it follow, that the officers have in no instance, been guilty of
collusion with individuals, and given more than they were worth
both for articles and services? And will it not appear, that an
exact account of the specific articles is _really_ wanted, and
indeed absolutely necessary, for the detection of such abuses? Or
if it be supposed that all the inhabitants of Pennsylvania were so
honest and so disinterested, as neither to partake in fraud, nor
take advantage of negligence, must it also be presumed that the
public officers, acting within that State, have in no cases
whatever seized the property of individuals and given certificates
for less than the value? Or if it be imagined, that the officers
and the individuals have been all alike innocent, and that the
clamors raised on these subjects are totally groundless as to
Pennsylvania, will it follow that such things have not happened in
any other State? Or will it be proper to establish different rules
for the settlement of public accounts, under the idea of honesty
in one State and the want of it in another?
It is however assumed, as a position, that "any frauds which have
been committed cannot be detected in any other place, so well as
by the commissioners who settle the general accounts, at the heads
of departments." But surely it is necessary, not only to the
detection of frauds, but even to the settlement of accounts at
all, that the commissioners acting in the several States, obtain
accounts of the articles before they pass the sums. If, for
instance, the public officer should by collusion with the party,
make a charge of double the sum actually due for any article, can
a deduction be made after the sum has been passed to the
individual by the state commissioner? If the officer should omit
to charge himself with articles purchased, can this be proved,
when only the money certificate is produced against him? If the
officer paid, by a certificate, the nominal sum for articles
purchased, a year before, will this appear in such manner as to
prevent him from taking all the benefit of the depreciation? If,
for instance, he purchased to the amount of two hundred thousand
dollars, when money was at two for one, paid in certificates when
it was at four for one, and carried the articles to account at a
reasonable specie value, viz. one hundred thousand dollars, and
if the certificates be now liquidated at their value, viz. fifty
thousand dollars, would he not be gainer of the like sum of fifty
thousand dollars merely by the depreciation? It is also asserted,
"That the holders of certificates are subjected to many
inconveniencies from this delay, and that after _coming from the
remote parts of the State_, and having a liquidation of their
certificates refused, they depart with murmurs and discontent." If
holders of certificates came from _remote parts of the State_, and
the Act of Congress of the 20th of February, 1782, intended to
afford relief, becomes thereby a source of distress, it must arise
either from the ignorance of the people themselves, or from a want
of attention in the commissioner; for by the Act it is ordained,
"that the commissioners respectively give public and early notice
of the _times_ and _places_ of their settling, and the _districts
within which_ they settle accounts, that as well the public
officers as private individuals, may have an opportunity to
attend." From the whole scope and tenor of the Act, as well as
from the express words of this particular part, it appears clearly
to have been the intention of Congress, that the commissioner
should mark out convenient districts in the State, take some
proper position in each district, and then give such early _public
notice_ of the _place_ and the _district_, as that claims arising
from transactions _within that district_ might be brought in and
adjusted, and both the public officer and the private individual
concerned in the transaction, have an opportunity of attending.
As the honorable Assembly have marked out a different mode of
settlement from that which has been adopted, it may be proper to
take a general view of the present and of the proposed plan, so as
to discover the inconveniencies resulting from each, and thence
determine which ought to be preferred. Under the present plan, the
first step of the commissioner is to mark out some particular
spot, with a convenient surrounding district, within which the
parties may attend, without the waste of time and the expense of
long journeys. The next is to give _early public_ notice thereof.
Supposing then the time to have arrived, which he had specified in
his advertisement, and a claimant to appear, the first question to
be solved is, whether that claimant be one of those whose demands
are to be adjusted by him, or whether it is the business of a
commissioner of one of the departments. Supposing the former, the
next object of inquiry would be, whether any and what services or
supplies were rendered by the claimant to the United States, and
if any were rendered, then what was the real value at the _time
and place_ of rendering them. Every kind of evidence exhibited in
support of each point is then to be examined, the officer who is
said to have received the articles is to be heard, if he contest
the claim, and, finally, the commissioner being in the vicinity of
the place, with opportunity to learn both the acts done and the
characters of the agents, must decide _according to equity and
good conscience_, where no express provision is made by an Act of
Congress. If this decision be in favor of the claimant, the
business of the commissioner is to give a certificate for the full
value of the articles and services, and then to charge the proper
officer and department, not with so much money, but with the
specific articles and services, for the due application whereof
account is to be rendered to the commissioner of the department.
