have directed the Commissary of Marine Prisoners to appoint a proper
agent at Dobbs' Ferry, and I hope for your Excellency's advice to him
on that occasion, which he will be desired to apply for. Without
wishing to incur the blame of too great suspicion, I take the liberty
to suggest, (as an additional reason for caution;) that moneys
intended for commercial pursuits, might be transmitted under the idea
of relieving prisoners. Mr Skinner has never yet communicated his
returns or accounts.
It was with very great pleasure, Sir, that I paid the money you
desired, to Mr Adams, and I beg you to believe, that I shall at all
times be happy to facilitate your views. At present, the negotiation
happens by good luck to minister alike to your convenience and mine. I
am very sorry, that you did not make an earlier mention to me of your
demands for secret service. I would have anticipated your views, had
it not escaped my attention, for be the distresses of my department
what they may, this is of too much importance ever to be neglected. I
think it best in future, that a solid arrangement should be taken, and
for this purpose I will give directions to the Paymaster General
always to keep some money in the hands of his deputy, to answer your
drafts for contingencies and secret service. I have, as you will see,
taken methods to put the deputy in cash, and then your Excellency will
be relieved from any further care than the due application. I am,
however, to pray for the sake of regularity in accounts, that your
Excellency in the warrants would be so kind as to specify the
particular service when on the contingent account, and draw in favor
of one of your family on account of secret services, mentioning that
it is for secret service. I shall direct Mr Swanwick to endorse the
bills on you in favor of Mr Adams to the Paymaster General, whose
deputy will receive from your Excellency the amount.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, January 24th, 1783.
Sir,
As nothing but the public danger would have induced me to accept my
office, so I was determined to hold it until the danger was past, or
else to meet my ruin in the common wreck. Under greater difficulties
than were apprehended by the most timid, and with less support than
was expected by the least sanguine, the generous confidence of the
public has accomplished more than I presumed to hope.
Congress will recollect, that I expressly stipulated to take no part
in past transactions. My attention to the public debts, therefore,
arose from the conviction, that funding them on solid revenues was the
last essential work of our glorious revolution. The accomplishment of
this necessary work is among the objects nearest my heart, and to
effect it, I would sacrifice time, property, and domestic bliss.
Many late circumstances have so far lessened our apprehensions from
the common enemy, that my original motives have almost ceased to
operate. But other circumstances have postponed the establishment of
public credit in such a manner, that I fear it will never be made. To
increase our debts, while the prospect of paying them diminishes, does
not consist with my ideas of integrity. I must, therefore, quit a
situation which becomes utterly insupportable. But lest the public
measures might be deranged by any precipitation, I will continue to
serve until the end of May. If effectual measures are not taken by
that period, to make permanent provision for the public debts of every
kind, Congress will be pleased to appoint some other man to be the
Superintendent of their Finances. I should be unworthy of the
confidence reposed in me by my fellow citizens, if I did not
explicitly declare, that I will never be the minister of injustice.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, February 26th, 1783.
Sir,
A number of those who have contracted engagements with me will, I
know, place a personal reliance on me for the fulfilment of them, As
the time approaches very fast when I am to quit this office, it is
proper for me to make the necessary preparations. Among these, I must
place the due and seasonable information, which as an honest man I
must convey to those who have confided in me. I am, therefore, to pray
that the injunction of secrecy, contained in the order of the 24th of
January last, may be taken off. At the same time, I take the liberty
to suggest to Congress, that the early appointment of my successor,
will give him opportunity to take such measures as may prevent many
inconveniences that might otherwise happen.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO GEORGE WASHINGTON.
Office of Finance, February 27th, 1783.
Sir,
I do myself the honor to enclose to you the copy of a letter to the
President of Congress, which was written on the 24th of last month. I
should have transmitted it to you on the next day, but contrary to my
expectations, Congress enjoined secrecy. I yesterday wrote a letter,
of which I also enclose a copy, and in consequence of it I am this
instant informed that the injunction of secrecy is taken off. I seize,
therefore, the earliest moment to give you the information.
I do assure you, Sir, that nothing would have induced me to take this
step, but a painful conviction that the situation of those to whom the
public are indebted is desperate. I believe, sincerely, that a great
majority of the members of Congress wish to do justice; but I as
sincerely believe that they will not adopt the necessary measures,
because they are afraid of offending their States. From my soul I pity
the army, and you, my Dear Sir, in particular, who must see and feel
for their distresses, without the power of relieving them.
