CONTENTS (continued 7)

8thly. The plans of Congress will by this means be greatly facilitated in the States, because the arguments will apply to men's feelings, and they will at once perceive, that it is better to give a permanent revenue of six, than make immediate payment of a hundred. Every term and condition in the plan will then be fair, because if the revenues be such as in the judgment of the Legislature will fall too heavy on their constituents, they can adopt others, borrow on their own account, and pay in their share at the day named. So that the United States will either receive the whole money, and pay all their debts, or they will get solid revenues to fund the whole, or they will receive a part and have such revenues for the remainder.

It also appears to me that our situation requires the utmost despatch, and therefore I wish much that the days named should be shorter than those above mentioned. The Act of the 17th of last month has been duly forwarded to the several States, but there will be no impropriety in taking a shorter mode of valuation for apportioning the debt, and leaving the valuation by the Act of the 17th to apply to the yearly apportionments subsequent to the last year. Various modes of making a speedy valuation might be suggested; such for instance, as that Congress should appoint a commissioner for each State, directing them to meet at this place on the 1st of June and determine, that the valuation made by the majority of those who do meet should be conclusive. If such a line of conduct as this be pursued, those suspicions as to the integrity of Congress, which ill designing men have endeavored to raise must immediately cease. And if justice be not done, public indignation will be pointed to the proper persons.

With respect to the alternative which may be proposed, I am sorry to find that my ideas as to the objects of revenue have not met with the approbation of Congress. I must be indulged in observing, that let the revenues be what they may, it is indispensable that all the collectors be appointed by the authority of the United States, and for the following reasons.

1st. Experience has shown, that the taxes heretofore laid in the States have not been collected.

2dly. It is evident from a consideration of their modes of taxation, (which they are all very obstinately attached to,) that they never will be punctually collected.

3dly. The punctuality in the payment of interest is essential to public credit.

4thly. As Congress forego their right to insist on the principal, it is but just that they should have every possible security for the interest.

5thly. As the people are in either case to pay the supposed tax at certain periods it must be a matter of indifference to what particular man the payment is made.

6thly. The objection raised in favor of elected tax gatherers, viz. that they consider the circumstances of the people, which is saying in other words, that they are guilty of favor and partiality, is the strongest reason why the collectors should be appointed by, and amenable to, Congress.

7thly. It is a kind of absurdity in itself, that Congress should have a right to the tax, and yet no right to send their servants to receive it.

I pray leave also to observe, that the revenues must be co-existent with the debt. No man in his senses will lend on any other terms. If the revenue be only for a fixed period of time, no more can be borrowed on it than the price of an annuity for such a time. And it has already been observed, that money must be borrowed to pay the public creditors, because they have a just right to their money. Another observation on this subject I must take the liberty to impress. The more clear, certain, permanent, and increasing the funds are, the lower will be the interest at which money can be borrowed. If the funds be very good, money may be borrowed at four per cent, perhaps at three per cent. If they are not good it will not be procured for less than six, seven, or eight per cent, and perhaps not at all. Proper reflections on this subject will naturally suggest themselves, and it will not be forgotten, that whether the debt be less or greater, and whether the interest be higher or lower the people must pay all.

With respect to the impost I conceive it to be justly exceptionable, because that an estimation ad valorem is arbitrary, and the law ought in all cases to be clear and explicit. The impost on prizes need not, I should suppose, be asked for, because Congress may take measures for the purpose themselves whenever the occasion requires. I conceive also, that a tax might be laid on exports which, without being burdensome, would still be productive. Enclosed is a list of rates, which I take the liberty to submit. I cannot go into a written detail of the reasons for them, because my time will not permit.

I am told that the principal objection to a land tax is the inequality. To obviate this objection (although I cannot accede to the force of it) perhaps a reduction of the sum from one dollar to a quarter of a dollar per hundred acres might be expedient; and to supply the deficiency, a tax on houses might be adopted, according to the enclosed rate, which I also beg leave to submit.

I must take the liberty to declare my most serious apprehensions from the existence of unsettled accounts among the States. Everything which tends to create or continue them is fraught with ruinous consequences. Keeping accounts of moneys paid by taxes of the States, and liquidating those accounts by after settlements, will, I fear, prove the source of much dissension. It will operate as heretofore in preventing the States from paying anything. I would pray therefore to submit to Congress the following mode of terminating all present accounts, viz. that the whole sum paid or expended by each State, for the public service from the commencement of the war, should be placed to the credit of the particular State, and each draw interest on such sum. By these means the whole account would be equitably settled in the first instance. The States which are indebted on their own private account, would be able to wipe off such debts by an assignment of national stock. And on the first requisitions made by Congress for current expenditures, each might make payment either in part, or perhaps in the whole, by a discharge of so much of the debt. Thus a degree of simplicity would be introduced into our affairs, and we might avoid the horrors of intestine convulsions.

I have the honor to be, &c.

ROBERT MORRIS.

GEORGE WASHINGTON TO ROBERT MORRIS.

Head Quarters, March 8th, 1783.

Sir,

Very painful sensations are excited in my mind by your letter of the 27th of February. It is impossible for me to express to you the regret with which I received the information it contains.

I have often reflected with much solicitude upon the disagreeableness of your situation, and the negligence of the several States in not enabling you to do that justice to the public creditors, which their demands require. I wish the step you have taken may sound the claim to their inmost souls, and rouse them to a just sense of their own interest, honor and credit. But I must confess to you that I have my fears, for as danger becomes further removed from them, their feelings seem to be more callous to those noble sentiments, with which I could wish to see them inspired. Mutual jealousies, local prejudices and misapprehensions, have taken such deep root as will not easily be removed.

Notwithstanding the embarrassments which you have experienced, I was in hopes that you would have continued your efforts to the close of the war at least; but if your resolutions are absolutely fixed, I assure you I consider the event as one of the most unfortunate that could have fallen upon the States, and most sincerely deprecate the sad consequences which I fear will follow. The army, I am sure, at the same time that they entertain the highest sense of your exertions, will lament the step you are obliged to take as a most unfortunate circumstance to them.

I am, &c.

GEORGE WASHINGTON.

TO THE PRESIDENT OF CONGRESS.[13]

Office of Finance, March 10th, 1783.

Sir,

In consequence of the order of Congress of the 18th of last month, I do myself the honor to enclose an estimate of the principal of the public debt to the first day of January, 1783, which has been transmitted to me by the Register of the Treasury. This amounts to thirtyfive millions three hundred and twentyseven thousand seven hundred and sixtynine dollars fiftythree and one eighth ninetieths, exclusive of what he calls the unliquidated debt, being the moneys due to the several States and to individuals in the several States. I beg leave also to mention other debts which have not been taken into the Register's contemplation, namely, the old continental bills and arrearages of half pay. Congress will easily see that it is not in the power of their servants to state the public debts with any tolerable precision.

I have the honor to be, &c.

ROBERT MORRIS.

TO MAJOR GENERAL GREENE.

Office of Finance, March 14th, 1783.

Sir,

I received the other day your letter of the 2d of February last, and am very much obliged both by the pains you have taken, and the sentiments you have expressed in favor of a department, which I shall shortly be obliged to abandon. You will before this reaches you have seen in the newspapers my letters of resignation. I shall not, therefore, go into a detail of the reasons for taking that step, which was as painful to me as you can easily conceive. But I had no alternative. I saw clearly that while it was asserted on all hands, our debts ought to be paid, no efficient measures would be adopted for the purpose; no good plan agreed on. I felt the consequences of my resignation on the public credit; I felt the probable derangement of our affairs; I felt the difficulties my successor would have to encounter, but still I felt that above all things it was a duty to be honest. This first and highest principle has been obeyed. I do not hold myself answerable for consequences. Those are to be attributed to the opposers of just measures, let their rank and station be what they may. I expect much obloquy for my conduct, because this is what I knew to be the reward for any conduct whatever which is right. To slander I am indifferent, and still more indifferent about the attempts to question the services I have rendered, but I feel most sensibly for your situation, and for that of every other officer.

