CONTENTS
Reading edition
OF THE TWELFTH VOLUME.
———
ROBERT MORRIS'S CORRESPONDENCE, CONTINUED.
————
To M. de la Luzerne. Office of Finance, November 3d, 1781,3
Little probability of being able to raise an adequate revenue.—The people are unaccustomed to taxation.—Large sums must be applied to extinguishing the public debt and calling in the depreciated paper currency.—France must be relied on to assist in this emergency.—Important advantages will result to France herself from this step.
To the President of Congress. Office of Finance, November 5th, 1781,8
Relative to the Acts of Congress for raising supplies.—Objections to certain clauses.—Final apportionment of the expenses between the States.
To M. de la Luzerne. Office of Finance, November 6th, 1781,14
Necessity of pecuniary aid from France.
To the Count de Rochambeau. Office of Finance, November 15th, 1781,15
Repayment of money advanced by the Court.—Congratulations on the success at Yorktown.
Circular to the Governors of the States. Office of Finance, November 17th, 1781,16
Transmitting Acts of Congress for raising supplies.
George Washington to Robert Morris. Mount Vernon, November 19th, 1781,17
Payment of the officers of the army.
To the Governor of Connecticut. Office of Finance, November 20th, 1781,18
Accounts between the State and the United States.—The moneys designed for the general service must be paid into the Continental treasury.
Report of a Letter to Don Bernardo de Galvez, made to Congress, November 21st, 1781,20
Settlement of accounts for sums advanced.
To M. de la Luzerne. Office of Finance, November 22d, 1781,22
Pecuniary aid promised by him.—Rate of exchange.—Statement of former grants of his Court.
To M. de la Luzerne. Office of Finance, November 26th, 1781,26
Answer to the Minister's assertion, that he is not authorised to make further drafts.—Moneys advanced to any particular State are not chargeable to the United States.
To B. Franklin. Office of Finance, November 27th, 1781,27
Requests him to communicate this letter to M. de Lafayette.—Confusion of the public accounts.—Account of his efforts to obtain supplies from the States.—Difficulties attending this attempt.—Causes of the difficulties.—Endeavors to settle past accounts, and to procure funds for the public debt.—Prospect as to future supplies in the United States.—Statement of the supplies already furnished by France.—Account of his correspondence with M. de la Luzerne on the drawing of bills by Mr Morris, and the amount due by the French Court.—Disposition of moneys remaining in Dr Franklin's hands.—Languor of the States in providing for the expenses of the war.—Necessity of further aid from France.
To the President of Congress. Office of Finance, November 29th, 1781,57
Enclosing a letter from Mr Jay, declaring his inability to meet the drafts made on him.
To Mr Grand. Office of Finance, Dec. 3d, 1781,58
Informs him of his intention of employing him as United States banker.
To M. Joly de Fleury. Philadelphia, December 3d, 1781,60
Importance of furnishing pecuniary aid to the United States.
To B. Franklin. Office of Finance, December 5th, 1781,61
Impolicy of the purchases in Holland.—Disposition of the loan, if obtained.—Disposition of the Americans towards the French.—Increasing demand for French goods.
To the Governor of New York. Office of Finance, December 11th, 1781,63
Supplies furnished by the State.
To the Governors of North Carolina, South Carolina, and Georgia. Office of Finance, December 19th, 1781,66
Proposing a plan for the payment of the Southern army.—Necessity of a tax law by the States for effecting this purpose.—Answer to the objections against this measure.—Objections to measures compelling the receipt of the notes payable in taxes, and regulating prices.
To the Governor of Rhode Island. Office of Finance, December 29th, 1781,72
Necessity of continued activity on the part of the States.—Necessity of prompt compliance with the requisitions of Congress.
Circular to the Governors of the States. Office of Finance, January 3d, 1782,74
Negligence of certain States to lay the impost recommended by Congress.—Fatal effects of a derangement of the finances.
Circular to the Governors of the States. Office of Finance, January 8th, 1782,76
Establishment of the Bank of North America.—Advantages of the institution.
To the Governor of Rhode Island. Office of Finance, January 14th, 1782,78
Answer to the representations of the Assembly, of their inability to comply with the requisition of Congress.—Necessity of providing funds.—Insufficiency of specific supplies.—Rhode Island manufactures.
To the President of Congress. Office of Finance, January 15th, 1782,81
State of the currency.—Advantages of a general currency.—Use of metals as a circulating medium.—Silver the best money standard.—Utility of coinage.—The decimal ratio is the most convenient.—Plan of a metallic currency.
George Washington to Robert Morris. Philadelphia, January 25th, 1782,95
Proposes to send officers to the New England States, with representations of their deficiencies of troops.
To the President of Congress. Office of Finance, February 11th, 1782,97
Financial embarrassments.—Refusal of several States to comply with the requisitions of Congress.—No prospect of foreign aid.—Measures taken in the Department of Finance.—Advantages of prompt and vigorous measures in the field.—Necessity of requiring men and money from the States.—Proposes a series of resolutions, calculated to accomplish the desired object.—Superior advantages of Continental forces.
Circular to the Governors of the States. Office of Finance, February 15th, 1782,110
No further foreign aid is to be expected.—Necessity of establishing a public credit by proper funds.—Financial distresses.—Necessity of preparations for a new campaign.—Explanation of the system of raising supplies by contracts.—Statement of his proceedings on this system.—The public service interrupted by local and party dissension.—Exhortations to union, energy, and promptness of action.
To the President of Congress. Office of Finance, February 18th, 1782,118
Proposing the appointment of Commissioners for the settlement of the accounts of the Commissary, Quarter Master, Hospital, and the Marine.—Frauds in these departments.
Circular to the Governors of the States. Office of Finance, March 9th, 1782,121
Settlement of public accounts to 1782.
To Mr Grand, at Paris. Office of Finance, March 9th, 1782,122
Intends to draw bills on him.
To the President of Congress. Office of Finance, March 9th, 1782,123
Mismanagement in the purchase of goods in Holland.—Directs Dr Franklin to sell those of British manufacture, and to dispose of the rest.
To the Baron D'Arnot. Office of Finance, March 18th, 1782,124
Prussia may secure a share of the American commerce by opening her ports.—Cannot agree to purchase supplies of Prussian subjects at St Thomas's.
To B. Franklin. Office of Finance, March 23d, 1782,125
Mode of renewing sets of exchange, on account of certain lost bills.
To Oliver Phelps. Office of Finance, March 30th, 1782,126
Advantages of raising supplies by private contracts.—Declines entering into any engagement favoring Massachusetts in the purchases.
Circular to the Governors of the States. Office of Finance, April 15th, 1782,129
Transmitting Acts of Congress recommending the statement of accounts between the United States and the respective States up to 1782.—Importance of settling the quotas and contingents of the States.
To Nathaniel Appleton. Office of Finance, April 16th, 1782,131
Necessity of establishing a public fund.
