it is much to be lamented, that this is so heavy; not indeed the
sum proposed in the estimate, which is trifling, but it will be
found on examination, that the expense of collecting taxes in this
country is greater than in almost any other; a serious misfortune,
and which would certainly be provided against if the officers of
the collection were nominated by authority of the United States;
because then those principles of suspicion, which have already
done so much and spoken so loudly, would soon fix upon a
grievance, at present overlooked, because it forms part of the
system favorable to withholding instead of collecting taxes. It
has already been observed, that officers of the nature of
receivers are necessary in the several States; it is here
repeated, and experience will prove it. At the same time the
committee will please to take notice, that the Loan officers are
not included in the estimate; the reason of which is, that they
can answer no purpose but the expense of the appointment, and the
complicating of a system which ought to be simplified. An officer
whose duty it is to urge collections, may do good if he performs
that duty, but when it is a question of paying, means may be
adopted, which will be more effectual, less expensive, and
infinitely less liable to fraud. Not to mention that these means
may be such as to avoid long and intricate accounts. In fact (and
I hope, Sir, you will excuse the observation) there seems to have
existed a solicitude how to spend money conveniently and easily,
but little care how to obtain it speedily and effectually. The
sums I have proposed as fixed salaries for these officers, may at
first sight appear large, but if the office is to be at all useful
it must be in the hands of a good man who can devote to it his
whole time and attention, and who will neither by his private
distresses nor by the scantiness of his stipend, be prompted to
betray his trust, or abuse the confidence reposed in him.
Before I close this letter, I will take the liberty further to
mention to the committee, as a principal means of avoiding many
disagreeable discussions relative to the present object, that the
establishment of a mint, and due regulations of the post office,
would soon supply the funds necessary to defray the expenses of
our civil establishment. The former of these is entirely in the
power of Congress, and I should suppose, that the States could
have no reasonable objection to leave the revenue, which might
arise from the second to the disposition of Congress for that
purpose.
I pray you to excuse me, Sir, for troubling you with so long a
letter, which I will not add to by making an apology; but assure
you of the respect, with which I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
PROPOSED EXPENSES OF THE CIVIL LIST.
_President of Congress_, his household, $10,000
His private Secretary, 500
-------
$10,500
_Secretary of Congress_, 3,000
Two Clerks, 1,000
Messenger, 300
------ 4,300
Contingencies; fuel, stationary, rent. &c. 750
----- 5,050
_Chaplains of Congress_, 2,000
_Three Judges of Appeals_, at 2250 dollars each, 6,750
Contingencies during their sittings, 150
----- 6,900
------
24,450
_Superintendent of Finance_, $6,000
Assistant, 1,850
Secretary, 1,000
Clerks, three, 1,500
Messenger, 300
------ $10,650
Contingencies, 750
------- 11,400
_Minister of War_, 6,000
Two Clerks, 1,000
Messenger, 300
------ 7,300
Contingencies, 500
------- 7,800
_Minister of Foreign Affairs_, 6,000
Two Secretaries, 2,000
Messenger, 300
------ 8,300
Contingencies, 500
------- 8,800
_Controller of the Treasury_, 1,850
Auditor, 1,000
Six Clerks, 3,000
------ 5,850
Register, 1,200
Four Clerks, 2,000
------ 3,200
Treasurer, 1,500
Clerk, 500
------ 2,000
Messenger, 300
-------
11,350
Contingencies, 1,000
------- 12,350
------
64,800
_Two Foreign Ministers, at $10,000 each_, 20,000
_Five Residents, with Consular Powers, at 6,000_, 30,000
Contingencies, 10,000
------ 60,000
--------
Permanent expense, 124,800.
_Temporary Expense._
A Commissioner of accounts here, salary 1,500
A Commissioner for settling old accounts in
Europe, his clerks, contingent expenses,
&c. suppose $10,000
Two Clerks, 1,000
Contingencies, 250
------
2,750
Multiply by 18
------ 49,500
------- 59,500
---------
$184,300.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, March 17th, 1784.
