CONTENTS (continued 3)

The repeated assurances we daily receive from the Ministers of his Most Christian Majesty, of their steady determination to grant no further pecuniary aid, will not leave room to doubt of their intentions. I candidly acknowledge that I had formed not only hopes, but even expectations from that quarter. For I had persuaded myself, that when the brilliant successes of the last campaign should be known, and when it should also be known how much the United States are capable of, and how necessary an aid of money is to call their power into action, the King would have again extended that relief, which must be most beneficial to the common cause. Even now, I shall request that Congress will instruct the Secretary of Foreign Affairs to make the most pointed representations on this subject through our Minister at the Court of Versailles, and I shall readily furnish all such materials in my department as may be necessary for the purpose; but I must not conceal my doubts as to the effect of such representations. Duty to this country requires that they should be made, but prudence forbids a reliance on their success, and will dictate to us a farther duty, which is, to act under the influence of a belief, that they will not succeed.

As to hopes of pecuniary aid from any other quarter, the delusion has already passed away. It is in vain that expensive establishments are kept up to solicit succor from Spain, who appears neither able nor willing to afford it; from Holland, who seeks peace and not to increase the causes of war; or from Russia, who seems more inclined to crush, than to support us. Let us apply to borrow wherever we may, our mouths will always be stopped by the one word, security. The States will not give revenue for the purpose, and the United States have nothing to give but a general national promise, of which their enemies loudly charge them with the violation.

Thus, Sir, compelled, however reluctantly, to look at home for the means of supporting ourselves against an enemy, whose power has rather increased with the increase of her foes, whose force has risen superior to defeats, and has found resources in a situation, which might have inspired despair, we must no longer rely on those who may neglect us, but take care that we be not charged with neglecting ourselves. I would to God, that I could say, that there were even the appearances of general vigor and exertion. But the truth is very different. The United States have called for eight millions of dollars early in November last, of which the first quarterly payment was to have been made on the 1st day of April next; but I cannot find that a single State has yet laid the taxes. I neither know what they will think proper to give, nor when. Happy to experience a momentary relief from the clamor and revolt of a starving army, from the rage and devastation of an inveterate enemy, and from the waste and extravagance of cumbrous, unwieldy departments, there appears to be no solicitude anywhere for the support of arrangements, on which the salvation of our country depends.

To give a little time for the people to breathe, and to remedy some of the many abuses, which were equally palpable and enormous, I early ventured on the business of contracting, and I have extended it as far as prudence would in any degree justify. Nay, relying on the States for support, I have made engagements, which, in almost any other circumstances, would savor of temerity, and which nothing would have led me to do, but a hope that by retrenching expenses, they would be sooner induced to grant revenue. So thoroughly am I convinced of the superior economy, which attends the present mode of supplying our armies, that I would have offered contracts for the southern department, could I have formed any well grounded expectation of moneys sufficient for the purpose from the southern States. Nor should I have been deterred even by the distance of the period at which it could be had, if I could have formed a reasonable reliance on it at some certain period. Our expenses, it is true, are retrenched, and to give an idea to what degree, I will mention, that for the amount of salaries alone in the Commissary's department to the northward of Potomac river, between three and four thousand soldiers are now fed with full rations. But though the retrenchments are great, the expenses are great also, and they must rapidly increase every moment in preparing for an early and vigorous campaign.

A view either of general politics or of our own situation will impress the conviction, that we ought to make an early and vigorous campaign. The blow, which the enemy have received in Virginia, should be followed as soon as possible before they have time for reflection, for reinforcement, or for defence. We must not imagine that Great Britain will be so stunned by this blow that she cannot recover, or that she will, for such a check, abandon the object both of her interest and her wishes, an object in which national importance appears to be combined with her national existence, and where every covetous and angry passion is strongly excited. What aid she may find from foreign powers must depend upon the manner of considering the propositions, which may be made, perhaps upon their interests, and, perhaps, upon their caprice. A nation, which can hold at bay one half the force of Europe, is by no means a despicable ally.

But whether she gets aid from others, or whether she draws it, as before, from domestic credit and confidence, this, at least, is certain, that we ought to expect new efforts against us, and that we ought not to expect any in our favor. If then, we can strike before she is ready to ward off the stroke, or bear the blow, our own people will be animated, the doubtful will be convinced, and the convinced will be confirmed. Nations, who are friendly to us, will give marks of amity. Nations, who are hostile, will be deterred from their attempts. The councils of our enemy will be distracted. Their intended succors may land on hostile ground, and where they want relief, it may be too late to obtain it. At what point, and in what manner, and for what purpose our efforts are to be made, is the province of the General to determine; but, I repeat again, it is our indispensable duty to put him speedily in possession of the means.

In order that anything effectual may be done, we must have both men and money, and we must have them early. On the 10th of December last, Congress were pleased to call on the States in the most pressing manner, to have their respective quotas in the field by the 1st day of March next; and they determined, that recruits should be raised to complete the quotas at the expense of the States, in the first instance to be reimbursed by the United States. The intention of these resolutions, however clear, may be misunderstood, and attempts made to deduct the expenditures of the recruiting service from the supplies, which were required by the Acts of the 30th of October and 3d of November. For this reason, and also that the States may be more effectually stimulated to comply with the views and wishes of Congress, I shall, before I close this letter, submit certain additions and explanations of their Act of the 10th of December. At present, I shall only observe, that it gives me very sincere pleasure to find the United States in Congress, so fully impressed with the necessity of early efforts. This circumstance leads me to hope that they will be equally impressed with the duty of urging a compliance with their requisitions. It is at least my duty to suggest it. A duty, which I owe to America at large, and which no hope of praise, or apprehension of blame, shall induce me to neglect. I know there is a delicacy, which influences some minds to treat the States with tenderness and even adulation, while they are in the habitual inattention to the calls of national interest and honor. I know that delicacy, and I disclaim it. Nor will I be deterred from waking those who slumber on the brink of ruin. But my voice, Sir, is feeble, and I must therefore pray to be assisted by the voice of the United States in Congress. Supported by them, I may, perhaps, do something; but, without that support, I must be a useless incumbrance.

It is also a duty to economise the moneys which are in our possession, and it receives a double force of obligation from the peculiarity of our circumstances. What moneys the States may grant, and when they may grant them, is known only to Him who knoweth all things; but that which we have is certain, and ought not to be expended but for useful purposes. If we look back to the conduct of the several States in former times, we shall find that the negligence with which they have treated the requests of Congress has been unequalled, unless by the earnestness of entreaty, with which those requests were made. And I fear that there is little hope, that the conduct now to be pursued will in one instant become the counter part of former experiences. We have reason to apprehend a continuance of that shameful negligence, which has marked us to a proverb, while all Europe gazed in astonishment at the unparalleled boldness and vastness of claims, blended with an unparalleled indolence, and imbecility of conduct. But let the several States be ever so negligent, the confederation has given no power to compel. While it confers on Congress the privilege of asking everything, it has secured to each State the prerogative of granting nothing. Since, then, the Congress cannot compel the States to make a grant of money, they must at least take care to prevent the States from making an unnecessary expenditure of those moneys, which are in our possession. Nor is this all. We are called on by the principles of justice as well as of duty to prevent such expenditure.

The requisitions of Congress have been for men and money. The States have furnished officers and transmitted a variety of accounts, demands and complaints; but while officers continue numerous they have neglected to provide soldiers. Instead of it, some of them have formed State regiments, and given State bounties to all those regiments; regiments confined to the limits of the State, as if the ultimate object of military employment were the show of parade, or to consume the fruits of the earth. In the meantime, the continental officers, whose services have entitled them to respectful attention, and whose experience has enabled them to be essentially useful, are left without men to command, and forced to bear the mortification which must afflict every generous mind, perceiving themselves a useless burden to the community.

