CONTENTS (continued 9)

Before I close this letter, I will trouble your Excellency one moment longer to assign my reasons for extending this provision to the case of damage done by the enemy. The investigation does by no means imply any recompense from the United States. But if there should be cases where such recompense is proper, the materials on which to judge will by this means be prepared. The object however is to ascertain the damages done by the enemy, which will in this way come forward, so as that an account thereof can be made out with exactness to answer any purposes, which future negotiations with Great Britain may render necessary. To this I would add, that the expense of the business will be so trivial as not to be worthy of consideration, when compared with the advantages to result from it.

I have the honor to be, with perfect esteem, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 24th, 1784.

Sir,

The re-establishment of peace having at length given room for the proper investigations, it becomes in me a duty of public justice to mention to Congress the situation of those persons in Canada, or out of it, who are creditors to the United States for property furnished or services rendered in that country. To these may perhaps be added those who have claims for damages sustained. Persuaded, as I am, that unless some general arrangements be taken on this subject, it will occasion a great expense of time and money, together with the loss of reputation, I think economy as well as justice calls for a due attention to the subject in the present moment.

I submit then the following ideas, not as being a perfect plan, but merely as hints to be perfected by the wise care of the United States. And first, it might be proper, that a commissioner were appointed to go into Canada for the purpose of examining into the several claims above mentioned, with power to liquidate the same, and to give certificates of the amount. If it be a desirable thing that justice be done, it is a necessary thing that the inquiries be made on the spot. There and there alone, can the due investigations take place, so as to prevent either the public or individuals from being defrauded. Besides it will not cost more to maintain a commissioner there than it will here, and many who have been both distressed and oppressed are confined to that spot by their circumstances. It may also appear to be of some importance, that by doing justice to these people unsolicited we secure their affections; which will prevent Great Britain from using them hereafter against us. Neither will it escape the attention of Congress, that such a commissioner may transmit useful intelligence. But this being rather in the Department of Foreign Affairs, I shall not enlarge on it.

A natural question will probably arise, as to the means of payment. This may be answered by applying a like question to the case of other public debts. But I conceived that another, if not a better answer may be given. If a new State were set off about Detroit, and the lands sold to all inclining to purchase, with permission to pay in certified Canadian debts, not only as specie, but even at a premium of five per cent, the lands would pay the debts, and the United States would gain more than the amount of the payment by the very act of making it. For an equal if not greater number of persons than the creditors in Canada, would become settlers from that country, and bring with them property beyond their purchase money. Nor is that all; such State would became a barrier of infinite importance. It would secure eternal peace with the Indians, and it would secure the Indian trade. For it would soon place the principal traders at that spot in the character of American citizens.

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

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, February 2d, 1784.

Sir,

I have delayed answering your Excellency's favor of the 4th of last month, in the hope that I might have been able to announce to you the having sent off the duplicate of the definitive treaty. Hitherto no opportunity has offered. But as Colonel Harmar has sailed, and probably Lieutenant Colonel Franks, I am not so anxious on that subject as I have been.

With sincere esteem, I am, &c.

ROBERT MORRIS.

TO MESSRS LE COUTEULX & CO.

Office of Finance, February 12th, 1784.

Gentlemen,

Previously to my letter of the 13th of January, I had received yours of the 10th of September and 18th of October. In one of my said letters I requested you to come under acceptance for Mr Ross's bills, although my public bill in his favor should not be accepted. But Mr Ross assures me that he has not yet drawn, and promises that he will not draw on the credit of that bill until my advices from Europe shall warrant it. So that my precaution in this respect was unnecessary. Neither is that bill to be protested if not paid when it falls due, but it is to be held by you for Mr Ross's future orders. Those advices which I have lately received, are far from being agreeable, and it is probable that my letters written to Dr Franklin in consequence of them may induce him to apply for your friendly aid to prolong the time of payment of some bills, which I had drawn on the credit of that loan, and which to my great surprise the negotiators of it were not in cash to answer. Should he make any such application, Gentlemen, I am to request that you will come in with your extensive credit, to support that of the United States; and you may rely that I will take care, by proper and speedy remittances, finally to absolve your engagements.

I have this day given to the house of Peter Whitesides & Co. my bill on you, (number ninetyseven) payable at ninety days' sight, and for three hundred thousand livres. I am to desire your acceptance of that bill, which I have drawn, to prevent, if possible, the protest of bills drawn by that House in consequence of one of my said bills on Amsterdam; to put you in cash for that sum, I have purchased already seven hundred hogsheads of tobacco, now lying ready for shipment at Alexandria in Virginia, and directed farther purchases, as also the chartering of vessels to carry it to Europe. I shall make you a shipment of from seven to eight hundred hogsheads as soon as the weather will permit, for at present all our navigation is shut up by the ice. This tobacco shall be shipped to your order at L'Orient, and I think, that with every allowance for delay, it must leave the Chesapeake by the 1st of April at farthest, and will arrive within two months after the bill shall have been presented. The sales of it will therefore put you in cash to answer the bill. But to render the matter as safe as possible, you shall have early advices, so as to make the insurance, which will answer the bill should the tobacco fail. After all, Gentlemen, it is possible that you may be in advance for a short time. But I make not the least doubt, that you will cheerfully go into the proposed operation, at present necessary to the United States, and which (that necessity out of the question) is in itself among the best kinds of commercial transactions. In order, also, to place you more perfectly at your ease, I agree to make good any expense, which may be incurred, by negotiations to prolong the payment, should it be inconvenient for you to make the actual advance, and should such advance become necessary by accidents of the sea or other unforeseen circumstances. But at all events my said bills must be honored.

With esteem and respect, &c.

ROBERT MORRIS.

TO MR GRAND.

Office of Finance, February 12th, 1784.

Sir,

The last letter which I have received from you is of the 12th of September, and in that you have left a blank for the amount of funds received from Amsterdam, and inform me, that you expect again to apply for more, as Mr Barclay could not tell what sum he should be able to pay you nor when. My letters from Messrs Wilhelm and Jan Willink, Nicolas and Jacob Van Staphorst, De la Lande and Finje, announce to me a sum remitted to you beyond the idea which I had formed of your wants; and the consequence of it is, that bills I had drawn on them remained unprovided for. Not having received letters from you in so long a time, it is impossible for me to guess at the exact state of your accounts; but if Mr Barclay has placed in your hands the sums which I expected he would have done, it appears to me that the United States must have been considerably in advance to you, at the very moment when my bills were in the critical situation above mentioned. I shall not, however, draw any conclusions on this subject before I receive those advices from you, which I am in the hourly expectation of. As I do not know whether any effectual measures have yet been taken to provide for the bills, which I had drawn, and which the Houses in Amsterdam were not in cash to answer, owing to a sudden failure of the loan intrusted to their management, I have written to Dr Franklin on that subject, and am now to request your aid in the business, so that time may be given for the arrival of those remittances, which I am making to provide for the consequences, should the loan continue unproductive. On this occasion I confidently rely on your efforts, and I persuade myself, that the credit of the United States, so long preserved in Europe, through doubtful and dangerous events, will not now be suffered to expire for the want of a very little timely aid and attention.

I am, Sir, &c.

ROBERT MORRIS.

TO MESSRS WILLINK & CO.

Office of Finance, February 12th, 1784.

Gentlemen,

On the evening of the 9th instant I received your letters of the 20th of November and 1st of December. The intelligence contained in these letters, so far as concerns the loan under your direction, and the bills which I had drawn upon the credit thereof, is very far from being agreeable.