Sir,
Permit me, through your Excellency, to call the attention of the
United States to the situation of my department. During the last
year, engagements were made to a very considerable amount for
payment of the army. This payment was effected by notes which fell
due the end of last year, and the commencement of this. The funds
at my disposal were unequal to the discharge of them. I was,
therefore, under the necessity of drawing bills on the credit of
the loan in Holland. The information I had received from the
gentlemen who had the management of it, gave me hopes that funds
sufficient to discharge those bills were in their hands; for in
the months of April, May, June and July, they had received and
distributed obligations for one million one hundred and thirtysix
thousand florins. But from causes, which will readily suggest
themselves to Congress, that loan, which had taken a rapid start
at the peace, began to decline in August and stood still during
all November. It has happened, therefore, that bills to the amount
of one million three hundred and twentyfive thousand florins,
equal at the current exchange to five hundred and thirty thousand
dollars, are protested for non-acceptance. Should they come back
protested for non-payment, the consequences will be easily
imagined.
For about a month past I have been in the expectation, that this
disagreeable event would happen, and whether it will or not is yet
undetermined. My last advices from the gentlemen who have the
management of the loan are in a letter of the 22d of December; by
which they tell me, "we are sorry to be obliged to repeat, that
since our last till the present moment, our prospects are not very
much increased; however, we are not quite without hopes, and have
determined, if we cannot do otherwise, to sacrifice some more
premium to the undertakers, which if we do, we will charge to the
account of the United States. We think ourselves fully authorised
to do this by the circumstances; since without the bills going
back, it is certain that, besides the disappointment and the
discredit it would give to the government bills, the expenses
attending the returns will be much more burdensome. We have almost
no prospect of getting the money without such a sacrifice, and
only hope it will answer your views." Enclosed you have the
account current with those gentlemen, as sketched out by the
register for information; by which it appears, that they had in
their hands a balance of three hundred and fortyseven thousand
seven hundred and seventy current guilders on the 31st of October
last, and by the subordinate account, number five, it will appear,
that my bills exceed that balance by one million five hundred and
thirteen thousand two hundred and twentynine florins; but from
this a deduction is to be made for some tobacco shipped to them,
the account of sales whereof is not yet come to hand. They have,
however, accepted of my bills beyond the amount of their funds,
and still there are to the value of one million three hundred and
twentyfive thousand florins protested for non-acceptance. In
order, however, that Congress may possess as full a view of things
as possible, I will suppose, for the present, that by making a
sacrifice of premium the funds for discharging these bills may be
obtained. I must also mention here, to obviate what might be
suggested, that the remittances to Messrs Le Couteulx and Mr Grand
will be found accounted for in their accounts, but time will not
permit going into all those details at present.
Supposing then the funds to be obtained for payment
of these bills, the interest falling due the beginning of
June next, will amount to two hundred thousand florins,
equal at the current exchange to $80,000
By the enclosed state of payments
just received from Mr Grand it will
appear, that on the 5th of November,
there is payable at his House
the sum of one million six hundred
thousand livres, equal at the current
exchange to 320,000
--------
$400,000
Thus you will find, that on the best supposition which can be
made, there is to be paid in Europe during this year four hundred
thousand dollars, over and above the salaries of foreign
Ministers and their contingent expenses. There is also to be paid
the further sum of one hundred thousand dollars, due in this
country on engagements taken for the public service during the
last and present year, besides notes in circulation, which may
probably be absorbed by the taxes, between this and the 1st of May
next. Thus there is a deficiency of half a million to be provided
for by the taxes from the 1st of May, to which must be added
sundry debts of the last year not yet adjusted, and which cannot
therefore be estimated, but which may amount to between one and
two hundred thousand dollars more. And to all this must be added
the current expenses, which Congress will best be able to
ascertain.
