lately received, I found that after making due allowance for Loan
Office bills, &c. which might still come upon him, my drafts and those
which I have directed, would exceed by something more than six
millions (exclusive of the interest payable by him in November on the
Dutch loan) any funds which he could be possessed of. It appeared also
by indirect information so late as in the month of September, that the
loan opened by Mr Adams had not produced above three millions, so that
unless he had met with further success, there would be a deficiency of
three millions.
Had the Court granted us twelve millions in the first instance, had Mr
Adams's loan produced six millions, had M. de Beaumarchais' bills been
provided for without recurrence to the American banker, or, finally,
had the heavy deduction made by those bills been replaced, this
disagreeable thing would not have happened. Presuming that the loan of
the last year was exclusively at my disposition, I drew during the
year to the amount of it, and I am convinced that all my bills, and
those drawn by my authority, will have been paid. Rely on it, that as
I told you in a former letter, I have acted under the influence of
dire necessity, and this you will be convinced of by a few out of many
circumstances.
Enclosed you have a general statement of the public account until the
year 1781, on which you will observe that the army was fed
principally, though scantily, by the specific supplies called for at
different previous periods, and that there remained in the treasury
near three hundred thousand dollars, being part of the money which
Colonel Laurens brought with him from France. I also enclose to you
the copy of a letter written to Congress on the 21st of October, and
of its several enclosures, which will need no commentary; or if it
did, I would only add, that I have been obliged to sell part of the
goods, which arrived here from Holland, in order to raise so much
money as would save my sinking credit from destruction. I would go
into a detail of the various measures pursued to stimulate the
exertions of the States, but to do this with accuracy, would be to
give a tedious history of my whole administration. Whatever expedient
could suggest itself, which might have that desirable effect, I have
tried, and I do assure you, that when I look back at the scenes I have
passed through, they strike my own mind with astonishment. As soon as
I can get the accounts made up, I will transmit to you the total of
our expenditures; but to transmit, or even relate our hazards and
difficulties, would be impossible.
Even at this moment I am making further exertions to bring our
unwieldy system into form, and ward off impending evils; but what the
success may be, heaven only knows. Imagine the situation of a man, who
is to direct the finances of a country almost without revenue, (for
such you will perceive this to be) surrounded by creditors, whose
distresses, while they increase their clamors, render it more
difficult to appease them; an army ready to disband or mutiny; a
government, whose sole authority consists in the power of framing
recommendations. Surely it is not necessary to add any coloring to
such a piece, and yet truth would justify more than fancy could paint.
The settlement of accounts, long and intricate beyond comprehension,
becomes next to impossible, from the want of that authority which is
on the verge of annihilation, from those confusions which nothing can
dissipate except the complete settlement of accounts, and an honest
provision for payment.
Upon discovering the situation of our affairs in the manner already
mentioned, I laid them before Congress. You will know the result. The
Secretary of Foreign Affairs will, doubtless, transmit their Act; to
which I must add this further communication, that I expect my bills
will amount to a million within a month from this date. There are
cases, where nothing worse can be apprehended from a measure than what
would inevitably happen without it, and our present position is one of
them. An immediate command of money is alike necessary to our present
existence and future prospects. In Europe, when this letter arrives,
you will know decidedly whether we are to expect peace or war. We must
prepare for the latter. By so doing we may forward negotiations for
peace, and, at the worst, will only have incurred some additional
expense, whereas by neglecting it, we risk the chance of being taken
unawares, and paying very dearly the penalties of neglect.
But, Sir, notwithstanding these reasons and many others will justify
every counsel and every act however irregular in other respects, I
would not draw one more bill, and I would boldly hazard every
consequence of the omission, if I were not persuaded that they would
be paid. On this occasion your sovereign will expect your most
vigorous exertions, and your country will, I trust, be indebted to you
in a degree for her political existence.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Office of Finance, January 13th, 1783.
Dear Sir,
I have received, in addition to those already acknowledged, your
letters of the 12th of August, 26th of September, and 14th of October.
I should, therefore, regularly have received two copies of the
contract entered into on the 16th of July, between you and the Count
de Vergennes, but I suppose it has been omitted through mistake in
both the letters which refer to it.[12] I lament this the more, as no
one copy of it has yet arrived, and, consequently, the Congress cannot
do what I am persuaded they would on the occasion. But although from
this circumstance they do not make professions, yet, as far as I know
the sentiments of that body, they are penetrated with gratitude. And
you hazard nothing in making to the King the fullest assurances of
their desire to repay the obligations they have received, and gratify
their affection for his person and family by services and benefits.
You will oblige me much if (together with the contract in question)
you will send a statement of the Farmer-General's account, and of the
agreement with them.
[12] See this contract in the _Secret Journal of Congress_, Vol.
