been informed, though not from himself, that he had opened a loan for a million of florins; but we are much in the dark as to the success of it, as well as many other particulars relative to his situation, which would be very interesting.
September 7th, 1781. Since writing the above letter, Colonel Laurens has come to this city from Boston, at which place he arrived in the Resolve, with the two store ships under her convoy, after a passage uncommonly tedious. It is certainly unnecessary to mention how great pleasure we have received from this occurrence.
Another equally pleasing, is the arrival of the Count de Grasse in the Chesapeake Bay, on the 30th of August, with twentyeight sail of the line, viz. one of one hundred and ten guns, three of eightyfour guns, nineteen of seventyfour guns, four of sixtyfour guns, and one of fifty guns. The Count de Barras sailed from Rhode Island on the 24th, so that probably he has before this made a junction with the Count de Grasse, although he had not on the 31st of August. A detachment of about seven thousand men is on the way to Virginia, of which about two thousand and five hundred were at the head of the Elk. As many more must have arrived there this evening, and the remainder tomorrow. There are landed from the fleet, three thousand men, and we are told these will receive an addition of one thousand and five hundred marines, besides the army under the command of the Marquis de Lafayette, which was before in Virginia, and consists of about five thousand, including the militia. Lord Cornwallis was entrenched at York, in Virginia, with five thousand men. General Washington takes the command of the southern army in person. The fleet under the Count de Grasse took on its way a packet from Charleston to Great Britain, on board of which was Lord Rawdon. From this combination of circumstances, you will perceive, that we have reason to flatter ourselves with the expectation of pleasing occurrences.
With the greatest respect, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, August 28th, 1781.
Sir,
My circular letter to the Governors, of the 25th of July, a copy whereof was sent to Congress on the 6th of August, contains a solemn assurance, that all the accounts of the several States with the United States should be speedily liquidated, if I could possibly effect it, and that my efforts for that purpose should be unceasing. If after this declaration, I could possibly have forgotten it, the reference made to me, on the 23d instant, of two letters from the State of Massachusetts and a report on them of the 14th instant, would have called for an immediate attention.
I have thought much on this subject and feel very anxious about it. The settlement of those accounts is of the utmost importance, for, until it be completed, the States will persuade themselves into an opinion that their exertions are unequal. Each will believe in the superiority of its own efforts. Each claim the merit of having done more than others; and each continue desirous of relaxing to an equality of the supposed deficiencies of its neighbors. Hence it follows, that every day they become more and more negligent, a dangerous supineness pervades the continent, and recommendations of Congress, capable in the year 1775 of rousing all America to action, now lie neglected.
The settlement of former accounts being considered as a thing forgotten, men, naturally reasoning from them to those which are now present, conclude, that they also will drop into forgetfulness, and consider everything not furnished as so much saved. The Legislatures will not call forth the resources of their respective constituents. The public operations languish. The necessity of purchasing on credit enhances expense. The want of that credit compels to the use of force. That force offends. The country is daily more plunged in debt, and its revenues more deeply anticipated. A situation so dangerous calls for more accurate principles of administration, and these cannot too speedily be adopted. The settlement of accounts is the first step, but it is necessary not only that this settlement be speedy but that it be final; for, if it be not final, the disputes on that subject will have the same baleful influence with those now subsisting. Disunion among the States must follow in the event. Disgust must take place in the moment. The same opprobrious indolence will continue, and in the meantime it is to little purpose, that our country abounds in men and subsistence, if they cannot be called forth for her defence.
All the requisitions of Congress upon the several States contain a provision for future liquidation, when the quotas shall have been ascertained according to the article of confederation. The evil consequences which have followed from this are very evident, and the great advantages which would have resulted from rendering every appointment final and conclusive are equally evident. But those, who, on such ground, build a censure against Congress, ought to consider, that they could not act otherwise, before the confederation was completed.
