CONTENTS (continued 8)

I have the honor to be, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, July 28th, 1783.

Sir,

Having already transmitted the public accounts from the commencement of my administration to the first day of this month, I shall not trouble your Excellency with a repetition of them. But I must pray your indulgence while I make a few observations. Perhaps this letter may contain too much of egotism, but your candor will excuse me when the motive is known. If I have rendered any services to the United States, they have been derived from the generous confidence of my countrymen. This confidence must not be abused, and if it be lost my utility is at an end.

The accounts will show to any informed and reflecting mind, that the public moneys were economically applied; and if farther proof were necessary I could appeal to the honorable Delegates in Congress, who have every opportunity of investigation. I might also appeal to the clamors against me for opposing claims I could not properly comply with. Long have I been the object of enmities derived from that origin. I have, therefore, the right to consider such clamors and such enmities as the confession and the evidence of my care and attention.

But, Sir, from the same accounts it will appear, that on the 30th day of June last, my payments had exceeded the amount of my receipts by more than a million of dollars. How, indeed, could it be otherwise, when all the taxes brought into the treasury since 1781 did not amount to seven hundred and fifty thousand dollars? I have been impelled to this heavy anticipation by an earnest desire to relieve our army, by the General's warm representations on the subject, and above all, by the directions of Congress and their assurance of support. The enclosed letter to them will show my desire to reduce our expenses. But while I urge the reduction of expense it is equally my duty to urge an increase of revenue. If I have been a faithful steward of what was intrusted to me, if more became necessary than I ever received, and if urged by that necessity I have anticipated the receipts, surely I am in the strictest line of propriety when I loudly call for relief. Every one must know, that the paper I have circulated will lose its value, unless punctually redeemed. The several receivers are indeed instructed to exchange it; but what can that instruction avail, if specie be not placed in their hands for the purpose? And how can that be effected but by a vigorous collection of taxes?

I know that my solicitude on this subject will be charged to improper motives. When I urge a reduction of expense it will be said, that I wish to impair the strength and lessen the respectability of our country. Far other wishes swell my bosom. But I have been driven into a conviction, that the necessity of strength, and the advantage of reputation, are not yet sufficiently felt and understood by all the members of our federal Union.

My present call for taxes has also been anticipated by a slanderous report, that I have speculated on this very paper which I urge the redemption of. Most solemnly I declare, that I have never been concerned, directly or indirectly in any such speculation. If there be a man in the world who knows any instance to disprove what I say, let him step forth with the accusation. No, Sir, the object is in nowise a personal one to me; I only advocate the interest and reputation of America. If, with a view to injure me, the attempt is made to violate my engagements, the malice will be defeated; but at the same time let it be remembered, that the country, which will not support faithful servants, can never be faithfully served. Guilt and desperation will ever pant for scenes of tumult and disorder, office will ever excite envy, and malevolence delight in slanderous tales. Is it then to be wondered at if my foes are numerous? Believe me, Sir, if their attempts had only affected me and mine, they should have been received in the same silence, which has buried many other wrongs. But on the present occasion, it becomes my duty to delineate their baneful influence.

Pains are taken to cover with infamy all those who discount the public paper. The natural effect of this measure is to prevent those men from meddling with it, who, from a regard to their own reputation, would do the business on moderate terms. Hence it follows, that the holders cannot obtain so much for their paper as they otherwise might. Hence again an additional clamor and of course an additional loss to the possessors. On the basis of the depreciation is founded an argument to prevent the redemption. By these means the public credit is totally ruined, and the government becomes chargeable with flagrant injustice. No future anticipations can be made to supply the most urgent wants; and in the whole proceeding, they are made the victims, who confided in the faith of government. The attempt, therefore, by this slander to injure me is an injury to those, who have received my paper; and in every instance where they have joined in propagating the report, they have joined their enemies to plunder themselves.

Let me no longer intrude on your Excellency's patience, than to declare my conviction, that the States might easily fulfil far more extensive engagements than those which I have made on their account. Notwithstanding every insinuation I will continue my efforts for the purpose, and though base minds should reiterate their charges, I will persist in my duty and defy their malice.

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

ROBERT MORRIS.

REPORT TO CONGRESS RESPECTING TRANSFERABLE CERTIFICATES.

Office of Finance, July 31st, 1783.

The debts which have been found due to persons by settlements at the Treasury Office, have not been evidenced by transferable certificates for the following reasons.

1st. All such certificates have by experience been found to be only another kind of paper money, continually depreciating both by increase of quantity and defect of funds.

2dly. The consequence thereof is, that the same is daily brought into fewer hands and for less value, by which one of two things must happen, either that those few become very rich by their speculations, or, that being defrauded they become clamorous against the government.

3dly. If the certificates are transferable in the manner proposed by the motion, they are evidence of the debt as due to the bearer, and therefore whether obtained by accident, force, or fraud, vest him with a right, to the prejudice of the injured or unfortunate party.

4thly. Being, therefore, a precarious property, they become less valuable from that circumstance.

5thly. When the original proprietors become divested of them, some of the reasons in favor of revenues to redeem them lose their force, and the advocates for just measures being lessened, the probability of carrying them through is decreased.

6thly. While the evidence of such debts is in the treasury books and the stock transferable there, the public debt becomes a property, the object of purchase, instead of being as in the other case the means of making purchases as money.

But if there be powerful reasons in favor of the motion, which have escaped the Superintendent of Finance, he shall very readily comply with such order as to the wisdom of Congress may seem meet.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, August 1st, 1783.

Sir,

I do myself the honor to enclose an account of payments, made by the States to the receivers, until the 1st day of July last, and with it I take the liberty also to enclose a note, containing nearly the proportions, in which the States have paid their quotas of the requisitions for 1782.[17]

I take the liberty further to mention, that the State of South Carolina has (by means of the supplies to the troops serving there) paid the full amount of her quota for 1782, as I am informed by the Receiver, whose accounts and vouchers (though momently expected) are not yet come forward. The State of Georgia has I believe contributed something in the same way, but if not, the great ravages which she has endured will account for the defect, without supposing any defect of inclination. As for the other States, I pray leave to avoid any comments on the balances of their accounts.

I have the honor to be, &c.

ROBERT MORRIS.

TO MESSRS WILLINK & CO.

Office of Finance, August 6th, 1783.

Gentlemen,

I beg leave to acknowledge your favor of the 12th of April last, which came to hand two days ago. From the letters I had already written, and which I presume you will have received before this, you will easily see how much pleasure I derive from the prospect that your loan may speedily fill. Be assured, Gentlemen, that your endeavors on this occasion shall not be forgotten; and rely on it that you cannot render more acceptable service to the United States.

My former letters contained the disposition of your funds so far as to satisfy any demands which Mr Grand might have. These I suppose have been complied with, and I expect, that not only the sums which Mr Grand could possibly want must have come to your hands before this letter can arrive, but that you will still have a considerable balance.

Under these circumstances, the exchange on your city being now high, and the disbandment of our army having increased my need of money to make them a considerable payment, I have concluded to draw on you to the amount of two hundred thousand florins, as occasion may offer; and if exchange should not fall, nor any advices arrive to prevent the measure, I may perhaps extend my drafts on you to five hundred thousand florins. But as it might happen, notwithstanding my opinions, that you should not be considerably in cash beyond Mr Grand's demands, I have determined on these two points; first, that I will not precipitate my sales here, but only dispose of bills as occasion may require; and secondly, that I will draw at ninety days' sight, because the demand for bills is such, that a difference in the sight will make none in the price. By these means it will happen, Gentlemen, that even if you are not in cash when the bills arrive, you can have no difficulty as to the acceptance, because the natural progress of the loan must put you in possession of money before they can fall due. And this is the more to be expected, as some of the tobacco will doubtless have arrived, which cannot but give a weight and solidity to your negotiations. If however these things should not so happen, you will, I expect, pay the bills at any rate, and for any excess beyond your immediate funds you will charge an interest to the United States. On the other hand, if it should happen according to my expectations, that you have unappropriated money in your hands when the bills are presented, I am then to request that you will pay them at sight, if agreeable to the parties, deducting the usual discount for prompt payment, which you will be so kind as to credit to the United States.

With every wish for your success and prosperity, I have the honor to be, &c.

ROBERT MORRIS.

GEORGE WASHINGTON TO ROBERT MORRIS.

Head Quarters, August 6th, 1783.

Sir,

I thank you for the communication, which you have been pleased to make to me under the 11th of July. It was handed to me on my return last evening from a tour —— have been making to the northward and westward, as far as Crown Point and Fort Schuyler, to view the posts and country in that part of the United States' territory.