But while such pains are taken to enhance expense, every request for revenue to pay it is treated with neglect. Congress have determined to keep up the establishment agreed on in October, 1780. I shall, therefore, by no means propose any reduction. On the contrary I am persuaded, that nothing would so speedily terminate the war as the bringing such an army into the field, with proper funds and materials for its support and operation. This would render us truly independent, independent of the smiles of our friends and the frowns of our enemies. But although I will not propose any reduction of our establishment, I cannot consent that the Union bear the expense of a great number of officers without men to command. Neither will I propose the expedient of sending them home upon half pay, and liable to be called into service. This is an expedient for halving a difficulty, which ought to be wholly cured, and at the same time it subjects the individual officer to very serious difficulties, which he has by no means merited. It is not the officer's fault that he has not men, and while he holds himself in readiness to obey the orders of his General, he ought to receive that compensation which his commission entitles him to. He ought, therefore, to draw his full pay and subsistence; but until the State provide men for him to command, that pay and subsistence should be drawn from the States. If the States will not find soldiers, the continent ought not to pay their officers. It is unequal and it is unjust. Some States at a great expense, bring men into the field and lay taxes for the general support. Others send officers without men, and draw money from the treasury without putting any in it. I am regardless where the censure lights. If it fall nowhere, then all are innocent; but if it is merited, those to whom it applies must blame their own misconduct. My justification is already made in the mind of every honest man.

But it is not only necessary that the States bring men into the field. It is necessary that this be done at an early period. Recruits which do not join the army until the autumn, come too late for anything but to increase expense, and to lose their lives by the diseases incident at that season, to those who have not been accustomed to the habits of a military life. Nor is this all. Recruits sent forward at a late period only serve to fill up the vacancies occasioned by sickness, deaths, and desertions, without increasing the effective force of the army.

To remedy the evils which have been pointed out, I take the liberty to propose to the United States in Congress assembled, a resolution,

That on the 1st day of April next, accurate returns be made to the War Office of every non-commissioned officer and private in the army, and of the particular State to which they belong.

That every State be debited in account for the recruiting service for every non-commissioned officer and private, assigned to such State respectively in October, 1780, the sum of one hundred dollars in specie.

That every State be credited in the said account for the recruiting service for every non-commissioned officer and private in the army, and belonging to the States respectively on the said 1st day of April next, a like sum of one hundred dollars.

That for every recruit which shall join after the 1st day of April and before the 2d day of May, the State shall be credited in the said account ninety dollars. For every recruit which shall join after the 1st day of May and before the 2d day of June eighty dollars. For every recruit after the 1st day of June and before the 2d day of July seventy dollars. For every recruit after the 1st day of July and before the 2d day of August sixty dollars. For every recruit after the 1st day of August and before the 2d day of September fifty dollars. For every recruit after the 1st day of September and before the 2d day of October forty dollars. But that no allowance be made for any recruit whose period of enlistment shall be less than three years or during the war.

That every recruit shall be considered as joined, as soon as he shall march for the place to which he is ordered on service, from the place of general rendezvous within the State, to be appointed by the Commander in Chief.

That to determine such time of marching, the time of arrival shall be determined and a time allowed for marching thither, calculating on the distance at the rate of fifteen miles per day.

That the recruits be maintained at the expense of the States, until they shall join as aforesaid; but that during the time of marching an allowance be made to the State for each officer and man, at the rate of one sixtieth of a dollar per mile for every mile from the said place of rendezvous to the place where they shall arrive as aforesaid.

That the Minister of War cause the several men of the different State lines to be arranged within their respective lines, in such manner as to form complete corps, or parts of corps, so that there be a due proportion of men to the officers according to the establishment as near as may be.

That the remaining officers, excepting such as the Commander in Chief may think proper to retain in service for particular purposes, retire to their respective States until such times as the States shall provide men for them to command agreeably to the establishment; and that in the meantime the said States provide the pay, rations, and forage allowed to the officers respectively by the several resolutions and Acts of Congress upon that subject.

And in order to explain fully the reasons for taking such measures I would also propose, that an address be prepared to the people of America stating the want of power in Congress to take measures for the defence of the country, the conduct of the several States heretofore, the importance of making exertions in the present moment, with the dangerous consequences of inattention to, and neglect of, the late requisitions, and calling upon them to urge through their respective Legislatures the measures recommended by Congress.

My reason for this proposal is, a conviction that the people are heartily disposed to support the revolution, but that the public service is too frequently delayed by local disputes and animosities, which consume the time to be devoted to important purposes, and that individuals in the several Legislatures are too apt to believe, that by sparing grants they render themselves agreeable to their constituents, although in effect such policy cannot but prove highly expensive and dangerous if not destructive.

That Congress may be enabled to judge of the saving, which would arise from the proposition I have had the honor of making, with respect to the officers of our army, I enclose an estimate, by which it will appear, that this would be upwards of sixty thousand dollars a month; and to this must be added a further consideration of very great importance, that as the servants to officers are taken from among the soldiers, the army would in effect, receive a considerable reinforcement.

With respect to the price of recruiting, I do not consider anything proposed as being by any means definitive. I have stated each at one hundred dollars, and I would suggest, that as the design is to raise men and not money, it is better to value them too high than too low. I am far from considering this as the best mode of recruiting an army. On the contrary, I am convinced, that if it were a continental instead of a State army, the raising as well as maintaining of it, would be infinitely easier and cheaper; but under the present limited power, which Congress are invested with, it becomes the duty of their servants to propose such measures as appear to them best. What I have had the honor of stating, is submitted with all possible deference, and I hope the decisions of Congress will be as speedy as the nature of the business will permit. With perfect confidence in their wisdom, I have the honor to be, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, February 15th, 1782.

Sir,

In the circular letter, which I did myself the honor to transmit on the 19th day of October last, I stated our situation as clearly and explicitly as I could, so that you might be in a capacity to form a solid judgment as to what would be proper. I am now to inform you, that the most recent and authentic information from Europe, contains the reiterated determination on the part of France, to grant us no further pecuniary aid. Spain appears to have neither the inclination nor the ability to afford any, and in Holland it can only be obtained from individuals, who will always require security, and of consequence will not lend to the United States, who as you well know have no security to give. The want of proper funds has so reduced domestic credit, that we can draw no resources from thence, and until domestic credit is established, foreign credit cannot exist, for it is absurd to expect, that foreigners will confide in a government, which has not the confidence of its own citizens.

It is hardly possible to describe the consequences, which have followed on a loss of credit. We have seen the people diffident, jealous, and unhappy, nor have they yet recovered, even where the removal of undue restrictions has given them time to breathe from the load of oppression. But the public is, if possible, in a still worse situation. No persons will trust the public from a deep apprehension of ruin if they should, and consequently our operations must be bounded by the taxes, which can be collected, while at the same time we must contend for our very existence as a free country at an expense, which we cannot limit because we cannot limit the efforts made against us. Whenever proper methods shall have been taken to restore credit, the benefits arising from it will be as evident to all, as the want is now, to those who are intrusted with the administration. Our expense at this moment is greater than it ought to be, though less than it was, and I cannot retrench, because I have not sufficient means in my power, and have not at this moment any certain reliance on sufficient aid from the several States.

I am much inclined to believe, that individuals in the several Legislatures are unacquainted with the real state of affairs, or flatter themselves that they are better than they really are, even after information. If gentlemen would consider seriously the situation of the public servants, they would at least not suspect them of describing our dangers as greater than they are. They could not, for instance suppose, that I would give a high coloring to the disorders of our finances, because they must see, that on the contrary, I should derive a degree of credit from the general belief, that such disorders do not exist. And when I declare my apprehensions, I injure so far my own operations. My reason for describing our situation in its true light is, that the States may be excited to grant us relief. I might by an appearance of wealth extend my operations for a little while, but in the end they would fail, and how we should then be extricated, no man can tell. At present I must bear the evils, which result from the want of resources, and limit my views accordingly, but it would be madness to inculcate an opinion, that things are worse than they are, because then I could not derive the full benefit of those resources which we have. You must, therefore, be convinced, that I give you no exaggerated account, and I trust, Sir, that your Legislature will give due weight to assertions, which they have every reason to believe, and which if neglected, they will be convinced of by a melancholy and perhaps fatal experience.