III. p. 273.
You tell me that the losses in the West Indies prevent you from
obtaining farther aid. It is, therefore, to us a double loss. As to
the precaution you give me about my banker, you will find that before
the receipt of Mr Grand's accounts, I had drawn on him beyond his
funds. I have this day entered into an explanation with the Minister
on that subject, and I enclose you the copy of my letter, as also of
another paper delivered to him, which may be worth your attention. In
my turn, I rely upon your promise of exertion to pay my drafts. If one
bill should be protested, I could no longer serve the United States.
With respect to the apprehension you express as to my bills, I do not
perceive the matter in the same point of light with you. The lists of
my bills are transmitted to Mr Grand by various opportunities, and
they will check any which might be forged or altered.
I shall take due notice of what you say about your salary, and will
enclose the bills to you. The amount will depend on the course of
exchange during the war. You will be a gainer, and after the peace you
may perhaps lose some trifle, but not much, because remittances might
then be made in specie, should the exchange be extravagantly high. You
will readily perceive, that although the fluctuations of exchange are
in themselves of very little consequence to the individuals who may be
connected with government, they become important at the treasury,
partly from the numbers of payments and consequent amount, but more so
because they would introduce a degree of intricacy and perplexity in
the public accounts, which are generally either the effect, or the
cause of fraud and peculation. Besides, there is no other way of
adjusting salaries, than by a payment of so much at the treasury,
unless by rating them in the currency of every different country as
livres, dollars, guilders, rubles, &c. The late mode of rating them in
pounds sterling, required a double exchange. For instance, the number
of livres to be given in payment of one hundred pounds sterling at
Paris on any given day, depends on the then rate of exchange between
Paris and London, and the value of those livres here depends on the
exchange between Paris and Philadelphia.
I pray you, Sir, to accept my sincere thanks for the kind interest you
take in the success of my administration. The only return, which I can
make to your goodness, is by assuring you, that all my measures shall
be honestly directed towards the good of that cause, which you have so
long, so faithfully, and so honorably served.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO MR GRAND.
Office of Finance, January 13th, 1783.
Sir,
I have received your several favors of the 13th of July, 11th and 19th
of August, and 14th of October. The contents are far from being
agreeable, but I thank you for the communication of them. If I had
been so fully apprized of our situation as I now am, perhaps I might
have suffered everything to be ruined, rather than have risked my
bills. But if that had been done, more men would have blamed than
applauded my conduct. I have gone into a full explanation with M. de
la Luzerne, and although he cannot as Minister approve what is done,
he has too much sense not to see the propriety and necessity of it.
It will be very useful both to you and me, that we should know exactly
the state of our affairs, but I cannot acquire that knowledge by any
comparison of accounts in my possession. You I think will be able to
do it, and for your assistance I send the following information.
There have been issued from the several Loan Offices, bills, at thirty
days' sight, for eight millions four hundred and thirtyone thousand
seven hundred and fifty livres; bills at sixty days' sight, for one
hundred and twentyfive thousand livres; and bills at ninety days'
sight, for one million three hundred and sixtyfour thousand one
hundred and ninetyone livres, thirteen sous, and four deniers. An
examination of your books will show at once how much of these sums
remains unpaid. There have been issued bills on Mr Laurens and Mr
Adams in Holland, for five hundred and fortyseven thousand three
hundred and sixtyfour guilders and two thirds; and there have been
issued on Mr Jay, for four hundred and fiftyeight thousand eight
hundred and twentysix dollars. A proper inquiry will, I suppose,
obtain the amount of payments on all these bills, and then you will be
possessed of the state of things so fully, that you can apprize me of
facts sufficient for my information.
From the best information I have been able to collect on the subject,
my bills have very considerably exceeded your funds, but I trust that
you have been possessed of additional funds for the acquittal of them
in due season. I do everything that I can, and shall expect that you
will exert yourself, to aid Dr Franklin. On those exertions I place
much reliance; being with sincere esteem, Sir, your most obedient, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, January 13th, 1783.
Sir,
In the close of our conversation on the 11th instant, your Excellency
did me the honor to request that I would recapitulate to you in
writing, the reasons why my bills had exceeded the funds in possession
of Mr Grand, by about three millions and a half of livres. I undertake
this task with pleasure, but I will premise, that in the course of
this letter (seeking clearness more than precision) I will not trouble
you with an attention to fractional sums, but rather to round numbers.
You will remember, Sir, that shortly after your arrival in this
country, the Congress, while they continued their drafts for interest,
added a number of other bills on Dr Franklin, at a long sight, which
they directed to be sold; and urged by their necessities, and relying
on the success of measures then just undertaken, they drew other bills
at a long sight on their Ministers in Spain and Holland. Before this
they had drawn bills on Dr Franklin, in favor of M. de Beaumarchais,
for nearly three millions, of which two millions and a half were
payable in June, 1782. The amount of all these bills, exclusive of
those to M. de Beaumarchais, was between thirteen and fourteen
millions. How great a proportion of this sum had been paid, and how
much remained due, it was impossible for me to determine with
precision, because I had not received the accounts, but the best
estimate in my power was made.