The anticipations you have been obliged to make are indeed great, and your circular letter to the States on the occasion appears to me sufficient, if anything of the kind can be so, to arouse their attention to the necessity of your circumstances. I most sincerely wish it may have the desired effect.

In consequence of my tour to the northward, the Quarter Master General, will have my orders to prepare batteaux and other means of transportation to the upper posts, of the cannon, stores and provisions, which will be absolutely necessary for possessing and maintaining them. To effect this money will be necessary, and I give you this information, that a demand will probably be made on you for the purpose.

The State of New York, which is deeply interested in the security of these posts, and effecting this business, may perhaps be prevailed on to furnish the necessary sums to be placed to general accounts. This will probably exert itself in this case preferably to any other. I give you this hint, and leave its improvement to you.

Knowing your situation, I am pained when necessity obliges me to make any application for money. But this purpose is of so great importance to the interests of the United States, and of so urgent necessity, that if the sums required cannot be obtained in the way I have hinted, I must entreat you to give every assistance to Colonel Pickering that shall be necessary.

I am, &c.

GEORGE WASHINGTON.

TO GEORGE WASHINGTON.

Office of Finance, August 12th, 1783.

Sir,

I have received your Excellency's favor of the 6th instant. I am always happy to hear from you, although I confess that every new demand for money makes me shudder. Your recommendations will always meet my utmost attention, because I am persuaded that you have equally with me the desire to husband and enlarge our resources. Your perfect knowledge of our political and military situation must decide on the measures to be pursued, and I am persuaded, that your advice to Congress on these subjects will be equally directed to the safety, the honor, and the interests of the United States.

With very sincere esteem, I have the honor to be, &c.

ROBERT MORRIS.

TO THE PAY MASTER GENERAL.

Office of Finance, August 12th, 1783.

Sir,

I am to acknowledge the receipt of your favor of the 6th instant, containing two questions. To the first of these I answer, that my anticipations amount to a very large sum, that it will employ all my resources to honor engagements already taken; that of consequence I cannot see my way clear to form new ones, and that if I did, the groundless and injurious clamors, which have been raised on this subject, would prevent me. It becomes impossible to serve a people who convert everything into a ground for calumny. The existence of the republic, since the conclusion of a peace, no longer depends upon extraordinary sacrifices and exertions. My desire to relieve the army has been greatly cooled, from the information, that many of them have joined in the reproaches I have incurred for their benefit. And the necessity I feel of quitting (at the earliest possible moment) an office of incessant labor and anxiety, whose only reward is obloquy, will not permit me even to think of any farther anticipations.

The second question in your letter is foreign to my department; a question, which you have as many materials to judge upon as I have, and which you are particularly authorised to decide.

I am, Sir, &c.

ROBERT MORRIS.

TO ELBRIDGE GERRY.

Office of Finance, August 26th, 1783.

Sir,

In compliance with your request, I shall not only give the information which appears to have been the object of Mr Clarke's letter, but recapitulate also the observations which I had the honor to make on what you mentioned as the object of the committee. And first, for the information desired, I can answer only in general terms, that I believe the various engagements entered into previous to the end of 1781, were under the faith of requisitions then existing. Since that period, I know of only two requisitions for current service, both of them founded on estimates. The first was of eight millions for the service of 1782, and the second was of two millions, for part of the service of 1783. All the engagements of my administration are on the faith of these latter requisitions.

The first object you mentioned was to alter the mode of settling accounts, so far as the requisitions previous to 1781 are concerned, and only to calculate the actual payments, or advances by the States, with the interest, so that the whole, being formed into one sum, may be afterwards apportioned among the States. To which plan, among other objections, I look the liberty to state the following. First, there is no evident necessity for taking this step, and therefore it will be prudent to omit it; because in such cases government risk every unforeseen danger that may result, and always render their affairs more complicated. Secondly, the measure may be misunderstood, and occasion clamors, which will indispose some to adopt the other measures recommended by Congress; which objection though it ought not to weigh in competition with what is evidently proper and right, must nevertheless be attended to in things of more doubtful complexion. Thirdly, there would arise from it a degree of irregularity; for the particular accounts being now all opened in the treasury books, by the authority of the late Board of the Treasury, it appears most natural to continue them in their present form, until the final settlements. Fourthly, all the information necessary to enable Congress to decide on the accounts when settled will then be in their power; for the accounts will contain, on one side, the compliances of the State with the requisitions, together with all other advances which they have made for the public service, and on the other side will be the amount of the various requisitions. Whenever therefore Congress on such full view of the subject, shall think proper to remit the whole, or any part of the requisitions, entries will be made in the treasury books accordingly. Fifthly, it would be rather premature to make the decision proposed before (by a settlement of accounts) all the proper materials are brought into view; and until the States have adopted the proposed measures for funding the public debts. Because, sixthly, it is conceived that the various requisitions were adequate to the necessary service; and that although it may perhaps be wise eventually to convert the whole expenditure of the war into the form of a debt, in order thereby to prevent the disputes which might arise on the apportionments, still it must be remembered, that this step cannot be taken until funds are obtained. Until that period, therefore, it is perhaps as well to leave the requisitions; if it be only to show the States why they are called on for revenues now, viz. because they would not or could not furnish supplies before. But, lastly, it might prove dangerous under present circumstances to take any step whatever with these requisitions. Only partial compliances have been made. Some States therefore adhere to some requisitions, and some to others, according to the real or supposed situation of their accounts. To go no farther, it would hardly be prudent to hazard a dispute with Massachusetts, by relinquishing the requisitions of March, 1780, or with some other States by a useless attempt to enforce them.

The other object, Sir, which you appeared to have in view, is to relinquish so much of the requisitions since 1781, as might leave only the sum necessary for fulfilling present engagements. Now although the resolution, which seems to have been in contemplation, would not have had this effect, because the requisition for the service of 1782 was made on estimates, yet I shall assign a few objections to the plan. The reason urged in favor of it is, that the demand was so much beyond the abilities of the States, and the necessities of the service, that it must excite a despair of compliance, and a diffidence in the prudence of those by whom it was made. To which it may well be replied, that the ability of the States is not so hastily to be decided on, because it has never been put to the proof by prudent and vigorous taxation, because other countries not so wealthy bear much heavier taxes without inconvenience, and because these very States have borne it, though under another name; for the depreciation of the paper money, which wiped away not less than twelve millions annually, was in effect a tax to that amount.

But further, even admitting the supposed inability, still the requisition, if not excessive as to its object, ought of necessity to have been made. Because the States could by no other mode of reasoning be convinced of the necessity of establishing that credit, which can alone prevent such great efforts. And because if such requisitions had not been made, some branch of service must have been left unprovided for by Congress, on the very face of their own measures, which would have been a palpable absurdity.

And this leads to the second point, viz. that the demand was beyond the necessities of the service. Before this position is assumed it must be considered, not only what expense was actually paid, but also what was probable when the demand was made, and what of the expense incurred still remains due. And first, as to what was paid; we shall find that the military collections in the Southern States went to a considerable sum, which is not yet brought into the public accounts, as there was no money to defray it, owing to the noncompliance of the States. Secondly, the probable expense was far beyond the actual, because of the misfortunes of our allies, which rendered it necessary lay aside the proposed offensive measures, and which could not, if not laid aside, have been carried into effect, by reason of the lamentable deficiencies of the public revenue. And thirdly, a very considerable part of the expense of 1782 is necessarily paid in 1783, and a far more considerable part remains unpaid. For instance, almost the whole amount of the pay of the army; an army by no means so numerous as that which the General had called for, and Congress resolved on. And it would have been indeed very strange, if Congress had asked only five millions from the States, including therein every other article, but the pay of the army on whose exertions everything depended.

Having said thus much on what has been assumed with respect to these estimates, and which I can defend the more hardily, as by accident they did not pass through my office, I proceed now to state the objections against remitting them. And first, let it always be kept in view, that the States not having granted the funds necessary for securing to our army the interest of their dues, that army has a just right to insist that the requisition for the principal be not relinquished, until such grants be made. Secondly, it must be remembered, that Congress have not yet any standard for making a final apportionment, and therefore it must be very useless now, to touch requisitions which must speedily be retouched again. Thirdly, the States which have complied more fully than others, would undoubtedly, in such cases, relax from, and perhaps totally withhold their efforts; from the conviction that deficient States would always be able to obtain from Congress a vote favorable to themselves, and consequently unfavorable to others; which idea, grounded too much on past experience, is one great cause of that inattention which led us to the brink of ruin. Fourthly, this mischief would not only arise among the States, but it would exist also amidst and within them, for a relaxation of the whole quota would naturally render new interior apportionments necessary. Not to mention the delays and disputes thereby occasioned, the remainder of what would then be to pay would be thrown of course upon remote counties, where the powers of government are weak, the collections languid, and the revenue in every respect feeble and unproductive. Great deficiencies would arise from these causes, both in the periods and the amount of payments, and either would be sufficient to cause another national bankruptcy. But, fifthly, there can be no reason for the measure proposed; because it is much more simple to leave the present demands for ten millions of dollars upon their present footing, until the apportionment of that whole sum can be made finally to pay (from whatever is brought in) the amount of all existing engagements, to go on (should collections be sufficient) and pay off a part of our debts, and finally to make no new requisitions, until these be completely complied with. By that period Congress will be able to deride with accuracy on the sums necessary for annual service; they will be able to apportion their demands accordingly, and, what is of infinite importance, they will have set an example of persisting regularly in a measure, until a full and final compliance.

