certificates, which may be given by the Quarter Master General, or
other officers properly authorised to give them for supplies, that
shall hereafter be furnished, shall be accepted in payment." This
provision may, in some instances be necessary, in some improper, but
in all it must be dangerous. I shall not dwell on the consequences of
giving these certificates; but I will suggest one idea, which will,
perhaps, merit attention. That article is an act of sovereign
authority, and therefore while it exists doubts may arise how far the
issuing of such certificates can be restrained. If the Quarter Master
and others will give certificates, and the States will receive them
and tender them to me, I must, according to this act, accept them in
payment; but those who contract for supplies to the public, certainly
will not take them from me. If, on the other hand, that article be not
inserted, the general authorities given to me by Congress are equal to
all the necessary regulations in executing their commands. I might,
for instance, appoint a trusty person to give certificates in
extraordinary cases. I should then know the amount of such
certificates, and I could make the necessary arrangements with
relation to them.
My sentiments on the next article are so fully expressed in the
enclosed letter, that I will not trouble Congress with the repetition.
I shall only observe, that daily observation and information confirm
my fears, that frauds have been practised in giving those
certificates, and I must be of opinion, that a general permission to
receive them in taxes will be very injurious, not only to the public
revenue, but to the reputation of our measures. I am apprehensive that
many honest men through the United States, who know the frauds
committed in their neighborhoods, will imagine that sufficient
attention is not paid to the detection of villany, and that idea will
disincline them very much from the payment of taxes, because nothing
induces men to part with their money so cheerfully, as the belief that
it will be applied to the purposes for which it was granted, with
economy and integrity.
What I have written on the subject of a final apportionment may appear
to have proceeded from a want of attention to that article of the
confederation, which points out the manner of defraying public
expenses. But this is not the case. The article in question relates
merely to those circumstances, which shall arise after the completion
of it, and makes no provision whatever for past expenses. The several
requisitions of Congress do indeed refer to a future settlement,
according to the mode expressed in the confederation; but the
confederation itself must receive a liberal and equitable
construction; much more so those resolutions which refer to it. If
this be not the case, it would be madness to expect obedience from
free agents independent of each other, which is the situation of the
several States. If, then, the article be considered and weighed, even
as to the quota of the current year, where certainly it applies with
greater force, than to any past transaction, we shall find that it
presupposes the following things; first, a certain mode of determining
the value of lands, &c., or, in other words, the value of each
respective State; secondly, that this mode should not be permanent but
variable, and framed from time to time, according to the then existing
state of things; thirdly, that it should be founded in liberal
principles of justice; no other mode being presumable from those who
are to adopt it; fourthly, that the value being thus equitably
determined, the expenses of the current year should be estimated
according to the best lights, which could be obtained; and fifthly,
that this expense should be apportioned according to that valuation.
If these ideas be just, and I think that an inspection of the article
itself will show them to be so, then it will follow, that a valuation
made for one year cannot properly apply to any preceding or subsequent
year; more especially, if any considerable change take place in the
respective circumstances of the several States. Let us, for instance,
suppose, that in the year 1776, five hundred acres of land in the
State A were worth one thousand pounds; that in the year 1777, they
were worth five hundred pounds; and in the year 1778, one hundred
pounds; while, during the whole period, five hundred acres in the
State B were worth five hundred pounds. Let us suppose the States A
and B to have been of the same extent, and that thirty pounds were to
have been paid annually by those States according to the
apportionment of the confederation, they would then have been charged
as follows; in 1776, the State A twenty pounds, and B ten pounds; in
1777, A fifteen pounds, and B fifteen pounds; and in 1778 A five
pounds, and B twentyfive pounds. Thus, then, of three times thirty or
ninety pounds, A would be chargeable with twenty, fifteen, and five
amounting in the whole to forty pounds; and B with ten, fifteen, and
twentyfive, amounting in the whole to fifty pounds. The proportion,
therefore, between them is as four to five; but the proportion arising
from their relative wealth in either of those terms is widely
different. In the first, it is as two to one. In the second, as one to
one, and in the third, as one to five. Wherefore, if the whole ninety
pounds were to have been apportioned on the valuation of the first
year, it would have been to A sixty, and to B thirty. On that of the
second A fortyfive, and B fortyfive, and on the third A fifteen, and B
seventyfive.
