Count de Vergennes' letters, from which as well as from those of Dr
Franklin and from other circumstances, I consider it as certain that
we are to expect no further pecuniary aid from Europe. So late as on
the 9th of December last, the loan in Holland had not amounted to
eighteen hundred thousand florins, and after the deduction of the
charges on it, there were not above seventeen hundred thousand at my
disposal. From the month of June to the 9th of December this loan had
not increased half a million of florins, so that the most sanguine
expectation will not carry it beyond two millions out of the five for
which it was opened.
Congress will recollect, that on the 14th of September last they
ordered a loan of four millions of dollars in Europe, for the service
of 1783, in addition to this loan, which Mr Adams had opened in
Holland. They will also recollect, that I had anticipated upon those
resources about three and a half millions of livres during the year
1782. And that this anticipation was over and above the sum of a
million and a half of florins, which we then knew to have been
borrowed in Holland. Allowing, therefore, for the supposed increase of
half a million of florins or a million of livres, there will still
remain of anticipation two and a half millions of livres; so that of
the sum lent for this year by his Most Christian Majesty there will
remain but three millions and a half of livres. According to the
common course of exchange, this sum cannot be expected to yield more
than six hundred thousand dollars. Six hundred thousand dollars,
therefore, with what the States will yield in taxes, form the whole of
our expectations for the current year. From this is to be deducted one
month's pay already promised to the army, amounting by estimate to
upwards of two hundred and fifty thousand dollars.
To judge of our prospects for what remains, Congress will be pleased
to observe, that the subsistence of our officers is nearly twenty
thousand dollars, that the rations issued in New York and New Jersey
are about fifty thousand dollars, and that the rations of the southern
army will probably amount to upwards of twelve thousand dollars. If to
this be added the various detached corps, it will be found, that the
articles of rations and subsistence, exclusive of the prisoners, will
form an amount of about ninety thousand dollars a month. My
anticipations on the taxes are so well known, that it is not necessary
to mention them any more than the other objects of forage, &c. which
are indispensable. I have gone into these few details merely to
elucidate one position, viz. that _all the money now at our command,
and which we may expect from the States for this two months to come,
will not do more than satisfy the various engagements, which will by
that time have fallen due_.
It is of importance that Congress should know their true situation,
and therefore I could wish, that a committee were appointed to confer
with the Minister of France. My reason for that wish is, that every
member of Congress may have the same conviction, which I feel of one
important fact. _That there is no hope of any further pecuniary aid
from Europe._ The conduct of the French Court on the subject has been
decisive. Some persons have indeed flattered themselves, that her
positive declarations were merely calculated to restrain our rashness
and moderate our excess, but these ideas can no longer have place in
any sound and discerning mind. Her conduct has been consistent with
her declarations, and if she had ever so much inclination to assist us
with money _it is not in her power_.
But whatever may be the ability of nations or individuals, we can have
no right to hope, much less to expect the aid of others, while we show
so much unwillingness to help ourselves. It can no longer be a doubt
to Congress, _that our public credit is gone_. It was very easy to
foresee that this would be the case, and it was my particular duty to
predict it. This has been done repeatedly. I claim no merit from the
prediction, because a man must be naturally or wilfully blind who
could not see, _that credit cannot long be supported without funds_.
From what has already been said, Congress will clearly perceive the
necessity of further resources. What means they shall adopt, it is in
their wisdom to consider. They cannot borrow, and the States will not
pay. _The thing has happened which was expected._ I cannot presume to
advise. Congress well knew that I never pretended to any extraordinary
knowledge of finance, and that my deficiencies on this subject were a
principal reason for declining the office. I have since had reason to
be still more convinced of my incompetency, because the plans which I
did suggest have not met with approbation. I hope, therefore, that
some abler mind will point out the means to save our country from
ruin.
I do assure you, Sir, that it is extremely painful to me to be
obliged to address Congress on this subject. I wish most sincerely,
that I could look at our future prospects with the same indifference,
that others have brought themselves to regard them. Perhaps I am not
sufficiently sanguine. It is common for age to listen more to the
voice of experience than youth is inclined. The voice of experience
foretold these evils long since. There was a time when we might have
obviated them, but I fear that precious moment is passed.
