necessary, as there is no general market for bills of exchange to the
southward, but that Philadelphia, in that respect, is as Boston to the
eastern States. They answered, that they expected to procure their
supplies with money, without occasion to draw bills, but if it
happened otherwise they would pursue my advice. In regard to the
articles of provisions, forage, wood, transportation, &c. necessary
for their army, and which, when at camp, I had offered to procure for
them on the same terms as for the continental army, by contract, I
proposed to postpone that matter, as it might be best to continue
their present method of supplies during the active scenes they are
likely to be engaged in, as their Agents have given satisfaction, and
are acquainted in the country where they are going, and that I could
advertise for proposals to supply them the ensuing winter, and lay
before them such offers or proposals as I should receive. This
appeared very satisfactory, and here that subject rests for the
present. _Diary._
* * * * *
TO THE COUNT DE ROCHAMBEAU.
Office of Finance, September 6th, 1781.
Sir,
In consequence of the conversation I had the honor to hold with your
Excellency yesterday, and your promise to supply the United States
with the sum of twenty thousand dollars, for an immediate purpose, to
be replaced on the 1st day of October next, I have directed Mr Philip
Audibert, the bearer of this letter, to wait upon you. I shall be
much obliged to your Excellency if you will be pleased to direct, that
the above sum be paid to Mr Audibert, and that duplicate receipts be
taken of him, one of which I pray may be transmitted to me. I will
take care that the money be replaced at the time agreed upon. With
every wish for the most brilliant success to the allied arms, and for
your own personal glory, I am, very respectfully, &c.
ROBERT MORRIS.
* * * * *
TO GEORGE WASHINGTON.
Chester, September 6th, 1781.
Dear General,
Permit me most sincerely to congratulate you on the arrival of the
French fleet, and to express my warmest wishes for the success of your
future operations.
As soon as I arrive at Philadelphia, I shall give directions for the
Deputy Paymaster to repair to the head of the Elk, and make the
payment of a month's pay in specie to the detachment under the command
of General Lincoln. I wish the States had enabled me to do more, but
it is to be lamented, that the supineness of the several Legislatures
still leaves the servants of the public to struggle with unmerited
distresses.
It shall, however, be a part of my business to rouse them into
exertion, and I hope soon to see the army better paid than heretofore,
and I confide, that your Excellency will, with every other public
officer, exert your influence to aid me in this necessary task.
With the greatest respect, &c.
ROBERT MORRIS.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Head of the Elk, September 6th, 1781.
Dear Sir,
Every day discovers to me the increasing necessity of some money for
the troops. I hope by this time you are provided to give a month's
pay. I find it of the last importance to hasten forward myself to join
the Marquis de Lafayette as soon as possible. I may leave this in a
few hours; I cannot do it, however, without entreating you in the
warmest terms to send on a month's pay at least, with all the
expedition possible. I wish it to come on the wings of speed.
I am, Dear Sir, &c.
GEORGE WASHINGTON.
* * * * *
GEORGE WASHINGTON TO ROBERT MORRIS.
Head of the Elk, September 7th, 1781.
Dear Sir,
I have received your two favors of yesterday. I find myself so pressed
by circumstances, that it will be impossible for me to stay at this
place till the payment of the money committed to Mr Audibert can be
effected. I must leave the head of the Elk this afternoon or early
tomorrow morning. I shall however leave instructions with General
Lincoln to do all that is necessary on the occasion.
The sum of twenty thousand dollars will fall much short of the sum
necessary.
The five hundred guineas on my own account I have received.
I have the honor to be, &c.
GEORGE WASHINGTON.
* * * * *
TO GEORGE WASHINGTON.
Office of Finance, September 10th, 1781.
Dear Sir,
The sole intent of this is to acknowledge the receipt of your two
letters of the 7th instant; that which related to the month's pay you
would see was answered by the steps previously taken, but I am a good
deal disappointed and put to inconvenience by the money at the Elk
falling short of the object, which obliges me to send money thither
that was absolutely necessary to fulfil my engagements here. I must
struggle through these difficulties, but the doing so requires that
attention and time, which ought to be bestowed upon greater objects.