To B. Franklin. Office of Finance, April 17th, 1782,132
Giving him notice of drafts to be drawn on Mr Grand.
To John Jay. Office of Finance, April 23d, 1782,134
Enclosing a letter to the Secretary of Foreign Affairs.
George Washington to Robert Morris. Head Quarters, April 23d, 1782,134
Appointment of an Intendent to decide on disputes between the army and the contractors.—Expresses his satisfaction with the system of contracts.
To Major General Greene. Office of Finance, April 24th, 1782,135
Inefficiency of the confederacy.—Financial difficulties.—Abolition of partial payments.—Neglect of the States.
To the Governor of Virginia. Office of Finance, April 27th, 1782,138
Enclosing his correspondence with the French Minister on the assumption by the United States of the debt of the State of Virginia, for supplies advanced by France.
To the Secretary of Foreign Affairs. Office of Finance, April 27th, 1782,140
Desires a statement of the expenses of the Foreign Department.
To the Governor of Maryland. Office of Finance, April 30th, 1782,140
Estimate of expenditure for the current year.—Intends to give publicity to the accounts.
To John Wendell. Office of Finance, May 1st, 1782,142
Explaining the plan, objects, and operations of the National Bank.
Report to Congress on a Memorial of the Merchants of Philadelphia. Office of Finance, May 4th, 1782,144
On the subject of convoys for American ships.
To the President of Congress. Office of Finance, May 8th, 1782,145
The French Minister having given notice that no further advances will be made by his Court, it becomes necessary to provide for the payment of the foreign Ministers.—The Minister desires a settlement of the accounts between France and the United States.
Circular to the Governors of the States. Office of Finance, May 9th, 1782,147
Redemption of the old Continental money.
To the President of Congress. Office of Finance, May 10th, 1782,150
Enclosing a statement of American commerce.
Circular to the Governors of the States. Office of Finance, May 16th, 1782,151
The requisitions of Congress inadequate to meet the expenditure.—Neglect of the States to comply with the requisitions.—Fatal results of this neglect.
To the President of Congress. Office of Finance, May 17th, 1782,154
Fatal neglect of the States to raise supplies.—Requests to be advised as to the expedience of sending the preceding circular.—The receipts of the previous five months equal only to one fourth of the daily expense.
To B. Franklin. Office of Finance, May 17th, 1782,156
Desiring a statement of the moneys at his disposal.
To Mr Grand. Office of Finance, May 17th, 1782,157
Transmitting bills on Dr Franklin.
To Mr Grand. Office of Finance, May 18th, 1782,159
The state of commerce renders it impossible to sell bills on France.—Requests him to make shipments of specie.
To Messrs Le Couteulx & Co. Office of Finance, May 18th, 1782,161
Reasons for employing Mr Grand as United States banker.
To B. Franklin. Office of Finance, May 23d, 1782,162
Claims of Beaumarchais.
To the President of Congress. Office of Finance, May 23d, 1782,163
The pecuniary supplies for 1782 have been anticipated.—Amount and expenditure of the same.
To the President of Congress. Office of Finance, May 27th, 1782,165
Enclosing information from the French Minister of the sums advanced by his Court.
Information mentioned in the above Letter,165
To B. Franklin. Office of Finance, May 29th, 1782,167
Claims of Beaumarchais.
To Daniel Clarke. Office of Finance, May 30th, 1782,168
Answer to the charges contained in Mr Clarke's letter.
To the President of Congress. Office of Finance, May 31st, 1782,178
Proposes to bring the accounts of each department under one head.
To George Olney, of Rhode Island. Office of Finance, June 1st, 1782,180
Importance and advantage of laying accurate accounts of the public expenditures before the nation.
Caron de Beaumarchais to Robert Morris. Paris, June 3d, 1782,182
Urging the settlement of his accounts.
Abstracts mentioned in the preceding Letter,184
To George Washington. Office of Finance, June 4th, 1782,189
Financial deficiencies render it impossible to pay the army.
To Edward Carrington, in Virginia. Office of Finance, June 6th, 1782,190
Objections in Virginia to receive Mr Morris's notes in taxes.
To the Secretary of Foreign Affairs. Office of Finance, June 7th, 1782,191
There are no funds to pay either the principal or the interest of the public debt.
To Daniel Jenifer, of Maryland. Office of Finance, June 11th, 1782,192
On the objections of Maryland to the apportionment of the expenses.—Other States entertain the same opinion.—Specific supplies more expensive than specie.
To the Governor of Connecticut. Office of Finance, June 14th, 1782,194
Declining to delay the publication of the receipts from Connecticut.
To James Lovell, of Massachusetts. Office of Finance, June 16th, 1782,195
Reasons for publishing the receipts from the States.
To George Washington. Office of Finance, June 21st, 1782,196
Requesting him to take measures for the payment of the debts contracted by American officers, prisoners in New York.
To the Governor of Rhode Island. Office of Finance, June 26th, 1782,196
Objections to the payment of troops by the separate States.
To George Washington. Office of Finance, June 29th, 1782,197
Disputes between the contractors and the officers of the army.—Reason for providing for the civil list before paying the army.
To B. Franklin. Office of Finance, July 1st, 1782,199
Statement of money advanced by France.—Reasons for preferring a loan to a grant.—Cargo of the Lafayette.
To Alexander Hamilton. Office of Finance, July 2d, 1782,203
Announcing his appointment as Receiver for New York.
To M. Jolie de Fleury. Office of Finance, July 5th, 1782,205
Community of the interests of America and France.
To Mr Grand. Office of Finance, July 5th, 1782,206
Accounts between Mr Grand and the United States.
To the Governor of Maryland. Office of Finance, July 9th, 1782,206
Supplies furnished by Maryland.—Importance of the financial department in the conduct of the war.
To James Lovell, of Massachusetts. Office of Finance, July 10th, 1782,208
Importance of a national credit.—The sums drawn on him may be met by sales of the bills.
To the Governor of Maryland. Office of Finance, July 29th, 1782,210
Specie can be raised for taxes by adopting proper measures.
To the President of Congress. Office of Finance, July 29th, 1782,211
Advantages of loans in cases of extraordinary expenditure.—Different kinds of loans.—Relative advantages of domestic and foreign loans.—Necessity of establishing public credit.—This must be done by funding the public debt.—Amount of the debt.—Impolicy of raising money by loans, without previously providing the necessary funds.—Impolicy of attempting to pay the interest of domestic debts by foreign loans.—The revenue granted must be sufficient for the purpose.—Nature of the revenue.—Advantages of a land tax.—Answer to objections against it.—Poll tax.—Excise.—The collection of the tax.—Appropriation of the revenue.—Funded debt.—Sinking fund.—Answer to the objections against speculations in the funds.—Back lands.—Disputes as to the property and disposition of them.—Manner in which they may be rendered productive.
To the President of Congress. Office of Finance, July 30th, 1782,238
Enclosing estimates for the year 1783.—Necessity of establishing a navy.—Mode of raising the estimates.
