chooses to purchase stock. Personally I have no other concern in it,
than any other gentleman may have, who pleases to invest his property
in it. The government have nothing to do with the bank, except merely
to prevent the Directors, should they be so inclined, from extending
their operations in a manner disproportionate to their capital,
thereby endangering their credit. Any aid which the government derives
from the bank is by lodging proper securities with it, and borrowing
money for short periods on the discount of interest at the rate of six
per cent, which is receiving ninetynine and paying a hundred at the
end of two months. The moneys so borrowed are punctually repaid.
By accepting the office I now hold I was obliged to neglect my own
private affairs. I have made no speculation in consequence of my
office, and instead of being enriched I am poorer this day, than I was
a year ago.
You will, from what I have said, see two sufficient reasons against
adopting the plan you have proposed. That I have not money, and that I
have totally quitted commerce and commercial projects, to attach
myself wholly to a business which requires my whole attention. A
principal object of my last letter was to acquaint you with this
circumstance, and by what I have there said I meant to acquaint you
also with the manner of doing business at the bank. If, for instance,
you draw a bill in favor of your factor here on a merchant of
reputation, payable at sixty days' sight, and that merchant accepts
the bill, your factor can get ninety dollars for every hundred of the
bill by discounting it at the bank, and with that money can purchase
the articles you direct; but you must then be careful to make due
remittances to the merchant on whom you draw. If by connecting
yourself in this manner with any gentleman in trade here you can
derive any benefit, it will afford me a very sensible pleasure, but as
to myself, I must again repeat, that I have quitted trade; and I will
add, that the closing my past dealings, which is now the only private
object of my attention, requires time, which I cannot spare for the
purpose; and of consequence it is, with everything else of a private
nature, very much neglected, to my very great disadvantage.
I am, &c.
ROBERT MORRIS.
* * * * *
REPORT TO CONGRESS ON A MEMORIAL OF THE MERCHANTS OF PHILADELPHIA.
Office of Finance, May 4th, 1782.
The Superintendent of the Finance of the United States, to whom was
referred the report of a committee on a memorial of the merchants of
Philadelphia, and motion thereon, begs leave to report,
That the navy of the United States is not in a situation to afford
protection to their commerce, nor can it be rendered equal to that
object for some considerable time, even if the necessary funds could
be procured. That there remains no mode of obtaining such protection,
unless from the allies of the United States, or the powers engaged
with them in war against Great Britain.
That the commerce of these States is of such importance, that it is
not improbable the Court of France would afford permanent protection
if in their power; and that in the interim some relief may, perhaps,
be obtained from the fleets in the West Indies.
The following resolution therefore is submitted; That the
Superintendent of Finance prepare a statement of the commerce of the
United States, together with a plan for the protection thereof.
That the Secretary of Foreign Affairs communicate the same to the
Minister of his Most Christian Majesty, and cause application to be
thereupon made by the Minister of these States to the Court of
Versailles; and that the Superintendent, as Agent of Marine, make
application on the same subject to the Commanders of the fleets of
France and Spain in the West Indies.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 8th, 1782.
Sir,
His Excellency, the Minister of France, in a late letter to me has
officially declared, that in future no sums will be paid to the
Ministers of the United States in Europe by his Court. It becomes
necessary, therefore, to make provision for their support here. I
immediately applied to the Minister of Foreign Affairs for an account
of the annual salaries payable to his Department. I have received it
this day, and do myself the honor to enclose a copy. I must take the
liberty to observe, that the sum is very large, and such as cannot be
advanced without greatly retrenching from essential services, at least
in the present moment. It will, I humbly conceive, be necessary that
arrangements should be taken, so that in future all such salaries as
are payable to foreign Ministers be advanced in America, and
negotiated by their respective Agents. This will be honorable to the
United States, and I should suppose more agreeable to the gentlemen
concerned.
The Minister of France has also observed, that the accounts between
his Most Christian Majesty and the United States having become very
important, by the greatness of the sums advanced and lent, it is
indispensable that measures be taken to adjust them, and to avoid that
confusion, which would be introduced by a longer delay. And in
consequence, he has desired that Congress would transmit to Dr
Franklin full power finally to settle those accounts, and in the name
of the United States to execute the proper obligations for securing
the debt and fixing the periods of payment. To this he adds, that it
is not expected Congress can do anything towards payment during the
war, but that they will fix the several epochas at which they shall be
made.
To a proposition so reasonable, there will, I presume, be no
objection. The solidity of the observation on which it is founded
cannot be called in question, and I am induced by it to extend the
remark a little further. The great sums which remain unsettled and
undetermined between the French Court and the United States are alike
unsettled between the latter and their public servants. How the
accounts may stand I know not, but it is my particular duty to
observe, that there appears to have been but little received for the
great sums, which have been expended, and therefore it is highly
necessary, that the public accounts of these States with their
servants in Europe be also settled. It shall be my study in future to
prevent the existence of such accounts, but their magnitude as well as
other circumstances, makes me extremely solicitous to have them
adjusted.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES
Office of Finance, May 9th, 1782.
