gentlemen of Baltimore to permit any vessels, which may be in that
port to come up to the Elk to assist us in transportation. I have
little doubt, from the cheerfulness with which they furnished the
Marquis de Lafayette last winter, that they will comply with your
requisition on the present occasion. But lest there should be a
necessity for the interference of the Executive of the State, I have
written to Governor Lee, upon that and other matters. I enclose the
letter under flying seal for your information, and you will be good
enough to forward it by a chain of expresses, which is established.
Any vessels, which may be procured in the Chesapeake, should
rendezvous as soon as possible in Elk river.
You will be pleased to make the deposit of flour, rum, and salt meat,
at the head of the Elk, which I requested in a former letter.
I am very fearful, that about fifteen hundred barrels of salt
provisions, and thirty hogsheads of rum, which I directed to be sent
from Connecticut and Rhode Island, under convoy of the Count de
Barras, would not have been ready when the fleet sailed from Newport.
Should that have been the case, the disappointment will be great. I
would wish you to see whether a like quantity of those articles can be
procured in Philadelphia, or in Maryland, if we should find that they
have not gone round from the eastward.
I must entreat you if possible to procure one month's pay in specie
for the detachment, which I have under my command. Part of the troops
have not been paid anything for a long time past, and have upon
several occasions shown marks of great discontent. The service they
are going upon, is disagreeable to the northern regiments, but I make
no doubt, that a _douceur_ of a little hard money would put them in
proper temper. If the whole sum cannot be obtained, a part of it will
be better than none, as it may be distributed in proportion to the
respective wants and claims of the men.
The American detachment will assemble in this neighborhood today. The
French army tomorrow.
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
TO DONALDSON YEATES.
Office of Finance, August 28th, 1781.
Sir,
The express which carries this letter will bring you one from Colonel
Miles, on the same subject. It is necessary, that vessels be procured
as speedily us possible, to transport a body of from six to seven
thousand men from the head of the Elk to Virginia, with their
necessary apparatus. You will, therefore, collect them at the head of
the Elk, on the 5th of September, and us soon after as may be, engage
them by the day on the cheapest terms you can, to be paid in hard
money, and obtain as long a credit as possible. There will be little
or no risk of the vessels, and therefore you may insure them to the
owners, if that will tend to obtain them either sooner or cheaper. The
express has letters to William Smith and Matthew Ridley, of
Baltimore, on this subject, and they will give you their advice and
assistance, as will some other gentlemen, to whom I have written,
should either be necessary. He has also letters to the Governor of
Maryland, who will I am confident give every aid, which the Executive
authority of the State can afford. You will therefore either apply to
the Governor or not, as circumstances shall require.
Any engagements you enter into on this account, shall be fulfilled;
but I must again request, that you will be as economical as the nature
of the business will permit. I expect and rely on the exertion of your
utmost industry and attention and am, Sir, very respectfully, &c.
ROBERT MORRIS.
* * * * *
TO B. FRANKLIN.
Philadelphia, August 28th, 1781.
Sir,
Herewith I send you triplicates of my letters of the 13th and 14th of
July last, and duplicates of my letters of the 19th and 21st of July
last. I have not yet executed the plan mentioned in mine of the 21st
of July, of drawing bills on you, for reasons, which it is not
necessary to enumerate at present.
Since my letter to you of the 8th of June last, I have found it
necessary to apply to the Minister of his Most Christian Majesty in
this place, to direct another sum of five hundred thousand livres to
be deposited with Messrs Le Couteulx &. Co., and I am now drawing
bills for that sum, wherefore I must pray your Excellency to take
measures, that they be put in cash to answer my drafts. Although I
have no doubt that this will be done on the Chevalier de la Luzerne's
application, yet as his letters may miscarry, or other unavoidable
misfortune happen, I take this additional precaution, because it is of
the utmost importance to the United States, that these bills be duly
honored.
The last advices from Europe inform us of M. Necker's resignation and
removal, which occasions much speculation, as to the causes which
produced this event. I should be glad to hear from you upon that
subject.
We learn from Boston the arrival of the frigate Magicienne, with a
large store ship laden with clothing, &c. for the United States;
another store ship put back to Corunna, as is said, having been
dismasted in a gale of wind. If this be so, it is a loss which will be
more easily supplied than that of the Lafayette, which ship we are
informed was taken and carried into England.
Colonel Laurens's embarkation on board a frigate for this place, with
money, is also announced, and I hope she will speedily arrive. The
Boston account of the 16th of August, mentions the arrival of the
Magicienne in fifty days. If Colonel Laurens had then sailed, he must
now have been out sixtytwo days, which is a very long period for a
single frigate to be engaged in that voyage. If that frigate arrives
safe, with five hundred thousand dollars, which is, as I am informed,
on board of her, it will relieve me from many very great difficulties,
which I have now to struggle with, and give a much better appearance
to our affairs, as it will enable us to operate with far more vigor
and activity.
