should draw on Messrs Fizeau, Grand & Co. at Amsterdam, and on Messrs
Harrison & Co. at Cadiz, desiring that you would direct those houses
to honor my bills, and take their reimbursement on you, which I now
confirm. I expect that the five hundred thousand livres which are
mentioned in my letters of the 28th of March, and 8th of April, will
be paid out of moneys, which were already in Europe; and indeed, that
still farther sums were there belonging to the United States, besides
the monthly payments to be made by the Court as above mentioned. At
any rate you will be in cash to pay all the bills which I have drawn
or shall draw. You will take care to transmit me a state of your
accounts by every opportunity that I may be thereby directed in my
operations.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO MR GRAND.
Office of Finance, May 18th, 1782.
Sir,
Our enemies being at length convinced by fatal experience, that it is
in vain to effect the conquest of America, have now changed the mode
of attack, and strike at our commerce and our resources. I have no
doubt, but that eventually they will be foiled in this, as in every
other attempt they have made, but in the interim between their first
effort and the period which must elapse, in preparations to obviate
this plan, we have suffered and must suffer considerably.
The commerce of this country has sustained no severer blow than has
been hitherto felt, and the effects of it materially influence my
operations. The merchants deprived of their property cannot command
money, and of consequence cannot pay bills. I am, therefore, unable to
command by drafts the money in your hands. My bills do not yet amount
to a million of livres, and will not I believe exceed that sum when
this letter goes away. These bills will not come to you before the
month of July, and the greater part will not be payable until the end
of September, and even later; but you will be possessed of three
millions and a half by the first of July, even if you shall have
received nothing from Dr Franklin on the old accounts.
I am therefore to request that you will make three shipments of one
hundred thousand crowns each, or six hundred thousand livres, making
in the whole eighteen hundred thousand livres. I wish it to be sent by
three different conveyances, for the sake of greater safety, unless
some very important convoy should offer, in which case I desire an
immediate shipment of twelve hundred thousand livres. I wish also,
that the money be invested if possible in gold, because four crowns
are worth here only four hundred pence, but a louis is worth four
hundred and fourteen pence, being a difference of three and a half per
cent. But that you may know the best mode of investing it, I have to
inform you, that English guineas are worth four hundred and twenty
pence, half johannas seven hundred and twenty pence, moidores five
hundred and forty pence, and Spanish pistoles three hundred and
thirtysix pence.
I shall leave this letter open for the inspection of Dr Franklin, to
whom I shall enclose it, and I shall request him to obtain for and
communicate to you such information from the Court as may be necessary
for your direction in this business. I wish that the shipments of
money may if possible be on board of the same vessels in which the
money shall be sent for the use of the French army or navy here. I
wrote to you on the 3d of December last, requesting you to pay to
Messrs Couteulx & Co. for account of John Ross two hundred thousand
livres, and for account of William Bingham one hundred thousand
livres, to John Holker for account of John Holker fils; conceiving
that you would be in cash for the purpose, from the loan opened in
Holland for our use.
I hope before this reaches you, that those sums will have been paid;
and you will observe it is my wish, that as well those as the bills
mentioned in my letters of the 9th and 28th of March, should be paid
out of that loan, but if that cannot be done, you will then make
payment from any other moneys which may be in your hands.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO MESSRS LE COUTEULX & CO.[6]
Office of Finance, May 18th, 1782.
Gentlemen,
I pray that you will receive my sincere thanks for the accurate and
punctual manner in which you have performed the business of the United
States, which I have placed in your hands, and be assured that it
shall always command my attention. I should have lodged in your hands
very considerable sums on their account, subject to my disposition,
but Dr Franklin having recommended to me in a very particular manner
Mr Grand, whom he had formerly employed, not only for his punctuality
as a banker, but also for his zeal in the American cause, which he had
early and warmly espoused, and evidenced his attachment by liberal
advances of money on the credit of their commissioners, before the
Court had acknowledged them as a nation, I thought it my duty to
employ him. But I think it more than probable, I shall have occasion
for another banker, on particular occasions and negotiations, and I
shall take the liberty in every such instance to employ you,
gentlemen, not in the least doubting a continuance of your punctuality
and attention.
I have the honor to be, &c.
ROBERT MORRIS.
[6] _May 20th._ This evening I met Mr Madison, Governor Rutledge,
Mr Clymer, Mr Lovell, and Mr Root, the Committee of Congress
appointed to confer with me on the subject of my letter to
Congress of the 17th instant, enclosing an intended circular
letter to the States. I laid before these gentlemen a true picture
of our present situation, but after much conversation, they
appeared to be disinclined to sending the circular letter, and I
proposed sending suitable persons to the several States, to make
proper representations to the Executives and Legislatures, which
they seemed to prefer, and on which they are to consult and report
tomorrow morning. _Diary._
* * * * *
TO B. FRANKLIN.
