the attention of Congress, is the present public debts. I am sure no
gentleman can hope that these should be immediately paid out of an
empty treasury. If I am to receive and consider the applications on
that subject, if I am to be made responsible, that alone will, I fear,
be full employment for the life of one man, and some other must be
chosen to attend to the present and provide for the future. But this
not all; if from that, or any other cause, I am forced to commit a
breach of faith, or even to incur the appearance of it, from that
moment my utility ceases. In accepting the office bestowed on me, I
sacrifice much of my interest, my ease, my domestic enjoyments, and
internal tranquillity. If I know my own heart, I make these sacrifices
with a disinterested view to the service of my country. I am ready to
go still further; and the United States may command everything I have,
except my integrity, and the loss of that would effectually disable me
from serving them more. What I have to pray, then, is, that the
adjustment of all past transactions, and of all that relates to the
present system, may be completed by the means already adopted, that
whatever remains unpaid may become a funded debt, and that it may in
that form be committed to me, to provide for the yearly interest and
for the _eventual_ discharge of the principal. This task I will
cheerfully undertake; and if, in the progress of things, I am enabled
to go further, with equal cheerfulness it shall be done; but I must
again repeat my serious conviction, that the least breach of faith
must ruin us forever.
It is not from vanity that I mention the expectations, which the
public seem to have formed from my appointment. On the contrary, I am
persuaded, they are raised on a weak foundation, and I must lament
them, because I foresee they must be disappointed. I must, therefore,
entreat that no flattering prospect of immediate relief may be raised.
Congress will know that the public credit cannot be restored without
method, economy, and punctual performance of contracts. Time is
necessary to each; and therefore the removal of those evils we labor
under can be expected from time only. To hold out a different idea
would deceive the people, and consequently injure the public service.
I am sure it is unnecessary to add, before I close this letter, that I
confidently expect my measures will meet with the fullest support from
Congress, so long as they are honestly directed to the general
welfare. In this conviction, and with every sentiment of respectful
attention, I have the honor to be, &c.
ROBERT MORRIS.[31]
FOOTNOTES:
[31] _May 14th._ Wrote a letter to the President, promising to accept
the office. At this time, however, various reasons occurred to prevent
an immediate acceptance of the Commission; but particularly it was
necessary to retain my seat in the Assembly of Pennsylvania, in order
to lay a foundation for such measures as might tend to their support
of me in pursuing the public good, not doubting but their example
would have proper influence on the Legislatures of the other States,
especially in their determination upon general points, such as their
repealing those tender and penal laws, which in their operation had
destroyed all public and private confidence and credit; in passing
effective tax bills, that might yield substantial aid to the United
States for calling in the paper money, that had lost its credit; and
is adopting plans of reviving and establishing the credit of such as
had been injured in some degree, but which, being necessary in
circulation, and originally issued on funds sufficient for its
redemption, ought not to be given up to ruin, if possible to prevent
it. _Diary._
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, May 17th, 1781.
Sir,
I beg leave to submit the enclosed plan for establishing a National
Bank in these United States, and the Observations on it, to the
perusal and consideration of Congress.
Anticipation of taxes and funds is all that ought to be expected from
any system of paper credit. This seems as likely to rise into a fabric
equal to the weight, as any I have yet seen or thought of; and I
submit whether it may not be necessary and proper, that Congress
should make immediate application to the several States, to invest
them with the powers of incorporating a bank, and for prohibiting all
other banks, or bankers, in these States, at least during the war.[32]
I have the honor to be, &c.
ROBERT MORRIS.
FOOTNOTES:
[32] See the _Plan of the National Bank_ here mentioned, and also the
_Observations_ on it, in _John Jay's Correspondence_, Vol. VII. p.
444.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, May 23d, 1781.
