American than in French or British bottoms. I will not trouble you
with the reasons, but you may rely on the fact. The price of the
produce of any country must materially depend on the cheapness of
subsistence. The price at which that produce can be vended abroad
must depend on the facility of conveyance. Now admitting for a
moment (which by the by is not true) that France might, by
something like a British navigation act, increase her ships and
her seamen; these things would necessarily follow. 1st. Her
Islands would be less wealthy, and therefore less able to consume
and pay for her manufactures. 2dly. The produce of those Islands
would be less cheap, and therefore less able to sustain the weight
of duties, and support a competition in foreign markets. 3dly. The
commerce with this country would be greatly lessened, because that
every American ship, which finds herself in a French, English, or
other port, will naturally seek a freight there, rather than go
elsewhere to look for it; because in many commodities the
difference of price in different parts will not compensate the
time and cost of going from place to place to look after them. To
these principal reasons might be added many others of less weight,
though not of little influence, such as the probable increase of
commercial intercourse, by increasing the connexions and
acquaintances of individuals. To this and to everything else which
can be said on the subject by an American, I know there is one
short answer always ready, viz. that we seek to increase our own
wealth. So far from denying that this is among my motives, I place
it as the foremost, and setting aside that gratitude which I feel
for France, I do not scruple to declare, that a regard to the
interests of America is, with respect to all nations of the world,
my political compass. But the different nations of Europe should
consider, that in proportion to the wealth of this country will
be her ability to pay for those commodities, which all of them are
pressing us to buy.
Our people still continue as remiss as ever in the payment of
taxes. Much of this, as you justly observe, arises from the
difficulties of collection. But those difficulties are much owing
to an ignorance of proper modes, and an unwillingness to adopt
them. In short, though all are content to acknowledge, that there
is a certain burden of taxation which ought to be borne, yet each
is desirous of shifting it from his own shoulders to those of his
neighbors. Time will, I hope, produce a remedy to the evils under
which we labor, but it may also increase them.
Your applications to the Court for aid are certainly well
calculated to obtain it; but I am not much surprised at your ill
success. Indeed I should have been much surprised if you had been
more fortunate. Of all men I was placed in the situation to take
the deepest concern in the event, but I cannot disapprove of the
refusal, for we certainly ought to do more for ourselves before we
ask the aid of others. Copies of your letters to the Court were
laid before Congress, and also the copy of the new contract. I
will enclose with this a further copy of the ratification of the
old, if I can obtain it in season from Princeton, where the
Congress now are.
I have written also on the subject of the debt due to the
Farmers-General, and should Congress give me any orders about it,
I shall attend carefully to the execution. The conduct they have
maintained with regard to us has been generous, and will demand a
return of gratitude as well as of justice. This I hope my
countrymen will always be disposed to pay. I shall take some
proper opportunity of writing to the Farmers-General, but will
wait a while to know what may be the determination of Congress on
their affairs.
It gives me much pleasure to find, that by the proposed
establishment of packets, we shall shortly be in a condition to
maintain more regular and connected correspondence; for although I
shall not myself be much longer in public office, I feel for those
who are or will be charged with the affairs of our country, both
at home and abroad. It will naturally occur, however, that a good
cypher must be made use of not unfrequently, when despatches are
trusted to foreigners. They have no regard either to propriety or
even decency where letters are concerned.
With very sincere esteem and respect, &c.
ROBERT MORRIS.
* * * * *
TO ARTHUR LEE.
Office of Finance, October 4th, 1783.
Sir,
I have received your letter of the 26th of last month, desiring
information as to the reality of a contract with, and instructions
to Mr Deane. Enclosed you have a copy of the contract mentioned.
The instructions to Mr Deane are, I presume, in the Office of
Foreign Affairs.