Office of Finance, May 23d, 1782.
Sir,
The Minister has been so kind as to delay his express, until I could
write this letter. You mention in yours of the 4th of March, that on
Friday (then) last, the Minister informed you that we should have six
millions, paid quarterly, and that you should now be able to face the
loan office and other bills, and your acceptances _in favor of M. de
Beaumarchais_.
You are not unacquainted with the disputes which have subsisted with
respect to M. de Beaumarchais' demand. Whether or not the moneys were
originally advanced to him by the Court, is not at present to be
brought into question by me, because it involves many things, which
are better adjusted by the Court themselves, than by any
communications to or with others. I am only to observe, that if the
very considerable sum, which is now payable to that gentleman forms a
deduction from the pecuniary aid afforded us, the remainder will be
extremely incompetent to the purposes intended by it. There can be no
doubt that your acceptances must be paid, but I have always expected
that you would have been enabled to do it by a special grant for that
purpose, or by an assumption of the payment on the part of the Court.
I shall not enter into the mode of arranging this business, but I must
not refrain from observing, that the great object now is to prosecute
the war, that the articles which may have been furnished for the sum
payable to M. de Beaumarchais must long since have been applied and
expended, that our necessities now are as pressing as they possibly
can be, and that everything which adds to their weight is extremely
distressful.
You will observe, Sir, that I have already made my dispositions as to
the six millions granted for the current year. I shall go on to draw
as occasion offers, for all the moneys which may be in Mr Grand's
possession, making allowance for the shipments of money, directed in
my letters to him. If, therefore, any part of this sum should be
otherwise disposed of, it might produce the most dangerous
consequences.
With respect and esteem, I am, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 23d, 1782.
Sir,
I do myself the honor to enclose to your Excellency copies of letters,
the former from Dr Franklin to me of the 4th of March, and the latter
from the Count de Vergennes to him of the 6th of February. With these,
I send the best sketch I have been able to form of the state of the
public moneys; from which Congress will perceive that every sou we
can command during the year 1782 is already anticipated. They will
perceive that the pecuniary supplies of 1781 and 1782 amount, after
deducting the expenses on the loan, to twentyfive and a half millions
of livres, and that there are, (including the two million two hundred
thousand livres, appropriated to the interest of Loan Office
certificates) ten millions, besides the sum expended in Holland, which
have already passed and are now passing through the hands of Dr
Franklin, and of which not a livre has been, or ever will be, applied
to the current service.
If to this be added above two millions and a half due on Beaumarchais'
bills, we shall have an amount of about twelve and a half millions,
being at least one half of all the moneys obtained abroad for the
service of the year 1781 and 1782. And we shall find, that this
greater half is totally consumed in paying the principal of some, and
the interest of other debts, which have been contracted before that
period. I shall make no further comments on these things. They are
before Congress, and will speak for themselves. I have only to lament,
that the situation to which our affairs have been reduced is such,
that the greatest exertion which our ally can make in our favor is
barely sufficient to satisfy present engagements, and that the
knowledge of such aid only confirms the inattention of our own
citizens to those distressing circumstances which it does not relieve.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 27th, 1782.
Sir,
I do myself the honor to enclose certain information, which I have
just received in a letter from the Minister of France. I take this
occasion to mention, that it is some time since M. de la Luzerne
communicated to me the grant of his Court, which was made in the month
of December last. I think it my duty to add the persuasion I have,
that this grant was made on the Minister's representations, and I
cannot omit testifying to Congress my grateful sense of his conduct,
and my conviction, that his endeavors have not been wanting still
further to promote the interests of the United States.
I should earlier have communicated my intelligence of the loan in
question, but I wished to receive the details, which would enable me
to judge how much of it was at my disposition. I confess that I did
not expect they would have been so unfavorable. I was restrained also
by an apprehension, that the exertions of the States would relax, when
they should learn that any foreign aid could be obtained; and the
situation of our commerce was such, that if I had been enabled to draw
for much larger sums, it would have been of no avail, as I could not
have got money for the bills.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
_Information mentioned in the above Letter._
The King never promised any subsidy to the United States, and all the
sums which they have received from him have been lent or freely
given. All those, which have been advanced after the 6th of February,
1778, are to be repaid by the United States except the six millions
given last year. All the rest, whether furnished in money or in value,
is a debt, which they have contracted with his Majesty.
These advances have been made at the following periods, and are
payable with interest, conformably to the acknowledgements and
obligations of Dr Franklin.
Livres.
