very clearly a grant of the three following sums; four millions to Dr
Franklin to discharge the bills of exchange drawn on him by Congress;
six millions as a gift towards the operations of the campaign; and ten
millions in advance of the loan to be opened in Holland, amounting in
the whole to twenty millions. The first sum of four millions, appears
evidently to have been for payment of the bills drawn to discharge the
interest of loan office certificates, according to the original
engagement, which the Court entered into with the American
Commissioners. Of the money granted by the Court, there has been
advanced, as appears by the account you delivered to the committee, in
warlike stores and money, to Colonel Laurens, four millions seven
hundred and eightynine thousand one hundred and nine livres; and to
purchase the remainder of the articles demanded by him, three hundred
and ninetyseven thousand livres. For the bills of exchange drawn by
Congress on their Minister, I will suppose the sum mentioned in the
Count de Vergennes' note, viz. four millions, and I will add for my
drafts one million and a half, being what, as I have already observed,
you first promised. Thus the whole amount of these sums is ten
millions six hundred and eightysix thousand one hundred and nine
livres, and the balance, which I conceive to be subject to my
disposition, is nine millions three hundred and thirteen thousand
eight hundred and ninetyone livres. As to replacing the cargo of the
Fayette, which is mentioned in your account, I do not take notice of
it, because I wish that it may not have happened, and because if it
has been made, it will be time enough to deduct it when the articles
shall have been actually delivered. The loss of that ship, and the
detention of one of the transports laden by Colonel Laurens, have
already compelled me to make heavy expenditures. Among these I will
mention the purchase of lead some time ago, and a late purchase of
clothing to a very large amount, a part of which I am now paying for,
and the remainder is to be paid in three, six, and nine months from
the date of my engagements.
I have the honor to enclose what I conceive to be the clear state of
the account between us and your Court. This will be transmitted to Dr
Franklin, and I hope it will meet with your approbation and support.
As I have nearly drawn for twelve hundred thousand livres, I must
request your compliance with your original engagement, that I may
extend my drafts so as to include the remaining three hundred
thousand, necessary to complete the one million and a half, mentioned
in the enclosed account.
I shall be glad to be informed, Sir, whether any more money has been
shipped on account of the United States. I shall immediately take
measures to draw on account of the balance already mentioned, as our
necessities require it; and if in the mean time, so much shall have
been shipped, as that my bills exceed the balance due, I shall expect
that they will be punctually paid, and I will readily repay that
excess out of the moneys so shipped, to the use of your army here.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, November 26th, 1781.
Sir,
The letter, which you did me the honor to write on the 24th instant,
was delivered yesterday morning, and I take this early opportunity to
acknowledge it. As you have assured me, that you cannot know any
account, which is not conformable to the instructions his Majesty's
Minister has addressed to you, I shall spare your Excellency the
trouble of my remarks. But as you say, that your letter of the 26th of
September last could not have left me the shadow of a hope on the
subject of further drafts, your Excellency will pardon one
observation. Those precise orders from your Court, received by Colonel
Laurens, which compel you now to prohibit my further drafts, permitted
you then, in consequence of the observations I had the honor of making
to you, an extent of nearly three hundred thousand livres. It is my
duty to trespass one moment longer on your Excellency's patience,
while I take the liberty to observe, that I can by no means consider
purchases made for any particular State in the Union as properly
chargeable to the United States.
With the most perfect esteem and respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Office of Finance, November 27th, 1781.
Sir,
The Marquis de Lafayette who is about to sail for France, will have
the honor to deliver this letter, and, consistently with the acts of
Congress of the 23d instant, I must request you to communicate it to
him, and, from time to time, to take his aid in the prosecution of the
business, which I must recommend to your particular attention. The
affairs of my department are of a nature not to require concealment;
but, even if that were not the case, I have such perfect confidence,
as well in the prudence of the Marquis, as in his attachment to this
country, that the acts of Congress out of the question, I should feel
a pleasure in making him acquainted with my views and wishes. Indeed,
I expect that his zeal and activity will go far in smoothing the way
towards the accomplishment of those objects, which your Excellency may
have to solicit.