The letter respecting the criminal was too late, the poor fellow was
gone. I am sorry for it, and remain your Excellency's most obedient,
&c.
ROBERT MORRIS.[44]
FOOTNOTES:
[44] _September 18th._ Several members of Congress and others called
on me last evening, desirous to know the reasons for my writing to Mr
Jay a letter of the 15th of August last, which being intercepted,
Rivington has published, and graced with his remarks, wherein I direct
Mr Jay to protest certain bills of exchange drawn by authority of
Congress. The explanation is easily given, as the ship on board which
I had remitted these bills was taken. The moment I knew her fate, I
judged it proper to stop payment of the bills, lest the enemy, with
their usual cunning, might attempt to procure the money; but I am now
of opinion, that the Captain sunk them when captured. _Diary._
* * * * *
B. FRANKLIN TO ROBERT MORRIS.
Passy, September 12th, 1781.
Dear Sir,
I have received your letters of July 13th, 14th, 19th, and 21st, all
at once, by way of L'Orient. The originals of those you mention to
have sent by Major Franks are not yet come to hand, nor have I heard
of his arrival in Spain.
Your letters of June 6th and 8th were remarkably lucky in getting to
hand. I think I have received seven of the copies you had the
precaution to send of them. I enclose copies of my answers.
I have now the pleasure to acquaint you, that I have obtained a
promise of the sum I wanted to pay the bills I had accepted for the
purchases made in Holland; so that your supplying me with remittances
for that purpose, which I requested, is now unnecessary, and I shall
finish the year with honor. But it is as much as I can do, with the
aid of the sum I stopped in Holland; the drafts on Mr Jay and on Mr
Adams much exceeding what I had been made to expect.
I had been informed, that the Congress had promised to draw no more
bills on Europe, after the month of March last, till they should know
they had funds here; but I learn from Mr Adams, that some bills have
been lately presented to him, drawn June 22d, on Mr Laurens, who is
in the tower, which makes the proceeding seem extraordinary. Mr Adams
cannot pay these bills, and I cannot engage for them; for I see by the
minutes of Congress you have sent me, that though they have stopped
issuing bills drawn on the Ministers at Madrid, and the Hague, until
they shall be assured that funds are provided for paying them, they
have left open to be sold those drawn on their Minister at Versailles,
funds or no funds; which, in the situation you will see I am in by the
letters of the Count de Vergennes, terrifies me; for I have promised
not to accept any drafts made on me by order of Congress, if such
should be after the time above mentioned, unless I have funds in my
hands, or in view, to pay them. After its being declared to me, that
such bills could not be provided for, and my promise not to engage for
them, it will be impossible to ask for the money, if I should accept
them; and I believe those bills of Mr Ross must go back protested.
The projected loan in Holland has of late some appearances of success.
I am indeed told it is agreed to by the States; but I do not yet think
it so certain as to venture, or advise the venturing, to act in
expectation of it. The instant it is assured, I will send you advice
of it by every opportunity, and will, from time to time, send parts of
it in cash by such ships of war as can conveniently take it.
I cannot write to you fully by this opportunity. I will not, however,
delay acquainting you, that having the fullest confidence in your
assurances of enabling me to pay them, I shall cheerfully accept your
bills for four hundred thousand livres.
Captain Gillon has sailed from Holland, without taking under his
convoy the two vessels that were freighted to carry the goods
purchased by Captain Jackson, in Holland. There has been terrible
management there; and from the confusion in the ship, before and when
she sailed, it is a question if she ever arrives in America.
They are hard at work here, in providing the supplies to replace those
lost in the Marquis de Lafayette.
With best wishes of success to you in your new employment, and
assurances of every aid I can afford you, I am, Dear Sir, &c.
B. FRANKLIN.
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, September 20th, 1781.
Sir,
His Excellency the Count de Rochambeau having generously made me a
very considerable advance of money, I was thereby enabled to give the
detachment of our army under General Lincoln, one month's pay, which
was earnestly pressed upon me by the Commander in Chief. I promised M.
de Rochambeau, that I would replace the sum borrowed, on the first of
next month, wherever the army should then be.