Many people flatter themselves with the hope of peace. But on what is it founded? Has the enemy given the slightest evidence of a desire for it? Instead of suing for peace, they talk only of war; they prepare only for war; and when they might have got rid of one enemy by a word, they disdained it. Although Holland offered a separate peace, England refused to accept it; nor have we heard that she has agreed even to negotiate for, much less to conclude, a general peace. She enjoys full credit, and therefore she can carry on the war; and the object of it on her part is so great, that therefore she will carry on the war. Hitherto she has carried it on alone and unsupported. Years have elapsed since it was pretended, that she could not find resources for another campaign, and yet campaigns have succeeded each other with increasing expense, and are still likely to go on. With a credit like hers, there can be no want of the means, and therefore we have no reason to expect that she will be deprived of them while that credit exists. How soon she may find associates, or how soon we may lose them, no man can say. While the mutability of all human affairs continues to be the theme of common and daily observation, no wise man will rely on the frailty of human opinion, and yet opinion may in a moment sway the politics of different powers, so as totally to change all present appearances. While the war continues England has hope. The times and chances which happen to all may favor her, and at worst she can conclude a peace, which cannot be much more pernicious than the loss of these States. We ought therefore to expect that Great Britain will continue the war, and we ought even to expect that she will find allies to assist her in it. We ought therefore to prepare ourselves for increasing efforts of opposition.

But admitting that negotiations were opened, and in a train of effect, what then would be our situation? Are we in capacity to insist on useful and honorable terms? There is hardly a State in the Union but has an interest in objects, which under our present circumstances are unattainable. While the enemy continue in possession of New York and Charleston, we cannot expect such a peace as every good American ought to desire. Nor shall we obtain that security, without which peace is no longer a blessing.

The successes of the last campaign will undoubtedly derange the plans of the enemy for a time, but whether or not those successes will prove decisive must depend upon ourselves. If we indolently lie still until the enemy can obtain reinforcements, our prospects at the close of next campaign may be as gloomy as at the opening of the last. If we exert ourselves to strike the enemy before he can receive aid, we may perhaps drive him entirely away, and then indeed we shall have reason to expect peace. It has been the common trick of the enemy to pretend at every success we have obtained, nay during every winter of the war, that it would immediately cease, and they have had emissaries among us to inculcate that idea. The consequences have been, that we have never been in a state of preparation as soon as they have, notwithstanding the Atlantic ocean lies between the two countries, and places them at least three months asunder as to all military operations.

No thinking man can hesitate a moment in the opinion, that we ought to prepare for an early and vigorous campaign, in order to take New York and Charleston. But some persons of sanguine temperament say, that the enemy will evacuate one of these places. If it be so, surely they will be so much stronger at the other, and of course it will be so much the more difficult to expel them from it. Possibly they may incline to evacuate one of these places, and if so they will be determined by the knowledge of our force. If we are formidable it will be an additional reason with them for evacuation. But other persons still more sanguine suppose, that they will evacuate both places. This is surely absurd, for even if they negotiate for peace, they will hold something as a ground, on which to make demands, and if they prosecute war, they will certainly not abandon the objects of it. Admitting, however, that the enemy may have some thoughts of this sort, surely the determination will be greatly influenced by the consideration of our relative force or imbecility. And even if they should entirely quit the United States, still there are objects well worth fighting for, objects too which cannot be obtained without fighting.

Every reason, therefore, combines in showing the propriety of commencing our operations very early, and, therefore, everything has been done for the purpose, which the means in my power would admit of. It remains only with the several States to provide men and money, and to make that provision as early as possible; for the old adage, that "he who gives early doubles thereby his gift," can never be more applicable than on the present occasion. For whatever may be the different opinions of different men, all must agree, that the only way to secure peace is to be prepared for war. And depend upon it, that if we neglect the present moment, we shall have bitter cause to lament our negligence.

In the letter before mentioned, I did myself the honor to observe, that I expected the future expenditures would be greatly curtailed. This has happened, but I also observed, that the most rigid economy had its bounds, and could not exist without the punctual performance of those engagements, on which the first steps towards it must depend. I have not yet reached those bounds, for reasons I have already stated, and how long it will be before I arrive at them, must depend on the ability to perform the engagements I have made; and surely it is unnecessary to add, that this ability must depend on the exertions of the States. I mentioned also, that I should shortly advertise for contracts, as the most effectual means of husbanding our resources.

With respect to this matter of contracts, I have some reason to believe that it has been misunderstood, and, therefore, I shall take the liberty, of giving some little information on the subject. When I was called into office, I had a thorough conviction, that supplying by contracts was the most effectual and most economical, but I had no money, and credit was at so low an ebb, that most people doubted whether any one would contract. At that time, the State of Pennsylvania gave me assurances of hard money to procure the articles of specific supplies due from that State on the requisition of Congress. I immediately purchased a part of those supplies on my private and personal credit and assurances, and I advertised for a contract to supply rations at Philadelphia. By degrees I extended the contracts throughout Pennsylvania; whereas, if I had advertised for them at once, I might, probably, have failed in obtaining proposals; or if not, those who inclined to risk it would have made the public pay dear for the credit reposed in the Minister. The contracts of Pennsylvania were paid out of moneys granted for furnishing the supplies, and the articles are carried to account on the requisitions. Having reason to expect support from the middle and eastern States, I have extended the contracts for supplies through all the country northward and eastward of Potomac river; and in order that you may judge of the effect, I will mention, that, on application for pay to the department of the issuing Commissary, I required a return of them, and of their monthly pay; which being made, I found that within that district it amounted to ten thousand five hundred and twentyfive dollars; which is annually for the salary alone, exclusive of all other expenses, one hundred and twenty six thousand dollars.

The rations delivered at West Point and its dependencies are supplied at the rate of nine and a half ninetieths of a dollar for each ration; consequently, that sum will yield one million one hundred and ninetysix thousand five hundred and twentysix rations, which is something more than three thousand two hundred and seventyeight per day. But when it is considered, that salaries were not the only expenses of a department, it is certainly estimating within bounds to suppose, that five thousand soldiers are now fed every day on what it formerly cost the public to support the issuers of provisions in a part of the United States. I should have pursued the business of contracting throughout America, had I received any assurances of taxation, which would warrant the procedure. But I had none, and I did not dare risk myself in making engagements, which I found no probability of keeping. But whenever I can see any way clear, I shall certainly do it, and, I trust, that the effects will be as beneficial as they have been elsewhere.

Having already observed on the necessity of early and vigorous exertions, and mentioned that I had done everything towards them which was in my power, I have only to add, that unless we are properly supported, everything so done has been thrown away. The views of the Commander in Chief will be disappointed; the combinations intended with our allies will be deranged, and the enemy will derive that advantage from our negligence, which we might have derived from their weakness.

It gives me great pain to learn that the public service is too often interrupted, and the attention of men diverted from it by little trivial disputes of a private, partial, or local nature, which are comparatively of little consequence. This is a conduct unworthy of wise men, and such as cannot be justified. Surely it is best first to provide for the defence of our country before we squabble about minute objects of controversy. If we should be told that the British were so materially divided in their Parliament, that in contentions about trivial disputes they delayed granting to the Crown effectual aid of money, we should certainly form very splendid expectations from that circumstance. Judge then, whether our enemy's hopes are not raised by our dissensions. Or rather let me ask, if they have not loudly asserted that they would prove ruinous to the cause of independence; nay, have they not boasted that those dissensions originated in British influence or British gold? What then must be the opinion of foreigners and strangers? What will they not conclude from a conduct, which according to their habits of reasoning, can only be accounted for by disaffection, folly, or madness? Let us, for heaven's sake, while engaged in a cause the most honorable, the most virtuous, and which must endear the present generation to future ages; let us preserve a conduct noble, dignified, and worthy of that glorious cause; in pursuit of the greatest, the dearest object which man can possess; in the fair road to peace, liberty, and safety, let us not fall out by the way. But united to, and supporting each other, let our efforts be equal to our claims, and let us show that we have the perseverance to obtain what we had the spirit to demand. Let us at once become independent; really and truly independent; independent of our enemies, of our friends, of all but the Omnipotent.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, February 18th, 1782.

Sir,

I do myself the honor to submit to the United States in Congress assembled, through your Excellency, the propriety and necessity of adopting immediate measures for adjusting the accounts of the four following departments; namely, the Commissary's, the Quarter Master's, the Hospital, and the Marine; up to the last day of December, 1781, inclusive. Having long and attentively considered this subject, it appears to me to be among those cases, which do not admit of the common forms. There must be a degree of vigor and decision in the conduct of the business, which few men possess a knowledge of; business not commonly to be found, and such uncorrupted and uncorruptible integrity as will give security to the United States. What may be an adequate reward for the services of such men, I really do not know, but I have such reason to believe that many fraudulent practices have happened, and that, in some cases, considerable balances are due to the United States, that I cannot in consistency with my duty avoid proposing to Congress the following resolutions.