The changes which have already happened in the affairs of the several States at the different periods of the war are so great, that any apportionment formerly made, however equitable then, would be inequitable now. To determine the quota, therefore, from the present situation, or from any particular moment of the past, must be equally improper. But the quotas must be determined at some period or other. If we suppose it already done, we shall clearly see how many inconveniences would have been avoided, and how many advantages gained. True it is, that let this final adjustment of the quota take place when it will, difficulties will arise by reason of those changes in the circumstances of the several States, which have been already mentioned. But those difficulties will be daily increased, and become at length insurmountable. If a final determination of past quotas were made now, it must be arbitrary in some degree; but if we carry our ideas forward to the end of several years, it must be still more arbitrary. To attempt a settlement of accounts subject to after revision, and after determination, is still worse; for it is liable to every objection, which lies against leaving them unsettled, to every difficulty, which could attend the final settlement, and has the additional evil, that by placing the several precise balances immediately before the eyes of Congress, they could take no step, which would not be charged with partiality. I will dwell no longer on this subject, for I trust the United States in Congress will agree with me in one leading position, that after taking a general view of the past, from the commencement of the war to the present moment, a certain rate or quota should be established for each State of the whole expense now incurred, excepting the public debt of the United States. I will presently assign the reasons for this exception; but that general position which I have advanced is the corner stone; without it nothing can be done, at least such is my conviction. Hence we have the irresistible conclusions,
1st. That while a demand of Congress is the mere request of a loan, instead of a complete appointment of —— it will not be attended to.
2dly. That while from the unsettled state of public accounts, the individual States are led to suppose that there is a balance in their favor, by superior exertions for which they neither have, nor are like to have any credit, they will relax their efforts.
3dly. That the final settlement of these accounts cannot take place until the quotas be finally adjusted.
4thly. That a settlement of accounts, which is not final will [blank in the manuscript.]
I feel, therefore, a demonstration, that the past circumstances and situations of the several States should be candidly reviewed, that the apportionment of all the past expenses should be made now, and that it should be final. Thus, if the whole expense be stated at one hundred, each State would be declared chargeable with a certain number of parts of that hundred, and thus a standard will be established by which to determine the proportion, let the amount be what it may. I know it is not possible to do strict justice, but it is certain that less injustice will be done in this mode than any other, and that without adopting it nothing effectual can be done.
After the proportion is fixed the principles on which to admit the various charges will next come into consideration. I know it will be difficult to draw such a line as will apply to all cases, or which will be absolutely just even in those to which it does apply. Yet neither of these objections ought to prevent Congress from laying down these general rules, which shall on the whole appear to be most equitable. The various requisitions have been made payable at certain days. The value, therefore, of the demand ought to be estimated at the day of payment fixed by each, and the proper mode of doing this would be by the table of depreciation, formed the 29th day of July, 1780, in pursuance of the Act of Congress of the 28th day of June preceding. It is possible that this table is not perfect; but we must remember, that it has been fixed by the authority of the United States, and acted upon. It ought, therefore, to be adhered to; for there is always less of inconvenience and danger in pursuing an established rule, than in the frequent change of rules; because the former is at the worst only a partial, but the latter is a general evil. Assuming then this table as a standard, the account of the requisitions previous to the 18th of March, 1780, will stand thus; by the resolutions of the 22d of November, 1777, there is payable as follows.
dollars. ninetieths. January 1st, 1778, 1,250,000 dollars, equal to 857,222 20
April 1st, 1778, 1,250,000 dollars, equal to 621,423 55
July 1st, 1778, 1,250,000 412,864 52 4
October 1st, 1778, 1,250,000 268,472 2
By the resolutions of January 2d, 1779, and May 21st, 1779, there is payable by January 1st, 1780, 60,000,000 dollars, equal to 2,042,500
By the resolution of October 6th, 1779, payable by February 1st, 1780, 15,000,000, equal to 451,041 60
March 1st, 1780, 15,000,000, equal to 401,450 30 ————— —— 5,054,982 39 4
Thus the whole demand made on the States, from the beginning of the war to the 1st of March, 1780, is but little more than five millions of dollars. And yet this demand, moderate as it is, has not been complied with.