I am, Sir, respectfully, &c.

ROBERT MORRIS.

GEORGE WASHINGTON TO ROBERT MORRIS.

Rocky Hill, August 30th, 1783.

Sir,

I take the earliest opportunity of informing you, that Baron Steuben has returned from Canada, without being able to accomplish any part of the business he had in charge. In consequence of which, and of the late season of the year, I have judged it impossible to take possession of the western posts this fall, and have ordered a stop to be put to the movement of troops and stores, and to the preparations which were making for that purpose; of which I have given notice to the Quarter Master General, and to the contractors, and have taken every other precaution in my power to prevent the accumulation of unnecessary expenses.

I am, &c.

GEORGE WASHINGTON.

TO GEORGE WASHINGTON.

Office of Finance, September 2d, 1783.

Sir,

I received your Excellency's favor of the 25th and 30th of last month. The latter was by far the more agreeable, for I confess to you, Sir, that I beheld the attempt to garrison the western posts with pain, and went into so much of it as concerns my department with infinite reluctance. I persuade myself that the only effectual means of getting a good American establishment of any kind is, to be so long without it that a sense of the want shall stimulate the States into the means of forming it. At present all we can do is, to close the past scene, if possible, with reputation.

I am, very sincerely, &c.

ROBERT MORRIS.

CIRCULAR TO THE COMMISSIONERS OF ACCOUNTS.

Office of Finance, September 4th, 1783.

Sir,

As the Commissioners, both on the Accounts of the Departments and on those of the States, are now almost all appointed, and in the execution of their respective offices, I shall take the liberty of adding a little to their important employment. And this I do with a view to the future service of the Union, under whatever hands the administration may fall.

In the course of the business committed to your care, you will have occasion to travel into different places, and therefore you will have an opportunity to render an accurate account of many particulars, which it is important to know. A well regulated system of finance requires, that money be raised with ease to the people, and expended with economy to the public. An intimate acquaintance with the state and the resources of a country, is alike essential to both of these objects.

The state of the country is either geographical, moral, political, or commercial. The geographical state comprehends,

1st. The general extent, divisions, and subdivisions.

2dly. The mountains, rivers and roads, with their respective courses and distances.

3dly. The kind and quality of the soil; and

4thly. The natural advantages or disadvantages for husbandry, manufactures, or commerce, including therein, mines, minerals, quarries, salines, and the like.

The moral state of the country comprehends,

1st. The population, whether numerous or, not, and whether by natives or emigrants.

2dly. The manners; which include the mode of life and occupation of the people, from those who live by hunting or grazing, to the husbandman, and so on to the most perfect mechanics.

3dly. The husbandry; by which is meant the particular kinds which may be practised, and the degree of improvement in each. The various climates and productions of the States, as well as their different periods of settlement and relative population, have rendered this article extremely various.

4thly. The arts; by which is not so much intended the fine, as the useful arts. It may, however, be not amiss to mention any peculiar or remarkable excellence in the former. The useful, or mechanic arts, being in some places considerably advanced, and in others hardly established, and the wealth of the country depending much upon them, it will be well to know the subject intimately.

5thly. The buildings; these may be either public or private. The former may be noticed, but of the latter an accurate information will be necessary, seeing that in general much information as to the abilities of a people may be derived from a knowledge of the houses they have built; whether these be of logs, for shelter of the new and indigent cultivator; or of stone, for the accommodation of the established and wealthy husbandman. So also, whether the windows be glazed or not, the state of the several outhouses, &c. And,

6thly. The improvements; which will comprehend, of land, from the first clearing of a forest, to the watering and dyking of meadows and swamps; and of buildings, from a common saw mill, to all the various furnaces, forges, mills, and machines, which may be met with in the progress of your inquiries.

The political state of the country comprehends,

1st. The constitution of government; which is not merely the paper form, but the practice under it; and that will depend much upon the tendency of the people towards aristocratical or democratical dispositions. The former may be expected, where large tracts of territory are in the hands of a few, and the latter where a considerable equality of fortunes is found in cities. But neither of these circumstances, though forcible, is conclusive, and therefore it is, that the knowledge collected on the spot by conversation and observation, becomes useful.

2dly. The magistracy; by which is meant not only the mode of appointment, the names, the powers, and the jurisdictions, but what is far more important, the authority, which materially depending upon the respect paid to the magistracy, must be much influenced by the personal character of the magistrates; and by that character is not so much intended the reputation of a few individuals, as of the whole corps, and for a considerable space of time.

3dly. The interior police; which is intimately connected with, and mutually acted upon by the former. This differs widely in the different States, and is the more necessary to be known, as various branches of it may either facilitate or oppose the public measures.

4thly. The revenue; and under this head is particularly to be noted the modes of laying, levying, and collecting taxes, the time and the expense which are employed, and the delays and the frauds which happen. To these will be added, the amount brought into the treasury, and, as far as may be, the quantum appropriated to public uses; and,

5thly. The credit, both public and private; the former of which has a close connexion with the revenue.

The commercial state of the country, comprehends,

1st. The produce; under which term is included not only the raw material, but the ruder manufactures; such for instance, as flour from wheat, iron from ore, and the like.

2dly. The roads and navigation to the several ports; on the facility whereof must greatly depend the prices of things, and even the practicability of obtaining them.

3dly. The imports and exports, with the places to and from which the same are made; the former as precisely as possible, and the latter in such general terms as may convey a tolerably just idea of the principal branches and connexions of foreign commerce.

4thly. The value of lands; which though a result from various heads already mentioned, has a more intimate connexion with commerce; and,

5thly. The value of money; by which is not so much meant the coins, as the rates of interest actually paid, and the facility of obtaining money on interest.

The resources of a State are twofold, being either those which exist and may be drawn forth and applied in peace, for the various purposes which may then occur to meliorate or beautify the country, such as the opening of interior navigation, mending of roads, and erecting of buildings; or those, which can be exerted for the purposes of war, either offensive or defensive. The resources in peace will appear from due reflection on the information already asked; as will indeed, in a great degree, those for war, particularly offensive war. But still there remain some particulars worthy of notice; such as,

1st. The number of men which may be brought into the public service; being either seamen or soldiers; and consequently the number of each should be distinguished.

2dly. The quantity of provisions and the kinds.

3dly. The forage of different kinds; and,

4thly. The various means of transportation, such as horses, wagons, boats, &c.

Having thus, Sir, pointed out the principal objects on which I wish for information, I must now request, that you will endeavor to collect it as speedily and as perfectly as your means and opportunities may permit, and that you will transmit it as fast as it is obtained, but always in letters which contain no other matter, and arranged regularly under the several titles which have been mentioned; but as it is impossible to foresee the various matters which may arise, and the occurrences which will impress themselves on an intelligent and inquisitive mind, you will be pleased under the head of Miscellaneous Observations, to transmit any such things as you may think useful or important to be known.

I am, Sir, &c.

ROBERT MORRIS.

TO JOHN ADAMS.

Office of Finance, September 20th, 1783.

Sir,

I have been duly honored with your Excellency's favors of the 5th, 10th, and 11th of July. I have taken the liberty to make some extracts from the two latter, which are transmitted in a letter to the Governor of Massachusetts, a copy whereof is enclosed. Permit me, Sir, to give my feeble approbation and applause for those sentiments of wisdom and integrity, which are as happily expressed as they are forcibly conceived. The necessity of strengthening our confederation, providing for our debts, and forming some federal constitution, begins to be most seriously felt. But unfortunately for America, the narrow and illiberal prejudices of some have taken such deep root, that it must be difficult and may prove impracticable to remove them.

I agree with you, Sir, in opinion, that the late peace was not, all circumstances considered, a bad one for England. It is undoubtedly a peace equally glorious to, and necessary for, America. All ranks of men in this country feel, as well as perceive, the benefits of it, and the fault finders (for such men there always will be) are borne down by the general torrent of applause.