"That four Commissioners be appointed for the settlement of accounts, namely; one for the Commissary's department, one for the Quarter Master's department, one for the Hospital department, and one for the Marine department; and that each of the said Commissioners have full power and authority to liquidate the said respective accounts up to the last day of December, 1781, inclusive.

"That the Superintendent of Finance be authorised and directed to appoint the said Commissioners, and to agree with them for a reward for their services respectively, and also with respect to the allowances to be made to their clerks; and that he report the names of the said Commissioners to Congress.

"That it be recommended to the several States, immediately to pass laws authorising such Commissioners to send for persons and papers, and to examine witnesses upon oath."

These I propose only as a sketch, which the wisdom of the United States in Congress will mould into such form as shall be most proper. I will only observe one thing, which is, that the proposition that I should appoint such Commissioners comes from me. I have no particular persons in view, but shall be happy to find those who are proper. I am far from being desirous of appointment to office, but this is an occasion so important, that I cannot sacrifice my duty to false notions of delicacy. Characters fit for such an intricate and difficult business cannot easily be found, still less can they be known to the several members of Congress, and the debates which sometimes take place when appointments are made, deter the most proper persons from putting themselves in the way of nomination. Besides this, as it is not possible that the several members can be sufficiently acquainted with the talents of the particular persons, it is better that the appointment should be in one, who can be made accountable for an improper choice. I take the liberty to observe, that nothing will give more satisfaction to the people at large than to find that these things are put in a proper train; for the complaints are general, and I am convinced, that in some cases at least they are well founded.

My reason for urging this matter at the present moment is, that I am not only pressed on the subject by several dismissed officers of those departments and by their creditors, but I have also had recent information of very considerable frauds and practices; and on conferring with the Controller of the treasury this morning, the plan above proposed appeared not only the most eligible, but indeed the only effectual one. It is submitted, with all due deference, by your Excellency's most obedient, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, March 9th, 1782.

Sir,

On the 20th and 27th of last month, the United States in Congress passed Acts for settling and finally adjusting all the public accounts, up to the first day of the present year. These important Acts would immediately have been transmitted, but I wait the event of some additional propositions upon that subject, which are now under the deliberation of Congress, and then I shall have the honor of laying before you the whole of this very important business, so that it may be maturely considered in a general and comprehensive point of view.

At present I shall confine myself to congratulating your Excellency, which I do with the most unfeigned pleasure, on the prospect which begins to open, of adjusting these intricate and almost obsolete transactions of relieving the various public creditors, and consequently of rescuing and restoring the public credit. Let me add, Sir, that I consider these things essential to the consolidation of our federal Union, to the promotion of general harmony and generous confidence throughout the United States, and to the establishment of our glorious independence on the solid basis of justice. I am to request, Sir, that your public accounts be put in a state of preparation, so that the person appointed for that purpose may be able speedily to investigate them; as much time and consequently much expense will be thereby spared.

I have the honor to be, &c.

ROBERT MORRIS.

TO MR GRAND, AT PARIS.

Office of Finance, March 9th, 1782.

Sir,

In a letter, of this day to Benjamin Franklin, Minister Plenipotentiary of the United States of America to the Court of Versailles, I inform him, (which information I am now to convey to you,) that I shall draw bills on you, as a market for them may offer, to the amount of five hundred thousand livres tournois, on account of the United States of North America. I have detailed to him everything necessary on the subject, which he will communicate. I am to request of you, that you will duly honor and pay those bills, giving me notice of every transaction, from time to time as occasion may offer and require. The necessary funds are, I presume, in your hands already, or will be before this reaches you; but at any rate Dr Franklin will provide them in season.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 9th, 1782.

Sir,

The Secretary of Foreign Affairs yesterday transmitted to this office, the letters and invoice brought by Captain Jackson from Messrs Neufville of Amsterdam. Upon perusing them I am very sorry to observe, not only that there has been very great mismanagement, but also that the letters do not contain that clear and satisfactory account of the business which ought to have been transmitted. There is reason to believe, that a considerable part of these goods are of British manufacture, and consequently such as cannot be brought within the United States. As these matters are not clearly stated, it would be useless to go at present into an inquiry who has been or is to blame, and therefore any particular observations from me would be both unnecessary and improper.

I have written to Dr Franklin to take this business under his inspection, and to cause all the goods of British growth and manufacture to be sold. As to the remainder of the goods, the propriety of selling or shipping them must depend on many circumstances, a knowledge of which cannot be acquired here, so as to give consistent orders what shall be done there. I have, therefore, desired Dr Franklin to cause the goods to be so disposed of, as shall to him appear most for the interest of the United States. My reasons for referring the whole matter to him were, because he has already had so much to do with it as at least to have paid the money, and is, I, presume, privy to the original agreements made by Colonel Laurens; because he will know what goods are coming out from France, and consequently how far any or all of those in Amsterdam, which are not of British manufacture may be necessary for us; because he will have an opportunity of explaining such parts of the business as may be proper to explain to the Court of France, who has had some reason to complain, or at least thinks that she has; and, finally, because I shall draw bills, the payment of which will be at Paris under his direction, and if the other resources fail, the proceeds of these goods will enable him to honor them.

With great respect, I am, &c.

ROBERT MORRIS.

TO THE BARON D'ARNOT.

Office of Finance, March 18th, 1782.

Sir,

I have received your note of the 9th instant, and in answer am to inform you, that if his Prussian Majesty should incline to procure for his subjects a part of the emoluments attending the commerce with this country, the importance whereof can be easily estimated, from the riches it poured into Britain while she enjoyed the benefit of monopoly, all that is needful to be done is, to set open his ports to our vessels, and protect them whilst there. The merchants of this country are unrestricted in their enterprises and commercial pursuits; they will naturally trade where they shall find their profits most certain and permanent; and I have not a doubt but Prussia would have her share of their trade, were the government to give the proper encouragement to it.

As to the supplies of the army of the United States, I have determined in future to contract for all such articles with individuals, on whose abilities for procuring goods on the best terms, I can depend. They will import them at their own risk; consequently you see I can by no means engage to purchase any of the commodities you mention at St Thomas's; but as that island seems to be the general mart in the West Indies, where the people of America resort to exchange their produce for the manufactures of Europe, I have not a doubt but any of his Prussian Majesty's subjects, who may be inclined to this business, will readily find an occasion of disposing of their goods there, and receiving in exchange for the same, the staple articles of this country.

As to what relates to your personal affairs, you will find that I have conformed to your views, and I expect what is done in that respect will be much to your satisfaction.

I am, Sir, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, March 23d, 1782.

Sir,

Applications being frequently made by the several Loan Offices, for orders to renew sets of exchange, in consequence of proof made to them by the proprietors of interest bills, that the first, second, third, and fourth bills, have been lost and destroyed, or by accident prevented from reaching the persons to whom they were remitted, and as it is but just in such instances to renew the same, I have caused a number of bills to be struck, of the same denominations, and in the same style, manner, and tenor, except that they are fifth, sixth, seventh, and eighth bills, and when made use of will be filled up in the same manner as the first four were, and issued from the same office. I give you this notice, that you may direct the banker to pay due honor to any one of those bills in all instances, where no one of the set, consisting of eight, has before been paid; and of course he will before such payment always satisfy himself, that none of the others have been honored. This general advice will I think answer the purpose, and render unnecessary particular advice with each renewed set of exchange.

I have the honor to be, &c.

ROBERT MORRIS[4]

TO OLIVER PHELPS.

Office of Finance, March 30th, 1782.

Sir,

As I promised during the conference, with which you honored me yesterday, to give an answer in writing to the proposition you made in consequence of a resolution passed by the Legislature of Massachusetts, on the 5th day of this month, I shall now perform that promise, but in doing it I shall think it unnecessary to go into that full detail of reasoning on the subject, which took place in conversation between us; and I am the more readily induced to decline this, because you, Sir, seemed satisfied of the force and propriety of the reasons urged; wherefore when you come to make the communication to the State, your candor will induce, and your abilities enable you, to do me ample justice.