The facts under this contract are generally as follows, so far as
my knowledge extends. Money was advanced to me, which I expended
in shipment of cargoes from the Delaware and Chesapeake, and have
long since accounted for. Money was also advanced to Messrs Lewis,
Livingston and Alsop, and, I believe, expended by some or one of
them in shipments from New York and Connecticut, but the accounts
are not yet closed; which is one among many reasons why a
commissioner should be appointed or authorised to settle the
accounts of the secret and commercial committees.
Of the several shipments made, some arrived, some were taken, some
were detained by the enemy's naval power. The risks becoming
great, it was thought most adviseable to abandon the farther
prosecution of the plan; which the parties to the contract, then
in this country, cheerfully consented to, and it was determined
that the proceeds of those shipments, which might have arrived,
should be carried into the general public accounts. Mr Deane went
to Europe under this contract; and being unable, from the
remittances sent, to complete the intentions of his voyage, has, I
believe, carried the amount of those remittances into his general
accounts with the United States. These accounts are among those
which Mr Barclay is appointed to settle, and I presume that no
allowance will be made, such as claimed by Mr Deane, until he
shall have produced the contract and instructions to which he
refers for support of his claim; nor then, unless very completely
supported or specially allowed by Congress.
I believe Mr Barclay is now employed in making that adjustment,
and I suppose, that after he shall have gone through Mr Deane's
accounts, admitted such charges as ought clearly to be admitted,
and rejected such as ought clearly to be rejected, there will
remain some articles on which he will apply to Congress for their
special decision; in which case he will naturally transmit all the
evidence which Mr Deane may have exhibited.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, October 15th, 1783.
Sir,
I had the honor to receive your Excellency's letter of the 11th
instant. If a settlement of the accounts which arose before the
commencement of my administration had depended on me, neither M.
Holker nor any other person should have had cause of complaint.
The perplexed situation of those accounts rendered it necessary
for Congress to submit them to the investigation of special
commissioners, who have but lately commenced their operations. I
shall immediately transmit a copy of your Excellency's letter to
the gentleman who may be charged with those accounts in which M.
Holker is concerned, and request his attention to the subject.
That any person should suppose the apprehension of being taxed
with favor to an individual, would induce me to delay the justice
due alike to all, is so extraordinary, that your Excellency must
permit me to express my surprise at meeting the idea in a letter
from the King's Minister.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO MESSRS WILLINK & CO.
Office of Finance, October 23d, 1783.
Gentlemen,
Upon taking a view of my various engagements for the public
service, and considering the great anticipations, which have been
made at the period when our brave army quitted the field, it has
appeared to me, that the sum of about three hundred thousand
dollars would be necessary for me over and above the probable
produce of our taxes, to clear off all those engagements, and
enable me to lay down the burdens of official life in a consistent
and proper manner, should the situation of public affairs then
admit of it. This circumstance, however nearly it interests my
personal feelings, is still more interesting to my country;
because a regular and punctual performance of engagements, while
it establishes confidence, ensures the means of future punctuality.
Revolving much on this subject in my own mind, I have been led to
consider also, that the present rate of exchange, which is very
favorable, may not continue when tobacco, rice, indigo, and the
other produce of the southern States shall be freely exported in
remittances to Europe. And if the exchange should lower, there
will be a loss on the bills of the United States, which I would
always wish to prevent. Besides this there is another important
circumstance, which is, that if the drafts are suspended until
notice of the success of your loan, so as to lodge the money, the
public will be paying interest, both here and in Europe for the
same sum; which ought, you know, as much as possible to be
avoided.
Under these different impressions, the natural conduct would have
been, to vend my bills very boldly, and trust to the success of
those exertions, which you will undoubtedly make. But here it was
proper to consider, that if unforeseen circumstances should in any
manner have put a check upon your operations, the consequence
might have been a very great inconvenience, and perhaps injury to
you, which I would always wish to avoid, together with a loss of
credit, coupled with the payment of heavy damages to the United
States.
