CONTENTS (continued 2)

On the whole, then, I conceive myself well grounded in the opinion, that the whole loan is still at our disposal, and this opinion is so well supported by the Count de Vergennes' letter to you, that I might with great propriety insist on that point. The letter, therefore, which I shall write with such act of Congress, as may be made, in consequence of yours of the 11th of June, will proceed entirely upon that supposition.

I must, however, remark to you in this place, that I by no means intend to insist rigidly with the Court, on points which may incommode them. We are neither in a situation to do it, nor would it be proper even if we were. But while I say this, I do not mean to preclude myself from such observations as my duty shall render necessary, on any transaction which has happened, or which may happen hereafter.

I enclose you an account, containing the extent of what I conceive to have been the appropriation of the supplies above mentioned, together with an invoice from the Board of War, amounting to the sum of one million seven hundred and seventyseven thousand five hundred and twenty livres and ten sols, and which I will call one million eight hundred thousand livres, from which it will appear, that there must remain, subject to my disposition, the sum of four millions at least, after replacing the Lafayette's cargo, and purchasing the articles mentioned in the invoice.

I have had the honor to mention to your Excellency, that I have the misfortune to differ in opinion with the Minister of France. This is upon two points, namely, the drawing of bills by me, and the amount of what may remain due by the Court. From the correspondence between us, which is contained in the enclosed papers, there will appear to have been some warmth on the occasion, but this rather arose from the nature of the transaction, than anything else. I know not what impression it may have left on his mind, but for my own part, as I greatly respect him, I sincerely feel for a situation, to which the orders of his Court have reduced him; and although the language of his letter of the 24th of November, evidently intended for his Court, was so pointed as to force me into the observations contained in mine of the 26th, in my own justification; yet I was almost as much wounded while writing, as he appeared to have been at reading it. I am much inclined to believe, that he wishes to place this business substantially in the same point of light that I do. The whole correspondence is enclosed, that you may be in a capacity to make any proper observations, which occasion may dictate.

Before I take up this correspondence more particularly, I must detain you one moment longer to mention the facts, which preceded it. Before my acceptance of the office I now hold, the Chevalier de la Luzerne informed me, that the Court had given money to the United States, with a determination that it should be at the disposal of General Washington, but that upon my acceptance, he would authorise me to draw for it. It was agreed between us, that I should draw for five hundred thousand livres, and so much be deposited to answer the drafts, and by giving him notice in season a new deposit of five hundred thousand livres should be made, and so on from time to time. Shortly afterwards, I formed a plan to get money from the Havana, and explained it to the Chevalier. He approved of it, and in consequence, I drew a bill on Messrs Le Couteulx & Co. the 17th of July, for five hundred thousand livres, but the capture of the Trumbull frigate prevented the negotiation of that bill, which being then on board of her, intended for Havana, was sunk with my despatches; and the knowledge that Colonel Laurens was then on his way with specie, together with the expectation of that, which was to be sent by the way of Holland, prevented a repetition of the experiment upon Havana at that time. It was previously to the 2d of July, 1781, that the Chevalier agreed that I should negotiate bills for one million five hundred thousand livres, of which the five hundred thousand livres to have been negotiated at the Havana, was a part.

You will see enclosed my letter of the 2d of July upon this subject, which was the day before M. de la Luzerne went to camp; and also M. de Marbois' answer to it. My reply of the 4th closes the matter at that time; and then it was understood on all hands in the manner I have just now mentioned, and which I have, you will perceive, insisted on through the whole of my correspondence, and which was equally insisted on in a variety of conversations.

That part of the letter last mentioned, which relates to the effect of drawing bills, together with the letters of the 2d and 3d of August, need no comment. They merely serve to show the desire, which animates the servants of the United States, to economise the resources of France. I am not disposed to criminate, but it is right that I should inform you of my opinion, which is, that the French troops in this country have cost much more than was necessary, if my information is not extremely erroneous. I have now in contemplation plans for feeding them more cheaply, and I think the French ration ought not to cost more than half a livre, at least not much more, if so much. The officers who now return to Europe can best answer, whether it has formerly exceeded that amount, and the Court must know how much has been lost on the negotiation of their bills. While on this subject it is my duty to add, that the Minister of France here, has demonstrated the most earnest desire to introduce economy in the expenditures of the army, and that the readiness shown by the Count de Rochambeau, and other general officers, to aid in it, demand acknowledgements.

On the 24th of September the Chevalier wrote me a note, of which a copy is enclosed. This, you will observe, was after the receipt of those letters, in consequence of which, he, among other things, communicated the account, on which I have already had the honor of making some remarks. This letter, while it assigns reasons for continuing my drafts, shows clearly that the Chevalier had communicated his instructions to stop them, which was done, not only to me, but to the committee. But I confess, that I was very far from considering those instructions as absolute. I concluded, that a line of discretion had been left to the Minister; and, indeed, his answer to my letter confirmed me in that opinion. This answer is of the 26th. He does indeed say, that it is impossible to depart from the precise instructions received on that subject, and authorise my drafts to the amount of two millions five hundred thousand livres; but he immediately goes on to permit an addition of two hundred and ninetyeight thousand nine, hundred and eightyone livres, fifteen sous, and four deniers. Wherefore, it followed, that either those instructions left him at liberty to extend those drafts, or that he was at liberty to disregard the instructions. I therefore did expect to have gone on to the sum first agreed for. These expectations were frequently mentioned in conversation, and particularly so in that alluded to in mine of the 22d instant.

On the other hand, I must acknowledge, that he always mentioned his instructions, but so as to leave me under the original impressions I had received. As this letter of the 22d takes notice of another matter, it is proper to mention here, that the Chevalier had observed on a difference between the account he delivered officially to the committee of Congress and the note to the Count de Vergennes; but no pointed conversation on this subject had taken place, he expecting further information from his Court, and I hoping daily to hear from you, and being unwilling to raise a question unnecessarily. The reason why I did at last bring it forward is contained in my letter, and therefore I shall say nothing about it. The account sent in that letter, needs no comment, although it differs very widely from that marked thirtythree.

I shall only note, that if the sum of six hundred and eightysix thousand one hundred and nine livres be taken from that mentioned as advanced for stores by order of Colonel Laurens, so as to render that article conformable to what is said in the Count de Vergennes' note, the same sum must be added to the balance; by which means placing the one million five hundred thousand livres, to have been drawn for by me, in the stead of that to have been sent out from Holland, the whole will stand as first above mentioned, leaving the amount of the loan untouched. In the close of my letter, I mention a determination to draw on account of the balance, an expression which appears to have been mistaken. The reason of the assertion will in some degree appear from the answer to it. I will add, that, although I shall not risk the drawing of bills while there is any chance that they may return protested, I must, nevertheless, take measures to obtain the money for very evident reasons, and it is with this view, that I have drawn on you in favor of Messrs Le Couteulx & Co. for one million livres.

You have also a copy of the letter written on the 24th instant, in answer to that last mentioned. I shall not here notice the difference between what we have said about the additional million, as well because it is in substance the same, as because I had not insisted on drawing for it. In like manner, I shall say nothing about the permission given me to extend my drafts after the orders to stop them brought by Colonel Laurens; but you will observe, that the pointed declaration, that the letter of the 26th of September could not leave me the shadow of a hope, &c. (with what follows it) stands in such direct opposition to the whole tenor of my letter and to the real state of my expectations, that to have submitted in silence, would have been tantamount to the acknowledgement of falsehood. It is indeed easy to perceive, that the Chevalier wrote this letter to his Court, although he directed it in the first instance to me; and I conclude it to have been in consequence of his last despatches, which had not been received long before his letter was written. The equivocal use of the expression as soon as possible will not escape you, Sir; but it shall meet no other remark from me than this, that I am convinced the Court will not apply it in the same sense with the Chevalier. Neither the dignity of the Prince, nor the magnitude of the occasion will permit a reliance on such distinctions.

The state of the account made in this letter, I really do not see the propriety of. It seems to have been, in some degree, extracted from the account furnished in September to the committee of Congress, because, if the mistake of six thousand livres in the castings of that account be rectified, it will make the first sum total amount to fifteen millions one hundred and ninetynine thousand five hundred and one livres, from which deducting ten million livres, being the amount of the subsidy of six million livres and loan of four, there will remain the first article of that account, namely, five millions one hundred and ninetynine thousand five hundred and one livres. But if this be the case, it is a little surprising, that the Chevalier should not have noticed a deduction made in that very account of the two first articles, amounting to three millions four hundred and sixteen thousand livres, which are, it is there said, to be added to the advances formerly made to the Congress.