The Congress have now, and have long since had under their consideration, a due provision for the public debts; when they will conclude it, and what it will be, God only knows. If it is such as in my opinion will do justice, I shall stay somewhat longer in office to know the decisions of the States, and if their proceedings are what on such an occasion they ought to be, I shall spare no labor and regret no time in completing the business, so that my successor may receive it from my hands as clear and simple, as it was confused and embarrassed when it was undertaken. But if these things do not happen, you and every other good man will, I hope, acquit me for leaving a post, in which I am totally unsupported, and where I must be daily the witness to scenes of poignant anguish, and deep injustice without the possibility of administering either relief or palliation. While I do continue in office, rely on every support in my power, and always, whether a public or a private man, believe in my esteem and affection.

I am, very respectfully, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 17th, 1783.

Sir,

I do myself the honor to enclose the copy of a letter of the 14th of December last from Dr Franklin, and the translation of a letter of the 15th instant, from the Chevalier de la Luzerne. These, together with the letter of the 23d of December from Dr Franklin, of which I have already submitted a copy, will I trust claim the attention of the United States.

M. de la Luzerne did me the honor to make verbal communication of the Count de Vergennes' letters, from which as well as from those of Dr Franklin and from other circumstances, I consider it as certain that we are to expect no further pecuniary aid from Europe. So late as on the 9th of December last, the loan in Holland had not amounted to eighteen hundred thousand florins, and after the deduction of the charges on it, there were not above seventeen hundred thousand at my disposal. From the month of June to the 9th of December this loan had not increased half a million of florins, so that the most sanguine expectation will not carry it beyond two millions out of the five for which it was opened.

Congress will recollect, that on the 14th of September last they ordered a loan of four millions of dollars in Europe, for the service of 1783, in addition to this loan, which Mr Adams had opened in Holland. They will also recollect, that I had anticipated upon those resources about three and a half millions of livres during the year 1782. And that this anticipation was over and above the sum of a million and a half of florins, which we then knew to have been borrowed in Holland. Allowing, therefore, for the supposed increase of half a million of florins or a million of livres, there will still remain of anticipation two and a half millions of livres; so that of the sum lent for this year by his Most Christian Majesty there will remain but three millions and a half of livres. According to the common course of exchange, this sum cannot be expected to yield more than six hundred thousand dollars. Six hundred thousand dollars, therefore, with what the States will yield in taxes, form the whole of our expectations for the current year. From this is to be deducted one month's pay already promised to the army, amounting by estimate to upwards of two hundred and fifty thousand dollars.

To judge of our prospects for what remains, Congress will be pleased to observe, that the subsistence of our officers is nearly twenty thousand dollars, that the rations issued in New York and New Jersey are about fifty thousand dollars, and that the rations of the southern army will probably amount to upwards of twelve thousand dollars. If to this be added the various detached corps, it will be found, that the articles of rations and subsistence, exclusive of the prisoners, will form an amount of about ninety thousand dollars a month. My anticipations on the taxes are so well known, that it is not necessary to mention them any more than the other objects of forage, &c. which are indispensable. I have gone into these few details merely to elucidate one position, viz. that all the money now at our command, and which we may expect from the States for this two months to come, will not do more than satisfy the various engagements, which will by that time have fallen due.

It is of importance that Congress should know their true situation, and therefore I could wish, that a committee were appointed to confer with the Minister of France. My reason for that wish is, that every member of Congress may have the same conviction, which I feel of one important fact. That there is no hope of any further pecuniary aid from Europe. The conduct of the French Court on the subject has been decisive. Some persons have indeed flattered themselves, that her positive declarations were merely calculated to restrain our rashness and moderate our excess, but these ideas can no longer have place in any sound and discerning mind. Her conduct has been consistent with her declarations, and if she had ever so much inclination to assist us with money it is not in her power.

But whatever may be the ability of nations or individuals, we can have no right to hope, much less to expect the aid of others, while we show so much unwillingness to help ourselves. It can no longer be a doubt to Congress, that our public credit is gone. It was very easy to foresee that this would be the case, and it was my particular duty to predict it. This has been done repeatedly. I claim no merit from the prediction, because a man must be naturally or wilfully blind who could not see, that credit cannot long be supported without funds.

From what has already been said, Congress will clearly perceive the necessity of further resources. What means they shall adopt, it is in their wisdom to consider. They cannot borrow, and the States will not pay. The thing has happened which was expected. I cannot presume to advise. Congress well knew that I never pretended to any extraordinary knowledge of finance, and that my deficiencies on this subject were a principal reason for declining the office. I have since had reason to be still more convinced of my incompetency, because the plans which I did suggest have not met with approbation. I hope, therefore, that some abler mind will point out the means to save our country from ruin.

I do assure you, Sir, that it is extremely painful to me to be obliged to address Congress on this subject. I wish most sincerely, that I could look at our future prospects with the same indifference, that others have brought themselves to regard them. Perhaps I am not sufficiently sanguine. It is common for age to listen more to the voice of experience than youth is inclined. The voice of experience foretold these evils long since. There was a time when we might have obviated them, but I fear that precious moment is passed.

Before I conclude this letter, I must observe on the misconstructions, which men, totally ignorant of our affairs, have put on that conduct, which severe necessity compelled me to pursue. Such men, affecting an intimate knowledge of things, have charged the destruction of public credit to me, and interpreted the terms of my resignation into reflections upon Congress. I hope, Sir, that so long as I have the honor to serve the United States, I shall feel a proper contempt for all such insinuations. I shall confidently repose myself on the candor of Congress. It is for them to judge of my conduct on full and intimate knowledge. Writers for a newspaper may, indeed, through the medium of misrepresentation, pervert the public opinion, but the official conduct of your servants is not amenable to that tribunal. I hope, however, to be excused for observing, that on the day in which I was publicly charged with ruining your credit, those despatches arrived from Europe, which tell you it was already at an end. The circumstances which I alluded to in my letter of resignation, were not yet known in Europe. It was not yet known that Rhode Island had unanimously refused to pass the impost law, and that Virginia had repealed it. The very delays, which the measures of Congress had met with, were sufficient to sap the foundations of their credit. And we now know that they have had that effect. When those circumstances, therefore, shall be known, it must be overturned. I saw this clearly, and I knew that until some plain and rational system should be adopted and acceded to, the business of this office would be a business of expedient and chicane. I have neither the talents nor the disposition to engage in such business, and, therefore, I prayed to be dismissed. I beg pardon, Sir, for this slight digression. I shall trespass no longer on your patience, than to assure you of the veneration and respect, with which I have the honor to be, &c.

ROBERT MORRIS.

TO THE RECEIVERS OF CONTINENTAL TAXES IN THE SEVERAL STATES.

Office of Finance, April 7th, 1783.

Sir,

I enclose you an account of the public receipts and expenditures from the commencement of my administration to the close of last year. While in compliance with what I conceive to be the duty of those intrusted with expenditures of public money, I publish these accounts, I cannot but blush to see the shameful deficiency of the States. You will, I hope, take occasion to make the proper remarks, and, indeed, it were to be wished that some able writers would rouse the attention of your Legislature to our situation. Surely the pride and good sense of the people will combine in stimulating them to exert themselves, so as to stand on their own feet, and not owe a support to the precarious bounty of foreign powers.

I am, Sir, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, April 7th, 1783.

Sir,

I do myself the honor to enclose for your Excellency's perusal, and the consideration of your Legislature, a statement of receipts and expenditures for the years 1781 and 1782, so far as the same have fallen under my administration. You will also find enclosed, the general accounts of receipts from the States, and subsequent payments into the treasury for the last year, together with the particular account of your State for that period. I shall not trouble your Excellency with any comments on these accounts.

I have the honor to be, &c.

ROBERT MORRIS.

TO A COMMITTEE OF CONGRESS.

Office of Finance, April 14th, 1783.

Gentlemen,

Since the conference I had the honor to hold with you on the 9th instant, my mind has been continually occupied on the important subject to which it relates. My feelings are strongly excited by what I wish for the public, and by what I apprehend, both for them and for myself.

The two points, which relate to my department, are the settlement of accounts and advance of pay. With respect to the first, it is now going on in a satisfactory manner, and will be as speedily accomplished as can reasonably be expected. The arrangements taken on that subject are of such a nature, that I conceive the disbanding of the army need not be delayed until the settlement is completed, because the proper officers may be kept together, although the men be dismissed. The amount of three month's pay, which is stated by the General to be indispensable, is, according to the estimate, seven hundred and fifty thousand dollars. From what I have already stated to Congress, it will appear that the reliance for a great part of this sum, must be on the sales of public property and the taxes. Neither of these sources can produce much immediately, and from the latter there is but little hope at all, unless something can be done to stimulate the exertions of the States.