The tenor of your last letter, renders it necessary for me to obviate the constructions put on my conduct in drawing to that extent. And this is easily done, for it appears by your letters now before me, that the total of those bills for a million, did not exceed the funds actually in your possession, by above six hundred thousand guilders, and if the second expedition of tobacco be deducted, that excess cannot be considered as going beyond five hundred thousand. Now, Gentlemen, I have already told you, that Mr Grand's drafts exceeded my expectation; but we will put this out of the question for the present, as I shall write on that subject to him; but you will observe, that your letters announcing the decline of the loan did not reach me until the close of the last year; and therefore I could not have calculated on so great an alteration. The occurrences in this country, which occasioned it have never appeared of any consequence to us who are on the spot, although, by exaggeration, they have staggered the minds of people in Europe. You will observe also, Gentlemen, that when my letter of the 1st of October was written, I had not received any letter from you of later date than the 11th of June. The intelligence mentioned in my letters as having come through an indirect channel, was contained in a letter from Mr Adams himself, and your letters written in the months of July and August confirmed that intelligence. All this will appear if you compare our correspondences, and place yourselves in the situation, which the long passage of your letters of the 4th, 11th and 26th of September placed me. The two first of these did not come to hand until a very few days ago, as you will observe that they are not acknowledged until the 9th instant. It has therefore been alike impossible for me to conjecture the hard fate of my bills, or to provide against it by seasonable remittances.

But as I have already mentioned, the sum total of the advance, which those bills could have occasioned would not exceed five hundred thousand guilders, payable in all the month of March, supposing that the loan should produce nothing in the whole winter. By a circuitous negotiation this payment might have been prolonged without difficulty, and you will see that the measures I am taking, even at this late period, would have produced the necessary funds in season. I have not indeed any right to expect, that you would risk so heavy a sum in reliance on me, but if you had done it I should have felt the obligation, and I think my conduct would have been such as to convince you that the confidence was not misplaced.

Under the present very disagreeable circumstances, and not knowing whether Dr Franklin has complied with your proposals, I cannot take such decisive steps as I otherwise might. I enclose, however, a copy of the letter which I have written to him, and I shall proceed to make remittances, as soon as the weather, which now shuts up our navigation, will permit. The advices which I shall receive from Europe, while ships are lading, and which I daily expect, must govern me in the consignments; which is the reason that I can say nothing positive on that subject.

If Dr Franklin has complied with your proposals, you will of course have accepted my bills to the extent of the million guilders. If he has not, it is possible that my letters to him may still arrive in season to prevent the protests for nonpayment. If however this should not be the case, I wish you to call on those who held the bills, and tender payment, on return of the bills, or on giving an indemnity against them; in which case you will also pay the costs of protest, interest which may have accrued, and the like. If they will not do this, you will then be pleased to transmit notarial certificates of your tender of such principal, interest and costs; and if your payments are accepted, to transmit immediate accounts thereof.

With respect to the three bills, numbered one hundred and ninetyone, one hundred and ninetytwo, and one hundred and ninetythree, dated the 21st of October, for two hundred and fifty thousand guilders each, I have agreed with the Houses to whom I sold them, that they shall still lay to be accepted or not, as may hereafter be determined, and in the meantime the United States are to pay the interest of their advances to me until they can reimburse themselves, or are repaid by me, whichever shall eventually happen. The bill number one hundred and ninetyfour, dated the 12th of December last, for one hundred thousand current guilders, I purchased and remitted on my own private account, and have given orders that it be not returned to this country; so that on that subject you may also be at ease. I shall receive on my private account the interest of the forty thousand dollars paid for this bill, on the same principles with which I have settled for the other bills just mentioned. And by the way, you will see how great was my confidence in the success of your operations, when I have involved my own private fortune in the purchase, not only of that bill, but also of four hundred thousand guilders out of the million. All which was done because the demand for exchange on London being greater than on your city, I bought those bills, remitted them, and drew on my private account to replace my funds, merely with a view to facilitate the public service. In addition to the bills just mentioned, there is one which I request may meet due honor; it is number one hundred and ninetyfive, dated the 2d instant, payable at six months' sight, and for fourteen thousand three hundred and nineteen current guilders. This bill was drawn to replace bills drawn above two years ago at six months' sight on the American Minister at Madrid and protested for certain circumstances attending the negotiation of them; wherefore I was under the necessity of replacing them with twenty per cent damages, by a bill of equal dignity.

I am, Gentlemen, &c.

ROBERT MORRIS.

TO MESSRS WILLINK & CO.

Office of Finance, February 12th, 1784.

Gentlemen,

I am to acknowledge the receipt of your favor of the 14th of October. My letter to you and the other Houses, will convey sufficiently my sentiments as to the disagreeable consequences occasioned by the ill success of our loan. I shall not here dilate upon that subject, which, for the present, I can only lament; for I agree, Gentlemen, with you, that urgency on your part would rather damp the spirits of monied men than increase their exertions.

I see clearly, that if it were possible to convey an adequate idea of the wealth, extent, and power of this country, it would do a great deal towards exciting the favorable attention of mankind. But this is a very difficult thing, for the British Ministers, and even their Generals in the country, with all the pains they could take, and all the intelligence they could procure, were extremely ignorant of our resources. This is among the reasons why they pursued the conquest of America full three years after every sensible man in it saw that the thing was impossible.

However, as you desire an account of our products, I will refer you to a very unexceptionable testimony, that of the British Ministers themselves, in a pamphlet lately published under the eye of the Court, by Lord Sheffield; in which the writer attempts to prove that we must trade with them whether they treat us well or ill. To show this, he gives certain facts, which, at least, prove that the British are our worst customers, so far as the sale and consumption of our produce is concerned. He proves, also, that if they have any advantage over others, it is what your countrymen may have in an eminent degree over them; I mean the securing a great part of our trade by giving credit to our solid mercantile houses.

But to return from that digression to the principal object of this letter, viz. the actual and probable resources of America. Let it be remembered, that a century ago the place from which this letter was written was an unlimited forest; that the whole State of Pennsylvania did not produce enough to support five hundred men after the European manner, and that every other part of America was, a little earlier or a little later, in the same situation. But now this very city is worth more than all the public and private debts put together, which we owe to Europe.

M. Van Berckel has convinced me, Gentlemen, of your good will, and zealous endeavors to promote the interests of America. And I flatter myself that not only his representations, but my own conduct, will convince you of the just sense I entertain of those endeavors.

With esteem and respect, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, February 12th, 1784.

Dear Sir,

Three days ago I received, in a letter of the 1st of December from Messrs Wilhelm and Jan Willink, Nicolas and Jacob Van Staphorst, De La Lande and Finje at Amsterdam, a copy of their letter to you of the 30th of November. Enclosed you have a copy of my answer of this date. I flatter myself that you will not have suffered the public credit to be ruined for want of an engagement to the amount of so small a sum as might be necessary to avoid the danger to which it was exposed, and I wait in the anxious expectation of hearing from you, what arrangements have been taken on this subject, as I wish to conform my measures to them. If, contrary to my expectations, some unforeseen causes should have induced you to decline so necessary an engagement, I hope this letter may arrive in season, and induce you to do it.

You will observe that a copy of this letter is transmitted to the Houses in Amsterdam, but I have not sent a copy of the enclosed letters to Mr Grand and Mr Barclay, which are left open for your perusal. I have not time now to go particularly into the estimation of their accounts, but I am almost persuaded that there is, between them, and ought to be in the hands of the former before this time, about half a million of livres belonging to the United States. But in the present exigency, I shall not reckon on this sum, nor on the second expedition of five hundred hogsheads of tobacco, which are, I presume, before this hour arrived at Amsterdam. I shall calculate on a deficiency of five hundred thousand guilders, and prepare remittances as fast as proper articles can be purchased to that amount; because the surplus may be well disposed of to answer the interest of the Dutch loan, which falls due in June next.

If, therefore, you can adopt any measures by which, in circuitous negotiations, the time of payment can be prolonged, you may rely on the arrival of such remittances in the months of June and July at farthest, as shall fully answer the sums which may then fall due, and as I have told the gentlemen in Amsterdam, the advices which I may receive will govern the direction of those remittances. I shall give immediate orders for the purchase of one thousand hogsheads of tobacco, and as that amount is completed, I shall extend it according as circumstances may require.

The season has been so intemperate, that the navigation of the Chesapeake is to this hour shut up by the ice, but that cannot last much longer, and therefore I have good hopes that some capital shipments may depart before the 1st of April; and should the urgency of the case require it, I can draw at long sight on the consignees, and transmit the bills, which will enable a farther negotiation, if necessary. The means of making remittances are now, thank God, in my power; for the amount of taxes exceeds that of the expenditures, which last are reduced almost to nothing; and as the revival of commerce must increase the means of paying taxes, I have no other solicitude for the event than what arises from the want of time to make due arrangements. This want, I persuade myself you will remedy, if you have not already provided against it. And you may rely, that any engagements you may think it necessary to take, shall be most punctually complied with by me.