Before I conclude this letter, I must observe on the misconstructions,
which men, totally ignorant of our affairs, have put on that conduct,
which severe necessity compelled me to pursue. Such men, affecting an
intimate knowledge of things, have charged the destruction of public
credit to me, and interpreted the terms of my resignation into
reflections upon Congress. I hope, Sir, that so long as I have the
honor to serve the United States, I shall feel a proper contempt for
all such insinuations. I shall confidently repose myself on the candor
of Congress. It is for them to judge of my conduct on full and
intimate knowledge. Writers for a newspaper may, indeed, through the
medium of misrepresentation, pervert the public opinion, but the
official conduct of your servants is not amenable to that tribunal. I
hope, however, to be excused for observing, that on the day in which I
was publicly charged with ruining your credit, those despatches
arrived from Europe, which tell you it was already at an end. The
circumstances which I alluded to in my letter of resignation, were not
yet known in Europe. It was not yet known that Rhode Island had
unanimously refused to pass the impost law, and that Virginia had
repealed it. The very delays, which the measures of Congress had met
with, were sufficient to sap the foundations of their credit. And we
now know that they have had that effect. When those circumstances,
therefore, shall be known, it must be overturned. I saw this clearly,
and I knew that until some plain and rational system should be adopted
and acceded to, the business of this office would be a business of
expedient and chicane. I have neither the talents nor the disposition
to engage in such business, and, therefore, I prayed to be dismissed.
I beg pardon, Sir, for this slight digression. I shall trespass no
longer on your patience, than to assure you of the veneration and
respect, with which I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE RECEIVERS OF CONTINENTAL TAXES IN THE SEVERAL STATES.
Office of Finance, April 7th, 1783.
Sir,
I enclose you an account of the public receipts and expenditures from
the commencement of my administration to the close of last year. While
in compliance with what I conceive to be the duty of those intrusted
with expenditures of public money, I publish these accounts, I cannot
but blush to see the shameful deficiency of the States. You will, I
hope, take occasion to make the proper remarks, and, indeed, it were
to be wished that some able writers would rouse the attention of your
Legislature to our situation. Surely the pride and good sense of the
people will combine in stimulating them to exert themselves, so as to
stand on their own feet, and not owe a support to the precarious
bounty of foreign powers.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, April 7th, 1783.
Sir,
I do myself the honor to enclose for your Excellency's perusal, and
the consideration of your Legislature, a statement of receipts and
expenditures for the years 1781 and 1782, so far as the same have
fallen under my administration. You will also find enclosed, the
general accounts of receipts from the States, and subsequent payments
into the treasury for the last year, together with the particular
account of your State for that period. I shall not trouble your
Excellency with any comments on these accounts.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO A COMMITTEE OF CONGRESS.
Office of Finance, April 14th, 1783.
Gentlemen,
Since the conference I had the honor to hold with you on the 9th
instant, my mind has been continually occupied on the important
subject to which it relates. My feelings are strongly excited by what
I wish for the public, and by what I apprehend, both for them and for
myself.
The two points, which relate to my department, are the settlement of
accounts and advance of pay. With respect to the first, it is now
going on in a satisfactory manner, and will be as speedily
accomplished as can reasonably be expected. The arrangements taken on
that subject are of such a nature, that I conceive the disbanding of
the army need not be delayed until the settlement is completed,
because the proper officers may be kept together, although the men be
dismissed. The amount of three month's pay, which is stated by the
General to be _indispensable_, is, according to the estimate, seven
hundred and fifty thousand dollars. From what I have already stated to
Congress, it will appear that the reliance for a great part of this
sum, must be on the sales of public property and the taxes. Neither of
these sources can produce much immediately, and from the latter there
is but little hope at all, unless something can be done to stimulate
the exertions of the States.
The receipts being regularly published, I am spared the necessity of
disagreeable observations on that topic. To supply so large a sum as
is required is utterly impracticable, or, indeed, to obtain any very
considerable part. The most, therefore, which can be done, is to risk
a large paper anticipation. This is an operation of great delicacy,
and it is essential to the success of it, that my credit should be
staked for the redemption. Do not imagine, Gentlemen, that this
declaration is dictated by vanity; it becomes my duty to mention
truth. I had rather it had fallen from any other person, and I had
much rather it did not exist. In issuing my notes to the required
amount, it would be necessary that I should give an express assurance
of payment, and in so doing, I should be answerable personally for
about half a million, when I leave this office, and depend on the
arrangements of those who come after me to save me from ruin. I am
willing to risk as much for this country as any man in America, but it
cannot be expected that I should put myself in so desperate a
situation. To render the arrangements, which that advance would
require, effectual in an official point of view, would be a work of
time, and the period of my official existence is nearly arrived.
Disbanding the army in a manner satisfactory to them and to the
country, is doubly desirable, and although extremely difficult, is I
believe practicable. I shall be very ready at all times, Gentlemen, to
give my advice and assistance to those who may be charged with that
delicate and perilous undertaking, and I would go as far to effect it
myself as any reasonable man could require. But though I would
sacrifice much of my property, yet I cannot risk my reputation as a
man of integrity, nor expose myself to absolute ruin.
I am, Gentlemen, with perfect respect, &c.