The receipts being regularly published, I am spared the necessity of disagreeable observations on that topic. To supply so large a sum as is required is utterly impracticable, or, indeed, to obtain any very considerable part. The most, therefore, which can be done, is to risk a large paper anticipation. This is an operation of great delicacy, and it is essential to the success of it, that my credit should be staked for the redemption. Do not imagine, Gentlemen, that this declaration is dictated by vanity; it becomes my duty to mention truth. I had rather it had fallen from any other person, and I had much rather it did not exist. In issuing my notes to the required amount, it would be necessary that I should give an express assurance of payment, and in so doing, I should be answerable personally for about half a million, when I leave this office, and depend on the arrangements of those who come after me to save me from ruin. I am willing to risk as much for this country as any man in America, but it cannot be expected that I should put myself in so desperate a situation. To render the arrangements, which that advance would require, effectual in an official point of view, would be a work of time, and the period of my official existence is nearly arrived.

Disbanding the army in a manner satisfactory to them and to the country, is doubly desirable, and although extremely difficult, is I believe practicable. I shall be very ready at all times, Gentlemen, to give my advice and assistance to those who may be charged with that delicate and perilous undertaking, and I would go as far to effect it myself as any reasonable man could require. But though I would sacrifice much of my property, yet I cannot risk my reputation as a man of integrity, nor expose myself to absolute ruin.

I am, Gentlemen, with perfect respect, &c.

ROBERT MORRIS.

TO ALEXANDER HAMILTON.

Office of Finance, April 16th, 1783.

Sir,

I have been duly honored with the receipt of your favor of the 15th instant. I accepted the Marine Agency, simply with a view to save the expense of the department; but whenever a Marine is to be established a previous point would be (in my opinion) to nominate a Minister of Marine, and let his first work be the forming of those plans and systems, which when adopted by Congress, he would have to execute. For my own part, were my abilities equal to this task, my leisure would not permit the attempt.

With respect to the finances, I am of opinion, that as we cannot increase our revenue, we must do all we can to lessen our expenditures, and that, therefore, we should take off every expense not absolutely necessary as soon as possible.

On the subject of the coin, I hope soon to make a communication to Congress, which, if approved of by them, will complete the business.

I am, Sir, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, April 23d, 1783.

Sir,

On the 21st of February, 1782, Congress were pleased to approve of the establishment of a mint, and to direct the Superintendent of Finance to prepare and report a plan for conducting it. This matter has been delayed by various circumstances until the present moment. I now enclose specimens of a coin, with a view that if Congress should think proper to appoint a committee on the subject, I may have the honor of conferring with them, and explaining my ideas of the plan for establishing and conducting a mint. Such plan when reported by a committee, will more probably meet the ideas of Congress than any which I might prepare.

I have the honor to be, &c.

ROBERT MORRIS.[14]

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 1st, 1783.

Sir,

When I saw the journal of the 28th of last month, I was surprised to find that the report of the honorable committee appointed to confer with me relative to my continuance in office, did not contain those ideas, which I had endeavored to convey. I immediately wrote a note to the chairman mentioning "that the committee had misapprehended the conference on my part." When the conversation passed, I had no expectation of seeing it introduced into the report, or I should certainly have asked permission to deliver my sentiments in writing.

I am placed, Sir, in a very painful situation and must therefore entreat your indulgent interpretation of what I am compelled to say. I had the honor of two conferences with the committee, and in the mornings after those conferences, respectively, made short minutes of what had passed. It is my custom to make such minutes with respect to most of my transactions, and as they were originally intended merely to aid my own memory, they are not very minute or particular. Those to which I now refer are contained in the following words;

April 22d, 1783. "The honorable Mr Osgood, Mr Bland, Mr Peters, Mr Madison, and Mr Hamilton, a committee of Congress appointed to confer with me respecting my continuance in office. I told them that a letter from Mr Grand, gave a new complexion to our affairs in Europe, and that a frigate being just arrived in a short passage from France I expect further advices, which I am desirous of seeing before I enter into this conference. I stated the difficulty of fulfilling engagements, and the danger of taking any new ones."

April 24th, 1783. "The committee of Congress called this morning, in consequence of Mr G. Morris having told Mr Osgood, that he imagined I was ready for a conference with them. I told the committee that my mind had been constantly occupied on the subject, from the time they first called until the present moment. That I see and feel the necessity and propriety of dismissing the army among their fellow citizens, satisfied and contented; that I dread the consequences of sending them into civil life, with murmurs and complaints in their mouths; and that no man can be better disposed than I am to satisfy the army, or more desirous of serving our country, but that my own affairs call loudly for my care and attention. However, having already engaged in this business, and willing to oblige Congress if they think my assistance essential, I will consent to remain in office for the purpose of such payment to the army, as may be agreed on as necessary to disband them with their own consent, &c. But prayed of Congress to excuse me from even this service if they can accomplish their views in such other way as they may approve."

These, Sir, are exact copies of my minutes on the subject, and although they were hastily drawn, yet I can safely appeal to the committee to declare, whether they do not contain what really passed, and also whether I did not (in reply to a question put to me by one of the members) say, that I expected, if Congress should ask me to continue in office, they would confine their request to the effecting that particular object of satisfying the army, and would distinguish it from anything, which might be construed into an approbation of their plan for funding the public debts.

I hope, Sir, that Congress will excuse me for picturing the situation I was in, and the feelings which arose out of it. By the Act of the 7th of February, 1781, it was declared to be the duty of the Superintendent of Finance, "to digest and report plans for improving and regulating the finances." Congress well know, that I have from time to time attempted the performance of this duty, and they know also, that such plans have not met with their approbation. The clear inference is, what I have already declared both previously and subsequently to my appointment, that my abilities are unequal to the task I am called to perform. If, therefore, Congress would at any time have made a new appointment, I should have considered it as the greatest favor. But since they saw fit to continue me in office, I prepared the best plans which I could devise, and finding they were not agreeable to the ideas of Congress, I waited for the adoption of such as might be suggested from some other quarter, or originated among themselves. I patiently, but anxiously waited until the 24th of January last; but then a clear view of those circumstances, which have since followed, compelled me to request they would appoint some other man to be the Superintendent of their Finances, if effectual measures were not taken by the end of May, to make permanent provision for the public debts of every kind. On the 26th of February, finding that no successor was yet appointed, and that the plans of Congress were not yet completed, I requested leave to give due and seasonable information of my removal to those who had confided in me. By this means I became pledged to the world, not to continue in office after the end of May, unless such measures as I conceived to be effectual, should be taken before that period, to provide for the public debts. On the 7th of March, I received the report of a committee on the finances, with orders to transmit my observations. These are contained in a letter of the 8th. On the 9th day of April, (no plan being yet adopted) a committee called on me to know, whether three months' pay could be advanced to the army. I stated to them the incapacity of the public treasury to complete in any short period the one month's pay already promised, as also the great anticipations made on the public revenue. And on the 14th, in a letter recapitulating the hazardous situation of things, I informed them that I believed the object they had in view was practicable by means of a large paper anticipation. On the 18th the plan was adopted for funding the public debts.

It was under these circumstances, Sir, that I held the conferences now immediately in question. It was my most earnest desire to be dismissed from office, and I stood pledged for it to the public. But a circumstance of peculiar nature, which had not been foreseen, now presented itself. That army to whom we were indebted for our national existence was to be disbanded, either in extreme misery, or with some little relief. Every principle of justice and gratitude called loudly to administer it; but this could not be done without entering into engagements beyond our resources. The dictates of prudence would, indeed, have determined me to adhere inflexibly to the resolution expressed in my letter of the 24th of January. By so doing I hazarded nothing. And as far as my own reputation was concerned, I could have placed it in security. For I must be permitted to say, that if solid arrangements had been taken to establish national credit, four times the required sum might have been easily obtained. No evils, therefore, had arisen, which I had not predicted, and none which it was possible for me to guard against.

But, Sir, my conduct was not influenced either by personal or prudential motives. A sense of the situation to which Congress were reduced, an earnest desire to support their dignity and authority, a grateful regard to our fellow citizens in arms, mingled with respect for their sufferings and virtues. These sentiments, Sir, decided my opinion. I agreed for your sakes and for theirs to enter into a labyrinth, of which I did not then, nor do I now see the termination.

