Messrs Wilhelm and Jan Willink, Nicolas and Jacob Van Staphorst,
De La Lande and Finje at Amsterdam, a copy of their letter to you
of the 30th of November. Enclosed you have a copy of my answer of
this date. I flatter myself that you will not have suffered the
public credit to be ruined for want of an engagement to the amount
of so small a sum as might be necessary to avoid the danger to
which it was exposed, and I wait in the anxious expectation of
hearing from you, what arrangements have been taken on this
subject, as I wish to conform my measures to them. If, contrary to
my expectations, some unforeseen causes should have induced you to
decline so necessary an engagement, I hope this letter may arrive
in season, and induce you to do it.
You will observe that a copy of this letter is transmitted to the
Houses in Amsterdam, but I have not sent a copy of the enclosed
letters to Mr Grand and Mr Barclay, which are left open for your
perusal. I have not time now to go particularly into the
estimation of their accounts, but I am almost persuaded that there
is, between them, and ought to be in the hands of the former
before this time, about half a million of livres belonging to the
United States. But in the present exigency, I shall not reckon on
this sum, nor on the second expedition of five hundred hogsheads
of tobacco, which are, I presume, before this hour arrived at
Amsterdam. I shall calculate on a deficiency of five hundred
thousand guilders, and prepare remittances as fast as proper
articles can be purchased to that amount; because the surplus may
be well disposed of to answer the interest of the Dutch loan,
which falls due in June next.
If, therefore, you can adopt any measures by which, in circuitous
negotiations, the time of payment can be prolonged, you may rely
on the arrival of such remittances in the months of June and July
at farthest, as shall fully answer the sums which may then fall
due, and as I have told the gentlemen in Amsterdam, the advices
which I may receive will govern the direction of those remittances.
I shall give immediate orders for the purchase of one thousand
hogsheads of tobacco, and as that amount is completed, I shall extend
it according as circumstances may require.
The season has been so intemperate, that the navigation of the
Chesapeake is to this hour shut up by the ice, but that cannot
last much longer, and therefore I have good hopes that some
capital shipments may depart before the 1st of April; and should
the urgency of the case require it, I can draw at long sight on
the consignees, and transmit the bills, which will enable a
farther negotiation, if necessary. The means of making remittances
are now, thank God, in my power; for the amount of taxes exceeds
that of the expenditures, which last are reduced almost to
nothing; and as the revival of commerce must increase the means of
paying taxes, I have no other solicitude for the event than what
arises from the want of time to make due arrangements. This want,
I persuade myself you will remedy, if you have not already
provided against it. And you may rely, that any engagements you
may think it necessary to take, shall be most punctually complied
with by me.
With unfeigned esteem and respect, I have the honor to be, yours,
&c.
ROBERT MORRIS.
_P. S._ Since writing the above, it occurs to me, that there is
(particularly on the present occasion) a propriety in transmitting
to you the best account in my power of the situation of things, as
to the funding of our public debt. I say the best in _my power_,
for I know not what is done southward of Virginia, no mail having
come from thence in upwards of six weeks, by reason of the
inclemency of the weather, which greatly impedes our intelligence
from every quarter. New Hampshire, Massachusetts, New Jersey,
Pennsylvania, Delaware, Maryland and Virginia, have adopted the
plan recommended by Congress. I am assured that New York and
Connecticut will adopt it very speedily, and I am told, on good
authority, that Rhode Island will come in as soon as the example
of the other States is communicated. It is in consequence of my
conviction that the plan will soon be agreed to by all, that I
have published an advertisement of the 9th instant, a copy whereof
is enclosed.
R. M.
* * * * *
TO B. FRANKLIN.
Office of Finance, February 13th, 1784.
Dear Sir,
I have written to you, under yesterday's date, on a very
interesting subject; and I will now add something farther, which I
did not choose to place in that letter, as a copy of it is
transmitted to the Houses in Holland. And, first, I will give you
an account of my situation, as accurately as possible, in order
that (seeing the whole state of my engagements, and the means of
fulfilling them) you may rest at ease under the operation I have
requested, and which I must now most strongly urge and entreat you
to engage in.
My present actual engagements are threefold, viz., first, general
engagements for the public service not yet satisfied, including
therein the notes issued by me, which remain in circulation;
secondly, my bills of exchange unpaid; and, thirdly, my debts to
the national bank.
The first of these it is difficult to ascertain with exactness,
for I take into the account all payments to be made for past
services and the like, and I set against it sundry sums to be
received, and the public goods which are yet to arrive. It cannot
be expected, therefore, that any great precision will take place
in this estimate, but from the clearest insight I have, the amount
is rather under than over one hundred thousand dollars.