To the Governor of Rhode Island. Office of Finance, August 2d, 1782,242
The impost recommended by Congress has been laid by all the States except Rhode Island.—Reply to the objections against passing the impost.—The refusal of Rhode Island suspends the whole operation of the impost.
To Sir Guy Carleton. Office of Finance, August 20th, 1782,248
Exchange of prisoners.
To Alexander Hamilton. Office of Finance, August 28th, 1782,248
Regrets his retirement from the office of Receiver.—Weakness of the confederacy.—Mode of collecting the taxes.
To George Washington. Office of Finance, August 29th, 1782,252
Declares himself unable to supply the army.
To George Washington. Office of Finance, August 30th, 1782,254
Object of the preceding letter.
To the President of Congress. Office of Finance, September 9th, 1782,255
Urging the adoption of measures for raising a loan.
To George Washington. Office of Finance, September 9th, 1782,256
Failure of his resources.
To Messrs Willink & Co., Amsterdam. Office of Finance, September 24th, 1782,256
Intends to draw bills on them.
To Messrs Le Couteulx & Co., Paris. Office of Finance, September 24th, 1782,257
Reasons for desiring that the money of the United States in Holland should be sent by the way of the Havana.
To B. Franklin, John Adams, and John Jay. Office of Finance, September 25th, 1782,259
Transmitting Acts of Congress.
To John Adams. Office of Finance, September 27th, 1782,260
Congratulating him on his success in Holland.
To Messrs Le Couteulx & Co. Office of Finance, September 27th, 1782,261
Directs money to be placed in their hands. Terms on which it may be remitted to the Havana.
To B. Franklin. Office of Finance, September 27th, 1782,262
Transmitting instructions to obtain a loan from France.—General disposition of the nation toward the French.—Attempts of the English to effect a reconciliation.—Reliance of Congress on the continuance of aid from France.—Necessity of immediate relief.—Vicious mode of taxation.
To B. Franklin. Office of Finance, September 27th, 1782,270
Disposition of the loan mentioned in the preceding letter.
To B. Franklin. Office of Finance, September 30th, 1782,271
Improvident purchases of American agents in Europe.—The stores belonging to the United States in Europe must be shipped.—Mr Grand's accounts.—Interest on the Dutch loan.—Reports of peace produce inaction on the part of the States.
To B. Franklin. Office of Finance, October 1st, 1782,274
Directing application for a convoy from Havana to an American port, for moneys to be shipped at the former place.
To M. de la Luzerne. Office of Finance, October 2d, 1782,275
Requesting him to make representations to his Court on the necessity of a loan.
To Alexander Hamilton. Office of Finance, October 5th, 1782,275
Circulation of his notes.
To B. Franklin. Office of Finance, Oct. 7th, 1782,278
Shipment of money.
To George Washington. Office of Finance, October 15th, 1782,279
Impossibility of supplying money for the army.
To the Governor of North Carolina. Office of Finance, October 7th, 1782,280
Specific supplies cannot be received in the place of money.—Objection to the imposing of any restrictions on the exportation of certain articles, for the purpose of facilitating the obtaining of those articles by the United States.
To Major General Greene. Office of Finance, October 17th, 1782,283
Supplies for the army.—Disposition of the States to furnish specific supplies.
George Washington to Robert Morris. Head Quarters, October 18th, 1782,285
Expenses incurred in forwarding information to the Marquis de Vaudreuil, at the request of M. de la Luzerne.
Circular to the Governors of the States. Office of Finance, October 21st, 1782,286
Unable to fulfil his engagements with the contractors.—Compelled to enter into new contracts on less favorable terms.—The want of revenue increases all branches of the expenditure.—The war is protracted by the want of resources.
To the Governor of Rhode Island. Office of Finance, October 24th, 1782,291
Negligence of the States to meet the requisitions of Congress.—Loans, or military collections of supplies the only alternative.—Loans cannot be obtained without the establishment of funds.—These may be raised by laying the impost recommended by Congress.—Answer to the objections to that measure.
To B. Franklin. Office of Finance, October 27th, 1782,296
Assumes the debt of Virginia, contracted for supplies from France.
To the Governor of Cuba. Philadelphia, November 27th, 1782,297
Requesting his assistance in negotiating bills at Havana.
To Thomas Barclay, in Paris. Office of Finance, December 5th, 1782,298
Enclosing Acts of Congress appointing him Commissioner to settle the accounts of the United States in Europe.—Method of proceeding to be adopted.—Account of Beaumarchais.—Heads under which the accounts must be stated.
To the President of Congress. Office of Finance, December 12th, 1782,306
Reporting a bill regulating the rates at which foreign coin shall be received at the treasury.
George Washington to Robert Morris. Head Quarters, December 20th, 1782,308
Inscription on the cannon to be presented to the Count de Rochambeau.
To B. Franklin. Office of Finance, January 11th, 1783,309
Has overdrawn on Mr Grand.—Difficulties in raising supplies.—Is obliged to extend his drafts still further.
To B. Franklin. Office of Finance, January 13th, 1783,312
Supplies.—Payment of the salaries of the foreign Ministers.
To Mr Grand. Office of Finance, January 13th, 1783,314
Amount of bills issued on Europe.
To M. de la Luzerne. Office of Finance, January 13th, 1783,316
Explanation of the excess of drafts on Mr Grand over the funds in his hands.—Necessity of further aid for the current year.
To John Adams. Office of Finance, January 19th, 1783,322
Wishes to be informed of the state of the loan in Holland.
To the President of Pennsylvania. Office of Finance, January 20th, 1783,323
Pennsylvania has not complied with the requisitions of Congress.
To George Washington. Office of Finance, January 21st, 1783,324
Suspicions of illicit transmission of money for commercial purposes under pretence of relieving prisoners.—Secret service money.
To the President of Congress. Office of Finance, January 24th, 1783,325
Resigning his office, on the ground that the debts are increased without any provision for the payment of them.
To the President of Congress. Office of Finance, February 26th, 1783,327
Desires permission to make known his resignation.
To George Washington. Office of Finance, February 27th, 1783,327
Informing him of his resignation.
To William Carmichael, in Madrid. Office of Finance, March 4th, 1783,329
Drawing on him to the amount of the bills protested by Mr Jay.
To the President of Congress. Office of Finance, March 8th, 1783,330
On the payment of the public debt.—Justice requires that it should be paid.—Power of Congress in this respect.—The States should be required to pay their quota of the debt, or to comply with a general plan adopted by Congress.—Method of making the apportionment.—The collectors must be appointed by the United States.—The revenue must continue till the extinguishment of the debt.—Objections to the impost.—Land tax.—Plan of terminating all accounts open between the United States and the individual States.
George Washington to Robert Morris. Head Quarters, March 8th, 1783,336
Regretting his resignation.—Apprehensions of the consequences.