It is somewhat extraordinary, that all these should be considered by the Chevalier as advances made in the month of September. For although that account was rendered in September, yet four millions six hundred and ninetyfour thousand three hundred and ninetytwo livres are expressly mentioned as being to be furnished. I shall dwell no longer here, but I must repeat, notwithstanding the polite manner in which the assertion has been contradicted, that my operations have received a very severe, as well as material check, from stopping my drafts; not so much on account of the value of the three hundred thousand livres, as because, while they were negotiating, I should undoubtedly have received those advices from you, which would have enabled me to go on in the same line. I had brought the exchange up very nearly to par, and should soon have sold at seventeen pence this money (Pennsylvania money) for a livre, or eight shillings and sixpence for a crown, which is worth here at the extent but eight and four pence. This would, therefore, have been two per cent advance, with a saving of time, freight, and insurance; and, although a very large sum could not have been negotiated during the winter, perhaps not more than one million five hundred thousand livres, yet that would have enabled me to go on making the preparatives for an early and vigorous campaign, and kept everything in train, till some money could have been either shipped from Europe, or so negotiated as to be sent hither from Havana.

I will take no notice of what is said in the letter now before us, as to the error of six thousand livres, because you must at once perceive how little it was an object of conversation, and how easy to be remedied by any clerk, without waiting either orders or instructions from the Court; and because you must also perceive the material omission of four million livres, which cannot be overlooked, let the calculations be combined as they may. I have not, however, the less concern about it, because so rigid an adherence to so palpable an error leads me to fear a design, which the generous conduct of the King will not permit me to suspect.

Having already given my sentiments as to the interest of Loan Office certificates, I will not now repeat them. As to the replacing the Marquis de Lafayette's cargo, it is a matter which I will not seriously contend about, because, although there will not be use for all the articles, there certainly will for many of them; and therefore I hardly think a representation on that score necessary, because there is no use in multiplying disagreeable considerations. But, by the way, I must observe, that it is a little extraordinary this cargo should have been replaced out of the loan to have been opened, &c. at your request, while at the same request money could not be obtained to pay the bills drawn by the order of Congress, as appears from your letter, and that from the Count de Vergennes, which is enclosed in it. The idea of making advances for any individual State from the funds of the United States, must never be admitted by any servant of Congress. It will be quite time enough to do that, when they shall have complied with the several requisitions made upon them, and when they shall have intrusted these subaltern negotiations to the Ministers whom Congress have appointed. Such advances stand on a very different ground, indeed, from those made for purchasing a like cargo to that of the Lafayette; and it cannot be expected, that they should be passed to the account of Congress. Besides this, the successes to the southward have rendered succors of that sort unnecessary. What has already been said will render observations on the letters of the 26th instant unnecessary.

On the whole matter, I have to request your exertions to have this affair settled as soon as possible, and that you will cause the whole of what remains to be paid over to Messrs Le Couteulx & Co. sending me notice thereof by every opportunity, that I may attend to the disposition of it. I mean, nevertheless, that a reservation should be made of what is necessary, to purchase the articles mentioned in the enclosed invoice of the Board of War. I wish you to have as little trouble as possible in this business, and, therefore, I am to request you to employ in it Mr Barclay, our Consul General, and Mr Matthew Ridley. They are both gentlemen of knowledge and integrity, and I doubt not will perform it with economy and expedition.

You will also be pleased to take arrangements with the Minister of Marine, and give your consequent orders to those gentlemen, so that all articles of every sort and kind, which are the property of the United States, and now in Europe, may come under safe convoy to this port. The Marquis de Lafayette, who is charged with the General's instructions on military subjects, will assist in combining matters, so as to accomplish these objects. I confide, Sir, that your wisdom and his vivacity will produce the most beneficial consequences.

Let me add, while I mention the depositing all which remains due to us with Messrs Le Couteulx & Co., that I wish you, in conformity to the Act of Congress enclosed, to pay the sum of fortytwo thousand one hundred and eightynine livres therein mentioned, with the interest, to William Lee. Let me also mention my desire, that you would retain two millions two hundred thousand livres to pay interest bills drawn from the 1st of September to the 1st of April next. I will take such arrangements as will save you the trouble of doing this business in future, and I mention it here, although the money will come more properly under the head of supplies to be asked from the Court for the ensuing year.

The declarations, that no more pecuniary aid will be afforded to us, are very clear and explicit, but I trust, that these declarations will not be adhered to. The interest bills, as I just now observed, will amount to about two millions livres. You have to pay M. Beaumarchais two millions five hundred and fortyfour thousand livres, and the clothing and stores necessary will amount to four millions livres. Besides all this we must have money, so that it will become necessary to obtain at least twelve millions. When I mention this sum, I take the lowest, and I do it from my sincere desire not to burden the finances of France with American demands; but I think such clear reasons can be assigned for it as must produce conviction.

You have a copy of my letter to the Chevalier of the 3d instant upon this subject. You will have observed, that my circular letter of the 19th of October, which was enclosed in this of the 3d instant, is so formed as to lower the expectations of the several States, and accordingly the account sent with it is framed from the erroneous one before mentioned, and the four millions are totally omitted. The languor of the States had been so fostered by their teeming expectations from France, that it became my duty to prevent if possible the ill effects of it. But on the other hand, a circular letter could not but be public, and it necessarily contained such matter as must stand in the way of procuring a proper settlement of past accounts with the Court, or of obtaining future supplies from them. I, therefore, communicated that letter to the Minister, and as he very naturally asked a copy, I took the first opportunity, after the many necessary copies could be made out, to send it with mine of the 3d instant. This contains, as you will perceive, some short reasons why we want, and why France should grant, pecuniary assistance. The answer to it of the 4th instant, and my reply of the 6th, close the correspondence on that subject.

This last was intended to take off from the force of those observations, as to the King's wisdom and integrity, which had rather more of republican simplicity, than courtly elegance. As my letter of the 3d was not intended to convince the Minister, that being unnecessary, as I am persuaded the conviction was already produced, but to prevent any improper conclusions from my circular letter, so it was unnecessary to make any particular reply to his observations, because, after all a paper argument in Philadelphia can have but very little influence at Versailles; and as the Chevalier observed very properly in one of his letters, the instructions from his Court must necessarily form the basis of his opinion. The proper and useful mode, therefore, of convincing him, is by stimulating them.

Knowing as I do the great force and compass of your talents, I should not presume to add one word of remark on the Chevalier's letter, if I were not convinced, that as it was written for the Court, so it will be necessary to oppose it in some degree by a knowledge of facts, which may not be in your immediate view. He takes it for granted, that the people will make extraordinary efforts, in consequence of their successes, and I will readily admit that they have the ability and ought to have the inclination; but they must differ much from former experience, if they do exert themselves. I will admit that their rulers ought to urge them into activity, but it must be remembered, that those rulers are themselves of the people, that their ideas and views are limited, and that they act like the people rather from feeling than reflection. I speak here of the several Legislatures, for I must repeat again and again, that our general system has not grown into that form and vigor, which can communicate the impulses of a sovereign mind to the remotest members of subjected power. I will admit that a Monarch, would on so brilliant a success, call into action, all which his kingdom possessed of strength and resources; but America is not under monarchical government. I will admit further, that if the object of the war was conquest, instead of security, every victory would give new animation to all the members of our republican confederacy; but this war is not carried on for conquest. While it rages in any quarter it makes food for itself. The inroads of the enemy create opposition. An application is then made immediately to the feelings of the people; but when the inroad ceases, when the enemy retires, the storm subsides, each man returns to his domestic pursuits and employments, and thinks no more of the scenes, which had just passed before him. It is true that this is only changing the field of battle. But America is so extensive, that a shock given at one extremity is lost before it reaches the other.