With unfeigned esteem and respect, I have the honor to be, yours, &c.

ROBERT MORRIS.

P. S. Since writing the above, it occurs to me, that there is (particularly on the present occasion) a propriety in transmitting to you the best account in my power of the situation of things, as to the funding of our public debt. I say the best in my power, for I know not what is done southward of Virginia, no mail having come from thence in upwards of six weeks, by reason of the inclemency of the weather, which greatly impedes our intelligence from every quarter. New Hampshire, Massachusetts, New Jersey, Pennsylvania, Delaware, Maryland and Virginia, have adopted the plan recommended by Congress. I am assured that New York and Connecticut will adopt it very speedily, and I am told, on good authority, that Rhode Island will come in as soon as the example of the other States is communicated. It is in consequence of my conviction that the plan will soon be agreed to by all, that I have published an advertisement of the 9th instant, a copy whereof is enclosed.

R. M.

TO B. FRANKLIN.

Office of Finance, February 13th, 1784.

Dear Sir,

I have written to you, under yesterday's date, on a very interesting subject; and I will now add something farther, which I did not choose to place in that letter, as a copy of it is transmitted to the Houses in Holland. And, first, I will give you an account of my situation, as accurately as possible, in order that (seeing the whole state of my engagements, and the means of fulfilling them) you may rest at ease under the operation I have requested, and which I must now most strongly urge and entreat you to engage in.

My present actual engagements are threefold, viz., first, general engagements for the public service not yet satisfied, including therein the notes issued by me, which remain in circulation; secondly, my bills of exchange unpaid; and, thirdly, my debts to the national bank.

The first of these it is difficult to ascertain with exactness, for I take into the account all payments to be made for past services and the like, and I set against it sundry sums to be received, and the public goods which are yet to arrive. It cannot be expected, therefore, that any great precision will take place in this estimate, but from the clearest insight I have, the amount is rather under than over one hundred thousand dollars.

The second stands thus. I drew for a million of guildders, of which, calculating the extent, not more than one half remains unprovided for, as I have observed in my letter of yesterday. This half may be considered as of the value of two hundred thousand dollars. Besides this sum, I have drawn three bills of two hundred and fifty thousand guilders each, and one of one hundred thousand guilders, for which I have received three hundred and forty thousand dollars; but as I have agreed that those bills shall not be protested, they are not to be carried to the account of bills of exchange.

My debt to the national bank is the above sum of three hundred and forty thousand dollars, obtained from them by discounting notes received for the bills of exchange, and which notes they will continue on interest, until taken up by my payments here, or by my moneys raised on the drafts of the parties who gave them, should my bills be eventually paid in Europe.

In this calculation you will perceive, that I make no mention of any moneys which I suppose to be in the hands of Mr Grand, because, for the greater certainty, I will on the present occasion consider them as equal to answer for contingencies only. And on the other hand, I will not calculate the interest to arise on moneys borrowed in Europe, because although that object may be stated as of the value of from one hundred and fifty to two hundred thousand dollars, yet to answer it, I place first, the general system of funding the public debts, and secondly, whatever small sums may arise on the Dutch loan, supposing it to have no success worth counting on for other purposes.

Hence, therefore, we will state the account as of the first of the present month thus,

Balance due for past services,$100,000

Due for bills of exchange drawn,200,000

Due to the national bank,340,000

————

640,000

Add for contingencies,10,000

————

$650,000

We come now to the means of making payment; after rejecting all hope of any material aid from the Dutch loan. And they are as follows. The taxes for the last four months, ending the 31st of January, amounted to somewhat more than two hundred thousand dollars. Towards these taxes, the States of Delaware, North Carolina and Georgia, have as yet paid nothing. Neither is there anything paid by the State of South Carolina within the account of those months. The States of New Hampshire, Connecticut, New York, Maryland and Virginia have paid very little, in proportion, to their present ability, and the other four States will all, by the extension of peace and commerce, be in better circumstances for revenue than they were before.

From the States of New York, Maryland, Virginia and South Carolina, I expect to derive very considerable relief; particularly from the first, by a proposed sale of confiscated lands. However, I shall (after deducting from the probable increase of the revenue so much as may pay the current expenditures) calculate the surplus and the proposed sales of lands, as amounting to no more than two hundred and fifty thousand dollars, by the end of next September. This then will place the sum unprovided for at the amount of four hundred thousand dollars, and the fund to pay it at fifty thousand dollars per month. That fund will discharge the first article above mentioned, by the end of March; and the next thing to be provided for, is the two hundred, to answer bills of exchange drawn.

The intended provision for that object is as follows; I shall borrow immediately one hundred thousand dollars of the bank, and direct purchases of tobacco and rice, partly with cash, partly on credit, and partly by bills drawn on me. By this means, I can with that one hundred thousand dollars have the purchases made in all March and April, so that the shipments to the required amount of two hundred thousand dollars will take place, some in March, some in April, and all of them I hope by the end of May. The taxes during April and May, will pay the purchases on credit, and the bills drawn on me; and the taxes in June and July will pay the hundred thousand dollars due to the bank. By the end of September, therefore, I may calculate on a full discharge of all these debts.

If the loan should meet with success, my relief will be more speedy; but you will see, Sir, from this detail, what is most important to you, viz; that the funds will be placed in Europe during the months of June and July, to pay the half million of guilders, which I desire you to provide for. I suppose the mode of circuitous negotiations to be very familiar with your bankers, but I would hint at the following as practicable. Suppose the Houses in Amsterdam to draw in the month of March on Mr Grand, at sixty days' sight; Mr Grand might in May draw, on a good House in London for his full reimbursement, and the House in London might, in like manner, reimburse on Messrs Le Couteulx & Co. by which time the remittances would arrive. Or the time might be still farther extended, if the House in London should reimburse on Messrs Wilhelm and Jan Willink, and they on Messrs Le Couteulx. Or the last bills might perhaps be drawn on Mr Grand instead of Messrs Le Couteulx. However, supposing that the credit of those gentlemen might be useful, I have requested them to aid your operations, should you think proper to ask their aid.

And now, my Dear Sir, let me before I close this letter, entreat of you most earnestly, that the public credit just beginning to revive be not totally lost for a want of an effort, which is but nothing in comparison with what we have already experienced, and passed through with success.

With very sincere esteem, yours, &c.

ROBERT MORRIS.

TO THOMAS JEFFERSON.

Office of Finance, February 25th, 1784.

Sir,

Your letter of the first instant reached me but a few days since, and I seize the earliest moment in my power of replying to it. I shall reply also in this letter to that with which I was favored from Mr Williamson, and pray both him and the committee that they will excuse it; assuring them that it proceeds from a desire of collecting all I have to say on the subject under one point of view.

It was and is my opinion, and has frequently been expressed, that the calls of Congress should be confined to the arrears of former requisitions, so long as it can be possible out of such means to defray the current expenditures. And although it has been necessary to comprise a part of the expenditures of 1782 and 1783 within that debt, for the interest whereof permanent funds have been required, I thought it my duty to oppose any relinquishment of the existing requisitions. I will not repeat the reasons, because the grand committee appear to be of the same opinion. It was evident, that if those requisitions should produce more than the current expenditure, the surplus would easily be applied towards discharging a part of the debt, which arose during the years 1782 and 1783.

Enclosed, Sir, you will find the required amount of taxes received to the end of last year. But since that period, there have been farther receipts, and I must observe, that among these are some small sums collected in New Jersey and Pennsylvania on the requisitions for 1783. But these are nevertheless carried, in the treasury books, to account of the unsatisfied requisitions of 1782.