The movement which lately took place to the southward, has been
attended with a variety of expenses, which have been very heavy, and
have absorbed all the money I could command, notwithstanding which
many demands still remain unsatisfied, so that I cannot obtain the
sums necessary for the service from any ordinary means.
As it is probable that the moneys which the Count de Grasse has
brought, will prevent any immediate want by the fleets or armies of
his Most Christian Majesty in the States of Maryland and Virginia, I
am induced to believe, that no inconvenience would arise from
delaying the payment, until the money in Boston shall be brought
forward, which will be speedily, as a very active person has gone for
it, who will lose no time in the business committed to him.
Should your Excellency be of this opinion, I shall be glad if you will
signify it to me, and if that be in your power, that you will extend
the time when payment is to be made. But if you think the money must
be forwarded to Virginia immediately, you may depend that I will
instantly endeavor to procure it, and although that cannot be done but
with great difficulty and much loss, yet nothing shall deter me from
complying with my engagements.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF THE COUNCIL OF PENNSYLVANIA.
Office of Finance, September 20th, 1781.
Sir,
I am honored with your Excellency's letter of this date, and most
sincerely wish my situation was such as to justify a promise of aid,
equal to the present necessities; I mean the necessities that will be
created by the call of the militia at this time, but unluckily the
late movements of the army have so entirely drained me of money, that
I have been obliged to pledge my personal credit very deeply in a
variety of instances, besides borrowing money from my friends, and
advancing, to promote the public service, every shilling of my own. In
this situation I was preparing an application to the honorable Council
and Assembly for relief from my advances, from the State of
Pennsylvania, and this will be the more necessary, as this alarm
whilst it lasts will cut off all possibility of recruiting the
treasury. Those who possess hard money will keep it, and those who
have demands will become more eager for payment, therefore, all I can
promise is the use of my credit, and an exertion of any influence I
may have in favor of such measures as may be deemed necessary. At the
same time I do not recede from my first opinion, that the enemy do not
meditate any attack on this city.
I have the honor to be, &c.
ROBERT MORRIS.[45]
FOOTNOTES:
[45] _September 21st._ At one o'clock I waited on the President of the
State of Pennsylvania, at his house in Market Street, and met there Mr
Peters and Mr Cornell, of the Board of War, General St Clair, General
Irvine, and General Irwin, of the militia. This conference lasted a
considerable time, and in its consequences took up the rest of the
day. I gave it as my opinion, that Sir Henry Clinton did not intend
for this city, nevertheless, as the inhabitants are alarmed and
uneasy, I agreed to the propriety of being prepared, although I
lamented the expense such preparations would put us to. I advised the
placing a garrison at Mud Island, and putting that place in a posture
of defence, and mentioned the plan proposed to me by Mr Paine, of
collecting immediately one quarter's rent from all the houses in
Philadelphia, in order to have an immediate supply of money to defray
the expenses, &c. _Diary._
* * * * *
TO M. DE LA LUZERNE.
Office of Finance, September 25th, 1781.
Sir,
I received last night your Excellency's billet requesting to be
informed of the amount of the bills drawn by me; as Superintendent of
the Finances, on Messrs Le Couteulx & Co. of Paris, under the sanction
of your engagements.
This communication I intended making to your Excellency in consequence
of the conversation that passed between us a few days since; but it
was only yesterday that I completed the delivery of such bills as had
been sold previous to that conversation, which amounted to fiftyseven
thousand seven hundred and eighty livres; and now on summing up the
whole I find, that I have drawn one hundred and eightyone sets of
bills, all at sixty days' sight, in favor of various persons to whom
they have been sold, amounting to nine hundred and one thousand and
eighteen livres, four sous, and eight deniers tournois; of these bills
three hundred and seventysix thousand one hundred and twentytwo
livres, ten sous, have been sold at five shillings and six pence for
five livres, and five hundred and twenty four thousand eight hundred
and ninetyfive livres, fourteen sous, eight deniers, at six shillings
for five livres; by which it appears the discount does not exceed
sixteen and five eighths per cent on the value in Europe; and were
this money to be imported I suppose the freight and insurance might
amount to nearly the value of that discount; if so, this mode of
bringing it into use is not a bad one. Besides I must again observe,
that by a union of management in the sale of bills drawn for the
service of his Most Christian Majesty's fleets and armies, and those
drawn for account of the United States, still better prices might be
obtained, nay, I should not despair of trying to raise the price of
exchange to par, by means of partial importations of money, and
passing bills before the expenditure thereof, so that necessity might
not have any influence in fixing the price.
