rendered to Congress of the state of my department; and to these let
me add what appears on their own minutes. On the 2d of May they
declared it to be their desire, when the reduction of the army should
take place, to enable the officers and soldiers to return to their
respective homes with convenience and satisfaction; _for which purpose
it would be indispensable to advance them a part of their pay_. They
declared further, that there were many other engagements for which the
public faith was pledged, and _the punctual performance of which was
essential to the credit of the United States_. And they further
declared, that _neither of these important objects could be effected
without the vigorous exertions of the several States in the collection
of taxes_. From a conviction of these facts Congress were pleased to
call upon the respective States in the most earnest manner, to forward
the collection of taxes. As an additional means to accomplish the same
end, they were pleased to apply for a further loan of three millions
of livres to his Most Christian Majesty. And they resolved, that the
Superintendent of Finance be directed to take the necessary
arrangements for carrying the views of Congress into execution. And
that he be assured of their firm support toward fulfilling the
engagements he has already taken, or may take, on the public account
during his continuance in office.
Having already so fully stated the situation of my department, I have
only to say in answer to the order I have received, that I rely on the
firm support of Congress, solemnly pledged to me (for the purpose of
inducing my continuance in office) to redeem those notes issued to the
army, as well as to fulfil all other engagements which I have taken or
may take on the public account.
Before I close this letter, I beg leave to assign my reason for
reducing my report to that form. It is because I had rather bear the
censure contained in the acts of the 11th of July, however painful,
than place on the minutes of Congress anything which may hold up the
idea of precipitancy on their part.
With perfect respect, &c.
ROBERT MORRIS.
* * * * *
TO MR GRAND.
Office of Finance, July 25th, 1783.
Sir,
I have received your letter of the 15th of April, covering a statement
of your accounts, by which it appears that my bills on you exceed the
sum which you will have to receive from the Court on this year's
subsidy. This circumstance gives me great pain, for it would be very
hard if after supporting our credit in Europe during the war, it
should be fatally ruined on the establishment of peace. You will have
learned by my former letters, that I had taken measures to throw into
your hands all the moneys, which I could by any means command for that
purpose. I am still in hopes, that the Court will make a further
effort in our favor, but at any rate if your payments should exceed
your funds, I must replace your advances by remittances from hence. I
hope that our affairs will soon take such a form, solidity and
establishment, as to render all things perfectly easy, and the
conclusion of the definitive treaty, which will enable us to reduce
our expenditures, added to the advantages of a general and lucrative
commerce, cannot fail of absorbing what few engagements may be at
present unprovided for. On the whole, my Dear Sir, I have only to say
my bills must be honored, and your zeal in favor of America must be
rewarded.
With sincere esteem, I am, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, July 28th, 1783.
Sir,
Conceiving it to be almost certain, that a definitive treaty of peace
is concluded, I am bound to request the attention of Congress towards
reducing the expenses. It is unnecessary to repeat, that our resources
for absorbing the anticipations, depend on the produce of taxation.
There is no hope of fulfilling the public engagements, but by a strict
economy, for there is no evidence of that energy among the States,
which the Act of Congress of the 2d of May was framed to inspire. Let
me, therefore, repeat my request, _that the public expenses be greatly
reduced_. The number of men which it may be necessary to keep in the
field, I cannot presume to name, as it is a military question; but it
would best consist with the present state of my department to disband
the whole.
Your Excellency will easily conceive the situation to which I am
driven when I am compelled to withhold assent to a moderate demand of
the Secretary at War, for building magazines to preserve the public
stores. It is certainly of importance, that arsenals should be erected
in such proper places as to provide for the public defence, but
reasons against advancing money are incontrovertible. Congress knew
the extent of my engagements, for the discharging of which they have
solemnly pledged themselves. Congress know also, that the States do
not furnish means. They will perceive, therefore, that I should
wantonly sacrifice their honor and dignity, should I form new
engagements before the old are satisfied.
I know, Sir, that many of the stores may be wasted and destroyed for
the want of magazines, and that if they are sold it will be to a
considerable loss. But much loss must be added to the mass of injuries
America has already sustained by not complying with the requisitions
of Congress. It is a loss, which in its consequences must fall upon
the States themselves, who are the immediate authors of it; but if the
engagements already taken are violated by applying money to other
purposes, then the honor of Congress will be sacrificed, together with
the property of those who relied on it.
I should not, Sir, have dwelt so long on this small circumstance, if
it did not serve to impress the true object of my letter, a _reduction
of national expense_. And here let me notice what has often been
mentioned, the expense of the civil list. If in this general term of
civil list are comprehended the public servants abroad, I freely
acknowledge my opinion, that it might be curtailed. But the foreign
affairs not being within my line, this sentiment is expressed with all
possible deference.
