upon to pay two hundred and seventythree thousand eight hundred and
thirtytwo dollars and two thirds, in quarterly payments, commencing
the 1st day of May last; and by the resolution of the 16th of March,
1781, Pennsylvania is called upon to pay one million and fiftynine
thousand eight hundred and sixtythree dollars, in quarterly payments,
commencing the 1st day of June last. All these are payable in the new
emission, or specie. Thus the whole of the requisitions will, on the
1st day of March next, amount to one million seven hundred and
ninetythree thousand six hundred and ninetyfive dollars and two
thirds. Of this sum there appears to have been paid seventeen thousand
seven hundred and forty dollars; wherefore, there will still remain a
balance of one million seven hundred and seventyfive thousand nine
hundred and fiftyfive dollars and two thirds.
By a note from David Rittenhouse, I find that he has in his hands one
hundred and thirtyeight thousand nine hundred dollars of the new
emission, and fourteen millions one hundred and fortyfive thousand six
hundred dollars of the old, in which latter sum, nevertheless, is
included some State money received at seventyfive for one, the amount
of which cannot be determined until it is sorted and counted;
wherefore, the old emission may be estimated at about fourteen
millions.
On this state of things, I take the liberty of proposing to the
honorable House, that all the old money be immediately paid in, and
the new taken out, which will be about seven hundred thousand dollars,
and that, with what is now in the Treasurer's hands, will make eight
hundred and thirtyeight thousand nine hundred dollars. I further
propose, that this be paid to me, as Superintendent of Finance, on
account of the above balance of one million seven hundred and
seventyfive thousand nine hundred and fiftyfive dollars and two
thirds, which will then be reduced to nine hundred and thirtyseven
thousand and fiftyfive dollars and two thirds. I further propose, that
the remaining sums of old continental, due from the State, be
collected and paid as soon as possible, which, besides discharging
that demand, will also enable the State to receive the further sum of
two hundred and sixty thousand dollars of the new emission, and that,
being paid in as before, will still further reduce the balance against
the State to six hundred and seventytwo thousand and fiftyfive dollars
and two thirds. There are at present in circulation of the new
emission three hundred and ninetyone thousand one hundred dollars,
which ought certainly to be brought in as soon as possible, and
applied to the same purposes already specified; by which means the
eventual balance payable in specie, would be two hundred and eighty
thousand nine hundred and fiftyfive dollars and two thirds; to which
must be added, thirteen thousand three hundred and thirtyfour dollars,
required by Congress on the 8th day of January last to be paid in
specie; being together one hundred and ten thousand three hundred and
fiftyeight pounds, twelve shillings and sixpence. To explain all which
more fully, I enclose the accounts, number one, two, and three, to
which I pray leave to have reference.
The specific supplies will still remain to be provided for, in order
that all the demands of Congress may be fully answered; but I hope
that the specie tax now collecting will go a great way towards the
accomplishment of this necessary object, and at any rate, as the
state of paper, notwithstanding every effort, has not yet appreciated
to par, I would propose that no more of it be issued from the
treasury, except as equal to gold and silver, and then the collection
of the present, taxes will at least prevent any depreciation, and in
the meantime, the fund on which it was emitted, become more
productive. The next Assembly will be able to take such additional
measures as may be necessary, further to raise the value of it. This
can only be done by holding it up from circulation, on the one hand,
and on the other, by raising taxes, in which the public receive it as
equivalent to the precious metals.
It is my determination, as Superintendent, to deposit all the money of
the new emission, which shall be received from the several States, in
the Continental Treasury, and not to issue one shilling of it, unless
compelled by absolute necessity; which, I hope, will not be the case,
if the States take measures to pay in the eventual balances.
Whether the House will find it consistent with the situation of their
constituents to lay an additional tax this session, is for them to
determine; but it is my duty to mention it, which I do from a
conviction that it is necessary. They will perceive, that very great
arrearages are due, and they must be sensible, that taxation alone can
support the public credit, or enable government to carry on the war.