It is now a very long time since we have had any tidings of Mr Adams.
We have indeed been informed, though not from himself, that he had
opened a loan for a million of florins; but we are much in the dark
as to the success of it, as well as many other particulars relative to
his situation, which would be very interesting.
_September 7th, 1781._ Since writing the above letter, Colonel Laurens
has come to this city from Boston, at which place he arrived in the
Resolve, with the two store ships under her convoy, after a passage
uncommonly tedious. It is certainly unnecessary to mention how great
pleasure we have received from this occurrence.
Another equally pleasing, is the arrival of the Count de Grasse in the
Chesapeake Bay, on the 30th of August, with twentyeight sail of the
line, viz. one of one hundred and ten guns, three of eightyfour guns,
nineteen of seventyfour guns, four of sixtyfour guns, and one of fifty
guns. The Count de Barras sailed from Rhode Island on the 24th, so
that probably he has before this made a junction with the Count de
Grasse, although he had not on the 31st of August. A detachment of
about seven thousand men is on the way to Virginia, of which about two
thousand and five hundred were at the head of the Elk. As many more
must have arrived there this evening, and the remainder tomorrow.
There are landed from the fleet, three thousand men, and we are told
these will receive an addition of one thousand and five hundred
marines, besides the army under the command of the Marquis de
Lafayette, which was before in Virginia, and consists of about five
thousand, including the militia. Lord Cornwallis was entrenched at
York, in Virginia, with five thousand men. General Washington takes
the command of the southern army in person. The fleet under the Count
de Grasse took on its way a packet from Charleston to Great Britain,
on board of which was Lord Rawdon. From this combination of
circumstances, you will perceive, that we have reason to flatter
ourselves with the expectation of pleasing occurrences.
With the greatest respect, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, August 28th, 1781.
Sir,
My circular letter to the Governors, of the 25th of July, a copy
whereof was sent to Congress on the 6th of August, contains a solemn
assurance, that all the accounts of the several States with the United
States should be speedily liquidated, if I could possibly effect it,
and that my efforts for that purpose should be unceasing. If after
this declaration, I could possibly have forgotten it, the reference
made to me, on the 23d instant, of two letters from the State of
Massachusetts and a report on them of the 14th instant, would have
called for an immediate attention.
I have thought much on this subject and feel very anxious about it.
The settlement of those accounts is of the utmost importance, for,
until it be completed, the States will persuade themselves into an
opinion that their exertions are unequal. Each will believe in the
superiority of its own efforts. Each claim the merit of having done
more than others; and each continue desirous of relaxing to an
equality of the supposed deficiencies of its neighbors. Hence it
follows, that every day they become more and more negligent, a
dangerous supineness pervades the continent, and recommendations of
Congress, capable in the year 1775 of rousing all America to action,
now lie neglected.
The settlement of former accounts being considered as a thing
forgotten, men, naturally reasoning from them to those which are now
present, conclude, that they also will drop into forgetfulness, and
consider everything not furnished as so much saved. The Legislatures
will not call forth the resources of their respective constituents.
The public operations languish. The necessity of purchasing on credit
enhances expense. The want of that credit compels to the use of force.
That force offends. The country is daily more plunged in debt, and its
revenues more deeply anticipated. A situation so dangerous calls for
more accurate principles of administration, and these cannot too
speedily be adopted. The settlement of accounts is the first step, but
it is necessary not only that this settlement be speedy but that it be
final; for, if it be not final, the disputes on that subject will have
the same baleful influence with those now subsisting. Disunion among
the States must follow in the event. Disgust must take place in the
moment. The same opprobrious indolence will continue, and in the
meantime it is to little purpose, that our country abounds in men and
subsistence, if they cannot be called forth for her defence.
All the requisitions of Congress upon the several States contain a
provision for future liquidation, when the quotas shall have been
ascertained according to the article of confederation. The evil
consequences which have followed from this are very evident, and the
great advantages which would have resulted from rendering every
appointment final and conclusive are equally evident. But those, who,
on such ground, build a censure against Congress, ought to consider,
that they could not act otherwise, before the confederation was
completed.
The changes which have already happened in the affairs of the several
States at the different periods of the war are so great, that any
apportionment formerly made, however equitable then, would be
inequitable now. To determine the quota, therefore, from the present
situation, or from any particular moment of the past, must be equally
improper. But the quotas must be determined at some period or other.