But I could not do this, except under conditions and limitations. The conditions were, that Congress should ask my continuance, and pledge themselves for my support; the limitations, that the objects of my continuance should be accurately expressed, and that it should be confined to the fulfilment of such engagements, as those objects might require. These terms were expressed to the committee, and I am sure they will do me the justice to acknowledge that they were so. Whether they were reasonable, and whether they have been complied with, form questions of some importance.

It may be suggested, that asking my continuance would derogate from the dignity of Congress. How far this observation is founded, will appear from a resolution of the 21st of December last. It was not a new thing to make such requests, nor was the practice obsolete, yet I should not have desired anything more particular on this subject than has been done in the Act of the 28th of April, although far short of what other persons have received. But surely it will be admitted, that I had a right to expect Congress would pledge themselves for my support when I entered into such deep engagements for theirs. Whether the limitation of my continuance in the manner just mentioned was proper, will appear from considering whether it consisted with the dignity of Congress to procure my tacit approbation of their system for funding the public debts; a system widely different from ideas, which I had expressed on a variety of occasions, and in the most pointed manner. Surely, Sir, it was not kind to place me in a situation where I must appear either to refuse the performance of an important public service, or to break the most solemn engagements and contradict the most express declarations. I might dwell much on this question, but the delicacy of Congress will render it unnecessary.

The second question is, whether the terms I offered have been complied with. And this question is answered by a bare inspection of the Act. Your Excellency will pardon me for mentioning, that the report and resolution considered conjunctively, rather convey the idea of a permission to hold my office than anything else. I had declared to the committee, and here again repeat, that a longer continuance would be extremely disagreeable to me, and that nothing but the particular circumstances already mentioned, could induce my consent. I must add, that under the resolution in its present form I cannot stay. I shall detain your Excellency no longer than to mention, that I am sensible some other man may still suppose that I am only desirous of obtaining from Congress some more particular resolutions. To obviate such disingenuous remarks, it is my humble request that no further question be made on my subject. If, Sir, I have rendered any services, and if those services have merited any return, I shall ask no other reward than a compliance with this request.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 3d, 1783.

Sir,

Upon consideration of the Act of Congress, of the 28th of April[15] and 2d instant, I have determined to comply with their views. But I pray it may be understood, that my continuance in office is limited to the particular object of fulfilling my present engagements, and those which the necessity of our affairs may compel me to form. Let me entreat your Excellency to inform Congress, that I entertain a proper sense of their assurance of firm support, and that in a reliance on it I shall continue my zealous exertions for the service of the United States.

I have the honor to be, &c.

ROBERT MORRIS.

TO M. DE LA LUZERNE.

Office of Finance, May 6th, 1783.

Sir,

I do myself the honor to enclose to your Excellency the copy of an Act of Congress of the 2d instant. I shall in consequence thereof address some special despatches to Dr Franklin, by a packet boat, which I will communicate to your Excellency, and pray you to write to your Court on the subject of them.

In the meantime, I beg leave to mention to you, Sir, that if, (as I am informed,) the administration of your army have more money in this country than they have immediate occasion for, it would greatly facilitate my operations to be possessed of it. What I have to propose on the subject is, that whatever sum may be paid to me here, should be deducted from the three millions mentioned in the enclosed resolution, and be repaid from the amount of the existing requisitions on the States. But that if this arrangement should not be agreeable to the Court, then that it be paid in France or here, immediately after I shall have been made acquainted with his Majesty's pleasure, and in such way as shall be most agreeable to your Court.

I present this matter to you, Sir, quite naked of arguments, to enforce the request. I am sure, that you will do what you conceive to be right; you know our situation, and I presume that you are acquainted with the orders given to your administration.

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

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, May 12th, 1783.

Sir

I do myself the honor to enclose to your Excellency, Acts of Congress of the 28th of April and 2d instant, together with a copy of my letters in answer. Permit me to assure you, Sir, that nothing would have induced me to continue in office, but a view of the public distresses. These distresses are much greater than can easily be conceived. I am not ignorant that attempts are made to infuse the pernicious idea that foreign aid is easily attainable, and that of the moneys already obtained a considerable part remains unappropriated. If such attempts were injurious only to my reputation, I should be entirely silent; but they are calculated to prevent exertions, and are therefore injurious to the public service. I most seriously assure you, that I do not expect success in the application to France, directed by the Act of the 2d instant, although my earnest endeavors shall not be wanting.

If, however, it should prove successful, we shall only be enabled to draw resource from it at a future period, and the amount is to be replaced from the produce of existing requisitions on the States. With respect to the moneys, which have already been obtained abroad, I will not pretend to say what lights those gentlemen may have, who speak on the subject in a decisive tone, but I candidly acknowledge, that I have never yet been able to obtain a clear statement of them, which is the reason why no account of those moneys have yet been laid before the public. Those who know the confusion in our domestic transactions, from which we are just beginning to be extricated, will not be surprised that foreign transactions dependent on them should also be deranged. Neither can it be expected that in the midst of war the accounts could be so soon adjusted and transmitted as could be wished. I have written to obtain them, and a commissioner is employed in adjusting them. From the best statement and estimate which I have, I can assure you, that what remains at my disposition is extremely small.

Your Excellency is doubtless informed, that at the close of last year, there was an anticipation on the public credit to the amount of above four hundred thousand dollars. This anticipation amounts to a greater sum now than it did then, and a very considerable addition must be made at the disbanding of the army. My mere assertion might, I am sensible, be drawn into doubt, but, Sir, there is evidence sufficient to convince every considerate man. The expenses of 1782 were above twentytwo hundred thousand dollars; those of 1783 are greater, by a month's pay made to the army, and by extending the contract for rations. Near five months of this year are already expired. One month's pay of the army is above two hundred and fifty thousand dollars, according to the establishment, and although the army is not completed to its establishment, yet the deficiency, being in private sentinels, will not form a great deduction.

The conclusion from what I have stated is clear and irresistible; there is no reliance but on the energy of the States, and it is on that reliance that I rest for the affairs of my department. I shall not add anything to what is said in the resolutions of Congress, as inducements for, or to stimulate exertions, because I cannot suppose that the voice or the word of an individual servant will meet an attention which is not paid to the representation of the whole empire, expressed in its solemn Acts, and on the most urgent occasion, where wisdom, justice, and gratitude combine to enforce the requisition.

I am, Dear Sir, yours, &c.

ROBERT MORRIS.

TO THOMAS BARCLAY, AGENT FOR SETTLING THE PUBLIC ACCOUNTS IN EUROPE.

Office of Finance, May 12th, 1783.

Sir,

I have received from you many letters, which I beg leave to acknowledge.

The bills drawn by order of Congress at a long sight on their Ministers, as well in Spain and Holland as in France, have involved the affairs of my Department in a labyrinth of confusion, from which I cannot extricate them, and I very much fear that many of these bills will have been twice paid. I know not what has been done respecting them, and only know, that ever since I entered into office they have not only plagued and perplexed me, but they have invariably consumed the resources on which I have formed a reliance. I have now determined to refer them all to Mr Grand for payment, but according to such arrangements as you shall take. You will be pleased, therefore, to consult with Dr Franklin, Mr Adams, Mr Laurens, and Mr Jay, to whom I write on the subject, as you will see by the enclosed letters.

I enclose you an account from the treasury of what bills have been drawn on those gentlemen, and I am to request, that you will obtain as soon as possible an account of the payments made on them, as also of those which are still due, and take measures to have them paid by drafts for the purpose, if necessary, on Mr Grand, and provide against the double payments, which I fear. I have already ordered funds into Mr Grand's hands. Some I expect from you. As the credit I gave you has not been used, that alone furnishes a part, and I expect there will be considerable balances from the sales of the Alliance's prizes, of which I am daily expecting your accounts, &c. You will also, I suppose, have recovered the insurance you made, to the amount of forty thousand florins, which will be something. Every aid which you can bestow is necessary, for I fear those bills will plunge him into great difficulties, and the protest of any public bills, particularly any which I should draw, would reduce our affairs here to infinite distress.

I am also to request of you, that you will cause as soon as possible all the accounts of the clothing, arms, and other supplies to be liquidated and transmitted, so that they may be properly adjusted here; for at present, that business is in a state of extreme confusion.

I am, Sir, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, May 12th, 1783.