This, Sir, is a view of things upon the fairest side, but if the
bills noted for non-acceptance come back, a scene will then be
opened, which it is better for you to conceive than for me to
describe. The delay of the States in passing the laws for granting
revenue to fund our debts has left the above mentioned sum of four
hundred thousand dollars totally unprovided for; and I cannot see
the least probability that this general concurrence will be
obtained in season to make that provision. I beg leave, therefore,
to suggest the expedient that the produce of the requisitions for
1782 and 1783 be partly appropriated to that payment, and that the
money be replaced from the proper funds when obtained. But
whatever mode may be adopted, Congress will doubtless be struck
with this truth, that unless the States can be stimulated into
exertion, and that speedily, everything must fall into confusion.
I will not pretend to anticipate the evil consequences. Having
stated the facts I have done my duty.
I must, however, pray a moment's indulgence to mention, that the
accounts of the last year would have been rendered by this time,
but as I have not relinquished the hope of being able to quit this
office soon, I have rather desired to be able to complete all the
accounts of my administration. It will give me infinite pleasure,
if, when I have the honor of presenting to Congress these accounts
with my commission, I shall find them in circumstances as
prosperous as those under which I accepted it were adverse.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO JACOB READ, MEMBER OF A COMMITTEE OF CONGRESS.
Office of Finance, March 30th, 1784.
Sir,
I am to acknowledge the receipt of your favor of the 14th instant;
which should have been done sooner, but that I have been much
engaged, and indeed the accounts you ask for, and which are
enclosed, required time to be completed. I shall expect the papers
which relate to Mr Gillon by the first good opportunity.
With respect to the report of the committee, I cannot presume to
say anything about it, unless it should be officially referred to
me, which indeed would seem to be the regular mode of proceeding
in matters of that sort, but I am far from desirous of such
reference, and therefore if Congress are prepared to decide, I am
perfectly content. So long as I am in their service I shall
endeavor to carry their measures into effect.
I am perfectly in opinion with the committee, that the arrears
should be demanded before new requisitions are made; and if I were
to hint anything like advice, it should be that Congress state
clearly the evils which arise from their inability to enforce the
payments.
The desire that Loan officers may issue certificates I have long
known, and I know also, that it originates in a desire to elude
actual by making nominal payments. However, it occurs to me that a
mode might be fallen upon to conciliate this object with the
public interest. I consider the Loan offices as a very unnecessary
burden on the community, and I think they ought to be got rid of,
for I am sure that the whole business might be better done at one
tenth of the expense, besides the advantage of leaving no
unsettled accounts behind. If the States will act with rigor and
honesty on the present occasion, there would be no difficulty, I
should suppose, in negotiating with the several banks to make
actual effective payment. But you may be sure they will not
undertake anything unless they have a solid reliance on the
revenues. Now this is precisely what Congress ought to desire, for
if they are prevailed on to cause the issue of paper money by
their officers, the States may as heretofore neglect the means of
redeeming it, and then all the blame falls upon Congress. Indeed
they would well deserve it. For why need they attempt to
accommodate the States in the manner proposed? Think you the
Legislatures will be more solicitous to save the public faith than
to quiet the clamors of their own citizens? For my part I am
persuaded that they will not, and I cannot but think that an
address to the public creditors, charging the fault where it is
justly chargeable, would be more useful than mere temporary
palliations of their distress. On the whole I think it best for
Congress to adhere as much as possible to great outlines, and to
avoid details. Those should be left to the Minister of Finance. If
he is an able and honest man he will do well, and if the thing be
well done all is right. If he be unequal to his duties, the blame
of wrong measures will fall upon him. But if Congress do his work,
then unless their work be more than humanly perfect, they will
undoubtedly compromise themselves. I say these things to you in a
conviction of the truth of what I say, and with a perfect
indifference as to any personal considerations. If I can get out
of office I will, and if I cannot I will never ask Congress for a
confidence they do not wish to repose.