I will, therefore, content myself with observing, that in all countries engaged in war, experience has sooner or later pointed out contracts with private men of substance and talents equal to the undertaking as the cheapest, most certain, and consequently the best mode of obtaining those articles, which are necessary for the subsistence, covering, clothing, and moving of an army. The experience of other countries could not satisfy America. We must have it of our own acquiring; we have at length bought it; but the purchase had nearly been our ruin. I had been long since convinced, that nothing could save us, but opening all the American ports to unrestrained commerce, all the markets of America to the free sale and purchase of every article of its production and import; and by taking away all restraints on money, leave every individual to judge and act for himself. I labored hard in consequence of this conviction, to introduce such measures into the State, of which I am a member, and finally was happy enough to succeed; the good consequences were immediately seen and felt; the example, has been followed, and it is to be attributed to the freedom, which we now enjoy, that persons can be found willing to contract for furnishing supplies to the American army.

I have succeeded in obtaining many contracts on very reasonable terms. The saving to the United States thereby is immense, and I am confident, that neither the patriot who fills the chair of government, the honorable gentlemen who compose the council, nor those who represent the country of Massachusetts, would wish me to make an engagement, which in partiality to that State, would in its effects destroy a system, that has been proved so truly economical. I cannot, Sir, enter into the engagements proposed by Massachusetts, without being exposed to similar claims in twelve others, and I feel the absolute necessity and propriety of declining every application of the kind. The persons who contract with me to supply the armies of the United States, must make purchases of the articles necessary; their interests will lead them to those markets, which will supply cheapest, however remote from the scene of action, and this will give all the States a fair chance of obtaining money, or bank notes, through that channel to pay their taxes. Those who will give most labor or goods for money and notes, will undoubtedly obtain the greatest share thereof.

I cannot quit this subject, without observing, that taxing in specifics is expensive to the people, cumbersome to the government, and generally inadequate to the object. I think if every individual in the country is left to dispose as he pleases of his property, and compelled to pay his taxes in money or bank notes, he will satisfy the tax by the sale of much less of that property, than in the case of a specific tax taken from him to raise the sum. Nothing could gratify me more than to have an opportunity of evincing to the State of Massachusetts how much I am disposed to comply with her wishes in every instance, that my general duty to the United States will permit.

I have the honor to be, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, April 15th, 1782.

Sir,

In a circular letter, which I had the honor to address to your Excellency, on the 9th day of last month, you were informed, that the United States in Congress had on the 20th and 27th of February, passed Acts for settling and finally adjusting all the public accounts; and that those Acts would have been transmitted immediately, but that I was induced to wait the event of some additional propositions upon that subject, which were then before Congress.

As I now discover that those propositions meet with much greater delay, than at that time was expected, and as it is still uncertain when they may be decided upon, I think it improper to detain longer the Acts that were passed, although several considerations induced a desire to have the whole system communicated to the several Assemblies at one and the same time.

You will observe, Sir, that it is earnestly recommended to the several Legislatures, duly to empower and authorise the United States, in Congress assembled, to make a final settlement of the proportions to be borne by each respective State, of the general expenses of the war, from the commencement thereof, until the 1st day of January, 1782. An immediate compliance with this recommendation is of infinite importance to the Union, as it is also to each of the States. No determination of quotas, which Congress can at this time possibly make, will create a difference for or against any State equal to the expense, which will arise either by disputing its quota, or by delaying to have it fixed. If Congress are now empowered, they must be determined by general principles, and if the decision is delayed ever so long, general principles must at last be resorted to, and that after large sums shall have been expended by each of the Governments, in attempting to ascertain their respective numbers of inhabitants, value of property, quantity of lands, annual income, &c. The returns on these points severally, cannot be made with certainty and exactitude as to the time past, and therefore they will only afford more ample field for disputation; disputes, which if the cause be not removed by a compliance with the present requisition, may probably deprive us of the blessings of peace after the war with Great Britain shall cease.

I do not think it necessary to detail the reasons, which induced Congress to adopt this measure, but I cannot help observing, that it is to the want of a decision on this point, that the languor and want of exertion of the several States are to be attributed. That fatal assertion that each has done most, which each has made and repeated, until it has gained but too much credit, would never have obtained a place in the minds of men, who really love their country and cause, had the requisitions of Congress been made annually for money, and the quotas fixed finally at the date of the demand. The compliances of each would in that case have determined their respective merits or demerits; we should then have seen a competition the very reverse of that which has for some time past prevailed; and it is not yet too late. Let us settle the accounts of the past expenditures, adjust the shares which each State has to pay, but let the settlement be final, or we do nothing. And if on the requisition of men and money for this, and for future years, the quotas be finally fixed, and the compliances be made publicly known, we shall banish that distrust, which I am sorry to say now exists between the States, and in place thereof excite the noble ardor, which animated our conduct in the commencement of the contest. The strife will then be which shall be foremost in contributing their share to the support of that war, on the success of which depends the political existence of all.

A desire to name commissioners of approved abilities and character, has induced me to delay such nominations, until I can obtain information of suitable persons from each State. I shall very soon proceed in this business, in such manner as to me shall seem most likely to obtain honest, impartial, and equitable settlements of the public accounts.

I have the honor to be, Sir, &c.

ROBERT MORRIS.

TO NATHANIEL APPLETON.

Office of Finance, April 16th, 1782.

Sir,

I am indebted for your letters of the 14th and 28th of last month. Having personally a great regard for your Governor, it gives me pain to disapprove of any of his measures, and probably he never could have given cause for blame by any delay of the impost law, had he considered how many widows and orphans, as well as other deserving persons, friends to their country and its cause, are deprived of the means of comfortable subsistence, by being kept out of that interest, which is so justly their due, and which the revenue to be raised in consequence of that law was intended to discharge.

I know he has a benevolent heart; I know that he is generous; and principles of justice will always have their proper influence over him. I beg you will remind him, that his generosity, humanity, and justice, are all concerned in promoting the establishment of permanent revenues, sufficient to discharge the interest of our public debt. Nay, more, the political existence of America depends on the accomplishment of this plan. We cannot be called a nation, nor do we deserve to be ranked amongst the nations of the earth, until we do justice to those, who have served and trusted us. A public debt, supported by public revenue, will prove the strongest cement to keep our confederacy together. Sound policy would also dictate, that we should do justice to those who have trusted us, in order that we may have pretensions to credit in future. We might then tax the present race of citizens six pounds, instead of a hundred, and leave posterity to pay the principal of a debt contracted in consequence of our distresses and necessities, but from which they will derive ease and emolument. I could say a great deal more on this subject, and probably shall to the world at large, if the just measures of Congress continue to meet with such ill judged opposition.

I am, Dear Sir, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, April 17th, 1782.

Sir,

In consequence of the communications made to me by his Excellency, the Chevalier de la Luzerne, since his return from Virginia, I shall proceed to draw bills upon Mr Grand to the extent of five hundred thousand livres monthly; so that computing the months of January, February, March, and April, I have now to draw for two millions of livres; as I hope and expect that the five hundred thousand livres, already drawn, may be provided for out of the balance due on the Dutch loan. This supply comes most seasonably, and at a more leisure moment you will be charged with the proper acknowledgements to the Court. I must however repeat, that the sum requested for the service of this year will be necessary to enable me to support the campaign, and perfect my arrangements; it will be my constant study to draw forth our own resources and lessen our demands on France; but these things require time.

I find it will be advantageous to draw upon Holland and Cadiz as well as on Paris; and, therefore, I request that you will desire Mr Grand to give immediate orders to Messrs Fizeau, Grand & Co. in Amsterdam, to honor any bills I may draw on them, with directions to take their reimbursement on him, for account of the United States. He must also give similar orders to Messrs Harrison & Co. of Cadiz, and I will furnish Mr Grand with regular advice of every bill I draw, whether on himself or either of those houses. My bills in the whole will not exceed the sums to which I am limited, and the commission those houses charge will be paid by Mr Grand. I expect it will not exceed a half per cent; respecting which I shall write to them. I am induced to draw on those places, because the sale bills will thereby be extended, and the price better supported.

I have the honor to be, &c.

ROBERT MORRIS.

TO JOHN JAY.

Office of Finance, April 23d, 1782.

Dear Sir,

You have enclosed herewith, the copy of an official letter to the Secretary of Foreign Affairs, which contains some information on subjects that you ought to know. It has been my intention for some time past to give you a detail of circumstances, which have happened since the date of my former despatches; but the occurrences of every day employ my whole time, and engross my whole attention, especially for the last six weeks, as I have been deprived of assistance. The first leisure moments shall be devoted to make you acquainted with the situation of things here, and in the meantime you may indulge the pleasing idea, that system and regularity are dispelling the clouds in which our affairs have been enveloped.