In order that you may be perfectly acquainted with the situation of
our affairs, I shall previous to my observations on the supplies to be
asked for the next campaign, take some notice of the efforts I have
made, and am daily reiterating, to obtain supplies from the several
States, upon the various requisitions, which Congress have already
made, and to operate a settlement of past accounts, and to procure
proper funds for the public debts. I shall also make some remarks as
to the prospect of future supplies in this country, and on those which
have already been granted by the Court of France.
The papers enclosed relate chiefly to the former requisitions of
Congress. You will observe, Sir, that by an act of the 28th of June
last, I was directed to press a compliance with those requisitions,
and it is in consequence thereof, that my circular letter of the 6th
of July was written. The demands of Congress were twofold; some for
specific supplies of the produce of the several States, the others for
money. It may be proper here to observe, that the manner of doing
public business had been such, that it was not merely difficult, but
absolutely impracticable to state any accounts in the clear
satisfactory manner, which ought always to be wished, even in private
life, but which in public life is of the last importance. I do not
mention this to cast any reflection or aspersion; for the evil
resulted more from the want of arrangement, than the faults of any
particular men. But it is right to take notice of the circumstance,
because, in the course of what I am about to write, the want of such
accounts cannot but appear. I shall say nothing as to the ill effects
of demanding generally a contribution of specified articles; my
opinions on that subject will appear from the enclosed papers, and
experience has taught, that such contributions are no longer to be
relied on. At the same time, I declare now, that in some degree it
must still take place, for reasons, which will be mentioned at the
proper time.
As the letter last mentioned contains no statement of the accounts, I
wrote on the 16th of July another, containing the cash account of each
State, as extracted from the treasury books; a statement, however,
which I knew to be imperfect, for causes not necessary to be repeated.
On the 25th of July, I wrote another circular letter, and in which was
enclosed a statement of the several demands for specific supplies.
These were considerable, and I am of opinion, that a very great part
of them still remains to be delivered at this day; but there have yet
come to my hands no accounts by which to determine the balances. What
is said, as to the settlement of accounts in this letter, will be
honored with your notice presently. You will now observe, that I
therein request information as to the revenue laws, which have been
passed, the mode of collecting taxes, the moneys in their treasuries,
the various appropriations of it, and the different paper currencies
in the several States. To your Excellency, it is unnecessary to
observe, that my object was to obtain proper materials, on which to
ground my future expectations, and to form efficacious systems of
revenue and expenditure. I have the mortification, however, to
mention, that no accurate or satisfactory answers have been received
to these questions; and when I tell you, that I am not much deceived
in my expectations, you will readily form the proper conclusions, as
to the relaxed habit of administration in this country. I wish you to
be fully possessed of our situation, and that you may convey a clear
idea of it to the Court of Versailles. This will be useful to the
common cause. I trust that I need not remind you how advantageous it
would be for us to know as fully the real situation of France.
The low state of public credit, for the want of solid funds to
support it, had induced the United States in Congress, to call for an
impost of five per cent on all goods imported, and on all prizes and
prize goods, to be granted for the payment of the principal and
interest of the debts contracted, or which might be contracted, during
the present war. Some of the States had complied with this demand. The
two more Southern States were in such disorder, that a compliance from
them could not reasonably be expected; neither was it relied on, as
you doubtless have remarked, on reading the resolutions of the 3d of
February upon that subject, which must have reached you before this
day. On the 27th of July, therefore, I wrote a letter to the States of
Massachusetts, Rhode Island, New York, Delaware, Maryland, and North
Carolina. I have the pleasure to inform you, that the States of New
York, Delaware, and North Carolina, have since complied with the
demand of Congress, and I am convinced that they will, in the laudable
step, be speedily followed by the other States. In the mean time, we
must patiently wait the event. Such things require time, and since we
cannot command obedience, we must stay for the assent of conviction.
On the 6th of August, I wrote a letter to the President of Congress,
enclosing those already mentioned. On this letter it is necessary to
say nothing more, than that it met with the approbation of the several
members, who have, I believe, written such letters to their respective
States as I desired.