Your Excellency will also remember, that from the sketch which you did
me the honor to deliver from the Count de Vergennes, there was due on
the Dutch loan of 1781 about four millions, or three and a half after
deducting the supposed expenses of that loan. I considered this
balance as sufficient to liquidate what I estimated to remain due of
the several bills drawn by order of Congress as above mentioned,
excepting the two millions and a half payable in June last. I
perceive, however, from Mr Grand's accounts, that although his
Majesty, among other acts of his royal generosity, remitted the
expenses of the loan, yet the balance actually touched by the banker,
amounted only to about two and a half millions. Thus there was a
deficiency of a million in what I had relied upon to acquit former
engagements. It is necessary for me to mention here, that I had
allowed also for a supposed deduction on account of the Virginia
goods, but as I had also supposed, that fewer of the Congress bills
remained unpaid than appeared afterwards to have been, so one error
eventually corrected the other, and left the deficiency still at a
million. It is proper also to observe further, that although the loans
and subsidies of 1781, amounting in the whole to twenty millions, had
been principally employed in the purchase of clothing and military
stores, yet the continuance of those things in Europe by various
delays and mischances obliged me to make provision for the same
articles here, forming thereby a heavy deduction from the small means
which were at my disposal.
Having said thus much of things previous to the year 1782, I must now
take the liberty to remind your Excellency, that I had requested the
sum of twelve millions for that year, on the principle, that after
deducting two millions and a half for M. de Beaumarchais, the
remaining nine and a half would be absolutely necessary, and I then
did expect much more from the States than has been received. The
Court, however, granted only six millions, but I had every reason to
suppose, that this sum would be exclusively at my disposition; and
therefore in consequence of your Excellency's assurances, and
according to your advice, I drew twelve bills of half a million each
on Mr Franklin, in favor of Mr Grand, and I appropriated this money to
the payment of what bills I should draw on him; excepting a part which
I desired him to ship during the last summer, when bills were not
saleable, and which I expected here in November, or December; but as
it did not arrive, I conjectured as the event has shown, that no
shipment was made, and extended my bills accordingly. As to M. de
Beaumarchais' bills, I expected that some arrangement might have been
taken with relation to them, according to our conversations. For
although you declared that you had no instructions on that subject,
yet you saw with me that our funds would not bear such a deduction,
and the line of conduct which you advised, was precisely that which I
pursued, as I shall presently have occasion to mention.
I relied then on the loan of six millions, and on three millions which
Mr Adams had obtained in Holland, so long ago as in September last. My
appropriation of these sums was as follows. Bills drawn on Mr Grand in
1782 for six millions, being the amount of the loan made by his
Majesty; one million negotiated through the Havana; half a million
which I directed for payment of interest on the Dutch loan of 1781;
and a million and a half drawn for in 1783, at the time I had the
honor to speak to your Excellency, formed the amount of three millions
in Holland, which by the Acts of Congress were exclusively at my
disposition.
It was not, therefore, until the investigation of Mr Grand's accounts,
that I was struck with the deficiency above mentioned, and which arose
from the difference of one million due on the former transactions more
than I had calculated, and two millions and a half to M. de
Beaumarchais. The moneys which I supposed to be at my sole disposal
were, I found, subject to Dr Franklin's order, and therefore Mr Grand
instead of six millions possessed only two and a half towards
answering my bills drawn in 1782. I had written to Dr Franklin in the
manner agreed between us as to M. de Beaumarchais. But the money was
paid before the letter arrived. I should not, however, do that justice
to Dr Franklin which I ought, if I did not observe, that I think he
was perfectly right in causing those bills to be paid. You will
consider, Sir, that they had been drawn in 1779, and negotiated for
three years, through different parts of Europe and America, on the
public faith and credit of the United States. It is a very moderate
calculation to suppose, that a thousand different people were
interested in the sum of three and a half millions. Protesting the
bills, therefore, would have sent them back again from one person to
another, affixing a stigma on our character wherever they went. The
necessary consequence would have been, not only a total loss of credit
in Europe, but that no person here would have bought my bills. The
funds, therefore, which I could command would have been useless, and
the difference between not having money and not being able to use it
is immaterial.
Having said thus much, Sir, on the reason of the deficiency, I find
it proper to add, that the bills drawn in December and November amount
to two millions; which being at thirty days' sight will not be payable
until February or March next. One million negotiated through the
Havana on Cadiz, thence to Paris, &c. will not finally be payable
until March and April. And one million drawn the beginning of this
month at one hundred days' sight, will not fall due until some time in
April and May. On the other hand, any further success of Mr Adams's
loan will apply for the payment.