In 1778, 3,000,000
In 1779, 1,000,000
In 1780, 4,000,000
In 1781, 10,000,000
----------
Total, 18,000,000
From this sum must be taken the
gratuitous subsidy granted last year of 6,000,000
----------
Remains 12,000,000
To this must be added, 1st the
produce of the loan in Holland, 10,000,000
2dly, The loan made by his Majesty for the
service of the current year, 6,000,000
---------
Total of the capital of the debt contracted
by the United States with his
Majesty, 28,000,000
I am ordered, Sir, to renew to you the demand, which I had the honor
to make before, to the purport that Congress should authorise Dr
Franklin to consolidate the principal and interest of that debt, by an
obligation in proper form. You are so firmly resolved, Sir, to
preserve the order you have introduced into your department, that it
would be superfluous to reiterate to you the assurance, that his
Majesty will under no pretext exceed the sum of six millions, which he
has determined to advance to the United States for the current year.
This exactness, which is in all cases indispensable, has become still
more so now, that the enemy seem determined to adopt a system, which
obliges us to turn the greatest part of our resources to a marine. I
am persuaded, Sir, that you can have no doubt as to the interest of
Loan Office certificates, and that you will not consider it as being
at our expense, seeing that no engagement of that sort has ever been
taken by us. If bills for this interest should continue to be
forwarded, those who draw must provide for the payment of them.
LUZERNE.
* * * * *
TO B. FRANKLIN.
Office of Finance, May 29th, 1782.
Dear Sir,
I do myself the honor to enclose you copies of two Acts of Congress,
one of the 5th of June, and the other of the 18th of June, 1779,
relating to the affairs of M. de Beaumarchais.
You will observe, Sir, that you were authorised to pledge the faith of
the United States to the Court of Versailles for obtaining money or
credit to honor the drafts on you. There is a mysteriousness in this
transaction arising from the very nature of it, which will not admit
of explanation here, neither can you go so fully into an explanation
with the Court. M. de Beaumarchais certainly had not funds of his own
to make such considerable expenditures; neither is there any reason to
believe that he had credit. If the Court advanced money it must be a
secret; but there would be no difficulty in giving an order in your
favor for the sum necessary to pay those bills, and, therefore,
measures might be taken to obtain from him the reimbursement of any
sums he might have received. Consequently, there would be no actual
advance of money made, as the whole might be managed by the passing of
proper receipts from you to the Court, from M. de Beaumarchais to you,
and from the Court to him.
I wish that you would apply on this subject and get it adjusted. The
diverting from a loan, for the service of the current year, so
considerable a part as that due to M. de Beaumarchais, will defeat the
object for which it was granted. It ought not, therefore, to be done
if possible to be avoided.
With respect and esteem, I am, &c.
ROBERT MORRIS.
* * * * *
TO DANIEL CLARKE.
Office of Finance, May 30th, 1782.
Sir.
I received your letters of the 7th, 9th, 14th, 18th, and 21st of May.
The resolutions of the House of Delegates, passed on the 20th, have
been submitted to Congress, and they have referred the matter to Mr
Rutledge, and Mr Clymer, two of their members, who are going on
special business to the southward. Your letters contain a great many
particulars, which I shall briefly enumerate, and take notice of;
many of them are of a private and personal nature, and therefore ought
not in any case to have influenced the determinations on a matter of
great public importance. I should pay no attention to them, if I were
not persuaded, that the design is not so much to injure me, as to
involve the national affairs committed to me.
I find there are made against me personally, the following charges.
1st. That I have robbed the Eastern States of their specie.
2dly. That I am partial to Pennsylvania, being commercially connected
with half the merchants of Philadelphia.
3dly. That I am partial to the disaffected.
4thly. That I have established a bank for sinister purposes.
5thly. That my plan and that of Pennsylvania, are to keep Virginia
poor, and
6thly. That with the Secretary of Congress and Mr Coffin I am engaged
in speculation.
As to the first point, I believe the Eastern States have a very
different opinion of the matter, although there may be one or two
persons in some part of those States, who from their great latitude of
conscience, would not scruple to assert what they know to be false.
Those who make and respect such assertions, must be content to pass
for the authors and inventors of untruths, with design to injure the
public service and sow dissensions among the States. I have not
received from the Eastern States, any more than from the Southern
States, _one shilling of specie_, since I was appointed to my present
office, although I have sent very considerable sums from hence, both
eastward and southward, as the exigencies of the service required.