A duty of the State commissioner, in the course of this business,
will be to discover and detect as much as possible the frauds
which have been committed, and transmit proper evidence, as it may
arise, to the commissioner of the department. In cases, however,
where the decision is against the claimant, it will be proper
still to return to the commissioner of the department a statement
of the claim, that if it should be found to be credited to the
public, in the accounts of such department, the party may meet
with redress at a future period. The inconveniencies attending
this mode are, that possibly some just claims may be finally
rejected from the want of sufficient proof, and that some honest
claimants may be put to trouble and difficulty in supporting their
claims.
The proposed plan appears to be shortly this, _that the
commissioner shall liquidate every certificate which may be
tendered to him in specie value_. If, however, the restriction
implied in the Extract, by the words "that no delay be given to
any certificate granted by an officer who has settled his public
accounts," &c. be made, viz. that the liquidation of such
certificates be suspended until the accounts of the officer who
gave them be settled, it is humbly conceived that such liquidation
can never take place; because, as the public have assumed the
debts of their officers, it is impossible to settle the accounts
of those officers, until the amount of their debts be known; those
debts forming a charge against the officers in the same manner as
the moneys advanced to them from the public treasury. The
settlement of the officers' accounts must, therefore, ultimately
depend on the settlements made with individuals, and therefore
this restriction must be rejected or the whole plan prove
abortive.
The proposition of the honorable Assembly may then be examined and
considered as of the effect which is just now stated. And if that
proposition be adopted, the commissioner sitting in one corner of
the State and examining claims and certificates brought from two
or three hundred miles distance, without the slightest attention
to the value of articles for which money is claimed, will be
exposed to every kind of imposition. Certificates will be
counterfeited, pretended depositions will be produced, fabricated
accounts will be delivered, vast sums will of course be
acknowledged as due to whoever may please to demand them. The
officers will (and very justly too) refuse to account for such
sums, the frauds which they will detect in claims allowed by the
State commissioners will cast a cloud even upon the just claims,
and the commissioners for the departments will for that reason be
unable to insist on any. Thus the officers will be empowered in
their turn to render such accounts as they think proper. So that
on the whole, the public debts will be greatly and unnecessarily
accumulated, and a precedent will be established to sanctify every
improper act which may hereafter be committed in times of
confusion.
These are public inconveniencies, and from a comparison of the two
plans one important question arises, shall the public property be
given away, and the country be taxed for the purpose of paying
moneys not justly due; or shall individuals who have claims on the
United States be obliged to validate such claims by sufficient
evidence? Surely the honorable Assembly of Pennsylvania will not,
cannot hesitate, in deciding this question. All which is humbly
submitted.
ROBERT MORRIS.
_Office of Finance, November 5th, 1783._
* * * * *
TO JOHN ADAMS.
Office of Finance, November 5th, 1783.
Sir,
I am honored with your Excellency's favor of the 28th of July from
Amsterdam, for which I pray you to accept my acknowledgements. I
am perfectly in sentiment with you, that it is best to avoid
government interference in the affair of our loan. If there were
no other reason I should not like the demand of grateful
acknowledgement, which would be erected on that foundation. We
hear enough already of our national obligations, and I most
heartily wish for my own part, that we could at once acquit them
all, even to the uttermost farthing, for I seriously believe, that
both nations and individuals generally prove better friends when
no obligations can be charged nor acknowledgements and retributions
claimed on either side.
I am also very strongly in opinion with you, that remittances from
this country would greatly uphold our credit in Europe, for in
mercantile life nothing vivifies credit like punctuality and
plenteousness of remittance. The plan you propose to obtain them,
might also be attended with some good consequences, but there are
impediments in the way of its success, which it would be tedious
to detail, and which indeed you could not be so perfectly master
of without being on the spot. I shall not, therefore, go into that
matter at present, and the more especially as we have now good
hopes, that the plan of Congress will be adopted by the States.
Last evening I received advice, that Massachusetts had acceded,
and I have a double pleasure in announcing this to you, as they
certainly would not have come in but for the sentiments contained
in your letters.
Let me then, my Dear Sir, most heartily congratulate you on those
virtuous emotions, which must swell your bosom at the reflection,
that you have been the able, the useful, and what is above all
other things, the honest servant of a Republic, indebted to you in
a great degree for her first efforts towards an independent
existence. That you may long live to enjoy those pleasing
reflections, which flow from the memory of an active and
beneficial exercise of time and talents, is the sincere wish of
your most obedient and humble servant,
ROBERT MORRIS.
* * * * *
TO MESSRS WILLINK & CO.
Office of Finance, December 31st, 1783.