ROBERT MORRIS.
* * * * *
TO ALEXANDER HAMILTON.
Office of Finance, April 16th, 1783.
Sir,
I have been duly honored with the receipt of your favor of the 15th
instant. I accepted the Marine Agency, simply with a view to save the
expense of the department; but whenever a Marine is to be established
a previous point would be (in my opinion) to nominate a Minister of
Marine, and let his first work be the forming of those plans and
systems, which when adopted by Congress, he would have to execute. For
my own part, were my abilities equal to this task, my leisure would
not permit the attempt.
With respect to the finances, I am of opinion, that as we cannot
increase our revenue, we must do all we can to lessen our
expenditures, and that, therefore, we should take off every expense
not absolutely necessary as soon as possible.
On the subject of the coin, I hope soon to make a communication to
Congress, which, if approved of by them, will complete the business.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, April 23d, 1783.
Sir,
On the 21st of February, 1782, Congress were pleased to approve of the
establishment of a mint, and to direct the Superintendent of Finance
to prepare and report a plan for conducting it. This matter has been
delayed by various circumstances until the present moment. I now
enclose specimens of a coin, with a view that if Congress should think
proper to appoint a committee on the subject, I may have the honor of
conferring with them, and explaining my ideas of the plan for
establishing and conducting a mint. Such plan when reported by a
committee, will more probably meet the ideas of Congress than any
which I might prepare.
I have the honor to be, &c.
ROBERT MORRIS.[14]
[14] _April 29th._ This morning when I received the book from the
office of the Secretary of Congress, in which the Acts of Congress
that respect this department are entered every day, I perceived
that the committee who had conferred with me respecting my
continuance in office after the last day of next month had not
reported the whole of the conversation which passed, and that the
report as entered on the Journals of Congress, mistakes the sense
of what passed on my part. I, therefore, wrote a note to Mr
Osgood, informing the committee that they had misconstrued my
sentiments. He soon called, and upon my repeating some material
parts of the conversation, he acknowledged they had been omitted.
I requested him to call the committee together again, but he said
they had made their report, and are dissolved, but he would
immediately return to Congress, have my note to him read, and move
to have the report of the committee expunged from the Journals.
_Diary._
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 1st, 1783.
Sir,
When I saw the journal of the 28th of last month, I was surprised to
find that the report of the honorable committee appointed to confer
with me relative to my continuance in office, did not contain those
ideas, which I had endeavored to convey. I immediately wrote a note to
the chairman mentioning "that the committee had misapprehended the
conference on my part." When the conversation passed, I had no
expectation of seeing it introduced into the report, or I should
certainly have asked permission to deliver my sentiments in writing.
I am placed, Sir, in a very painful situation and must therefore
entreat your indulgent interpretation of what I am compelled to say. I
had the honor of two conferences with the committee, and in the
mornings after those conferences, respectively, made short minutes of
what had passed. It is my custom to make such minutes with respect to
most of my transactions, and as they were originally intended merely
to aid my own memory, they are not very minute or particular. Those to
which I now refer are contained in the following words;
_April 22d, 1783._ "The honorable Mr Osgood, Mr Bland, Mr Peters, Mr
Madison, and Mr Hamilton, a committee of Congress appointed to confer
with me respecting my continuance in office. I told them that a letter
from Mr Grand, gave a new complexion to our affairs in Europe, and
that a frigate being just arrived in a short passage from France I
expect further advices, which I am desirous of seeing before I enter
into this conference. I stated the difficulty of fulfilling
engagements, and the danger of taking any new ones."
_April 24th, 1783._ "The committee of Congress called this morning, in
consequence of Mr G. Morris having told Mr Osgood, that he imagined I
was ready for a conference with them. I told the committee that my
mind had been constantly occupied on the subject, from the time they
first called until the present moment. That I see and feel the
necessity and propriety of dismissing the army among their fellow
citizens, satisfied and contented; that I dread the consequences of
sending them into civil life, with murmurs and complaints in their
mouths; and that no man can be better disposed than I am to satisfy
the army, or more desirous of serving our country, but that my own
affairs call loudly for my care and attention. However, having already
engaged in this business, and willing to oblige Congress if they think
my assistance essential, I will consent to remain in office for the
purpose of such payment to the army, as may be agreed on as necessary
to disband them with their own consent, &c. But prayed of Congress to
excuse me from even this service if they can accomplish their views in
such other way as they may approve."
These, Sir, are exact copies of my minutes on the subject, and
although they were hastily drawn, yet I can safely appeal to the
committee to declare, whether they do not contain what really passed,
and also whether I did not (in reply to a question put to me by one
of the members) say, that I expected, if Congress should ask me to
continue in office, they would confine their request to the effecting
that particular object of satisfying the army, and would distinguish
it from anything, which might be construed into an approbation of
their plan for funding the public debts.