This true picture of our country, while it demonstrates the impracticability of subjecting it, explains the reasons why our exertions have always disappointed both our friends and our enemies. If then, as the fact is, the mere change of position at the option of the foe can so lull our people to rest, how much more are we to expect it will follow from the capture of a considerable part of his force. To reason rightly on the late events, we must admit the ability to make greater exertions, and then seek the means of calling them forth. This, Sir, can only be accomplished by pecuniary aid. The Chevalier observes that the King's obligations to us have been exceeded. This is but a narrow idea. If the King is engaged to support the war until our Independence is established, his simple object of inquiry will be, how that can be speedily and cheaply accomplished? It is certain that America ought to do everything in her power, and you may assure the Court, that Congress and the servants of Congress are sensible of this duty and determined to comply with it. But it is in vain to think of breaking the bounds of possibility, and equally vain to think of changing the nature of man.

Let me add, that there is little propriety in reproaching Americans with faults inseparable from humanity. Besides this, the exertions of our country have really been very great, and as soon as more consistency shall have been put in the administration, they will again be great; but this is the period of weakness between the convulsive labors of enthusiasm and the sound and regular operations of order and government.

There is in the end of the Chevalier's letter a hint in relation to our commerce, which although it does not immediately apply to the present purpose, must not pass unnoticed. That an indirect commerce has taken place with England is true, and that France has in a great measure been the cause of it is equally true. Men will naturally buy where they can obtain things most cheaply. The prime cost of goods, though a great object in time of peace is not equally so in time of war. The freight and the insurance are then so high that a small difference of danger or convenience will counterbalance a great difference of price. When France, by subscribing to the principles of the armed neutrality, gave her enemy the means of bringing her manufactures in safety to our neighborhood, she tempted our merchants to buy those manufactures. She added the motives of interest to the force of habit, and ought not, therefore, to be surprised that such cogent principles have had effect. One mode remained, that of convoying the trade between France and America, and that mode has been neglected. I am happy, however, to observe, that this British commerce is dwindling very fast. The war with Holland has given it one deadly blow, and if our privateers are once more freed from the shackles too hastily imposed upon them, I cannot doubt, but that the trade of this country will flow directly to France, as indeed it ought to do.

And now, Sir, before I close this letter, let me make one further observation with respect to the future supplies from his Majesty. To solicit them is considered as asking for assistance in a war, whose object is of the last importance to us. This is the point of view in which I have placed it, and in which I am desirous it should stand. But there is another method of looking at it, and, although delicacy will forbid us so to present it, yet you may depend upon it, that there are many, who have taught themselves to reason about it in a different way from what you or I would wish. Whether Britain will acknowledge our independence is a question, which is to be answered only with some modifications. If, in consequence of such an acknowledgement, we would forego our connexion with France, there is no manner of doubt, but she would make it immediately. This would on our part be wrong, and therefore it ought not to be done; but, Sir, when this great object shall be presented on the one side, and the weight of new and great taxes be felt on the other, with all their ancient prejudices and predilections in aid, will not there be some men who, for the shades of ease, will quit the paths of virtue?

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, November 29th, 1781.

Sir,

Having just now received a short letter from Mr Jay, of the 1st of September, from St Ildefonso, I find it my duty to communicate the contents immediately to the United States in Congress assembled. Mr Jay informs me, that he expects soon to be under the necessity of protesting the bills drawn on him; that Dr Franklin had hitherto saved that necessity, but that he cannot advance much more, unless by the express order of Congress. He says, further, that he has but little hopes of loans or subsidies from Spain; that the ship America is neither sold nor engaged, and that the Spanish Court seems determined to do nothing until the campaign ends.

I have the honor to be, &c.

ROBERT MORRIS.

TO MR GRAND.

Office of Finance, December 3d, 1781.

Sir,

When I was called to the superintendence of the American finances, it became necessary to appoint a banker, with whom to deposit the moneys, which were to be granted by the Court for payment of my bills. Your house naturally presented itself to my consideration, but as I knew you to have large accounts open, and as I wished that my transactions should be kept in a separate, clear, and distinct manner, I named for this purpose the house of Messrs Le Couteulx & Co. At the same time, I wrote to his Excellency, Benjamin Franklin, the Minister Plenipotentiary of the United States, upon that subject, and was honored with his answer two days ago. He has mentioned your services to my country in those warm terms of gratitude, which are due to early, vigorous, and disinterested exertions. My deep respect for the opinions of that worthy Minister, my desire, on all occasions, to evince the gratitude of my country, added to those favorable impressions, which your conduct has made upon my mind, have induced me to employ you as a banker in the affairs of the United States.

You will be pleased, Sir, to close your former accounts, and, in due season, to transmit them. For subsequent transactions, you will open new accounts, and, from time to time, keep me informed of the state of our affairs. The allowance formerly made of one half will be continued.

The intelligence lately received, gives strong hopes that the loan of five millions of guilders, opened in Holland, will have been completed before this reaches you. One million of these is appropriated to purchasing certain articles for our army; and I now direct one million to be deposited with you, and one million with the house of your brother in Amsterdam, subject to my drafts. The remaining two millions are to be shipped for this country.

As I am not positively instructed that this loan has succeeded, I do not venture to draw bills on you; but in case you shall be in cash for the United States, which I expect will happen, you will pay to Messrs —— & Co., for account of John Ross, the sum of two hundred thousand livres; to Messrs Le Couteulx & Co., for account of William Bingham, one hundred thousand livres, and to John Holker, for account of John Holker fils, the sum of one hundred thousand. From each of these persons you will take quadruplicate receipts, in the form following; "Received of ——, banker, by order of the Superintendent of the Finances of the United States of North America, on behalf of —— the sum of —— being so much paid by the said States to him, the said —— for which I have signed four receipts, all of this tenor and date. Done in Paris this —— day of —— 178—." You will be pleased, Sir, to forward to me three of the copies by different opportunities.

I am, Sir, &c.

ROBERT MORRIS.

TO M. JOLY DE FLEURY.

Philadelphia, December 3d, 1781.

M. de Fleury will have the goodness to pardon an entire stranger for intruding one moment on that attention, which is engaged in so many important objects. I have been called, Sir, almost at the same time with you, though in a different country, to the same office. The intimate alliance and connexion between our Sovereigns is such, that we are engaged in the same cause. My first steps have encountered difficulties, and you have afforded the first means of surmounting them. Thus, I flatter myself, from your clear view of the interests of France, that you are disposed to give pecuniary aid to America. I will not pretend to delineate the advantages resulting from it to the penetrating mind, which has already conceived them. I will only add my wish, that your name may be enrolled among those true friends of France, who, by espousing warmly the cause of this country, have shown themselves to be equally the friends of all human nature. To defend, to assert, and to vindicate the insulted rights of man shall be the solid monument of glory, which his Minister will industriously raise for your royal master. With every fervent prayer for their most perfect success, and with the sincerest esteem and attachment, I pray you to believe me to be, Sir, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, December 5th, 1781.

Sir,

I was yesterday morning favored with yours of the 12th of September, enclosing third copies of your two letters of the 26th of July, also a copy of Count de Vergennes' letter to you of the 23d of August. I find by these letters, that the idea I had entertained as to the advances made by the Court was not so favorable as the truth, and that the ten millions of livres, or five millions of florins to be borrowed in Holland, will be over and above those advances. How much pleasure I receive from that circumstance, you will easily conceive. It is an additional pleasure, that the labor of adjusting the matters mentioned in mine of the 27th of November, will be saved to you.

I am much surprised to find so large purchases made on account of the United States in Holland. If everything else were equal, the generous conduct of France towards us has been such, that I cannot but think that every possible preference ought to be given to the manufactures of that nation. But there is, in my opinion, very essential preferences of a different kind. The position of Amsterdam is unfavorable in a war with England to a commerce with this country. France also can, and I suppose will give convoy, to the articles procured there. But I will dwell no longer on the subject, for, I trust, that nothing of the kind will happen hereafter.

Should the loan be obtained, you will be so kind, Sir, as to deposit one million of florins with Mr Grand, to whom I will pray you to deliver the enclosed letter. I shall, in consequence, not draw upon you for a million of livres in favor of Messrs Le Couteulx &. Co. as I intended; and, in like manner, I beg leave to revoke what I have said on the subject of paying all balances into their hands, in my letter of the —— last. One million of florins you will also be pleased to deposit with the house of Grand at Amsterdam, sending me the precise address of both, so that I can direct my bills properly to them. Nearly one million will be necessary to pay the invoice sent in my letter of the —— last. The remaining two millions, I wish may be shipped from France in gold by proper vessels of war, which, I dare say, will readily be provided by M. de Castries.