Our domestic civil list consists of two parts. First, that which is
engaged in settling and adjusting old accounts; and secondly, that
which is employed in present objects. The first is rendered necessary
by the confusions which arose before regular systems were established;
but it is of a temporary nature, and can never again take place,
unless our affairs are suffered to relapse into that irregularity from
which they are beginning to emerge. The second, I believe, consists of
as few as were ever appointed to perform the business of a nation. For
what relates to the expense of both, I must observe, that those who
labor for the public are at least to be subsisted; and the proof that
their salaries do not amount to more than a decent subsistence, is the
difficulty with which men qualified to fill the several offices can be
prevailed on to accept them. Shortly after my appointment, a special
order was passed to defray the expenses of the civil list; but should
Congress think proper to repeal that order, I will suspend the
payment, and apply the money to take up my notes. But whether the
gentlemen of the civil list will continue their services after they
know that their salaries are to be withheld, is a question which I
shall not agitate.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, July 28th, 1783.
Sir,
Having already transmitted the public accounts from the commencement
of my administration to the first day of this month, I shall not
trouble your Excellency with a repetition of them. But I must pray
your indulgence while I make a few observations. Perhaps this letter
may contain too much of egotism, but your candor will excuse me when
the motive is known. If I have rendered any services to the United
States, they have been derived from the generous confidence of my
countrymen. This confidence must not be abused, and if it be lost my
utility is at an end.
The accounts will show to any informed and reflecting mind, that the
public moneys were economically applied; and if farther proof were
necessary I could appeal to the honorable Delegates in Congress, who
have every opportunity of investigation. I might also appeal to the
clamors against me for opposing claims I could not properly comply
with. Long have I been the object of enmities derived from that
origin. I have, therefore, the right to consider such clamors and such
enmities as the confession and the evidence of my care and attention.
But, Sir, from the same accounts it will appear, that on the 30th day
of June last, my payments had exceeded the amount of my receipts by
more than a million of dollars. How, indeed, could it be otherwise,
when all the taxes brought into the treasury since 1781 did not amount
to seven hundred and fifty thousand dollars? I have been impelled to
this heavy anticipation by an earnest desire to relieve our army, by
the General's warm representations on the subject, and above all, by
the directions of Congress and their assurance of support. The
enclosed letter to them will show my desire to reduce our expenses.
But while I urge the reduction of expense it is equally my duty to
urge an increase of revenue. If I have been a faithful steward of what
was intrusted to me, if more became necessary than I ever received,
and if urged by that necessity I have anticipated the receipts, surely
I am in the strictest line of propriety when I loudly call for relief.
Every one must know, that the paper I have circulated will lose its
value, unless punctually redeemed. The several receivers are indeed
instructed to exchange it; but what can that instruction avail, if
specie be not placed in their hands for the purpose? And how can that
be effected but by a vigorous collection of taxes?
I know that my solicitude on this subject will be charged to improper
motives. When I urge a reduction of expense it will be said, that I
wish to impair the strength and lessen the respectability of our
country. Far other wishes swell my bosom. But I have been driven into
a conviction, that the necessity of strength, and the advantage of
reputation, are not yet sufficiently felt and understood by all the
members of our federal Union.
My present call for taxes has also been anticipated by a slanderous
report, that I have speculated on this very paper which I urge the
redemption of. Most solemnly I declare, that I have never been
concerned, directly or indirectly in any such speculation. If there be
a man in the world who knows any instance to disprove what I say, let
him step forth with the accusation. No, Sir, the object is in nowise a
personal one to me; I only advocate the interest and reputation of
America. If, with a view to injure me, the attempt is made to violate
my engagements, the malice will be defeated; but at the same time let
it be remembered, that the country, which will not support faithful
servants, can never be faithfully served. Guilt and desperation will
ever pant for scenes of tumult and disorder, office will ever excite
envy, and malevolence delight in slanderous tales. Is it then to be
wondered at if my foes are numerous? Believe me, Sir, if their
attempts had only affected me and mine, they should have been received
in the same silence, which has buried many other wrongs. But on the
present occasion, it becomes my duty to delineate their baneful
influence.
Pains are taken to cover with infamy all those who discount the public
paper. The natural effect of this measure is to prevent those men from
meddling with it, who, from a regard to their own reputation, would do
the business on moderate terms. Hence it follows, that the holders
cannot obtain so much for their paper as they otherwise might. Hence
again an additional clamor and of course an additional loss to the
possessors. On the basis of the depreciation is founded an argument to
prevent the redemption. By these means the public credit is totally
ruined, and the government becomes chargeable with flagrant injustice.
