Among the bad consequences, which attend the present mode of supplying our armies, or rather leaving them to supply themselves, it is one of no small magnitude, that the officers who are compelled to the melancholy duty of plundering their fellow citizens, endeavor by the sum of their certificates, to compensate for the manner of taking as well as for the value of the thing taken. Nor is that all; where there is a disposition for fraud, an ample opportunity is afforded to commit it. Whatever may be the cause, I am informed, that these certificates are for sums vastly beyond the value of the services and articles obtained for them. The respective States would naturally be led to give to these certificates their specified value, and it cannot be expected that they will scrutinise them so rigidly as they ought, if they are to be accepted in discharge of demands existing against the particular State. To all these modes there are also some further objections. Among which it is my duty to state the following. The accounts of the several staff officers still remain unsettled. The certificates given by them, if they are to be paid by the public, ought to be carried both to the debit and credit of their cash accounts, and the articles obtained carried to their debit in the account of expenditures. Of consequence the amount of these last debits must depend much upon the amount of the certificates, and therefore either the certificates given should be known, and the accounts settled with those charges, or the account should be settled, and no other certificates allowed but such as are charged in it.

A further mode of liquidating these certificates would be, by purchasing them from the holders; but it is needless to state any other objections to it than the want of money, which is felt through all our operations. There still remains this method.

1st. That at present those certificates should neither be receivable in taxes nor transferable.

2dly. That they should be taken up and examined in the course of settling the public accounts.

3dly. That they should be brought to the amount in specie, which the article procured, or service performed, was reasonably worth.

4thly. That where the sum due to any person on certificates is small, a bill for the amount should be given, payable at the distance of a year.

5thly. That where the sum is large it should be divided into five different parts, and bills given payable in one, two, three, four, and five years, calculating on each part an interest of six per cent, and adding it to the amount. As if for instance, the sum were one hundred pounds, then the bills would be for twentyone pounds four shillings, twentytwo pounds eight shillings, twentythree pounds twelve shillings, twentyfour pounds sixteen shillings, and twentyfive pounds.

6thly. That these bills should be drawn payable to the bearer, and in such form as not to be counterfeited without great difficulty.

7thly. That they should be receivable in continental taxes, within any of the States, as cash, at the times when they are respectively due, or if not so received, payable by the continental treasurer, or any receiver of the continental taxes, on demand, after collecting the taxes, in which they were respectively receivable.

In this way a credit would be obtained not only without injury, but probably with advantage to the individual. The anticipation of the public revenue would not be very great, and, as a list of these notes would be kept, the amount of every year's anticipation would be accurately known. Exceptions may probably be found even to this mode, but unfortunately for us, we have only an alternative of difficulties. All which human prudence can do in such cases is to choose the least.

I have the honor to be, Sir, &c.

ROBERT MORRIS.

* * * * *

TO THE GOVERNOR OF MARYLAND.

Office of Finance, Philadelphia, } August 28th, 1781. }

Sir,

Whilst I was at Head Quarters, near Dobbs's Ferry, the determination was taken by his Excellency the Commander in Chief, to send a very considerable force against the enemy's troops under Earl Cornwallis in Virginia; and immediately on my return hither, I did myself the honor to address your Excellency, respecting the specific supplies due from the State of Maryland to the United States, upon the requisitions of Congress, of the 25th of February and 4th of November, 1780, well knowing the whole balance due on these calls of Congress would, now become absolutely necessary to the intended operations.

I am very sensible that your government have upon all occasions executed demands of Congress with a decision and vigor, which does them honor, and on that account I should decline saying anything calculated to stimulate their present exertions, did I not know, that everything depends thereon. Virginia, North and South Carolina, have long subsisted large armies, and that expense of provisions must come to their credit. The New England States, New York, New Jersey, and Pennsylvania, have supported, and must continue to support, the main army. Pennsylvania will also contribute towards the support of the southern army, and her supplies will be directed both ways, as circumstances may require. Delaware and Maryland must chiefly be depended on. Virginia and North Carolina will, I hope, continue to do all they can. But your Excellency must be perfectly sensible, that I have not any funds wherewith to purchase supplies; no State in the Union has hitherto supplied me with money, except Pennsylvania. But as the money of that State is (in consequence of plans adopted for that purpose) very rapidly rising in value, it would be improper to call it into circulation at present, when it is at the rate of only two for one, though it has been as low as seven, because the public interest would thereby be injured, and indeed I might be charged with defeating the measures I myself had taken, in the very moment when they bid fairest for success.

The security of your State, the safety of individuals and their property are so immediately connected with the present operations, that I persuade myself your Excellency will receive every aid and support in your exertions, that you can wish, both from public bodies and individuals. My dependence therefore, on receiving the supplies from your State seems well founded.

I have the honor to transmit your Excellency herewith a letter from the Commander in Chief on the same subject, which will add weight to my entreaties. I have written to Donaldson Yeates, Quarter Master of the States of Maryland and Delaware, to procure immediately as many craft or vessels suitable for transporting the troops from the head of the Elk to Virginia, as will carry about seven thousand men, with the necessary provisions and apparatus. I have written to Mr Ridley, William Smith, and some others in Baltimore, to assist in procuring these vessels, and should any application to your Excellency be necessary on this subject, I persuade myself, that the authority of the government or weight of its influence will be brought in aid of the Quarter Master's endeavors to procure the shipping. I have also written to Mr Calhoun to know what part of the specific supplies he has ready, and what prospects for the remainder. He must bestir himself, as indeed must every person on whom the procuring of these articles depends.

While the demands for the campaign are constantly transmitted to me, and so much depends upon the measures I am constantly taking to economise the public funds and facilitate our military operations, your Excellency will perceive that full, early, and accurate intelligence upon the various objects of my Department is of the utmost importance. I must, therefore, reiterate my requests for it. To act from necessity and on the spur of occasion is not only the source of waste and extravagance, but frequently defeats plans otherwise the best concerted, while on the other hand, that timely forecast and early provision, which complete knowledge of circumstances can alone permit of, will save much public money, and go very far to insure victory to our arms.

I am, with great respect, &c.

ROBERT MORRIS.[42]

FOOTNOTES:

[42] August 30th. Went out to meet his Excellency General Washington, who arrived in this city about one o'clock, amidst the universal acclamations of the citizens, who displayed every mark of joy on the occasion. His Excellency alighted at the City Tavern, received the compliments of many gentlemen, who went out to escort him, and of others who came there to pay him their respects, and then adjourned to my house with his suit, Count de Rochambeau, the Chevalier Chastellux, General Knox, General Moultrie, and others, to dinner. The owners of several ships in the harbor ordered them out into the stream, and fired salutes, whilst we drank, The United States, His Most Christian Majesty, His Catholic Majesty, The United Provinces, The Allied Armies, Count de Grasse's speedy arrival, &c. &c. Diary.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, September 4th, 1781.

Sir,

I do myself the honor to enclose the plan of a National Bank, which I laid before the United States in Congress assembled on the 17th day of May last, and which was adopted by them on the 26th. I have now the pleasure to inform your Excellency, that an election for Directors will be held in this city on the 1st day of November next.