I did flatter myself that I should have been able to procure for them
that justice to which they are entitled; and in the meantime, I
labored to make the situation as tolerable as circumstances would
permit. For the assistance which you have kindly afforded me, I pray
you to accept my thanks, and to be assured that I shall ever retain on
that account the most grateful emotions. My thanks are due also to all
our officers, for I know that unwearied pains have been taken to give
them disagreeable impressions, and I am, therefore, doubly indebted
for the just sentiments, which amid so many misrepresentations they
have constantly entertained. I hope my successor will be more
fortunate than I have been, and that our glorious revolution may be
crowned with those acts of justice, without which the greatest human
glory is but the shadow of a shade.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO WILLIAM CARMICHAEL, IN MADRID.
Office of Finance, March 4th, 1783.
Sir,
You will probably recollect that Mr Jay protested ten bills of
exchange, each for two hundred and twentyfive Mexican dollars, of
which the list is enclosed. These bills, with the addition of twenty
per cent damages, amount to two thousand seven hundred dollars, for
which I have this day signed a set of bills on you, which, to avoid
the dangers to which communication is liable, are extended to the
eighth bill. This draft is at six months' sight, and I am to desire
that you will honor it, and take your reimbursement on Mr Grand. The
length of sight may probably place it at a considerable discount on
the exchange of Madrid, and it is probable, also, that you may draw on
Mr Grand to advantage; if so, I conceive it would be best to have the
bill bought.
Draw on Mr Grand at the common usance, and close the transaction;
which I hope may be the last of the kind, which the American
government will be concerned in. An additional reason for suggesting
this is, that should this bill go through hands ignorant of the whole
transaction, it may give rise to conjectures, that the former practice
of drawing is about to be revived. I should have drawn on France or
paid in cash, but as the party is at Boston, and the rate of the
exchange unfixed, it is more conformable to mercantile usage to give a
new bill for the principal and damages.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, March 8th, 1783.
Sir,
I received yesterday afternoon a report, which is to be considered on
Monday the 10th instant, and with it I received an order to transmit
my observations. The shortness of the time obliges me to ask
indulgence for deficiencies or inaccuracies. I have always believed
that Congress were disposed to do _justice_ to the public creditors,
and I shall presume that the _power_ of Congress will be exerted for
that purpose.
There appear, therefore, two principal points to be considered.
I. What justice requires; and,
II. What Congress have power to do.
To the first I answer. _Justice requires that the debt be paid._ The
_principles_ of justice require that from a government, which a
_court_ of justice exacts from an individual. Government have no right
to oblige creditors to commute their debts for anything else. Any
revenues, therefore, to be pledged for the restoration of public
credit must be such, that money may be borrowed on them to pay those
to whom it is due; any plan which falls short of that object will not
do justice. And no plan will embrace that object unless it be such
that under it individuals would prefer government security to any
other. In our particular situation it appears clear, that such public
creditor has a complete right to demand his whole debt from Congress,
and to name the terms on which he will forego it, and that Congress
have a similar right in regard to the States.
In order to determine on the second question, viz. the _power_ of
Congress, we must resort to the confederation. By the eighth article
it will appear, that Congress have a right to determine on the sum to
be paid by the States, and the time of payment; and that this sum is
to be paid by the States in proportion to their respective value, or
an estimation to be made in the mode to be appointed by Congress. It
is, therefore, in the _power_ of Congress to call for payment of the
whole debt by any day; such for instance as the 1st of January; and to
have a valuation made some previous day; such for instance as the 1st
of September. _The right of Congress is perfect, and the duty to pay
absolute._ It appears necessary that this power be exerted in the most
_decisive form_, and that whatever _general plan_ of finance may be
adopted, the concurrence of each State in such plan should be admitted
_as an alternative_ for not paying her apportioned quota of the whole
debt. My reasons are these.
1st. It will not be believed, that Congress have no power to do
justice until the power which they have is exerted.
2dly. The public creditors have a right to expect that exertion.
3dly. Until it be made, a compliance with the demands of Congress will
be considered by the States as a matter of favor and not of right.
4thly. Congress having a right to the whole money, it follows that
they have the _exclusive_ right to name those precise terms on which
they will commute it.
5thly. Hence it follows that their plan, (be it what it may) must be
adopted by the States in all its parts, because none of them can have
a right to make amendments.
6thly. The objections heretofore raised against the impost will by
this means be totally done away, because each State may at its option
either comply with the general plan or pay her particular share of the
whole debt.
7thly. If the plan proposed as an alternative be adopted, it will from
the nature of the case be an express national compact between the
United States and each individual State. The revenue will have been
purchased by Congress and they will have a perfect right to insist on
their bargain.
8thly. The plans of Congress will by this means be greatly facilitated
in the States, because the arguments will apply to men's feelings, and
they will at once perceive, that it is better to give a permanent
revenue of six, than make immediate payment of a hundred. Every term
and condition in the plan will then be fair, because if the revenues
be such as in the judgment of the Legislature will fall too heavy on
their constituents, they can adopt others, borrow on their own
account, and pay in their share at the day named. So that the United
States will either receive the whole money, and pay all their debts,
or they will get solid revenues to fund the whole, or they will
receive a part and have such revenues for the remainder.