No future anticipations can be made to supply the most urgent wants;
and in the whole proceeding, they are made the victims, who confided
in the faith of government. The attempt, therefore, by this slander to
injure me is an injury to those, who have received my paper; and in
every instance where they have joined in propagating the report, they
have joined their enemies to plunder themselves.
Let me no longer intrude on your Excellency's patience, than to
declare my conviction, that the States might easily fulfil far more
extensive engagements than those which I have made on their account.
Notwithstanding every insinuation I will continue my efforts for the
purpose, and though base minds should reiterate their charges, I will
persist in my duty and defy their malice.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
REPORT TO CONGRESS RESPECTING TRANSFERABLE CERTIFICATES.
Office of Finance, July 31st, 1783.
The debts which have been found due to persons by settlements at the
Treasury Office, have not been evidenced by transferable certificates
for the following reasons.
1st. All such certificates have by experience been found to be only
another kind of paper money, continually depreciating both by increase
of quantity and defect of funds.
2dly. The consequence thereof is, that the same is daily brought into
fewer hands and for less value, by which one of two things must
happen, either that those few become very rich by their speculations,
or, that being defrauded they become clamorous against the government.
3dly. If the certificates are transferable in the manner proposed by
the motion, they are evidence of the debt as due to the bearer, and
therefore whether obtained by accident, force, or fraud, vest him with
a right, to the prejudice of the injured or unfortunate party.
4thly. Being, therefore, a precarious property, they become less
valuable from that circumstance.
5thly. When the original proprietors become divested of them, some of
the reasons in favor of revenues to redeem them lose their force, and
the advocates for just measures being lessened, the probability of
carrying them through is decreased.
6thly. While the evidence of such debts is in the treasury books and
the stock transferable there, the public debt becomes a property, the
object of purchase, instead of being as in the other case the means of
making purchases as money.
But if there be powerful reasons in favor of the motion, which have
escaped the Superintendent of Finance, he shall very readily comply
with such order as to the wisdom of Congress may seem meet.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, August 1st, 1783.
Sir,
I do myself the honor to enclose an account of payments, made by the
States to the receivers, until the 1st day of July last, and with it I
take the liberty also to enclose a note, containing nearly the
proportions, in which the States have paid their quotas of the
requisitions for 1782.[17]
[17] The proportions are as follows:
South Carolina 1-1
Rhode Island nearly 1-4
Pennsylvania above 1-5
Connecticut and}
New Jersey } each about 1-7
Massachusetts, about 1-8
Virginia about 1-12
New York and }
Maryland } each about 1-20
New Hampshire, about 1-121
North Carolina,}
Delaware and } nothing at all.
Georgia }
I take the liberty further to mention, that the State of South
Carolina has (by means of the supplies to the troops serving
there) paid the full amount of her quota for 1782, as I am
informed by the Receiver, whose accounts and vouchers (though
momently expected) are not yet come forward. The State of Georgia
has I believe contributed something in the same way, but if not,
the great ravages which she has endured will account for the
defect, without supposing any defect of inclination. As for the
other States, I pray leave to avoid any comments on the balances
of their accounts.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO MESSRS WILLINK & CO.
Office of Finance, August 6th, 1783.
Gentlemen,
I beg leave to acknowledge your favor of the 12th of April last,
which came to hand two days ago. From the letters I had already
written, and which I presume you will have received before this,
you will easily see how much pleasure I derive from the prospect
that your loan may speedily fill. Be assured, Gentlemen, that your
endeavors on this occasion shall not be forgotten; and rely on it
that you cannot render more acceptable service to the United
States.
My former letters contained the disposition of your funds so far
as to satisfy any demands which Mr Grand might have. These I
suppose have been complied with, and I expect, that not only the
sums which Mr Grand could possibly want must have come to your
hands before this letter can arrive, but that you will still have
a considerable balance.