I was happy to learn by the Washington packet, that you intended a short trip to Amsterdam for the purpose of urging on the loan. I hope you may have met with the success due to your zeal and abilities; I shall ask no greater.

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

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, September 30th, 1783.

Sir,

I am to acknowledge the receipt of your favors of the 7th of March and 27th of July. For both of them, accept my thanks. You express an apprehension lest the union between France and America should be diminished by accounts from your side of the water. This apprehension does you equal honor as a statesman and as a man. Every principle, which ought to actuate the councils of a nation, requires from us an affectionate conduct towards France, and I very sincerely lament those misapprehensions, which have indisposed some worthy men towards that nation, whose treasure and blood have been so freely expended for us.

I believe the truth, with respect to some, to be this. A warm attachment to America has prevented them from making due allowances in those cases where their country was concerned. Under certain prepossessions it was natural for them to think, that the French Ministry might do more for us, and it was quite as natural for the Ministers to think, that we ought to have done more for ourselves. The moment of treaty with England was of course the moment of profession with English Ministers. I fear that the impressions made by these were for a little while rather more deep than was quite necessary. But the same love of America, which had raised such strong irritability where her interests were concerned, will of course stimulate it to an equal degree when those interests are assailed from another quarter. I think I may venture to assure you, that the esteem of this country for France is not diminished, and that the late representations have not been so unfavorable as you fear.

Our commerce is flowing very fast towards Great Britain, and that from causes which must forever influence the commercial part of society. Some articles are furnished by Britain cheaper, many as cheap, and all on a long credit. Her merchants are attentive and punctual. In her ports our vessels meet with despatch. I say nothing of language and manners, because I do not think their influence so strong on commerce as many people suppose, but what is of no little importance is, that the English having formed our taste, are more in a capacity to gratify that taste by the nature and fashion of their manufactures. There is another circumstance, also, which must not be forgotten. The great demand for French manufactures during the war increased the price of many, and some time will be required before it can, by a fair competition, be discovered, which of the two countries, France or England, can supply us cheapest. The delays in the public bills is a further circumstance which militates (a momentary obstacle) against the trade with France.

I must, therefore, mention to you, also, a matter which is of great effect. Until we can navigate the Mediterranean in safety, we cannot trade in our own bottoms with the ports of France or Spain, which are on that sea. And we certainly will not trade there in foreign bottoms, because we do not find the same conveniences and advantage in so doing, as in our own vessels; unless, indeed, it be on board of English ships. This may be a disagreeable fact, but it is not the less a fact.

I believe that informations are transmitted hence to the Court, which they ought not to rely on. Their servants doubtless do their duty in transmitting such information, but I am persuaded that they are themselves not well informed. Indeed it is quite natural, that men should mistake when they examine and treat of a subject with which they are unacquainted. And it cannot well be supposed, that political characters are competent to decide on the advantages and disadvantages of allowing to, or withholding from us, a share in the carrying trade. On this subject I will make a further observation, and you may rely on it, that I speak to you with candor and sincerity, not with a view to making any impressions on the Court. You may communicate or withhold what I say, and they may or may not, apply it to their own purposes. If anything will totally ruin the commerce of England with this country, it is her blind attachment to her navigation act. This act which never was the real foundation of her naval superiority, may and perhaps will be the cause of its destruction. If France possesses commercial wisdom, she will take care not to imitate the conduct of her rival.

The West India Islands can be supplied twenty per cent cheaper in American than in French or British bottoms. I will not trouble you with the reasons, but you may rely on the fact. The price of the produce of any country must materially depend on the cheapness of subsistence. The price at which that produce can be vended abroad must depend on the facility of conveyance. Now admitting for a moment (which by the by is not true) that France might, by something like a British navigation act, increase her ships and her seamen; these things would necessarily follow. 1st. Her Islands would be less wealthy, and therefore less able to consume and pay for her manufactures. 2dly. The produce of those Islands would be less cheap, and therefore less able to sustain the weight of duties, and support a competition in foreign markets. 3dly. The commerce with this country would be greatly lessened, because that every American ship, which finds herself in a French, English, or other port, will naturally seek a freight there, rather than go elsewhere to look for it; because in many commodities the difference of price in different parts will not compensate the time and cost of going from place to place to look after them. To these principal reasons might be added many others of less weight, though not of little influence, such as the probable increase of commercial intercourse, by increasing the connexions and acquaintances of individuals. To this and to everything else which can be said on the subject by an American, I know there is one short answer always ready, viz. that we seek to increase our own wealth. So far from denying that this is among my motives, I place it as the foremost, and setting aside that gratitude which I feel for France, I do not scruple to declare, that a regard to the interests of America is, with respect to all nations of the world, my political compass. But the different nations of Europe should consider, that in proportion to the wealth of this country will be her ability to pay for those commodities, which all of them are pressing us to buy.

Our people still continue as remiss as ever in the payment of taxes. Much of this, as you justly observe, arises from the difficulties of collection. But those difficulties are much owing to an ignorance of proper modes, and an unwillingness to adopt them. In short, though all are content to acknowledge, that there is a certain burden of taxation which ought to be borne, yet each is desirous of shifting it from his own shoulders to those of his neighbors. Time will, I hope, produce a remedy to the evils under which we labor, but it may also increase them.

Your applications to the Court for aid are certainly well calculated to obtain it; but I am not much surprised at your ill success. Indeed I should have been much surprised if you had been more fortunate. Of all men I was placed in the situation to take the deepest concern in the event, but I cannot disapprove of the refusal, for we certainly ought to do more for ourselves before we ask the aid of others. Copies of your letters to the Court were laid before Congress, and also the copy of the new contract. I will enclose with this a further copy of the ratification of the old, if I can obtain it in season from Princeton, where the Congress now are.

I have written also on the subject of the debt due to the Farmers-General, and should Congress give me any orders about it, I shall attend carefully to the execution. The conduct they have maintained with regard to us has been generous, and will demand a return of gratitude as well as of justice. This I hope my countrymen will always be disposed to pay. I shall take some proper opportunity of writing to the Farmers-General, but will wait a while to know what may be the determination of Congress on their affairs.

It gives me much pleasure to find, that by the proposed establishment of packets, we shall shortly be in a condition to maintain more regular and connected correspondence; for although I shall not myself be much longer in public office, I feel for those who are or will be charged with the affairs of our country, both at home and abroad. It will naturally occur, however, that a good cypher must be made use of not unfrequently, when despatches are trusted to foreigners. They have no regard either to propriety or even decency where letters are concerned.

With very sincere esteem and respect, &c.

ROBERT MORRIS.

TO ARTHUR LEE.

Office of Finance, October 4th, 1783.

Sir,

I have received your letter of the 26th of last month, desiring information as to the reality of a contract with, and instructions to Mr Deane. Enclosed you have a copy of the contract mentioned. The instructions to Mr Deane are, I presume, in the Office of Foreign Affairs.

The facts under this contract are generally as follows, so far as my knowledge extends. Money was advanced to me, which I expended in shipment of cargoes from the Delaware and Chesapeake, and have long since accounted for. Money was also advanced to Messrs Lewis, Livingston and Alsop, and, I believe, expended by some or one of them in shipments from New York and Connecticut, but the accounts are not yet closed; which is one among many reasons why a commissioner should be appointed or authorised to settle the accounts of the secret and commercial committees.

Of the several shipments made, some arrived, some were taken, some were detained by the enemy's naval power. The risks becoming great, it was thought most adviseable to abandon the farther prosecution of the plan; which the parties to the contract, then in this country, cheerfully consented to, and it was determined that the proceeds of those shipments, which might have arrived, should be carried into the general public accounts. Mr Deane went to Europe under this contract; and being unable, from the remittances sent, to complete the intentions of his voyage, has, I believe, carried the amount of those remittances into his general accounts with the United States. These accounts are among those which Mr Barclay is appointed to settle, and I presume that no allowance will be made, such as claimed by Mr Deane, until he shall have produced the contract and instructions to which he refers for support of his claim; nor then, unless very completely supported or specially allowed by Congress.

I believe Mr Barclay is now employed in making that adjustment, and I suppose, that after he shall have gone through Mr Deane's accounts, admitted such charges as ought clearly to be admitted, and rejected such as ought clearly to be rejected, there will remain some articles on which he will apply to Congress for their special decision; in which case he will naturally transmit all the evidence which Mr Deane may have exhibited.

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

ROBERT MORRIS.

TO M. DE LA LUZERNE.

Office of Finance, October 15th, 1783.