Confining myself to round numbers, because I presume the committee would rather receive information materially right in season, than wait for greater accuracy at the expense of moments, every one of which must be precious, I take leave to mention, that the arrearages on the requisitions of 1782 and 1783 exceed eight millions, and that one of those eight millions would pay the unfunded expenditures from the end of 1781 to the commencement of the current year; by which term of unfunded expenditures used for want of a better, I mean such part of the public debt as arose in that year, and which not having been carried to the account of the public debt, but remaining due on my official engagements and anticipations, must still be provided for out of the requisitions. There will remain, therefore, at least seven millions for the service of this year, and payment of a part of the former debt, should the collections be so rapid as to pay off the required million beyond the immediate expenses, which I confess there is but little reason to expect. It will, however, be useful, that pressing application be made to the States, to complete their quotas, under those requisitions; for if only one hundred thousand dollars were employed in payment of our funded debt, before January next, in addition to the provision for paying the interest, we might then consider the independence of our country as firmly established. I shall dwell no longer on this subject, which will, I am sure, be better matured by the committee, than by any of my reflections. But I am bound to mention, Sir, that, from the slowness and smallness of the collections, our finances are in a more critical situation than you can easily conceive; such that I dare not leave this place, although I am very desirous of paying my respects to Congress at Annapolis.

As to the vote of September, 1782, requiring one million two hundred thousand dollars for payment of interest on Loan Office certificates, &c. I have no official information of what has been done by the States; some among them have, I believe, directed the issue of certain other kind of certificates for payment of that interest; but as the acts do not conform to the resolution of Congress, I cannot know what conduct the Loan officers have pursued. It is much to be lamented, that the States individually are not sensible how necessary it is to conform to general regulations; on every occasion, some local convenience is consulted, and a deviation made, which appears to be of little consequence to the general system, and which is nevertheless important, and becomes injurious to the very State by which it was made. The idea of an officer dependent only on Congress, amenable only to them, and consequently obedient only to orders derived from their authority, is disagreeable to each State, and carries with it the air of restraint. Every such officer, therefore, finds the weight of public opinion to contend with. But how in a continent so extensive, can that simplicity of administration, which is essential to order and economy, be introduced, unless such officers are not only tolerated, but aided by the legislative and executive authorities? I will pursue these ideas no further for the present, because I think the opportunity will arrive in which the subject must be considered with more attention.

Enclosed, Sir, I have the honor to transmit an account of the civil establishment of the United States, together with an account of contingent expenses of the several offices. Neither of these is as complete as could be wished, though as perfect as they can at present be made. You will doubtless observe, that all the offices are not completely filled, and that all the contingent expenses are not brought into the account. Among the latter omissions is the contingent expense of our foreign ministers, which will, I am persuaded, be far from inconsiderable. I have thought it proper, also, to transmit to the committee an estimate of the sum at which our civil establishment might be fixed; and on this estimate I make the following general observations. 1st. That the articles of contingencies therein mentioned, are carried out on conjecture, and therefore the sum total may be somewhat more or less, according to circumstances. 2dly. That the numbers, titles, and salaries of the several officers being entirely in the disposition of Congress, they will add to or diminish from them as they may think proper, wherefore the totals will doubtless be different from what I have stated; and 3dly, that a very considerable part of this expense being occasioned by the old accounts, will cease of itself when those accounts are settled.

I proceed then to observe more particularly on the expenses of the President's household. 1st. That the present mode is certainly objectionable, as I have frequently had occasion to observe, and which I now repeat with the more freedom, as nothing which can be said will bear the least personal application. My reasons are, 1st. No person not accountable to the United States should be invested with the right of drawing at will on the public treasury. 2dly. Every expenditure ought, as far as the reason and nature of things will permit, to be ascertained with precision. 3dly. A fixed salary being annexed to the office of President of Congress, he will be more effectually master of his own household, and in consequence a greater order and economy may reasonably be expected.

On the expenses of the office of Secretary of Congress, I shall say nothing. The expenses, the duties, and the cares are so immediately under the eye of Congress themselves, that it would be presumption. But I would observe, that to the account of the contingencies of this office, ought to be carried the expense not only of office rent, stationary, &c. but also fuel for Congress, printing of the journals, expresses sent by Congress, and the like.

The chaplains of Congress receive, at present, at the rate of four hundred dollars each. If the office be necessary, it ought to be so supported as that the officers may be entirely attached to Congress, and accompany them in their changes, or fix at their permanent place of residence; whichever of these modes shall eventually be adopted, I have ventured to state their salaries at one thousand dollars each; perhaps I am still under the proper sum.

On the expense of the court of appeals I can say nothing, because I know not whether the continuance of it be necessary. But I should suppose, that if three gentlemen, well versed in the law of nations, were, from the tenure of their offices to be always with Congress (so as to be consulted and employed when the public service might require it) such an establishment would be continued, if the expense did not exceed the utility.

When all our accounts shall be settled, our debts either paid or properly funded, and things reduced to a peace establishment, the expenses of the Office of Finance may perhaps be reduced about two thousand dollars, by taking away the salaries of the assistant and one clerk, and adding somewhat to that of the secretary; under the present circumstances I do not think the number of the officers can be lessened. The salary of the Superintendent has often been mentioned as very high. This is a subject on which I can speak with great plainness, and but for the disagreeable situation of things above mentioned, I should speak also without any personal reference. I humbly conceive, that the object of Congress is what it certainly ought to be, an enlightened economy. On the powers of the office I will say nothing here, because it would be misplaced. The expenses of it are and ought to be great. Until we can create new beings we must take mankind as they are; and not only so, but we must take them as they are in our own country. Now it is evident, that a certain degree of splendor is necessary to those who are clothed with the higher offices of the United States. I will venture to say, that without it, those officers do not perform one of the duties, which they owe to their masters; and I can say, also, from experience that a salary of six thousand dollars does not exceed the expense of that officer. I speak for my successor, or rather for my country. Neither the powers nor emoluments of the office have sufficient charms to keep me in it one hour after I can quit it, and I did hope that period would have arrived during the next month. Perhaps it may. If a man of fortune chooses to run the career of vanity or ambition, he will naturally wish the salaries of office to be low, because it must reduce the number of honest competitors. I say honest competitors, because those who would make a property of public trusts will always be indifferent as to the amount of salary, seeing that with such men it forms the smallest pecuniary consideration. When a liberal salary enables a man, not rich, to live in a style of splendor without impairing his private fortune, the show he makes and the respect attached to him really belong to the country he serves, and are among the necessary trappings of her dignity. Now it has always appeared to me that true economy consists in putting proper men in proper places; to which purpose proper salaries are a previous requisite. Here I shall pause, because the reflection occurs to my mind, that perhaps this, with many other propositions equally true, will never be duly felt until an opposite conduct shall lead to disagreeable conviction. If indeed it were my object to enforce this point, I should go no further than the past experience of Congress, and perhaps there might be room for some argument on the actual state of the Office of Foreign Affairs. The expenses of that office, as well as of the War Office, require only a reference to what has been just mentioned. The expenses of the Treasury Office cannot be curtailed, for before the present business can be lessened, that of our debt must come forward, and there must be some persons to manage it, although the great machinery at present employed will be unnecessary.

For reasons of evident propriety, I say nothing on the establishment of our foreign servants, only recommending, that as little as possible be left to the article of contingencies. Because, if, on the one hand, it be just to compensate extraordinary and unexpected expenses for the public service, it is proper, on the other hand, to reduce within the closest limits of certainty, which the nature of things can permit, the amount of those burdens which the people must bear. And it ought to be remembered, that contingencies are generally speaking a kind of expenses, which though justified by necessity are unprovided for by express appropriation, and which therefore ought as much as possible to be avoided.

The last article is, expenses on collection of the revenue; and it is much to be lamented, that this is so heavy; not indeed the sum proposed in the estimate, which is trifling, but it will be found on examination, that the expense of collecting taxes in this country is greater than in almost any other; a serious misfortune, and which would certainly be provided against if the officers of the collection were nominated by authority of the United States; because then those principles of suspicion, which have already done so much and spoken so loudly, would soon fix upon a grievance, at present overlooked, because it forms part of the system favorable to withholding instead of collecting taxes. It has already been observed, that officers of the nature of receivers are necessary in the several States; it is here repeated, and experience will prove it. At the same time the committee will please to take notice, that the Loan officers are not included in the estimate; the reason of which is, that they can answer no purpose but the expense of the appointment, and the complicating of a system which ought to be simplified. An officer whose duty it is to urge collections, may do good if he performs that duty, but when it is a question of paying, means may be adopted, which will be more effectual, less expensive, and infinitely less liable to fraud. Not to mention that these means may be such as to avoid long and intricate accounts. In fact (and I hope, Sir, you will excuse the observation) there seems to have existed a solicitude how to spend money conveniently and easily, but little care how to obtain it speedily and effectually. The sums I have proposed as fixed salaries for these officers, may at first sight appear large, but if the office is to be at all useful it must be in the hands of a good man who can devote to it his whole time and attention, and who will neither by his private distresses nor by the scantiness of his stipend, be prompted to betray his trust, or abuse the confidence reposed in him.