What your Excellency has said to me respecting the advances made this
year by his Majesty to the United States, has left on my mind those
impressions you intended to make. You may depend, Sir; that it is my
wish, and shall be a part of my study, to render these States as
little troublesome to his Majesty as possible, and I shall probably
have many opportunities to convince you, that it is a fixed point with
me, that the United States, to become truly independent, must trust
more to their own exertions, and lean but lightly on their allies.
But, Sir, you must remember the situation, in which I found their
affairs; you are not ignorant, that although I have cut off entirely
many sources of expense, and curtailed others, yet that I have not
been able to obtain either supplies of money or permanent revenue from
the States, which however I attribute chiefly to the recess of the
several Legislatures during the greatest part of the time that I have
been in office, for I hope and expect that they will severally attend
to the calls upon them, when they shall come to know their real
situation.
But in the meanwhile, what am I to do if the means of supplying
indispensable wants are cut off? The important operations now carrying
on by General Washington depend so materially on the performance of my
engagements, that the most fatal consequences may ensue from any
breach of them. Your Excellency well remembers, that you thought
yourself justifiable, in giving me assurances, that Messrs Le Couteulx
& Co. should be supplied with one million five hundred thousand livres
tournois, to answer my drafts to that extent; the produce whereof to
be employed in the service of the present campaign. You will also
recollect, that previous to my journey in August to camp, I judged it
necessary to know, whether that sum was the whole on which I could
place dependence, because, as the General's operations would in a
great measure depend on the aids I could afford him, it was absolutely
incumbent on me to be informed of their extent in every channel,
through which I expected them to flow.
Your Excellency, convinced of the propriety of my observations, and of
the actual necessities of our situation, ventured the assurance of
another million of livres. Therefore, whilst I was at camp, during the
consultations on the measures, I gave his Excellency reason to
believe, that the amount of two millions five hundred thousand livres
of bills on France, in conjunction with the resources provided by
Congress, should be brought to the support of his operations. Counting
upon this as certain, General Washington has taken his measures
accordingly.
It has been my study to make the bills as productive as circumstances
would permit, and to apply the money to the purposes for which it was
granted, under the most scrupulous and assiduous attention to the
principles of economy, and I may hazard the opinion, that no money has
been more frugally or usefully expended by the United States during
the war, without the least danger of being put in the wrong.
You are sensible that the money which arrived with Colonel Laurens,
although landed on the Continent, cannot be brought into use until its
arrival here; and although I have sent for it, yet it is but now on
the road, and the General cannot stop his operations, nor can I refuse
or defer compliance with my engagements until its arrival. The ruinous
consequences that would follow, must appear too strong and clear to a
gentleman of your reflection and information, to need any other
demonstration than the bare mention of the facts. Consequently your
Excellency will be well convinced of the absolute necessity of
permitting me to draw to the extent agreed upon, and I hope his
Majesty's Ministers will be too strongly impressed with apprehensions
of the fatal consequences that would follow any neglect of my bills,
to suffer the least inattention to them; and as the sum in total will
not be of such magnitude as to occasion great inconvenience, I hope
his Majesty will find cause to applaud your zeal and attention upon
the occasion.
A committee of Congress have laid before me the communications your
Excellency has lately made to Congress, which will claim my utmost
attention, and your Excellency will do me the justice to believe that
my most strenuous endeavors shall be to promote what is so strongly
urged by his Majesty's Ministers, the most spirited exertions of these
States to drive the enemy from our country. And that my affection for,
and gratitude to France, are unalterably fixed, as is also my respect
and esteem for your Excellency's person and character. Being, Sir,
your most obedient, &c.
ROBERT MORRIS.