My letter of the 15th of September, to the Governor of Massachusetts,
was, as your Excellency will perceive, although the settlement of past
accounts is mentioned in it, written in answer to his of the 23d of
August, in which he tells me, that he will lay the business of the
impost law candidly before the Legislature, but thinks it will go
heavily through. I shall add nothing here to what is said in that
letter.
My letter of the 20th of September to the Assembly of Pennsylvania,
was written so particularly, in consequence of the authorities they
had confided by their resolutions. I wrote to you respecting these
resolutions, and my plans founded on them, the 21st of July, and I
just mention here, by the way, that this plan has not been in any
degree executed, for reasons not necessary to be at present enlarged
upon. My letter to the Assembly of Pennsylvania, with the enclosures
referred to in it as accounts of which I send you copies, will need no
explanation, unless it be to mention that this State had issued one
hundred thousand pounds, secured with interest on certain lands near
the city, which is now nearly paid by the sales of these lands, and
five hundred thousand pounds more not bearing interest, which was
funded upon the Land Office, the dues to which were estimated at a
much larger sum. I have sent this letter, as also my private letter of
the 16th of October, to Governor Nelson, merely that you may be well
apprized of the incessant attention, which is paid here to call forth
our own resources. I might have added many other letters to particular
States on particular occasions, but I dare say you will find this
letter sufficiently voluminous.
Before I quit this subject of the past requisition of Congress, I must
add that, notwithstanding my pressing instances, very little hard
money has been obtained from the States; not more than one hundred
thousand dollars during my whole administration. There has, indeed,
been drawn forth some considerable specific supplies of provision,
and there is on hand a great deal of paper money. From the former our
army has been principally maintained, and indeed there is a small
advance made to the Count de Rochambeau, which I mean to be in part of
your promise mentioned in a former letter, and I here repeat to you my
determination to comply with it as speedily as any convenience will
possibly admit.
As to the paper money, it is of no use, although it is necessary, for
evident reasons, to receive it in taxes. But the confidence of the
people is so entirely lost, that for the present no bills of credit
whatever can be made use of as money. I hope that the taxes laid and
collecting in most of the States, will bring in all this useless load
by the middle of next summer; and I have some expectation, that the
States of Massachusetts, Connecticut, Pennsylvania, and Delaware, will
be entirely rid of it by the spring. If I could buy anything with it,
I would not, until the last necessity; but it will buy nothing, so
that it must be burnt as soon as it honestly can.
The picture I have already given of this country will not be pleasing
to you. Truth bids me add, that it will admit of a higher coloring.
But what else could be expected from us? A revolution, a war; the
dissolution of government, the creating of it anew; cruelty, rapine,
and devastation in the midst of our very bowels. These, Sir, are
circumstances by no means favorable to finance. The wonder, then is,
that we have done so much, that we have borne so much, and the candid
world will add, that we have dared so much. I could take up much of
your time in recapitulating many less matters, which have tended to
weaken the exertions we have otherwise been capable of. The confused
state of public accounts, and the deplorable situation of credit for
want of funds to secure, or means to redeem, the debt, for which the
public faith is pledged, are, however, of such important operation,
that I must not pass them over in silence.
In the enclosures your Excellency will have perceived, that I have
noticed the effects, which follow from the want of a final settlement
of accounts. Representations on the subject of these accounts, and
also of certificates given by public officers in the Commissary's and
Quarter Master's Departments for articles taken from the people had
been made by some of the States to Congress. The impost asked for by
Congress was, I have already observed, for the funding of our debts.
On the 13th of October, I wrote a letter to the several loan officers,
in which I expressly prohibit the issuing of any more Loan Office
certificates. The reason for this order will appear more clearly from
the latter part of my letter to the several Governors of the 16th of
October.
I do hope and expect, that some methods will speedily be adopted by
the United States in Congress assembled for settlement of the public
accounts, as also to liquidate the several certificates given by the
public officers, and to provide revenues for funding the public debts.
The last of these objects must not, however, be urged with too much
rapidity. The impost law is not yet passed, and is the first step.