Sir,

I had the honor to receive your Excellency's letter of the 11th instant. If a settlement of the accounts which arose before the commencement of my administration had depended on me, neither M. Holker nor any other person should have had cause of complaint. The perplexed situation of those accounts rendered it necessary for Congress to submit them to the investigation of special commissioners, who have but lately commenced their operations. I shall immediately transmit a copy of your Excellency's letter to the gentleman who may be charged with those accounts in which M. Holker is concerned, and request his attention to the subject.

That any person should suppose the apprehension of being taxed with favor to an individual, would induce me to delay the justice due alike to all, is so extraordinary, that your Excellency must permit me to express my surprise at meeting the idea in a letter from the King's Minister.

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

ROBERT MORRIS.

TO MESSRS WILLINK & CO.

Office of Finance, October 23d, 1783.

Gentlemen,

Upon taking a view of my various engagements for the public service, and considering the great anticipations, which have been made at the period when our brave army quitted the field, it has appeared to me, that the sum of about three hundred thousand dollars would be necessary for me over and above the probable produce of our taxes, to clear off all those engagements, and enable me to lay down the burdens of official life in a consistent and proper manner, should the situation of public affairs then admit of it. This circumstance, however nearly it interests my personal feelings, is still more interesting to my country; because a regular and punctual performance of engagements, while it establishes confidence, ensures the means of future punctuality.

Revolving much on this subject in my own mind, I have been led to consider also, that the present rate of exchange, which is very favorable, may not continue when tobacco, rice, indigo, and the other produce of the southern States shall be freely exported in remittances to Europe. And if the exchange should lower, there will be a loss on the bills of the United States, which I would always wish to prevent. Besides this there is another important circumstance, which is, that if the drafts are suspended until notice of the success of your loan, so as to lodge the money, the public will be paying interest, both here and in Europe for the same sum; which ought, you know, as much as possible to be avoided.

Under these different impressions, the natural conduct would have been, to vend my bills very boldly, and trust to the success of those exertions, which you will undoubtedly make. But here it was proper to consider, that if unforeseen circumstances should in any manner have put a check upon your operations, the consequence might have been a very great inconvenience, and perhaps injury to you, which I would always wish to avoid, together with a loss of credit, coupled with the payment of heavy damages to the United States.

I have therefore adopted a middle line of conduct, which will combine the advantages and avoid the inconveniences, both of delay and of precipitation. I have drawn three sets of exchange, all dated on the 21st instant, (the time when they were drawn) and each for two hundred and fifty thousand current guilders, payable at one hundred and fifty days' sight. These bills are numbered one hundred and ninetyone, one hundred and ninetytwo, and one hundred and ninetythree; the first in favor of John Ross, the second in favor of Peter Whiteside & Co., and the third in favor of Isaac Hazelhurst. All these are solid houses, upon whose fidelity and punctuality I can place equal dependence. I have taken from them proper stipulations to pay at the end of one hundred and twenty days, each one hundred thousand dollars; by which means I have secured the immediate vent of that sum at the very highest exchange. And it is further agreed between us, that in case of protest, (which God forbid should happen) the public shall not be charged with damages; the necessary consequence of which is, that the bills will not be negotiated further than to place the amount in the hands of their friends, which is indeed fully understood between us. You will see also, that in this mode I shall bring to the public use here (allowing about two months for the bills to be presented) the sum of three hundred thousand dollars, near three months before it is paid by you.

From this explanation, which I have entered into in order to show you the full grounds of my procedure, because I knew how much more satisfactorily business is conducted when all circumstances are known, you will perceive that my bills already advised of, are first to meet due honor, and consequently funds set apart for their absolvement. These three new bills then come in their course, and I must entreat you, Gentlemen, to honor them also, even if you have not the funds, provided a view of fair prospects can render it at all consistent with that prudence, which must doubtlessly influence you in such important concerns. I must also request, that you will give me, by various conveyances, the most immediate notice of your acceptance, because I shall from that moment be able, by discount, to bring the securities given by those gentlemen into operation.

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

ROBERT MORRIS.

TO THE FARMERS-GENERAL OF FRANCE.

Office of Finance, November 4th, 1783.

Gentlemen,

The Honorable Minister Plenipotentiary of the United States of America to the Court of Versailles, having done me the honor to transmit a copy of your letter to him of the 17th of July last, I took the earliest opportunity after the receipt of it, to submit that business to the consideration of Congress; who by their Act of the 1st instant, whereof a copy is enclosed, have instructed me to inform you, that Congress are sensible of your generous attention to the circumstances of the war, in which these United States have been so long engaged, and which, interrupting their commerce, deprived them of the means of seasonable remittances to satisfy the balance so justly due on the loan made by you.

I am further instructed, Gentlemen, to assure you that the United States in Congress assembled, in providing for the national debt, by their Act of the 18th day of April, 1783, were not unmindful of your demands, and that when the system thereby adopted for the relief of public creditors shall have taken effect, the interest accrueing on the balance due to you, will be punctually remitted.

If, Gentlemen, this arrangement shall not prove satisfactory to you, I am further instructed to assure you, in the name of the United States, that all the means in their power shall be employed to discharge the principal sum due to you, as soon as the condition of the public finances will admit.

I have the honor to enclose a copy of the above mentioned Act of the 18th of April for your better information on this subject, and take the liberty to add, Gentlemen, to the assurances just given on the part of my sovereign, that every effort in my power shall be made to comply with such ulterior orders as may be issued, as well as to render you any acceptable services in my power.

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

ROBERT MORRIS.

REPORT TO CONGRESS ON AN EXTRACT FROM THE JOURNALS OF THE GENERAL ASSEMBLY OF PENNSYLVANIA.

The Superintendent of Finance, to whom was referred an Extract from the Journals of the General Assembly of Pennsylvania, begs leave to report;

That the said extract consists of two parts; the former whereof contains certain matters reported by a committee of that honorable House, in consequence of a conference held with the commissioner for settling the accounts of the said State, the which matters are reported by the committee, and appear to have been considered by the House as facts. The latter part contains reasonings upon the former, and resolutions in consequence thereof. Pursuing therefore the same line, the Superintendent of Finance must take leave to observe, that the former part of the said extract implies an inattention on his part to the orders of the United States in Congress, and an assumption of powers not delegated. He humbly prays to submit both of these charges to the wisdom and equity of Congress, who have long since had before them all the instructions given to the commissioners for settling accounts, together with a report on the reference mentioned in the extract; wherefore it is to be presumed, that if undue negligence or the arrogating of power had appeared, it would not have passed unnoticed.

It is further to be observed, that the doubts stated by the said commissioner and the difficulties under which he is supposed to labor, must have chiefly originated in circumstances peculiar to himself, because that such doubts and difficulties have not occurred to the commissioners employed in other States, and because they would easily have been obviated by a careful consideration of the Acts and instructions in his possession; excepting only in one point, viz., "Whether charges for buildings, fences, wood, &c. damaged or destroyed by continental troops, or militia, are to be allowed?" This question (which can only be resolved by special Act of Congress) is not to be found among twelve questions proposed by the commissioner to Congress; but among nine proposed to the Superintendent of Finance.

It is stated in the said extract, "that by the instructions from the Office of Finance to the said commissioner, he is enjoined a strict attention to the resolve of Congress of the 23d of August, 1780, touching all certificates generally; that this resolve introduces an entire new method of granting certificates; that to require those new forms in certificates, granted before they were instituted, is requiring an impossibility, or (in other words) is a refusal to liquidate any certificate given before the 23d of August, 1780." Were this the case, doubtless there would be sufficient cause of complaint and sharp animadversion; but the Acts and instructions, all which are in possession of Congress, will show the state of facts to be as follows. The Act of Congress of the 20th of February, 1782, speaking of the commissioner contains the following words; "That he be also fully empowered and directed, to liquidate and settle, in specie value, all certificates given for supplies by public officers to individuals, and other claims against the United States, by individuals for supplies furnished the army, the transportation thereof, and contingent expenses thereon, within the said State, according to the principles of equity and good conscience, in all cases which are not or shall not be provided for by Congress." Under this Act of Congress, the Controller of the Treasury issued certain instructions, which were approved of by the Superintendent of Finance, thereby directing each of the several commissioners "to open an account with the principal of each department, for the time being, and with every person who is properly accountable for articles purchased by or delivered to him. In which they must be changed respectively with all such articles, and for which they are to account with the commissioners appointed, or to be appointed to adjust the accounts of these departments respectively."