Sir,
I do myself the honor to enclose you copies of three accounts, which I
have this day received from the Controller of the Treasury of the
United States. Each State will from these accounts perceive what still
remains for it to do in consequence of the resolutions of Congress, of
the 18th of March, 1780.
As this is a circular letter, the observations I make shall be
general, and such as result from a general view of the object. The
particular application of them, dependent on local circumstances, will
be made by those to whom such circumstances apply. The resolutions of
the 18th of March, 1780, were in part directed towards the redemption
of the old Continental money, and the opinions which may have been
formed as to the issuing of a new paper medium, the paying of interest
upon it, and the connexion with relation to the old, are immaterial
under the present point of view.
Nothing can be more clear and simple than this, that the bills issued
by Congress for support of the war should be redeemed by taxes. This
was one capital object of the resolutions, and as to the
apportionment, I am to presume it was as perfect as the fluctuating
nature of human affairs will permit, and more especially so, when the
few lights, which could the obtained, and the various circumstances of
the several States, are compared with the very variable object of
depreciated paper, which was then in contemplation. But, admitting for
argument's sake, that the apportionment was not strictly right; this
must also be admitted, that to redeem the paper was called for by
principles both of reason and justice. It was, therefore, a duty of
the several States to comply with the requisitions of their sovereign
representative. For any inequalities, either actually existing, or
which a subsequent change of circumstances might produce, would admit
of a remedy, but a neglect of the resolutions had the inevitable
consequence of injuring the public credit, weakening the public
operations, and risking our very existence as a people.
But however strong the motives, which should have prompted a
compliance, it will not be disputed that some of the States may have
been in circumstances not to admit of the exertion, and whether this
incapacity has arisen from exterior violences, or the defects of
internal polity, or both, is in one sense immaterial, because the
eventual consequence is the same. Yet, though charity may for a time
overlook these defects, it becomes the duty of each State to apply a
remedy, if the evil be in its nature remediable; and should they
neglect what is in their power, they must expect complaints from
Congress, and the servants of Congress from the other States, and from
their own bosoms the admonitions of conscience, which will become more
poignant from every moment's delay.
A general view of the accounts now transmitted, will show at a single
glance, that large sums of the old paper still remain to be provided
for, and it might, perhaps, have been right in Congress to have fixed
an ultimate day of redemption for the whole, and charged what remained
due after that day at forty for one in specie to every deficient
State. This, I say, might perhaps have been right, if the ravages of
war and other local circumstances had not required attention and
forbearance as to some, if not all. But it cannot be denied, that many
are now in a capacity to call in by taxes their quota of this paper.
And those who are, should consider what must be the feelings of men,
who hold it on the faith of so many promises, such repeated
requisitions, and such sacred bonds of national faith and honor. What
must be their feelings to find those promises violated, those
requisitions neglected, and that faith disregarded? Can it be
expected, that while such flagrant instances of national neglect, to
call it by no harsher name, are in the view of almost every citizen,
we can possibly establish the fair reputation so essential to public
credit?
The plea of inability is not to be admitted, excepting, as I have
already observed, in some very particular circumstances. Considering
our country in a general point of view, this paper laying dead is
already lost, and the only question is, whether that loss shall be
borne by the whole people or only a part of them. Those who parted
with it have received the value, and it would be a flagrant
injustice, that the whole tax for redeeming it should fall on those
who have received it. Neither can it be supposed, that if any were
inclined to promote such injustice it would be borne by the sufferers.
And whether these sufferers are individuals or States, the suffering
is the same; the sentiment, therefore, must be the same, and so will
the conduct be which that sentiment shall dictate.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 10th, 1782.
Sir,
In consequence of the Act of Congress of the 4th instant, I do myself
the honor to enclose a state of the American commerce, with a plan for
protecting it. I shall, in obedience to the orders of Congress,
transmit a copy of this paper to the commander of his Most Christian
Majesty's fleet in the West Indies, and make the application which I
am directed to him, and to the commander of the fleet of Spain. I take
the liberty to suggest for the consideration of Congress, whether any
application on this subject to the Court of France would not go with
propriety through the Office of Foreign Affairs.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.[5]
[5] _May 13th_: This day the Chevalier de la Luzerne had a public
audience of Congress, when he announced the birth of the Dauphin
of France. I attended at the ceremony, being admitted into the
Congress hall within the bar, and I took my place next to the
members of Congress, the left of the President, the Minister of
Foreign Affairs and the Minister of War next to me. We stood
during the whole ceremony, as well also the President and Council
of the State of Pennsylvania. When the ceremony was ended, Mr
Livingston, General Lincoln, Mr Gouverneur Morris and myself, went
to his Excellency, the Minister of France, to pay our compliments.