Before I close this letter, I will take the liberty further to mention to the committee, as a principal means of avoiding many disagreeable discussions relative to the present object, that the establishment of a mint, and due regulations of the post office, would soon supply the funds necessary to defray the expenses of our civil establishment. The former of these is entirely in the power of Congress, and I should suppose, that the States could have no reasonable objection to leave the revenue, which might arise from the second to the disposition of Congress for that purpose.

I pray you to excuse me, Sir, for troubling you with so long a letter, which I will not add to by making an apology; but assure you of the respect, with which I have the honor to be, &c.

ROBERT MORRIS.

PROPOSED EXPENSES OF THE CIVIL LIST.

President of Congress, his household,$10,000

His private Secretary,500

——— $10,500

Secretary of Congress,3,000

Two Clerks,1,000

Messenger,300

———4,300

Contingencies; fuel, stationary, rent. &c. 750

———5,050

Chaplains of Congress, 2,000

Three Judges of Appeals, at 2250 dollars each,6,750

Contingencies during their sittings,150

—— 6,900

———

24,450

Superintendent of Finance,$6,000

Assistant,1,850

Secretary,1,000

Clerks, three,1,500

Messenger,300

———$10,650

Contingencies, 750

———11,400

Minister of War,6,000

Two Clerks,1,000

Messenger,300

———7,300

Contingencies, 500

———7,800

Minister of Foreign Affairs,6,000

Two Secretaries,2,000

Messenger,300

———8,300

Contingencies, 500

———8,800

Controller of the Treasury,1,850

Auditor,1,000

Six Clerks,3,000

———5,850

Register,1,200

Four Clerks,2,000

———3,200

Treasurer,1,500

Clerk,500

———2,000

Messenger, 300

———

11,350

Contingencies, 1,000

———12,350

———

64,800

Two Foreign Ministers, at $10,000 each,20,000

Five Residents, with Consular Powers, at 6,000,30,000

Contingencies,10,000

——— 60,000

———

Permanent expense, 124,800

Temporary Expense.

A Commissioner of accounts here, salary1,500

A Commissioner for settling old accounts in

Europe, his clerks, contingent expenses,

&c. suppose $10,000

Two Clerks,1,000

Contingencies,250

———

2,750

Multiply by18

———49,500

———59,500

———

$184,300

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 17th, 1784.

Sir,

Permit me, through your Excellency, to call the attention of the United States to the situation of my department. During the last year, engagements were made to a very considerable amount for payment of the army. This payment was effected by notes which fell due the end of last year, and the commencement of this. The funds at my disposal were unequal to the discharge of them. I was, therefore, under the necessity of drawing bills on the credit of the loan in Holland. The information I had received from the gentlemen who had the management of it, gave me hopes that funds sufficient to discharge those bills were in their hands; for in the months of April, May, June and July, they had received and distributed obligations for one million one hundred and thirtysix thousand florins. But from causes, which will readily suggest themselves to Congress, that loan, which had taken a rapid start at the peace, began to decline in August and stood still during all November. It has happened, therefore, that bills to the amount of one million three hundred and twentyfive thousand florins, equal at the current exchange to five hundred and thirty thousand dollars, are protested for non-acceptance. Should they come back protested for non-payment, the consequences will be easily imagined.

For about a month past I have been in the expectation, that this disagreeable event would happen, and whether it will or not is yet undetermined. My last advices from the gentlemen who have the management of the loan are in a letter of the 22d of December; by which they tell me, "we are sorry to be obliged to repeat, that since our last till the present moment, our prospects are not very much increased; however, we are not quite without hopes, and have determined, if we cannot do otherwise, to sacrifice some more premium to the undertakers, which if we do, we will charge to the account of the United States. We think ourselves fully authorised to do this by the circumstances; since without the bills going back, it is certain that, besides the disappointment and the discredit it would give to the government bills, the expenses attending the returns will be much more burdensome. We have almost no prospect of getting the money without such a sacrifice, and only hope it will answer your views." Enclosed you have the account current with those gentlemen, as sketched out by the register for information; by which it appears, that they had in their hands a balance of three hundred and fortyseven thousand seven hundred and seventy current guilders on the 31st of October last, and by the subordinate account, number five, it will appear, that my bills exceed that balance by one million five hundred and thirteen thousand two hundred and twentynine florins; but from this a deduction is to be made for some tobacco shipped to them, the account of sales whereof is not yet come to hand. They have, however, accepted of my bills beyond the amount of their funds, and still there are to the value of one million three hundred and twentyfive thousand florins protested for non-acceptance. In order, however, that Congress may possess as full a view of things as possible, I will suppose, for the present, that by making a sacrifice of premium the funds for discharging these bills may be obtained. I must also mention here, to obviate what might be suggested, that the remittances to Messrs Le Couteulx and Mr Grand will be found accounted for in their accounts, but time will not permit going into all those details at present.

Supposing then the funds to be obtained for payment

of these bills, the interest falling due the beginning of

June next, will amount to two hundred thousand florins,

equal at the current exchange to$80,000

By the enclosed state of payments

just received from Mr Grand it will

appear, that on the 5th of November,

there is payable at his House

the sum of one million six hundred

thousand livres, equal at the current

exchange to320,000

———

$400,000

Thus you will find, that on the best supposition which can be made, there is to be paid in Europe during this year four hundred thousand dollars, over and above the salaries of foreign Ministers and their contingent expenses. There is also to be paid the further sum of one hundred thousand dollars, due in this country on engagements taken for the public service during the last and present year, besides notes in circulation, which may probably be absorbed by the taxes, between this and the 1st of May next. Thus there is a deficiency of half a million to be provided for by the taxes from the 1st of May, to which must be added sundry debts of the last year not yet adjusted, and which cannot therefore be estimated, but which may amount to between one and two hundred thousand dollars more. And to all this must be added the current expenses, which Congress will best be able to ascertain.

This, Sir, is a view of things upon the fairest side, but if the bills noted for non-acceptance come back, a scene will then be opened, which it is better for you to conceive than for me to describe. The delay of the States in passing the laws for granting revenue to fund our debts has left the above mentioned sum of four hundred thousand dollars totally unprovided for; and I cannot see the least probability that this general concurrence will be obtained in season to make that provision. I beg leave, therefore, to suggest the expedient that the produce of the requisitions for 1782 and 1783 be partly appropriated to that payment, and that the money be replaced from the proper funds when obtained. But whatever mode may be adopted, Congress will doubtless be struck with this truth, that unless the States can be stimulated into exertion, and that speedily, everything must fall into confusion. I will not pretend to anticipate the evil consequences. Having stated the facts I have done my duty.

I must, however, pray a moment's indulgence to mention, that the accounts of the last year would have been rendered by this time, but as I have not relinquished the hope of being able to quit this office soon, I have rather desired to be able to complete all the accounts of my administration. It will give me infinite pleasure, if, when I have the honor of presenting to Congress these accounts with my commission, I shall find them in circumstances as prosperous as those under which I accepted it were adverse.

I am, Sir, &c.

ROBERT MORRIS.

TO JACOB READ, MEMBER OF A COMMITTEE OF CONGRESS.

Office of Finance, March 30th, 1784.

Sir,

I am to acknowledge the receipt of your favor of the 14th instant; which should have been done sooner, but that I have been much engaged, and indeed the accounts you ask for, and which are enclosed, required time to be completed. I shall expect the papers which relate to Mr Gillon by the first good opportunity.