It is important that the execution of this plan be facilitated as much as possible, and particularly that of it which relates to the currency of the bank notes. The inhabitants of the United States already suffer from the want of a circulating medium. Of consequence the taxes must soon press heavily on the people. My feelings conspire with my duty in prompting me to alleviate those burdens. Therefore I pray the speedy attention of your Legislature to that resolution, by which the notes are to be receivable in payment of all taxes, duties, or debts due, or that may become due or payable to the United States.

I do not doubt either the credit or currency of bank notes, but I wish to render them equally useful to America in the individual as well as collective capacity, and to supply the necessities of the husbandman as well as the merchant. I shall not at present mention the other articles to be attended to; nor will I adduce any arguments in favor of my present proposition, as it is evidently calculated for the ease and benefit of the people you preside over. I hope, however, that your Legislature will not only pass the proper laws to make bank notes receivable in the manner mentioned in the resolution, but that it will be done soon.

With all possible respect, &c.

ROBERT MORRIS.[43]

FOOTNOTES:

[43] September 5th. The Commander in Chief having repeatedly urged, both by letter and in conversation, the necessity of advancing a month's pay to the detachment of troops marching to the southward, under the command of Major General Lincoln, and my funds and resources being at this time totally inadequate to make that advance, and at the same time answer the various demands that are indispensable, I made application to the Count de Rochambeau for a loan of twenty thousand hard dollars, for such time as his military chest could, without inconvenience, spare that sum, promising repayment at the time he should name.

I was desired to meet the Count at the Chevalier de la Luzerne's house, which I did on Wednesday the 5th instant, where I met the said Minister, Count de Rochambeau, and General Chastellux. They informed me of their strong desire to comply with my request, but that their treasury was at present not well filled, considering the daily drains upon it, and that although they had money arrived at Boston, it would require six or eight weeks to get it from thence, that although they expected money by the fleet of Count de Grasse, yet it was not then arrived, and of course that supply was less certain than the other; that the Intendant and the Treasurer were set out for the head of the Elk, and their consent was necessary however, they concluded this subject with requesting that I should ride down to Chester, where we should overtake those gentlemen, and if it were possible on consideration of all circumstances they would supply the money required.

General Washington was extremely desirous, that the troops should receive their month's pay, as great symptoms of discontent had appeared on their passing through this city without it. This affair being considered of great importance, I desired Mr Gouverneur Morris, my assistant, to accompany me, on account of his speaking fluently the French language. We set out at three o'clock for Chester, and on the road met an express from General Washington, who left us in the morning to join his troops at the head of the Elk, with the agreeable news of the safe arrival of Count de Grasse and his fleet in the Chesapeake. This news I received with infinite satisfaction on every account, and among the rest one reason was the facility it would give the French treasury in complying with my views, and this I found was actually the case, as Count de Rochambeau very readily agreed at Chester to supply at the head of the Elk twenty thousand hard dollars, to such person as I should appoint to receive them. I engaged to replace the same sum in their treasury by the 1st day of October next.

On Thursday forenoon I returned to this city about twelve o'clock having been impeded in my journey by meeting the last division of the French army, their artillery, and baggage on the road. On my return I immediately despatched Mr Philip Audibert, Deputy Paymaster General, to the head of the Elk, with orders to receive the money, pay the troops, &c. agreeably to instructions given him in writing. In the conferences with Count de Rochambeau and General Chastellux, they asked whether, if upon any occasion their treasury should stand in need of temporary aids, I thought they could procure loans in this city. I answered, that money is very scarce, that the people who have property generally keep it employed, and that no certain dependence can be placed on any given sums, but that I knew the people to be very generally disposed to assist our generous allies, and should such occasions offer, I was certain they would exert themselves; and as to my own part they might on every occasion command my utmost services, assistance, and exertions, both as a public officer, and as an individual. I mentioned to them again the affair of exchange, showing that they had reduced the price below what it had been raised to by my measures, and requested that in future when they expected to raise money by bills, they should in good time previously lodge them with the Minister, and that on his giving me timely notice, I would cause the most advantageous sale to be made of them, and deliver him the money without any other charge or deduction, than the expense of the brokerage.

I observed, that this mode of proceeding was now became essentially necessary, as there is no general market for bills of exchange to the southward, but that Philadelphia, in that respect, is as Boston to the eastern States. They answered, that they expected to procure their supplies with money, without occasion to draw bills, but if it happened otherwise they would pursue my advice. In regard to the articles of provisions, forage, wood, transportation, &c. necessary for their army, and which, when at camp, I had offered to procure for them on the same terms as for the continental army, by contract, I proposed to postpone that matter, as it might be best to continue their present method of supplies during the active scenes they are likely to be engaged in, as their Agents have given satisfaction, and are acquainted in the country where they are going, and that I could advertise for proposals to supply them the ensuing winter, and lay before them such offers or proposals as I should receive. This appeared very satisfactory, and here that subject rests for the present. Diary.

* * * * *

TO THE COUNT DE ROCHAMBEAU.

Office of Finance, September 6th, 1781.

Sir,

In consequence of the conversation I had the honor to hold with your Excellency yesterday, and your promise to supply the United States with the sum of twenty thousand dollars, for an immediate purpose, to be replaced on the 1st day of October next, I have directed Mr Philip Audibert, the bearer of this letter, to wait upon you. I shall be much obliged to your Excellency if you will be pleased to direct, that the above sum be paid to Mr Audibert, and that duplicate receipts be taken of him, one of which I pray may be transmitted to me. I will take care that the money be replaced at the time agreed upon. With every wish for the most brilliant success to the allied arms, and for your own personal glory, I am, very respectfully, &c.

ROBERT MORRIS.

* * * * *

TO GEORGE WASHINGTON.

Chester, September 6th, 1781.

Dear General,

Permit me most sincerely to congratulate you on the arrival of the French fleet, and to express my warmest wishes for the success of your future operations.

As soon as I arrive at Philadelphia, I shall give directions for the Deputy Paymaster to repair to the head of the Elk, and make the payment of a month's pay in specie to the detachment under the command of General Lincoln. I wish the States had enabled me to do more, but it is to be lamented, that the supineness of the several Legislatures still leaves the servants of the public to struggle with unmerited distresses.

It shall, however, be a part of my business to rouse them into exertion, and I hope soon to see the army better paid than heretofore, and I confide, that your Excellency will, with every other public officer, exert your influence to aid me in this necessary task.

With the greatest respect, &c.

ROBERT MORRIS.

* * * * *

GEORGE WASHINGTON TO ROBERT MORRIS.

Head of the Elk, September 6th, 1781.

Dear Sir,

Every day discovers to me the increasing necessity of some money for the troops. I hope by this time you are provided to give a month's pay. I find it of the last importance to hasten forward myself to join the Marquis de Lafayette as soon as possible. I may leave this in a few hours; I cannot do it, however, without entreating you in the warmest terms to send on a month's pay at least, with all the expedition possible. I wish it to come on the wings of speed.

I am, Dear Sir, &c.

GEORGE WASHINGTON.

* * * * *

GEORGE WASHINGTON TO ROBERT MORRIS.

Head of the Elk, September 7th, 1781.

Dear Sir,

I have received your two favors of yesterday. I find myself so pressed by circumstances, that it will be impossible for me to stay at this place till the payment of the money committed to Mr Audibert can be effected. I must leave the head of the Elk this afternoon or early tomorrow morning. I shall however leave instructions with General Lincoln to do all that is necessary on the occasion.

The sum of twenty thousand dollars will fall much short of the sum necessary.