Afterwards we repaired to the City Tavern to an entertainment
ordered by Congress, thence to an exhibition of fireworks at the
State House, and then to an entertainment given by the Secretary
of Foreign Affairs. _Diary._
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, May 16th, 1782.
Sir,
I have heretofore taken occasion to observe, that the former
expenditures of the United States were at a medium rate of twenty
millions of dollars annually, for the support of the war. At the
present moment, while laboring under a large debt, only eight millions
have been asked for. It is evident, therefore, that the sum now
required is as little as can possibly answer the purpose. I venture to
say that it is not enough. According to the estimates for the year
1782, which were laid before Congress by the late Board of War, the
present establishment of the army would require for pay, exclusive of
the half pay, near three millions and a half, for rations near two
millions and a half, for clothing, about twelve hundred thousand, for
forage above three hundred thousand, for the Quarter Master's
department, (exclusive of articles on hand) above eight hundred
thousand, for military stores (exclusive of articles on hand) near two
hundred thousand, for the hospitals (exclusive of medicine and also of
sundry stores on hand) above one hundred thousand.
If to all these be added the sum of four hundred thousand for the
Departments of the Pay Office, Commissary of Prisoners, and the
various other contingencies of service, which naturally and
necessarily arise, without mentioning the losses, which happen in war,
here will be an aggregate amount of nine millions, and in this sum
nothing is estimated for the interest of our debts, for the Marine,
and for the Civil List, and the Department of Foreign Affairs.
Of the various expenditures, much was to be provided immediately. The
heavy article of clothing, for instance, was indispensable. Many
things were to be provided early, in order that the army might
operate, and the subsistence is to be paid for regularly and
constantly. Yet the States have not been asked for any money before
the 1st day of April; and I appeal to them all, whether the supplies
of money they have afforded me for the last year were such as would
enable me to provide for the present.
A three months' expenditure was permitted by Congress to elapse,
before the first payment of two millions was asked from the States;
but what have they done? While I write this letter near two months
more are gone forever, and a dishonorable neglect endangers our
country. Little local objects have postponed those measures, which are
essential to our existence, so that the most fatal consequences are
now suspended but by a thread. Should they fall on our heads, this
solemn protest shall point to the real cause of our calamities. I
write, Sir, to apprize you of the public danger, and to tell you I
shall endeavor to fulfil engagements, which I have entered into
already, that I may quit my station like an honest man. But I will
make no new engagements, so that the public service must necessarily
stand still. What the consequences may be I know not, but the fault is
in the States. They have not complied with the requisitions of
Congress. They have not enabled me to go on. They have not given me
one shilling for the service of the year 1782, excepting only the
State of New Jersey, from which I received five thousand five hundred
dollars, a few days ago, and this is all that has come to my hands out
of two millions, which were asked for.
Now, Sir, should the army disband, and should scenes of distress and
horror be reiterated and accumulated, I again repeat, that I am
guiltless; the fault is in the States; they have been deaf to the
calls of Congress, to the clamors of the public creditors, to the just
demands of a suffering army, and even to the reproaches of the enemy,
who scoffingly declare, that the American army is fed, paid, and
clothed by France. That assertion, so dishonorable to America, was
true, but the kindness of France has its bounds, and our army, unfed,
unpaid, and unclothed, will have to subsist itself, or disband itself.
This language may appear extraordinary, but at a future day, when my
transactions shall be laid bare to public view, it will be justified.
This language may not consist with the ideas of dignity, which some
men entertain. But, Sir, dignity is in duty, and in virtue, not in the
sound of swelling expressions Congress may dismiss their servants, and
the States may dismiss their Congress, but it is by rectitude alone,
that man can be respectable. I have early declared our situation, as
far as prudence would permit, and I am now compelled to transgress the
bounds of prudence, by being forced to declare, that unless vigorous
exertions are made to put money into the treasury, we must be ruined.
I have borne with delays and disappointments as long as I could, and
nothing but hard necessity would have wrung from me the sentiments,
which I have now expressed.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 17th, 1782.
Sir,
I do myself the honor to enclose to your Excellency the copy of a
circular letter, which I have written to the several States. The
situation which I find myself is extremely delicate. The habitual
inattention of the States has reduced us to the brink of ruin, and I
cannot see a probability of relief from any of them. I rather perceive
a disposition to take money from the public treasury, than to place
any in it. A variety of causes, which Congress are, I presume
acquainted with, prevents the collection of taxes, and delays the
payment of them, even after they are collected. In many States they
are not laid. I must not conceal from Congress my apprehensions, that
the idle hopes entertained from the changes of administration in
Britain will increase that negligence, which is but too prevalent
throughout the United States.