If this conclusion be fairly drawn, then a question will arise on this
point. Suppose no mode of valuation adopted, how are the quotas to be
ascertained? In answer to this question, I state the following
positions; first, that the object of the confederation was to make an
equitable apportionment; secondly, that Congress will always, when
they direct a valuation, do it in an equitable mode; and thirdly, that
a valuation is, at present, impracticable, much less a valuation for
times past. These things admitted, and the necessity of an
apportionment being also admitted, the question answers itself; for no
other mode will remain, but by resorting to such lights as Congress
may have on the subject, and that they determine as equitably as they
can, according to those lights, which is the very thing I have
already proposed.
I shall trespass no longer on your Excellency's patience, than to
mention, that I have detained the copies of those acts, until the
further order of Congress. But if they disapprove of it, I shall
immediately transmit them.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, November 6th, 1781.
Sir,
I have been honored with your Excellency's answer of the 4th to my
letter of the 3d instant. I am sure we cannot differ in opinion. It is
impossible, that I can doubt the wisdom or integrity of his Most
Christian Majesty, or that you can doubt his desire of giving further
assistance to the United States. As to the mode in which that can be
done, his Majesty's convenience, and the situation of affairs will
best determine it. I wish to receive pecuniary aid, and when I
consider the importance, I am led to expect it. You have doubts on
that subject; but the success which has followed from the grants
already made, will show so clearly the utility, that you, who see the
good effects, and who are so zealously attached to the common cause,
will concur with me in your efforts also. The regard you have
expressed for the United States, and which, I am sure you feel, gives
me the highest reason to expect your good offices on all occasions,
which may relate to their welfare, and particularly those in the line
of my department, where you are fully sensible assistance is most
necessary.
With the most perfect esteem and respect, I am, &c.
ROBERT MORRIS.
* * * * *
TO THE COUNT DE ROCHAMBEAU.
Office of Finance, November 15th, 1781.
Sir,
I have the pleasure to observe to your Excellency, that I have
discharged a bill drawn on me by M. Baulny, in favor of M. Roquebrune,
for eighty thousand livres, being in part payment of the one hundred
and forty thousand livres, which you were so kind as to advance, and
for which I beg leave again to express my grateful sense of
obligation. The remaining sum of sixtyfour thousand livres, I hold at
your order, and had determined to remit it; but having accidentally
mentioned the matter to the Chevalier de la Luzerne, he observed to
me, that in all probability, you would want money rather in
Philadelphia than Virginia, because of the necessary expense, which
would arise in transporting stores from Boston. Upon this principle, I
deferred sending forward, until I should hear from your Excellency on
the subject. M. de la Luzerne has also promised me to mention it in
his letters to you.
Before I conclude this letter, I must trespass one short moment on
your patience, to express my congratulations on the important and
splendid success, which has crowned the allied arms before Yorktown.
My voice, Sir, cannot add to that glory, which the public sentiment
has most deservedly conferred; but you will permit me to assure you of
the high gratification it gives my mind, that you are so much the
object of gratitude, applause and esteem, throughout the United
States.
With the most perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, November 17th, 1781.
Sir,
I have the honor to enclose acts of Congress of the 30th of October,
and 2d instant, which were handed to me on the 4th; but upon a perusal
of them, it appeared that some things had escaped the attention of
Congress; wherefore, on the 5th I had the honor of writing to them a
letter on the subject.
In this letter I took the liberty to state some objections to the
three clauses in the Act of the 2d, which follow immediately after the
apportionment. I shall not here repeat those objections. They lay
before the United States in Congress, and will receive such mature
consideration, as is becoming the wisdom of that sovereign body. I
will not however hesitate to declare to your Excellency, that it was
my wish to have those three clauses repealed.
On the 12th, the United States in Congress assembled passed the act,
of which a copy is also enclosed, and by which your Excellency will
perceive, that one of those clauses is repealed. I received this Act
on the 30th, and I have waited until this day the further order of
Congress; but there being now but a thin representation, so that
business cannot be done with the same despatch as when more States are
present, and these Acts being of great importance, I have thought it
best immediately to forward them. To press a compliance is I trust
unnecessary. The respect due to the representation of America will
speak more loudly and more effectually, than the weak voice of any
individual servant they may have employed. I shall make but one
observation. The present requisition is very moderate; the
compliance, therefore, must be very punctual, for delays are equally
dangerous and expensive, and if they should happen, the people must be
burdened with new taxes unnecessarily.
With great respect, &c.
ROBERT MORRIS.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Mount Vernon, November 19th, 1781.