With respect to the report of the committee, I cannot presume to say anything about it, unless it should be officially referred to me, which indeed would seem to be the regular mode of proceeding in matters of that sort, but I am far from desirous of such reference, and therefore if Congress are prepared to decide, I am perfectly content. So long as I am in their service I shall endeavor to carry their measures into effect.

I am perfectly in opinion with the committee, that the arrears should be demanded before new requisitions are made; and if I were to hint anything like advice, it should be that Congress state clearly the evils which arise from their inability to enforce the payments.

The desire that Loan officers may issue certificates I have long known, and I know also, that it originates in a desire to elude actual by making nominal payments. However, it occurs to me that a mode might be fallen upon to conciliate this object with the public interest. I consider the Loan offices as a very unnecessary burden on the community, and I think they ought to be got rid of, for I am sure that the whole business might be better done at one tenth of the expense, besides the advantage of leaving no unsettled accounts behind. If the States will act with rigor and honesty on the present occasion, there would be no difficulty, I should suppose, in negotiating with the several banks to make actual effective payment. But you may be sure they will not undertake anything unless they have a solid reliance on the revenues. Now this is precisely what Congress ought to desire, for if they are prevailed on to cause the issue of paper money by their officers, the States may as heretofore neglect the means of redeeming it, and then all the blame falls upon Congress. Indeed they would well deserve it. For why need they attempt to accommodate the States in the manner proposed? Think you the Legislatures will be more solicitous to save the public faith than to quiet the clamors of their own citizens? For my part I am persuaded that they will not, and I cannot but think that an address to the public creditors, charging the fault where it is justly chargeable, would be more useful than mere temporary palliations of their distress. On the whole I think it best for Congress to adhere as much as possible to great outlines, and to avoid details. Those should be left to the Minister of Finance. If he is an able and honest man he will do well, and if the thing be well done all is right. If he be unequal to his duties, the blame of wrong measures will fall upon him. But if Congress do his work, then unless their work be more than humanly perfect, they will undoubtedly compromise themselves. I say these things to you in a conviction of the truth of what I say, and with a perfect indifference as to any personal considerations. If I can get out of office I will, and if I cannot I will never ask Congress for a confidence they do not wish to repose.

I am very much obliged, my Dear Sir, by your kind and confidential communication, and reply to it, as you see, with full confidence. If I were in a situation to converse with you on the state of our affairs, I should be glad to do it, but the limits of a letter will not permit the saying what is necessary on so extensive a subject. I find that Congress are in the habit of passing resolutions, which relate to my department, without a reference; I am sorry for it, because some of them are inconvenient to me, and others will I fear be found dangerous. However, they are the best judges of what is for the public interest, and therefore I shall avoid as much as possible all remonstrance.

I am, very sincerely, your most obedient, &c.

ROBERT MORRIS.

TO THOMAS JEFFERSON.

Office of Finance, April 8th, 1784.

Sir,

I have received the letter which you did me the honor to write on the 30th of last month, for which I pray you to accept my thanks. The circular letter, a copy of which you enclosed, has my entire approbation, and I pray leave to assure the committee, that while I am favored with the firm support of Congress, I shall not shrink from the difficulties, however great, with which we are threatened.

The idea of applying to the banks for aid, is in itself a good one, but the present moment is unfavorable. The establishment of so many banks instead of aiding credit, and facilitating operations, will for some time to come have a contrary effect, and it is not without great difficulty, that they will each collect a capital sufficient to support its own operations. The struggle to get such capital, places these institutions in a degree of opposition to each other, injurious to them all. Without going more minutely into that part of the subject, I take the liberty to observe further, that as we had no mint established when the treaty of peace took place, and consequently no proper regulation of our coin, a great part of it was immediately exported, and the country being now laden with foreign goods, and having but little means of payment with produce, still farther exportations of coin will take place, especially if by the return of the public bills so great an additional remittance becomes necessary.

I shall leave all observations upon this matter to the good sense of the committee, and proceed to mention further, that if the abilities of the several banks were ever so great, we cannot rely much on their inclinations, unless their respective directors could clearly see a prospect of speedy reimbursement from the taxes. It is, therefore, a matter of much delicacy, to make any proposals to them on the part of government; for which and for other evident reasons, I pray leave to suggest the propriety of leaving all such negotiations to the Superintendent of Finance. That officer has already sufficient powers to do everything, except granting premiums for the loans proposed, and with respect to them, I am clearly of opinion, that none ought to be given; but if in the last necessity that step should be unavoidable, he may then apply for authority. This I conceive to be better than vesting him beforehand with such extensive power; for the committee will be pleased to observe, that as the laws of the several States have fixed the rate of interest, premiums on loans, which in their effect raise the rate of interest, would be exceptionable as well as odious. It is true, that the situation of affairs is very disagreeable, but it is better to bear up and struggle hard against present difficulties than lay the foundation of future evils.

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

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, April 29th, 1784.

Sir,

I do myself the honor to enclose for the consideration of Congress the extract of a letter from the commissioner for settling the accounts of Connecticut, together with the copy of a receipt which was enclosed in it, and the original of which is returned to the commissioner. Before I make any observations on this extract I take the present opportunity of explaining a part of my conduct, which has I know given some offence.

Previous to the acceptance of my office I was naturally led to examine the ground on which I should be brought to act. I clearly saw that great confusion had been introduced into the public affairs, not merely from defects in former plans, but from a great negligence in those to whom the execution had been committed. For although the general arrangements were in some respects defective, as is the case with all human institutions, yet those who were in any degree culpable had taken care to charge the fault on such deficiencies by way of excusing themselves. Congress will perceive at a single glance, that where boards or committees, perpetually changing, and whose members are not accountable, are charged with the superintendence of a general system, and the subordinate agents rendered accountable to them, it is vain to expect that steady, severe, and attentive administration, which can alone secure the public welfare. Experience had shown, that this radical evil produced shameful negligences in the executive departments, the mischiefs of which are felt at the present hour. Affairs were so complicated that it was hardly possible to say who was in fault; and while every individual officer took care to excuse himself the blame was placed on Congress; from whom of all others, if the future interests of America be consulted, it ought to be removed. The expense which attends the settlement of the old accounts is the least mischief which has resulted.

This view of our situation rendered it necessary for me to stipulate, that I should be invested with ample powers, and induced, also, the determination to avoid as much as possible the employing of persons who had public accounts unsettled. My subsequent experience has shown, that if this determination had been universally adhered to, it would have tended much to the establishment of that regularity, which has constantly been kept in view. From frequent information I was convinced, that many of the loan officers had not conducted their business according to the modes prescribed, and had indeed neglected even to make those returns, which had been from the beginning required. This was an additional reason for placing the receipt of the continental taxes in other hands. And when it was considered, that these gentlemen would be constantly pressed for the payment of interest, that which was necessary in the case with some became proper with respect to all. This conduct, as has been already mentioned, gave offence to some, but as no regular accusation has ever been brought I shall go no farther into a defence of the measure; my object being as well to point at future operations as to explain the past.

I will not go into a detail of the modes formerly prescribed for keeping the Loan Office accounts. Suffice it to say, that very few of the officers have conformed to them. The instructions for settling the accounts are before Congress, and the enclosed extract shows that they cannot be effectually adhered to; and consequently that a principal object in the settlement of the accounts will not be effected. I pray leave, therefore, again to bring to the attention of Congress a report made on the 3d of September from the Office of Finance. Not that it is desired that the United States should adopt the resolution there proposed, but merely that it may serve as a groundwork on which to establish some Act which may prove effectual.

It is perhaps a favorite object to keep up the establishment of the Loan offices, but I must on this occasion repeat what I have so often declared, that it is an expensive and a pernicious establishment, without being attended with a single good effect to compensate the mischiefs. I shall not, however, trouble Congress with my reasons on that subject, because I think it my duty to bear witness against them. I know the progress of all reformations to be slow, and that experience is the most certain teacher.

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

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 6th, 1784.