With the greatest respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE COUNT DE ROCHAMBEAU.
Office of Finance, October 1st, 1781.
Sir,
This being the day agreed upon for repayment of the moneys your
Excellency was so kind as to advance me, I do myself the honor of
assigning to you the reasons why it is not done. I had determined to
make every effort and every sacrifice for the sake of complying with
my engagements. But his Excellency, the Minister of France, perceiving
that it would be very inconvenient to me, and being convinced that you
were not in immediate want of it, was so kind as to assure me, that he
would write to you on the subject, and that, in the meantime, I might
delay the payment until the arrival of money from the eastward. I
shall then take care to have your advance replaced.
Being convinced, Sir, that M. de la Luzerne has already made the
proper representations to you upon the subject, I should not have
troubled you with reading this letter, but that I feel a pleasure in
seizing every opportunity to express my wishes for your success and
glory, as well as to assure you, that I am, &c.
ROBERT MORRIS.
* * * * *
TO MAJOR GENERAL GREENE.
Office of Finance, October 3d, 1781.
Sir,
I have received your letter, dated the 18th of August last, at the
high hills of Santee, and am now to thank you for it. Your
observations on public affairs are, I fear, too just, but I hope that
when our situation is thoroughly perceived by the people, they will
adopt those effectual remedies, which every friend to his country
ought to wish. That more power ought to be given to Congress is
evident now to many, and will, probably, become soon very apparent to
all. The disobedience of many States, and the partial obedience of
others, discontents every one of them, and that will, in itself, be a
reason for enabling the sovereign representative to exact a compliance
with its requisitions; but, as you justly observe, all these things
are in the womb of time, which can alone disclose the events we plague
ourselves with guessing at.
From the latter part of your letter, I perceive that you greatly
misunderstood me. When I requested you to draw on me, I meant to
extend those drafts so far as might be necessary for secret service
money, and the like small, but indispensable occasions. I well knew
that you could not, by bills of exchange, supply the wants of your
army, and, if I had thought it practicable, I should have been more
explicit, for I could not then have paid the bills you would have
drawn.
To give you an idea of my situation as to money, I think I need only
inform you, that since I have been in office, I have only received the
sum of seven thousand five hundred pounds, Pennsylvania money, from
the Treasury of this State, and that was in part payment of advances
made for them. This is all I have received from the funds of America.
It is true, that Colonel Laurens has lately arrived, and brought with
him a sum of money from France. And it is also true, that I have made
use of a very limited credit given me on France, by drawing bills of
exchange; but both of these resources, taken together, are vastly
short of what is necessary, though they have contributed to the
present operations.
I have lost no occasion of showing to the several States their
situation, but hitherto without success; and, unless some unforeseen
event turns up very speedily, it is impossible to say what may be the
consequences. However, it is our business to hope all things, and that
Providence, who has hitherto carried us through our difficulties,
will, I trust, continue his bountiful protection.
Your circumstances have long been arduous, but you have hitherto risen
so superior to them, that we should be almost as much surprised now,
if you should be unsuccessful, as we formerly were at your successes.
I wish I could contribute to render you more easy. As far as my
abilities extend, I shall do it most cheerfully; but they
unfortunately are very limited. Accept, I pray you, my good wishes,
which are almost all I have to give, and believe me to be, &c.
ROBERT MORRIS.
* * * * *
TO THE COMMISSARY GENERAL OF PURCHASES.
Office of Finance, October 4th, 1781.
Sir,
I have received your letters, dated at Alexandria the 19th, and
Williamsburgh the 23d of September last.