I am, very sincerely, &c.

ROBERT MORRIS.

GEORGE WASHINGTON TO ROBERT MORRIS.

Head Quarters, April 23d, 1782.

Sir,

I am obliged to you for the copy of the contract you have been pleased to send me, under cover of your favor of the 15th instant. It came very opportunely, as I have already been applied to for a determination upon the points submitted to my decision.

I am very glad to find that an Intendent, appointed by you, is to attend the army, and to hear and decide causes of complaint or uneasiness, which may arise between the army and the contractors. As we are still to gain knowledge by experience, other complaints than those which have already occurred may yet arise; and I shall be very happy to be relieved from those troubles as much as possible. I wish you may be fortunate in the appointment of this person, and that he may be with the army at an early period.

You may be assured, that I am fully persuaded of the importance and utility of the present mode of feeding the army, and that I shall take every occasion to impress the same ideas upon the minds of the officers. I am pleased to find, that saving the complaints, which have arisen in their execution, they are generally inclined to acquiesce and promote the contracts; and you may depend, that I shall take pleasure in giving the gentlemen concerned in our supply, every assistance and protection in my power, consistent with that justice, which I think is due to the army.

I have the honor to be, &c.

GEORGE WASHINGTON.

TO MAJOR GENERAL GREENE.

Office of Finance, April 24th, 1782.

Sir,

The several bills you found it necessary to draw upon me have been punctually honored, and I am pleased at having been able by this means to strengthen your credit and provide you with money, which I dare say will, agreeably to your declaration, be expended only on occasions of pressing necessity. Would it were in my power to make you perfectly easy on the score of money; you would then experience the alacrity with which my compliances would be made.

I have observed by the tenor of several of your letters on the subject of the confederation, that your sentiments coincide entirely with my own. The inefficacy of that instrument is daily felt, and the want of obligatory and coercive clauses on the States will probably be productive of the most fatal consequences. At present they content themselves with the assertion, that each has done most, and that the people are not able to pay taxes. Languor and inexertion are the offspring of this doctrine, and finally the people, who are said to be incapable of bearing taxation, actually pay double the sum, that would be necessary in the first instance. Nothing on my part has been omitted that I could think of, to stimulate them to exertions; and I have given them every encouragement to support my arrangements, that could be derived from regularity, system and economy; but all this does not produce the effect it ought; there are in every Legislature, characters too full of local attachments and views, to permit sufficient attention to the general interest. I am perfectly sensible, and was the day I became Superintendent of Finance, of the difficulties that are to be encountered. I know full well that it requires much time, more patience, and greater abilities than I claim, to bring the finances to the order in which they ought to be in every well governed country. But I apprehend this knowledge ought not to deter either you or me from continuing the struggle with those difficulties. If I had been deterred by their appearance from the acceptance of my appointment, our affairs would probably have been worse than they now are, or if you had declined to oppose the British arms in the Southern States, Virginia might now have formed the boundary line.

You, therefore, my Dear Sir, must continue your exertions, with or without men, provisions, clothing, or pay, in hopes that all things will come right at last; and I will continue mine until somebody more competent shall be found to relieve me. The Secretary at War will say everything that is necessary with respect to men, clothing, short enlistments, and future operations.

With respect to the pay of the army, we have abolished the practice of partial payments. The officers with you will be furnished monthly with their subsistence money, and let their distance be what it may, they shall have the same payments with those that are nearer; for I never will consent to partial payments so long as it depends on me. How much pay I shall be able to make, depends absolutely on the collection of taxes in the several States. If they comply tolerably well with the requisition of Congress for the year 1782, I will make tolerably good pay to the army for that year, but if the States will not furnish the means, it is impossible. The discontents of the army should in justice be directed to the Legislatures of those States, which neglect or delay to pay their quotas of the continental tax, and it shall be clearly known in future which they are.

I am, Sir, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF VIRGINIA.

Office of Finance, April 27th, 1782.

Sir,

In a letter from the Minister Plenipotentiary of France, of the 22d instant, is the following paragraph.

"His Majesty having consented to furnish the State of Virginia with arms, clothing, and munitions, for a sum, with the amount of which I am unacquainted, the Minister desires that Virginia would render an account of the same to the United States, and that you would close the business, and the amount which has been advanced by France to Virginia, shall be deducted from the sums loaned to the United States."

My answer of this date is as follows.

"With respect to the supplies for the State of Virginia, I have already had the honor of mentioning to your Excellency, that I could by no means consider purchases made for any particular State in the Union, as properly chargeable to the United States. This was in a letter of the 26th of November last, in consequence of your application relating both to Maryland and Virginia. If Dr Franklin has asked the supplies on the credit of the United States, they will, of course be brought to their account. But I cannot conceive, that this has been done by him, as I do not know of any orders to do so from the Congress. Your Excellency will, I am confident, see with me the impropriety of listening to the applications made by separate States, and be convinced how much it is the duty of those to whom the administration is committed, to oppose these appearances of disunion in our councils; appearances, which, however unfounded, are not the less injurious. The State of Virginia, is, as you well know, far from being singular in her applications abroad for separate aid, and your Excellency is better informed than almost any other, of the evils which have resulted from them. I do not mention this with a view to blame those who made, or those who granted the requests, alluded to. On the contrary, it gives me pleasure to find, that in some instances among so many, a fruitless recourse has not been had to the purses of individuals. As there is a hope that these irregularities may no longer take place, I will not absolutely decide, and must pray that this question be for the present left open; as I am extremely desirous not to injure the operations or credit of any particular State, while I pursue the road marked out by public duties. I shall transmit to the government of Virginia that part of our letter, which relates to this object."

I presume that it will be unnecessary to remark to your Excellency, how incapable the United States are of assuming burdens of debt, while so little attention is paid to put the public treasury in a situation to defray the necessary expenses of the current service. I must pray to be furnished with an exact account, as soon as may be, of the sum due by the State of Virginia to the Court of France, and of the funds which the State propose to apply in discharge of it; in order that I may, if possible, take such measures as may preserve her credit, and not be injurious to the United States. It becomes my duty, Sir, on this occasion, to mention further the sum of sixtysix thousand eight hundred and fiftythree livres, which were expended by Mr Lee in the purchase of supplies for your State; which were acknowledged by a certificate of the 13th of March, 1780, with a promise to account.

Your letter of the 28th of March last has been received some time ago.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE SECRETARY OF FOREIGN AFFAIRS.

Office of Finance, April 27th, 1782.

Sir,

His Excellency the Minister of France having informed me on the part of his Court, that no extraordinary sums will be paid to the Ministers of the United States in Europe, I must request that you will furnish me with an account of the several salaries payable to the foreign Ministers and their Secretaries; and I will make out bills in your favor on the Banker of the United States in Paris, for the last quarter, commencing with the present year. I must, at the same time, pray you will require of those gentlemen, the state of their several accounts with the public for salaries, that the whole may be adjusted, and all future expenses of that sort be classed under the proper head of the Department of Foreign Affairs.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF MARYLAND.

Office of Finance, April 30th 1782.

Sir,

I had the honor to receive your Excellency's letter, dated In Council, Annapolis, April, 1782, previous to which I had in mine of the 15th instant, transmitted the Acts of Congress, which you mention. I hope they will meet the wishes of your Excellency and of the State, so that a speedy compliance with them may forward the great business they are formed to accomplish.

I am much obliged by your Excellency's observation, as to the propriety of stating how much money is to be expended. The estimates of the current year were formed by Congress; the accuracy of them I cannot answer for, but rather incline to think they will fall short of the object proposed. The loose manner in which business has formerly been conducted, did indeed render it impracticable to frame very precise estimates. That those adopted are not exorbitant, will easily be seen, by comparing the sum total with the expenditure of former years. It is my intention to show by the exhibition of clear accounts, how the public money intrusted to me has been expended. This shall be done publicly, and then estimates formed agreeably so such accounts will be clearly understood, and convey that satisfaction to the mind of every candid man, which I am desirous of imparting.

Your Excellency will easily perceive, that the primary step must be to grant money, and the accounting for it a secondary one. I presume that by the American Constitution, the determination on sums to be appropriated must be vested in the supreme representative, and I hope there is so much confidence in the wisdom and integrity of that body, as to believe that they do not ask for sums which are unnecessary.