The five hundred guineas on my own account I have received.

I have the honor to be, &c.

GEORGE WASHINGTON.

* * * * *

TO GEORGE WASHINGTON.

Office of Finance, September 10th, 1781.

Dear Sir,

The sole intent of this is to acknowledge the receipt of your two letters of the 7th instant; that which related to the month's pay you would see was answered by the steps previously taken, but I am a good deal disappointed and put to inconvenience by the money at the Elk falling short of the object, which obliges me to send money thither that was absolutely necessary to fulfil my engagements here. I must struggle through these difficulties, but the doing so requires that attention and time, which ought to be bestowed upon greater objects.

The letter respecting the criminal was too late, the poor fellow was gone. I am sorry for it, and remain your Excellency's most obedient, &c.

ROBERT MORRIS.[44]

FOOTNOTES:

[44] September 18th. Several members of Congress and others called on me last evening, desirous to know the reasons for my writing to Mr Jay a letter of the 15th of August last, which being intercepted, Rivington has published, and graced with his remarks, wherein I direct Mr Jay to protest certain bills of exchange drawn by authority of Congress. The explanation is easily given, as the ship on board which I had remitted these bills was taken. The moment I knew her fate, I judged it proper to stop payment of the bills, lest the enemy, with their usual cunning, might attempt to procure the money; but I am now of opinion, that the Captain sunk them when captured. Diary.

* * * * *

B. FRANKLIN TO ROBERT MORRIS.

Passy, September 12th, 1781.

Dear Sir,

I have received your letters of July 13th, 14th, 19th, and 21st, all at once, by way of L'Orient. The originals of those you mention to have sent by Major Franks are not yet come to hand, nor have I heard of his arrival in Spain.

Your letters of June 6th and 8th were remarkably lucky in getting to hand. I think I have received seven of the copies you had the precaution to send of them. I enclose copies of my answers.

I have now the pleasure to acquaint you, that I have obtained a promise of the sum I wanted to pay the bills I had accepted for the purchases made in Holland; so that your supplying me with remittances for that purpose, which I requested, is now unnecessary, and I shall finish the year with honor. But it is as much as I can do, with the aid of the sum I stopped in Holland; the drafts on Mr Jay and on Mr Adams much exceeding what I had been made to expect.

I had been informed, that the Congress had promised to draw no more bills on Europe, after the month of March last, till they should know they had funds here; but I learn from Mr Adams, that some bills have been lately presented to him, drawn June 22d, on Mr Laurens, who is in the tower, which makes the proceeding seem extraordinary. Mr Adams cannot pay these bills, and I cannot engage for them; for I see by the minutes of Congress you have sent me, that though they have stopped issuing bills drawn on the Ministers at Madrid, and the Hague, until they shall be assured that funds are provided for paying them, they have left open to be sold those drawn on their Minister at Versailles, funds or no funds; which, in the situation you will see I am in by the letters of the Count de Vergennes, terrifies me; for I have promised not to accept any drafts made on me by order of Congress, if such should be after the time above mentioned, unless I have funds in my hands, or in view, to pay them. After its being declared to me, that such bills could not be provided for, and my promise not to engage for them, it will be impossible to ask for the money, if I should accept them; and I believe those bills of Mr Ross must go back protested.

The projected loan in Holland has of late some appearances of success. I am indeed told it is agreed to by the States; but I do not yet think it so certain as to venture, or advise the venturing, to act in expectation of it. The instant it is assured, I will send you advice of it by every opportunity, and will, from time to time, send parts of it in cash by such ships of war as can conveniently take it.

I cannot write to you fully by this opportunity. I will not, however, delay acquainting you, that having the fullest confidence in your assurances of enabling me to pay them, I shall cheerfully accept your bills for four hundred thousand livres.

Captain Gillon has sailed from Holland, without taking under his convoy the two vessels that were freighted to carry the goods purchased by Captain Jackson, in Holland. There has been terrible management there; and from the confusion in the ship, before and when she sailed, it is a question if she ever arrives in America.

They are hard at work here, in providing the supplies to replace those lost in the Marquis de Lafayette.

With best wishes of success to you in your new employment, and assurances of every aid I can afford you, I am, Dear Sir, &c.

B. FRANKLIN.

* * * * *

TO M. DE LA LUZERNE.

Office of Finance, September 20th, 1781.

Sir,

His Excellency the Count de Rochambeau having generously made me a very considerable advance of money, I was thereby enabled to give the detachment of our army under General Lincoln, one month's pay, which was earnestly pressed upon me by the Commander in Chief. I promised M. de Rochambeau, that I would replace the sum borrowed, on the first of next month, wherever the army should then be.

The movement which lately took place to the southward, has been attended with a variety of expenses, which have been very heavy, and have absorbed all the money I could command, notwithstanding which many demands still remain unsatisfied, so that I cannot obtain the sums necessary for the service from any ordinary means.

As it is probable that the moneys which the Count de Grasse has brought, will prevent any immediate want by the fleets or armies of his Most Christian Majesty in the States of Maryland and Virginia, I am induced to believe, that no inconvenience would arise from delaying the payment, until the money in Boston shall be brought forward, which will be speedily, as a very active person has gone for it, who will lose no time in the business committed to him.

Should your Excellency be of this opinion, I shall be glad if you will signify it to me, and if that be in your power, that you will extend the time when payment is to be made. But if you think the money must be forwarded to Virginia immediately, you may depend that I will instantly endeavor to procure it, and although that cannot be done but with great difficulty and much loss, yet nothing shall deter me from complying with my engagements.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF THE COUNCIL OF PENNSYLVANIA.

Office of Finance, September 20th, 1781.

Sir,

I am honored with your Excellency's letter of this date, and most sincerely wish my situation was such as to justify a promise of aid, equal to the present necessities; I mean the necessities that will be created by the call of the militia at this time, but unluckily the late movements of the army have so entirely drained me of money, that I have been obliged to pledge my personal credit very deeply in a variety of instances, besides borrowing money from my friends, and advancing, to promote the public service, every shilling of my own. In this situation I was preparing an application to the honorable Council and Assembly for relief from my advances, from the State of Pennsylvania, and this will be the more necessary, as this alarm whilst it lasts will cut off all possibility of recruiting the treasury. Those who possess hard money will keep it, and those who have demands will become more eager for payment, therefore, all I can promise is the use of my credit, and an exertion of any influence I may have in favor of such measures as may be deemed necessary. At the same time I do not recede from my first opinion, that the enemy do not meditate any attack on this city.

I have the honor to be, &c.

ROBERT MORRIS.[45]

FOOTNOTES:

[45] September 21st. At one o'clock I waited on the President of the State of Pennsylvania, at his house in Market Street, and met there Mr Peters and Mr Cornell, of the Board of War, General St Clair, General Irvine, and General Irwin, of the militia. This conference lasted a considerable time, and in its consequences took up the rest of the day. I gave it as my opinion, that Sir Henry Clinton did not intend for this city, nevertheless, as the inhabitants are alarmed and uneasy, I agreed to the propriety of being prepared, although I lamented the expense such preparations would put us to. I advised the placing a garrison at Mud Island, and putting that place in a posture of defence, and mentioned the plan proposed to me by Mr Paine, of collecting immediately one quarter's rent from all the houses in Philadelphia, in order to have an immediate supply of money to defray the expenses, &c. Diary.