Sir,

In consequence of the resolutions of the 28th of April, and 2d of May, 1783, I have made the various engagements then in contemplation, and any late letters to Congress will show that some of those engagements to the amount of three hundred thousand dollars still remain to be fulfilled. Congress will be pleased also to observe that their late arrangements with respect to foreign officers, form an object of about fifty thousand dollars, including the grant of ten thousand to Baron Steuben. Notwithstanding this and the constant demands for current service, I am not without hopes that if all the bills on Holland be paid, I shall in the course of the summer be able to quit my station. Having been informed (though not officially) that Congress intend to adjourn in the beginning of next month, I am humbly to request that they would in such case be pleased to take eventual arrangements for administering their finances. And I am the more solicitous on this subject, lest through the want of such arrangements, some injury should happen to the public service when I retire.

I hope Congress will indulge me also in mentioning, that no committee has been appointed to inspect into the conduct of my department. It would give me particular pleasure that measures were taken on that subject also.

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

ROBERT MORRIS.

TO THE MARQUIS DE LAFAYETTE.

Office of Finance, May 19th, 1784.

Dear Sir,

By the opportunity which your friend, Mr Constable, offers, I now acknowledge the receipt of your several favors of the 26th of December, 10th of January, and 9th of March last. Accept, I pray you, of my sincere thanks for them all. I also enclose for your perusal the copies of my letters to Congress, of the 16th of April and of this date. To these I add their resolutions of the 3d instant, which will I hope prove agreeable to you. If I have not transmitted the copies of or extracts from your letters to Congress so soon as they were received, you must attribute it to circumstances which I, on the spot, could best judge of, and which is not worth while to mention.

In pursuance of what I have just now said to Congress, I shall proceed to request your exertions for establishing a free port at the Isle of France or Bourbon. You will easily obtain sufficient information in Europe to direct your applications on this subject, and Mr Constable will, I think, be able to give you some useful information as to the consequences of it upon this country. I confess, that it appears to me to be the probable means of establishing at that port, the most extensive and useful commerce with India, that has ever yet existed. To France and to America it will be most particularly useful, because we shall trade freely and without risk to such port, and you will undoubtedly furnish us with all those articles of India goods, which we should otherwise go in search of to India, or procure from other nations. This will form an object of near twenty millions of livres annually, or calculating both the export and import cargoes, it will amount to about thirty millions, and consequently cannot be less than five millions clear advantage to France; and if it be considered, that this is so much taken from her commercial rival, we may estimate it as being an object of ten millions annually. Such being the importance of it with respect to America, what may we not calculate on for the other countries, who may incline to trade thither? But besides this great commercial consideration, there are others of a political nature; such as the increase of your seamen; the advantage of a place of arms, marine arsenal, &c. in that critical position. These I shall not dwell upon, because I do not wish to go out of my depth.

Returning then to a commercial view of the subject, I consider it as almost certain, that America would find it more advantageous to trade with that port than to go on to India; and hence I draw one very strong inference, that we should not only be by that means brought into a closer political connexion with France, but that France would hold a much larger share of all our other commerce, than she would without such an establishment. I will not trouble you with my reasons, because I think they will not escape you. But before I close my letter I must observe, that although this commerce may and undoubtedly will yield you a revenue, yet there is danger in beginning with revenue too soon. Let the port be first made free to all the world, and let good and intelligent commissioners or intendants be appointed to transmit information of the commerce carried on. If there be no duties, there will be no false entries; and thus in two or three years the Court will be able to act with their eyes open; and in the meantime the enriching of your own subjects is always of sufficient consequence, even if revenue be put entirely out of the question. If on the other hand you only free the port by halves, and leave it subject to duties and restrictions, the commerce may never take its course that way; and always remember, that the commission received by your merchants from such a commerce is alone of vast importance.

I am, Sir, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF RHODE ISLAND.

Office of Finance, June 21st, 1784.

Sir,

That my official existence has been prolonged to the present moment arises from the dilatoriness of the States in providing means to discharge those engagements, which I had taken for their benefit at the pressing instance of Congress. I hope your Excellency will believe me when I seriously assure you, that the greatest advocates for a change cannot more earnestly desire my dismission than I myself do. I hope that their sincerity and mine will speedily be put to the trial. They, by granting money, and I by resigning, can best evince that our professions are founded in truth. Thus, Sir, it has happened, that the reasons for granting money to the Union have acquired an additional weight from considerations personal to me, and perhaps in the only way in which I could have given to them any efficacy.

Whatever sinister causes may have been suggested to invalidate my former applications, I humbly hope, that at this period my earnest entreaty to comply with the requisitions of Congress for funding the public debt will be considered as flowing from a conviction, that it is a measure necessary to the peace and happiness of our country. To me it can produce neither honor, nor power nor profit. The advantage I may derive will be common with all my fellow citizens, and I shall share, also, the burden in common with them. But the numerous class of sufferers in whose particular favor that burden is to be sustained, will, I hope, meet with an advocate in every bosom. Justice, policy, humanity, press the measure upon our feelings and reflection; and if it be objectionable, let it be considered how seldom any human plans are formed, to which objections may not be made. Our union, necessary as it is to our existence, is still liable to objections. And government, without which we cannot participate in the benefits of society, will always in something or other give room for clamor and discontent.

I hope, Sir, this application from me will be at least excused. It is the last. It is the general result of what I feel to be my duty. Those who come after me will, I hope, have that influence, which I have not; and succeed where I have failed. But whether they succeed or whether they fail, they cannot more earnestly desire the good of America than I do.

I am, &c.

ROBERT MORRIS.

TO M. DE MARBOIS, CHARGÉ D'AFFAIRES FROM FRANCE.

Office of Finance, August 17th, 1784.

Sir,

I had yesterday the honor to receive your letter of the 15th, by which I perceive that you misunderstood me a little in the conversation alluded to. On that occasion, Sir, I expressed my intention to take arrangements for the payment of four hundred thousand livres, being the interest due in November next, upon the loan of ten million livres, guarantied by his Most Christian Majesty; but I could not have told you that they were actually taken, because that is not the fact. Indeed I did expect, that certain attachments which have been laid upon the property of the United States in France would have been taken off; and that in consequence of orders formerly given, Mr Grand would have received through Mr Barclay the necessary funds. Should this be the case he will pay that interest of course, having already done so last year, in pursuance of a general authority to that effect. If, however, the suspense occasioned by those attachments should cause any delay, the King's Ministers who were long ago informed of them, will doubtless excuse the inconveniences which may result from it. The arrangements now to be formed must be in a double sense eventual, and depend not only upon the fate of the attachments, but also upon the state of those funds, which may be in Europe at the disposition of the United States.

I should be happy, Sir, in the opportunity of satisfying your desire, to be informed of the measures taken with respect to those sums, which the King was pleased to lend, and which (with the interest accruing thereon) are payable at the several epochas specified for the purpose in the conventions made on that subject, between our respective Ministers; but not having received the orders of the United States in Congress, I cannot presume to anticipate what they may think proper to say. I will immediately do myself the honor of transmitting to his Excellency, the President, a copy of your letter; and as I cannot doubt, that both those measures which they have already taken, and those which they may hereafter adopt, must be perfectly consistent with their honor, I shall indulge the hope, that they will meet the approbation of their august ally.

I have the honor to be, &c.

ROBERT MORRIS

TO THE PRESIDENT OF CONGRESS.

Office of Finance, September 30th, 1784.

Sir,

I had the honor of mentioning to Congress, upon the 4th of May, the advices then just received from Holland, and to pray their sentiments upon the loan, which Mr Adams had (upon a view of all circumstances) found it necessary to open. I was the more anxious on this subject, as I saw a probability of the speedy completion of this loan for two millions of guilders, and therefore if not approved of, no time should have been lost in stopping the further progress.

Since writing that letter, I have received the scheme of the loan, and the copy of the obligation, both of which are here enclosed for the inspection and consideration of the United States in Congress. It is probable, that not only this loan, but also the former loan of five millions will both be filled before any determinations of Congress can arrive in Europe; for the concurrence of many States to the measures proposed by Congress, and the resolutions of several legislative bodies expressing their sense of the necessity of enabling the United States punctually and honorably to discharge their engagements have reanimated that credit, which for evident reasons had languished and died away.