Sir,

The bills drawn by Congress in their necessities press very heavily upon me, and one of the greatest among many evils attending them is the confusion in which they have involved the affairs of my Department. I have not yet been able to learn how many of these bills have been paid nor how many remain due; neither am I without my fears, that some of them have received double payment.

To bring at length some little degree of order into this chaos, after waiting till now for fuller light and information, I write on the subject to Mr Adams and Mr Jay, and send Mr Barclay, to whom I also write, a copy of the enclosed accounts, directing him to consult with your Excellency, and with them to transmit me an account of the bills paid, and of those remaining due, and to take measures for preventing double payments. The enclosed accounts will inform you, that of the bills drawn for interest and those for carrying on the current service, which have gone forward through the Loan Offices, amount, the first to one million six hundred and eightyfour thousand two hundred and seventyeight dollars; equal to eight millions four hundred and twentyone thousand three hundred and ninety livres; and the second to two hundred and eightysix thousand seven hundred and thirtythree and one third dollars; equal to one million four hundred and thirtythree thousand six hundred and sixtysix livres, six sous, and eight deniers.

Let me entreat you, Sir, to forward these views as much as possible, for you will, I am sure, be sensible how necessary it is for me to know the exact state of our pecuniary affairs, lest on the one hand I should risk the public credit by an excess of drafts, or on the other leave their moneys unemployed, while they experience severe distress from the want.

I am, Sir, with perfect respect, &c.

ROBERT MORRIS.

TO A COMMITTEE OF CONGRESS.

Office of Finance, May 15th, 1783.

Gentlemen,

In consequence of the conversation which passed between us this morning, I shall give you the best information in my power as to the state of my Department and the resources I can command.

You have in the enclosed paper an account of receipts and expenditures from the commencement of the year to the end of the last month; by which it appears, that there is an advance on credit to the amount of near six hundred thousand dollars, exclusive of what may appear in Mr Swanwick's accounts for the month of April. A large sum is also due on General Greene's drafts, and the contractors are to be paid in this month for the supplies of January last. At the end of this month, therefore, that anticipation must necessarily be much increased, as will appear from the slightest reflection after what is to be said of our resources.

These are either foreign or domestic. As to the first, I enclose the copy of the last letter I have received from Mr Grand, and I have to add to what is contained in that letter, that the day it was received, my drafts on him, over and above those mentioned in it, amounted to three millions forty thousand two hundred and seventyeight livres. I have directed, therefore, Mr Barclay to pay over to Mr Grand any moneys, which may be in his possession, and I have directed Messrs Willink & Co. of Amsterdam to do the same, after deducting what may be necessary to pay the interest of their loan falling due the 1st of June next. But as I have no accounts of how much has been borrowed since the end of January, and as all which had been borrowed before was disposed of, I cannot determine how far they can come in aid of Mr Grand. Neither can I tell until the receipt of his accounts what aid he may stand in need of. In these circumstances I am obliged to leave about eighteen hundred thousand livres (which remain of a sum placed in the hands of Messrs Le Couteulx for answering drafts intended through Havana,) to answer any deficiency of other funds to pay my drafts on Mr Grand. These then, Gentlemen, are all the foreign resources, except what the French Court may advance on the late resolutions of Congress, and you will see by the enclosed translation of a letter from the Minister of France, what little hope is to be entertained from that quarter.

Our domestic resources are twofold. First, certain goods and other property, such as horses, wagons, &c. These latter will produce very little, and the former are, by the peace, very much reduced in value, and from the nature of the goods themselves they are chiefly unsaleable. Very little reliance, therefore, can be placed on this first dependence. The amount I cannot possibly ascertain, for I do not yet know, and cannot until the opening of them now in hand shall be completed, the kinds, quality and situation. Some are damaged, those which were deemed most saleable have been tried at vendue, and went under the first cost, and much the greater part will certainly not sell at a fourth of their value.

The only remaining resource is in the taxes, and what they may amount to, it is impossible to tell. But you have enclosed an account of what they yielded the four first months of this year, and you will see from thence, that if all expense had ceased on the first day of this month, the anticipations already made would not have been absorbed by the same rate of taxation in eight months more.

Now then, Gentlemen, you will please to consider, that if your army is kept together they will consume as much in one month as the taxes will produce in two, and probably much more; to make them three months' pay will require I suppose at least six hundred thousand dollars, and every day they continue in the field lessens the practicability of sending them home satisfied. The anticipations of revenue are threefold, two of which appear as to their effects in the public accounts, and one very considerable one, though it produces great relief, is not seen. It consists in the drawing of bills on me for the public service by different persons and at different usances. I imagine that these amount at the present moment to one hundred thousand dollars. The other anticipations consist in loans from the bank on the issuing of my own notes. As to the first of these it is limited in its nature by the capital of the bank, which being small will not admit of great deductions, and it depends much upon circumstances, whether the bank will go to the extent which they may go. If they find the revenues increasing and the expenses diminishing, they will, but otherwise, they certainly will not. As to the notes I issue, and which form the greatest part of my anticipations, these have also a certain limit, to exceed which would be fatal. I must not so extend that circulation, as that I shall be unable to pay them when presented, for that would totally destroy their credit, and, of course, their utility.

If anything of this sort should take place before the army are disbanded, you will see at once that they could be fed no longer, and must of course disband themselves. I will not dwell on the consequences, but I will draw one clear conclusion, which you have, doubtless, by this time anticipated, viz. that unless they are disbanded immediately, the means of paying them, even with paper, will be gone. And this sentiment I have not delivered to you, but to a former committee, as well as to many individual members of Congress.

But when I speak of disbanding the army, I beg to be understood as meaning to reserve a sufficient garrison for West Point; and on this subject I pray to be indulged in a view of our political and military situation as far as relates to this capital object of my department. And first, as to our political situation, I conceive that we are at peace. It is true, that the definitive treaty is not, that we know of, completed; but it is equally true, that all the other belligerent powers have been disarming for mouths past, and I presume they are at least as well acquainted with the state of things as we are. To express doubts of the sincerity of Britain on this subject is, I know, a fashionable, but in my opinion a very foolish language. We have the best evidence of their sincerity, which the nature of things will admit, for we know they are unable to carry on the war, and we see and feel, that they are passing every act, and doing everything in their power to conciliate our affections. Expressions of doubts as to their sincerity, if intended to foster enmity against them, will fail of the effect and produce the direct contrary, for everybody will soon learn to consider them as unjustly suspected, and their Ministers will take care to inculcate and enforce the sentiment.

As to our military situation some of the troops in the southern States have already mutinied, the principal part of them are ordered away, and since the Floridas are ceded to Spain it follows, that those troops which may remain in the southern States will have to operate against the Spaniards if they operate at all. So that every man, except those under the General's immediate command and the little garrison of Fort Pitt, are in fact disbanded to every purpose but that of expense.

The prisoners are some of them going, and the rest gone into New York, so that in a few days the enemy will be able to do everything which they could do if the greater part of our army were gone home. For they could not take West Point if it is properly garrisoned, and they could ravage the country in spite of our army when theirs shall be all collected.

Our situation, therefore, seems to be this. We are keeping up an army at a great expense, and very much against their inclinations for a mere punctilio, and by that means incapacitating ourselves from performing what they begin to consider as a kind of engagement taken with them. I shall detain you no longer on this subject, but must repeat one observation, which is, that unless the far greater part of our expenses be immediately curtailed, the object Congress had in view by their resolutions of the 2d instant, cannot possibly be accomplished.

I have the honor to be, &c.

ROBERT MORRIS.[16]

TO MAJOR GENERAL GREENE.

Office of Finance, May 16th, 1783.

Sir,

Your bills on me fall very heavy, and I am in hourly apprehensions of being unable to pay them. You will see, therefore, that it is utterly impossible to send money for your military chest. I hope, however, and expect, that the sales of the public property will provide you more money than you stand in need of. I know not what orders the Secretary at War may give, but if they be agreeable to my wishes, they will contain an absolute dismission of all the troops in your quarter, for I can see no use in keeping them together.

The attacks made upon you, might reconcile me to those which I experience, for they show that no conduct, however just, can possibly escape censure. It is far easier to be faultless than blameless, and the experience I have had in this way leads me to a total disregard of all things, so far as conduct is to be determined. But I must at the same time acknowledge, that I cannot help feeling indignation whenever they are made. They are for the most part mere ebullition of low malice, and if rightly understood contain the most indisputable acknowledgement of merit. Let this reflection console you for what you have already experienced and what may yet be behind.