* * * * *

TO M. DE LA LUZERNE.

Office of Finance, September 25th, 1781.

Sir,

I received last night your Excellency's billet requesting to be informed of the amount of the bills drawn by me; as Superintendent of the Finances, on Messrs Le Couteulx & Co. of Paris, under the sanction of your engagements.

This communication I intended making to your Excellency in consequence of the conversation that passed between us a few days since; but it was only yesterday that I completed the delivery of such bills as had been sold previous to that conversation, which amounted to fiftyseven thousand seven hundred and eighty livres; and now on summing up the whole I find, that I have drawn one hundred and eightyone sets of bills, all at sixty days' sight, in favor of various persons to whom they have been sold, amounting to nine hundred and one thousand and eighteen livres, four sous, and eight deniers tournois; of these bills three hundred and seventysix thousand one hundred and twentytwo livres, ten sous, have been sold at five shillings and six pence for five livres, and five hundred and twenty four thousand eight hundred and ninetyfive livres, fourteen sous, eight deniers, at six shillings for five livres; by which it appears the discount does not exceed sixteen and five eighths per cent on the value in Europe; and were this money to be imported I suppose the freight and insurance might amount to nearly the value of that discount; if so, this mode of bringing it into use is not a bad one. Besides I must again observe, that by a union of management in the sale of bills drawn for the service of his Most Christian Majesty's fleets and armies, and those drawn for account of the United States, still better prices might be obtained, nay, I should not despair of trying to raise the price of exchange to par, by means of partial importations of money, and passing bills before the expenditure thereof, so that necessity might not have any influence in fixing the price.

What your Excellency has said to me respecting the advances made this year by his Majesty to the United States, has left on my mind those impressions you intended to make. You may depend, Sir; that it is my wish, and shall be a part of my study, to render these States as little troublesome to his Majesty as possible, and I shall probably have many opportunities to convince you, that it is a fixed point with me, that the United States, to become truly independent, must trust more to their own exertions, and lean but lightly on their allies. But, Sir, you must remember the situation, in which I found their affairs; you are not ignorant, that although I have cut off entirely many sources of expense, and curtailed others, yet that I have not been able to obtain either supplies of money or permanent revenue from the States, which however I attribute chiefly to the recess of the several Legislatures during the greatest part of the time that I have been in office, for I hope and expect that they will severally attend to the calls upon them, when they shall come to know their real situation.

But in the meanwhile, what am I to do if the means of supplying indispensable wants are cut off? The important operations now carrying on by General Washington depend so materially on the performance of my engagements, that the most fatal consequences may ensue from any breach of them. Your Excellency well remembers, that you thought yourself justifiable, in giving me assurances, that Messrs Le Couteulx & Co. should be supplied with one million five hundred thousand livres tournois, to answer my drafts to that extent; the produce whereof to be employed in the service of the present campaign. You will also recollect, that previous to my journey in August to camp, I judged it necessary to know, whether that sum was the whole on which I could place dependence, because, as the General's operations would in a great measure depend on the aids I could afford him, it was absolutely incumbent on me to be informed of their extent in every channel, through which I expected them to flow.

Your Excellency, convinced of the propriety of my observations, and of the actual necessities of our situation, ventured the assurance of another million of livres. Therefore, whilst I was at camp, during the consultations on the measures, I gave his Excellency reason to believe, that the amount of two millions five hundred thousand livres of bills on France, in conjunction with the resources provided by Congress, should be brought to the support of his operations. Counting upon this as certain, General Washington has taken his measures accordingly.

It has been my study to make the bills as productive as circumstances would permit, and to apply the money to the purposes for which it was granted, under the most scrupulous and assiduous attention to the principles of economy, and I may hazard the opinion, that no money has been more frugally or usefully expended by the United States during the war, without the least danger of being put in the wrong.

You are sensible that the money which arrived with Colonel Laurens, although landed on the Continent, cannot be brought into use until its arrival here; and although I have sent for it, yet it is but now on the road, and the General cannot stop his operations, nor can I refuse or defer compliance with my engagements until its arrival. The ruinous consequences that would follow, must appear too strong and clear to a gentleman of your reflection and information, to need any other demonstration than the bare mention of the facts. Consequently your Excellency will be well convinced of the absolute necessity of permitting me to draw to the extent agreed upon, and I hope his Majesty's Ministers will be too strongly impressed with apprehensions of the fatal consequences that would follow any neglect of my bills, to suffer the least inattention to them; and as the sum in total will not be of such magnitude as to occasion great inconvenience, I hope his Majesty will find cause to applaud your zeal and attention upon the occasion.

A committee of Congress have laid before me the communications your Excellency has lately made to Congress, which will claim my utmost attention, and your Excellency will do me the justice to believe that my most strenuous endeavors shall be to promote what is so strongly urged by his Majesty's Ministers, the most spirited exertions of these States to drive the enemy from our country. And that my affection for, and gratitude to France, are unalterably fixed, as is also my respect and esteem for your Excellency's person and character. Being, Sir, your most obedient, &c.

ROBERT MORRIS.

P. S. Upon a more exact calculation of the sale of bills, a few of which were sold a little higher than the rest, I find that nine hundred one thousand and eighteen livres, four sous, eight deniers, produced fiftytwo thousand two hundred and eleven pounds, ten shillings and ninepence, Pennsylvania currency; which is equal to one hundred twentyfive thousand three hundred and seven French crowns, and seven tenths of a crown, at eight shillings four-pence, Pennsylvania currency, for a crown; and the same number of livres reduced into crowns at six livres each crown, is one hundred fifty thousand one hundred sixty-nine and four sixths crowns. Consequently the discount is little more than sixteen and a half per cent.

* * * * *

TO THE SPEAKER OF THE ASSEMBLY OF PENNSYLVANIA.

Office of Finance, September 28th, 1781.

Sir,

As the Honorable House of Assembly are now sitting, and have before them the several letters which I had the honor to write during their recess to his Excellency the President in Council, I shall now endeavor to state, in a short manner, the situation of accounts depending between Pennsylvania and the United States, and propose such measures, as, I think, will lead to a speedy and satisfactory settlement of them.

In the treasury books of the United States, there is an account current open for transactions commencing with the revolution, and continuing to the 18th of March, 1780, wherein the State of Pennsylvania stands charged with advances, made at different periods during that time, to the amount of four millions four hundred and fortyfour thousand and seven hundred dollars, and has credit to the amount of one hundred and thirtysix thousand and ninetyeight dollars. Most of these advances were made whilst money was valuable; but I expect that the expenditures of the State on behalf of the United States kept pace with the advances made, and that, probably, when this account comes to be settled, there may be no great balance either way; but in this respect, I do not pretend to speak with certainty. However, I must here observe, that every State in the Union has an account of the same sort depending; wherefore, I propose that Congress should fix such general principles as will tend to do justice on the settlement of the whole, and appoint immediately Auditors to go through the whole; so that when the balance of each shall be justly ascertained, it may be paid or received, according as the same shall happen to be due, to or from the United States, and this will put every State on an equal footing so far.