The public accounts will sufficiently explain the situation of money matters, and the gentleman charged with the department of the finances will of course furnish such information as may from time to time be required; I shall not therefore go any further into the details of this business, but must express to Congress my opinion of the loan generally; and certainly, if we consider the very untoward circumstances in which it was undertaken, very great praise is due to the persons concerned in proposing, adopting, and pursuing it. This sentiment, which I have constantly felt has not been declared until the present moment, because no suspicion can now arise, that what I say, is dictated by a view to influence their future exertions, seeing that my political existence must be at an end before the contents of this letter can possibly be transmitted.

I have invariably in my official correspondence, (as indeed upon every other occasion, both public and private) expressed the conviction which I feel, that however the several States may, from a difference in local circumstances, differ in their opinions about the mode of providing for public debts, all of them will concur in the just sentiment, that these debts ought to be most punctually discharged. There cannot, therefore, be any doubt, that the proper provisions will be made, and I am grounded in the assertion that when made, the public credit of America will be the best of any in the world, that it will cost less to maintain it by us, than by any other nation, and that considering the infant state of our cultivation in general, and the frontiers in particular, it is of more importance to us than it can be to any other country. It is also a commercial problem, which admits of absolute demonstration, that the punctual payment of interest on our debts will produce a clear annual gain of more than such interest can possibly amount to. So that the eternal and immutable principles of truth and justice, being for a moment out of the question, and stifling those sentiments of humanity, which arise from a view of what the public creditors must suffer, should their dues be withheld, (if indeed it be possible to stifle such sentiments,) still it will indisputably appear to be the interest of the merchant, as well as of the husbandman and mechanic, to pay their just proportions towards discharging the public engagements. For this plain and simple system of common honesty, while it invigorates the springs of our credit, strengthens also the bands of our union, proceeding with equal motion towards the public weal and private prosperity.

That the labors of our great and glorious revolution may thus be crowned by the impartial hand of justice, and the last stone be thus placed in the arch of our extensive empire, is the ardent wish of your Excellency's most obedient, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, September 30th, 1784.

Dear Sir,

This is rather a late day to acknowledge your favors of the 25th of December and 15th of June last, but I have always intended in my acknowledgement of them to close our public correspondence, and I have always been disappointed in my expectation of being able speedily to quit this office. That period, however, so ardently desired, is at length nearly arrived, and while I look back on cares and dangers past, I feel an increased emotion of joy in the prospect of future hopes and expectations. But I cannot review the past scene without strong feelings of gratitude and respect for the able and active efforts, which you have made to support the finances of this country. I would to God that your just sentiments on property and taxation were as fully felt as they must be clearly understood in America; but time is as necessary to mellow the judgment of a country as of a man. Happy indeed shall we be if it produce that effect among us.

I am much obliged by your explanation of M. Chaumont's accounts, which are lodged at the treasury. If any insinuations have been made injurious to you upon your connexion with M. Chaumont, they have not reached me, and I am persuaded that none such can make any impressions which ought to give you pain.

I have not remitted bills for the salaries of foreign ministers, because the resolutions of Congress having varied, and Mr Grand having informed me that he should pay them, I have left it as an account unsettled to be arranged by Mr Barclay. And as I cannot doubt that the attachments will have been taken off, and as I have given Mr Grand a credit on the commissioners of the loan in Holland for four hundred thousand livres, and directed Messrs Le Couteulx to pay over to him a balance in their hands, I have no doubt that he will be in cash for the purpose. I agree with you that a fund ought to be set apart for contingencies, and had I continued, and been supported in my administration, such a fund should certainly have been provided. I am at the same time an enemy to contingent accounts, and therefore I should have urged the ascertainment of every allowance as far as possible, thereby curtailing the account of contingencies. But after all, it cannot be annihilated. Congress have hitherto made no determination on this subject. Indeed it is very difficult, and even almost disreputable for them to make arrangements of expenditure, while the means of expenditure are so shamefully withheld by their constituents. These things, however, will mend, at least I hope so.

I have already said that I expected the attachments laid on the public goods would be discharged. Your letter to the Count de Vergennes on that subject is perfect, and if that minister did not immediately obtain a compliance with your request, I presume it must have been occasioned by some circumstances purely domestic, which we in this country cannot guess at, for certainly nothing can be more astonishing than to find a subject countenanced in arresting the property of a sovereign power in this enlightened age, and in the country, which of all others has been most eminent for a sacred regard to the rights of nations.

From your last letters to your friends, I find that your return to this country is somewhat doubtful; I am therefore disappointed in one of the greatest pleasures, which I had promised myself. But, Sir, in whatever country you may be, and whether in public or in private life, be assured of my warmest and most respectful esteem, and that my best wishes for your happiness shall be clothed with the utmost efforts in my power to promote it on every proper occasion.

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

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, September 30th, 1784.

Sir,

I do myself the honor to enclose for the inspection of Congress a copy of a letter of the 14th of last month from the Marquis de Lafayette; and with it I send the originals, which were delivered by him to me. The unexampled attention to every American interest, which this gentleman has exhibited, cannot fail to excite the strongest emotions in his favor, and we must at the same time admire the judgment which he has shown in the manner of his applications, as well as the industry in selecting proper materials. There can be little doubt, but that his interest at his own Court must always prove beneficial to this country, while the same cordiality shall continue which now subsists between him and the Venerable Plenipotentiary now resident at Passy.

I shall not hazard opinions upon the matters which have employed the attention of M. de Lafayette, as a negotiator from this country to that which gave him birth. It would be intruding sentiments which will suggest themselves. But while I feel the delicacy and perhaps the danger of asking from France the moderation or abolition of particular duties, thereby establishing a precedent for similar requests on her part, I hope Congress will pardon a wish prompted by the general interests of commerce, that the statement of all those duties might be translated and published, for the government of those who may form expeditions to those different ports now opened to us.

I have the honor to be, &c.

ROBERT MORRIS.

ADVERTISEMENT.

Philadelphia, October 11th, 1784.

The subscriber having taken measures to provide for the payment of his various engagements on behalf of the United States, and particularly for such of his notes as may be in circulation, gives this public notice to all who may be concerned therein, that although he be no longer in office, yet those notes will all be duly paid at maturity; and for such payment he hereby pledges himself personally to the holders, and therefore requests that if any attempt should be made to obtain them by any suggestions at less than the specified value, such attempts may be defeated.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, November 1st, 1784.

Sir,

I have the honor of enclosing to your Excellency, and pray you will deliver to the United States in Congress, the commission by which I was appointed Superintendent of their Finances. It gives me great pleasure to reflect that the situation of public affairs is more prosperous than when that commission issued. The sovereignty and independence of America are acknowledged. May they be firmly established, and effectually secured. This can only be done by a just and vigorous government. That these States, therefore, may be soon and long united under such a government, is my ardent wish, and constant prayer.

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

ROBERT MORRIS.

END OF THE TWELFTH VOLUME.

FOOTNOTES:

Transcriber's note:

Variations in spelling, punctuation and hyphenation have been retained except in obvious cases of typographical error.

The cover for the eBook version of this book was created by the transcriber and is placed in the public domain.

Omitted words, shown as blank spaces in the original, have been transcribed as dashes (——) in the following cases:

Page 59: As I am not positively instructed that this loan has succeeded, I do not venture to draw bills on you; but in case you shall be in cash for the United States, which I expect will happen, you will pay to Messrs —— & Co., for account of John Ross, the sum of two hundred thousand livres; to Messrs Le Couteulx & Co., for account of William Bingham, one hundred thousand livres, and to John Holker, for account of John Holker fils, the sum of one hundred thousand. From each of these persons you will take quadruplicate receipts, in the form following; "Received of ——, banker, by order of the Superintendent of the Finances of the United States of North America, on behalf of —— the sum of —— being so much paid by the said States to him, the said —— for which I have signed four receipts, all of this tenor and date. Done in Paris this —— day of —— 178—." You will be pleased, Sir, to forward to me three of the copies by different opportunities.

Page 62: in my letter of the —— last

Page 62: the invoice sent in my letter of the —— last

Page 63: the —— last, because I feel a conviction

Page 66: 1782 is —— dollars, payable

Page 258: by the time Mr —— reaches the Havana

Page 259: that Mr ——'s bills be protested

Page 397: from a tour —— have been making

"... the subject of paying all balances ..."