bill of lading and invoice of five hundred barrels of flour, which is
all fresh and good, and a considerable part of it superfine. This
flour I have caused to be shipped to your address, on account and risk
of the United States of North America. Be pleased to receive it as
quickly as may be from the ship, make the most advantageous sale of
it, which you can, and remit the net proceeds in Mexican dollars,
consigned to my order, for account and at the risk of the United
States. I expect you will not charge more than five per cent for
transacting the business, that is, two and a half per cent on the
sales, and the same on the returns.
I have also enclosed a bill of exchange, drawn by myself on Messrs Le
Couteulx & Co. bankers in Paris, to the amount of five hundred
thousand livres tournois; this bill is at sixty days' sight, and you
may depend it will be punctually paid, for I have the authority of the
Court of Versailles to draw it, and every assurance I could wish. You
will observe, by my letter to the Governor, that he is to have the
refusal of this bill; you will therefore offer it to him in the first
instance. When I consider the risk, which must attend sending money
from Havana to Cadiz, and the remittances, as well private as public,
which are to be made from one place to the other, I cannot but
persuade myself, that unless the government and the people are alike
blind to their interests, good bills must sell at a very considerable
advance. Should the Governor decline taking the bill on Paris, as it
is not probable that any one private person would purchase it, you may
either remit it to the House of Le Couteulx & Co. in Paris, or to the
House of Messrs. J. L. & L. Le Couteulx & Co. at Cadiz, as may be most
convenient for your operations. You will then draw on the House to
whom you remit the bill, and sell your bills to the same amount.
Should you remit to the House in Cadiz, let me know it, that I may
write and apprize them of it; but this I shall do provisionally,
beforehand, so that they may be prepared for you.
I have also, as you will perceive, written to his Excellency on the
subject of certain other bills of exchange, drawn on Mr Jay. You will
endeavor to get the money for these, if possible; and in case it is
required, you will enter the stipulations there mentioned, as to the
shipment of flour. In this last case, get the flour fixed at as high a
rate as possible, and let me have due notice, so that I may punctually
cause to be fulfilled, whatever contracts you shall, on the part of
the public, have entered into.
Should his Excellency be inclined to make those advances of money,
which I have so earnestly pressed upon him, you will be able the
sooner to despatch the frigate, which I hope will be done without
delay. But as there is a risk in placing large sums on board of any
one vessel, I am to observe, that if there should be any fast sailing
vessels about to leave the Havana at the same time, and if in
consideration of convoy, they will take the public money freight free,
you will then prudently distribute it among them, and direct Captain
Nicholson to give them signals, and to take them under his convoy. But
I must caution you, that on no consideration is any private property
to be covered as belonging to the public, either to save the duties or
for any other purpose. You will, therefore, use all proper vigilance
to prevent everything of this sort, should it be attempted. If there
are not such vessels as Captain Nicholson and you shall approve of
ready to sail, then ship the whole money in the frigate; for the risk
of being waylaid by the enemy in consequence of any unnecessary delay,
is greater than that of being otherwise intercepted.
It is unnecessary for me to mention to you, that we want money
exceedingly. This very measure must convince you of it. Exert yourself
therefore to get it, and you will merit much at the hands of your
country. Should you not succeed in getting the whole sum I have asked
for, get as much as you possibly can; and if the Governor should
decline advancing any money on the bills drawn by order of Congress on
Mr Jay, perhaps the Intendant may accept your contract for flour, and
take these bills in security, or you may possibly borrow on their
credit from individuals, to be repaid when I shall send you shipments
of flour, which I will cause to be done so soon as I shall hear from
you to this effect.
I have forbidden Captain Nicholson to cruise, but should fortune
enable him to bring a good prize into Havana, the Continent has one
half, and you must send that half to me in dollars. Whatever supplies
the frigate is absolutely in need of, you must let her have; but I
entreat, that the expenses may be as moderate as possible, and the
best way to secure this is to despatch her quickly, for the moment
they get clear of the salt water air, and feel, their land tacks on
board, every soul of them will try to get his hands into your pockets;
but take care.