I thank you for the sentiments you express in my favor. You will have seen, that contrary to every private interest and sentiment I have agreed to a longer continuation in office. And you may rest assured, that nothing but a view of the public necessities should have induced me still longer to bear up under the burden. Not because I regard the calumnies I meet with, for although they excite my feelings they shall not influence my conduct, but because I do not think those measures are pursued, which are calculated for the happiness of this country, and I do not wish to participate in any others.

There are many persons in the Southern States, who think the measures of Congress and of their servants are directed to the particular good of Pennsylvania, and more who pretend to think so. It is a little history of human weakness and I might say meanness, the manner in which antipathies have been imbibed and propagated with respect to my department. One sample will show the texture of the whole piece. While I was in advance, not only my credit but every shilling of my own money, and all which I could obtain from my friends, to support the important expedition against Yorktown, much offence was taken that I did not minister relief to the officers taken prisoners at Charleston. I felt their distresses as sincerely as any man could do, but it was impossible to afford relief.

Before I close the letter, I must again repeat my solicitude on the score of your bills, which are coming in upon me so fast, that the means of paying them must, I fear, be deficient. Take care, therefore, to draw as little and at as long sight as possible.

I am, Sir, your most obedient, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, May 26th, 1783.

Sir,

I have now before me your letters of the 14th and 23d of December, which are the last I have received. Enclosed you have a letter from me to the Minister of France, with his answer of the 14th of March, on the subject of the delay which happened in transmitting his despatches. You will see by these, that Lieutenant Barney was not to blame.

Your bills in favor of M. de Lauzun have not yet appeared, or they should have been duly honored. That gentleman has since left the country, and therefore it is possible that the bills may not come.

The reflections you make, as well on the nature of public credit, as on the inattention of the several States, are just and unanswerable; but in what country of the world shall we find a nation willing to tax themselves. The language of panegyric has held forth the English as such a nation, but certainly if our Legislatures were subject to like influence with theirs, we might preserve the form, but we should already have lost the substance of freedom. Time, reason, argument, and above all, that kind of conviction, which arises from feeling, are necessary to the establishment of our revenues, and the consolidation of our union. Both of these appear to me essential to our public happiness; but our ideas, as you well know, are frequently the result rather of habit than reflection, so that numbers who might think justly upon these subjects, have been early estranged from the modes and means of considering them properly.

I am in the hourly wish and expectation of hearing from you, and sincerely hope it may be soon. Believe me, I pray, with esteem and respect, yours, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, May 26th, 1783.

Sir,

By the enclosed Acts of the 28th of April and 2d of May, with the copy of my letter to Congress of the 3d of May, you will perceive that I am to continue somewhat longer in the Superintendence of our Finances. Be assured, Sir, that nothing but a clear view of our distresses could have induced my consent. I must at the same time acknowledge, that the distresses we experience, arise from our own misconduct. If the resources of this country were drawn forth, they would be amply sufficient, but this is not the case. Congress have not authority equal to the object, and their influence is greatly lessened by their evident incapacity to do justice.

This is but a melancholy introduction to the request contained in the Act of the 2d instant. But I shall not be guilty of falsehood, nor will I intentionally deceive you, or put you in the necessity of deceiving others. My official situation compels me to do things, which I would certainly avoid under any other circumstances. Nothing should induce me in my private character to make such applications for money as I am obliged to in my public character. I know and feel that you must be in a disagreeable situation on this subject. I can anticipate the answers to all your requests; and I know you may be asked for payment when you ask for loans. Yet, Sir, I must desire you to repeat your applications. My only hope arises from the belief, that as the King's expenses are much lessened, he may be able to comply with his gracious intentions towards America.

And the only inducement I can offer is the assurance that the taxes already called for, shall be appropriated as fast as other indispensable services will admit, to the replacing of what the Court may advance.

Our situation is shortly this. The army expect a payment, which will amount to about seven hundred thousand dollars. I am already above half a million dollars in advance of our resources, by paper anticipation. I must increase this anticipation immediately to pay moneys due on contracts for feeding our army; and I must make them the expected payment by notes to be discharged at a distant day. Now, Sir, if these notes are not satisfied when they become due, the little credit which remains to this country must fall, and the little authority dependent on it must fall too. Under such circumstances it is, that you are to ask aid for the United States. If it can be obtained, I shall consider the obligation as being in some degree personal to myself, and I shall certainly exert myself for the repayment. You will be so kind, Sir, as to ship on board the Washington eighteen hundred thousand livres, but if the loan be not obtained, I must entreat you will give me the earliest possible information of the refusal.

I shall communicate this letter to the Minister of his Most Christian Majesty, and request him to write to the Count de Vergennes, on the subject of it. Believe me; I pray, with sincere and respectful esteem, &c.

ROBERT MORRIS.

TO M. DE LA LUZERNE.

Office of Finance, May 27th, 1783.

Sir,

I do myself the honor to enclose for your Excellency's perusal, the copy of a letter to Dr Franklin, which will go by the Washington packet, on Sunday next. I am to request, that your Excellency will write on the subject of it to the Count de Vergennes. You will observe, Sir, that I have made no mention whatever of the reasons, which might induce France to grant the aid requested. Every argument, which can apply to the interests of your Court, will come more properly, as well as more forcibly from your pen than from mine. I shall only ask, that you will give your own sentiments and views of our circumstances and situation. These will, I doubt not, be the most powerful reasons in support of the present application.

I am, Sir, with perfect respect, &c.

ROBERT MORRIS.

TO GEORGE WASHINGTON.

Office of Finance, May 29th, 1783.

Dear Sir,

I am now to acknowledge the receipt of your Excellency's letter of the 8th instant. I have not answered it sooner, because until now it has not been in my power to answer it satisfactorily.

By some designing men my resignation of office (grounded on a clear conviction, that unless something was done to support public credit, very pernicious consequences would follow) was misconstrued. It was represented as a factious desire to raise civil commotions. It was said that the army were to be employed as the instruments to promote flagitious interested views. These found admittance to minds, which should forever have been shut against them. We now rest on the event, to determine whether a sincere regard to public justice and public interest, or a sinister respect to my own private emolument were the influential motives of my conduct. I am a very mistaken man, if time and experience shall not demonstrate, that the interests of the army and of the public creditors are given up. But I mention these things only to you in confidence, for it shall not again be supposed that I am the leader of sedition.

Having done what was in my power to establish those plans, which appeared necessary for doing justice to all, and affording relief to our army in particular, I have acquitted what was the first and greatest duty. When it appeared that other modes were to be pursued, I would gladly have departed in peace, but it has been thought that my further agency was necessary, to procure for the army that species of relief, which they seemed to desire. The factious designing man, who was to have lighted up the flames of mutiny and sedition, has undertaken, a most arduous and perilous business to save this country from those convulsions, which her negligence had hazarded. This became a duty when the first duty to justice was performed, and this shall be performed also. It is now above a month since the committee conferred with me on that subject, and I then told them that no payment could be made to the army but by means of a paper anticipation, and unless our expenditures were immediately and considerably reduced, even that could not be done. Our expenditures have nevertheless been continued, and our revenue lessens, the States growing more and more remiss in their collections. The consequence is, that I cannot make payment in the manner first intended. The notes issued for this purpose would have been payable at two, four, and six months from the date, but at present they will all be at six months, and even that will soon become impracticable, unless our expenses be immediately curtailed.

I shall cause such notes to be issued for three months' pay to the army, and I must entreat, Sir, that every influence be used with the States to absorb them, together with my other engagements, by taxation. The present collections are most shameful, and afford but a sad prospect to all those who are dependent upon them.

I hope, my Dear Sir, that the state of public affairs will soon permit you to lay down the cares of your painful office. I should in two days have been liberated from mine, if a desire to free you from your embarrassments, and procure some little relief to your army, had not induced a continuance of them. But it must always be remembered, that this continuance is distinct from any idea, which may be connected with the plans for funding our public debts. As I do not approve of, so I cannot be responsible for them. Neither will I involve myself in endless details, which must terminate in disappointment.

With great respect, I am, &c.

ROBERT MORRIS

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, June 5th, 1783.