Sir,
As I have heard in times past, that the treasury has frequently been
in want of hard money, to comply with engagements made with the
approbation of Congress, and sometimes obliged to obtain it on terms
inconsistent with the dignity of government, and not very consonant
to the public interest, I would wish to guard against the like
inconveniences by importing from foreign countries a supply at least
sufficient to pay rents of the houses and offices necessarily employed
for the Continental service; also to answer, as far as may be, the
calls for secret service. And even if I could devise the means of
obtaining it, I should suppose it would be agreeable to bring such
sums as may answer other valuable purposes; but as it cannot be
imported but at the risk of being captured by the enemy, and the
danger of the elements, you will perceive the necessity of my being
authorised by Congress to enter on and execute this business at the
risk, and for account of the Continent, on the best terms in my power.
The sum may be limited if thought needful; although I should suppose
it is not possible in our circumstances to obtain too much; yet the
sum to be risked in any one bottom may very properly not exceed a
certain amount in a line of battle ship or frigate, and a smaller in
any one merchant vessel. Should Congress think proper to authorise
these measures, as I hope they will, the private journals will be most
proper to insert the proceedings in; as a want of secrecy may endanger
the money.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO ALEXANDER HAMILTON.
Philadelphia, May 26th, 1781.
Sir,
It is some time since I received your performance, dated the 30th of
April last. I have read it with that attention, which it justly
deserves, and finding many parts of it to coincide with my own
opinions on the subject, it naturally strengthened that confidence,
which every man ought to possess to a certain degree in his own
judgment.
You will very soon see the plan of a bank published, and subscriptions
opened for its establishment, having already met with the approbation
of Congress. It only remains for individuals to do their part, and a
foundation will be laid for the anticipation of taxes and funds, by a
paper credit that cannot depreciate. The capital proposed fell far
short of your idea; and, indeed, far short of what it ought to be; but
I am confident if this is once accomplished, the capital may
afterwards be increased to almost any amount. To propose a large sum
in the outset, and fail in the attempt to raise it, would be fatal. To
begin with what is clearly within our power to accomplish, and on that
beginning to establish the credit, that will inevitably command the
future increase of capital, seems the most certain road to success.
I have thought much about interweaving a security with the capital of
this bank, but am apprehensive it would convey to the public mind an
idea of paper being circulated on that credit, and that the bank in
consequence must fail in its payments, in case of any considerable run
on it; and we must expect, that its ruin will be attempted by external
and internal foes. I have, therefore, left that point to the future
deliberations of the Directors of this bank, to whom in due time, I
shall communicate your address.
I esteem myself much your debtor for this piece, not merely on account
of the personal respect you have been pleased to express, but chiefly
on account of your good intentions; and for these, and the pains you
have taken, I not only think, but on all proper occasions shall say,
the public are also indebted to you.
My office is new, and I am young in the execution of it.
Communications from men of genius and abilities, will always be
acceptable, and yours will ever command the attention of, Sir, your
obedient humble servant,
ROBERT MORRIS.
* * * * *
TO MAJOR GENERAL PHILIP SCHUYLER.
Philadelphia, May 29th, 1781.
Dear Sir,
You will probably have heard that Congress have done me the honor to
bestow their confidence, by appointing me to the important station of
Superintendent of Finance of North America; a station that makes me
tremble when I think of it, and which nothing could tempt me to
accept, but a gleam of hope, that my exertions may possibly retrieve
this poor distressed country from the ruin with which it is now
threatened, merely for want of system and economy in spending, and
vigor in raising the public moneys. Pressed by all my friends,
acquaintances, and fellow citizens, and still more pressed by _the
necessity_, the _absolute necessity_, of a change in our monied
system, to work salvation, I have yielded, and taken a load on my
shoulders, which it is impossible to get clear of without the faithful
support and assistance of those good citizens, who not only wish, but
will promote the service of their country. In this light I now make
application to you, Sir, whose abilities I know, and whose zeal I have
every reason to believe. The object, however, before me, is not of
such magnitude as to require any great exertion of either at present,
although it is of sufficient importance to induce the invocation.