Dear Sir,
I have to inform you, that a very considerable debt has been incurred
on you as Financier of the United States, by an order for the relief
of the officers of the army from the goods found in Yorktown; each
officer, military and staff, having been authorised to take up on
public account, the sum of twenty pounds Virginia currency; for which
Mr Ross, commercial agent of this State, is answerable to the
merchants, payable in tobacco; Mr Ross receiving the amount in bills
upon you to be paid in six months from the time of the goods being
taken. The returns not being handed in, I am unable to give you the
amount with any precision; your own calculations will afford you the
sum with a degree of certainty.
A quantity of goods found on board a cartel in York river, and which
have been judged to be forfeit, were part suitable for the army, and
part for the country; the latter, which will amount to a considerable
sum, are to be sold at public vendue, and accounted for.
Knowing the state of your finances, I have studied to keep this debt
within its most moderate bounds, but in spite of all my endeavors, I
fear you will find it but too large. I hoped to have given you some
assistance from the military chest found with the enemy, but
unavoidable contingencies of the army, and furnishing the Quarter
Master General for the southern army, have swallowed up near one half
of its contents. A number of iron cannon, being unnecessary for our
use, I have appropriated as a fund for the discharge of the debt
incurred, and they are sent to the head of the Elk; this with the
other funds may possibly amount to a full discharge of the debt.
I am, &c.
GEORGE WASHINGTON.
_P. S._ Since writing the above, I am informed by General Lincoln, who
is come up since I left Yorktown, that the whole amount of the goods
taken by the officers and on public account, will arise to about
thirteen thousand pounds sterling, and that the articles sold in
Yorktown, at public vendue, will be near six thousand pounds.
G. W.
* * * * *
TO THE GOVERNOR OF CONNECTICUT.
Office of Finance, November 20th, 1781.
Sir,
I have been honored with your Excellency's letter of the 7th instant,
and am much obliged by the attention you have been pleased to pay to
the several applications from me, which are noticed in it.
I shall be very happy to receive the several accounts you have
promised, because the final settlement of all accounts appears to me
of the utmost importance, and I hope such measures will be taken, as
founded in justice and propriety will meet your wishes, and be
agreeable to the State, over which you so worthily preside. I hope
that in future, there will be no accounts between the States and the
United States, except cash accounts, one side of which will consist of
the requisitions, and the other with the payment of them. The old
Continental, which is brought in, will, I hope, be forwarded hither,
with its proportionate part of the new, and indeed of the whole, both
new and old, as soon as possible. Both shall be carried to the credit
of the State.
As to what you mention of the tax in specie, I have to observe, that
whatever may have been the practice heretofore, I hope that the moneys
designed for the general service will be paid into the Continental
Treasury, and that the army will be paid from thence. This I conceive
to be the only mode, by which heart-burnings, murmurs, and complaints
can be avoided, and, at the same time, it is the only mode, by which
the moneys obtained from the people can be applied with effect and
economy.
To feed, clothe, and pay the army, form a part of the objects of my
administration. Clothing I have received. Rations I have contracted
for in some degree, and I shall extend those contracts. Pay will also
be advanced, when the treasury will admit of it. I am, therefore, to
request that the hard money collected, and collecting in your State
may be held subject to my drafts. I expect that the States will all
levy taxes sufficient for those things I have just mentioned, and for
the other necessary expenses. The money which is submitted to my
disposal shall be faithfully applied.
That the requisitions from Congress have been later than was to have
been wished, is indeed to be lamented. That body have so many objects,
which call on their attention, that they cannot always do what they
would wish. Besides this, the uncertain situation of our money has
hitherto greatly increased the difficulties, which Congress have
labored under, and you will permit me to observe, Sir, that those
difficulties are not a little to be attributed to the inattention of
the several States. But your Excellency will, I am sure, agree with
me, that our situation requires joint vigorous exertions, and not
unavailing complaints and recriminations.
With the greatest respect, &c.
ROBERT MORRIS.
* * * * *
REPORT OF A LETTER TO DON BERNARDO DE GALVEZ, MADE TO CONGRESS,
NOVEMBER 21ST, 1781.
The Superintendent of Finance, in pursuance of the order of the 7th
instant, prays leave to submit the following draft of a letter to
General Galvez.
Sir,
Your letter, dated at New Orleans the 22d of July, 1780, has been
received, and was laid before the United States of America in Congress
assembled on the 29th of September following. The committee to whom
that letter was referred, did not make any remittances in consequence
of it, nor write you an answer, because the dangers attending a
communication with you at that time were too great, occasioned by the
many ships of war, with which the enemy then infested our coast.