The second stands thus. I drew for a million of guildders, of
which, calculating the extent, not more than one half remains
unprovided for, as I have observed in my letter of yesterday. This
half may be considered as of the value of two hundred thousand
dollars. Besides this sum, I have drawn three bills of two hundred
and fifty thousand guilders each, and one of one hundred thousand
guilders, for which I have received three hundred and forty
thousand dollars; but as I have agreed that those bills shall not
be protested, they are not to be carried to the account of bills
of exchange.
My debt to the national bank is the above sum of three hundred and
forty thousand dollars, obtained from them by discounting notes
received for the bills of exchange, and which notes they will
continue on interest, until taken up by my payments here, or by my
moneys raised on the drafts of the parties who gave them, should
my bills be eventually paid in Europe.
In this calculation you will perceive, that I make no mention of
any moneys which I suppose to be in the hands of Mr Grand,
because, for the greater certainty, I will on the present occasion
consider them as equal to answer for contingencies only. And on
the other hand, I will not calculate the interest to arise on
moneys borrowed in Europe, because although that object may be
stated as of the value of from one hundred and fifty to two
hundred thousand dollars, yet to answer it, I place first, the
general system of funding the public debts, and secondly, whatever
small sums may arise on the Dutch loan, supposing it to have no
success worth counting on for other purposes.
Hence, therefore, we will state the account as of the first of the
present month thus,
Balance due for past services, $100,000
Due for bills of exchange drawn, 200,000
Due to the national bank, 340,000
--------
640,000
Add for contingencies, 10,000
--------
$650,000
We come now to the means of making payment; after rejecting all
hope of any material aid from the Dutch loan. And they are as
follows. The taxes for the last four months, ending the 31st of
January, amounted to somewhat more than two hundred thousand
dollars. Towards these taxes, the States of Delaware, North
Carolina and Georgia, have as yet paid nothing. Neither is there
anything paid by the State of South Carolina within the account of
those months. The States of New Hampshire, Connecticut, New York,
Maryland and Virginia have paid very little, in proportion, to
their present ability, and the other four States will all, by the
extension of peace and commerce, be in better circumstances for
revenue than they were before.
From the States of New York, Maryland, Virginia and South
Carolina, I expect to derive very considerable relief; particularly
from the first, by a proposed sale of confiscated lands. However, I
shall (after deducting from the probable increase of the revenue so
much as may pay the current expenditures) calculate the surplus and
the proposed sales of lands, as amounting to no more than two hundred
and fifty thousand dollars, by the end of next September. This then
will place the sum unprovided for at the amount of four hundred
thousand dollars, and the fund to pay it at fifty thousand dollars per
month. That fund will discharge the first article above mentioned, by
the end of March; and the next thing to be provided for, is the two
hundred, to answer bills of exchange drawn.
The intended provision for that object is as follows; I shall
borrow immediately one hundred thousand dollars of the bank, and
direct purchases of tobacco and rice, partly with cash, partly on
credit, and partly by bills drawn on me. By this means, I can with
that one hundred thousand dollars have the purchases made in all
March and April, so that the shipments to the required amount of
two hundred thousand dollars will take place, some in March, some
in April, and all of them I hope by the end of May. The taxes
during April and May, will pay the purchases on credit, and the
bills drawn on me; and the taxes in June and July will pay the
hundred thousand dollars due to the bank. By the end of September,
therefore, I may calculate on a full discharge of all these debts.
If the loan should meet with success, my relief will be more
speedy; but you will see, Sir, from this detail, what is most
important to you, viz; that the funds will be placed in Europe
during the months of June and July, to pay the half million of
guilders, which I desire you to provide for. I suppose the mode of
circuitous negotiations to be very familiar with your bankers, but
I would hint at the following as practicable. Suppose the Houses
in Amsterdam to draw in the month of March on Mr Grand, at sixty
days' sight; Mr Grand might in May draw, on a good House in London
for his full reimbursement, and the House in London might, in like
manner, reimburse on Messrs Le Couteulx & Co. by which time the
remittances would arrive. Or the time might be still farther
extended, if the House in London should reimburse on Messrs
Wilhelm and Jan Willink, and they on Messrs Le Couteulx. Or the
last bills might perhaps be drawn on Mr Grand instead of Messrs Le
Couteulx. However, supposing that the credit of those gentlemen
might be useful, I have requested them to aid your operations,
should you think proper to ask their aid.
And now, my Dear Sir, let me before I close this letter, entreat
of you most earnestly, that the public credit just beginning to
revive be not totally lost for a want of an effort, which is but
nothing in comparison with what we have already experienced, and
passed through with success.
With very sincere esteem, yours, &c.
ROBERT MORRIS.
* * * * *
TO THOMAS JEFFERSON.
Office of Finance, February 25th, 1784.