You will find by the resolution of Congress of the 22d of November, 1777, Pennsylvania is called on to pay, in four quarterly payments, commencing on the 1st day of January, 1778, the sum of six hundred and twenty thousand dollars. By the resolutions of the 3d and 5th of January, 1779, Pennsylvania is called on to pay, during that year, the sum of one million nine hundred thousand dollars. By the resolution of the 21st of May, 1779, Pennsylvania was called on to pay, by the 1st of January, 1780, the sum of five millions seven hundred thousand dollars. By the resolutions of the 6th and 7th of October, 1779, a monthly tax of fifteen millions is called for, of which the proportion of Pennsylvania is two millions three hundred thousand dollars, making for the two months payable the 1st of February and the 1st of March four millions and six hundred thousand dollars. Thus the whole of these requisitions appears to have amounted to twelve millions eight hundred and twenty thousand dollars, of which there appears to have been paid on different drafts to the amount of six millions four hundred and fifty four thousand one hundred and fourteen dollars and two thirds, leaving a balance still due of six millions three hundred and sixtyfive thousand eight hundred and eightyfive dollars and one third, of the old emissions.

By the resolution of the 10th of March, 1780, the fifteen millions of monthly taxes is continued so as to include thirteen months, making for the proportion of Pennsylvania twenty nine millions nine hundred thousand dollars; of which sum ten millions six hundred thousand dollars have been paid into the Loan Office; of consequence, there remains due nineteen millions three hundred thousand dollars.

By the resolutions last mentioned, new money was to be issued, at the rate of one for every twenty of the old; of which new money Congress had reserved four tenths to their disposal, and the Treasury Board have already issued warrants to the amount thereof. The State paper being of equal value with the new emission, and the former not bearing interest, I have thought it most for the benefit of this State and of the United States, to draw from the treasurer a sum of the new State paper equal to the balance of those four tenths, and have accordingly done so.

By the resolution of the 26th of August, 1780, the States are called on to pay into the treasury by the last day of December then next ensuing, three millions of dollars, of which the quota of Pennsylvania is four hundred and sixty thousand dollars.

By the resolution of the 4th of November, 1780, Pennsylvania is called upon to pay two hundred and seventythree thousand eight hundred and thirtytwo dollars and two thirds, in quarterly payments, commencing the 1st day of May last; and by the resolution of the 16th of March, 1781, Pennsylvania is called upon to pay one million and fiftynine thousand eight hundred and sixtythree dollars, in quarterly payments, commencing the 1st day of June last. All these are payable in the new emission, or specie. Thus the whole of the requisitions will, on the 1st day of March next, amount to one million seven hundred and ninetythree thousand six hundred and ninetyfive dollars and two thirds. Of this sum there appears to have been paid seventeen thousand seven hundred and forty dollars; wherefore, there will still remain a balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds.

By a note from David Rittenhouse, I find that he has in his hands one hundred and thirtyeight thousand nine hundred dollars of the new emission, and fourteen millions one hundred and fortyfive thousand six hundred dollars of the old, in which latter sum, nevertheless, is included some State money received at seventyfive for one, the amount of which cannot be determined until it is sorted and counted; wherefore, the old emission may be estimated at about fourteen millions.

On this state of things, I take the liberty of proposing to the honorable House, that all the old money be immediately paid in, and the new taken out, which will be about seven hundred thousand dollars, and that, with what is now in the Treasurer's hands, will make eight hundred and thirtyeight thousand nine hundred dollars. I further propose, that this be paid to me, as Superintendent of Finance, on account of the above balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds, which will then be reduced to nine hundred and thirtyseven thousand and fiftyfive dollars and two thirds. I further propose, that the remaining sums of old continental, due from the State, be collected and paid as soon as possible, which, besides discharging that demand, will also enable the State to receive the further sum of two hundred and sixty thousand dollars of the new emission, and that, being paid in as before, will still further reduce the balance against the State to six hundred and seventytwo thousand and fiftyfive dollars and two thirds. There are at present in circulation of the new emission three hundred and ninetyone thousand one hundred dollars, which ought certainly to be brought in as soon as possible, and applied to the same purposes already specified; by which means the eventual balance payable in specie, would be two hundred and eighty thousand nine hundred and fiftyfive dollars and two thirds; to which must be added, thirteen thousand three hundred and thirtyfour dollars, required by Congress on the 8th day of January last to be paid in specie; being together one hundred and ten thousand three hundred and fiftyeight pounds, twelve shillings and sixpence. To explain all which more fully, I enclose the accounts, number one, two, and three, to which I pray leave to have reference.

The specific supplies will still remain to be provided for, in order that all the demands of Congress may be fully answered; but I hope that the specie tax now collecting will go a great way towards the accomplishment of this necessary object, and at any rate, as the state of paper, notwithstanding every effort, has not yet appreciated to par, I would propose that no more of it be issued from the treasury, except as equal to gold and silver, and then the collection of the present, taxes will at least prevent any depreciation, and in the meantime, the fund on which it was emitted, become more productive. The next Assembly will be able to take such additional measures as may be necessary, further to raise the value of it. This can only be done by holding it up from circulation, on the one hand, and on the other, by raising taxes, in which the public receive it as equivalent to the precious metals.

It is my determination, as Superintendent, to deposit all the money of the new emission, which shall be received from the several States, in the Continental Treasury, and not to issue one shilling of it, unless compelled by absolute necessity; which, I hope, will not be the case, if the States take measures to pay in the eventual balances.

Whether the House will find it consistent with the situation of their constituents to lay an additional tax this session, is for them to determine; but it is my duty to mention it, which I do from a conviction that it is necessary. They will perceive, that very great arrearages are due, and they must be sensible, that taxation alone can support the public credit, or enable government to carry on the war.

With the greatest respect, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE COUNT DE ROCHAMBEAU.

Office of Finance, October 1st, 1781.

Sir,

This being the day agreed upon for repayment of the moneys your Excellency was so kind as to advance me, I do myself the honor of assigning to you the reasons why it is not done. I had determined to make every effort and every sacrifice for the sake of complying with my engagements. But his Excellency, the Minister of France, perceiving that it would be very inconvenient to me, and being convinced that you were not in immediate want of it, was so kind as to assure me, that he would write to you on the subject, and that, in the meantime, I might delay the payment until the arrival of money from the eastward. I shall then take care to have your advance replaced.

Being convinced, Sir, that M. de la Luzerne has already made the proper representations to you upon the subject, I should not have troubled you with reading this letter, but that I feel a pleasure in seizing every opportunity to express my wishes for your success and glory, as well as to assure you, that I am, &c.

ROBERT MORRIS.

* * * * *

TO MAJOR GENERAL GREENE.

Office of Finance, October 3d, 1781.

Sir,

I have received your letter, dated the 18th of August last, at the high hills of Santee, and am now to thank you for it. Your observations on public affairs are, I fear, too just, but I hope that when our situation is thoroughly perceived by the people, they will adopt those effectual remedies, which every friend to his country ought to wish. That more power ought to be given to Congress is evident now to many, and will, probably, become soon very apparent to all. The disobedience of many States, and the partial obedience of others, discontents every one of them, and that will, in itself, be a reason for enabling the sovereign representative to exact a compliance with its requisitions; but, as you justly observe, all these things are in the womb of time, which can alone disclose the events we plague ourselves with guessing at.

From the latter part of your letter, I perceive that you greatly misunderstood me. When I requested you to draw on me, I meant to extend those drafts so far as might be necessary for secret service money, and the like small, but indispensable occasions. I well knew that you could not, by bills of exchange, supply the wants of your army, and, if I had thought it practicable, I should have been more explicit, for I could not then have paid the bills you would have drawn.