The Superintendent of Finance, in a letter to the commissioners of the 7th September, 1782, after referring to the Controller's instructions, calls their attention to two particulars, the former whereof is not material to the present point, and the latter is as follows; "In settling the accounts with individuals, you will consider that artful men have frequently taken advantage of the public, and that, in many instances, public officers have taken advantage of the weak and unprotected. You will therefore always remember that it is your duty to do justice." The two commissioners who were first appointed after considering the Acts of Congress and the several instructions given to them, proposed, among others, the following question, "Whether certificates given to individuals are to be taken as they stand, and new ones given for their amount; or whether they are to be re-examined and new prices affixed to the articles when they have been over or under charged?" The Superintendent and Controller entered into a consultation together, and the following answer was returned. "Certificates given by quarter masters or commissioners to individuals, must be re-examined, the articles shown, and their value determined, that the receiver of them may be charged and made accountable to the commissioners appointed for the respective departments." See resolutions of Congress of the 23d of August, 1780, relating to them, which must be strictly attended to."

This question and answer is regularly transmitted by the Controller to all the commissioners appointed to adjust the accounts between the individual States and the Union. The commissioner for the State of Pennsylvania, had therefore the matters above recited in his possession when he proposed to Congress the following questions. "Are certificates or receipts given by quarter masters, commissaries, their deputies, assistants, agents, or other public officers for supplies furnished, before the 15th of September, 1780, to be taken as they stand, and new ones given for their amount, estimated in specie? Are certificates issued agreeable to the mode prescribed by resolution of Congress, 23d of August, to be taken up and new ones given?" These questions were, among others, referred to the Superintendent of Finance; who thereupon informed the commissioner, that the answer thereto was in the Act of Congress, the letter from the Superintendent, and the question and answer above quoted. Surely there is nothing in either which requires the forms prescribed by the Act of the 23d of August, 1780, in certificates granted before they were instituted. The commissioner is indeed referred to that Act, and directed to pay attention to it; but the evident construction of this order, limits it to certificates issued under the Act. And even if that were not the case, yet when the whole of the instructions (or rather the answers) which are complained of, is taken together, there cannot be the shadow of a doubt. For among the commissioner's questions to the Superintendent is the following; "How are claims for supplies furnished, or services performed by an individual, who is destitute of a certificate or any kind of voucher, having only a bare charge against the United States for the same, to be settled? Will the oath or affirmation of the claimant make the charge good?" And he shortly after asked Congress, "How are claims for supplies furnished for public use by an individual, who is destitute of a proper voucher, to be authenticated?" To both these queries the answer given by the Superintendent, (and which forms part of the instructions complained of) is as follows. "They relate to the same point, viz. What evidence shall establish claims? It appears, that the article passed in favor of the claimant must charge some other person, and that public notice is to be given of the times and places of settlement, that both parties may attend. Under these circumstances, if the demand is grounded on principles of equity, and the evidence produced satisfies the conscience of the commissioner, he is bound to pass it, by the Act of Congress." Now it must be remembered, that the commissioner is (by the Act under which he was appointed) empowered and directed to liquidate, &c. according to the principles of equity and good conscience, in all cases which are not or shall not be provided for by Congress. The answers therefore given by the Superintendent to his questions, are no more than applications of the Act, to the doubts which he had suggested. It is more than probable that if the honorable Assembly of Pennsylvania, had communicated with the Superintendent on this subject, they would not have assumed the same ground of reasoning which they appear to have done.

It is alleged in the said extract, "that certificates given for personal services, wages or hire, are rejected;" in answer to which it can only be said, that if the claimants are officers or persons acting in any of the departments, the certificates ought to be rejected by the commissioner for the State, because such accounts are to be liquidated by the commissioners of the departments respectively; but if other claims have been rejected by the commissioner, he must have been under the influence of some misapprehension.

As the honorable Assembly have, through their delegates, proposed certain resolutions, it will be proper to examine the reasoning which led to that proposition. And first, it alleged, that "if an exact account is really wanted of the specific articles for which any certificate was given, it may be found in the receipts given by the party, at the time of getting his certificate, and that these receipts are in the power of the public, being lodged with the heads of the different departments." Surely such an assertion is somewhat hazarded. Congress have before them full evidence, that many persons, late officers in the civil departments, refuse to account at all. If, therefore, such persons should even possess the supposed receipts, still those receipts are not in the power of the public, nor will they be so until all the States have passed laws similar to those of the State of Pennsylvania. But further, it will on inquiry appear, that when individuals received certificates from public officers, the receipts they gave did not always contain a list of the articles, or account of the services which had been rendered. Certainly, where any fraud was designed, a specification of articles was of course avoided; and in many cases it has been neglected, even where nothing wrong was intended. The idea therefore that the specific articles are contained in the receipts, is as unfounded as that those receipts are in the power of the public.

But supposing the facts were such as they are assumed to be, will it follow, that the officers have in no instance, been guilty of collusion with individuals, and given more than they were worth both for articles and services? And will it not appear, that an exact account of the specific articles is really wanted, and indeed absolutely necessary, for the detection of such abuses? Or if it be supposed that all the inhabitants of Pennsylvania were so honest and so disinterested, as neither to partake in fraud, nor take advantage of negligence, must it also be presumed that the public officers, acting within that State, have in no cases whatever seized the property of individuals and given certificates for less than the value? Or if it be imagined, that the officers and the individuals have been all alike innocent, and that the clamors raised on these subjects are totally groundless as to Pennsylvania, will it follow that such things have not happened in any other State? Or will it be proper to establish different rules for the settlement of public accounts, under the idea of honesty in one State and the want of it in another?

It is however assumed, as a position, that "any frauds which have been committed cannot be detected in any other place, so well as by the commissioners who settle the general accounts, at the heads of departments." But surely it is necessary, not only to the detection of frauds, but even to the settlement of accounts at all, that the commissioners acting in the several States, obtain accounts of the articles before they pass the sums. If, for instance, the public officer should by collusion with the party, make a charge of double the sum actually due for any article, can a deduction be made after the sum has been passed to the individual by the state commissioner? If the officer should omit to charge himself with articles purchased, can this be proved, when only the money certificate is produced against him? If the officer paid, by a certificate, the nominal sum for articles purchased, a year before, will this appear in such manner as to prevent him from taking all the benefit of the depreciation? If, for instance, he purchased to the amount of two hundred thousand dollars, when money was at two for one, paid in certificates when it was at four for one, and carried the articles to account at a reasonable specie value, viz. one hundred thousand dollars, and if the certificates be now liquidated at their value, viz. fifty thousand dollars, would he not be gainer of the like sum of fifty thousand dollars merely by the depreciation? It is also asserted, "That the holders of certificates are subjected to many inconveniencies from this delay, and that after coming from the remote parts of the State, and having a liquidation of their certificates refused, they depart with murmurs and discontent." If holders of certificates came from remote parts of the State, and the Act of Congress of the 20th of February, 1782, intended to afford relief, becomes thereby a source of distress, it must arise either from the ignorance of the people themselves, or from a want of attention in the commissioner; for by the Act it is ordained, "that the commissioners respectively give public and early notice of the times and places of their settling, and the districts within which they settle accounts, that as well the public officers as private individuals, may have an opportunity to attend." From the whole scope and tenor of the Act, as well as from the express words of this particular part, it appears clearly to have been the intention of Congress, that the commissioner should mark out convenient districts in the State, take some proper position in each district, and then give such early public notice of the place and the district, as that claims arising from transactions within that district might be brought in and adjusted, and both the public officer and the private individual concerned in the transaction, have an opportunity of attending.

As the honorable Assembly have marked out a different mode of settlement from that which has been adopted, it may be proper to take a general view of the present and of the proposed plan, so as to discover the inconveniencies resulting from each, and thence determine which ought to be preferred. Under the present plan, the first step of the commissioner is to mark out some particular spot, with a convenient surrounding district, within which the parties may attend, without the waste of time and the expense of long journeys. The next is to give early public notice thereof. Supposing then the time to have arrived, which he had specified in his advertisement, and a claimant to appear, the first question to be solved is, whether that claimant be one of those whose demands are to be adjusted by him, or whether it is the business of a commissioner of one of the departments. Supposing the former, the next object of inquiry would be, whether any and what services or supplies were rendered by the claimant to the United States, and if any were rendered, then what was the real value at the time and place of rendering them. Every kind of evidence exhibited in support of each point is then to be examined, the officer who is said to have received the articles is to be heard, if he contest the claim, and, finally, the commissioner being in the vicinity of the place, with opportunity to learn both the acts done and the characters of the agents, must decide according to equity and good conscience, where no express provision is made by an Act of Congress. If this decision be in favor of the claimant, the business of the commissioner is to give a certificate for the full value of the articles and services, and then to charge the proper officer and department, not with so much money, but with the specific articles and services, for the due application whereof account is to be rendered to the commissioner of the department.