I perceive you have not written to Congress on the subjects mentioned in the letter of the Count de Vergennes of the 23d of August, which I am glad of. The more that an opinion prevails here that we must succor ourselves, the more we shall do it; and, therefore, I shall not communicate what you have said for the present; but, as the best acknowledgement, I shall endeavor to further the operations against the common enemy, and draw forth all our resources for an early and vigorous campaign. The splendid and important success, which has crowned the combined arms in Virginia, is, I hope, only an earnest of what is to be done next year. These are the returns which we shall make to the King, for the aid he so generously affords. And I have a very particular satisfaction in assuring you, that throughout this country, a strong attachment to the French nation is daily taking place of that blind partiality, once felt for everything, which had the name of English. Let me add, for your use, a piece of mercantile information lately communicated to me from unquestionable authority. The demand for French goods in this country has raised the prices in France from twenty to thirty per cent. The importations have reduced the prices here nearly twenty per cent, and the exchange, you already know, has been raised considerably.

I shall say nothing to you in this letter on the subject of future supplies, further than what is contained in mine of the —— last, because I feel a conviction, that you will obtain such as may be necessary. I will only repeat what I have often said, let them be early. I enclose a letter to M. de Fleury, which you will either deliver or not, as may best answer your purposes.

I hope often to have the pleasure of hearing from you, and I pray you to believe me to be, with very great truth,

Dear Sir, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF NEW YORK.

Office of Finance, December 11th, 1781.

Sir,

I have been honored with your favor of the 24th of last month, covering resolutions of the Senate and Assembly of the 21st and 22d. You will easily conceive by what passes in your own bosom, how much I feel at a representation of distresses, while the necessity of revenue admits not of alleviation. The Legislature are undoubtedly best able to discover and to describe the evils, which afflict their constituents, and I should almost in any case, bend before so high an authority. But the situation, in which I am placed, compels me to make some observations, which if they are not admitted to have weight, will not I hope, be considered as foreign to the purpose.

It is contended by the State agent, that the supplies, which he has delivered, and those which he holds ready to furnish, amount fully to the demand for specific supplies. And it is lamented, that the army have subsisted from the neighborhood of West Point in former times, leaving thereby a great mass of certificates, which being useless to the inhabitants, the supplies obtained have to all intents and purposes, operated a tax. To this I will add, that the resolutions of your Legislature state an extra expense, which has produced a tax to the amount of one hundred and eighty thousand dollars. If these exertions joined to the ravages of the enemy, and the usurpations complained of, have occasioned distress, they at least demonstrate the abilities of the State in former periods. You will perceive, that I am now about to supply the troops by contract, wherefore a ready market for their produce must immediately be opened to the inhabitants of your State. This will enable them to obtain hard money, and that will enable them to pay taxes. The great object, therefore, of the Legislature will be to adopt a vigorous and just system of taxation, and to take off all those restraints upon the people, which injure, afflict, and impoverish them, without producing any advantage to the public. The army must be supplied by law or by force. The latter mode is detestable, and as to the former, certainly the best way, in which it can operate, is to raise taxes and purchase supplies; because by this means much less of the produce of the country is expended, and in the event, the payment of the people is by the produce of the country, that being the only source of national wealth.

As the Legislature seem to have great apprehensions on the score of former demands, I take the liberty of enclosing an estimate, which is formed on the supposition, that all the specific supplies shall have been delivered, which as I have already had the honor to observe, is contended for by the agent, though the truth of it cannot be admitted before the final adjustment of the amount. The burden of these demands would in such case be very moderate. It is my intention to destroy the paper money as soon as it can be called in. Wherefore a slight exertion for that purpose will relieve your State from the burden of it.

As to the extra expense, which has accrued to the State by calling new levies into the field, it is the business of the United States in Congress to determine upon it. It is, however, my duty to remark, that exclusive of the great expense of additional officers, the sum there stated as a bounty is fully equal to the pay and rations of so many men for six months. I am sure that I need not observe to your Excellency the impracticability of carrying on a war where it costs as much to enlist a man as it does to feed and pay him for six months. A few such extra corps raised in each State, and the bounties charged to the United States, in payment of the quota would immediately compel Congress to disband the whole army for the want of the means of subsistence, or to permit the troops to plunder the inhabitants.

In the midst of those complaints of your situation I receive a particular pleasure from the assurance that the Legislature will contribute to the general service of the Union their proportion of well established funds. I hope the recommendation for that purpose will soon come under the consideration of the United States and be duly expedited.

I have the pleasure to add, Sir, that a report from this office for the full and final settlement of accounts is now before the Congress. Whenever a determination shall have been made it will be transmitted.

With perfect respect and esteem I am, &c.

ROBERT MORRIS.

TO THE GOVERNORS OF NORTH CAROLINA, SOUTH CAROLINA, AND GEORGIA.

Office of Finance, December 19th, 1781.

Sir,

In my circular letter on that subject, I have already had the honor to transmit the requisitions of Congress, contained in their Acts of the 30th of October and 2d of November last, by which the quota of your State for the year 1782 is —— dollars, payable in quarterly payments, commencing the 1st day of April next.

The distresses which your State has lately suffered, will not, I fear, permit the collection of this quota in hard money, although the subsistence of the army will naturally call for an expenditure to a great amount in such articles as the State can furnish. The mode hitherto pursued of granting receipts and certificates by every one empowered or employed to impress or purchase, cannot but be attended with much confusion and difficulty, if not with oppression and fraud. It is the duty of those who are intrusted with the management of the public affairs, to prevent as much as possible these evils, and as much as possible to equalize and diminish those burdens, which the people must bear. It would give me great pleasure to be put in such a situation, as that I might at once contract for the supplies of the southern army; but I have not specie for the purpose; nor do I find that taxes are yet laid in the Southern States to procure it. Wherefore, I must wait yet some time, until the public treasury is replenished, until the hard money now in America gets somewhat more diffused, and until I have a prospect of receiving back from those States in hard money their quota of the public taxes.

In this situation of things, I have devised and proposed to the Delegates of the three Southern States, the following plan. To appoint a Receiver of the taxes in each State, agreeably to the Act of Congress, and to empower such Receiver to issue notes on the warrants of the General, payable in those taxes, or from the amount of them when collected. By which means those articles necessary for the consumption of the army may be purchased, and the quota of the State be thereby paid.

The Delegates of North and South Carolina thought the plan eligible, but one of the Delegates of Georgia was disinclined to that part of it, which requires the previous passing of a law to raise the quota of taxes called for by the United States. I am this morning informed, that upon a reconsideration of the matter, a majority of the Delegates of South Carolina are also of opinion, that it would be better not to make the enacting such a law an indispensable part of the system. I am very sorry for this circumstance, because, as all the Delegates from the three States mentioned, approve of the plan in other respects, I did expect their warm recommendation of it to their respective Legislatures; for your Excellency will perceive at a single glance, that it originated in the sincere desire of relieving those States, and has that relief for its object, as far as the public service of the United States will possibly permit.

Those gentlemen who object to making a tax bill the preliminary to any issues of the notes, have proposed as an expedient, a law, promising the payment of the notes when taxation shall become practicable, compelling the receipt of them in payment as specie, and limiting the prices of those articles, which the army may want. This is done to obviate two objections, which are supposed to be against taxation, that the state of the country will not admit of the collection, and that those who have no property left but lands, cannot pay the taxes without extreme distress.

Before I go into any detailed observations on these subjects, I beg leave to state one general reason why I must insist on the tax law, even if in other respects I should have no material objections to the expedient proposed. As Superintendent of the Finances of the United States, it is my duty to urge a compliance with the requisitions of Congress, and, therefore, to facilitate that compliance; but I should betray the trust reposed in me, if by any expedient whatever, I assisted in eluding those requisitions. With me, therefore, the propriety of passing the tax bill can admit of no question; and in consequence, my orders are precise, to prevent the issue of a single note, until such bills shall have been enacted, and effectual provision made for the collection.