_P. S._ Upon a more exact calculation of the sale of bills, a few of
which were sold a little higher than the rest, I find that nine
hundred one thousand and eighteen livres, four sous, eight deniers,
produced fiftytwo thousand two hundred and eleven pounds, ten
shillings and ninepence, Pennsylvania currency; which is equal to one
hundred twentyfive thousand three hundred and seven French crowns, and
seven tenths of a crown, at eight shillings four-pence, Pennsylvania
currency, for a crown; and the same number of livres reduced into
crowns at six livres each crown, is one hundred fifty thousand one
hundred sixty-nine and four sixths crowns. Consequently the discount
is little more than sixteen and a half per cent.
* * * * *
TO THE SPEAKER OF THE ASSEMBLY OF PENNSYLVANIA.
Office of Finance, September 28th, 1781.
Sir,
As the Honorable House of Assembly are now sitting, and have before
them the several letters which I had the honor to write during their
recess to his Excellency the President in Council, I shall now
endeavor to state, in a short manner, the situation of accounts
depending between Pennsylvania and the United States, and propose such
measures, as, I think, will lead to a speedy and satisfactory
settlement of them.
In the treasury books of the United States, there is an account
current open for transactions commencing with the revolution, and
continuing to the 18th of March, 1780, wherein the State of
Pennsylvania stands charged with advances, made at different periods
during that time, to the amount of four millions four hundred and
fortyfour thousand and seven hundred dollars, and has credit to the
amount of one hundred and thirtysix thousand and ninetyeight dollars.
Most of these advances were made whilst money was valuable; but I
expect that the expenditures of the State on behalf of the United
States kept pace with the advances made, and that, probably, when this
account comes to be settled, there may be no great balance either way;
but in this respect, I do not pretend to speak with certainty.
However, I must here observe, that every State in the Union has an
account of the same sort depending; wherefore, I propose that
Congress should fix such general principles as will tend to do justice
on the settlement of the whole, and appoint immediately Auditors to go
through the whole; so that when the balance of each shall be justly
ascertained, it may be paid or received, according as the same shall
happen to be due, to or from the United States, and this will put
every State on an equal footing so far.
You will find by the resolution of Congress of the 22d of November,
1777, Pennsylvania is called on to pay, in four quarterly payments,
commencing on the 1st day of January, 1778, the sum of six hundred and
twenty thousand dollars. By the resolutions of the 3d and 5th of
January, 1779, Pennsylvania is called on to pay, during that year, the
sum of one million nine hundred thousand dollars. By the resolution of
the 21st of May, 1779, Pennsylvania was called on to pay, by the 1st
of January, 1780, the sum of five millions seven hundred thousand
dollars. By the resolutions of the 6th and 7th of October, 1779, a
monthly tax of fifteen millions is called for, of which the proportion
of Pennsylvania is two millions three hundred thousand dollars, making
for the two months payable the 1st of February and the 1st of March
four millions and six hundred thousand dollars. Thus the whole of
these requisitions appears to have amounted to twelve millions eight
hundred and twenty thousand dollars, of which there appears to have
been paid on different drafts to the amount of six millions four
hundred and fifty four thousand one hundred and fourteen dollars and
two thirds, leaving a balance still due of six millions three hundred
and sixtyfive thousand eight hundred and eightyfive dollars and one
third, of the old emissions.
By the resolution of the 10th of March, 1780, the fifteen millions of
monthly taxes is continued so as to include thirteen months, making
for the proportion of Pennsylvania twenty nine millions nine hundred
thousand dollars; of which sum ten millions six hundred thousand
dollars have been paid into the Loan Office; of consequence, there
remains due nineteen millions three hundred thousand dollars.
By the resolutions last mentioned, new money was to be issued, at the
rate of one for every twenty of the old; of which new money Congress
had reserved four tenths to their disposal, and the Treasury Board
have already issued warrants to the amount thereof. The State paper
being of equal value with the new emission, and the former not bearing
interest, I have thought it most for the benefit of this State and of
the United States, to draw from the treasurer a sum of the new State
paper equal to the balance of those four tenths, and have accordingly
done so.
By the resolution of the 26th of August, 1780, the States are called
on to pay into the treasury by the last day of December then next
ensuing, three millions of dollars, of which the quota of Pennsylvania
is four hundred and sixty thousand dollars.