It also appears to me that our situation requires the utmost despatch,
and therefore I wish much that the days named should be shorter than
those above mentioned. The Act of the 17th of last month has been duly
forwarded to the several States, but there will be no impropriety in
taking a shorter mode of valuation for apportioning the debt, and
leaving the valuation by the Act of the 17th to apply to the yearly
apportionments subsequent to the last year. Various modes of making a
speedy valuation might be suggested; such for instance, as that
Congress should appoint a commissioner for each State, directing them
to meet at this place on the 1st of June and determine, that the
valuation made by the majority of those who do meet should be
conclusive. If such a line of conduct as this be pursued, those
suspicions as to the integrity of Congress, which ill designing men
have endeavored to raise must immediately cease. And if justice be not
done, public indignation will be pointed to the proper persons.
With respect to the alternative which may be proposed, I am sorry to
find that my ideas as to the objects of revenue have not met with the
approbation of Congress. I must be indulged in observing, that let the
revenues be what they may, it is indispensable that all the collectors
be appointed by the authority of the United States, and for the
following reasons.
1st. Experience has shown, that the taxes heretofore laid in the
States have not been collected.
2dly. It is evident from a consideration of their modes of taxation,
(which they are all very obstinately attached to,) that they never
will be punctually collected.
3dly. The punctuality in the payment of interest is essential to
public credit.
4thly. As Congress forego their right to insist on the principal, it
is but just that they should have every possible security for the
interest.
5thly. As the people are in either case to pay the supposed tax at
certain periods it must be a matter of indifference to what particular
man the payment is made.
6thly. The objection raised in favor of elected tax gatherers, viz.
that they consider the circumstances of the people, which is saying in
other words, that they are guilty of favor and partiality, is the
strongest reason why the collectors should be appointed by, and
amenable to, Congress.
7thly. It is a kind of absurdity in itself, that Congress should have
a right to the tax, and yet no right to send their servants to receive
it.
I pray leave also to observe, that the revenues must be co-existent
with the debt. No man in his senses will lend on any other terms. If
the revenue be only for a fixed period of time, no more can be
borrowed on it than the price of an annuity for such a time. And it
has already been observed, that money must be _borrowed_ to _pay_ the
public creditors, because they have a just right to their _money_.
Another observation on this subject I must take the liberty to
impress. The more clear, certain, permanent, and increasing the funds
are, the lower will be the interest at which money can be borrowed. If
the funds be very good, money may be borrowed at four per cent,
perhaps at three per cent. If they are not good it will not be
procured for less than six, seven, or eight per cent, and perhaps not
at all. Proper reflections on this subject will naturally suggest
themselves, and it will not be forgotten, that whether the debt be
less or greater, and whether the interest be higher or lower the
_people must pay all_.
With respect to the impost I conceive it to be justly exceptionable,
because that an estimation ad valorem is arbitrary, and the law ought
in all cases to be clear and explicit. The impost on prizes need not,
I should suppose, be asked for, because Congress may take measures for
the purpose themselves whenever the occasion requires. I conceive
also, that a tax might be laid on exports which, without being
burdensome, would still be productive. Enclosed is a list of rates,
which I take the liberty to submit. I cannot go into a written detail
of the reasons for them, because my time will not permit.
I am told that the principal objection to a land tax is the
inequality. To obviate this objection (although I cannot accede to the
force of it) perhaps a reduction of the sum from one dollar to a
quarter of a dollar per hundred acres might be expedient; and to
supply the deficiency, a tax on houses might be adopted, according to
the enclosed rate, which I also beg leave to submit.
I must take the liberty to declare my most serious apprehensions from
the existence of unsettled accounts among the States. Everything which
tends to create or continue them is fraught with ruinous consequences.
Keeping accounts of moneys paid by taxes of the States, and
liquidating those accounts by after settlements, will, I fear, prove
the source of much dissension. It will operate as heretofore in
preventing the States from paying anything. I would pray therefore to
submit to Congress the following mode of terminating all present
accounts, viz. that the whole sum paid or expended by each State, for
the public service from the commencement of the war, should be placed
to the credit of the particular State, and each draw interest on such
sum. By these means the whole account would be equitably settled in
the first instance. The States which are indebted on their own private
account, would be able to wipe off such debts by an assignment of
national stock. And on the first requisitions made by Congress for
current expenditures, each might make payment either in part, or
perhaps in the whole, by a discharge of so much of the debt. Thus a
degree of simplicity would be introduced into our affairs, and we
might avoid the horrors of intestine convulsions.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, March 8th, 1783.