Before I close this letter I will pray leave to repeat to your Excellency a sentiment often expressed before, that I despise every scheme or system, which must depend for its success on mystery or concealment, and am convinced that our credit will never be fully established, until all our public affairs are open to the public eye. I ardently long for the arrival of that moment, when I may lay a state of them before the world, in an account of the moneys received and the moneys expended, with the debts we owe, and the produce of the funds assigned for the payment of them. Your Excellency is not a stranger to many of the reasons why such an account cannot now be framed, and will, I doubt not, sincerely co-operate with me in removing them.

I have the honor to be, &c.

ROBERT MORRIS.

TO JOHN WENDELL.

Office of Finance, May 1st, 1782.

Sir,

I have been duly honored with yours of the 7th and 15th of April. From what you propose with respect to the establishment of a bank in New Hampshire, as well as from the ideas which you say are entertained of the increase of my private fortune, I am convinced that you and other gentlemen are alike mistaken as to the nature of the National Bank, and my official connexions and transactions. The confidence you have been pleased to repose in me, and your communication of sentiment as to public affairs, require of me, that I I should give such explanation of both, as the multiplicity of objects, which engross my attention will permit.

The bank is a mere thing, in which any man may be interested, who chooses to purchase stock. Personally I have no other concern in it, than any other gentleman may have, who pleases to invest his property in it. The government have nothing to do with the bank, except merely to prevent the Directors, should they be so inclined, from extending their operations in a manner disproportionate to their capital, thereby endangering their credit. Any aid which the government derives from the bank is by lodging proper securities with it, and borrowing money for short periods on the discount of interest at the rate of six per cent, which is receiving ninetynine and paying a hundred at the end of two months. The moneys so borrowed are punctually repaid.

By accepting the office I now hold I was obliged to neglect my own private affairs. I have made no speculation in consequence of my office, and instead of being enriched I am poorer this day, than I was a year ago.

You will, from what I have said, see two sufficient reasons against adopting the plan you have proposed. That I have not money, and that I have totally quitted commerce and commercial projects, to attach myself wholly to a business which requires my whole attention. A principal object of my last letter was to acquaint you with this circumstance, and by what I have there said I meant to acquaint you also with the manner of doing business at the bank. If, for instance, you draw a bill in favor of your factor here on a merchant of reputation, payable at sixty days' sight, and that merchant accepts the bill, your factor can get ninety dollars for every hundred of the bill by discounting it at the bank, and with that money can purchase the articles you direct; but you must then be careful to make due remittances to the merchant on whom you draw. If by connecting yourself in this manner with any gentleman in trade here you can derive any benefit, it will afford me a very sensible pleasure, but as to myself, I must again repeat, that I have quitted trade; and I will add, that the closing my past dealings, which is now the only private object of my attention, requires time, which I cannot spare for the purpose; and of consequence it is, with everything else of a private nature, very much neglected, to my very great disadvantage.

I am, &c.

ROBERT MORRIS.

REPORT TO CONGRESS ON A MEMORIAL OF THE MERCHANTS OF PHILADELPHIA.

Office of Finance, May 4th, 1782.

The Superintendent of the Finance of the United States, to whom was referred the report of a committee on a memorial of the merchants of Philadelphia, and motion thereon, begs leave to report,

That the navy of the United States is not in a situation to afford protection to their commerce, nor can it be rendered equal to that object for some considerable time, even if the necessary funds could be procured. That there remains no mode of obtaining such protection, unless from the allies of the United States, or the powers engaged with them in war against Great Britain.

That the commerce of these States is of such importance, that it is not improbable the Court of France would afford permanent protection if in their power; and that in the interim some relief may, perhaps, be obtained from the fleets in the West Indies.

The following resolution therefore is submitted; That the Superintendent of Finance prepare a statement of the commerce of the United States, together with a plan for the protection thereof.

That the Secretary of Foreign Affairs communicate the same to the Minister of his Most Christian Majesty, and cause application to be thereupon made by the Minister of these States to the Court of Versailles; and that the Superintendent, as Agent of Marine, make application on the same subject to the Commanders of the fleets of France and Spain in the West Indies.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 8th, 1782.

Sir,

His Excellency, the Minister of France, in a late letter to me has officially declared, that in future no sums will be paid to the Ministers of the United States in Europe by his Court. It becomes necessary, therefore, to make provision for their support here. I immediately applied to the Minister of Foreign Affairs for an account of the annual salaries payable to his Department. I have received it this day, and do myself the honor to enclose a copy. I must take the liberty to observe, that the sum is very large, and such as cannot be advanced without greatly retrenching from essential services, at least in the present moment. It will, I humbly conceive, be necessary that arrangements should be taken, so that in future all such salaries as are payable to foreign Ministers be advanced in America, and negotiated by their respective Agents. This will be honorable to the United States, and I should suppose more agreeable to the gentlemen concerned.

The Minister of France has also observed, that the accounts between his Most Christian Majesty and the United States having become very important, by the greatness of the sums advanced and lent, it is indispensable that measures be taken to adjust them, and to avoid that confusion, which would be introduced by a longer delay. And in consequence, he has desired that Congress would transmit to Dr Franklin full power finally to settle those accounts, and in the name of the United States to execute the proper obligations for securing the debt and fixing the periods of payment. To this he adds, that it is not expected Congress can do anything towards payment during the war, but that they will fix the several epochas at which they shall be made.

To a proposition so reasonable, there will, I presume, be no objection. The solidity of the observation on which it is founded cannot be called in question, and I am induced by it to extend the remark a little further. The great sums which remain unsettled and undetermined between the French Court and the United States are alike unsettled between the latter and their public servants. How the accounts may stand I know not, but it is my particular duty to observe, that there appears to have been but little received for the great sums, which have been expended, and therefore it is highly necessary, that the public accounts of these States with their servants in Europe be also settled. It shall be my study in future to prevent the existence of such accounts, but their magnitude as well as other circumstances, makes me extremely solicitous to have them adjusted.

I have the honor to be, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES

Office of Finance, May 9th, 1782.

Sir,

I do myself the honor to enclose you copies of three accounts, which I have this day received from the Controller of the Treasury of the United States. Each State will from these accounts perceive what still remains for it to do in consequence of the resolutions of Congress, of the 18th of March, 1780.

As this is a circular letter, the observations I make shall be general, and such as result from a general view of the object. The particular application of them, dependent on local circumstances, will be made by those to whom such circumstances apply. The resolutions of the 18th of March, 1780, were in part directed towards the redemption of the old Continental money, and the opinions which may have been formed as to the issuing of a new paper medium, the paying of interest upon it, and the connexion with relation to the old, are immaterial under the present point of view.

Nothing can be more clear and simple than this, that the bills issued by Congress for support of the war should be redeemed by taxes. This was one capital object of the resolutions, and as to the apportionment, I am to presume it was as perfect as the fluctuating nature of human affairs will permit, and more especially so, when the few lights, which could the obtained, and the various circumstances of the several States, are compared with the very variable object of depreciated paper, which was then in contemplation. But, admitting for argument's sake, that the apportionment was not strictly right; this must also be admitted, that to redeem the paper was called for by principles both of reason and justice. It was, therefore, a duty of the several States to comply with the requisitions of their sovereign representative. For any inequalities, either actually existing, or which a subsequent change of circumstances might produce, would admit of a remedy, but a neglect of the resolutions had the inevitable consequence of injuring the public credit, weakening the public operations, and risking our very existence as a people.

But however strong the motives, which should have prompted a compliance, it will not be disputed that some of the States may have been in circumstances not to admit of the exertion, and whether this incapacity has arisen from exterior violences, or the defects of internal polity, or both, is in one sense immaterial, because the eventual consequence is the same. Yet, though charity may for a time overlook these defects, it becomes the duty of each State to apply a remedy, if the evil be in its nature remediable; and should they neglect what is in their power, they must expect complaints from Congress, and the servants of Congress from the other States, and from their own bosoms the admonitions of conscience, which will become more poignant from every moment's delay.