To the President of Congress. Office of Finance, March 10th, 1783,337
Enclosing an estimate of the public debt on the 1st of January, 1783.
To Major General Greene. Office of Finance, March 14th, 1783,338
Reasons of his resignation.—Provision for the public debt.
To the President of Congress. Office of Finance, March 17th, 1783,339
No further aid can be expected from Europe.—Loan in Holland.—Probable amount of money on hand.—Expenditure.—Extinction of the public credit.—Defence of himself from the charges brought forward in the newspapers.
To the Receivers of Continental Taxes in the several States. Office of Finance, April 7th, 1783,344
Enclosing an account of the receipts and expenditures during his administration.
Circular to the Governors of the States. Office of Finance, April 7th, 1783,345
Enclosing statements of the receipts and expenditures for 1781 and 1782.
To a Committee of Congress. Office of Finance, April 14th, 1783,345
Settlement of accounts.—Payment of the army.
To Alexander Hamilton. Office of Finance, April 16th, 1783,347
Marine agency.—Necessity of economy in the expenditure.
To the President of Congress. Office of Finance, April 23d, 1783,348
Enclosing specimens of a coin for the proposed mint.
To the President of Congress. Office of Finance, May 1st, 1783,349
Correcting erroneous statements of a committee of Congress appointed to confer with him relative to his continuance in office.—Reasons for his resignation.—Motives for consenting to continue in office.—Conditions of this consent.
To the President of Congress. Office of Finance, May 3d, 1783,355
Consenting to continue in office.
To M. de la Luzerne. Office of Finance, May 6th, 1783,355
Requesting an advance of money in America.
Circular to the Governors of the States. Office of Finance, May 12th, 1783,356
Further supplies from France are not to be expected.—Confusion of the accounts.—Anticipation of the revenue.—Necessity of supplies from the States.
To Thomas Barclay, Agent for settling the Public Accounts in Europe. Office of Finance, May 12th, 1783,359
Confusion in the accounts occasioned by the bills drawn by Congress on the Ministers in France, Spain, and Holland.—Settlement of the accounts.
To B. Franklin. Office of Finance, May 12th, 1783,360
Confusion produced by the bills drawn by Congress.—Amount of the bills.
To a Committee of Congress. Office of Finance, May 15th, 1783,362
Account of the state of the financial department.—Resources foreign and domestic.—Expenses of the army.—Political and military motives for disbanding the army immediately.
To Major General Greene. Office of Finance, May 16th, 1783,367
Calumnies against public officers.
To B. Franklin. Office of Finance, May 26th, 1783,369
The people is never ready to tax itself.
To B. Franklin. Office of Finance, May 26th, 1783,370
Urging a renewal of application for aid.—The taxes shall be devoted, as far as possible, to the repayment of any advances.—Situation of the finances.
To M. de la Luzerne. Office of Finance, May 27th, 1783,372
Requesting his interposition with his Court in favor of the application for further aid.
To George Washington. Office of Finance, May 29th, 1783,373
Misrepresentations of his motives and conduct.—Exertions to procure pay for the army.
Circular to the Governors of the States. Office of Finance, June 5th, 1783,375
The army has been paid in notes.—Incumbent on the States to furnish means of discharging them.
Circular to the Governors of the States. Office of Finance, July 11th, 1783,376
Necessity of supplies from the States to meet the notes issued to the army.
Report to Congress relative to the Pay of the Army. Office of Finance, July 15th, 1783,378
Method of discharging the notes issued by the Superintendent of Finance.—Amount advanced to the army.
To the President of Congress. Office of Finance, July 18th, 1783,380
Recapitulation of the circumstances connected with the payment of the army.—Reason for presenting these facts in the form of a letter.
To Mr Grand. Office of Finance, July 25th, 1783,386
Requesting that his bills may be honored, although exceeding the funds in Mr Grand's hands.
To the President of Congress. Office of Finance, July 28th, 1783,387
Urging a reduction of the public expenditure.—The civil list.
Circular to the Governors of the States. Office of Finance, July 28th, 1783,389
State of the finances.—Reduction of expenses.—Misrepresentations of his motives.
Report to Congress respecting transferable Certificates. Office of Finance, July 31st, 1783,393
Reasons why the debts of the treasury have not been evidenced by transferable certificates.
To the President of Congress. Office of Finance, August 1st, 1783,394
Amount and proportions of the payments by the States.
To Messrs Willink & Co. Office of Finance, August 6th, 1783,396
Amount and nature of drafts on them.—Desires that they may be met at all events.
George Washington to Robert Morris. Head Quarters, August 6th, 1783,397
Advances of money required for transporting cannon and stores to the upper posts.
To George Washington. Office of Finance, August 12th, 1783,399
To the Paymaster General. Office of Finance, August 12th, 1783,399
Embarrassed situation of the finances.
To Elbridge Gerry. Office of Finance, August 26th, 1783,400
Different requisitions of Congress.—Objections to the proposition for changing the mode of settling accounts.—Objections to the proposal to relinquish any part of the requisitions.
George Washington to Robert Morris. Rocky Hill, August 30th, 1783,406
The design of occupying the western posts is relinquished.
To George Washington. Office of Finance, September 2d, 1783,406
Expressing his satisfaction at the relinquishment of the design of occupying the western posts.
Circular to the Commissioners of Accounts. Office of Finance, September 4th, 1783,407
Instructing them to make inquiries illustrative of the state of the country in its geographical, moral, political, and commercial relations.
To John Adams. Office of Finance, September 20th, 1783,411
Insufficiency of the confederation.—General satisfaction with the peace.
To B. Franklin. Office of Finance, September 20th, 1783,413
Prejudices against France.—Causes of the return of American commerce to Great Britain.—Fatal influence of the British navigation act on the commerce of England.—The true interest of the European powers is to open the West India ports to American vessels.—Remissness of the people in paying taxes.—Debt due the Farmers-General.
To Arthur Lee. Office of Finance, Oct. 4th, 1783,418
Facts relating to a contract with Mr Deane, concerning shipments on the public account.
To M. de la Luzerne. Office of Finance, October 15th, 1783,420
Case of M. Holker.
To Messrs Willink & Co. Office of Finance, October 23d, 1783,420
Sum requisite above the estimated amount of the taxes.—Present rate of exchange favorable to the United States.—Plan adopted for drawing the sum desired.
To the Farmers-General of France. Office of Finance, November 4th, 1783,423
Plan adopted by Congress for the payment of the sums due the Farmers-General.
Report to Congress on an Extract from the Journals of the General Assembly of Pennsylvania.424
Relative to the mode of proceeding of the commissioner for settling the accounts of the State.
To John Adams. Office of Finance, November 5th, 1783,436
Approves his plan of remittances from the United States.—The interference of the Dutch government in the loan is not desirable.
To Messrs Willink & Co. Office of Finance, December 31st, 1783,437
Giving them notice of his drawing bills on them, and requesting their acceptance at all events.