By the various resolutions of Congress on the subject of requisitions it is provided, that interest at six per cent shall be charged on the sums due, and allowed on the sums paid. The sums paid do, in no instances, amount to the value of the demand, but each State has an account against the Union for advances, by supplies furnished of various kinds, and by payments made to militia. As no taxes were laid by the States, the sums they expended were procured partly from the continental treasury and partly by the emission of State currency, which tended to depreciate the continental paper, and impede its circulation. A consideration of the mischiefs arising from this circumstance will much diminish the merit, which is assumed from those advances. If the State paper had not been issued, the same services might have been performed by an equal sum of continental money, and the general torrent of depreciation would then have swept away those expenditures, which now exist as State charges. From hence it might in strictness be inferred, that the continent should not be charged for the amount of State paper advanced, and that amount be estimated at its value when redeemed by the State, especially as Congress have not only urged the States not to emit money, but even to call in what they had already emitted. But this inference would perhaps be rather too strong. No such idea has been formerly advanced by Congress, and therefore the States, not having had due notice, might conceive the determination at this late period to be inequitable.
On the whole, therefore, it may be proper to estimate the sums paid by them according to the rule already noticed, especially as the method of redeeming the old continental money formerly adopted, will, if pursued, work some degree of equality. For it will create a demand for the old money in those States, which, by the amount of their own emissions, have expelled it from themselves and forced it upon their neighbors. There must, however, be a distinction made in the advances of the several States; much of them has been for the pay and support of the militia, and much of that for the private defence of particular States, and of that again a part has frequently been unnecessary. To go, at this late period, into a close investigation of the subject, is impracticable, and perhaps dangerous. Neither would it answer any valuable purpose. Some general rule, therefore, must be adopted, and propriety seems to require, that credit should be given only for those expenditures on militia, which were previously authorised and required by express resolutions of Congress. With respect to all other articles, there is also to be noted a distinction between those which were furnished by the several States previously to the 22d of November, 1777, when the first demand of money was made, and those made subsequently to that period. I would propose that the former, as also the militia expenses not expressly authorised as above mentioned, should be taken together into one account, and the specie value of the whole estimated. That the amount of both, throughout America, should be apportioned by the same standard with the other expenses. And that the several actual expenditures of each State should be settled and liquidated with its proportional part of the whole, and the several balances carried to their respective debits and credits in the general accounts. These balances should bear interest at six per cent to the 18th of March, 1780. Thus, suppose the whole of those expenses should amount to one million of dollars, and that the State A be held to pay nine, and the State B ten parts out of every hundred; the State A would be accountable for ninety thousand dollars, and the State B for one hundred thousand dollars. And if it should appear, that the former had paid one hundred thousand, and the latter only ninety thousand, the former would be credited, and the latter debited ten thousand dollars, with six per cent interest.
I would propose, that the advances made by the several States, subsequent to the 22d of November, and prior to the 18th of March, 1780, excepting those to militia not authorised, should be estimated as aforesaid, and carried to account regularly upon the advances of money made to each from the Continental treasury, and the apportionment of the several demands made by Congress, in like manner with the moneys paid to their order. And that interest, at six per cent, should be charged or credited upon the several balances, until the 18th of March, 1780.
I would further propose, that on this day these balances, and those before mentioned, should be liquidated together, and the final capitals be considered as principal sums, bearing interest at six per cent. Thus, supposing the State A, in one account, to be credited ten thousand dollars, amounting, with interest, to eleven thousand, and debited in the other account five thousand, amounting, with interest, to six; in that case, the final balance, on the 18th of March, would be a credit of five thousand dollars.
On the 18th of March, we come to a new and more enlightened era of public accounts. The appointment formerly mentioned as preliminary to a settlement, will determine the quota due by each State for the two hundred millions of old Continental money, valued at forty for one. These resolutions of the 18th of March, 1780, not having been fully complied with, there appears to be a propriety in the following plan.
1st. To charge the several States with their proportions of it at that rate.
2dly. To fix some future day for the full compliance with the resolution.