I am very glad that you push hard upon the States for supplies. It is,
I find, necessary that you and I should understand each other on the
subject. The General will, I dare say, take care to have as few
unnecessary mouths as possible; but, after all, a certain quantity of
provisions is indispensably necessary. Now this quantity must be
furnished by the States of Virginia, Maryland, and Delaware. If you
rely on my exertions, you will, probably, be disappointed. Should the
operations against Cornwallis fail for want of supplies, the States
must thank their own negligence. If they will not exert themselves on
the present occasion, they never will. As to all that can be said
about the failure of the one or of another kind of money, it is left
to themselves. Let them tax in money which will not fail. It is their
business to provide supplies and money too. If they neglect or omit
this necessary duty, I again repeat, they must answer for the
consequences.
I shall be glad at all times to hear from you very particularly, with
all such information as you shall think necessary. But do not lean too
hard upon me. Do not expect too much help from me. You will be
deceived and disappointed if you do. Urge the States. Urge Delaware in
particular. When I do furnish anything, it must be money. Let some of
your people, therefore, apply when you intend applications. I cannot
run about the city to purchase articles. That is the duty of an
assistant Commissary; and my time is too much, and, I hope, too well
employed, to permit it.
I am, Sir, &c.
ROBERT MORRIS.
* * * * *
TO MESSRS LE COUTEULX & CO.
Office of Finance, October 12th, 1781.
Gentlemen,
In consequence of a new arrangement taken with his Excellency, the
Chevalier de la Luzerne, Minister Plenipotentiary of France, a further
sum of money will be deposited with you, subject to my drafts on
behalf of the United States of America, so that I shall continue
those drafts, as occasion may require, until, in the whole, they
amount to one million two hundred thousand livres tournois, where I
shall stop, unless circumstances should happen to induce an extension
of this operation, of which I will advise you; and whenever it is
completed, I shall require an account current from you for the whole.
I have not yet had the pleasure of receiving from you any letters
directed to me in my official capacity, but I doubt not your punctual
care and attention to discharge all my drafts as they fall due.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE LOAN OFFICERS OF THE STATES.
Office of Finance, October 13th, 1781.
Sir,
As the organization of the Treasury Department will soon be completed,
it becomes my duty to inform you of that circumstance, and to request
that you will prepare for a full settlement of your accounts. I must
also request, that you will be pleased to make out and transmit to me
an accurate list of all the certificates issued, with their dates,
sums, and the persons to whom they were given. It will be necessary
that an account of the public debt be prepared for the public
inspection. This cannot be done until the proper materials be obtained
from the several offices; wherefore, I make no doubt that you will
exert yourself to comply with my request. As I am informed that the
late Treasury Board gave orders for sending back the blank
certificates, I suppose they are now on the way hither; but, if that
should not be the case, I must require an immediate performance of the
directions given by the Board, and I must insist that no more
certificates be issued on any pretence whatever.
With great respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE GOVERNOR OF VIRGINIA.
Philadelphia, October 16th, 1781.
Sir,
I would willingly write you an official letter by this post, on the
subject of supplies for the year 1782; but I must decline it, until I
can obtain the proper estimates, which are now preparing. In the
meantime, as I learn that your Legislature are now sitting, I write
you this private letter on that subject.
My former public letters will fully have stated my ideas as to the
present demands on the existing requisitions of Congress. I hope and
expect, that those requisitions will be immediately complied with. It
is my decided opinion, founded on the best observations I have been
able to make, and the most accurate and extensive information I could
possibly obtain, that paper emissions will no longer answer the
purpose of carrying on this war, and experience must by this time have
convinced every dispassionate observer, that specific supplies are at
once burdensome to the people, and almost useless to the government.
It is unnecessary to draw the conclusion, which I am sure will strike
your mind, that a revenue in hard money must be obtained; but I will
observe to you, that the present moment is very favorable to that
object in your State. While the war is in your country, the expenses
of it will be so diffused as to possess its inhabitants of specie, and
should it be happily removed to a distance, your commerce will bring
in resources equal to your necessities.