I have desired Captain Nicholson to consult with and obey you whilst
in Havana, and to push off whenever you say the word. I shall send you
flour by private vessels, for the sake of getting money back, and
write you further, as occasion may require.
I am, Dear Sir, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, July 19th, 1781.
Sir,
The foregoing are duplicates of my letters of the several dates there
mentioned, by Major Franks, who has sailed for Cadiz. I now enclose to
you duplicate copies of the letters and resolutions, referred to in
mine of the thirteenth.
I do not write to Colonel Laurens, because I know not whether he is
still in France, and because I am confident you will make to him all
necessary communications. I pray you, if he is still with you, to
present my compliments to him, and inform him of the reasons of my
silence. Colonel Laurens's letter of the 9th of April last, from
Versailles, has been received, and I am induced to hope, that the ten
millions of livres mentioned in it, to be borrowed in Holland, will
be, as he says he shall request, advanced from the treasury of France.
He mentions also a promise of the Marquis de Castries to make
immediate arrangements for the safe transportation, of the pecuniary
and other succors destined hither. It would be well that the money, or
as much of it as possible, were in heavy half Johannes. Whether this
letter may arrive in time I know not, but if it should, you will, I
hope, be able to effect my views.
If the fifteen millions of livres I mentioned in my letter of the
13th, can be obtained, it will be best that they should be retained in
France, provided the ten millions be sent to America; for in that
case, the exchange may, I believe, be put upon such a footing as to
answer every valuable purpose. Of consequence the risk will be saved
to America, and France will not suffer by the exportation of so much
coin. To this it may be added, that a loan will probably be more
easily obtained, if the days of payment of the money by the
subscribers to it be somewhat distant, which will answer very well for
bills of exchange, though not quite so well for the exportation of
money.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, July 21st, 1781.
Sir,
I have now to inform you, that the State of Pennsylvania had emitted
five hundred thousand pounds in bills of credit, funded in such
manner, that there could be no reasonable doubt of their redemption.
But the public confidence had been so impaired, that these bills, soon
after they came out, rapidly depreciated, notwithstanding the solidity
of the funds by which they had been secured. The executive authority
of Government, therefore, declined issuing more of them than were then
in circulation (being one hundred and thirty thousand pounds), and
called together the Legislature. The Assembly, at their late meeting,
took measures for the collection of a very considerable tax,
sufficient to absorb all the paper then in circulation, and which was
receivable in taxes, as also a considerable balance in specie. It is
therefore evident, that if the tax has time to operate before any more
of the paper be issued, it must necessarily rise in value.
The Assembly did me the honor to commit this sum of five hundred
thousand pounds to my care, for the purpose of paying to Congress a
balance due on the resolutions of that honorable body, of the 18th of
March, 1780, and of procuring the specific supplies which had been
called for, the greater part of which had been unpaid. In this
situation, it has been my study to effect both these objects, without
making any new issues of the paper money. I cannot easily describe to
you the good consequences which would follow from the appreciation of
it. You will partly conceive them, when I inform you, that it is now
at five for one, and that my expectation of specific supplies, or
rather of furnishing rations to the amount of them, is very much
founded upon the rise of its value.