3dly. To receive old paper at the rate of forty for one, in discharge of those proportions, until that day; and,
4thly. To charge the balances then unpaid in specie, with a debit and credit of interest at six per cent in the manner before mentioned.
I am sensible, that many persons now condemn the resolutions of the 18th of March, and among these are found some of those who warmly advocated it previously to that period. It is not my business to enter into arguments on the subject. Be those resolutions wise or unwise, they are acts of the sovereign authority, which have been obeyed by some, if not by all, and therefore those who have obeyed ought not to suffer by their obedience. They are acts for the redemption of bills issued by that sovereign, and they have formed the standard of public opinion with respect to those bills. If, therefore, for argument's sake, it were admitted, that the measure was impolitic and unjust, yet, now that it has taken place, there would certainly be both injustice and bad policy in altering it. The respective States have either obeyed it in the whole, or in part, or have totally neglected it. The first have a right to insist upon a compliance with it. The second must have so far accommodated themselves to it, as that interior mischiefs would arise from changing the system. And the last, whatever may be their claim to superior wisdom, will at least acknowledge, that the precedent of disobedience once established, our Union must soon be at an end, and the authority of Congress reduced to a metaphysical idea. Besides, the claim of such States must ultimately rest on the foundation of their own neglect; and as this will always be in their own power, it will be sufficient to rear any argument for any purpose.
By the resolutions of the 18th of March, 1780, ten millions of dollars of new paper were to have been issued, whereof four millions were to be at the order of Congress. By the resolutions of the 26th of August, 1780, three millions more were demanded. By the resolutions of the 4th of November, 1780, besides the specific supplies, an additional demand was made of one million, six hundred and fortytwo thousand, nine hundred and eightyseven and two thirds dollars in money; and by the resolutions of the 16th of March, 1781, six millions more are required. These sums amount in the whole to fourteen millions, six hundred and fortytwo thousand, nine hundred and eightyseven dollars and two thirds. A very small part of this sum has yet been paid; but admitting that there may have been circulated by the United States two millions, six hundred and fortytwo thousand, nine hundred and eightyseven dollars and two thirds, twelve millions would still remain due. If from this we deduct the whole of the new emissions, it would leave a balance of two millions. I propose, therefore, the following plan.
1st. That no more of these new emissions be used on any pretence.
2dly. That as fast as the old Continental money is brought in, the several States be credited for the new emissions to have been issued as specie, agreeably to the several resolutions of Congress upon that subject; and,
3dly. That on all those requisitions last mentioned, the money of the new emissions of any particular State be received as specie.
It is true that these propositions are liable to exception, but they have the great advantage of being consistent with former resolutions of Congress, which should always be attended to as much as possible. I am sure that Congress must be convinced of this, for they are not to learn, that authority is weakened by the frequent change of measures and pursuits; that such changes injure the reputation of supreme power in public opinion, and that opinion is the source and support of the sovereign authority. It is further to be observed, that the motives for complying with the resolutions of the 18th of March, will, if the above plan is adopted, become very strong; for in that case, every forty dollars of old Continental, paid by a State, will produce to the credit side of its account three dollars in specie; because in the first place, the whole proportion of old Continental being changed at forty for one, and receivable until a certain day at the same rate, that payment will so far operate a discharge of one dollar; and in the second place, it will entitle the State to two dollars of the new emission, which not being issued, will also be carried to its credit upon its several requisitions.
It will be in the wisdom of the United States, in Congress assembled, to determine whether after the expiration of the day to be fixed for the above purpose, they will permit the possessors of the old Continental money to bring it in loan at the rate of forty for one. It is true, that this might operate against those States, who have not complied with the resolutions of the 18th of March, 1780, and who have not now the old Continental to comply with it; but it is entirely consistent with the former resolutions of Congress, and the States are themselves blamable for the neglect. Besides, those who now hold the Continental do it either from choice, because of their confidence in Congress, or from necessity, because it has been poured in upon them from those places where it was of inferior value, and this inferiority was owing to the neglect of those States in not passing the laws which Congress recommended. There is, therefore, a degree of justice and firmness in that measure, which will create confidence in the future acts of the United States.