If we suppose it already done, we shall clearly see how many
inconveniences would have been avoided, and how many advantages
gained. True it is, that let this final adjustment of the quota take
place when it will, difficulties will arise by reason of those changes
in the circumstances of the several States, which have been already
mentioned. But those difficulties will be daily increased, and become
at length insurmountable. If a final determination of past quotas were
made now, it must be arbitrary in some degree; but if we carry our
ideas forward to the end of several years, it must be still more
arbitrary. To attempt a settlement of accounts subject to after
revision, and after determination, is still worse; for it is liable to
every objection, which lies against leaving them unsettled, to every
difficulty, which could attend the final settlement, and has the
additional evil, that by placing the several precise balances
immediately before the eyes of Congress, they could take no step,
which would not be charged with partiality. I will dwell no longer on
this subject, for I trust the United States in Congress will agree
with me in one leading position, that after taking a general view of
the past, from the commencement of the war to the present moment, a
certain rate or quota should be established for each State of the
whole expense now incurred, excepting the public debt of the United
States. I will presently assign the reasons for this exception; but
that general position which I have advanced is the corner stone;
without it nothing can be done, at least such is my conviction. Hence
we have the irresistible conclusions,
1st. That while a demand of Congress is the mere request of a loan,
instead of a complete appointment of ---- it will not be attended to.
2dly. That while from the unsettled state of public accounts, the
individual States are led to suppose that there is a balance in their
favor, by superior exertions for which they neither have, nor are like
to have any credit, they will relax their efforts.
3dly. That the final settlement of these accounts cannot take place
until the quotas be finally adjusted.
4thly. That a settlement of accounts, which is not final will [blank
in the manuscript.]
I feel, therefore, a demonstration, that the past circumstances and
situations of the several States should be candidly reviewed, that the
apportionment of all the past expenses should be made now, and that it
should be final. Thus, if the whole expense be stated at one hundred,
each State would be declared chargeable with a certain number of parts
of that hundred, and thus a standard will be established by which to
determine the proportion, let the amount be what it may. I know it is
not possible to do strict justice, but it is certain that less
injustice will be done in this mode than any other, and that without
adopting it nothing effectual can be done.
After the proportion is fixed the principles on which to admit the
various charges will next come into consideration. I know it will be
difficult to draw such a line as will apply to all cases, or which
will be absolutely just even in those to which it does apply. Yet
neither of these objections ought to prevent Congress from laying down
these general rules, which shall on the whole appear to be most
equitable. The various requisitions have been made payable at certain
days. The value, therefore, of the demand ought to be estimated at the
day of payment fixed by each, and the proper mode of doing this would
be by the table of depreciation, formed the 29th day of July, 1780, in
pursuance of the Act of Congress of the 28th day of June preceding. It
is possible that this table is not perfect; but we must remember, that
it has been fixed by the authority of the United States, and acted
upon. It ought, therefore, to be adhered to; for there is always less
of inconvenience and danger in pursuing an established rule, than in
the frequent change of rules; because the former is at the worst only
a partial, but the latter is a general evil. Assuming then this table
as a standard, the account of the requisitions previous to the 18th of
March, 1780, will stand thus; by the resolutions of the 22d of
November, 1777, there is payable as follows.
dollars. ninetieths.
January 1st, 1778, 1,250,000 dollars,
equal to 857,222 20
April 1st, 1778, 1,250,000 dollars,
equal to 621,423 55
July 1st, 1778, 1,250,000 412,864 52 4
October 1st, 1778, 1,250,000 268,472 2
By the resolutions of January 2d,
1779, and May 21st, 1779, there
is payable by January 1st, 1780,
60,000,000 dollars, equal to 2,042,500
By the resolution of October 6th,
1779, payable by February 1st,
1780, 15,000,000, equal to 451,041 60
March 1st, 1780, 15,000,000, equal to 401,450 30
---------- ----
5,054,982 39 4
Thus the whole demand made on the States, from the beginning of the
war to the 1st of March, 1780, is but little more than five millions
of dollars. And yet this demand, moderate as it is, has not been
complied with.
By the various resolutions of Congress on the subject of requisitions
it is provided, that interest at six per cent shall be charged on the
sums due, and allowed on the sums paid. The sums paid do, in no
instances, amount to the value of the demand, but each State has an
account against the Union for advances, by supplies furnished of
various kinds, and by payments made to militia. As no taxes were laid
by the States, the sums they expended were procured partly from the
continental treasury and partly by the emission of State currency,
which tended to depreciate the continental paper, and impede its
circulation. A consideration of the mischiefs arising from this
circumstance will much diminish the merit, which is assumed from those
advances. If the State paper had not been issued, the same services
might have been performed by an equal sum of continental money, and
the general torrent of depreciation would then have swept away those
expenditures, which now exist as State charges. From hence it might in
strictness be inferred, that the continent should not be charged for
the amount of State paper advanced, and that amount be estimated at
its value when redeemed by the State, especially as Congress have not
only urged the States not to emit money, but even to call in what they
had already emitted. But this inference would perhaps be rather too
strong. No such idea has been formerly advanced by Congress, and
therefore the States, not having had due notice, might conceive the
determination at this late period to be inequitable.