Sir,

Congress having directed a very considerable part of the army to be sent home on furlough, I am pressed exceedingly to make a payment of three months' wages, and I am very desirous to accomplish it, but the want of money compels me to an anticipation on the taxes by making this payment in notes. To render this mode tolerably just or useful, the notes must be punctually discharged when they fall due, and my dependence must be on the money to be received of the several States, on the requisitions for the last and present year. I hope the urgency of the case will produce the desired exertions, and fully enable me to preserve the credit and honor of the federal government.

I have the honor to be, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, July 11th, 1783.

Sir,

I do myself the honor to enclose to your Excellency, a state of the public accounts, balanced on the last day of June, 1783. A view of these accounts will render it unnecessary to make many observations.

On the States I am to rely for payment of the anticipations amounting, as you will see, to more than a million. And you will observe, that this great anticipation has been made for that service, which all affect to have so much at heart. A payment to the American army. If they had received no pay during the year 1783, I might perhaps have been spared the necessity of this application, because it is probable that the taxes even as they are now collected might have absorbed such anticipations as I should then have been obliged to make.

Much pains have been taken to inculcate the idea that we have funds in Europe. Those funds which we had there are exhausted, and the general apprehension that no proper funds here will be provided has cut off all hopes from that quarter.

The question has frequently and industriously been asked, what becomes of the moneys which are paid in taxes. I have furnished the means of judging, as to those which reach the public treasury, to every man employed in the administration of government in the several States, for my accounts have been regularly transmitted. And I would not have mentioned the insinuation had it not been for the purpose of observing, that it is incumbent on all those who are desirous of forwarding a collection of taxes to show a fair appropriation, and not suffer groundless clamors to disturb the public mind.

It has been said that there is no necessity of urging the collection of taxes now, because the notes given to the army are not payable in less than six months. This again is an assertion whose mischievous operation is levelled at the very vitals of our credit. One month of that time is already expired with respect to all those notes which have been already issued. They are not the only notes in circulation. Notes are not the only modes of anticipation which have been adopted. And it is a serious fact, that unless more vigorous measures take place, the credit of all notes and of everything else must be destroyed. But this is not all. Supposing for a moment, that the notes given to our army were the only object whose credit was to be attended to. Can any reasonable man imagine, that they could be of any use if the payment were to depend on taxes which are not to be collected until the notes are due.

I have not been wanting on my part in pointing out from time to time, the mischiefs which must ensue from neglect. The applications have met with inattention, which personally I have disregarded, but which I could not but feel, from the consequences involved in it. Again, in compliance with the duty I owe to the United States, I call for that aid which they are entitled to. And on this occasion I take leave to observe, that the moment is very fast approaching which is to determine whether America is entitled to the appellation of just, or whether those who have constantly aspersed her character are to be believed.

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

ROBERT MORRIS.

REPORT TO CONGRESS RELATIVE TO THE PAY OF THE ARMY.

Office of Finance, July 15th, 1783.

The Superintendent of Finance, to whom was referred, on the 11th instant, the extract of a report, with order to report thereon, and also to report what measures he has taken relative to the pay of the army, begs leave to report,

That the receivers in the several States have long since been instructed, to take all notes signed by the Superintendent of Finance in payment of the taxes, and also, take up all such notes whenever tendered, if they have public money in their hands.

That when it was in contemplation to make a payment to the army, the committee who conferred with the Superintendent on that subject were informed, that it could only be done in notes, and that in order to support the credit of such notes, it would not be sufficient that they should only be receivable in taxes in some particular State, but that the receivers throughout the States must receive and exchange them, in like manner with other notes issued from the Office of Finance.

That the instruction to the receivers is generally known to all those who are concerned in the business they relate to, and in consequence thereof the receivers are in the constant practice of receiving and exchanging notes signed by the Superintendent of Finance, which they duly remit to the treasury.

That whenever they shall find it difficult to obtain such notes for the purpose of making their remittances (which is not likely to be the case in any short period,) they will naturally advertise to obtain them. Wherefore, any general notification, such as is contained in the extract committed, will be unnecessary.

That if such publication as is recommended were confined (as seems to have been the idea,) to those notes which have been issued for payment of the army, it would destroy what little credit is at present reposed in the public servants, and by bringing home immediately all other notes which have been issued, render it impracticable to discharge them; in which case the notes issued to the army could be of no use, because nobody would take them. The importance of preserving credit in this respect, will appear from the preamble to an Act of Congress of the 2d of May last.

That if (as is most probable) the publication were intended to relate alike to all notes, it is a thing which is already well known, and therefore the expense of printing may be spared.

With respect to the measures taken relative to paying the army, he begs leave to report, that upon an estimate from the War Office, he signed warrants for four months' pay of the present year, whereof one month's pay has been made to the noncommissioned officers and privates in specie, and to the officers in notes, and three months' pay to both officers and soldiers in notes. That the Paymaster has not yet received all the notes necessary for the purpose, but has in his hands as many as he wants for the present.

All which is humbly submitted.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, July 18th, 1783.

Sir,

I would sooner have replied to the Act of Congress of the 11th instant, if I had not been prevented by other business, which required immediate attention. The Act recites a representation to Congress, that certain parts of the army retired on furlough have not received the pay, &c. I will not contest the truth of this representation. But when I come to state such facts as are within my knowledge, I shall appeal to the candor of Congress how far that representation will warrant a censure against me.

I am directed to complete without delay the same payment to the officers and soldiers of the Massachusetts line which were ordered to be paid to the army at large. Congress will be pleased to observe, that they have passed no particular order to which the above resolution can refer. The general Acts which relate to paying our army from the authority on which the payment alluded to was made. Supposing, however, that by the resolution is meant three months' pay, in notes payable at six months from the date; I must take liberty to remind Congress, that completing the payment to any part of the army is not the business of my department, but of the Paymaster General. All which can depend on me, is to put those notes into his hands when called for, and this has been done as fast as was possible.

I am directed to report the reasons why the troops lately furloughed did not receive a part of their pay previous thereto. Not being able, Sir, to make so full report on this subject as I could wish, I have written a letter to the Paymaster General, of which the enclosure, number one, is a copy. The answer to this letter shall be transmitted as soon as received. The facts relating to that matter which are within my knowledge are the following.

On the 9th day of April last, a committee of Congress did me the honor to call, for the purpose of consulting on certain propositions contained in a letter from the Commander in Chief to an honorable member from Virginia. One of these propositions was to make the army three months' pay previous to their disbandment. My reply was, an acknowledgement that the claim was very reasonable, a declaration that I doubted of the practicability, and a prayer to be indulged with time for consideration. On the 14th of April I wrote a letter to that committee, in which I had the honor to inform them, that three months' pay amounted, according to the estimates, to seven hundred and fifty thousand dollars. That to supply so large a sum was utterly impracticable, or indeed to obtain any considerable part. That the most which could be done was to risk a large paper anticipation. That to render the arrangements for that purpose effectual in an official point of view would be a work of time. That the period of my official existence was nearly arrived; that disbanding the army in a manner satisfactory to them and the country was doubtless desirable. That I believed it to be practicable, although extremely difficult, and that I should be ready at all times to give my advice and assistance to those who might be charged with that delicate and perilous undertaking.

On the 22d of April, Congress were pleased to appoint a committee to confer with me relative to my continuance in office. I told that honorable committee, that the late advices from Europe gave a new complexion to our affairs, and prayed some further time for the receipt of intelligence. On the 24th of April, I had the honor to inform the committee, that if Congress thought my assistance essential toward completing such payment to the army as might be agreed on, &c. I would consent to a further continuance in office for that purpose; but prayed to be excused from that service if Congress could otherwise accomplish their views.

On the 28th of April, Congress were pleased to resolve, that the public service required my continuance in office till arrangements for the reduction of the army could be made, and the engagements taken in consequence, as well as those already taken, should be completed. On the 2d day of May Congress were pleased to pass some further resolutions on the same subject, which I shall shortly have occasion to mention. On the 3d of May I had the honor to entreat of your Excellency, that you would inform Congress that I entertained a proper sense of their assurance of firm support, and in reliance on them should continue my zealous exertions for the service of the United States.