I hope, Sir, that Congress will excuse me for picturing the situation
I was in, and the feelings which arose out of it. By the Act of the
7th of February, 1781, it was declared to be the duty of the
Superintendent of Finance, "to digest and report plans for improving
and regulating the finances." Congress well know, that I have from
time to time attempted the performance of this duty, and they know
also, that such plans have not met with their approbation. The clear
inference is, what I have already declared both previously and
subsequently to my appointment, that my abilities are unequal to the
task I am called to perform. If, therefore, Congress would at any time
have made a new appointment, I should have considered it as the
greatest favor. But since they saw fit to continue me in office, I
prepared the best plans which I could devise, and finding they were
not agreeable to the ideas of Congress, I waited for the adoption of
such as might be suggested from some other quarter, or originated
among themselves. I patiently, but anxiously waited until the 24th of
January last; but then a clear view of those circumstances, which have
since followed, compelled me to request they would appoint some other
man to be the Superintendent of their Finances, if effectual measures
were not taken by the end of May, to make permanent provision for the
public debts of every kind. On the 26th of February, finding that no
successor was yet appointed, and that the plans of Congress were not
yet completed, I requested leave _to give due and seasonable
information of my removal to those who had confided in me_. By this
means I became pledged to the world, not to continue in office after
the end of May, unless such measures as I conceived to be effectual,
should be taken before that period, to provide for the public debts.
On the 7th of March, I received the report of a committee on the
finances, with orders to transmit my observations. These are contained
in a letter of the 8th. On the 9th day of April, (no plan being yet
adopted) a committee called on me to know, whether three months' pay
could be advanced to the army. I stated to them the incapacity of the
public treasury to complete in any short period the one month's pay
already promised, as also the great anticipations made on the public
revenue. And on the 14th, in a letter recapitulating the hazardous
situation of things, I informed them that I believed the object they
had in view was practicable by means of a large paper anticipation. On
the 18th the plan was adopted for funding the public debts.
It was under these circumstances, Sir, that I held the conferences now
immediately in question. It was my most earnest desire to be dismissed
from office, and I stood pledged for it to the public. But a
circumstance of peculiar nature, which had not been foreseen, now
presented itself. That army to whom we were indebted for our national
existence was to be disbanded, either in extreme misery, or with some
little relief. Every principle of justice and gratitude called loudly
to administer it; but this could not be done without entering into
engagements beyond our resources. The dictates of prudence would,
indeed, have determined me to adhere inflexibly to the resolution
expressed in my letter of the 24th of January. By so doing I hazarded
nothing. And as far as my own reputation was concerned, I could have
placed it in security. For I must be permitted to say, that if solid
arrangements had been taken to establish national credit, four times
the required sum might have been easily obtained. No evils, therefore,
had arisen, which I had not predicted, and none which it was possible
for me to guard against.
But, Sir, my conduct was not influenced either by personal or
prudential motives. A sense of the situation to which Congress were
reduced, an earnest desire to support their dignity and authority, a
grateful regard to our fellow citizens in arms, mingled with respect
for their sufferings and virtues. These sentiments, Sir, decided my
opinion. I agreed for your sakes and for theirs to enter into a
labyrinth, of which I did not then, nor do I now see the termination.
But I could not do this, except under conditions and limitations. The
conditions were, that Congress should ask my continuance, and pledge
themselves for my support; the limitations, that the objects of my
continuance should be accurately expressed, and that it should be
confined to the fulfilment of such engagements, as those objects might
require. These terms were expressed to the committee, and I am sure
they will do me the justice to acknowledge that they were so. Whether
they were reasonable, and whether they have been complied with, form
questions of some importance.
It may be suggested, that asking my continuance would derogate from
the dignity of Congress. How far this observation is founded, will
appear from a resolution of the 21st of December last. It was not a
new thing to make such requests, nor was the practice obsolete, yet I
should not have desired anything more particular on this subject than
has been done in the Act of the 28th of April, although far short of
what other persons have received. But surely it will be admitted, that
I had a right to expect Congress would pledge themselves for my
support when I entered into such deep engagements for theirs. Whether
the limitation of my continuance in the manner just mentioned was
proper, will appear from considering whether it consisted with the
dignity of Congress to procure my tacit approbation of their system
for funding the public debts; a system widely different from ideas,
which I had expressed on a variety of occasions, and in the most
pointed manner. Surely, Sir, it was not kind to place me in a
situation where I must appear either to refuse the performance of an
important public service, or to break the most solemn engagements and
contradict the most express declarations. I might dwell much on this
question, but the delicacy of Congress will render it unnecessary.