Finding, however, that the balance of money due to the United States
has been already drawn for by them, and that the holders of those
drafts are very clamorous for payment, I must put money into the hands
of the proper officer immediately. To accomplish this, I have fallen
upon an expedient, which, while it answers that purpose, will be
productive of another very considerable advantage. To explain which, I
must previously inform you, that I have lately refused to draw bills
on Messrs Le Couteulx & Co. for any other than specie; so that the
paper will no longer answer the purpose of procuring a remittance to
Europe. I shall, at the same time, borrow such of it as I can discover
to have been hoarded, and by paying it to the holders of the drafts
drawn by Congress, throw it again into circulation. I shall then draw
bills on you for four hundred thousand livres, payable at six months'
sight or more, for which I expect to get four hundred thousand paper
dollars; a sum sufficient to satisfy the demand. I shall draw on
Messrs Le Couteulx & Co. in your favor, to this amount, payable at
sixty days' sight, which will probably leave four months for my
operations; but at any rate, it will leave three months, which will be
amply sufficient; and, therefore, in three months after I shall have
drawn on you, I shall remit you my drafts on Messrs Le Couteulx & Co.
If in that period this money can be appreciated, it will be a gain to
the United States of the difference, which you will clearly see to be
very considerable. By this means, also, I shall so economise the funds
placed in my hands, that I can make them productive of the supplies
from this State.
In mentioning these supplies, it occurs to me, also, to make mention
of what has passed, relative to the contract you entered into for a
part of them, to the amount of four hundred thousand dollars. Colonel
Mennonville spoke to me on this subject, from the Count de
Rochambeare, shortly after my appointment. Upon considering the very
slender situation of our revenue, or rather the total want of it, and
that the several States had omitted furnishing the specific supplies
demanded of them, I told Colonel Mennonville, and told him truly, that
I had but little prospect of complying with your promise. It is not
easy to convey to your mind an idea of the pain I suffered from being
obliged to make this declaration. I felt for you, for Congress, for
America. There is no man in the world more deeply impressed than
myself with the importance of fulfilling every compact made by a
proper authority. All my reasonings, my feelings, and my experience,
have concurred in producing a thorough conviction, that it is
essential according to the principles of justice, from a regard to our
national honor, and for the sake of our general interests. I shall,
therefore, notwithstanding what has passed between Colonel Mennonville
and myself, assiduously endeavor to perform your promise, and I am
happy to add, that I am not without hopes of success.
With respect to the bills I intend to draw on you, I must apologize
for the trouble they will give you, which I hope will be but little.
It will be only necessary to accept them, and direct the holders what
banker to apply to for payment. That banker will be enabled to make
payment, by the bill I shall draw on Messrs Le Couteulx, & Co. in your
favor. Perhaps it may be most convenient to send the bill holders to
them, but this you will be the best judge of. It is unnecessary to
state any reasons to you for accepting these bills, as I cannot
suppose you will have the least hesitation on that subject. I take
this opportunity, however, of pledging myself to you, that you shall
suffer no inconvenience from honoring them with your acceptance, as I
shall most certainly remit in time the bills sufficient to discharge
all I draw on you. My reason for drawing them on you at all arises
from this circumstance, that I am desirous of keeping the transaction
entirely distinct, and that many inconveniences would follow from
drawing bills on Messrs Le Couteulx, & Co. at six months' sight for
paper, while I draw others at sixty days' sight for specie, especially
after my refusal to draw on them except for specie, which refusal was,
as you will perceive, a necessary part of my plan. Add to this, also,
that the arrangements I had made with the Minister of his Most
Christian Majesty would not permit it. When this transaction shall be
finished, that is, when my remittances to you and my drafts on you are
all paid, be pleased to send me copies of the bankers' accounts.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
CIRCULAR TO THE GOVERNORS OF THE STATES.
Philadelphia, July 25th, 1781.
Sir,
I had the honor to write to you on the ---- instant, enclosing a
certified copy of the account of your State, as it stands in the
treasury books of the United States. I now pray leave to recall your
attention to it.
It gives me great pain to learn, that there is a pernicious idea
prevalent among some of the States that their accounts are not to be
adjusted with the continent. Such an idea cannot fail to spread
listless languor over all our operations. To suppose this expensive
war can be carried on without joint and strenuous efforts, is beneath
the wisdom of those who are called to the high offices of legislation.
