Ministers, requested grants, and opened loans. In Holland they have
got nothing, and in Spain but very little. Loans were expected from
individuals in Holland, but nothing of that sort has been, or probably
will be, obtained. Loans were not expected in Spain, unless from the
King, and from him they have been solicited with but little success.
The distressed situation of public affairs forced the Congress to draw
bills of exchange on their Ministers. Some were drawn on France, some
on Spain, and some on Holland. The first were honored and paid, the
others were accepted, but recourse was finally had to the Court of
France for the payment of those also. They were drawn at long sight.
The sales were slow. They were remitted from time to time, and every
opportunity afforded the Ministers of the United States to obtain the
moneys for discharging them, but in vain. Of consequence, these bills
have been regularly referred to the Court of France for payment; and
this has done us injury, by anticipating the aid, which France has
been disposed to afford us, and at the same time has justly alarmed
and greatly embarrassed the French Ministry.
These things it appears necessary that you should know, and your
Legislature will undoubtedly draw the proper inferences. They will see
how much has been suffered by delaying to call forth the resources of
our own country, and relying on the empty bubbles of hope, instead of
the solid foundations of revenue. They will, I trust, clearly see,
that all their hopes and expectations are narrowed down to what France
may give or lend. But here, as in other cases, delusion takes place of
reality. We flatter ourselves with ideal prospects, and are only
convinced of our folly, by the fatal crisis of national distress. In
order that you may clearly understand the succor afforded by France, I
enclose an account extracted from a statement lately, furnished to
Congress by the Minister Plenipotentiary of his Most Christian
Majesty.
You will observe that his Majesty granted to the United States a
subsidy for the current year of six millions of livres; and on a
representation of our distresses, he was pleased to become security
for a loan to be opened on our account in Holland. And when it
appeared, that there was but little probability of obtaining any money
there in season, he further agreed that the sum to be borrowed should
be advanced for us, in the first instance, from the royal treasury.
Thus the gift and the loan together amount to sixteen millions of
livres, which would, if in this country, be equal only to two millions
nine hundred and sixtytwo thousand nine hundred and sixtytwo dollars,
although at the rate of estimating dollars in France, it is there
equal to three millions and fortyseven thousand six hundred and
nineteen dollars. But at the highest rate of exchange, which has
hitherto taken place, this sum if drawn for, would have amounted to no
more than two millions five hundred and sixty thousand dollars. I have
been thus particular with respect to the amount of this sum, because
the difference of currencies very often tends to deceive those to whom
their real value is not a familiar subject of attention.
The enclosed account is in livres, and the two first articles contain
the total of the grant and loan, amounting to sixteen millions of
livres. The remainder contains the deductions to be made; the two
first articles whereof, amounting to two millions three hundred
thousand livres is for the payment of the bills drawn on France,
Spain, and Holland, which I have already mentioned, the produce of the
sales whereof had been applied to the public service long before my
appointment. The next article, being two millions of livres, is
appropriated to the payment of the interest bills; wherefore, no part
of it can be applied to other purposes. The fourth article, I need say
nothing of here, as it has long been in the mouths of everybody. The
fifth and sixth articles are for those stores, which were laden on
board of four transports by order of Colonel Laurens, three of which
have safely arrived, and the other put back in distress. The seventh
article, is in consequence of the loss of that valuable ship, the
Marquis de Lafayette, which contained a great number of public stores,
the replacing of which is necessary for the army and its operations,
and which will amount to that sum.
The last article contains the amount of moneys deposited to answer my
drafts, which have been made from time to time, and the produce
appropriated to the service of the current year. On the whole, there
remains a balance of three millions and sixteen thousand four hundred
and ninetynine livres. This, with the sum brought by Colonel Laurens,
may be considered as of the value of about one million of dollars,
which is the utmost; for it would exceed that only by twentyone
thousand five hundred and seventyfour dollars, if it were now in this
country.
Thus then you see the extent of that pecuniary succor, which has
filled the minds of all with such teeming expectation, is narrowed
down to one million of dollars. But by the best accounts and estimates
I have been able to procure, this war has hitherto cost about twenty
millions annually. I do indeed expect that the future expenditures
will be greatly curtailed; but it must be remembered that the most
rigid economy has its bounds, and that it cannot exist without the
punctual performance of those engagements, on which the first steps
towards it must depend. As soon as the proper estimates for the next
year can be made out, the demands founded upon them will be stated,
and I shall shortly advertise for contracts, as the most effectual
mode of husbanding our resources. I feel it to be my duty, however, to
observe, that a note this day sent to Congress, of some of my
principal engagements for money, amounts to upwards of two hundred
thousand dollars. Yet the calls for it from every quarter are
incessant.