I take the liberty to request that you will communicate these
sentiments to my worthy friend Colonel Harrison, and I pray you to
believe me very sincerely your friend, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, October 18th, 1781.
Sir,
The honorable committee, on the letter of the Board of War of the 11th
instant, have favored me with a perusal of it. I think it my duty, on
this occasion, to express my approbation of that attention the Board
of War have paid the public service. That letter has opened a subject,
which had pressed itself strongly on my mind, and which I had
determined to mention to Congress, but was restrained by the hope,
that a review of their own proceedings, and a sense of our
difficulties would soon have rendered it unnecessary.
This matter being now before them, it would be unpardonable in me not
to enforce those sentiments, which I myself am most deeply affected
with. I am convinced, that a slight view of the situation, in which
their finances now are, will give a strong impression of the necessity
there is to guard against pecuniary solicitations from every quarter.
If the revenue were equal to the demands upon it, nothing can be more
simple and clear, than that all those demands should be speedily and
punctually paid. Unfortunately this is far from being the case. I
believe much further than many are aware of. When I say, that I cannot
command more than one twentieth of the sum necessary for the current
service of the year, I am within the strictest bounds of truth. It is
with equal truth that I assure you, that I have not since my
appointment received one shilling from any State in the Union,
Pennsylvania excepted. And from Pennsylvania I have received paper
money to the amount of the four tenths due to the United States, the
appropriation whereof Congress must be thoroughly acquainted with, and
seven thousand five hundred pounds in specie, which is applied to the
payment of contracts within the State, and still leaves a balance
against them for articles of their specific supplies which I have
furnished.
The moneys drawn for by permission of the Minister Plenipotentiary of
his Most Christian Majesty have been already applied to the public
service, and the engagements I have entered into amount to a very
considerable sum.
I enclose a few out of many articles, which immediately suggest
themselves to me. Had I sought for the smaller instances they would
have been numerous, and of course weighty. Instead of this, I have
omitted many considerable articles, such for instance, as expense of
stores for the hospitals, much of which is now due, and more to be
immediately provided for. You will perceive, that I have not even
mentioned the expense of transporting military stores, such as shot,
shells, &c. to the camp before York, which the Board of War assure me
will be very great, and indeed it must be so. Neither have I mentioned
the expense of transporting money, clothing, medicines, arms, &c. from
Boston to this place, and hence to the southward. Besides all this, I
am told it will be necessary to procure ten thousand suits of clothes
for the ensuing winter. If this be so, that article alone will amount
to at least two hundred thousand dollars.
I might go much further, but I shall only observe, that exclusive of
all these things the enclosed estimate amounts to above two hundred
thousand dollars. Yet attention must be paid to the wants of three
large armies. Congress know the extent of my means.
In this situation of things, it is proper to ask on every occasion,
before private grants of money are made, whether the public service
will not suffer by it. But this is not all, I am bound to observe,
that the expectations of our troops now in the field may be much
disappointed, and that they will conceive it unjust to dispose of any
moneys, which might be spared, unless as an equal division among them.
To press this point any further, would imply a want of that
confidence, which I really have in the wisdom and discernment of
Congress. They will see, that while the indispensable calls for money
to forward general operations continue to be so loud as to draw from
me all my private funds, it cannot be expected, that I shall pay
warrants in favor of individuals. I am sure they will feel for me,
when I mention the pain I suffer from being compelled to refuse money
on their resolutions. A regard for their honor is the second motive of
my conduct. I hope it is unnecessary to say, that a regard for the
public interest is the first. I am far from wishing to insinuate a
line of conduct to Congress; but I must place before their eyes those
facts, which it is for their honor and their interest to be informed
of. They will draw the proper conclusions.
With the most perfect respect, I am, &c.
ROBERT MORRIS.
ESTIMATE.
Dollars.