I shall now take the liberty of trespassing on your patience, with some observations as to the two laws proposed. And first, as to the expediency of taxing, and the weight of the objections against it. When it is considered, that the expenditures of the army, (supposing the war to be carried on in the Southern States, must greatly exceed the amount of the sums called for from those States,) one position is clear, that by complying with the requisitions of Congress, a balance of money must necessarily be brought in from the other States, to supply the deficiency of the whole revenue in those particular States, when compared with the amount of the whole expenditure. But by neglecting to comply with the requisitions of Congress, (as it will be impossible to supply the army in the same regular manner, which prevails elsewhere,) the whole cost of the expenditure will fall in the first instance on those who are near the seat of war, subject to a future settlement of accounts. Besides which, it is demonstrable, that this latter mode of supply, which is at present practised, is very wasteful and expensive. Nor is this the only objection, though certainly a very strong one. We must further consider, that according to the present mode of taking supplies, the burden falls very unequally on the inhabitants, and of course, very unjustly. I fear that, with truth, it may added, that in some instances, it is attended with strong circumstances of distress.

Hence, then, I conclude that the propriety of taxation is evident, unless the reasons against it are of weight sufficient to counterbalance the inconveniences, which would result from neglecting it. I proceed, therefore, to examine them. And first, as to the state of the country and the means of collection. It is clear that within the enemy's lines, taxes cannot be collected; but out of them, they certainly may be. For, surely, it is as easy to compel a man to pay money by seizing his property, as it is to seize that property for the subsistence of the troops. There is, however, this additional advantage in taxing, that those may be compelled to pay, who have not articles useful for the army, as well as those who have. The objection, that those who have land only will be distressed by the sale of it, will have just as much weight as the Legislature may choose to give it; for if no taxes are raised on land, the objection will vanish, and certainly the Legislature will be in capacity to determine whether any tax should be laid on it, and what that tax should be.

But, further, it appears that the objection is calculated to favor the rich, who are great landholders, in preference to the poor, who labor on a small plantation; and how far this may be either wise or just is not for me to determine. I will, however, suggest an expedient, that, as the taxes are payable quarterly, the first two quarters' tax should be raised on the polls, the slaves, and other personal property in the State, and the land tax be paid on the last quarterly instalments. This will give the several landholders room to turn themselves, so as to provide for their several appropriations in season. I will just add under this head, that if (as there is some reason to hope) the southern States should be totally evacuated, the extension of their commerce will soon obviate every objection, which can possibly be in the way of taxation.

I must observe further, that those States, which delay the levying of taxes to answer present requisitions, will become totally incapable of complying with future calls, and consequently, we shall always be dealing in doubts and uncertainties, instead of establishing that confidence and vigor, which alone can perfect our independence.

I come now to the proposed law for compelling the receipt of the notes and regulating the prices of articles. My opinion of all such laws is decidedly fixed. I know both from reason and experience, that they injure the credit of the paper they appear designed to support. They show doubts in the mind of the Legislature, they communicate those doubts to the breasts of the people, the credit of the paper is then destroyed before it is issued, and all the after operation of the law is one continued scene of fraud and iniquity. If, therefore, such tax bill shall be passed as will permit issuing the notes in question, I entreat, that on no representation, nor for any cause whatever, any law be passed making the notes a tender, valuing the price of goods, or anything of that sort. I ask for no embargo, no regulations. On the contrary, I wish and pray, that the whole detestable tribe of restrictions may be done away, and the people be put in possession of that freedom, for which they are contending. I have no system of finance, except that which results from the plain self-evident dictates of moral honesty. Taxation and economy are the two pillars by which that system is supported, and if the several States will provide the former, I will pledge myself for the latter, as far as my abilities will permit.

To return then, Sir, to the plan I have to propose. It is simply this. I expect that the Legislature of your State will immediately pass laws to collect by the days named, the sums called for from them for the service of the year 1782. To facilitate the collection and payment of the taxes, I consent to receive the notes signed by the Receiver of the continental taxes for your State. If, therefore, the Legislature approve of my plan, they will merely add a clause rendering those notes receivable by their collectors as specie, in the continental taxes. They will, I doubt not, provide the ways and means by which the Receiver shall compel the several collectors to pay over whatever sums, either of those notes or of hard money, they may have received. This will leave it purely optional with the people to take the notes, or to let them alone. If the taxes are collected, they must either pay those notes or hard money. If they pay hard money, the notes will not be necessary. If they pay the notes, the public will already have received the value of them, in the articles for which they are first paid.

I enclose the form of the notes and the denominations, and I will appoint the Receiver of the continental taxes for your State, as soon as I can fix on a proper person, and prepare the necessary instructions. In the meantime, the law may easily be passed, with a clause directing the mode in which the appointment of such Receiver shall be announced to the public.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF RHODE ISLAND.

Office of Finance, December 29th, 1781.

Sir,

I have been favored with your letter of the 3d of last month, and am much obliged to you for the information it contains. There is now before Congress, on a report from this office, a plan for liquidating and adjusting the accounts of the several States, and I should sooner have answered your letter, if I had not expected the pleasure of sending forward the Act of Congress on that subject with my letter.

I have no doubt but that the State over which you preside, has made great exertions in the common cause, and but for the exertions, which have been made, the enemy would long since have been more successful. Every State in the Union claims the merit of extraordinary efforts, and whose claim is the best, I will not pretend to ascertain; but I feel it to be my duty to observe, that nothing but a continuance of active exertions on our part can possibly assure those objects, for which so much has already been done and suffered. Persuaded that the wisdom of your Legislature will feel equally with me the force of this observation, I have no doubt but that the requisitions of Congress, for the service of the year 1782, will be punctually complied with.

With respect to the impost law, I will not say anything more about it, than merely to remind you of what has already been said in former letters. The time is hastening on, when it must be determined, perhaps forever, whether the United States of North America shall, or shall not, possess the inestimable jewel of public credit. In the meantime, the conduct of those in public life, as far as it relates to this object, must determine whether or not they are really the friends of their country. Mr Warren, who is now I suppose with you, will, I doubt not, give you every information, which may be required as to the situation of our affairs, and his genius and talents will enable him to place in a much stronger point of view than any letter from me, the importance of complying with the requisitions of the United States. I hope, Sir, you will pardon me for adding, that if every State in the Union has an equal right with yours to wait until others have complied, the Congress may spare themselves the trouble of doing any further business, and their constituents may be spared the expense of keeping them together. I need not, I am persuaded, go into detail of the consequences.

With perfect respect and esteem, I am, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, January 3d, 1782.

Sir,

Although it is now eleven months since Congress recommended an impost of five per cent on goods imported, and on prizes and prize goods, the States of Massachusetts, Rhode Island, and Maryland, have not yet complied with that recommendation.

I will not repeat the arguments to induce a compliance, which are contained, either in my letter of the 27th of July, or elsewhere; that is unnecessary. The object of this letter is to make a representation, which can no longer be delayed consistently with the duties I owe, either to myself, or my country. And although it is principally designed for those three States just mentioned, yet I transmit it to the other States, (in a letter, of which the copy is enclosed,) because all ought to know what is interesting to all.

Convinced that the impost recommended was not sufficient, I had devised some additional funds for the payment of our debts, and the support of our credit. These I should have submitted to the consideration of Congress, had the States complied with their former recommendations.

In a circular letter, dated the 19th of October last, I had the honor to mention an order prohibiting Loan Officers from issuing certificates in payment of interest, together with the reasons for which it was made. That order has already produced much clamor among the public creditors. This I expected, and I still expect that it will occasion much more.

The public debt is considerable, and the public credit must be lost, if the interest of it be not provided for. Congress have done their duty in requesting revenue, and I have done mine in soliciting a compliance with their request. It only remains for me to bear testimony against those who oppose that compliance, and to declare, that they and they only, must be responsible for the consequences. They are answerable to the other States, to their fellow citizens, to the public creditors, and to the whole world.

I must speak plainly on this subject. I must point out from time to time, the reason of those things, which have produced murmurs and complaints against the representative body of America. I must direct those who suffer, to those who occasion their sufferings, and those who are injured to those who have done them wrong. Let me then once more entreat, that this great object be seriously considered. Let me repeat, that the hope of our enemy is in the derangement of our finances; and let me add, that when revenue is given, that hope must cease. He, therefore, who opposes the grant of such revenue, not only opposes himself to the dictates of justice, but he labors to continue the war, and of consequence to shed more blood, to produce more devastation, and to extend and prolong the miseries of mankind.

I have the honor to be, &c.

ROBERT MORRIS.[2]

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, January 8th, 1782.