I am very much obliged, my Dear Sir, by your kind and confidential
communication, and reply to it, as you see, with full confidence.
If I were in a situation to converse with you on the state of our
affairs, I should be glad to do it, but the limits of a letter
will not permit the saying what is necessary on so extensive a
subject. I find that Congress are in the habit of passing
resolutions, which relate to my department, without a reference; I
am sorry for it, because some of them are inconvenient to me, and
others will I fear be found dangerous. However, they are the best
judges of what is for the public interest, and therefore I shall
avoid as much as possible all remonstrance.
I am, very sincerely, your most obedient, &c.
ROBERT MORRIS.
* * * * *
TO THOMAS JEFFERSON.
Office of Finance, April 8th, 1784.
Sir,
I have received the letter which you did me the honor to write on
the 30th of last month, for which I pray you to accept my thanks.
The circular letter, a copy of which you enclosed, has my entire
approbation, and I pray leave to assure the committee, that while
I am favored with the firm support of Congress, I shall not shrink
from the difficulties, however great, with which we are
threatened.
The idea of applying to the banks for aid, is in itself a good
one, but the present moment is unfavorable. The establishment of
so many banks instead of aiding credit, and facilitating
operations, will for some time to come have a contrary effect, and
it is not without great difficulty, that they will each collect a
capital sufficient to support its own operations. The struggle to
get such capital, places these institutions in a degree of
opposition to each other, injurious to them all. Without going
more minutely into that part of the subject, I take the liberty to
observe further, that as we had no mint established when the
treaty of peace took place, and consequently no proper regulation
of our coin, a great part of it was immediately exported, and the
country being now laden with foreign goods, and having but little
means of payment with produce, still farther exportations of coin
will take place, especially if by the return of the public bills
so great an additional remittance becomes necessary.
I shall leave all observations upon this matter to the good sense
of the committee, and proceed to mention further, that if the
abilities of the several banks were ever so great, we cannot rely
much on their inclinations, unless their respective directors
could clearly see a prospect of speedy reimbursement from the
taxes. It is, therefore, a matter of much delicacy, to make any
proposals to them on the part of government; for which and for
other evident reasons, I pray leave to suggest the propriety of
leaving all such negotiations to the Superintendent of Finance.
That officer has already sufficient powers to do everything,
except granting premiums for the loans proposed, and with respect
to them, I am clearly of opinion, that none ought to be given; but
if in the last necessity that step should be unavoidable, he may
then apply for authority. This I conceive to be better than
vesting him beforehand with such extensive power; for the
committee will be pleased to observe, that as the laws of the
several States have fixed the rate of interest, premiums on loans,
which in their effect raise the rate of interest, would be
exceptionable as well as odious. It is true, that the situation of
affairs is very disagreeable, but it is better to bear up and
struggle hard against present difficulties than lay the foundation
of future evils.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, April 29th, 1784.
Sir,
I do myself the honor to enclose for the consideration of Congress
the extract of a letter from the commissioner for settling the
accounts of Connecticut, together with the copy of a receipt
which was enclosed in it, and the original of which is returned to
the commissioner. Before I make any observations on this extract I
take the present opportunity of explaining a part of my conduct,
which has I know given some offence.
Previous to the acceptance of my office I was naturally led to
examine the ground on which I should be brought to act. I clearly
saw that great confusion had been introduced into the public
affairs, not merely from defects in former plans, but from a great
negligence in those to whom the execution had been committed. For
although the general arrangements were in some respects defective,
as is the case with all human institutions, yet those who were in
any degree culpable had taken care to charge the fault on such
deficiencies by way of excusing themselves. Congress will perceive
at a single glance, that where boards or committees, perpetually
changing, and whose members are not accountable, are charged with
the superintendence of a general system, and the subordinate
agents rendered accountable to them, it is vain to expect that
steady, severe, and attentive administration, which can alone
secure the public welfare. Experience had shown, that this radical
evil produced shameful negligences in the executive departments,
the mischiefs of which are felt at the present hour. Affairs were
so complicated that it was hardly possible to say who was in
fault; and while every individual officer took care to excuse
himself the blame was placed on Congress; from whom of all others,
if the future interests of America be consulted, it ought to be
removed. The expense which attends the settlement of the old
accounts is the least mischief which has resulted.