To give you an idea of my situation as to money, I think I need only inform you, that since I have been in office, I have only received the sum of seven thousand five hundred pounds, Pennsylvania money, from the Treasury of this State, and that was in part payment of advances made for them. This is all I have received from the funds of America. It is true, that Colonel Laurens has lately arrived, and brought with him a sum of money from France. And it is also true, that I have made use of a very limited credit given me on France, by drawing bills of exchange; but both of these resources, taken together, are vastly short of what is necessary, though they have contributed to the present operations.

I have lost no occasion of showing to the several States their situation, but hitherto without success; and, unless some unforeseen event turns up very speedily, it is impossible to say what may be the consequences. However, it is our business to hope all things, and that Providence, who has hitherto carried us through our difficulties, will, I trust, continue his bountiful protection.

Your circumstances have long been arduous, but you have hitherto risen so superior to them, that we should be almost as much surprised now, if you should be unsuccessful, as we formerly were at your successes. I wish I could contribute to render you more easy. As far as my abilities extend, I shall do it most cheerfully; but they unfortunately are very limited. Accept, I pray you, my good wishes, which are almost all I have to give, and believe me to be, &c.

ROBERT MORRIS.

* * * * *

TO THE COMMISSARY GENERAL OF PURCHASES.

Office of Finance, October 4th, 1781.

Sir,

I have received your letters, dated at Alexandria the 19th, and Williamsburgh the 23d of September last.

I am very glad that you push hard upon the States for supplies. It is, I find, necessary that you and I should understand each other on the subject. The General will, I dare say, take care to have as few unnecessary mouths as possible; but, after all, a certain quantity of provisions is indispensably necessary. Now this quantity must be furnished by the States of Virginia, Maryland, and Delaware. If you rely on my exertions, you will, probably, be disappointed. Should the operations against Cornwallis fail for want of supplies, the States must thank their own negligence. If they will not exert themselves on the present occasion, they never will. As to all that can be said about the failure of the one or of another kind of money, it is left to themselves. Let them tax in money which will not fail. It is their business to provide supplies and money too. If they neglect or omit this necessary duty, I again repeat, they must answer for the consequences.

I shall be glad at all times to hear from you very particularly, with all such information as you shall think necessary. But do not lean too hard upon me. Do not expect too much help from me. You will be deceived and disappointed if you do. Urge the States. Urge Delaware in particular. When I do furnish anything, it must be money. Let some of your people, therefore, apply when you intend applications. I cannot run about the city to purchase articles. That is the duty of an assistant Commissary; and my time is too much, and, I hope, too well employed, to permit it.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO.

Office of Finance, October 12th, 1781.

Gentlemen,

In consequence of a new arrangement taken with his Excellency, the Chevalier de la Luzerne, Minister Plenipotentiary of France, a further sum of money will be deposited with you, subject to my drafts on behalf of the United States of America, so that I shall continue those drafts, as occasion may require, until, in the whole, they amount to one million two hundred thousand livres tournois, where I shall stop, unless circumstances should happen to induce an extension of this operation, of which I will advise you; and whenever it is completed, I shall require an account current from you for the whole. I have not yet had the pleasure of receiving from you any letters directed to me in my official capacity, but I doubt not your punctual care and attention to discharge all my drafts as they fall due.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE LOAN OFFICERS OF THE STATES.

Office of Finance, October 13th, 1781.

Sir,

As the organization of the Treasury Department will soon be completed, it becomes my duty to inform you of that circumstance, and to request that you will prepare for a full settlement of your accounts. I must also request, that you will be pleased to make out and transmit to me an accurate list of all the certificates issued, with their dates, sums, and the persons to whom they were given. It will be necessary that an account of the public debt be prepared for the public inspection. This cannot be done until the proper materials be obtained from the several offices; wherefore, I make no doubt that you will exert yourself to comply with my request. As I am informed that the late Treasury Board gave orders for sending back the blank certificates, I suppose they are now on the way hither; but, if that should not be the case, I must require an immediate performance of the directions given by the Board, and I must insist that no more certificates be issued on any pretence whatever.

With great respect, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE GOVERNOR OF VIRGINIA.

Philadelphia, October 16th, 1781.

Sir,

I would willingly write you an official letter by this post, on the subject of supplies for the year 1782; but I must decline it, until I can obtain the proper estimates, which are now preparing. In the meantime, as I learn that your Legislature are now sitting, I write you this private letter on that subject.

My former public letters will fully have stated my ideas as to the present demands on the existing requisitions of Congress. I hope and expect, that those requisitions will be immediately complied with. It is my decided opinion, founded on the best observations I have been able to make, and the most accurate and extensive information I could possibly obtain, that paper emissions will no longer answer the purpose of carrying on this war, and experience must by this time have convinced every dispassionate observer, that specific supplies are at once burdensome to the people, and almost useless to the government.

It is unnecessary to draw the conclusion, which I am sure will strike your mind, that a revenue in hard money must be obtained; but I will observe to you, that the present moment is very favorable to that object in your State. While the war is in your country, the expenses of it will be so diffused as to possess its inhabitants of specie, and should it be happily removed to a distance, your commerce will bring in resources equal to your necessities.

I take the liberty to request that you will communicate these sentiments to my worthy friend Colonel Harrison, and I pray you to believe me very sincerely your friend, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, October 18th, 1781.

Sir,

The honorable committee, on the letter of the Board of War of the 11th instant, have favored me with a perusal of it. I think it my duty, on this occasion, to express my approbation of that attention the Board of War have paid the public service. That letter has opened a subject, which had pressed itself strongly on my mind, and which I had determined to mention to Congress, but was restrained by the hope, that a review of their own proceedings, and a sense of our difficulties would soon have rendered it unnecessary.

This matter being now before them, it would be unpardonable in me not to enforce those sentiments, which I myself am most deeply affected with. I am convinced, that a slight view of the situation, in which their finances now are, will give a strong impression of the necessity there is to guard against pecuniary solicitations from every quarter. If the revenue were equal to the demands upon it, nothing can be more simple and clear, than that all those demands should be speedily and punctually paid. Unfortunately this is far from being the case. I believe much further than many are aware of. When I say, that I cannot command more than one twentieth of the sum necessary for the current service of the year, I am within the strictest bounds of truth. It is with equal truth that I assure you, that I have not since my appointment received one shilling from any State in the Union, Pennsylvania excepted. And from Pennsylvania I have received paper money to the amount of the four tenths due to the United States, the appropriation whereof Congress must be thoroughly acquainted with, and seven thousand five hundred pounds in specie, which is applied to the payment of contracts within the State, and still leaves a balance against them for articles of their specific supplies which I have furnished.

The moneys drawn for by permission of the Minister Plenipotentiary of his Most Christian Majesty have been already applied to the public service, and the engagements I have entered into amount to a very considerable sum.

I enclose a few out of many articles, which immediately suggest themselves to me. Had I sought for the smaller instances they would have been numerous, and of course weighty. Instead of this, I have omitted many considerable articles, such for instance, as expense of stores for the hospitals, much of which is now due, and more to be immediately provided for. You will perceive, that I have not even mentioned the expense of transporting military stores, such as shot, shells, &c. to the camp before York, which the Board of War assure me will be very great, and indeed it must be so. Neither have I mentioned the expense of transporting money, clothing, medicines, arms, &c. from Boston to this place, and hence to the southward. Besides all this, I am told it will be necessary to procure ten thousand suits of clothes for the ensuing winter. If this be so, that article alone will amount to at least two hundred thousand dollars.