Sir,
Very painful sensations are excited in my mind by your letter of the
27th of February. It is impossible for me to express to you the regret
with which I received the information it contains.
I have often reflected with much solicitude upon the disagreeableness
of your situation, and the negligence of the several States in not
enabling you to do that justice to the public creditors, which their
demands require. I wish the step you have taken may sound the claim to
their inmost souls, and rouse them to a just sense of their own
interest, honor and credit. But I must confess to you that I have my
fears, for as danger becomes further removed from them, their feelings
seem to be more callous to those noble sentiments, with which I could
wish to see them inspired. Mutual jealousies, local prejudices and
misapprehensions, have taken such deep root as will not easily be
removed.
Notwithstanding the embarrassments which you have experienced, I was
in hopes that you would have continued your efforts to the close of
the war at least; but if your resolutions are absolutely fixed, I
assure you I consider the event as one of the most unfortunate that
could have fallen upon the States, and most sincerely deprecate the
sad consequences which I fear will follow. The army, I am sure, at the
same time that they entertain the highest sense of your exertions,
will lament the step you are obliged to take as a most unfortunate
circumstance to them.
I am, &c.
GEORGE WASHINGTON.
* * * * *
TO THE PRESIDENT OF CONGRESS.[13]
Office of Finance, March 10th, 1783.
Sir,
In consequence of the order of Congress of the 18th of last month, I
do myself the honor to enclose an estimate of the principal of the
public debt to the first day of January, 1783, which has been
transmitted to me by the Register of the Treasury. This amounts to
_thirtyfive millions three hundred and twentyseven thousand seven
hundred and sixtynine dollars fiftythree and one eighth ninetieths_,
exclusive of what he calls the _unliquidated debt_, being the moneys
due to the several States and to individuals in the several States. I
beg leave also to mention other debts which have not been taken into
the Register's contemplation, namely, the _old continental bills_ and
_arrearages of half pay_. Congress will easily see that it is not in
the power of their servants to state the public debts with any
tolerable precision.
I have the honor to be, &c.
ROBERT MORRIS.
[13] _March 12th._ This morning arrived the ship Washington,
Captain Barney, with despatches from our Ministers in Paris, and
with six hundred thousand livres in cash, on account of the United
States, in consequence of my order in October last;--and this day
also appeared a virulent attack on my public and private
character, signed _Lucius_, in the Freeman's Journal, replete with
falsehoods.--_Diary._
* * * * *
TO MAJOR GENERAL GREENE.
Office of Finance, March 14th, 1783.
Sir,
I received the other day your letter of the 2d of February last, and
am very much obliged both by the pains you have taken, and the
sentiments you have expressed in favor of a department, which I shall
shortly be obliged to abandon. You will before this reaches you have
seen in the newspapers my letters of resignation. I shall not,
therefore, go into a detail of the reasons for taking that step, which
was as painful to me as you can easily conceive. But I had no
alternative. I saw clearly that while it was asserted on all hands,
our debts ought to be paid, no efficient measures would be adopted for
the purpose; no good plan agreed on. I felt the consequences of my
resignation on the public credit; I felt the probable derangement of
our affairs; I felt the difficulties my successor would have to
encounter, but still I felt that above all things it was a duty to be
honest. This first and highest principle has been obeyed. I do not
hold myself answerable for consequences. Those are to be attributed to
the opposers of just measures, let their rank and station be what they
may. I expect much obloquy for my conduct, because this is what I
knew to be the reward for any conduct whatever which is right. To
slander I am indifferent, and still more indifferent about the
attempts to question the services I have rendered, but I feel most
sensibly for your situation, and for that of every other officer.
The Congress have now, and have long since had under their
consideration, a due provision for the public debts; when they will
conclude it, and what it will be, God only knows. If it is such as in
my opinion will do justice, I shall stay somewhat longer in office to
know the decisions of the States, and if their proceedings are what on
such an occasion they ought to be, I shall spare no labor and regret
no time in completing the business, so that my successor may receive
it from my hands as clear and simple, as it was confused and
embarrassed when it was undertaken. But if these things do not happen,
you and every other good man will, I hope, acquit me for leaving a
post, in which I am totally unsupported, and where I must be daily the
witness to scenes of poignant anguish, and deep injustice without the
possibility of administering either relief or palliation. While I do
continue in office, rely on every support in my power, and always,
whether a public or a private man, believe in my esteem and affection.
I am, very respectfully, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, March 17th, 1783.
Sir,
I do myself the honor to enclose the copy of a letter of the 14th of
December last from Dr Franklin, and the translation of a letter of
the 15th instant, from the Chevalier de la Luzerne. These, together
with the letter of the 23d of December from Dr Franklin, of which I
have already submitted a copy, will I trust claim the attention of the
United States.