To Messrs Willink & Co. Office of Finance, December 31st, 1783,439
The apprehensions which impede the loan are groundless.
To the President of Congress. Office of Finance, January 13th, 1784,441
Confused state of the accounts of the secret and commercial committees.
To Messrs Le Couteulx & Co. Office of Finance, January 13th, 1784,443
Requesting them to meet certain bills.
To the President of Congress. Office of Finance, January 16th, 1784,444
Transmitting a demand for supplies advanced to American prisoners.
To the President of Congress. Office of Finance, January 21st, 1784,445
Claims of individuals for damages done by the army.—Plan of an Act relative to this subject.
To the President of Congress. Office of Finance, January 24th, 1784,449
Proposing the appointment of a commissioner for settling the claims of individuals for services rendered, or supplies furnished in Canada.
To the President of Congress. Office of Finance, February 2d, 1784,451
To Messrs Le Couteulx & Co. Office of Finance, February 12th, 1784452
Draws bills on them, and remits tobacco.
To Mr Grand. Office of Finance, February 12th, 1784,454
Requests him to meet certain bills if necessary.
To Messrs Willink & Co. Office of Finance, February 12th, 1784,455
Reasons for drawing on them beyond the funds in their hands.—Manner in which the bills may be met.
To Messrs Willink & Co. Office of Finance, February 12th, 1784,459
The resources of America are not sufficiently known.
To B. Franklin. Office of Finance, February 12th, 1784,461
Desires that some measures may be taken to meet his bills.—Intended remittances.
To B. Franklin. Office of Finance, February 13th, 1784,463
Amount of the actual engagements of his Department.—General engagements for the public service.—Bills of exchange unpaid.—Debt to the national bank.—Means of payment.
To Thomas Jefferson. Office of Finance, February 25th, 1784,468
Arrearages of requisitions.—Unfunded expenditures.—Estimate of the Civil List.
Proposed expenses of the Civil List,476
To the President of Congress. Office of Finance, March 17th, 1784,478
Failure of the Dutch loan.—Bills protested for non-acceptance.—Amount of funds in Europe, and of bills drawn.—Necessity of prompt supplies.
To Jacob Read, member of a committee of Congress. Office of Finance, March 30th, 1784,482
Advises a demand of the arrearages from the States, previous to making new requisitions.—Objections to the Loan offices.
To Thomas Jefferson. Office of Finance, April 8th, 1784,485
The number of banks unfavorable to the plan of raising loans.—Objections to premiums on loans.
To the President of Congress. Office of Finance, April 29th, 1784,486
Defence of his conduct in regard to the appointment of Receivers of taxes.—Objections to Loan offices.
To the President of Congress. Office of Finance, May 6th, 1784,489
Amount of his engagements.—Requests the adoption of arrangements for administering the Financial Department.
To the Marquis de Lafayette. Office of Finance, May 19th, 1784,490
Requesting his influence in establishing a free port in the Isle of France or Bourbon.—Commercial and political advantages of the measure.
To the Governor of Rhode Island. Office of Finance, June 21st, 1784,493
Urging a compliance with the requisitions of Congress for funding the public debt.
To M. de Marbois, Chargé d'Affaires from France. Office of Finance, August 17th, 1784,494
Arrangements for paying the interest on the French loans.
To the President of Congress. Office of Finance, September 30th, 1784,496
Success of the Dutch loan.—Necessity of making proper provisions for the payment of the public debt.
To B. Franklin. Office of Finance, September 30th, 1784,498
Payment of the salaries of the foreign Ministers.—Attachment of United States property in France.
To the President of Congress. Office of Finance, September 30th, 1784,501
Services of M. de Lafayette.
Advertisement. Philadelphia, October 11th, 1784,502
Announcing his having made arrangements for redeeming his public engagements and his notes in circulation.—Pledges his personal responsibility for the payment.
To the President of Congress. Office of Finance, November 1st, 1784,502
Enclosing his commission as Superintendent of Finance.
THE CORRESPONDENCE OF ROBERT MORRIS, SUPERINTENDENT OF FINANCE.
VOL. XII
THE CORRESPONDENCE OF ROBERT MORRIS. ——— CORRESPONDENCE CONTINUED. ———
TO M. DE LA LUZERNE.
Office of Finance, November 3d, 1781.
Sir,
Agreeably to my promise, I have the honor to send you a copy of the circular letter, which I lately transmitted to the several States. This will be an additional proof of my desire to draw from among ourselves the necessary resources, and thereby to become truly independent. But the sincerity with which I have always spoken to you, and which I mean to preserve, and which the generous conduct of your Sovereign demands for his servants, that sincerity will not permit me to conceal my sentiments on what is to be expected.
The annual expenses of this country may certainly be reduced within narrower bounds, than they have hitherto been; perhaps it will be less than I myself have now an idea of. But still it must be considerable, if we mean, which we certainly do, to make becoming efforts in the common cause. Besides this, it will require a considerable revenue to provide the sinking fund for our public debt. As I consider national credit to be an object of the greatest magnitude and importance, so I think it necessary to bend every possible effort to the establishment and support of it. Provision for our debts is, therefore, the first object, and therefore must take place of every other demand.
Whatever may be the wealth of the inhabitants of America, and however capable they may be of bearing heavy taxes, this at least is certain, that they have neither been accustomed to them, nor have the Legislatures hitherto adopted the proper modes of laying and levying them with convenience to the people. Taxation requires time in all governments, and is to be perfected only by long experience in any country. America, divided as it is into a variety of free States, possessing sovereign power for all domestic purposes, cannot therefore be suddenly brought to pay all which might be spared from the wealth of her citizens. The amount even of that wealth is very disputable. Our extensive forests, though they are valuable as property, are by no means productive to the revenue; and many of our people have endured such losses, that they require alleviation, instead of being able to bear burdens. Besides this, the use of many articles, not strictly necessary, are become so even by that use, and therefore, the mode of living being habitually more expensive than in other countries, requires greater wealth, A good Prince would not suddenly render the lot of his subjects worse. How then are we to expect that the people themselves will do so?
But supposing our taxes could equal the demand for revenue, another circumstance remains. The paper money, which has been emitted lays in our way to reformation, and we feel it at every step. It has been issued, and the people will with propriety refuse to pay taxes, if it be totally refused. Much, therefore, of the revenue must be in paper, while that paper exists. If it be re-issued after it has been raised in taxes, the mischief attendant on a depreciating medium will still continue. A large nominal revenue may indeed be collected, but that revenue will be nominal. The specie in the country also will be continually secluded from circulation, and by that means, not only the sources of revenue will be dried up, but even the bills of exchange, which may be drawn on Europe, will not find a proper market at their value.
I might add a number of reasons to show the necessity of destroying this paper money; but your residence here has enabled you to see this subject to the bottom, and I have found in conversation your ideas so clear, that I will not attempt to demonstrate what you cannot but perceive at a single glance. But how is it to be done? If a recurrence be again had to the detestable expedient of force, our credit is ruined. Prudence, therefore, forbids any such attempt; besides, it is so dishonest, that I will never have any concern in it. There is then no other means, but to receive the taxes in paper, and to destroy a part, at least, if not the whole.