I might go much further, but I shall only observe, that exclusive of all these things the enclosed estimate amounts to above two hundred thousand dollars. Yet attention must be paid to the wants of three large armies. Congress know the extent of my means.

In this situation of things, it is proper to ask on every occasion, before private grants of money are made, whether the public service will not suffer by it. But this is not all, I am bound to observe, that the expectations of our troops now in the field may be much disappointed, and that they will conceive it unjust to dispose of any moneys, which might be spared, unless as an equal division among them. To press this point any further, would imply a want of that confidence, which I really have in the wisdom and discernment of Congress. They will see, that while the indispensable calls for money to forward general operations continue to be so loud as to draw from me all my private funds, it cannot be expected, that I shall pay warrants in favor of individuals. I am sure they will feel for me, when I mention the pain I suffer from being compelled to refuse money on their resolutions. A regard for their honor is the second motive of my conduct. I hope it is unnecessary to say, that a regard for the public interest is the first. I am far from wishing to insinuate a line of conduct to Congress; but I must place before their eyes those facts, which it is for their honor and their interest to be informed of. They will draw the proper conclusions.

With the most perfect respect, I am, &c.

ROBERT MORRIS.

ESTIMATE.

Dollars.

Due to the French Treasury for so much borrowed of them at Chester, delivered at the head of the Elk, 26,000

Due to the French army, a quantity of flour exchanged in the State of New York, to be replaced at the southward, which will require 10,000

Due for transports hired in the Delaware and Chesapeake, 15,000

For flour now purchasing to supply General Heath's army, 10,000

Horses purchased last summer for the Quarter Master General, and shortly to be paid for, 4,000

To recruit and mount Colonel Armand's Legion, 50,000

Saddles and accoutrements for General Greene's army, 14,000

Flour lately purchased in Virginia for General Washington's army, and now due, 5,000

Articles necessary for General Greene's army and the transportation of articles to him, and money for essential services, 5,000

Clothing purchased on a credit for Fort Pitt and Wyoming, 5,000

Estimate from the Navy Board at Boston, 40,000

Rum now sending on to General Washington's army, 5,000

My own money already advanced for the public service, 12,000 ———— $201,000

* * * * *

CIRCULAR TO THE GOVERNORS OF THE SEVERAL STATES.

Office of Finance, October 19th, 1781.

Sir,

I am now to address you on a subject of very great importance. I have to detail some facts, which will demand the most serious attention from every Legislature, and from every public officer in the United States. It is my determination to administer the affairs intrusted to my care according to plans, which are founded in sincerity and truth. Convinced of the folly of our enemy, in supposing that any considerable body of men in the United States are opposed to the Revolution, I am persuaded that, in order to remove the greater part of our difficulties, the first proper step is to state them fully to the people through their representatives. It shall, therefore, be a part of my study to prepare every transaction for the public eye, so that the meanest individual may be in due time informed of those affairs, in which, as a free citizen, he is interested. The various reports, which have been circulated, the publications in the several gazettes, and even letters from some who ought to have known better, all these things have conspired to infuse an opinion, that every power in Europe is favorable to us; that great sums of money are already advanced to us, and that still greater may be obtained. Whatever may be the fate of my administration, I will never be subjected to the reproach of falsehood or insincerity. I, therefore, take the earliest moment, in which I am permitted, to make those communications, which will give an insight into our real situation.

With respect to the situation and politics of Europe, it is neither my business to detail them, nor am I in a capacity to do it with certainty. But this, at least, is certain, that the disposition of the European powers, however friendly, has been too much relied upon. As a proof I need only observe, that not a single State has acknowledged our independence except France, although our alliance with that respectable monarchy has now subsisted nearly four years. Yet that monarchy is certainly the first in the world. It is in the closest connexion with Spain. Spain has long been engaged in the war, and still longer solicited to form a union upon the basis of the treaty with France. The armed neutrality, which gave such splendid hopes to many, has not yet produced the benefits expected. I will not proceed on the ground of conjecture, nor is it necessary for me to dwell longer on our political state with respect to foreign powers. But as there is little reason to expect, so I hope there is no American, who would wish an alliance with any empire on earth, until they shall be so sensible of our importance, as to treat on principles of equality.

The public opinion, as to the conduct of other Princes and States, has greatly injured us by relaxing our exertions. But the opinion as to pecuniary aid has been still more pernicious. People have flattered themselves with a visionary idea, that nothing more was necessary, than for Congress to send a Minister abroad, and that immediately he would obtain as much money as he chose to ask for. That, when he opened a loan, hundreds would run to see who should have the honor of subscribing to it, and the like. But surely a moment's reflection should have convinced every reasonable man, that, without the clear prospect of repayment, people will not part with their property. Have the efforts in this country been so successful as to ground any hopes from abroad? Or, is it to be supposed, that foreigners will interest themselves more in our prosperity or safety, than our citizens? Or, can it be believed, that credit will be given abroad before solid funds are provided at home? Or, could it be imagined, that the disorders necessarily incident to a great revolution, would be considered as a better source of trust and confidence, than the regularity and consistency of ancient establishments?

The Congress, conformably to the public wish, have appointed Ministers, requested grants, and opened loans. In Holland they have got nothing, and in Spain but very little. Loans were expected from individuals in Holland, but nothing of that sort has been, or probably will be, obtained. Loans were not expected in Spain, unless from the King, and from him they have been solicited with but little success.

The distressed situation of public affairs forced the Congress to draw bills of exchange on their Ministers. Some were drawn on France, some on Spain, and some on Holland. The first were honored and paid, the others were accepted, but recourse was finally had to the Court of France for the payment of those also. They were drawn at long sight. The sales were slow. They were remitted from time to time, and every opportunity afforded the Ministers of the United States to obtain the moneys for discharging them, but in vain. Of consequence, these bills have been regularly referred to the Court of France for payment; and this has done us injury, by anticipating the aid, which France has been disposed to afford us, and at the same time has justly alarmed and greatly embarrassed the French Ministry.

These things it appears necessary that you should know, and your Legislature will undoubtedly draw the proper inferences. They will see how much has been suffered by delaying to call forth the resources of our own country, and relying on the empty bubbles of hope, instead of the solid foundations of revenue. They will, I trust, clearly see, that all their hopes and expectations are narrowed down to what France may give or lend. But here, as in other cases, delusion takes place of reality. We flatter ourselves with ideal prospects, and are only convinced of our folly, by the fatal crisis of national distress. In order that you may clearly understand the succor afforded by France, I enclose an account extracted from a statement lately, furnished to Congress by the Minister Plenipotentiary of his Most Christian Majesty.