On the 9th of May, having had a conference with the Minister of War, on the resolutions of the 7th and 28th of April and 2d of May, we took the liberty to request, that a committee might be appointed to confer with us on the subject of those resolutions. On the 15th of May, two gentlemen of that committee did us the honor of the conference requested. In which it was stated, as impracticable to make any payment to the army, unless our expenditures were immediately and considerably reduced. The committee, however, being desirous to have the situation of things stated to them in writing, I wrote them a letter on the same day, showing, that on the last day of April we were in advance of our resources, to the amount of six hundred thousand dollars; that our foreign resources were exhausted; that our domestic resources as far as they consisted in sales of public property, were considerably reduced; that as far as they consisted in the produce of taxes they were extremely slender and precarious; that the monthly consumption of the army was at least double the monthly produce of the taxes; that if they were kept longer in the field, they would consume every resource by which the payment could possibly be made or hazarded. And, therefore, that unless the far greater part of our expenses was immediately curtailed, the object Congress had in view by their resolutions of the 2d of May could not possibly be accomplished. This letter was accompanied with the necessary documents to establish the positions contained in it.

On the 26th of May it was resolved, that the Commander in Chief should be instructed to grant furloughs, &c. And this resolution was communicated to me on the 27th. Thus, Sir, from the 9th day of April, when this matter was first proposed, until the 27th day of May, when the final determinations of Congress were made known, my conduct was of necessity suspended.

On the 29th of May I informed the Commander in Chief of my determination to issue notes payable in six months from the date, for three months pay, and explained to him the reasons why I could not make the payment in any other mode. In reply to this, I received on the 5th of June a letter from the General, dated the 3d, which was brought by express and urged the transmission of a part of those notes. I immediately wrote an answer, in which I informed him that on Saturday evening, the 31st of May, the paper arrived from the maker; that on Monday, the 2d of June, it was delivered to the printer; that he had agreed to send the first parcel of notes to me on Friday, the 6th of June; and that as soon as I could sign them they should be delivered to the Paymaster, to be sent forward. On the 7th of June the Paymaster received fifty thousand dollars, on the 9th fifty thousand dollars, and on the 13th one hundred thousand; so that in six days I signed six thousand notes, besides the other business of my office. That paper made on purpose for this business was necessary no man can doubt, or if it could have been doubted the recent attempt to counterfeit these notes is a sufficient proof. That the printing was to take place before the signing must be admitted. The only delay therefore with which I can be chargeable must be in the signing of them, and upon that subject I shall say nothing. If by any means a delay happened after the notes were delivered into the pay office, I presume that the Paymaster General will be able to account for it. I shall only add, that he has received half a million of these notes, as will appear by the enclosed note of the payments number two.

I am also directed, Sir, to report the manner in which I expect to redeem the notes in question. Congress will be pleased to recollect, that the issuing of those notes arose from a proposition made by the General and warmly adopted by them. That although I was very desirous of gratifying the wishes of the army, I had great apprehensions as to the ability of doing it. And that from a view of the scantiness of our resources I felt extreme reluctance in giving my consent. As to the means of redeeming the notes, permit me to refer Congress to the letters which I had the honor of writing to your Excellency on the 17th of March and 1st of May; to my correspondence with the honorable committee of Congress on the 14th and 16th of April, copies whereof are enclosed in the paper number three; and to a circular letter to the States of the 12th of May, of which a copy is enclosed in the paper number four.

Permit me also to refer to the various accounts which have been rendered to Congress of the state of my department; and to these let me add what appears on their own minutes. On the 2d of May they declared it to be their desire, when the reduction of the army should take place, to enable the officers and soldiers to return to their respective homes with convenience and satisfaction; for which purpose it would be indispensable to advance them a part of their pay. They declared further, that there were many other engagements for which the public faith was pledged, and the punctual performance of which was essential to the credit of the United States. And they further declared, that neither of these important objects could be effected without the vigorous exertions of the several States in the collection of taxes. From a conviction of these facts Congress were pleased to call upon the respective States in the most earnest manner, to forward the collection of taxes. As an additional means to accomplish the same end, they were pleased to apply for a further loan of three millions of livres to his Most Christian Majesty. And they resolved, that the Superintendent of Finance be directed to take the necessary arrangements for carrying the views of Congress into execution. And that he be assured of their firm support toward fulfilling the engagements he has already taken, or may take, on the public account during his continuance in office.

Having already so fully stated the situation of my department, I have only to say in answer to the order I have received, that I rely on the firm support of Congress, solemnly pledged to me (for the purpose of inducing my continuance in office) to redeem those notes issued to the army, as well as to fulfil all other engagements which I have taken or may take on the public account.

Before I close this letter, I beg leave to assign my reason for reducing my report to that form. It is because I had rather bear the censure contained in the acts of the 11th of July, however painful, than place on the minutes of Congress anything which may hold up the idea of precipitancy on their part.

With perfect respect, &c.

ROBERT MORRIS.

TO MR GRAND.

Office of Finance, July 25th, 1783.

Sir,

I have received your letter of the 15th of April, covering a statement of your accounts, by which it appears that my bills on you exceed the sum which you will have to receive from the Court on this year's subsidy. This circumstance gives me great pain, for it would be very hard if after supporting our credit in Europe during the war, it should be fatally ruined on the establishment of peace. You will have learned by my former letters, that I had taken measures to throw into your hands all the moneys, which I could by any means command for that purpose. I am still in hopes, that the Court will make a further effort in our favor, but at any rate if your payments should exceed your funds, I must replace your advances by remittances from hence. I hope that our affairs will soon take such a form, solidity and establishment, as to render all things perfectly easy, and the conclusion of the definitive treaty, which will enable us to reduce our expenditures, added to the advantages of a general and lucrative commerce, cannot fail of absorbing what few engagements may be at present unprovided for. On the whole, my Dear Sir, I have only to say my bills must be honored, and your zeal in favor of America must be rewarded.

With sincere esteem, I am, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, July 28th, 1783.

Sir,

Conceiving it to be almost certain, that a definitive treaty of peace is concluded, I am bound to request the attention of Congress towards reducing the expenses. It is unnecessary to repeat, that our resources for absorbing the anticipations, depend on the produce of taxation. There is no hope of fulfilling the public engagements, but by a strict economy, for there is no evidence of that energy among the States, which the Act of Congress of the 2d of May was framed to inspire. Let me, therefore, repeat my request, that the public expenses be greatly reduced. The number of men which it may be necessary to keep in the field, I cannot presume to name, as it is a military question; but it would best consist with the present state of my department to disband the whole.

Your Excellency will easily conceive the situation to which I am driven when I am compelled to withhold assent to a moderate demand of the Secretary at War, for building magazines to preserve the public stores. It is certainly of importance, that arsenals should be erected in such proper places as to provide for the public defence, but reasons against advancing money are incontrovertible. Congress knew the extent of my engagements, for the discharging of which they have solemnly pledged themselves. Congress know also, that the States do not furnish means. They will perceive, therefore, that I should wantonly sacrifice their honor and dignity, should I form new engagements before the old are satisfied.

I know, Sir, that many of the stores may be wasted and destroyed for the want of magazines, and that if they are sold it will be to a considerable loss. But much loss must be added to the mass of injuries America has already sustained by not complying with the requisitions of Congress. It is a loss, which in its consequences must fall upon the States themselves, who are the immediate authors of it; but if the engagements already taken are violated by applying money to other purposes, then the honor of Congress will be sacrificed, together with the property of those who relied on it.

I should not, Sir, have dwelt so long on this small circumstance, if it did not serve to impress the true object of my letter, a reduction of national expense. And here let me notice what has often been mentioned, the expense of the civil list. If in this general term of civil list are comprehended the public servants abroad, I freely acknowledge my opinion, that it might be curtailed. But the foreign affairs not being within my line, this sentiment is expressed with all possible deference.

Our domestic civil list consists of two parts. First, that which is engaged in settling and adjusting old accounts; and secondly, that which is employed in present objects. The first is rendered necessary by the confusions which arose before regular systems were established; but it is of a temporary nature, and can never again take place, unless our affairs are suffered to relapse into that irregularity from which they are beginning to emerge. The second, I believe, consists of as few as were ever appointed to perform the business of a nation. For what relates to the expense of both, I must observe, that those who labor for the public are at least to be subsisted; and the proof that their salaries do not amount to more than a decent subsistence, is the difficulty with which men qualified to fill the several offices can be prevailed on to accept them. Shortly after my appointment, a special order was passed to defray the expenses of the civil list; but should Congress think proper to repeal that order, I will suspend the payment, and apply the money to take up my notes. But whether the gentlemen of the civil list will continue their services after they know that their salaries are to be withheld, is a question which I shall not agitate.