A duty of the State commissioner, in the course of this business, will be to discover and detect as much as possible the frauds which have been committed, and transmit proper evidence, as it may arise, to the commissioner of the department. In cases, however, where the decision is against the claimant, it will be proper still to return to the commissioner of the department a statement of the claim, that if it should be found to be credited to the public, in the accounts of such department, the party may meet with redress at a future period. The inconveniencies attending this mode are, that possibly some just claims may be finally rejected from the want of sufficient proof, and that some honest claimants may be put to trouble and difficulty in supporting their claims.

The proposed plan appears to be shortly this, that the commissioner shall liquidate every certificate which may be tendered to him in specie value. If, however, the restriction implied in the Extract, by the words "that no delay be given to any certificate granted by an officer who has settled his public accounts," &c. be made, viz. that the liquidation of such certificates be suspended until the accounts of the officer who gave them be settled, it is humbly conceived that such liquidation can never take place; because, as the public have assumed the debts of their officers, it is impossible to settle the accounts of those officers, until the amount of their debts be known; those debts forming a charge against the officers in the same manner as the moneys advanced to them from the public treasury. The settlement of the officers' accounts must, therefore, ultimately depend on the settlements made with individuals, and therefore this restriction must be rejected or the whole plan prove abortive.

The proposition of the honorable Assembly may then be examined and considered as of the effect which is just now stated. And if that proposition be adopted, the commissioner sitting in one corner of the State and examining claims and certificates brought from two or three hundred miles distance, without the slightest attention to the value of articles for which money is claimed, will be exposed to every kind of imposition. Certificates will be counterfeited, pretended depositions will be produced, fabricated accounts will be delivered, vast sums will of course be acknowledged as due to whoever may please to demand them. The officers will (and very justly too) refuse to account for such sums, the frauds which they will detect in claims allowed by the State commissioners will cast a cloud even upon the just claims, and the commissioners for the departments will for that reason be unable to insist on any. Thus the officers will be empowered in their turn to render such accounts as they think proper. So that on the whole, the public debts will be greatly and unnecessarily accumulated, and a precedent will be established to sanctify every improper act which may hereafter be committed in times of confusion.

These are public inconveniencies, and from a comparison of the two plans one important question arises, shall the public property be given away, and the country be taxed for the purpose of paying moneys not justly due; or shall individuals who have claims on the United States be obliged to validate such claims by sufficient evidence? Surely the honorable Assembly of Pennsylvania will not, cannot hesitate, in deciding this question. All which is humbly submitted.

ROBERT MORRIS.

Office of Finance, November 5th, 1783.

TO JOHN ADAMS.

Office of Finance, November 5th, 1783.

Sir,

I am honored with your Excellency's favor of the 28th of July from Amsterdam, for which I pray you to accept my acknowledgements. I am perfectly in sentiment with you, that it is best to avoid government interference in the affair of our loan. If there were no other reason I should not like the demand of grateful acknowledgement, which would be erected on that foundation. We hear enough already of our national obligations, and I most heartily wish for my own part, that we could at once acquit them all, even to the uttermost farthing, for I seriously believe, that both nations and individuals generally prove better friends when no obligations can be charged nor acknowledgements and retributions claimed on either side.

I am also very strongly in opinion with you, that remittances from this country would greatly uphold our credit in Europe, for in mercantile life nothing vivifies credit like punctuality and plenteousness of remittance. The plan you propose to obtain them, might also be attended with some good consequences, but there are impediments in the way of its success, which it would be tedious to detail, and which indeed you could not be so perfectly master of without being on the spot. I shall not, therefore, go into that matter at present, and the more especially as we have now good hopes, that the plan of Congress will be adopted by the States. Last evening I received advice, that Massachusetts had acceded, and I have a double pleasure in announcing this to you, as they certainly would not have come in but for the sentiments contained in your letters.

Let me then, my Dear Sir, most heartily congratulate you on those virtuous emotions, which must swell your bosom at the reflection, that you have been the able, the useful, and what is above all other things, the honest servant of a Republic, indebted to you in a great degree for her first efforts towards an independent existence. That you may long live to enjoy those pleasing reflections, which flow from the memory of an active and beneficial exercise of time and talents, is the sincere wish of your most obedient and humble servant,

ROBERT MORRIS.

TO MESSRS WILLINK & CO.

Office of Finance, December 31st, 1783.

Gentlemen,

Upon the 21st of October I valued on you to the amount of seven hundred and fifty thousand guilders as expressed in my letter of the 23d of that month, and in the beginning of this month having received your letter of the 4th of August, and concluding as well from the contents of that letter as from the actual state of things here, that you would be successful in the succeeding months, I gave notice to the gentlemen to whom I had sold the bills mentioned in my said letter of the 23d of October, that I should discount their notes, which has been done accordingly. Thus the United States are become liable to pay any damages, which those gentlemen may sustain, if, in consequence of delay their bills may meet with, those drawn by them in consequence of a reliance on your funds should return protested. The United States will also be liable to the damages, which might arise on my further bill drawn in favor of Mr Haym Solomons for one hundred thousand guilders on the 12th instant, and mentioned in my letter of that date.

Under these circumstances, Gentlemen, and unable to judge what delays the loan may have met with from the causes you have mentioned, or from any other, being also uncertain how far it may have been or may be accelerated from other causes, I must request that in any case whatever all my aforesaid bills may be accepted. You will see from the enclosed copies of letters to the receivers of Virginia and South Carolina, that I am taking measures to put you in cash for any advance which such acceptances may render necessary. These measures are intended with the double view of providing for the interest of your loan or of reimbursing your advance. In the former case you will be in cash before the interest falls due, but at any rate you shall be secured. The disbandment of our army having brought our expenses within the revenue, there remains an excess, which cannot fail to reimburse you even if the loan should totally fail. For I cannot suppose, that you will be much more than half a million in advance, and I am certain that the excess of taxes for current services would easily pay this sum in four or five months, and I am equally certain that I could by anticipation bring that excess forward to your relief at an earlier period if necessary.

My request to you, therefore, Gentlemen, is this, that you accept my bills at any rate, whether you have funds or not, and whether you have or have not the probability of receiving them. If the payments fall due before you find relief, take such measures to obtain money as shall under a view of all circumstances produce that effect with the least loss to the United States. Of these measures I leave to you the entire disposition, and I promise you on the part of the United States to reimburse all losses, interests, costs, and charges, which may accrue thereupon. You will be pleased, Gentlemen, to give me very early notice of your situation, and to point out very particularly the sums which may be needful, and also the articles of this country, which will probably form the best remittance, and on my part I promise to take the earliest measures for making you such remittances. I shall confidently rely on your efforts, and remain with perfect respect, Gentlemen, your most obedient servant,

ROBERT MORRIS.

TO MESSRS WILLINK & CO.

Office of Finance, December 31st, 1783.

Gentlemen,

Your advices of the 26th of September, that the success of our loan with you had been greatly impeded by reports, propagated on the part of Great Britain, did not a little surprise me. In my letter of the 12th of this month, I have given you some slight sketch of the mutiny of a few troops near this city, and this perhaps may be among the circumstances, which have militated and been magnified to our disadvantage. But as I did not then, so I do not now think it worth while to mispend time by the history of a trifling thing, which has no importance in itself, and which might derive some by treating of it seriously. It has always been the common trick of the British and their adherents to assert, that America had neither government, armies, nor resources. To all which, I answer, that America has established her independence. Far be it from me to attempt an injury to the credit of any other nation; on the contrary, let those who would rather trust England than America, make the experiment, and if it prove beneficial, let them rejoice; if it prove otherwise, I shall pity the sufferers.

I should not, indeed, be greatly surprised, that our credit were impaired in any of the absolute monarchies of Europe, because that such governments have no proper ideas of the sacred regard, which is due to pecuniary engagements taken by the public, and because the people have no conception that the government should be unable to command all the wealth of its subjects. But in your country, it is an every day's experience, that determinations of the States-General should meet with obstacles in the different Provinces, and this has been precisely our case in the business of finance. No State has insinuated, that our public debts ought not to be paid; nor indeed does any individual dare to hold up that idea. But differences have arisen about the mode of making provision for them, and such differences of opinion necessarily cause delay. It is, however, with much satisfaction, I inform you, that the different States are coming in one after the other, and I have strong expectations that all of them will soon accede to the plan of Congress, which I formerly transmitted. The government of this country has been vigorous enough to carry us through the war, and it would be strange indeed, if it should all at once become weak in that moment of peace, when other governments usually acquire strength.

For my own part, I cannot believe that such ideas will take place among sensible men; but on this occasion, I will show to his Excellency, M. Van Berckel, the letter I am now writing, and desire him to write candidly to you and to others his sentiments as to the state of this country, whether the people are in peace, obedient to the laws and the government in due force, or whether we are a prey to discord, and our country the theatre of tumult and confusion.