Gentlemen,
Upon the 21st of October I valued on you to the amount of seven
hundred and fifty thousand guilders as expressed in my letter of
the 23d of that month, and in the beginning of this month having
received your letter of the 4th of August, and concluding as well
from the contents of that letter as from the actual state of
things here, that you would be successful in the succeeding
months, I gave notice to the gentlemen to whom I had sold the
bills mentioned in my said letter of the 23d of October, that I
should discount their notes, which has been done accordingly.
Thus the United States are become liable to pay any damages, which
those gentlemen may sustain, if, in consequence of delay their
bills may meet with, those drawn by them in consequence of a
reliance on your funds should return protested. The United States
will also be liable to the damages, which might arise on my
further bill drawn in favor of Mr Haym Solomons for one hundred
thousand guilders on the 12th instant, and mentioned in my letter
of that date.
Under these circumstances, Gentlemen, and unable to judge what
delays the loan may have met with from the causes you have
mentioned, or from any other, being also uncertain how far it may
have been or may be accelerated from other causes, I must request
that in any case whatever all my aforesaid bills may be accepted.
You will see from the enclosed copies of letters to the receivers
of Virginia and South Carolina, that I am taking measures to put
you in cash for any advance which such acceptances may render
necessary. These measures are intended with the double view of
providing for the interest of your loan or of reimbursing your
advance. In the former case you will be in cash before the
interest falls due, but at any rate you shall be secured. The
disbandment of our army having brought our expenses within the
revenue, there remains an excess, which cannot fail to reimburse
you even if the loan should totally fail. For I cannot suppose,
that you will be much more than half a million in advance, and I
am certain that the excess of taxes for current services would
easily pay this sum in four or five months, and I am equally
certain that I could by anticipation bring that excess forward to
your relief at an earlier period if necessary.
My request to you, therefore, Gentlemen, is this, that you accept
my bills at any rate, whether you have funds or not, and whether
you have or have not the probability of receiving them. If the
payments fall due before you find relief, take such measures to
obtain money as shall under a view of all circumstances produce
that effect with the least loss to the United States. Of these
measures I leave to you the entire disposition, and I promise you
on the part of the United States to reimburse all losses,
interests, costs, and charges, which may accrue thereupon. You
will be pleased, Gentlemen, to give me very early notice of your
situation, and to point out very particularly the sums which may
be needful, and also the articles of this country, which will
probably form the best remittance, and on my part I promise to
take the earliest measures for making you such remittances. I
shall confidently rely on your efforts, and remain with perfect
respect, Gentlemen, your most obedient servant,
ROBERT MORRIS.
* * * * *
TO MESSRS WILLINK & CO.
Office of Finance, December 31st, 1783.
Gentlemen,
Your advices of the 26th of September, that the success of our
loan with you had been greatly impeded by reports, propagated on
the part of Great Britain, did not a little surprise me. In my
letter of the 12th of this month, I have given you some slight
sketch of the mutiny of a few troops near this city, and this
perhaps may be among the circumstances, which have militated and
been magnified to our disadvantage. But as I did not then, so I do
not now think it worth while to mispend time by the history of a
trifling thing, which has no importance in itself, and which might
derive some by treating of it seriously. It has always been the
common trick of the British and their adherents to assert, that
America had neither government, armies, nor resources. To all
which, I answer, that America has established her independence.
Far be it from me to attempt an injury to the credit of any other
nation; on the contrary, let those who would rather trust England
than America, make the experiment, and if it prove beneficial, let
them rejoice; if it prove otherwise, I shall pity the sufferers.
I should not, indeed, be greatly surprised, that our credit were
impaired in any of the absolute monarchies of Europe, because that
such governments have no proper ideas of the sacred regard, which
is due to pecuniary engagements taken by the public, and because
the people have no conception that the government should be unable
to command all the wealth of its subjects. But in your country, it
is an every day's experience, that determinations of the
States-General should meet with obstacles in the different
Provinces, and this has been precisely our case in the business of
finance. No State has insinuated, that our public debts ought not
to be paid; nor indeed does any individual dare to hold up that
idea. But differences have arisen about the mode of making
provision for them, and such differences of opinion necessarily
cause delay. It is, however, with much satisfaction, I inform
you, that the different States are coming in one after the other,
and I have strong expectations that all of them will soon accede
to the plan of Congress, which I formerly transmitted. The
government of this country has been vigorous enough to carry us
through the war, and it would be strange indeed, if it should all
at once become weak in that moment of peace, when other
governments usually acquire strength.
For my own part, I cannot believe that such ideas will take place
among sensible men; but on this occasion, I will show to his
Excellency, M. Van Berckel, the letter I am now writing, and
desire him to write candidly to you and to others his sentiments
as to the state of this country, whether the people are in peace,
obedient to the laws and the government in due force, or whether
we are a prey to discord, and our country the theatre of tumult
and confusion.