I have therefore adopted a middle line of conduct, which will
combine the advantages and avoid the inconveniences, both of delay
and of precipitation. I have drawn three sets of exchange, all
dated on the 21st instant, (the time when they were drawn) and
each for two hundred and fifty thousand current guilders, payable
at one hundred and fifty days' sight. These bills are numbered one
hundred and ninetyone, one hundred and ninetytwo, and one hundred
and ninetythree; the first in favor of John Ross, the second in
favor of Peter Whiteside & Co., and the third in favor of Isaac
Hazelhurst. All these are solid houses, upon whose fidelity and
punctuality I can place equal dependence. I have taken from them
proper stipulations to pay at the end of one hundred and twenty
days, each one hundred thousand dollars; by which means I have
secured the immediate vent of that sum at the very highest
exchange. And it is further agreed between us, that in case of
protest, (which God forbid should happen) the public shall not be
charged with damages; the necessary consequence of which is, that
the bills will not be negotiated further than to place the amount
in the hands of their friends, which is indeed fully understood
between us. You will see also, that in this mode I shall bring to
the public use here (allowing about two months for the bills to be
presented) the sum of three hundred thousand dollars, near three
months before it is paid by you.
From this explanation, which I have entered into in order to show
you the full grounds of my procedure, because I knew how much more
satisfactorily business is conducted when all circumstances are
known, you will perceive that my bills already advised of, are
first to meet due honor, and consequently funds set apart for
their absolvement. These three new bills then come in their
course, and I must entreat you, Gentlemen, to honor them also,
even if you have not the funds, provided a view of fair prospects
can render it at all consistent with that prudence, which must
doubtlessly influence you in such important concerns. I must also
request, that you will give me, by various conveyances, the most
immediate notice of your acceptance, because I shall from that
moment be able, by discount, to bring the securities given by
those gentlemen into operation.
I am, Sir, with perfect respect, &c.
ROBERT MORRIS.
* * * * *
TO THE FARMERS-GENERAL OF FRANCE.
Office of Finance, November 4th, 1783.
Gentlemen,
The Honorable Minister Plenipotentiary of the United States of
America to the Court of Versailles, having done me the honor to
transmit a copy of your letter to him of the 17th of July last, I
took the earliest opportunity after the receipt of it, to submit
that business to the consideration of Congress; who by their Act
of the 1st instant, whereof a copy is enclosed, have instructed me
to inform you, that Congress are sensible of your generous
attention to the circumstances of the war, in which these United
States have been so long engaged, and which, interrupting their
commerce, deprived them of the means of seasonable remittances to
satisfy the balance so justly due on the loan made by you.
I am further instructed, Gentlemen, to assure you that the United
States in Congress assembled, in providing for the national debt,
by their Act of the 18th day of April, 1783, were not unmindful of
your demands, and that when the system thereby adopted for the
relief of public creditors shall have taken effect, the interest
accrueing on the balance due to you, will be punctually remitted.
If, Gentlemen, this arrangement shall not prove satisfactory to
you, I am further instructed to assure you, in the name of the
United States, that all the means in their power shall be employed
to discharge the principal sum due to you, as soon as the
condition of the public finances will admit.
I have the honor to enclose a copy of the above mentioned Act of
the 18th of April for your better information on this subject, and
take the liberty to add, Gentlemen, to the assurances just given
on the part of my sovereign, that every effort in my power shall
be made to comply with such ulterior orders as may be issued, as
well as to render you any acceptable services in my power.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
REPORT TO CONGRESS ON AN EXTRACT FROM THE JOURNALS OF THE GENERAL
ASSEMBLY OF PENNSYLVANIA.