This view of our situation rendered it necessary for me to
stipulate, that I should be invested with ample powers, and
induced, also, the determination to avoid as much as possible the
employing of persons who had public accounts unsettled. My
subsequent experience has shown, that if this determination had
been universally adhered to, it would have tended much to the
establishment of that regularity, which has constantly been kept
in view. From frequent information I was convinced, that many of
the loan officers had not conducted their business according to
the modes prescribed, and had indeed neglected even to make those
returns, which had been from the beginning required. This was an
additional reason for placing the receipt of the continental taxes
in other hands. And when it was considered, that these gentlemen
would be constantly pressed for the payment of interest, that
which was necessary in the case with some became proper with
respect to all. This conduct, as has been already mentioned, gave
offence to some, but as no regular accusation has ever been
brought I shall go no farther into a defence of the measure; my
object being as well to point at future operations as to explain
the past.
I will not go into a detail of the modes formerly prescribed for
keeping the Loan Office accounts. Suffice it to say, that very few
of the officers have conformed to them. The instructions for
settling the accounts are before Congress, and the enclosed
extract shows that they cannot be effectually adhered to; and
consequently that a principal object in the settlement of the
accounts will not be effected. I pray leave, therefore, again to
bring to the attention of Congress a report made on the 3d of
September from the Office of Finance. Not that it is desired that
the United States should adopt the resolution there proposed, but
merely that it may serve as a groundwork on which to establish
some Act which may prove effectual.
It is perhaps a favorite object to keep up the establishment of
the Loan offices, but I must on this occasion repeat what I have
so often declared, that it is an expensive and a pernicious
establishment, without being attended with a single good effect to
compensate the mischiefs. I shall not, however, trouble Congress
with my reasons on that subject, because I think it my duty to
bear witness against them. I know the progress of all reformations
to be slow, and that experience is the most certain teacher.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 6th, 1784.
Sir,
In consequence of the resolutions of the 28th of April, and 2d of
May, 1783, I have made the various engagements then in contemplation,
and any late letters to Congress will show that some of those
engagements to the amount of three hundred thousand dollars still
remain to be fulfilled. Congress will be pleased also to observe that
their late arrangements with respect to foreign officers, form an
object of about fifty thousand dollars, including the grant of ten
thousand to Baron Steuben. Notwithstanding this and the constant
demands for current service, I am not without hopes that if all the
bills on Holland be paid, I shall in the course of the summer be able
to quit my station. Having been informed (though not officially) that
Congress intend to adjourn in the beginning of next month, I am humbly
to request that they would in such case be pleased to take eventual
arrangements for administering their finances. And I am the more
solicitous on this subject, lest through the want of such
arrangements, some injury should happen to the public service when I
retire.
I hope Congress will indulge me also in mentioning, that no
committee has been appointed to inspect into the conduct of my
department. It would give me particular pleasure that measures
were taken on that subject also.
With respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE MARQUIS DE LAFAYETTE.
Office of Finance, May 19th, 1784.
Dear Sir,
By the opportunity which your friend, Mr Constable, offers, I now
acknowledge the receipt of your several favors of the 26th of
December, 10th of January, and 9th of March last. Accept, I pray
you, of my sincere thanks for them all. I also enclose for your
perusal the copies of my letters to Congress, of the 16th of April
and of this date. To these I add their resolutions of the 3d
instant, which will I hope prove agreeable to you. If I have not
transmitted the copies of or extracts from your letters to
Congress so soon as they were received, you must attribute it to
circumstances which I, on the spot, could best judge of, and which
is not worth while to mention.