Whatever principles may be established for settling these accounts, and however just they may be, many doubts will arise in the application of them. It must always be remembered, that the States are independent; and that while they are pressed to a compliance with their duty, they must have full evidence, that Congress act fairly. It might therefore be proper, that for the settlement of their accounts, Commissioners should be chosen as follows; one by the State, one by the United States, one by the other two, and the decision of the majority to be final.
Hitherto I have taken no notice of the specific supplies called for from the several States. Many of these have been furnished, and many remain to be provided. I would exclude them entirely from the other public accounts; but as the apportionment so often mentioned, will give a rule to go by, I shall continue to press for the supplies; or where they are not wanted, make such composition with the States in lieu of those which remain to be furnished, as the public service shall render most eligible.
I have observed, that the public debts ought to be excepted from the apportionment of past expenses. The reason is clear. Those debts, or at least a great part of them, may subsist until the relative wealth of the States has entirely changed. Those who are now most rich, may become poor, and those who are poor, may become rich. This is not all; these debts are hitherto unfunded. The creditors have indeed the general promise of government, and some of them have certificates as evidences of that promise; but until measures are taken to provide solid funds for the final payment, the public credit must languish. To an enlightened mind, it is needless to debate on the advantages resulting from national credit. Congress will doubtless pursue the steps necessary for its perfect establishment. And this cannot be otherwise accomplished, than by raising taxes in hard money from sources which must be productive and increasing. Those taxes must be so bound to the public creditors for the debts due to them, that the produce cannot be diverted. These taxes ought to be raised from the same articles, at the same rates, and in the same manner throughout the whole confederation; and consequently, a present apportionment of the public debts will be as unnecessary as it would be unjust.
I think it my duty, while I am upon this subject, to mention my opinion, that in addition to the five per cent called for on articles imported, and on prizes and prize goods, it would be proper to appropriate to the payment of the public debts, a land tax, a poll tax, and an excise on spirituous liquors. I readily grant that neither of these taxes would be strictly equal between the States, nor indeed can any other tax be so, but I am convinced, that all of them taken together, would be as nearly equal as the fluctuating nature of human affairs will permit. I am, however, to observe in addition, that the land tax should be laid at a certain rate per acre, because the superior certainty of such a tax will give it the preference of others, although it cannot perhaps be so great as might have been expected. Whatever inequalities may remain, must be adjusted among individuals, by the several States in raising their quotas, and although those quotas will be most considerable during the war, yet it must be remembered, that after the conclusion of it, such sums will be necessary for the establishing a marine and other national purposes, as will still enable the States to continue their interior regulations for equalizing the general taxes.
Among the public debts, there are a considerable number of certificates given by public officers to the citizens of the several States for articles occasionally taken for the public use. With respect to these certificates, it is unnecessary to mention, that they have anticipated the revenue, and brought us to the brink of destruction. But it is time to pay a particular attention to them. Many ways may be fallen upon for their liquidation, all of which are perhaps justly exceptionable.
1st. They may be consolidated with the rest of the public debt, and be made payable at a future period; but this could only be by forcing a loan from the people, many of whom are unable to make it, and of consequence it would be a hard measure, if not an unjust one. Perhaps it could not be executed, for laws repugnant to the general feelings of mankind are only a dead letter. 2dly. Another mode is by receiving them in taxes, but this is very dangerous for several reasons, among which, the two following are cogent. The public revenue will not bear such a heavy deduction at those certificates would create, and the collectors of taxes would be liable to be defrauded themselves, or the remedy for that would give them opportunities of defrauding the public, which considering the natural bent and disposition of many men, ought to be carefully provided against. A third mode would be, by turning over the holders of these certificates to their respective States, and giving credit for them on account of the specific supplies. This may in some degree become necessary in cases where the negligence of the States on the one hand, and the necessities of the army on the other, have compelled to seize by force what ought to have been collected by law. But in many cases it cannot be done, and it would be improper in many others where it is practicable. |
|