I am now, Sir, directed by the United States to express to you the
grateful sense they entertain of your early efforts in their favor.
Those generous efforts gave them so favorable an impression of your
character, and that of your nation, that they have not ceased to
respect you, and to wish for an intimate connexion with your country.
Conceiving it to be for the mutual interest of Spain and North
America, they have an earnest wish, that as the cause is one, and the
enemy one, so the operations against him may be continued in such
manner, as to answer the great purposes, which all have in view. The
late successes, which have crowned the combined arms of France and
America in Virginia, while they demonstrate the benefits which flow
from a union of efforts, will at the same time, lead to wholesome
reflections on the manner in which that union has been cemented. The
French and American soldier marching under the same banners, enduring
the same fatigues, bearing the same dangers, and bleeding in the same
field together, express in the language of their different nations the
common sentiment of fraternal affection. Let me congratulate you very
much on this success, and still more on the sentiment, by which, under
Providence, it has been secured.
With respect to the advance made by your Excellency, I have the honor
to enclose copies of two resolutions of Congress, one of the 6th of
February last, and the other of the 7th instant, by which you will
perceive, that the public accounts with Mr Pollock are settled, and a
considerable balance carried to his credit. In these accounts is
included a part of your advance, and the remainder of it is contained
in Mr Pollock's account with the Commonwealth of Virginia. This
latter account has been referred to the consideration of that
Commonwealth, and I trust the debt to Mr Pollock will be acknowledged
by them. That which is due from the United States to Mr Pollock is now
on interest at six per cent, and if you wish that the sums which he
has appropriated to the service of the United States out of those
advanced by your Excellency should be credited to you, on transmitting
an assignment thereof from Mr Pollock, it shall immediately be done,
and payment will be made both of the principal and interest, as soon
as the situation of our finances will admit of it, which, from the
present prospect of things, may happen in a shorter space of time,
than the public creditors have been generally led to expect.
With perfect respect and esteem, I am, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, November 22d, 1781.
Sir,
In conversation with your Excellency last evening, you requested me to
write to you on the subject of it, that you might be fully possessed
of my sentiments. I have now, therefore, the honor to remind you, that
some time in the month of May last you promised me that I should draw
for half a million of livres, and shortly after, for a million more.
You afterwards extended this sum to two millions and a half, and on
the 25th of September last, I wrote to you on the subject, having then
seen the report of the committee appointed to confer with you, by
which it appeared, that your engagement with me to draw for the sums
first mentioned formed one object of that conference, but that the
engagement for one million more was omitted.
I have extended my engagements according to the extent of the means,
which I was induced to suppose in my power, and therefore, estimating
the money and supplies the States would probably furnish, and relying
on the money which had arrived, that which I was authorised to draw
for, and that which the engagements of your Court had led me to
expect, my views were directed to all those resources. I shall not
dwell on the consequences of my efforts. Enough of them are known to
speak for themselves, and I leave to your knowledge and observation
the comparison of our public affairs now, with what they were exactly
six months ago. I will only say, that if those foundations, on which I
built, are removed, my past labors will have been thrown away, and my
future utility absolutely destroyed.
You can well remember, Sir, what I have often told you of the course
of exchange. I have raised it gradually since I first commenced my
operations, and although it would now have been higher than it is, if
the quantity of bills thrown on the market last summer had been
withheld; yet even now, at fifteen pence this money for a livre, it is
but ten per cent below par; and as I expect shortly to raise it to
sixteen pence, it will then be at a discount of only four per cent. To
sustain these operations, if for no other purpose, it is necessary
that I continue to draw bills, for certainly a remittance cannot be
made so cheaply from Europe. But, indeed my present demands, arising
on past engagements, are very great and urgent, so that if I do not
continue to draw, the chest will presently be empty, which will be
known as soon as it happens, and then I am again at the mercy of the
world. I will dwell no longer upon this subject, but take some notice
of another matter, which stands in intimate connexion with it.
You will remember, that you have often mentioned to me a mistake in
the account, of which you delivered a copy to Congress. As I made no
doubt, that it would be properly and satisfactorily explained, I have
hitherto restrained myself from going at all into the subject. But it
now becomes my duty to write to Dr Franklin upon it; and, therefore, I
wish to communicate to you my sentiments, while I request you to use
your good offices with the Court for having the matter placed on its
proper footing.