Those who inculcate maxims, which tend to relax these efforts, most
certainly injure the common cause, whatever may be the motives which
inspire their conduct. If once an opinion is admitted, that those
States who do the least and charge most will derive the greatest
benefit, and endure the smallest evils; your Excellency must perceive
that shameless inactivity must take the place of that noble emulation,
which ought to pervade and animate the whole Union. It is my
particular duty, while I remind my fellow citizens of the tasks, which
it is incumbent on them to perform, to remove, if I can, every
impediment which lies in the way, or which may have been raised by
disaffection, self interest, or mistake. I take, therefore, this early
opportunity to assure you, that all the accounts of the several States
with the United States, shall be speedily liquidated if I can possibly
effect it, and my efforts for that purpose shall be unceasing. I make
this assurance in the most solemn manner, and I entreat that the
consequences of a contrary assertion may be most seriously weighed and
considered, before it is made or believed.
These accounts naturally divide themselves into two considerable
branches, viz. those which are subsequent to the resolutions of
Congress of the 18th of March, 1780.[37] The former must be adjusted
as soon as proper officers can be found and appointed for the purpose,
and proper principles established so as that they may be liquidated in
an equitable manner. I say, Sir, in an equitable manner, for I am
determined that justice shall be the rule of my conduct, as far as the
measure of abilities, which the Almighty has been pleased to bestow,
shall enable me to distinguish between right and wrong. I shall never
permit a doubt, that the States will do what is right; neither will I
ever believe that any one of them can expect to derive advantage from
doing what is wrong. It is by being just to individuals, to each
other, to the Union, to all; by generous grants of solid revenue, and
by adopting energetic methods to collect that revenue; and not by
complainings, vauntings, or recriminations, that these States must
expect to establish their independence and rise into power,
consequence and grandeur. I speak to your Excellency with freedom,
because it is my duty so to speak, and because I am convinced that the
language of plain sincerity is the only proper language to the first
magistrate of a free community.
The accounts I have mentioned as subsequent to the resolutions of the
18th of March, 1780, admit of an immediate settlement. The several
States have all the necessary materials. One side of this account
consists of demands made by resolutions of Congress, long since
forwarded; the other must consist of the compliances with those
demands. This latter part I am not in a capacity to state, and for
that reason I am to request the earliest information, which the nature
of things will permit, of the moneys, supplies, transportation, &c.
which have been paid, advanced, or furnished, by your State, in order
that I may know what remains due. The sooner full information can be
obtained, the sooner shall we know what to rely on, and how to do
equal justice to those who have contributed, and those who have not,
to those who have contributed at one period, and those who have
contributed at another.
I enclose an account of the specific supplies demanded of your State,
as extracted from the journals of Congress, but without any mention of
what has been done in consequence of those resolutions. Because as I
have already observed, your Excellency will be able to discover the
balance much better than I can.
I am further to entreat, Sir, that I may be favored with copies of the
several acts passed in your State since the 18th of March, 1780, for
the collection of taxes and the furnishing supplies, or other aids to
the United States; the manner in which such acts have been executed,
the times which may have been necessary for them to operate, and the
consequences of their operation. I must also pray to be informed of so
much of the internal police of your State as relates to the laying,
assessing, levying, and collecting taxes. I beg leave to assure your
Excellency, that I am not prompted either by an idle curiosity, or by
any wish to discover what prudence would dictate to conceal. It is
necessary that I should be informed of these things, and I take the
plain, open, candid method of acquiring information. To palliate or
conceal any evils or disorders in our situation, can answer no good
purpose; they must be known before they can be cured. We must also
know what resources can be brought forth, that we may proportion our
efforts to our means, and our demands to both. It is necessary, that
we should be in condition to prosecute the war with ease, before we
can expect to lay down our arms with security, before we can treat of
peace honorably, and before we can conclude it with advantage. I feel
myself fettered at every movement, and embarrassed in every operation
from my ignorance of our actual state, and of what is reasonably to be
asked or expected. Yet when I consider our real wealth and numbers,
and when I compare them with those of other countries, I feel a
thorough conviction, that we may do much more than we have yet done,
and with more ease to ourselves than we have yet felt, provided we
adopt the proper modes of revenue and expenditure.