I am, Gentlemen, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 13th, 1784.

Sir,

The Secretary of Congress has transmitted to me the petition of John Cowper, with an order to report thereon. I must, on this occasion, pray leave to observe, that this, with a variety of other similar transactions, depends on the adjustment of the accounts of the Secret and Commercial Committees of Congress. In a letter of the 12th of August last, I had the honor to observe, that those accounts "were far from being inconsiderable, either as to their nature or magnitude; that they were involved with others, and had extended themselves to different parts of the United States, and to Europe, and the West Indies; that they were more connected with the Marine Accounts than with any others; and that the settlement of them was highly necessary." I took the liberty, also, then, to suggest the propriety of submitting the investigation of those accounts to the commissioner for settling the Marine Accounts, or of appointing a special commissioner for that express purpose.

Since writing that letter, the Commissioner on the Marine Accounts, having been obliged in the course of his business, to look at the Commercial and Secret Committee Accounts, has not only discovered some balances due to the United States, but has reported other matters, which show in a strange point of light, the necessity of examining and settling those accounts. I think they could be more easily, speedily, and effectually settled by that gentleman, than by any other, and therefore the submitting of them to him, might be eligible in an economical point of view.

I come now, Sir, to observe, which I am sorry to do, that my report on Mr Cowper's case must necessarily be suspended, until after a reference to the commissioner appointed to adjust the accounts of the Secret and Commercial Committees, I shall be possessed of such a state of facts, as will enable me to report with propriety.

Before I close this letter, I must also observe, that as the accounts in question originated with, and were under the superintendence of members of Congress, it is a kind of duty, which Congress in their political capacity owe to themselves, to trace the applications of money through those channels with the same attention, which has very properly been applied to other public expenditures.

With perfect respect and esteem, &c.

ROBERT MORRIS.

TO MESSRS LE COUTEULX & CO.

Office of Finance, January 13th, 1784.

Gentlemen,

I some time since drew a bill for two hundred and fifty thousand livres, on Messrs Wilhelm and Jan Willink Nicolas, and Jacob Van Staphorst, De la Lande and Finje, merchants at Amsterdam, in favor of Mr John Ross. This bill was drawn on the credit of the loan opened under the direction of those gentlemen, and in consequence of flattering accounts of its success, which I had just then received. I find that Mr Ross has remitted this bill to you, and is actually drawing on the credit of it. Some late advices from Amsterdam give me reason to apprehend the possibility of a nonpayment of this bill, and therefore I am now about to make to you the request of a favor on the part of the United States. It is, Gentlemen, that you would place this sum to the credit of Mr Ross at the day when the bill falls due, whether it be paid or not, and whether in the whole or only in part, taking the bill up for the honor of the United States. You will then immediately give me notice of the sum, which, by this means, your credit is advanced for, and I will take care to make you remittances for amount of the principal and interest of that sum, nor will I quit my office until you are fully repaid. At the same time you will probably also find some relief from the further produce of the loan; as the causes which impeded its progress during the months of August and September, have long since been removed. And indeed I still expect, that the success of it will enable the punctual payment of Mr Ross's bill, and only write this letter out of prudence and for the greater caution.

You will observe, Gentlemen, that I have two objects in making this request, one is to save the credit of the public, which might materially suffer by the coming back of this bill, and the other is to prevent the payment of twenty per cent damages, which would be the eventual consequence, over and above the private injury, which Mr Ross would sustain in his personal credit. If, Gentlemen, you have a sufficient confidence in me and in my country, you will comply with this request, provided your own convenience will in anywise permit. If you have not that confidence, I must lament it as a misfortune.

I am, Gentlemen, yours, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 16th, 1784.

Sir,

I do myself the honor to transmit to your Excellency the copy of a letter from David Sproat; I should not trouble Congress with it if the supplies mentioned had been advanced to persons taken in the service of the United States. As it is I should suppose an express appropriation of money to this purpose to be necessary; Congress can best judge whether that be proper, but if I were to express an opinion, it would be, that the payment of such debts is the most effectual mode of providing for those disastrous accidents, which the citizens of America are liable to in common with the rest of mankind.

I am, Sir, respectfully, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 21st, 1784.

Sir,

I do myself the honor to enclose the extract of a letter of the 10th instant, from the Quarter Master General. The latter part of it, referring to a matter which he has long since brought before Congress, I shall not take the liberty of meddling with.

In the former part, he alludes to a letter of the 27th of October last, in which he had stated to me the claims of individuals for damages done by the army. Instances are mentioned peculiarly distressing, and of a nature to require compassion while justice demands for them somewhat more. I did not on the receipt of this letter address Congress on the subject of it, because the making any particular provision for the cases of individuals, is laboring to very little purpose, and by stilling the cries of one only raises the clamors of hundreds. This indeed was the remote cause of the Quarter Master's letter, for the resolution passed in the case of Stephen Moore, had given activity to the complaints of all those who knew of that resolution, and labored under similar grievances. But a stronger reason for not troubling Congress on the subject, was that I had already brought it before them in a letter of the 12th of August last. The following is an extract from that letter.

"There is, however, among the commissioner's questions to me, one which Congress alone can answer in the affirmative; viz. are charges for buildings, fences, wood, &c. damaged or destroyed by Continental troops or militia, to be allowed? Considering the extent and magnitude of this object on the one hand, and on the other, what serious injuries have been sustained by some individuals, the question is equally intricate and important. No answer has yet been given, although not unfrequently agitated, as the journals will testify. Whether Congress will leave it on the present footing, or order such damages to be allowed, or (making a distinction between wanton devastations and necessary impressure) leave the officer to account in one case and the public in another, or finally whether they will take a course between all these and order the accounts to be liquidated and reported, but the balances not to be finally allowed and certificates given, until their further order, are questions which it is in their wisdom to determine by that extensive view of things which they possess."

I shall take the liberty to observe to your Excellency, that claims of this kind become daily more urgent. The people recovering by degrees from their despondency as to the settlement of their old accounts and beginning to feel some hope of eventual payment, and of consequence a firmer reliance on and belief in the justice of the United States, naturally look forward from the measures already taken to those which prudence and equity may still further dictate. Some provision ought certainly to be made; but I must repeat that the object is not only great as to the pecuniary amount; but extensive as to place, persons, claims and circumstances. The caution hitherto preserved was therefore wise, but it can no longer be adhered to, because the idea held up to every applicant, was that after a termination of the war, and not before, provision should be made.

I take leave also, further to observe to your Excellency, that there is a material distinction to be made, even among such of these claims as are otherwise similar, according to the times in which the respective causes of them may have originated, as whether they were previous or subsequent to the commencement of the year 1782; claims for supplies obtained during the latter period, ought certainly to be considered as within the appropriations of money demanded for the current service, the quotas of which yet remain unsatisfied. In order then that this matter may come before the United States in Congress in such regular form, as that some decision may be made, I shall submit to their wise consideration the following Act.

Whereas, the late wasteful and expensive war, is now by the blessing of divine Providence finally terminated, and whereas, divers citizens of these States have during the course thereof sustained various injuries and damages, as well by the armies of the United States as otherwise, by the operations and effects of the war. And whereas, no provision can as yet be made for the just relief of the sufferers, neither can it be determined to whom such relief may be due. And whereas, it is the indispensable duty of every Government, in all things to the utmost of their power, to do what to right and justice may appertain. Be it therefore ordained by the United States in Congress assembled, and it is hereby ordained by authority of the same, that each and every of the commissioners who are or may be appointed in pursuance of the resolutions of Congress of the 20th day of February last, be and they hereby are authorised and directed to receive within the States, to and for which they are or may be appointed respectively, all claims and demands made by individuals for damages done to or sustained by them within such State, during the late hostilities and by reason thereof; whether the same have been committed and done by officers or soldiers, acting under the authority of Congress, or by the enemy. And be it further ordained by the authority aforesaid, that the said commissioners do require and receive such evidence with respect to each and every such claim as they shall judge fitting and proper according to the nature and circumstances of the case respectively, and where due evidence is produced in support of such claims, that they do liquidate and adjust the same according to equity and good conscience. Provided always, that the said commissioners shall not give to the claimants any certificates or other evidence of such adjustment. And be it further ordained by the authority aforesaid, that the said commissioners respectively do from time to time make return to the Superintendent of our finances, of the amount of each and every such claim, and the time when the same arose, whether previous to the 1st day of January, 1782, or subsequent to the last day of December, 1781; specifying clearly in the said return the nature of every claim in such full and ample manner, as that when the same shall be laid before the United States in Congress, for their investigation, they may be thereby enabled to make such further order in the premises as to right and justice may appertain.