When that shall have been taken, it will give room for urging what
further may be necessary. In the meantime, there is a well grounded
expectation, that the clamors of our creditors will induce the several
Legislatures to comply with the requisitions of Congress upon that
subject.
From what has been said, your Excellency will perceive, that the
prospect of future supplies from the several States, is by no means
very brilliant. I send you the Act of Congress of the 29th of October,
calling for eight millions of dollars, the Act of the 2d instant
apportioning that demand among the several States, and the Act of the
12th instant, repealing (in consequence of my letter of the 5th) a
part of the Act of the 2d. My circular letter of the 17th, enclosing
those Acts to the Governors, will close what I have to say on the
subject. But I must observe to you on my letter of the 5th to the
President of Congress, that although it is strictly true, that I had
not seen the estimates as mentioned in that letter, yet it is equally
true, that until the business was nearly completed, I was supposed to
have seen them, and when the contrary was suggested, they would have
been sent from Congress, but that so few States were represented, as
that only the number absolutely necessary to pass such requisitions
were then present, and some of the representatives of those few were
about to depart, wherefore it was waved. I have further to remark on
the estimates themselves, that they are only for the feeding and
paying the army. The expense of recruiting that army, of moving it
from place to place, the heavy articles of clothing and ordnance, with
expense of the hospitals, and the long train, which is comprehended
under the title of contingencies, is totally unprovided for. Defective
as it is, I have no hope that it will be complied with. The great
arrearage of unfunded debt, the cumbrous load of useless paper, the
multiplied mass of certificates, the distracted situation of the more
southern States, the ravages which have been made in them, the total
loss of their commerce, the real want of coin in many States, and the
equal want of system in all. These, Sir, are circumstances, which
forbid the most sanguine temper to expect a full compliance. It shall
be my business, as it is my duty, to get as much as I can, and for
this purpose, I shall make compositions; where it is necessary, take
articles of provisions in lieu of money and the like. Still, however,
I am convinced, that I shall not get what is asked for, and indeed I
do not expect any part of it, before the middle of next campaign.
I have said, that I will make some remarks on the supplies already
furnished by France. It is necessary to do this, as well because I am
so unfortunate as to differ a little in opinion on the subject with
the Minister of his Most Christian Majesty here, as because the
demands we are to make on the Court for the next year, will depend on
the compliances, which have been, and shall be, made with the grants
for the present year.
It was a point understood in Congress very early, that his Most
Christian Majesty would pay the interest of certain moneys to be
borrowed by Congress in America. Your Excellency knows better than any
other man what passed on that subject. It would, therefore, be absurd
in me to recapitulate it. Those circumstances which rendered an
express stipulation improper then, have introduced much delicacy into
it now; and, therefore, I do not expect that the Court will recur to
a formal acknowledgement of what was then, perhaps, rather a personal,
than national, obligation. But I do expect that the payment of that
interest will be provided for as heretofore, without considering the
moneys appropriated to that purpose, as a relief to us in carrying on
the war. You will have seen, Sir, from the course of my letters how
much it is an object with me to collect from ourselves the revenues
necessary to lighten our debts. There is a variety of reasons for it,
which I will not repeat. Among them, however, this is one, that I wish
to remove the load from France to ourselves. It will in the end be the
same thing; because, in proportion as our resources here are
appropriated, we must ask help there. But it would be better, that the
people were taught to look at home for the basis of national credit,
because there alone it can be found. I should not have mentioned this
matter, but that you will find it noted in the correspondence between
the Chevalier de la Luzerne and myself, of which copies are enclosed.
Shortly after the arrival of M. Gerard, it was understood that France
would supply us with the clothing and warlike stores which might be
necessary, and therefore it was, that Colonel Laurens, when in France,
labored to prevent a deduction from the subsidy of six millions on
account of the articles furnished to him. As I am persuaded that his
efforts were in consequence of your advice, and in concert with you, I
shall say nothing more upon that subject, only to lament that the
Court have differed from you in opinion, and to acquiesce in their
determination, on the principle, that those who give have a right to
dispose of that which is given.