I would gladly quit the subject of foreign supplies and expectations
here, but it is necessary that the States should know all, and I
should not answer the views of Congress, if I did not add, that the
Court of France place the aid now afforded us among the number of
those extraordinary efforts, which cannot be repeated. The
declaration, that no more pecuniary assistance can be afforded to us,
is as plain as language will admit of; and although the applications
may, and probably will, be made by our Ministers to the Court of
Versailles, yet surely no prudent man would form any reliance on such
applications, in the face of such a pointed and express assurance to
the contrary; and especially, when, to every request a short answer
can be made, by asking what we have done for ourselves. Sir, I must
speak to you most plainly. While we do nothing for ourselves, we
cannot expect the assistance of others.
This is a very painful subject to dwell upon, but a consideration of
great magnitude remains behind, and sooner or later it must come
forward. Prudence, therefore, bids us examine it now, and provide for
it in season. The neglect in funding the public debt, has introduced a
practice of issuing Loan Office certificates, for the interest due on
other Loan Office certificates. This I have absolutely forbidden, nor
will I ever consent to it. Such accumulation of debt, while it
distresses the public, and destroys its credit, by no means relieves
the unfortunate individual, who is a public creditor; for if revenue
is not provided, increasing the certificates would only lessen their
value. This would be such a fraud as would stamp our national
character with indelible marks of infamy, and render us the reproach
and contempt of all mankind. It is high time to relieve ourselves
from the ignominy we have already sustained, and to rescue and restore
the national credit. This can only be done by solid revenue.
Disdaining, therefore, those little timid artifices, which, while they
postpone the moment of difficulty, only increase the danger and
confirm the ruin, I prefer the open declaration to all, of what is to
be expected, and whence it is to be drawn. To the public creditors,
therefore, I say, that until the States provide revenues for
liquidating the principal and interest of the public debt, they cannot
be paid; and to the States, I say, that they are bound by every
principle held sacred among men to make that provision.
I have gone through the task, which I proposed to myself in writing to
your Excellency this letter, which I pray you to communicate to the
Legislature of your State. I hope the Congress will soon be able to
transmit their requisitions, and I shall endeavor that those be as
moderate as possible. But I must pray that every man, whether in
public or private life, will seriously consider the importance of
complying with these requisitions. It is not by the brilliant
successes of war, the splendor of conquest, or the shouts of victory,
that a wise ministry are to be affected. The superiority of national
resources is the sure ground on which to hope for success, and that
superior resource steadily and perseveringly applied, must eventually
attain its objects. It is for these reasons, that the enemy have hoped
everything from the derangement of our finances; and on the other
hand, as I am well informed, it is from the establishment of a
national bank, and the forming of contracts to supply our armies, that
they have the greatest apprehensions. By the bounty of the Almighty,
we are placed in a situation where our future fate depends upon our
present conduct. We may be happy or miserable, as we please. If we do
our duty now, the war will soon be brought to a close; if not, it may
last for many years, and what will then be its termination, it is not
in human wisdom to foresee. Thoroughly convinced that the enemy must
ask for peace, when we are in a condition vigorously to prosecute the
war, and that we shall be in that condition, whenever our affairs are
reduced to order, and our credit restored, and that for these
purposes, nothing more is necessary than a proper system of taxation;
I cannot avoid expressing my sentiments on the subject in all the
warmth with which they flow from my heart. I hope and pray that the
facts, which I have stated, may meet that calm attention, which is due
to their importance, and that such measures may be taken as shall
redound to the honor and interest of our country.
With all possible respect, I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO MAJOR GENERAL GREENE.
Office of Finance, November 2d, 1781.
Sir,
Your favor of the 17th of September last has been delivered to me by
your Aid, Captain Pierce. Your recommendations and his own character,
give him a double title to every mark of attention.
I hope it is unnecessary to make assurances of my disposition to
render your situation both easy and respectable. I am sure it is
unnecessary to remark, how inadequate the provisions have been, which
the States have hitherto made. At least, it is unnecessary to you.
Much less need I display the detail of expenditures, which have been
requisite for the accomplishment of that happy event, which has taken
place in Virginia.
I have neither forgotten nor neglected your department. I have done
the utmost to provide clothing, arms, accoutrements, medicines,
hospital stores, &c.; and I flatter myself that you will, through the
different departments, receive both benefit and relief from my
exertions. I have detained Captain Pierce a day, in order to make up
with infinite difficulty, one thousand pounds Pennsylvania currency in
gold, which he is the bearer of, and which will, I hope, be agreeable
and useful. You have done so much with so little, that my wishes to
increase your activity have every possible stimulus. I hope soon to
hear that you have gathered fresh laurels; and that you may wear them
as long and as happily as they have been speedily and worthily
acquired, is the earnest wish of yours, &c.
ROBERT MORRIS.
* * * * *
END OF THE ELEVENTH VOLUME.
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