This method of proceeding will lay a proper foundation for establishing public credit, and when that is established, we well know what good consequences may be drawn. But, in the interim, it is evident that the revenue, even if otherwise equal to our wants, must be deficient. I, therefore, am bound to declare to you my conviction, that we must have aid from abroad. It is unnecessary to add the place from which that aid is to be expected.
It is very painful to ask assistance in any case, especially in a situation like ours, where the object of the war is to secure what is of the utmost importance to us. But having candidly explained our situation, and shown the impracticability of doing all which I wish, there is a greater propriety in stating to a gentleman, who knows those wishes, the ideas which arise from the nature of that connexion which subsists between the two nations.
The war in America must of necessity prove fatal to Great Britain, if it continues; because it is carried on by her at an expense so disproportionate, to that which is borne by France, that the greater effort must exhaust every fund she can possibly draw forth, and inextricably involve her in eternal debt. If then the object of the war were in itself indifferent to France, the mere continuance of it would alone be a valuable object to her, and indeed, to every other power, particularly to those who are in any degree maritime, as they are most exposed to British encroachment and rapacity. But when we consider that the object of the war is of the last consequence to the commerce of his Majesty's dominions, and especially so to his marine; and when we further consider, that his honor stands pledged for our support, to doubt of his further assistance would imply a reflection both on his wisdom and integrity. I hope, Sir, you will believe me to be incapable of casting such reflections.
Let me further take the liberty to observe, that I would by no means detract from the generosity of his Most Christian Majesty, yet the moneys, which he may be disposed to advance to the United States, are neither lost nor thrown away. The subjects of France will for ages derive benefits from a commercial connexion with this country, and I hope their Sovereign will always find here a warm friend and a faithful ally, should any of those changes, to which human affairs are subjected, induce him to ask that aid, which he now bestows.
With great respect, I have the honor to be, &c.
ROBERT MORRIS.[1]
TO THE PRESIDENT OF CONGRESS.
Office of Finance, November 5th, 1781.
Sir,
Copies of the Act of the United States in Congress assembled, of the 2d instant, have been sent to me, and were yesterday received. It would have given me pleasure to have had an opportunity of expressing my sentiments before those acts were passed; but it becomes necessary to take the liberty of doing it now. I, therefore, do myself the honor to enclose a letter written on the 28th day of August last, which was not transmitted before, because Congress were so much engaged, that, as well from that as from other circumstances, those matters, which it relates to, could not properly be brought before them. In the beginning of that letter, the reference made to me on the 23d of August, of two letters from the State of Massachusetts, and of a report upon them, is mentioned. On the 12th of September following, I received the resolutions of that State, which were referred on the 10th; and I have now to observe, that my sentiments on the subject of those resolutions are fully contained in the letter.
I should have sent in that letter, notwithstanding my reasons to the contrary, if I had conceived that any of the subjects it relates to had been in agitation before the United States. And, although Congress have not taken up all the matters mentioned in it, there is some propriety in sending it as it was written, because such objects are better understood when viewed in their connexion with each other, than when separately considered.
I shall say nothing as to the amount of the sum required, because I have not seen the estimates. Congress have certainly considered the supplies necessary, and the abilities of their constituents. Immediately after the apportionments, I find the following clause, "that the said sums, when paid, shall be credited to the accounts of the several States on interest, to be hereafter adjusted." I hope that I shall be pardoned for observing, that I cannot see the necessity of this provision, and that ill consequences will probably result from it. As to the necessity, I will suppose that the proportion of any State were rated so high as greatly to exceed its means of payment, or materially to distress the people, surely Congress might afford redress in the next apportionment by relaxing the demands on such State and dividing the deficiency among others. Nor is it of any consequence whether the disproportion arises from error in laying the quotas, or from a subsequent change of circumstances. It is for this reason that the clause appears unnecessary. The idea of leaving the adjustment of accounts to a future day will discourage the efforts of every State in the Union. They will consider it as determining, in other words, that the accounts shall never be settled at all, or rather, they have already formed that opinion. This has produced discontent, and given rise to complaint. The disputes which must follow cannot but be pernicious. Nor are these the only ill consequences of that provision. I hope that Congress will pardon me, when I state the sentiments, which may arise in the minds of others, although they have no place in my own. Postponing a final adjustment may cast an air of doubt, or even timidity, on the proceedings of the United States. It may be construed into an appearance of leading individual States unwarily into efforts beyond their proportion, or their strength. It may be imagined that there is some want of that firmness and decision, which ought to be the constant companions of sovereign authority. It gives me pain to hazard a difference in opinion with Congress, and, therefore, I quit the subject.
The next article in the Act of the second instant declares, "that certificates, which may be given by the Quarter Master General, or other officers properly authorised to give them for supplies, that shall hereafter be furnished, shall be accepted in payment." This provision may, in some instances be necessary, in some improper, but in all it must be dangerous. I shall not dwell on the consequences of giving these certificates; but I will suggest one idea, which will, perhaps, merit attention. That article is an act of sovereign authority, and therefore while it exists doubts may arise how far the issuing of such certificates can be restrained. If the Quarter Master and others will give certificates, and the States will receive them and tender them to me, I must, according to this act, accept them in payment; but those who contract for supplies to the public, certainly will not take them from me. If, on the other hand, that article be not inserted, the general authorities given to me by Congress are equal to all the necessary regulations in executing their commands. I might, for instance, appoint a trusty person to give certificates in extraordinary cases. I should then know the amount of such certificates, and I could make the necessary arrangements with relation to them.
My sentiments on the next article are so fully expressed in the enclosed letter, that I will not trouble Congress with the repetition. I shall only observe, that daily observation and information confirm my fears, that frauds have been practised in giving those certificates, and I must be of opinion, that a general permission to receive them in taxes will be very injurious, not only to the public revenue, but to the reputation of our measures. I am apprehensive that many honest men through the United States, who know the frauds committed in their neighborhoods, will imagine that sufficient attention is not paid to the detection of villany, and that idea will disincline them very much from the payment of taxes, because nothing induces men to part with their money so cheerfully, as the belief that it will be applied to the purposes for which it was granted, with economy and integrity.