I am, Gentlemen, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, January 13th, 1784.
Sir,
The Secretary of Congress has transmitted to me the petition of
John Cowper, with an order to report thereon. I must, on this
occasion, pray leave to observe, that this, with a variety of
other similar transactions, depends on the adjustment of the
accounts of the Secret and Commercial Committees of Congress. In a
letter of the 12th of August last, I had the honor to observe,
that those accounts "were far from being inconsiderable, either
as to their nature or magnitude; that they were involved with
others, and had extended themselves to different parts of the
United States, and to Europe, and the West Indies; that they were
more connected with the Marine Accounts than with any others; and
that the settlement of them was highly necessary." I took the
liberty, also, then, to suggest the propriety of submitting the
investigation of those accounts to the commissioner for settling
the Marine Accounts, or of appointing a special commissioner for
that express purpose.
Since writing that letter, the Commissioner on the Marine
Accounts, having been obliged in the course of his business, to
look at the Commercial and Secret Committee Accounts, has not only
discovered some balances due to the United States, but has
reported other matters, which show in a strange point of light,
the necessity of examining and settling those accounts. I think
they could be more easily, speedily, and effectually settled by
that gentleman, than by any other, and therefore the submitting of
them to him, might be eligible in an economical point of view.
I come now, Sir, to observe, which I am sorry to do, that my
report on Mr Cowper's case must necessarily be suspended, until
after a reference to the commissioner appointed to adjust the
accounts of the Secret and Commercial Committees, I shall be
possessed of such a state of facts, as will enable me to report
with propriety.
Before I close this letter, I must also observe, that as the
accounts in question originated with, and were under the
superintendence of members of Congress, it is a kind of duty,
which Congress in their political capacity owe to themselves, to
trace the applications of money through those channels with the
same attention, which has very properly been applied to other
public expenditures.
With perfect respect and esteem, &c.
ROBERT MORRIS.
* * * * *
TO MESSRS LE COUTEULX & CO.
Office of Finance, January 13th, 1784.
Gentlemen,
I some time since drew a bill for two hundred and fifty thousand
livres, on Messrs Wilhelm and Jan Willink Nicolas, and Jacob Van
Staphorst, De la Lande and Finje, merchants at Amsterdam, in favor
of Mr John Ross. This bill was drawn on the credit of the loan
opened under the direction of those gentlemen, and in consequence
of flattering accounts of its success, which I had just then
received. I find that Mr Ross has remitted this bill to you, and
is actually drawing on the credit of it. Some late advices from
Amsterdam give me reason to apprehend the possibility of a
nonpayment of this bill, and therefore I am now about to make to
you the request of a favor on the part of the United States. It
is, Gentlemen, that you would place this sum to the credit of Mr
Ross at the day when the bill falls due, whether it be paid or
not, and whether in the whole or only in part, taking the bill up
for the honor of the United States. You will then immediately give
me notice of the sum, which, by this means, your credit is
advanced for, and I will take care to make you remittances for
amount of the principal and interest of that sum, nor will I quit
my office until you are fully repaid. At the same time you will
probably also find some relief from the further produce of the
loan; as the causes which impeded its progress during the months
of August and September, have long since been removed. And indeed
I still expect, that the success of it will enable the punctual
payment of Mr Ross's bill, and only write this letter out of
prudence and for the greater caution.
You will observe, Gentlemen, that I have two objects in making
this request, one is to save the credit of the public, which might
materially suffer by the coming back of this bill, and the other
is to prevent the payment of twenty per cent damages, which would
be the eventual consequence, over and above the private injury,
which Mr Ross would sustain in his personal credit. If, Gentlemen,
you have a sufficient confidence in me and in my country, you will
comply with this request, provided your own convenience will in
anywise permit. If you have not that confidence, I must lament it
as a misfortune.
I am, Gentlemen, yours, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, January 16th, 1784.
Sir,
I do myself the honor to transmit to your Excellency the copy of a
letter from David Sproat; I should not trouble Congress with it if
the supplies mentioned had been advanced to persons taken in the
service of the United States. As it is I should suppose an express
appropriation of money to this purpose to be necessary; Congress
can best judge whether that be proper, but if I were to express an
opinion, it would be, that the payment of such debts is the most
effectual mode of providing for those disastrous accidents, which
the citizens of America are liable to in common with the rest of
mankind.
I am, Sir, respectfully, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, January 21st, 1784.
Sir,
I do myself the honor to enclose the extract of a letter of the
10th instant, from the Quarter Master General. The latter part of
it, referring to a matter which he has long since brought before
Congress, I shall not take the liberty of meddling with.