I trust from the whole state of these things your Excellency will see,
that nothing has introduced any disorder into these transactions, but
the appropriation without my authority of moneys intended to be at my
disposition, and that this again has arisen from the utter incapacity
of Dr Franklin any otherwise to acquit the demands on him, arising
from expenditures made some years before my administration. If I might
venture, therefore, to advise, it should be that three and a half or
four millions were paid to Mr Grand as an addition to the loan of
1782, and then the sum which the Court may think proper to advance for
1783, being clear of preceding transactions, I will pledge myself that
no act of mine shall exceed the limits to be prescribed by your Court.
You see, Sir, that I rely on aid for the current year; and this brings
me to the resolution of Congress, which I had also the honor to
communicate. You observed on it with great propriety, as a Minister of
France, that you advised me not to comply with it; and as a Minister
of the United States I might reply, that I should certainly obey the
order of my masters. At the bottom I believe we are both agreed. I
would not put my name to a bill if I doubted the payment, and you must
be convinced that it is necessary to draw. Not to mention those
critical circumstances of the army, which you are perfectly apprized
of, it must be remembered how important an effect it might have on the
negotiations for peace, if we should now neglect to prepare for war,
and much more if we should suffer any serious misfortune. To keep the
army together, in good humor and prepared for action, is a duty which
we owe alike to ourselves, to our allies, and to our associates in the
war.
I shall I believe draw within a month for at least a million. You
know, Sir, that the funds given by the States are incompetent, and I
am sure you will do me the justice to believe, that I have done all in
my power to husband our means and to increase them. That I have not
talents equal to this task must be lamented and forgiven. It is not my
fault but my misfortune. The share of abilities which I possess, be it
what it may, has been faithfully exerted. If, however, I have incurred
censure on the present occasion, it must be because I was ignorant of
what I could not know, and did not perform what was not in my power.
I am, Sir, with respect and esteem, &c.
ROBERT MORRIS.
* * * * *
TO JOHN ADAMS.
Office of Finance, January 19th, 1783.
Sir,
Although I have not yet been honored with any letters from your
Excellency, I cannot omit the occasion of writing, which offers itself
by Mr Jefferson. Having already congratulated you on the
acknowledgement of our independence by the States-General, and on the
rapid success of your labors equally splendid and useful, I hope when
this letter shall have reached your hands I may have the additional
cause of congratulation, that the loan you have opened in Holland
shall have been completed. This is a circumstance of great importance
to our country, and most particularly so to the department, which I
have the honor to fill. Whatever may be the success of it, whether
general or partial, I pray your Excellency to favor me by every
conveyance with every minute detail, which can lend to form my
judgment or enlighten my mind.
For the more perfect security of our correspondence I do myself the
honor to enclose the counterpart of a cypher, to the use of which you
will soon become familiarised, and I hope you will be convinced, that
any confidence with which you may honor me shall be safely reposed and
usefully employed for the public benefit.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF PENNSYLVANIA.
Office of Finance, January 20th, 1783.
Sir,
I had the honor to receive your Excellency's favor of the 18th of last
evening. In answer, it becomes my duty to convey to your Excellency,
the painful information, that those affairs of Congress, which relate
to the public revenue, are reduced to the most critical situation.
They are now under contemplation of that honorable body, and I shall
take the earliest opportunity of communicating to the several States
the result of their deliberations.
It is also my duty, Sir, on this occasion, to remind your Excellency,
that on the 2d day of November, 1781, the Congress required of the
State of Pennsylvania, one million one hundred and twenty thousand
seven hundred and ninetyfour dollars, as the quota of that State, for
the expenditure of the year 1782. This sum was to have been paid in
equal quarterly proportions, commencing on the 1st day of April last.
I am extremely sorry to mention, that during the whole of the year,
1782, there has been received towards the payment of this quota, only
the sum of one hundred and seven thousand nine hundred and twentyfive
dollars and twentyfour ninetieths, being less than a tenth of the sum
required. It is of little avail, Sir, that the army who are the
immediate sufferers, or the people of America whose national existence
is so imminently hazarded, should be told, that a law has been enacted
for raising the sum required. Laws not executed, or which from their
nature are not to be executed, only substitute deception in the place
of denial. Congress can never believe, that a State seriously means a
compliance with the demands made on it, unless the laws be such, that
responsible officers be sufficiently empowered to collect the taxes by
certain specified periods, and that the Continental Receiver of taxes
be empowered after such periods shall have elapsed, to issue
executions against the persons and estates of those officers for any
deficiency, which may remain of the sums payable by them respectively.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO GEORGE WASHINGTON.
Office of Finance, January 21st, 1783.
Sir,