What I have written on the subject of a final apportionment may appear to have proceeded from a want of attention to that article of the confederation, which points out the manner of defraying public expenses. But this is not the case. The article in question relates merely to those circumstances, which shall arise after the completion of it, and makes no provision whatever for past expenses. The several requisitions of Congress do indeed refer to a future settlement, according to the mode expressed in the confederation; but the confederation itself must receive a liberal and equitable construction; much more so those resolutions which refer to it. If this be not the case, it would be madness to expect obedience from free agents independent of each other, which is the situation of the several States. If, then, the article be considered and weighed, even as to the quota of the current year, where certainly it applies with greater force, than to any past transaction, we shall find that it presupposes the following things; first, a certain mode of determining the value of lands, &c., or, in other words, the value of each respective State; secondly, that this mode should not be permanent but variable, and framed from time to time, according to the then existing state of things; thirdly, that it should be founded in liberal principles of justice; no other mode being presumable from those who are to adopt it; fourthly, that the value being thus equitably determined, the expenses of the current year should be estimated according to the best lights, which could be obtained; and fifthly, that this expense should be apportioned according to that valuation.
If these ideas be just, and I think that an inspection of the article itself will show them to be so, then it will follow, that a valuation made for one year cannot properly apply to any preceding or subsequent year; more especially, if any considerable change take place in the respective circumstances of the several States. Let us, for instance, suppose, that in the year 1776, five hundred acres of land in the State A were worth one thousand pounds; that in the year 1777, they were worth five hundred pounds; and in the year 1778, one hundred pounds; while, during the whole period, five hundred acres in the State B were worth five hundred pounds. Let us suppose the States A and B to have been of the same extent, and that thirty pounds were to have been paid annually by those States according to the apportionment of the confederation, they would then have been charged as follows; in 1776, the State A twenty pounds, and B ten pounds; in 1777, A fifteen pounds, and B fifteen pounds; and in 1778 A five pounds, and B twentyfive pounds. Thus, then, of three times thirty or ninety pounds, A would be chargeable with twenty, fifteen, and five amounting in the whole to forty pounds; and B with ten, fifteen, and twentyfive, amounting in the whole to fifty pounds. The proportion, therefore, between them is as four to five; but the proportion arising from their relative wealth in either of those terms is widely different. In the first, it is as two to one. In the second, as one to one, and in the third, as one to five. Wherefore, if the whole ninety pounds were to have been apportioned on the valuation of the first year, it would have been to A sixty, and to B thirty. On that of the second A fortyfive, and B fortyfive, and on the third A fifteen, and B seventyfive.
If this conclusion be fairly drawn, then a question will arise on this point. Suppose no mode of valuation adopted, how are the quotas to be ascertained? In answer to this question, I state the following positions; first, that the object of the confederation was to make an equitable apportionment; secondly, that Congress will always, when they direct a valuation, do it in an equitable mode; and thirdly, that a valuation is, at present, impracticable, much less a valuation for times past. These things admitted, and the necessity of an apportionment being also admitted, the question answers itself; for no other mode will remain, but by resorting to such lights as Congress may have on the subject, and that they determine as equitably as they can, according to those lights, which is the very thing I have already proposed.
I shall trespass no longer on your Excellency's patience, than to mention, that I have detained the copies of those acts, until the further order of Congress. But if they disapprove of it, I shall immediately transmit them.
I have the honor to be, &c.
ROBERT MORRIS.
TO M. DE LA LUZERNE.
Office of Finance, November 6th, 1781.
Sir,
I have been honored with your Excellency's answer of the 4th to my letter of the 3d instant. I am sure we cannot differ in opinion. It is impossible, that I can doubt the wisdom or integrity of his Most Christian Majesty, or that you can doubt his desire of giving further assistance to the United States. As to the mode in which that can be done, his Majesty's convenience, and the situation of affairs will best determine it. I wish to receive pecuniary aid, and when I consider the importance, I am led to expect it. You have doubts on that subject; but the success which has followed from the grants already made, will show so clearly the utility, that you, who see the good effects, and who are so zealously attached to the common cause, will concur with me in your efforts also. The regard you have expressed for the United States, and which, I am sure you feel, gives me the highest reason to expect your good offices on all occasions, which may relate to their welfare, and particularly those in the line of my department, where you are fully sensible assistance is most necessary.
With the most perfect esteem and respect, I am, &c.
ROBERT MORRIS.
TO THE COUNT DE ROCHAMBEAU.
Office of Finance, November 15th, 1781.
Sir,
I have the pleasure to observe to your Excellency, that I have discharged a bill drawn on me by M. Baulny, in favor of M. Roquebrune, for eighty thousand livres, being in part payment of the one hundred and forty thousand livres, which you were so kind as to advance, and for which I beg leave again to express my grateful sense of obligation. The remaining sum of sixtyfour thousand livres, I hold at your order, and had determined to remit it; but having accidentally mentioned the matter to the Chevalier de la Luzerne, he observed to me, that in all probability, you would want money rather in Philadelphia than Virginia, because of the necessary expense, which would arise in transporting stores from Boston. Upon this principle, I deferred sending forward, until I should hear from your Excellency on the subject. M. de la Luzerne has also promised me to mention it in his letters to you.
Before I conclude this letter, I must trespass one short moment on your patience, to express my congratulations on the important and splendid success, which has crowned the allied arms before Yorktown. My voice, Sir, cannot add to that glory, which the public sentiment has most deservedly conferred; but you will permit me to assure you of the high gratification it gives my mind, that you are so much the object of gratitude, applause and esteem, throughout the United States.
With the most perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, November 17th, 1781.
Sir,
I have the honor to enclose acts of Congress of the 30th of October, and 2d instant, which were handed to me on the 4th; but upon a perusal of them, it appeared that some things had escaped the attention of Congress; wherefore, on the 5th I had the honor of writing to them a letter on the subject.
In this letter I took the liberty to state some objections to the three clauses in the Act of the 2d, which follow immediately after the apportionment. I shall not here repeat those objections. They lay before the United States in Congress, and will receive such mature consideration, as is becoming the wisdom of that sovereign body. I will not however hesitate to declare to your Excellency, that it was my wish to have those three clauses repealed.
On the 12th, the United States in Congress assembled passed the act, of which a copy is also enclosed, and by which your Excellency will perceive, that one of those clauses is repealed. I received this Act on the 30th, and I have waited until this day the further order of Congress; but there being now but a thin representation, so that business cannot be done with the same despatch as when more States are present, and these Acts being of great importance, I have thought it best immediately to forward them. To press a compliance is I trust unnecessary. The respect due to the representation of America will speak more loudly and more effectually, than the weak voice of any individual servant they may have employed. I shall make but one observation. The present requisition is very moderate; the compliance, therefore, must be very punctual, for delays are equally dangerous and expensive, and if they should happen, the people must be burdened with new taxes unnecessarily.
With great respect, &c.
ROBERT MORRIS.
GEORGE WASHINGTON TO ROBERT MORRIS.
Mount Vernon, November 19th, 1781.
Dear Sir,
I have to inform you, that a very considerable debt has been incurred on you as Financier of the United States, by an order for the relief of the officers of the army from the goods found in Yorktown; each officer, military and staff, having been authorised to take up on public account, the sum of twenty pounds Virginia currency; for which Mr Ross, commercial agent of this State, is answerable to the merchants, payable in tobacco; Mr Ross receiving the amount in bills upon you to be paid in six months from the time of the goods being taken. The returns not being handed in, I am unable to give you the amount with any precision; your own calculations will afford you the sum with a degree of certainty.