General Washington is distressed for want of an immediate supply of
flour, and as I am not even yet fairly entered on the execution of my
office, and when I do, have to meet an empty treasury, and a totally
exhausted credit, it must be some time before funds can be created or
money be commanded for any purpose whatsoever; and as I do not know
any gentleman of such resources as General Schuyler, he seems the most
likely of all men to give assistance under the present circumstances.
I must, therefore, request that you will take the most speedy and
effectual measures to deliver to the order of his Excellency, General
Washington, one thousand barrels of flour, which I am sure you will
purchase and cause to be transported on the most reasonable terms that
are practicable. No time must be lost, but the flour must be sent down
in the parcels as fast as procured. The Pennsylvania Bank had all the
flour they supplied to the army, secured with outside lining hoops on
each head of every barrel, and the weight and tare marked on each
cask. If you were to cause this to be done, and add to the mark your
name, it would save a waste of flour, oblige the Issuing Commissary to
take notice of an account for the weights as well as barrels, and
teach the army to think that they are indebted to your exertions for a
seasonable supply.
I have the means of raising hard money to pay for this flour, and the
charges on it; but the longer time I am allowed to do it, the more I
can consult the public interest. I take it for granted, that you can,
upon your own credit and engagements, either borrow the money for a
few months, necessary to accomplish this business; or that you can
make the purchases on such credit, without giving higher prices; and
for your reimbursement, you may either take me as a public or a
private man, for I pledge myself to repay you with hard money wholly,
if required, or part hard and part paper, if you so transact the
business. In short, I promise, and you may rely that no consideration
whatever, shall induce me to make a promise, that I do not see my
capability to perform, that I will enable you to fulfil your
engagements for this supply of flour, if you find it convenient, you
may draw on me for hard money or paper, payable in such sums, and at
such times, as you can conceive may not be inconvenient, judging by
what I have said on this subject. Should good bills on France be
wanted, at about ---- hard money your currency, for five livres
tournois, I will furnish them, drawn or endorsed by myself, for the
whole, or any part of this purchase.
I hope we shall hereafter supply our army by contracts, and your
information and observations on this subject would be very obliging.
Perhaps if you are not fully employed otherwise, you might start some
worthy man under your patronage, that might render essential service
to the public, with proper advantage to himself and connexions in this
line.
I am, Dear Sir, yours, &c.
ROBERT MORRIS.
_P. S._ Remember, that I put absolute dependence on you for this one
thousand barrels of flour, and it must be sent to the army directly.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, June 4th, 1781.
Sir,
Having been informed by several members of Congress, as also by his
Excellency, the Chevalier de la Luzerne, that it was determined to put
the management of the moneys lately granted by his Most Christian
Majesty under my direction, in order that they might be punctually
applied to the purposes for which the grant was made, viz. a vigorous
prosecution of the present campaign; I had, in conjunction with the
Minister of France, formed some arrangements for drawing part of this
money into immediate use; but, on applying to the Secretary of
Congress, I do not find that any act has been passed giving me
authority over the moneys so granted; consequently, all proceedings
must stop until the previous steps are taken by Congress.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, June 8th, 1781.
Dear Sir,
In a private letter, which I did myself the honor to write you on the
6th instant, I announced the appointment I have received from the
honorable Congress, to the office of Superintendent of the Finances of
the United States of North America; and I now beg leave to address you
in my official character.
Congress have thought proper to commit to me the disposition and
management of the money granted to the United States by his Most
Christian Majesty, in aid of our operations for the present campaign,
in order that the same may be solely applied to that use; and for this
reason, I have found it necessary to keep the whole sum of this grant
separate and distinct from any other, so that its application may at
any time be clearly seen. Instead, therefore, of drawing upon your
Excellency, who have many other bills running upon you, I have judged
it expedient to name Messrs Le Couteulx & Co., bankers in Paris, to
receive the money from his Majesty's Ministers, so that they may be
able to honor my bills with acceptance whenever they appear, and
punctually to acquit them as they fall due. I have written to Messrs
Le Couteulx, that you would join and support them in any application
that may become needful to his Majesty or his Ministers, which I hope
you will readily do.