Your Excellency's good sense will anticipate my observations on the
necessity of being informed what moneys are in your treasury, and what
sums you expect to have there, as also the times, by which they must
probably be brought in. In addition to this, I must pray you to
communicate the several appropriations.
A misfortune peculiar to America, requires that I entreat your
Excellency to undertake one more task, which perhaps is far from being
the least difficult. It is, Sir, that you will write me very fully as
to the amount of the several paper currencies now circulating in your
State, the probable increase or decrease of each, and the respective
rates of depreciation.
Having now stated the several communications, which are most
indispensable, let me entreat of your Excellency's goodness, that they
may be made as speedily as possible, to the end, that I may be early
prepared with those propositions, which from a view of all
circumstances, may be most likely to extricate us from our present
difficulties. I am also to entreat, that you will inform me when your
Legislature is to meet. My reason for making this request is, that any
proposals to be made to them, may arrive in season for their attentive
deliberation.
I know that I give you much trouble, but I also know, that it will be
pleasing to you, because the time and the labor will be expended in
the service of your country. If, Sir, my feeble but honest efforts,
should open to us the prospect of American glory; if we should be
enabled to look forward to a period, when, supported by solid revenue
and resources, this war should have no other duration or extent than
the wisdom of Congress might allow, and when its object should be the
honor and not the independence of our country; if with these fair
views the States should be roused, excited, animated, in the pursuit,
and unitedly determining to be in that happy situation, find
themselves placed there by the very determination; if, Sir, these
things should happen, and what is more, if they should happen soon;
the reflection that your industry has principally contributed to
effect them, would be the rich reward of your toils, and give to your
best feelings their amplest gratification.
I have the honor to be, &c.
ROBERT MORRIS.
FOOTNOTES:
[37] It stands thus in the manuscript, but there seems to be an
omission of what is meant by the _first branch_ of the accounts.
* * * * *
B. FRANKLIN TO ROBERT MORRIS.
Passy, July 26, 1781.
Dear Sir,
I have just received your very friendly letter of the 6th of June
past, announcing your appointment to the superintendence of our
finances. This gave me great pleasure, as from your intelligence,
integrity and abilities, there is reason to hope every advantage, that
the public can possibly receive from such an office. You are wise in
estimating beforehand, as the principal advantage you can expect, the
consciousness of having done service to your country; for the business
you have undertaken is of so complex a nature, and must engross so
much of your time and attention, as necessarily to injure your
private interests; and the public is often niggardly even of its
thanks, while you are sure of being censured by malevolent critics and
bug-writers, who will abuse you while you are serving them, and wound
your character in nameless pamphlets; thereby resembling those little
dirty insects, that attack us only in the dark, disturb our repose,
molesting and wounding us, while our sweat and blood are contributing
to their subsistence. Every assistance that my situation here, as long
as it continues, may enable me to afford you, shall certainly be
given; for, besides my affection for the glorious cause we are both
engaged in, I value myself upon your friendship, and shall be happy if
mine can be made of any use to you.
With great and sincere esteem, I am ever, Dear Sir, &c.
B. FRANKLIN.
* * * * *
B. FRANKLIN TO ROBERT MORRIS.
Passy, July 26th, 1781.
Dear Sir,
I have received the letter you honored me with, of the 8th of June
past, acquainting me, that as Superintendent of Finance, you have
named Messrs Couteulx, & Co. at Paris to receive from his Majesty's
Ministers the money granted to Congress, that they may be enabled to
honor your bills whenever they appear; and you intimate a desire to be
informed of the responsibility of that house.