I might add many reasons, why a call should be made in the present
critical moment, and it is evident, that such a call should be couched
in terms so pressing, as to stimulate if possible their sluggishness
into exertion. But on the other hand, it is evident that if a faithful
representation of our distressed circumstances should fall into
improper hands, it would be productive of the most dangerous
consequences. And when the number of our internal enemies, and the
designs of our external ones are considered, there can be little
doubt, that such a letter would be handed about soon after its arrival
for the illicit purposes of both. At the same time, however, it must
be considered, that if any fatal consequences should ensue from the
continued negligence of the States, attempts will be made to justify
it on the principle, that they were not seasonably apprized of their
danger.
I am sure I need not take up more of your time, Sir, in showing the
difficulties with which on the present occasion I am surrounded. Urged
by them I must entreat the opinion of Congress, whether the letter in
question be retained or transmitted. I take the liberty further to
remark, Sir, that the declaration contained in it, purporting any
intention not to make new engagements, is short of what I am under the
necessity of doing, for the public departments are now absolutely at a
stand for the want of money, and many things already commenced I must
desist from. This cannot be wondered at, when it is considered that
near five months of the present year have elapsed without my having
received anything on account of its expenditures, except the trifling
sum of five thousand five hundred dollars mentioned in the enclosed
letter, and that sum, calculating our expenses at eight millions
annually, is about _one fourth of what is necessary to support us for
a single day_.
I have the honor to be, &c.
ROBERT MORRIS
* * * * *
TO B. FRANKLIN.
Office of Finance, May 17th, 1782
Sir,
In a letter which I had the honor to write to your Excellency on the
17th of last month, I mentioned the communications of the Minister of
France here, by which I was empowered to draw to the amount of six
millions in monthly instalments of half a million each. He has since
informed me, that no moneys will be paid by his Court except on my
draft. It is in consequence of this, that I have drawn the bills
contained in the enclosed letter to Mr Grand, which is left open for
your perusal. Your Excellency will be pleased to arrange this matter
with Mr Grand, so as best to answer the purposes intended. You will
also be pleased, Sir, to pay over to Mr Grand on my account such
moneys belonging to the United States as may be in Europe, distinct
from those to be advanced by the Court for the current year.
I am extremely desirous of having a state of these matters so as to
know what dependence can be made on the funds, which are at our
command. You would, therefore, confer upon me a very particular
obligation by transmitting the best statement in your power. I
mentioned to your Excellency in a former letter, that I would write to
you on the subject of your salary, more particularly than I then did,
but I have since spoken and written to Mr Livingston with relation to
those matters, and he will, I expect, write to you and to all our
foreign Ministers very fully.
We have not yet heard anything of the Alliance, and therefore
conclude, that she must have been delayed in Europe. I hope this may
have been the case, for if she sailed on the 1st of March, according
to my orders, she must have met with some unfortunate accident. I hope
soon to hear from your Excellency. Indeed I persuade myself, that in
the very critical situation of affairs at present, we cannot be long
without receiving very important intelligence.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO MR GRAND.
Office of Finance, May 17th, 1782.
Sir,
In my letters of the 28th of March, and 8th of April, I informed you
of my drafts on you to the amount of five hundred thousand livres. I
have since that time drawn sundry other bills, all of which you have
been duly advised of, or will be so by this conveyance.
I am now to inform you, that his Excellency, the Minister of France,
has given me assurances on the part of his Court, that five hundred
thousand livres per month, during the year 1782, will be paid on my
drafts, making in the whole six millions. He has also suggested to me
the expedient of drawing twelve sets of exchange on Dr Franklin, our
Minister Plenipotentiary, in favor of my banker, so that the money may
be in his hands monthly at my order. In consequence therof, I now
enclose to you twelve bills of exchange on Dr Franklin, all at thirty
days' sight, and each for half a million. When these bills arrive you
will present so many of them for acceptance, as that at the end of the
thirty days the amount shall be equal to the monthly payments above
mentioned. As for instance, if these bills should arrive in July, you
will present seven of them for acceptance, because by the time the
thirty days have elapsed there will be due so many of those monthly
payments. But in this, as well as in other matters of arrangement with
the Court, you will take the advice of Dr Franklin and govern yourself
accordingly.
The several bills which I draw on you I will regularly inform you of.
After the first month has elapsed you will present another bill for
acceptance, and so on monthly, presenting each month a bill. I write
also by this conveyance to Dr Franklin to pay on my account all the
moneys belonging to the United States in Europe, which may be in his
possession.