Sir,
Your letter of the first instant reached me but a few days since,
and I seize the earliest moment in my power of replying to it. I
shall reply also in this letter to that with which I was favored
from Mr Williamson, and pray both him and the committee that they
will excuse it; assuring them that it proceeds from a desire of
collecting all I have to say on the subject under one point of
view.
It was and is my opinion, and has frequently been expressed, that
the calls of Congress should be confined to the arrears of former
requisitions, so long as it can be possible out of such means to
defray the current expenditures. And although it has been
necessary to comprise a part of the expenditures of 1782 and 1783
within that debt, for the interest whereof permanent funds have
been required, I thought it my duty to oppose any relinquishment
of the existing requisitions. I will not repeat the reasons,
because the grand committee appear to be of the same opinion. It
was evident, that if those requisitions should produce more than
the current expenditure, the surplus would easily be applied
towards discharging a part of the debt, which arose during the
years 1782 and 1783.
Enclosed, Sir, you will find the required amount of taxes received
to the end of last year. But since that period, there have been
farther receipts, and I must observe, that among these are some
small sums collected in New Jersey and Pennsylvania on the
requisitions for 1783. But these are nevertheless carried, in the
treasury books, to account of the unsatisfied requisitions of
1782.
Confining myself to round numbers, because I presume the committee
would rather receive information materially right in season, than
wait for greater accuracy at the expense of moments, every one of
which must be precious, I take leave to mention, that the
arrearages on the requisitions of 1782 and 1783 exceed eight
millions, and that one of those eight millions would pay the
unfunded expenditures from the end of 1781 to the commencement of
the current year; by which term of _unfunded expenditures_ used
for want of a better, I mean such part of the public debt as arose
in that year, and which not having been carried to the account of
the public debt, but remaining due on my official engagements and
anticipations, must still be provided for out of the requisitions.
There will remain, therefore, at least seven millions for the
service of this year, and payment of a part of the former debt,
should the collections be so rapid as to pay off the required
million beyond the immediate expenses, which I confess there is
but little reason to expect. It will, however, be useful, that
pressing application be made to the States, to complete their
quotas, under those requisitions; for if only one hundred thousand
dollars were employed in payment of our funded debt, before
January next, in addition to the provision for paying the
interest, we might then consider the independence of our country
as firmly established. I shall dwell no longer on this subject,
which will, I am sure, be better matured by the committee, than by
any of my reflections. But I am bound to mention, Sir, that, from
the slowness and smallness of the collections, our finances are in
a more critical situation than you can easily conceive; such that
I dare not leave this place, although I am very desirous of paying
my respects to Congress at Annapolis.
As to the vote of September, 1782, requiring one million two
hundred thousand dollars for payment of interest on Loan Office
certificates, &c. I have no official information of what has been
done by the States; some among them have, I believe, directed the
issue of certain other kind of certificates for payment of that
interest; but as the acts do not conform to the resolution of
Congress, I cannot know what conduct the Loan officers have
pursued. It is much to be lamented, that the States individually
are not sensible how necessary it is to conform to general
regulations; on every occasion, some local convenience is
consulted, and a deviation made, which appears to be of little
consequence to the general system, and which is nevertheless
important, and becomes injurious to the very State by which it was
made. The idea of an officer dependent only on Congress, amenable
only to them, and consequently obedient only to orders derived
from their authority, is disagreeable to each State, and carries
with it the air of restraint. Every such officer, therefore, finds
the weight of public opinion to contend with. But how in a
continent so extensive, can that simplicity of administration,
which is essential to order and economy, be introduced, unless
such officers are not only tolerated, but aided by the legislative
and executive authorities? I will pursue these ideas no further
for the present, because I think the opportunity will arrive in
which the subject must be considered with more attention.
Enclosed, Sir, I have the honor to transmit an account of the
civil establishment of the United States, together with an account
of contingent expenses of the several offices. Neither of these is
as complete as could be wished, though as perfect as they can at
present be made. You will doubtless observe, that all the offices
are not completely filled, and that all the contingent expenses
are not brought into the account. Among the latter omissions is
the contingent expense of our foreign ministers, which will, I am
persuaded, be far from inconsiderable. I have thought it proper,
also, to transmit to the committee an estimate of the sum at which
our civil establishment might be fixed; and on this estimate I
make the following general observations. 1st. That the articles of
contingencies therein mentioned, are carried out on conjecture,
and therefore the sum total may be somewhat more or less,
according to circumstances. 2dly. That the numbers, titles, and
salaries of the several officers being entirely in the disposition
of Congress, they will add to or diminish from them as they may
think proper, wherefore the totals will doubtless be different
from what I have stated; and 3dly, that a very considerable part
of this expense being occasioned by the old accounts, will cease
of itself when those accounts are settled.