And, on the other hand, your attention to the interest of this country
will lead you to inform yourself whether the house of Le Couteulx and
Company, are as perfectly safe and rich as they ought to be, to
entitle them to this trust. They are represented to me as one of the
safest and most prudent banking houses in Europe; and his Excellency,
the Minister of France at this place, now writes to have five hundred
thousand livres tournois deposited with them, on account of the United
States, subject to my drafts or orders. Should their credit not
entitle them to this trust, you will please to interfere, and consult
with M. Necker what banker to employ in such case, directing those you
do employ, to accept and pay my drafts. However, I imagine these
gentlemen will be found sufficiently safe.
Should it be more agreeable to M. Necker that any other banker be made
use of, give me the name and write me the propriety of such
alteration, and I shall acquiesce in such change immediately on the
receipt of your letter, for I have no partiality in public business.
All I wish is to act with security, and to the best advantage.
If you think it proper to inquire into the terms on which the bankers
will receive and pay this money, and settle their commissions on the
most reasonable footing, I shall be happy in your doing so. I do not,
however, wish to give you any trouble that is not proper and
necessary; being, with the highest respect, your Excellency's most
obedient, humble servant,
ROBERT MORRIS.
* * * * *
TO MESSRS LE COUTEULX & CO., BANKERS IN PARIS.
Philadelphia, June 8th, 1781.
Gentlemen,
In a private letter, I have already informed you of my appointment, by
the honorable Congress, to the office of Superintendent of the
Finances of the United States of North America; and in that character
I now address you.
His Most Christian Majesty, having been graciously pleased to grant an
aid of money for the purpose of invigorating our operations during the
present campaign, I find it convenient to make use of your house as
bankers to receive from his Majesty's Ministers such sums as they may
have occasion to deposit, in order that you may accept and pay my
drafts on you as fast as they shall appear. His Excellency, the
Minister Plenipotentiary of France at this place, now writes to his
Court, at my request, desiring that five hundred thousand livres
tournois may be placed in your hands thirty days after the receipt of
his letter, the said sum to be subject to my drafts or orders, and I
shall proceed to draw upon you as fast as purchasers offer for the
bills; therefore, I beg you will be prepared to honor my bills, drawn
as Superintendent of Finance, whenever they offer; for I would not, on
any account, that there should be the least demur; and I am confident,
that his Most Christian Majesty's Minister of Finance will enable you
punctually to make payment as they fall due. I shall communicate this
matter to his Excellency, Benjamin Franklin, Minister Plenipotentiary
from these States to the Court of Versailles, who will join you in any
application that may become necessary in this business; which,
however, I expect will be conducted much to your satisfaction. And as
it may become important, I hope your attention to it can be relied on,
and that you will render the charges as moderate as possible.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO M. DE LA LUZERNE, MINISTER OF FRANCE.
Philadelphia, June 8th, 1781.
Sir,
The honorable Congress having thought proper to invest me with the
power, disposition, and management of the moneys granted by his Most
Christian Majesty to the United States, for the purpose of assisting
them to carry on the present campaign with vigor, I have, with your
concurrence, taken some arrangements for drawing it into the uses for
which the grant has been made; and in conformity with your promise, I
pray you to write immediately to his Majesty's Ministers, that they
cause the sum of five hundred thousand livres tournois to be
deposited with Messrs Le Couteulx & Co., bankers in Paris, for account
of the United States of North America, and subject to my drafts or
orders as Superintendent of Finance of the said United States.
This deposit I hope may, without inconvenience, be made in thirty days
after the receipt of your letter; and I shall proceed to draw on
Messrs Le Couteulx & Co. in full confidence thereof, until my bills on
them shall amount to the said sum of five hundred thousand livres
tournois, when I will give you timely notice, that another deposit may
be made for the like purpose, and by this means I hope we shall
occasion as little trouble to his Majesty's Minister of Finance as the
nature of this transaction will admit of.