Sir,

I have the honor to transmit herewith an ordinance passed by the United States in Congress assembled the 31st day of December, 1781, incorporating the subscribers of the Bank of North America, together with sundry resolutions recommending to the several States to pass such laws as they may judge necessary for giving the said ordinance its full operation. The resolutions of the 26th of May last speak so clearly to the points necessary to be established by those laws, that I need not enlarge on them. Should anything more be found necessary upon experience, the President and Directors will no doubt make suitable applications to Congress, or to the States respectively, as the case may require.

It affords me great satisfaction to inform you that this Bank commenced its operations yesterday, and I am confident that with proper management, it will answer the most sanguine expectations of those who befriend the institution. It will facilitate the management of the finances of the United States. The several States may, when their respective necessities require, and the abilities of the bank will permit, derive occasional advantages and accommodations from it. It will afford to the individuals of all the States a medium for their intercourse with each other, and for the payment of taxes more convenient than the precious metals, and equally safe. It will have a tendency to increase both the internal and external commerce of North America, and undoubtedly will be infinitely useful to all the traders of every State in the Union, provided, as I have already said, it is conducted on principles of equity, justice, prudence, and economy. The present directors bear characters, which cannot fail to inspire confidence, and as the corporation is amenable to the laws, power can neither sanctify any improper conduct, nor protect the guilty. Under a full conviction of these things, I flatter myself, that I shall stand excused for recommending in the strongest manner, this well meant plan, to all the encouragement and protection, which your State can give, consistently with wisdom and justice.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF RHODE ISLAND.

Office of Finance, January 14th, 1782.

Sir,

The delegates of Rhode island did me the honor to communicate your Excellency's letter of the 24th of last month, directed to them. I have carefully considered that letter, and now, agreeably to my promise made to them, shall endeavor to convey my sentiments upon it to you. You mention, Sir, that the Assembly unanimously concluded, that the sum of two hundred and sixteen thousand dollars, called for by Congress, to be so large as that it could not by any means be raised in specie, and you say, further, that the scarcity of cash has become uncommonly great.

By the Acts of Congress on that subject, you will perceive the amount of taxes called for by the United States, to be eight millions of dollars. I cannot pretend to say, that the apportionment has, or has not been equal; but I am persuaded it is as nearly so as the information, which could have been obtained, would by any means admit. The whole sum, Sir, however large it may appear, is very much short of our former annual expenditures; and, I am sorry to add, that it is certainly short of what will be necessary, even with the strictest economy. I am compelled on this occasion to observe, that the want of credit is now materially felt. Other free nations find infinite relief from the oppressive weight of taxation by anticipating the public revenue; but we, with every advantage from nature to prevent it, are obliged to bear now those burdens, which ought, in reason, to be divided with succeeding generations. To obtain credit, we must provide funds amply sufficient, not only to pay the interest of all former debts, both foreign and domestic, but also sufficient to liquidate those, which we may find it necessary in future to contract. These funds must be permanent, clear, sufficient, and at the disposition of Congress. Nothing short of that will answer the purpose.

In the meantime, the interest of our debt is as great as if such funds were given; and to pay that interest will cost as much to the people; but the complaints from every quarter, until it be provided for, do infinite injury. Whereas, if funds were granted, we might from time to time obtain loans, both at home and abroad, sufficient to defray a great proportion of our annual expenditure. You will easily perceive what relief the people would feel from paying the interest instead of the principal. As to the want of money, your Legislature must consider, that there must always be such want from the very nature of things, because nothing gives to money its value, but the universal desire of obtaining it; and, of consequence, the ease with which all the necessaries, conveniences, and luxuries of life are obtained in exchange for it. It is the value of money, which has induced all wise nations to raise the supplies in coin, rather than in produce, because there is nothing, which so facilitates the economy of public resources. And the great object of a wise and just government is, to reduce as low as possible the burdens, which the people must bear, for their own preservation, safety, and advantage. The want of money always has been, and now is complained of throughout the United States. This want will, however, be soon remedied in some degree by the bank paper; and further, it must be remembered, that as the public wants will call for an expenditure faster than the collection of taxes will take place, those taxes will by no means decrease the general circulating medium, and if that medium be, as is said and as I really believe, deficient, commerce will continue, as at present, to increase it by the daily importation of specie from abroad.

The taking of specific supplies has, by experience, been found unequal to the object, and is extremely wasteful and expensive. Many articles produced in the several States, in themselves very valuable, will by no means admit of transportation; and even those, which will admit of it, can seldom be brought to the place where they must be consumed, but at an expense which, in many instances, exceeds the original value.

I am convinced, nevertheless, that there is force in your observation, on the propriety of expending within the State as much of the revenue drawn from it as can consist with the general interest of the Union. This, Sir, must, nevertheless, depend in a great degree upon the cheapness with which your citizens will furnish such things as the public may want. While they industriously make and cheaply vend those things, which the necessities of mankind require, they need not apprehend a want of money; for as, on the one hand, he will get most of a commodity, who will give for it the most money; so, on the other, he will get the most money who will give for it the most of a commodity. Your honorable delegates inform me, that many articles fit for our use, and in particular blankets and woollen stockings, are manufactured in your State, and can be afforded to the United States on good terms. If so, it is very probable, that not only the revenue called for may be expended there, but even a greater sum. I will give orders to the Clothier General to make inquiries immediately as to the quantities and prices of articles proper for his department in your State; and to purchase, if they can be had upon proper terms.

As to making any agreement for specific articles, I cannot undertake it, because I have already made contracts for most of the articles, which we may want, payable in money; and I am too distant to judge of prices; nor is it possible for the human mind in that complicated scene, which engrosses every moment of my time, sufficiently to attend to such minute details. The business of government must be simplified, in order that it may be well conducted, and to do this is with me a very principal object. Your Excellency will perceive, that I am authorised to appoint a Receiver of the Continental taxes within the several States, and I shall make the appointment within your State very speedily. I have every disposition to comply with your wishes, and will give such instructions to the Receiver, as that he may from time to time facilitate the views of the Legislature and lighten the burdens of the people, which I sincerely assure your Excellency is an object that lies nearest my heart.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 15th, 1782

Sir,

Finding by the Act of the United States in Congress of the 7th instant, that I am instructed to prepare and report a table of rates, at which the different species of foreign coins most likely to circulate within the United States shall be received at the Treasury, I have been induced again to turn my attention to an object, which has employed my thoughts very frequently, and which would have been long since submitted to Congress, had I not been prevented by other business, and much delayed by those things relating to this business, which depended upon others. I shall now pray leave to deliver my sentiments somewhat at large on this subject.

The United States labor under many inconveniences and even disadvantages which may at present be remedied, but which, if suffered to continue, would become incurable, and lead to pernicious consequences. It is very fortunate for us, that the weights and measures used throughout America are the same. Experience has shown in other countries, that the efforts of the legislator to change weights and measures, although fully seconded by the more enlightened part of the community, have been so strongly opposed by the popular habits and prejudices, that ages have elapsed without producing the desired effect. I repeat, therefore, that it is happy for us to have throughout the Union the same ideas of a mile and an inch, a hogshead and a quart, a pound and an ounce. So far our commercial dealings are simplified and brought down to the level of every capacity.

With respect to our money, the case is very widely different. The ideas annexed to a pound, a shilling, and a penny, are almost as various as the States themselves. Calculations are, therefore, as necessary for our inland commerce as upon foreign exchanges. And the commonest things become intricate where money has anything to do with them. A farmer in New Hampshire, for instance, can readily form an idea of a bushel of wheat in South Carolina, weighing sixty pounds, and placed at one hundred miles from Charleston; but, if he were told, that in such situation it is worth twentyone shillings and eight pence, he would be obliged to make many inquiries, and form some calculations before he could know that this sum meant in general what he would call four shillings; and even then he would have to inquire what kind of coin that four shillings was paid in, before he could estimate it in his own mind, according to the ideas of money, which he had imbibed. Difficulties of this sort do not occur to farmers alone. They are perplexing to most men, and troublesome to all. It is, however, a fortunate circumstance, that money is so much in the power of the Sovereign, as that he can easily lead the people into new ideas of it; and even if that were not the case, yet the loose state in which our currency has been for some years past, has opened the way for receiving any impressions on that subject.

As we are now shaking off the inconveniences of a depreciating medium, the present moment seems to be that, in which a general currency can best be established, so as that in a few months, the same names of money will mean the same things in the several parts of the United States.