Under these circumstances, the exchange on your city being now
high, and the disbandment of our army having increased my need of
money to make them a considerable payment, I have concluded to
draw on you to the amount of two hundred thousand florins, as
occasion may offer; and if exchange should not fall, nor any
advices arrive to prevent the measure, I may perhaps extend my
drafts on you to five hundred thousand florins. But as it might
happen, notwithstanding my opinions, that you should not be
considerably in cash beyond Mr Grand's demands, I have determined
on these two points; first, that I will not precipitate my sales
here, but only dispose of bills as occasion may require; and
secondly, that I will draw at ninety days' sight, because the
demand for bills is such, that a difference in the sight will make
none in the price. By these means it will happen, Gentlemen, that
even if you are not in cash when the bills arrive, you can have no
difficulty as to the acceptance, because the natural progress of
the loan must put you in possession of money before they can fall
due. And this is the more to be expected, as some of the tobacco
will doubtless have arrived, which cannot but give a weight and
solidity to your negotiations. If however these things should not
so happen, you will, I expect, pay the bills at any rate, and for
any excess beyond your immediate funds you will charge an interest
to the United States. On the other hand, if it should happen
according to my expectations, that you have unappropriated money
in your hands when the bills are presented, I am then to request
that you will pay them at sight, if agreeable to the parties,
deducting the usual discount for prompt payment, which you will be
so kind as to credit to the United States.
With every wish for your success and prosperity, I have the honor
to be, &c.
ROBERT MORRIS.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, August 6th, 1783.
Sir,
I thank you for the communication, which you have been pleased to
make to me under the 11th of July. It was handed to me on my
return last evening from a tour ---- have been making to the
northward and westward, as far as Crown Point and Fort Schuyler,
to view the posts and country in that part of the United States'
territory.
The anticipations you have been obliged to make are indeed great,
and your circular letter to the States on the occasion appears to
me sufficient, if anything of the kind can be so, to arouse their
attention to the necessity of your circumstances. I most sincerely
wish it may have the desired effect.
In consequence of my tour to the northward, the Quarter Master
General, will have my orders to prepare batteaux and other means
of transportation to the upper posts, of the cannon, stores and
provisions, which will be absolutely necessary for possessing and
maintaining them. To effect this money will be necessary, and I
give you this information, that a demand will probably be made on
you for the purpose.
The State of New York, which is deeply interested in the security
of these posts, and effecting this business, may perhaps be
prevailed on to furnish the necessary sums to be placed to general
accounts. This will probably exert itself in this case preferably
to any other. I give you this hint, and leave its improvement to
you.
Knowing your situation, I am pained when necessity obliges me to
make any application for money. But this purpose is of so great
importance to the interests of the United States, and of so urgent
necessity, that if the sums required cannot be obtained in the way
I have hinted, I must entreat you to give every assistance to
Colonel Pickering that shall be necessary.
I am, &c.
GEORGE WASHINGTON.
* * * * *
TO GEORGE WASHINGTON.
Office of Finance, August 12th, 1783.
Sir,
I have received your Excellency's favor of the 6th instant. I am
always happy to hear from you, although I confess that every new
demand for money makes me shudder. Your recommendations will
always meet my utmost attention, because I am persuaded that you
have equally with me the desire to husband and enlarge our
resources. Your perfect knowledge of our political and military
situation must decide on the measures to be pursued, and I am
persuaded, that your advice to Congress on these subjects will be
equally directed to the safety, the honor, and the interests of
the United States.
With very sincere esteem, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PAY MASTER GENERAL.
Office of Finance, August 12th, 1783.
Sir,
I am to acknowledge the receipt of your favor of the 6th instant,
containing two questions. To the first of these I answer, that my
anticipations amount to a very large sum, that it will employ all
my resources to honor engagements already taken; that of
consequence I cannot see my way clear to form new ones, and that
if I did, the groundless and injurious clamors, which have been
raised on this subject, would prevent me. It becomes impossible to
serve a people who convert everything into a ground for calumny.
The existence of the republic, since the conclusion of a peace,
no longer depends upon extraordinary sacrifices and exertions. My
desire to relieve the army has been greatly cooled, from the
information, that many of them have joined in the reproaches I
have incurred for their benefit. And the necessity I feel of
quitting (at the earliest possible moment) an office of incessant
labor and anxiety, whose only reward is obloquy, will not permit
me even to think of any farther anticipations.
The second question in your letter is foreign to my department; a
question, which you have as many materials to judge upon as I
have, and which you are particularly authorised to decide.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO ELBRIDGE GERRY.
Office of Finance, August 26th, 1783.
Sir,
In compliance with your request, I shall not only give the
information which appears to have been the object of Mr Clarke's
letter, but recapitulate also the observations which I had the
honor to make on what you mentioned as the object of the
committee. And first, for the information desired, I can answer
only in general terms, that I believe the various engagements
entered into previous to the end of 1781, were under the faith of
requisitions then existing. Since that period, I know of only two
requisitions for current service, both of them founded on
estimates. The first was of eight millions for the service of
1782, and the second was of two millions, for part of the service
of 1783. All the engagements of my administration are on the faith
of these latter requisitions.