Due to the French Treasury for so much borrowed of
them at Chester, delivered at the head of the Elk, 26,000
Due to the French army, a quantity of flour
exchanged in the State of New York, to be replaced
at the southward, which will require 10,000
Due for transports hired in the Delaware and
Chesapeake, 15,000
For flour now purchasing to supply General Heath's
army, 10,000
Horses purchased last summer for the Quarter Master
General, and shortly to be paid for, 4,000
To recruit and mount Colonel Armand's Legion, 50,000
Saddles and accoutrements for General Greene's army, 14,000
Flour lately purchased in Virginia for General
Washington's army, and now due, 5,000
Articles necessary for General Greene's army and the
transportation of articles to him, and money for
essential services, 5,000
Clothing purchased on a credit for Fort Pitt and
Wyoming, 5,000
Estimate from the Navy Board at Boston, 40,000
Rum now sending on to General Washington's army, 5,000
My own money already advanced for the public service, 12,000
--------
$201,000
* * * * *
CIRCULAR TO THE GOVERNORS OF THE SEVERAL STATES.
Office of Finance, October 19th, 1781.
Sir,
I am now to address you on a subject of very great importance. I have
to detail some facts, which will demand the most serious attention
from every Legislature, and from every public officer in the United
States. It is my determination to administer the affairs intrusted to
my care according to plans, which are founded in sincerity and truth.
Convinced of the folly of our enemy, in supposing that any
considerable body of men in the United States are opposed to the
Revolution, I am persuaded that, in order to remove the greater part
of our difficulties, the first proper step is to state them fully to
the people through their representatives. It shall, therefore, be a
part of my study to prepare every transaction for the public eye, so
that the meanest individual may be in due time informed of those
affairs, in which, as a free citizen, he is interested. The various
reports, which have been circulated, the publications in the several
gazettes, and even letters from some who ought to have known better,
all these things have conspired to infuse an opinion, that every power
in Europe is favorable to us; that great sums of money are already
advanced to us, and that still greater may be obtained. Whatever may
be the fate of my administration, I will never be subjected to the
reproach of falsehood or insincerity. I, therefore, take the earliest
moment, in which I am permitted, to make those communications, which
will give an insight into our real situation.
With respect to the situation and politics of Europe, it is neither my
business to detail them, nor am I in a capacity to do it with
certainty. But this, at least, is certain, that the disposition of the
European powers, however friendly, has been too much relied upon. As a
proof I need only observe, that not a single State has acknowledged
our independence except France, although our alliance with that
respectable monarchy has now subsisted nearly four years. Yet that
monarchy is certainly the first in the world. It is in the closest
connexion with Spain. Spain has long been engaged in the war, and
still longer solicited to form a union upon the basis of the treaty
with France. The armed neutrality, which gave such splendid hopes to
many, has not yet produced the benefits expected. I will not proceed
on the ground of conjecture, nor is it necessary for me to dwell
longer on our political state with respect to foreign powers. But as
there is little reason to expect, so I hope there is no American, who
would wish an alliance with any empire on earth, until they shall be
so sensible of our importance, as to treat on principles of equality.
The public opinion, as to the conduct of other Princes and States, has
greatly injured us by relaxing our exertions. But the opinion as to
pecuniary aid has been still more pernicious. People have flattered
themselves with a visionary idea, that nothing more was necessary,
than for Congress to send a Minister abroad, and that immediately he
would obtain as much money as he chose to ask for. That, when he
opened a loan, hundreds would run to see who should have the honor of
subscribing to it, and the like. But surely a moment's reflection
should have convinced every reasonable man, that, without the clear
prospect of repayment, people will not part with their property. Have
the efforts in this country been so successful as to ground any hopes
from abroad? Or, is it to be supposed, that foreigners will interest
themselves more in our prosperity or safety, than our citizens? Or,
can it be believed, that credit will be given abroad before solid
funds are provided at home? Or, could it be imagined, that the
disorders necessarily incident to a great revolution, would be
considered as a better source of trust and confidence, than the
regularity and consistency of ancient establishments?