Another inconvenience, which admits of the same easy remedy, and which would indeed be cured by the very same Act, is the want of a legal tender. This is as necessary for the purposes of jurisprudence, as a general currency is for those of commerce. For although there is great impropriety, not to say injustice, in compelling a man to receive a part of his debt in discharge of the whole, yet it is both just and proper, that the law should protect the honest debtor, who is willing to pay, against the vexatious suits of an oppressive creditor, who refuses to receive the full value.

The nature, value, and use of money have always occasioned strong temptations to the commission of fraud, and of consequence, the practice of counterfeiting is coeval with that of coining. No government can guard its subject entirely against the wicked ingenuity, which has been exercised in this respect. But it has always been the object of every wise government to take all the precautions against it, which are within the compass of human ability. These precautions will be least effectual where the coins are so numerous, that the knowledge of them being a kind of science, the lower order of citizens are constantly injured by those who carry on the business of debasing, sweating, clipping, counterfeiting, and the like. It is, therefore, to be lamented, that we have so many different coins in the United States.

It is not necessary to mention what is in everybody's mouth, that the precious metals were first used as bullion, and that the inconvenience of weighing, and the difficulty of assaying introduced the practice of coining, in order that the weight and fineness, might be known at the first view, and of consequence, the value be instantly ascertained. It is equally unnecessary to observe, that the great privilege of declaring this value by particular marks has, among all nations, been vested exclusively in the Sovereign. A trust so important could not indeed be vested anywhere else; because the danger of abusing it was too great. And history informs us, that Sovereigns themselves have not on this occasion behaved with that integrity, which was alike due to their subjects and to themselves, to the interests of their people and their own personal glory.

Experience has already told us, that the advantage of gold as a coin is in this country very considerably diminished, for every distinct piece must be weighed before it can be safely received. Both gold and silver coins are indeed preferable in one respect to common bullion, that the standard is presumed to be just, and consequently, they are received without the delays and expenses of assaying. It must, however, be remembered, that they are all foreign coins, and of course, we are not only exposed to the tricks of individuals, but should it suit the interest or convenience of any Sovereign to make base money for us, there is nothing to prevent it. If, for instance, the King of England, or any of his Birmingham artists, should coin guineas worth but sixteen shillings sterling, our citizens would readily and freely receive them at twentyone shillings sterling. It is my duty to mention to Congress information I have received, that guineas of base metal are coined at Birmingham so well as to escape any common attention. Now there can be no doubt, that every such guinea received here would be a national loss to us of an English crown. How much we suffer in this way at present it is impossible, to estimate.

What I have already had the honor to observe contains some of the reasons why it appears to me highly necessary, that an American coin should be adopted without delay, and to these reasons it may be added, that there is a want of small money for the common occasions of trade, or that it is more felt by our soldiery than any other persons. For the little pay, which they do receive, being either in gold or at best in dollars, the sutlers and others with whom they have dealings, continually take the advantage of their want of change, and rate the prices of their goods accordingly.

Shortly after my appointment, finding that there was a considerable quantity of public copper at Boston, I ordered it round to this place. It has safely arrived, and will when coined amount to a considerable sum. The necessary machinery of a mint can be easily made, and there are persons who can perform the whole business. I must pray leave, therefore, to submit to Congress some few more particular remarks on this subject, as introductory to a plan for an American coin.

Although most nations have coined copper, yet that metal is so impure, that it has never been considered as constituting the money standard. This is affixed to the two precious metals, because they alone will admit of having their intrinsic value precisely ascertained. But nations differ very much in the relation they have established between gold and silver. In some European countries an ounce of pure gold passes for fifteen ounces of pure silver. In others for fourteen. In China it passes for much less. The standard, therefore, which is affixed to both metals is in reality affixed to neither. In England, gold is to silver nearly in that proportion of one to fifteen, and in France nearly of one to fourteen. If a man carries fourteen ounces of gold from France to England he receives two hundred and ten ounces of silver, which in France purchases fifteen ounces of gold. In like manner he who carries from England fourteen ounces of silver to France receives one ounce of gold, which in England purchases fifteen ounces of silver. If it be, then, supposed that the coins of these two countries were alike pure, it must follow that in a short time all the gold coin of full weight would be in England, and all the silver coin of full weight in France. But the light silver circulating in England, and the light gold in France, the real standard of coin in each would be different from the legal, and seek a medium of fourteen and a half of silver for one of gold, although the legal standard might still be in the one place fifteen and in the other fourteen.

The demand which commerce might make for any of the precious metals, in preference of the other, would vary this real standard from time to time, and in every payment a man would get more or less of real value for his debt, according as he was paid in the coin of greater or less value, in relation to the real standard. If, for instance, the debt were contracted when the silver was to gold as one to fifteen, and paid when as one to fourteen; if the debt were paid in silver he would gain one thirtieth, and if in gold he would lose one thirtieth. In England the money standard is rather affixed to gold than to silver, because all payments are made in the former; and in France it is rather affixed to silver than to gold.

Arguments are unnecessary to show, that the scale by which everything is to be measured ought to be as fixed as the nature of things will admit of. Since, therefore, a money standard affixed to both the precious metals will not give this certain scale, it is better to make use of one only. Gold is more valuable than silver, and so far must have the preference. But it is from that very circumstance the more exposed to fraudulent practices. Its value rendering it more portable is an advantage, but it is an advantage, which paper possesses in a much greater degree, and of consequence the commercial nation of England has had recourse to paper for the purposes of its trade, although the mass of circulating coin is gold. It will always be in our power to carry a paper circulation to every proper extent. There can be no doubt, therefore, that our money standard ought to be affixed to silver.

But silver is liable, like everything else, to a change of value. If there is a demand for it to export, the value will rise; if the contrary it will fall; and so far it cannot be considered as a fixed measure of value. Before this objection be considered it will be proper to make a few reflections on another part of the present subject; but in this place I remark, that if the objection cannot be removed, we must not suffer it to be preponderate, because it weighs alike against every other metal.

To coin money is a certain expense, and of course it is an expense, which must be borne by the people. In England the coin when melted will sell as bullion for just as much as its weight in other coin. The expense of coinage is paid by the Crown, and of course is raised by taxes from the people. In France the coinage instead of being expensive yields a profit. The price given for metal at the mint is about eight per cent less than the same quantity will yield when coined at the French standard. Both of these methods are liable to objections. When commerce demands an exportation of bullion from England, the coin of the kingdom goes out in common with others. This increases, of course, the national expense of coinage. Laws to prevent the exportation, or importation of any thing so valuable as money are always nugatory, because they always can be eluded, and therefore when private interest requires it they always will be eluded. That the guineas of England, therefore, are not continually going away is to be attributed to the extraordinary value affixed to gold, which has just been mentioned, and which banishes silver continually. In France the people are not liable to this inconvenience, because their money passing for more than its value in bullion, bullion will always be exported in preference to coin. But, for the same reason, there is always a strong temptation to imitate their coin and send it for the purchase of their commodities. It would be both impossible and unnecessary to distinguish the true from the false, because both would be of equal intrinsic value. The place at which they were struck would be indifferent to the receiver. Of consequence, the foreigner who made French coin, would gain; by his trade, and the French nation would lose proportionably.

The money paid for coining, or the coinage of France has, however, this advantage, that the money is a standard, which does not fluctuate with the price of bullion. This coinage is, as has been said, about eight per cent. When bullion is below ninetytwo, it is carried to the mint; when above ninetytwo, to the broker, or the silversmith. The coin still continues fixed, nor will it bear exportation until bullion rises to a hundred, when the French coin would be as liable to exportation as the English. In that case, it would be exported on one hand, while on the other no more would have been coined for a considerable period, because to make the eight percent coinage, it would be necessary that the mint price should be ninetytwo. The coin, therefore, could not long be exported, if at all, but would resume its value. The price of bullion must float between ninetytwo and a hundred, while the coin would preserve its fixed quality as money.