You will observe that his Majesty granted to the United States a subsidy for the current year of six millions of livres; and on a representation of our distresses, he was pleased to become security for a loan to be opened on our account in Holland. And when it appeared, that there was but little probability of obtaining any money there in season, he further agreed that the sum to be borrowed should be advanced for us, in the first instance, from the royal treasury. Thus the gift and the loan together amount to sixteen millions of livres, which would, if in this country, be equal only to two millions nine hundred and sixtytwo thousand nine hundred and sixtytwo dollars, although at the rate of estimating dollars in France, it is there equal to three millions and fortyseven thousand six hundred and nineteen dollars. But at the highest rate of exchange, which has hitherto taken place, this sum if drawn for, would have amounted to no more than two millions five hundred and sixty thousand dollars. I have been thus particular with respect to the amount of this sum, because the difference of currencies very often tends to deceive those to whom their real value is not a familiar subject of attention.

The enclosed account is in livres, and the two first articles contain the total of the grant and loan, amounting to sixteen millions of livres. The remainder contains the deductions to be made; the two first articles whereof, amounting to two millions three hundred thousand livres is for the payment of the bills drawn on France, Spain, and Holland, which I have already mentioned, the produce of the sales whereof had been applied to the public service long before my appointment. The next article, being two millions of livres, is appropriated to the payment of the interest bills; wherefore, no part of it can be applied to other purposes. The fourth article, I need say nothing of here, as it has long been in the mouths of everybody. The fifth and sixth articles are for those stores, which were laden on board of four transports by order of Colonel Laurens, three of which have safely arrived, and the other put back in distress. The seventh article, is in consequence of the loss of that valuable ship, the Marquis de Lafayette, which contained a great number of public stores, the replacing of which is necessary for the army and its operations, and which will amount to that sum.

The last article contains the amount of moneys deposited to answer my drafts, which have been made from time to time, and the produce appropriated to the service of the current year. On the whole, there remains a balance of three millions and sixteen thousand four hundred and ninetynine livres. This, with the sum brought by Colonel Laurens, may be considered as of the value of about one million of dollars, which is the utmost; for it would exceed that only by twentyone thousand five hundred and seventyfour dollars, if it were now in this country.

Thus then you see the extent of that pecuniary succor, which has filled the minds of all with such teeming expectation, is narrowed down to one million of dollars. But by the best accounts and estimates I have been able to procure, this war has hitherto cost about twenty millions annually. I do indeed expect that the future expenditures will be greatly curtailed; but it must be remembered that the most rigid economy has its bounds, and that it cannot exist without the punctual performance of those engagements, on which the first steps towards it must depend. As soon as the proper estimates for the next year can be made out, the demands founded upon them will be stated, and I shall shortly advertise for contracts, as the most effectual mode of husbanding our resources. I feel it to be my duty, however, to observe, that a note this day sent to Congress, of some of my principal engagements for money, amounts to upwards of two hundred thousand dollars. Yet the calls for it from every quarter are incessant.

I would gladly quit the subject of foreign supplies and expectations here, but it is necessary that the States should know all, and I should not answer the views of Congress, if I did not add, that the Court of France place the aid now afforded us among the number of those extraordinary efforts, which cannot be repeated. The declaration, that no more pecuniary assistance can be afforded to us, is as plain as language will admit of; and although the applications may, and probably will, be made by our Ministers to the Court of Versailles, yet surely no prudent man would form any reliance on such applications, in the face of such a pointed and express assurance to the contrary; and especially, when, to every request a short answer can be made, by asking what we have done for ourselves. Sir, I must speak to you most plainly. While we do nothing for ourselves, we cannot expect the assistance of others.

This is a very painful subject to dwell upon, but a consideration of great magnitude remains behind, and sooner or later it must come forward. Prudence, therefore, bids us examine it now, and provide for it in season. The neglect in funding the public debt, has introduced a practice of issuing Loan Office certificates, for the interest due on other Loan Office certificates. This I have absolutely forbidden, nor will I ever consent to it. Such accumulation of debt, while it distresses the public, and destroys its credit, by no means relieves the unfortunate individual, who is a public creditor; for if revenue is not provided, increasing the certificates would only lessen their value. This would be such a fraud as would stamp our national character with indelible marks of infamy, and render us the reproach and contempt of all mankind. It is high time to relieve ourselves from the ignominy we have already sustained, and to rescue and restore the national credit. This can only be done by solid revenue. Disdaining, therefore, those little timid artifices, which, while they postpone the moment of difficulty, only increase the danger and confirm the ruin, I prefer the open declaration to all, of what is to be expected, and whence it is to be drawn. To the public creditors, therefore, I say, that until the States provide revenues for liquidating the principal and interest of the public debt, they cannot be paid; and to the States, I say, that they are bound by every principle held sacred among men to make that provision.

I have gone through the task, which I proposed to myself in writing to your Excellency this letter, which I pray you to communicate to the Legislature of your State. I hope the Congress will soon be able to transmit their requisitions, and I shall endeavor that those be as moderate as possible. But I must pray that every man, whether in public or private life, will seriously consider the importance of complying with these requisitions. It is not by the brilliant successes of war, the splendor of conquest, or the shouts of victory, that a wise ministry are to be affected. The superiority of national resources is the sure ground on which to hope for success, and that superior resource steadily and perseveringly applied, must eventually attain its objects. It is for these reasons, that the enemy have hoped everything from the derangement of our finances; and on the other hand, as I am well informed, it is from the establishment of a national bank, and the forming of contracts to supply our armies, that they have the greatest apprehensions. By the bounty of the Almighty, we are placed in a situation where our future fate depends upon our present conduct. We may be happy or miserable, as we please. If we do our duty now, the war will soon be brought to a close; if not, it may last for many years, and what will then be its termination, it is not in human wisdom to foresee. Thoroughly convinced that the enemy must ask for peace, when we are in a condition vigorously to prosecute the war, and that we shall be in that condition, whenever our affairs are reduced to order, and our credit restored, and that for these purposes, nothing more is necessary than a proper system of taxation; I cannot avoid expressing my sentiments on the subject in all the warmth with which they flow from my heart. I hope and pray that the facts, which I have stated, may meet that calm attention, which is due to their importance, and that such measures may be taken as shall redound to the honor and interest of our country.

With all possible respect, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO MAJOR GENERAL GREENE.

Office of Finance, November 2d, 1781.

Sir,

Your favor of the 17th of September last has been delivered to me by your Aid, Captain Pierce. Your recommendations and his own character, give him a double title to every mark of attention.

I hope it is unnecessary to make assurances of my disposition to render your situation both easy and respectable. I am sure it is unnecessary to remark, how inadequate the provisions have been, which the States have hitherto made. At least, it is unnecessary to you. Much less need I display the detail of expenditures, which have been requisite for the accomplishment of that happy event, which has taken place in Virginia.

I have neither forgotten nor neglected your department. I have done the utmost to provide clothing, arms, accoutrements, medicines, hospital stores, &c.; and I flatter myself that you will, through the different departments, receive both benefit and relief from my exertions. I have detained Captain Pierce a day, in order to make up with infinite difficulty, one thousand pounds Pennsylvania currency in gold, which he is the bearer of, and which will, I hope, be agreeable and useful. You have done so much with so little, that my wishes to increase your activity have every possible stimulus. I hope soon to hear that you have gathered fresh laurels; and that you may wear them as long and as happily as they have been speedily and worthily acquired, is the earnest wish of yours, &c.

ROBERT MORRIS.

* * * * *

END OF THE ELEVENTH VOLUME.



TRANSCRIBER'S NOTE. Omitted words, shown as blank spaces in the original, have been transcribed as four hyphens (' '). Spelling variations between letters have been preserved.