On the whole, therefore, it may be proper to estimate the sums paid by
them according to the rule already noticed, especially as the method
of redeeming the old continental money formerly adopted, will, if
pursued, work some degree of equality. For it will create a demand for
the old money in those States, which, by the amount of their own
emissions, have expelled it from themselves and forced it upon their
neighbors. There must, however, be a distinction made in the advances
of the several States; much of them has been for the pay and support
of the militia, and much of that for the private defence of particular
States, and of that again a part has frequently been unnecessary. To
go, at this late period, into a close investigation of the subject, is
impracticable, and perhaps dangerous. Neither would it answer any
valuable purpose. Some general rule, therefore, must be adopted, and
propriety seems to require, that credit should be given only for those
expenditures on militia, which were previously authorised and required
by express resolutions of Congress. With respect to all other
articles, there is also to be noted a distinction between those which
were furnished by the several States previously to the 22d of
November, 1777, when the first demand of money was made, and those
made subsequently to that period. I would propose that the former, as
also the militia expenses not expressly authorised as above mentioned,
should be taken together into one account, and the specie value of the
whole estimated. That the amount of both, throughout America, should
be apportioned by the same standard with the other expenses. And that
the several actual expenditures of each State should be settled and
liquidated with its proportional part of the whole, and the several
balances carried to their respective debits and credits in the general
accounts. These balances should bear interest at six per cent to the
18th of March, 1780. Thus, suppose the whole of those expenses should
amount to one million of dollars, and that the State A be held to pay
nine, and the State B ten parts out of every hundred; the State A
would be accountable for ninety thousand dollars, and the State B for
one hundred thousand dollars. And if it should appear, that the former
had paid one hundred thousand, and the latter only ninety thousand,
the former would be credited, and the latter debited ten thousand
dollars, with six per cent interest.
I would propose, that the advances made by the several States,
subsequent to the 22d of November, and prior to the 18th of March,
1780, excepting those to militia not authorised, should be estimated
as aforesaid, and carried to account regularly upon the advances of
money made to each from the Continental treasury, and the
apportionment of the several demands made by Congress, in like manner
with the moneys paid to their order. And that interest, at six per
cent, should be charged or credited upon the several balances, until
the 18th of March, 1780.
I would further propose, that on this day these balances, and those
before mentioned, should be liquidated together, and the final
capitals be considered as principal sums, bearing interest at six per
cent. Thus, supposing the State A, in one account, to be credited ten
thousand dollars, amounting, with interest, to eleven thousand, and
debited in the other account five thousand, amounting, with interest,
to six; in that case, the final balance, on the 18th of March, would
be a credit of five thousand dollars.
On the 18th of March, we come to a new and more enlightened era of
public accounts. The appointment formerly mentioned as preliminary to
a settlement, will determine the quota due by each State for the two
hundred millions of old Continental money, valued at forty for one.
These resolutions of the 18th of March, 1780, not having been fully
complied with, there appears to be a propriety in the following plan.
1st. To charge the several States with their proportions of it at that
rate.
2dly. To fix some future day for the full compliance with the
resolution.
3dly. To receive old paper at the rate of forty for one, in discharge
of those proportions, until that day; and,
4thly. To charge the balances then unpaid in specie, with a debit and
credit of interest at six per cent in the manner before mentioned.
I am sensible, that many persons now condemn the resolutions of the
18th of March, and among these are found some of those who warmly
advocated it previously to that period. It is not my business to enter
into arguments on the subject. Be those resolutions wise or unwise,
they are acts of the sovereign authority, which have been obeyed by
some, if not by all, and therefore those who have obeyed ought not to
suffer by their obedience. They are acts for the redemption of bills
issued by that sovereign, and they have formed the standard of public
opinion with respect to those bills. If, therefore, for argument's
sake, it were admitted, that the measure was impolitic and unjust,
yet, now that it has taken place, there would certainly be both
injustice and bad policy in altering it. The respective States have
either obeyed it in the whole, or in part, or have totally neglected
it. The first have a right to insist upon a compliance with it. The
second must have so far accommodated themselves to it, as that
interior mischiefs would arise from changing the system. And the last,
whatever may be their claim to superior wisdom, will at least
acknowledge, that the precedent of disobedience once established, our
Union must soon be at an end, and the authority of Congress reduced to
a metaphysical idea. Besides, the claim of such States must ultimately
rest on the foundation of their own neglect; and as this will always
be in their own power, it will be sufficient to rear any argument for
any purpose.