By a note from the Count de Vergennes, of which I enclose a copy, I
perceive that the Court granted the United States as a gift, six
millions; advanced to you four millions to pay the bills which might
be drawn on you; and became security for a loan of ten millions; the
amount of which was to be advanced from the royal treasury, in case
the loan should fail of success. The expression, as to this last
object, is strong, namely, _that his Majesty will see himself under
the necessity of supplying the deficiency_, although, in the former
part of the note it is said, that he will supply it from his own
finances _as soon as possible_. An expression which, while at the
first blush it makes an earnestness of affection, may be, and in fact
has been, construed into a kind of cautionary provision. Your
Excellency will also, I doubt not, observe what is there said of the
appropriation of the gift, the last two millions whereof, as is
already observed, we did not expect to find there.
Enclosed also is an account delivered by the Minister of France in the
month of September to a committee of Congress, which had been
appointed to confer with him. There are striking differences between
this account and the note last mentioned. But by this account it
appears, that it was the design of the Court to make the advances of
the present year distinct from all past transactions. From whence this
conclusion, at least, will follow, that such of the bills drawn by
Congress, either on yourself, or on their agents in Spain, or Holland,
as you may have discharged before the commencement of the present
year, are not to be deducted from the sums mentioned in the Count de
Vergennes' note. Now that I am on this subject, I will observe to you,
Sir, that I have determined to prevent that circuitous negotiation of
bills, which has so much perplexed and distressed you, and have for
that reason stopped many of those already drawn, as will presently
appear. Another observation to be made on this account is, that no
notice is taken of the four millions expressly mentioned in the Count
de Vergennes' note, as granted to you for payment of bills drawn by
Congress.
A third observation is, that the articles marked B, and the article
number two, C, which together amount to the sum of six million, six
hundred and eightysix thousand one hundred and nine livres, are all
charged as being expended to the order of Colonel Laurens. But by the
Count de Vergennes' letter to you of the 8th of June last, it appears,
that Colonel Laurens was to have had the command of no other than the
six million livres, given by the King. Indeed the Count's note of the
16th of May shows the same thing. The letter of the 8th of June just
mentioned, shows clearly the opinion of the Court on another point of
very great importance, namely, that the whole ten million livres, to
be advanced for the loan, are, as in effect they ought to be, subject
to the disposition of the United States only. A fourth observation is,
that the article A three, B two, and C one, amounting to four millions
three hundred thousand livres, were, or were to have been, in your
possession for payment of bills. If to this be added four million
livres, granted for that express purpose, of which no mention is made
in the account, it would follow, that you would have eight millions
three hundred thousand livres at your disposal; and this leads me to
consider the amount of the demands, which could be made on you.
These cannot be precisely ascertained, but the paper number seventeen,
contains the best estimate, in my power. The first six articles of
this estimate contain all the bills, which have been drawn upon you,
excepting some interest bills, which although made out had not been
delivered to the people before the 1st of April last. These amount to
ten millions six hundred and seventyone thousand four hundred and
fiftysix livres, thirteen sols, four deniers. The article number
seven, is the whole amount of guilders drawn for; the far greater part
of which I have detained, as you will perceive by the article number
eight. The balance it is not possible to ascertain exactly in livres,
because it must depend upon the course of exchange; but at two livres
for a guilder, the whole of the bills actually negotiated on Holland
will amount to one million ninetyfour thousand seven hundred and
twentynine livres. The article number nine, is the amount of bills
drawn on Spain, of which a considerable part has been paid by Mr Jay,
and a part, somewhat more considerable, is destroyed. These parts are
contained in the articles ten and eleven. The balance (calculated at
the value of a dollar in France, which will, I suppose, be as much as
it can cost) amounts to one million seventyseven thousand two hundred
and eighteen livres. So that the whole of those bills, which by any
means whatever could have come upon you for payment, will be twelve
millions eight hundred and fortythree thousand four hundred and three
livres, thirteen sols, four deniers, and from this sum very
considerable deductions are to be made. The article number twelve,
which is the first of them, contains the exact amount of the several
bills for interest, which were negotiated previously to the first of
April last.