I proceed then to observe more particularly on the expenses of the
President's household. 1st. That the present mode is certainly
objectionable, as I have frequently had occasion to observe, and
which I now repeat with the more freedom, as nothing which can be
said will bear the least personal application. My reasons are,
1st. No person not accountable to the United States should be
invested with the right of drawing at will on the public treasury.
2dly. Every expenditure ought, as far as the reason and nature of
things will permit, to be ascertained with precision. 3dly. A
fixed salary being annexed to the office of President of Congress,
he will be more effectually master of his own household, and in
consequence a greater order and economy may reasonably be
expected.
On the expenses of the office of Secretary of Congress, I shall
say nothing. The expenses, the duties, and the cares are so
immediately under the eye of Congress themselves, that it would be
presumption. But I would observe, that to the account of the
contingencies of this office, ought to be carried the expense not
only of office rent, stationary, &c. but also fuel for Congress,
printing of the journals, expresses sent by Congress, and the
like.
The chaplains of Congress receive, at present, at the rate of four
hundred dollars each. If the office be necessary, it ought to be
so supported as that the officers may be entirely attached to
Congress, and accompany them in their changes, or fix at their
permanent place of residence; whichever of these modes shall
eventually be adopted, I have ventured to state their salaries at
one thousand dollars each; perhaps I am still under the proper
sum.
On the expense of the court of appeals I can say nothing, because
I know not whether the continuance of it be necessary. But I
should suppose, that if three gentlemen, well versed in the law of
nations, were, from the tenure of their offices to be always with
Congress (so as to be consulted and employed when the public
service might require it) such an establishment would be
continued, if the expense did not exceed the utility.
When all our accounts shall be settled, our debts either paid or
properly funded, and things reduced to a peace establishment, the
expenses of the Office of Finance may perhaps be reduced about two
thousand dollars, by taking away the salaries of the assistant and
one clerk, and adding somewhat to that of the secretary; under the
present circumstances I do not think the number of the officers
can be lessened. The salary of the Superintendent has often been
mentioned as very high. This is a subject on which I can speak
with great plainness, and but for the disagreeable situation of
things above mentioned, I should speak also without any personal
reference. I humbly conceive, that the object of Congress is what
it certainly ought to be, an enlightened economy. On the powers of
the office I will say nothing here, because it would be misplaced.
The expenses of it are and ought to be great. Until we can create
new beings we must take mankind as they are; and not only so, but
we must take them as they are in our own country. Now it is
evident, that a certain degree of splendor is necessary to those
who are clothed with the higher offices of the United States. I
will venture to say, that without it, those officers do not
perform one of the duties, which they owe to their masters; and I
can say, also, from experience that a salary of six thousand
dollars does not exceed the expense of that officer. I speak for
my successor, or rather for my country. Neither the powers nor
emoluments of the office have sufficient charms to keep me in it
one hour after I can quit it, and I did hope that period would
have arrived during the next month. Perhaps it may. If a man of
fortune chooses to run the career of vanity or ambition, he will
naturally wish the salaries of office to be low, because it must
reduce the number of honest competitors. I say honest competitors,
because those who would make a property of public trusts will
always be indifferent as to the amount of salary, seeing that with
such men it forms the smallest pecuniary consideration. When a
liberal salary enables a man, not rich, to live in a style of
splendor without impairing his private fortune, the show he makes
and the respect attached to him really belong to the country he
serves, and are among the necessary trappings of her dignity. Now
it has always appeared to me that true economy consists in putting
proper men in proper places; to which purpose proper salaries are
a previous requisite. Here I shall pause, because the reflection
occurs to my mind, that perhaps this, with many other propositions
equally true, will never be duly felt until an opposite conduct
shall lead to disagreeable conviction. If indeed it were my object
to enforce this point, I should go no further than the past
experience of Congress, and perhaps there might be room for some
argument on the actual state of the Office of Foreign Affairs. The
expenses of that office, as well as of the War Office, require
only a reference to what has been just mentioned. The expenses of
the Treasury Office cannot be curtailed, for before the present
business can be lessened, that of our debt must come forward, and
there must be some persons to manage it, although the great
machinery at present employed will be unnecessary.
For reasons of evident propriety, I say nothing on the
establishment of our foreign servants, only recommending, that as
little as possible be left to the article of contingencies.
Because, if, on the one hand, it be just to compensate extraordinary
and unexpected expenses for the public service, it is proper, on the
other hand, to reduce within the closest limits of certainty, which
the nature of things can permit, the amount of those burdens which the
people must bear. And it ought to be remembered, that contingencies
are generally speaking a kind of expenses, which though justified by
necessity are unprovided for by express appropriation, and which
therefore ought as much as possible to be avoided.