As to the second point, that I am commercially concerned with half the
merchants of Philadelphia, if that were as true as it is false, the
conclusion, that I am partial to Pennsylvania would by no means
follow. A merchant, as such, can be attached particularly to no
country. His mere place of residence, is as merchant perfectly
accidental, and it would be just as reasonable to conclude, that an
American residing at L'Orient, and trading to China, must be partial
to the French and Chinese. I know that this story of my partiality to
Pennsylvania has been very assiduously circulated, and has obtained an
extensive currency. It was supposed that I must be partial to
Pennsylvania, because I reside in it. The assertion therefore was
made, and the contracts I had entered into were brought as the
evidence to support it. I have received from Pennsylvania, for the
service of the last year, one hundred and eighty thousand dollars,
besides a warrant on their treasury for near ninety thousand, which is
not yet paid. The contracts in Pennsylvania have not amounted to that
sum. Is there a State in the Union, which can say I received from them
one shilling for the last year? There is not one. But I can
demonstrate that while I was charged with this partiality, I had
exhausted my credit, and supplied every shilling of money, which I
could command from my private fortune, to support and succor _the
Southern States_. But this was not from a partiality in their favor,
for I will neither endeavor to ingratiate myself with them, on such
principles, nor subject myself to the ignominy of just reproach from
others. It was for the general good.
That I am partial to the disaffected is among those threadbare topics
of defamation, which have been so generally applied, that they have
lost their effect. But I have remarked, that this particular aspersion
is generally cast on those who least deserve it, and by those who are
in a fair way of becoming disaffected themselves. I am not very sorry
for this charge, because it shows, that while I have inveterate
enemies, they have nothing to allege against me, and must resort to
the regions of fiction for the ground of calumny.
That I have established the bank I shall confess. That bank has
already saved America from the efforts of her avowed, and the
intrigues of her concealed enemies; and it has saved her from those,
who, while they clamor loudly against the administration for doing so
little, sedulously labor to deprive it of the means of doing anything.
The bank will exist in spite of calumny, operate in spite of
opposition, and do good in spite of malevolence. If there be sinister
purposes in view, it must be easy to show what they are. The
operations of a bank are such plain matters of arithmetic, that those
who run may read. There is nothing of mystery, disguise, or
concealment. If, therefore, these sinister views cannot be shown, (and
I know that they cannot) that defect of proof, after the charge made,
is itself a proof that the thing does not exist. But the matter does
not terminate here. A groundless unfounded opposition against measures
of public utility, must proceed from some cause. If it proceed from an
opposition to the public interests, their conduct is dangerous; but if
it proceed from aversion to me, I pity them.
That I should, or that Pennsylvania should have a plan to keep
Virginia poor, is a strange assertion. I believe that Pennsylvania
will probably be rich, the soil and climate are good, and the people
are quiet and industrious. Their rulers also begin to be sensible of
their true interests. They encourage commerce, have laid aside all the
idle systems of specific supplies, and content themselves with laying
money taxes. There can be no doubt but that such a people must become
rich. On the other hand, if Virginia, or any other State, be poor, it
must be their own fault. Prudence, diligence, and economy, promote
national prosperity; and vice, indolence, and prodigality, involve
national ruin. I am so far from wishing to impoverish Virginia, that I
have constantly labored, both in my public and private applications to
bring about those measures, which are calculated to make her wealthy
and powerful. In the moment of cool reflection this will be
acknowledged; whenever my measures are adopted, it will be known, and
in that moment those who from ignorance, or wickedness, have opposed
themselves to their country's good, will be known and despised. The
charge of speculating, in conjunction with the Secretary of Congress
and Mr Coffin, is one of those foolish things, which are not worth an
answer. The whole business was known to the General, and after him, to
a committee of Congress, before anything was done.
You tell me further, that there are jealousies and resentments against
Congress, for a design to curtail the territory of Virginia; that it
is alleged no money can come into the country, while bank notes and
bills on Philadelphia will purchase tobacco; and that the enemy having
failed to subdue Virginia by force, would now try the arts of
seduction, wherefore great care ought to be taken in preventing any
intercourse with them. As to any design in Congress to curtail
Virginia, if there be such, I know nothing, of it. Congress will
undoubtedly pursue the line of justice, and might be justly offended
were they charged with that design, which you say has offended
Virginia. There was a time when Pennsylvania clamored loudly against
Congress. It impeded the public service, and injured the reputation of
Pennsylvania, without producing any good, much less a counterbalance
for the evils, which it did produce. Happily all those heats have
subsided, and Pennsylvania is now, what I hope Virginia will soon be,
the zealous supporter of Congress.
The means of bringing money into a country are very simple, being
nothing more than the creating a demand for it. If every man be
obliged to get some money, every man must part with something to get
money. This makes things cheap, and those who have money always choose
to expend it where things are cheapest. But what is the predilection
in favor of specie? If bank notes answer the purposes of money the man
who receives them has every benefit, which he could derive from
specie. If they will not answer those purposes, no man will receive
them; and then Virginia will not be troubled with them. If money is
due from Virginia to Pennsylvania or Maryland, it must go thither, and
the only way to get it back again is to sell something cheaper than
Pennsylvania or Maryland will sell it. As to any profit made by the
bank in issuing their paper, gentlemen in Virginia may easily share it
by purchasing stock, which can be had here for the subscription and
interest.