With great respect and esteem, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR RESPECTING THE NATIONAL BANK.
Philadelphia, June 11th, 1781.
Sir,
No doubt you have seen in the public papers, the plan for establishing
a National Bank, the necessity of which everybody sees, that allows
himself the least time for reflection on the present state of public
credit. All the public bodies in America have, more or less, lost the
confidence of the world as to money matters, by trying projects and
applying expedients to stop a course of depreciation, which original
errors had fixed too deeply to admit of any radical cure.
It is vain to think of carrying on war any longer by means of such a
depreciating medium, and at the same time an efficient circulation of
paper that cannot depreciate, is absolutely necessary to anticipate
the revenues of America. A National Bank is not only the most certain,
but will prove the most useful and economical mode of doing so. It is,
therefore, of the utmost importance that this first essay, confined as
it is in point of capital, should be brought into action with the
greatest expedition. I am sensible that plans of public utility,
however promising and pleasing they may be on their first appearance,
soon grow languid, unless it be the particular business of some man,
or set of men, to urge them forward; this may be said to be my duty in
the present instance. But as I cannot be everywhere, I must apply for
support to gentlemen of your character and zeal for the service of
their country, requesting in the most earnest manner, that you will
urge your friends and fellow citizens to became proprietors of this
bank stock.
Every subscriber will find his own interest benefited in proportion to
the capital he deposits, and I dare say few will find the other parts
of their fortunes to yield them so large or so certain an income as
the stock they may have in the bank; and at the same time they will
have the satisfaction to be considered forever as the promoters of an
institution that has been found beneficial to other countries, and
inevitably must be so in the highest degree to this; an institution,
that most probably will continue as long as the United States, and
that will become as useful to commerce and agriculture in the days of
peace, as it must be to government during the war.
The capital proposed is but small, when the extent and riches of the
United States are considered; but when put in motion, the benefits
flowing from it will be so perceptible, that all difficulty about
increasing the capital or securing its credit, will vanish, and we
shall only have to appeal to the interest of mankind, which, in most
cases, will do more than their patriotism; but there have been, and
will continue to be, many instances, where interest is sacrificed to
patriotism; and in that belief, I ask you to devote some of your time
to this infant plan, which, as it gathers strength, may in the end
prove the means of saving the liberties, lives, and property of the
virtuous part of America. My good opinion of you is an excuse for
giving you this interruption.
I am, Sir, yours, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Philadelphia, June 21st, 1781.
Sir,
I find that the new payment of the moneys due to the subscribers to
the Pennsylvania Bank materially injures and impedes the subscription
to the National Bank. At the same time, I am informed, that Congress
are unwilling to dispose of the bills lodged as a security, lest the
Minister of the United States at Madrid should be incommoded by it. I
have the honor to observe to your Excellency, that if these bills
shall be submitted to my disposal, I think I can pay the debts, above
mentioned, and cause the greater part of the money to be subscribed to
the National Bank, thereby rescuing, in some measure, the public
credit and forwarding the service, while, at the same time, I shall
put the bills in such a train of negotiation, that at least a very
considerable time must elapse before they can be presented, and
probably they may not be presented at all.
I have the honor to be, &c.
ROBERT MORRIS.[33]
FOOTNOTES:
[33] _July 4th._ I met the Directors of the Pennsylvania Bank, and a
number of the subscribers to that bank called, at my desire; and I
proposed that they should transfer their subscriptions from the
Pennsylvania to the National Bank, and deliver up to me the bills of
exchange deposited by Congress with the Directors as security; and I
undertook to place the amount of what remained due to them from
Congress, in the hands of Messrs Clymer & Nixon, in payment of such
transferred subscriptions to the National Bank; which all that were
present agreed to. _Diary._
* * * * *
TO B. FRANKLIN.
Philadelphia, July 13th, 1781.
Sir,