Hence then, it appears proper, that the price of coining should be defrayed by the coinage; because, first, it is natural and proper, that the price should be paid when the benefit is received, and that the citizen in return for the advantage of being ascertained in the value of the medium of commerce by the sovereign, should pay for ascertaining it, just as much as that he should pay for the fashion of the plate he uses, or the construction of the cart he employs. Secondly, it is right that money should acquire a value as money, distinct from that which it possesses as a commodity, in order that it should be a fixed rule, whereby to measure the value of all other things. And thirdly, it is wise to prevent the exportation of coin, which would involve an unnecessary national expense, and also to prevent the imitation of it abroad, so as to create a national loss. For both of which purposes, it is proper that the coinage should only defray the expense, without making any considerable profit. The laws usual in all countries, with respect to the money, will then fully operate the effect intended.

In order that a coin may be perfectly intelligible to the whole people, it must have some affinity to the former currency. This, therefore, will be requisite in the present case. The purposes of commerce require, that the lowest divisible point of money, or what is more properly called the money unit, should be very small, because by that means, price can be brought in the smallest things to bear a proportion to the value. And although it is not absolutely necessary, yet it is very desirable, that money should be increased in decimal ratio, because by that means all calculations of interest, exchange, insurance, and the like, are rendered much more simple and accurate, and of course, more within the power of the great mass of the people. Wherever such things require much labor, time, and reflection, the greater number who do not know, are made the dupes of the smaller number who do.

The various coins which have circulated in America, have undergone different changes in their value, so that there is hardly any which can be considered as a general standard, unless it be Spanish dollars. These pass in Georgia at five shillings, in North Carolina and New York at eight shillings, in Virginia and the four Eastern States at six shillings, and in all the other States, excepting South Carolina, at seven shillings and sixpence, and in South Carolina at thirtytwo shillings and sixpence. The money unit of a new coin to agree, without a fraction, with all these different values of a dollar, excepting the last, will be the fourteen hundred and fortieth part of a dollar, equal to the sixteen hundredth part of a crown. Of these units, twentyfour will be a penny of Georgia, fifteen will be a penny of North Carolina or New York, twenty will be a penny of Virginia and the Four Eastern States, sixteen will be a penny of all the other States, excepting South Carolina, and fortyeight will be thirteen pence of South Carolina.

It has already been observed, that to have the money unit very small, is advantageous to commerce; but there is no necessity that this money unit be exactly represented in coin, it is sufficient that its value be precisely known. On the present occasion, two copper coins will be proper, the one of eight units, and the other of five. These may be called an Eight, and a Five. Two of the former will make a penny Proclamation, or Pennsylvania money, and three a penny Georgia money. Of the latter, three will make a penny New York money, and four a penny lawful, or Virginia money. The money unit will be equal to a quarter of a grain of fine silver in coined money. Proceeding thence in a decimal ratio, one hundred would be the lowest silver coin, and might be called a Cent. It would contain twentyfive grains of fine silver, to which may be added two grains of copper, and the whole would weigh one pennyweight and three grains. Five of these would make a Quint, or five hundred units, weighing five pennyweight and fifteen grains; and ten would make a Mark, or one thousand units, weighing eleven pennyweight and six grains.

If the mint price of fine silver be established at twentytwo thousand two hundred and thirtyseven units per pound, this being coined would be four times five thousand seven hundred and sixty grains, or twentythree thousand and forty units. The difference is eight hundred and three units, and therefore the coinage is eight hundred and three, or twentythree thousand and forty, or somewhat more than three fortyeight one hundred per cent, which would be about the expense attending it. A dollar contains by the assays, which I have been able to get, about three hundred and seventythree grains of fine silver, and that at the mint price would be fourteen hundred and forty units. In like manner, if crowns contain from four hundred and fourteen to four hundred and fifteen grains of fine silver, they would, at the mint price, be worth sixteen hundred units.

When such a coin shall have been established, the value of all others would be easily ascertained, because nothing more would be necessary than to have them assayed at the mint. The advantage of possessing legal money, in preference of any other, would induce people to carry foreign coin to the mint, until a sufficiency were struck for the circulating medium. The remainder of the foreign silver, together with the gold, should be left entirely to the operations of commerce as bullion.

In the present moment, it is by no means of such consequence to establish the relative value of different coins, as to provide a standard of our own, by which in future to estimate them. If the value were now sought, they must all be estimated in dollars, because dollars are called for in the several requisitions of Congress. Without noticing the preference thus given of one coin over another, it is sufficient to observe, that if a greater alloy should be introduced by the Spanish government into their dollars, our interior regulations as to money would be overturned; and certainly we have no security that this will not happen. There is not any great inconvenience in leaving matters on their present footing, until they can be remedied by the operations of a mint; for it is not to be supposed that all the money raised by taxes in a State is to be brought out of it. I expect that there will be very little occasion to transport money from place to place. It is much easier to negotiate than to carry it; and if any species of money is generally received within a State at the same rate in which it is paid in taxes, there will be no difficulty in expending it at its value. Whenever money shall be struck by authority of the United States, then indeed it will be proper to receive in taxes no other coin.

If Congress are of opinion with me, that it will be proper to coin money, I will immediately obey their orders and establish a mint. And I think I can say with safety, that no better moment could be chosen for the purpose than the present; neither will anything have a greater tendency to restore public credit; for although it is possible that the new money will at first be received with diffidence by some, yet when it has been fairly assayed, it will gain full confidence from all, and the advantage of holding the only money, which can pay debts or discharge taxes, will soon give it the preference over all, and indeed banish all other from circulation. Whereas fixing a relation of value now on whatever principles attempted, might give offence to the power whose coin should, in any instance, be reduced from its present numerary value among us.

These sentiments are submitted, with all possible deference, to the United States in Congress assembled, in expectation of their further instructions on the subject.

With great respect, I have the honor to be, &c.

ROBERT MORRIS.

GEORGE WASHINGTON TO ROBERT MORRIS.[3]

Philadelphia, January 25th, 1782.

Sir,

I have received your favor of the 23d respecting Captain Hutchins, and shall give you a more definitive answer after I have seen that gentleman.

By a letter, which General Lincoln addressed, to me before he went to the eastward, I find that you approve of my plan of sending officers to the four New England States particularly, with the returns of their deficiencies of troops, and with instructions to attend upon the Legislatures, and to endeavor to impress them with the expediency, and indeed necessity, of filling their battalions previous to the opening of the campaign. He informed me also, that you would be glad to give the same officers some instructions relative to the business of your department. If so, I could wish you would have your letters ready to go by the next post, by which time I expect to have the returns prepared. I have not yet fixed upon the gentlemen who will be proper, but you can leave blanks for the insertion of the names of those who may be chosen.

As we may reasonably expect to hear soon again from Sir Henry Clinton, on the subject of the meeting of commissioners, I think it would be well to be preparing the substance of the powers to be delegated to the gentlemen to whom the transaction of the proposed business will be committed. What I would wish you to prepare particularly, is so much as will relate to the liquidation of the former accounts of prisoners, and making provision for their maintenance in future.

I have the honor to be, &c.

GEORGE WASHINGTON.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, February 11th, 1782.

Sir,

The situation of my department makes it necessary to lay some matters of importance before the United States in Congress, and I shall endeavor to do so with as much precision, as possible.

It gives me pain to observe, that the States of Massachusetts, Rhode Island, and Maryland, have not yet passed the laws recommended by the resolutions of the third of February, 1781. I learn, (though not officially,) that the State of Virginia has lately suspended the operation of the law, which they had passed in conformity to that resolution. The bare mention of these things is sufficient to mark the consequences. Our debt being unfunded and unprovided for, the interest cannot be paid. Those, therefore, who trusted us in the hour of distress, are defrauded. To expect that, under such circumstances, others will confide in the government, would be folly; and to expect that foreigners will trust a government, which has no credit with its own citizens, would be madness. The whole weight, therefore, of the war must be borne in the present moment; and even the slightest anticipations of revenue are made on the personal credit of the Minister.

This, Sir, is not said boastingly, but with unaffected concern. I have labored to establish a credit for my country, that when the period should arrive, (and I hoped it was not far distant,) in which I could lay down the burden now pressing upon me, my successor in office should have no other difficulties to struggle with, than those which necessarily attend an extensive and complicated administration. It is, therefore, with no common degree of anxiety and distress, that I see my wishes frustrated. I feel as an American for my country, as a public servant for the interest and honor of those whom I serve, and as a man, that I cannot enjoy the ease and tranquillity I have sought for through a life of continual care and unremitted labor. It is my duty to mention to you the fact, and to apprize you, that in such circumstances, our operations will continue to be desultory efforts of individual power, rather than the combined exertion of political strength and firmness.