A general view of the accounts now transmitted, will show at a single glance, that large sums of the old paper still remain to be provided for, and it might, perhaps, have been right in Congress to have fixed an ultimate day of redemption for the whole, and charged what remained due after that day at forty for one in specie to every deficient State. This, I say, might perhaps have been right, if the ravages of war and other local circumstances had not required attention and forbearance as to some, if not all. But it cannot be denied, that many are now in a capacity to call in by taxes their quota of this paper. And those who are, should consider what must be the feelings of men, who hold it on the faith of so many promises, such repeated requisitions, and such sacred bonds of national faith and honor. What must be their feelings to find those promises violated, those requisitions neglected, and that faith disregarded? Can it be expected, that while such flagrant instances of national neglect, to call it by no harsher name, are in the view of almost every citizen, we can possibly establish the fair reputation so essential to public credit?

The plea of inability is not to be admitted, excepting, as I have already observed, in some very particular circumstances. Considering our country in a general point of view, this paper laying dead is already lost, and the only question is, whether that loss shall be borne by the whole people or only a part of them. Those who parted with it have received the value, and it would be a flagrant injustice, that the whole tax for redeeming it should fall on those who have received it. Neither can it be supposed, that if any were inclined to promote such injustice it would be borne by the sufferers. And whether these sufferers are individuals or States, the suffering is the same; the sentiment, therefore, must be the same, and so will the conduct be which that sentiment shall dictate.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 10th, 1782.

Sir,

In consequence of the Act of Congress of the 4th instant, I do myself the honor to enclose a state of the American commerce, with a plan for protecting it. I shall, in obedience to the orders of Congress, transmit a copy of this paper to the commander of his Most Christian Majesty's fleet in the West Indies, and make the application which I am directed to him, and to the commander of the fleet of Spain. I take the liberty to suggest for the consideration of Congress, whether any application on this subject to the Court of France would not go with propriety through the Office of Foreign Affairs.

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

ROBERT MORRIS.[5]

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, May 16th, 1782.

Sir,

I have heretofore taken occasion to observe, that the former expenditures of the United States were at a medium rate of twenty millions of dollars annually, for the support of the war. At the present moment, while laboring under a large debt, only eight millions have been asked for. It is evident, therefore, that the sum now required is as little as can possibly answer the purpose. I venture to say that it is not enough. According to the estimates for the year 1782, which were laid before Congress by the late Board of War, the present establishment of the army would require for pay, exclusive of the half pay, near three millions and a half, for rations near two millions and a half, for clothing, about twelve hundred thousand, for forage above three hundred thousand, for the Quarter Master's department, (exclusive of articles on hand) above eight hundred thousand, for military stores (exclusive of articles on hand) near two hundred thousand, for the hospitals (exclusive of medicine and also of sundry stores on hand) above one hundred thousand.

If to all these be added the sum of four hundred thousand for the Departments of the Pay Office, Commissary of Prisoners, and the various other contingencies of service, which naturally and necessarily arise, without mentioning the losses, which happen in war, here will be an aggregate amount of nine millions, and in this sum nothing is estimated for the interest of our debts, for the Marine, and for the Civil List, and the Department of Foreign Affairs.

Of the various expenditures, much was to be provided immediately. The heavy article of clothing, for instance, was indispensable. Many things were to be provided early, in order that the army might operate, and the subsistence is to be paid for regularly and constantly. Yet the States have not been asked for any money before the 1st day of April; and I appeal to them all, whether the supplies of money they have afforded me for the last year were such as would enable me to provide for the present.

A three months' expenditure was permitted by Congress to elapse, before the first payment of two millions was asked from the States; but what have they done? While I write this letter near two months more are gone forever, and a dishonorable neglect endangers our country. Little local objects have postponed those measures, which are essential to our existence, so that the most fatal consequences are now suspended but by a thread. Should they fall on our heads, this solemn protest shall point to the real cause of our calamities. I write, Sir, to apprize you of the public danger, and to tell you I shall endeavor to fulfil engagements, which I have entered into already, that I may quit my station like an honest man. But I will make no new engagements, so that the public service must necessarily stand still. What the consequences may be I know not, but the fault is in the States. They have not complied with the requisitions of Congress. They have not enabled me to go on. They have not given me one shilling for the service of the year 1782, excepting only the State of New Jersey, from which I received five thousand five hundred dollars, a few days ago, and this is all that has come to my hands out of two millions, which were asked for.

Now, Sir, should the army disband, and should scenes of distress and horror be reiterated and accumulated, I again repeat, that I am guiltless; the fault is in the States; they have been deaf to the calls of Congress, to the clamors of the public creditors, to the just demands of a suffering army, and even to the reproaches of the enemy, who scoffingly declare, that the American army is fed, paid, and clothed by France. That assertion, so dishonorable to America, was true, but the kindness of France has its bounds, and our army, unfed, unpaid, and unclothed, will have to subsist itself, or disband itself.

This language may appear extraordinary, but at a future day, when my transactions shall be laid bare to public view, it will be justified. This language may not consist with the ideas of dignity, which some men entertain. But, Sir, dignity is in duty, and in virtue, not in the sound of swelling expressions Congress may dismiss their servants, and the States may dismiss their Congress, but it is by rectitude alone, that man can be respectable. I have early declared our situation, as far as prudence would permit, and I am now compelled to transgress the bounds of prudence, by being forced to declare, that unless vigorous exertions are made to put money into the treasury, we must be ruined. I have borne with delays and disappointments as long as I could, and nothing but hard necessity would have wrung from me the sentiments, which I have now expressed.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 17th, 1782.

Sir,

I do myself the honor to enclose to your Excellency the copy of a circular letter, which I have written to the several States. The situation which I find myself is extremely delicate. The habitual inattention of the States has reduced us to the brink of ruin, and I cannot see a probability of relief from any of them. I rather perceive a disposition to take money from the public treasury, than to place any in it. A variety of causes, which Congress are, I presume acquainted with, prevents the collection of taxes, and delays the payment of them, even after they are collected. In many States they are not laid. I must not conceal from Congress my apprehensions, that the idle hopes entertained from the changes of administration in Britain will increase that negligence, which is but too prevalent throughout the United States.

I might add many reasons, why a call should be made in the present critical moment, and it is evident, that such a call should be couched in terms so pressing, as to stimulate if possible their sluggishness into exertion. But on the other hand, it is evident that if a faithful representation of our distressed circumstances should fall into improper hands, it would be productive of the most dangerous consequences. And when the number of our internal enemies, and the designs of our external ones are considered, there can be little doubt, that such a letter would be handed about soon after its arrival for the illicit purposes of both. At the same time, however, it must be considered, that if any fatal consequences should ensue from the continued negligence of the States, attempts will be made to justify it on the principle, that they were not seasonably apprized of their danger.

I am sure I need not take up more of your time, Sir, in showing the difficulties with which on the present occasion I am surrounded. Urged by them I must entreat the opinion of Congress, whether the letter in question be retained or transmitted. I take the liberty further to remark, Sir, that the declaration contained in it, purporting any intention not to make new engagements, is short of what I am under the necessity of doing, for the public departments are now absolutely at a stand for the want of money, and many things already commenced I must desist from. This cannot be wondered at, when it is considered that near five months of the present year have elapsed without my having received anything on account of its expenditures, except the trifling sum of five thousand five hundred dollars mentioned in the enclosed letter, and that sum, calculating our expenses at eight millions annually, is about one fourth of what is necessary to support us for a single day.

I have the honor to be, &c.

ROBERT MORRIS

TO B. FRANKLIN.

Office of Finance, May 17th, 1782

Sir,

In a letter which I had the honor to write to your Excellency on the 17th of last month, I mentioned the communications of the Minister of France here, by which I was empowered to draw to the amount of six millions in monthly instalments of half a million each. He has since informed me, that no moneys will be paid by his Court except on my draft. It is in consequence of this, that I have drawn the bills contained in the enclosed letter to Mr Grand, which is left open for your perusal. Your Excellency will be pleased to arrange this matter with Mr Grand, so as best to answer the purposes intended. You will also be pleased, Sir, to pay over to Mr Grand on my account such moneys belonging to the United States as may be in Europe, distinct from those to be advanced by the Court for the current year.

I am extremely desirous of having a state of these matters so as to know what dependence can be made on the funds, which are at our command. You would, therefore, confer upon me a very particular obligation by transmitting the best statement in your power. I mentioned to your Excellency in a former letter, that I would write to you on the subject of your salary, more particularly than I then did, but I have since spoken and written to Mr Livingston with relation to those matters, and he will, I expect, write to you and to all our foreign Ministers very fully.