The Superintendent of Finance, to whom was referred an Extract
from the Journals of the General Assembly of Pennsylvania, begs
leave to report;
That the said extract consists of two parts; the former whereof
contains certain matters reported by a committee of that
honorable House, in consequence of a conference held with the
commissioner for settling the accounts of the said State, the
which matters are reported by the committee, and appear to have
been considered by the House as facts. The latter part contains
reasonings upon the former, and resolutions in consequence
thereof. Pursuing therefore the same line, the Superintendent of
Finance must take leave to observe, that the former part of the
said extract implies an inattention on his part to the orders of
the United States in Congress, and an assumption of powers not
delegated. He humbly prays to submit both of these charges to the
wisdom and equity of Congress, who have long since had before them
all the instructions given to the commissioners for settling
accounts, together with a report on the reference mentioned in the
extract; wherefore it is to be presumed, that if undue negligence
or the arrogating of power had appeared, it would not have passed
unnoticed.
It is further to be observed, that the doubts stated by the said
commissioner and the difficulties under which he is supposed to
labor, must have chiefly originated in circumstances peculiar to
himself, because that such doubts and difficulties have not
occurred to the commissioners employed in other States, and
because they would easily have been obviated by a careful
consideration of the Acts and instructions in his possession;
excepting only in one point, viz., "Whether charges for buildings,
fences, wood, &c. damaged or destroyed by continental troops, or
militia, are to be allowed?" This question (which can only be
resolved by special Act of Congress) is not to be found among
twelve questions proposed by the commissioner to Congress; but
among nine proposed to the Superintendent of Finance.
It is stated in the said extract, "that by the instructions from
the Office of Finance to the said commissioner, he is enjoined a
strict attention to the resolve of Congress of the 23d of August,
1780, _touching all certificates generally_; that this resolve
introduces an entire new method of granting certificates; that to
require those new forms in certificates, granted before they were
instituted, is requiring an impossibility, or (in other words) is
_a refusal to liquidate any certificate given before the 23d of
August, 1780_." Were this the case, doubtless there would be
sufficient cause of complaint and sharp animadversion; but the
Acts and instructions, all which are in possession of Congress,
will show the state of facts to be as follows. The Act of Congress
of the 20th of February, 1782, speaking of the commissioner
contains the following words; "That he be also fully empowered and
directed, to liquidate and settle, in specie value, all
certificates given for supplies by public officers to individuals,
and other claims against the United States, by individuals for
supplies furnished the army, the transportation thereof, and
contingent expenses thereon, within the said State, according to
the principles of equity and good conscience, _in all cases which
are not or shall not be provided for by Congress_." Under this Act
of Congress, the Controller of the Treasury issued certain
instructions, which were approved of by the Superintendent of
Finance, thereby directing each of the several commissioners "to
open an account with the principal of each department, for the
time being, and with every person who is properly accountable for
articles purchased by or delivered to him. In which _they must be
changed respectively with all such articles, and for which they
are to account with the commissioners appointed, or to be
appointed to adjust the accounts of these departments respectively_."
The Superintendent of Finance, in a letter to the commissioners of
the 7th September, 1782, after referring to the Controller's
instructions, calls their attention to two particulars, the former
whereof is not material to the present point, and the latter is as
follows; "In settling the accounts with individuals, you will
consider _that artful men have frequently taken advantage of the
public_, and that, in many instances, _public officers have taken
advantage of the weak and unprotected_. You will therefore always
remember that _it is your duty to do justice_." The two
commissioners who were first appointed after considering the Acts
of Congress and the several instructions given to them, proposed,
among others, the following question, "Whether certificates given
to individuals are to be taken as they stand, and new ones given
for their amount; or whether they are to be re-examined and new
prices affixed to the articles _when they have been over or under
charged_? The Superintendent and Controller entered into a
consultation together, and the following answer was returned.
"Certificates given by quarter masters or commissioners to
individuals, must be re-examined, the articles shown, and their
value determined, _that the receiver of them may be charged and
made accountable to the commissioners appointed for the respective
departments_. See resolutions of Congress of the 23d of August,
1780, relating to them, which must be strictly attended to."
This question and answer is regularly transmitted by the
Controller to all the commissioners appointed to adjust the
accounts between the individual States and the Union. The
commissioner for the State of Pennsylvania, had therefore the
matters above recited in his possession when he proposed to
Congress the following questions. "Are certificates or receipts
given by quarter masters, commissaries, their deputies,
assistants, agents, or other public officers for supplies
furnished, before the 15th of September, 1780, to be taken as they
stand, and new ones given for their amount, estimated in specie?
Are certificates issued agreeable to the mode prescribed by
resolution of Congress, 23d of August, to be taken up and new ones
given?" These questions were, among others, referred to the
Superintendent of Finance; who thereupon informed the commissioner,
that the answer thereto was in the Act of Congress, the letter from
the Superintendent, and the question and answer above quoted. Surely
there is nothing in either which _requires the forms prescribed by the
Act of the 23d of August, 1780, in certificates granted before they
were instituted_. The commissioner is indeed referred to that Act, and
directed to pay attention to it; but the evident construction of this
order, limits it to certificates issued under the Act. And even if
that were not the case, yet when the whole of the instructions (or
rather the answers) which are complained of, is taken together, there
cannot be the shadow of a doubt. For among the commissioner's
questions to the Superintendent is the following; "How are claims for
supplies furnished, or services performed by an individual, who is
destitute of a certificate or any kind of voucher, having only a bare
charge against the United States for the same, to be settled? Will the
oath or affirmation of the claimant make the charge good?" And he
shortly after asked Congress, "How are claims for supplies furnished
for public use by an individual, who is destitute of a proper voucher,
to be authenticated?" To both these queries the answer given by the
Superintendent, (and which forms part of the instructions complained
of) is as follows. "They relate to the same point, viz. _What evidence
shall establish claims?_ It appears, that the article passed in favor
of the claimant must charge some other person, and that public notice
is to be given of the times and places of settlement, that both
parties may attend. Under these circumstances, if the demand is
grounded on _principles of equity_, and the evidence produced
satisfies the _conscience_ of the commissioner, he is bound to pass
it, _by the Act of Congress_." Now it must be remembered, that the
commissioner is (by the Act under which he was appointed) empowered
and directed to liquidate, &c. _according to the principles of equity
and good conscience, in all cases which are not or shall not be
provided for by Congress_. The answers therefore given by the
Superintendent to his questions, are no more than applications of the
Act, to the doubts which he had suggested. It is more than probable
that if the honorable Assembly of Pennsylvania, had communicated with
the Superintendent on this subject, they would not have assumed the
same ground of reasoning which they appear to have done.
It is alleged in the said extract, "that certificates given for
personal services, wages or hire, are rejected;" in answer to
which it can only be said, that if the claimants are officers or
persons acting in any of the departments, the certificates ought
to be rejected by the commissioner for the State, because such
accounts are to be liquidated by the commissioners of the
departments respectively; but if other claims have been rejected
by the commissioner, he must have been under the influence of some
misapprehension.
As the honorable Assembly have, through their delegates, proposed
certain resolutions, it will be proper to examine the reasoning
which led to that proposition. And first, it alleged, that "if an
exact account is _really_ wanted of the specific articles for
which any certificate was given, it may be found in the receipts
given by the party, at the time of getting his certificate, and
that these receipts are in the power of the public, being lodged
with the heads of the different departments." Surely such an
assertion is somewhat hazarded. Congress have before them full
evidence, that many persons, late officers in the civil
departments, refuse to account at all. If, therefore, such persons
should even possess the supposed receipts, still those receipts
are not _in the power of the public_, nor will they be so until
all the States have passed laws similar to those of the State of
Pennsylvania. But further, it will on inquiry appear, that when
individuals received certificates from public officers, the
receipts they gave did not always contain a list of the articles,
or account of the services which had been rendered. Certainly,
where any fraud was designed, a specification of articles was of
course avoided; and in many cases it has been neglected, even
where nothing wrong was intended. The idea therefore that the
specific articles are contained in the receipts, is as unfounded
as that those receipts are in the power of the public.