A quantity of goods found on board a cartel in York river, and which have been judged to be forfeit, were part suitable for the army, and part for the country; the latter, which will amount to a considerable sum, are to be sold at public vendue, and accounted for.
Knowing the state of your finances, I have studied to keep this debt within its most moderate bounds, but in spite of all my endeavors, I fear you will find it but too large. I hoped to have given you some assistance from the military chest found with the enemy, but unavoidable contingencies of the army, and furnishing the Quarter Master General for the southern army, have swallowed up near one half of its contents. A number of iron cannon, being unnecessary for our use, I have appropriated as a fund for the discharge of the debt incurred, and they are sent to the head of the Elk; this with the other funds may possibly amount to a full discharge of the debt.
I am, &c.
GEORGE WASHINGTON.
P. S. Since writing the above, I am informed by General Lincoln, who is come up since I left Yorktown, that the whole amount of the goods taken by the officers and on public account, will arise to about thirteen thousand pounds sterling, and that the articles sold in Yorktown, at public vendue, will be near six thousand pounds.
G. W.
TO THE GOVERNOR OF CONNECTICUT.
Office of Finance, November 20th, 1781.
Sir,
I have been honored with your Excellency's letter of the 7th instant, and am much obliged by the attention you have been pleased to pay to the several applications from me, which are noticed in it.
I shall be very happy to receive the several accounts you have promised, because the final settlement of all accounts appears to me of the utmost importance, and I hope such measures will be taken, as founded in justice and propriety will meet your wishes, and be agreeable to the State, over which you so worthily preside. I hope that in future, there will be no accounts between the States and the United States, except cash accounts, one side of which will consist of the requisitions, and the other with the payment of them. The old Continental, which is brought in, will, I hope, be forwarded hither, with its proportionate part of the new, and indeed of the whole, both new and old, as soon as possible. Both shall be carried to the credit of the State.
As to what you mention of the tax in specie, I have to observe, that whatever may have been the practice heretofore, I hope that the moneys designed for the general service will be paid into the Continental Treasury, and that the army will be paid from thence. This I conceive to be the only mode, by which heart-burnings, murmurs, and complaints can be avoided, and, at the same time, it is the only mode, by which the moneys obtained from the people can be applied with effect and economy.
To feed, clothe, and pay the army, form a part of the objects of my administration. Clothing I have received. Rations I have contracted for in some degree, and I shall extend those contracts. Pay will also be advanced, when the treasury will admit of it. I am, therefore, to request that the hard money collected, and collecting in your State may be held subject to my drafts. I expect that the States will all levy taxes sufficient for those things I have just mentioned, and for the other necessary expenses. The money which is submitted to my disposal shall be faithfully applied.
That the requisitions from Congress have been later than was to have been wished, is indeed to be lamented. That body have so many objects, which call on their attention, that they cannot always do what they would wish. Besides this, the uncertain situation of our money has hitherto greatly increased the difficulties, which Congress have labored under, and you will permit me to observe, Sir, that those difficulties are not a little to be attributed to the inattention of the several States. But your Excellency will, I am sure, agree with me, that our situation requires joint vigorous exertions, and not unavailing complaints and recriminations.
With the greatest respect, &c.
ROBERT MORRIS.
REPORT OF A LETTER TO DON BERNARDO DE GALVEZ, MADE TO CONGRESS, NOVEMBER 21ST, 1781.
The Superintendent of Finance, in pursuance of the order of the 7th instant, prays leave to submit the following draft of a letter to General Galvez.
Sir,
Your letter, dated at New Orleans the 22d of July, 1780, has been received, and was laid before the United States of America in Congress assembled on the 29th of September following. The committee to whom that letter was referred, did not make any remittances in consequence of it, nor write you an answer, because the dangers attending a communication with you at that time were too great, occasioned by the many ships of war, with which the enemy then infested our coast.
I am now, Sir, directed by the United States to express to you the grateful sense they entertain of your early efforts in their favor. Those generous efforts gave them so favorable an impression of your character, and that of your nation, that they have not ceased to respect you, and to wish for an intimate connexion with your country. Conceiving it to be for the mutual interest of Spain and North America, they have an earnest wish, that as the cause is one, and the enemy one, so the operations against him may be continued in such manner, as to answer the great purposes, which all have in view. The late successes, which have crowned the combined arms of France and America in Virginia, while they demonstrate the benefits which flow from a union of efforts, will at the same time, lead to wholesome reflections on the manner in which that union has been cemented. The French and American soldier marching under the same banners, enduring the same fatigues, bearing the same dangers, and bleeding in the same field together, express in the language of their different nations the common sentiment of fraternal affection. Let me congratulate you very much on this success, and still more on the sentiment, by which, under Providence, it has been secured.
With respect to the advance made by your Excellency, I have the honor to enclose copies of two resolutions of Congress, one of the 6th of February last, and the other of the 7th instant, by which you will perceive, that the public accounts with Mr Pollock are settled, and a considerable balance carried to his credit. In these accounts is included a part of your advance, and the remainder of it is contained in Mr Pollock's account with the Commonwealth of Virginia. This latter account has been referred to the consideration of that Commonwealth, and I trust the debt to Mr Pollock will be acknowledged by them. That which is due from the United States to Mr Pollock is now on interest at six per cent, and if you wish that the sums which he has appropriated to the service of the United States out of those advanced by your Excellency should be credited to you, on transmitting an assignment thereof from Mr Pollock, it shall immediately be done, and payment will be made both of the principal and interest, as soon as the situation of our finances will admit of it, which, from the present prospect of things, may happen in a shorter space of time, than the public creditors have been generally led to expect.
With perfect respect and esteem, I am, &c.
ROBERT MORRIS.
TO M. DE LA LUZERNE.
Office of Finance, November 22d, 1781.
Sir,
In conversation with your Excellency last evening, you requested me to write to you on the subject of it, that you might be fully possessed of my sentiments. I have now, therefore, the honor to remind you, that some time in the month of May last you promised me that I should draw for half a million of livres, and shortly after, for a million more. You afterwards extended this sum to two millions and a half, and on the 25th of September last, I wrote to you on the subject, having then seen the report of the committee appointed to confer with you, by which it appeared, that your engagement with me to draw for the sums first mentioned formed one object of that conference, but that the engagement for one million more was omitted.
I have extended my engagements according to the extent of the means, which I was induced to suppose in my power, and therefore, estimating the money and supplies the States would probably furnish, and relying on the money which had arrived, that which I was authorised to draw for, and that which the engagements of your Court had led me to expect, my views were directed to all those resources. I shall not dwell on the consequences of my efforts. Enough of them are known to speak for themselves, and I leave to your knowledge and observation the comparison of our public affairs now, with what they were exactly six months ago. I will only say, that if those foundations, on which I built, are removed, my past labors will have been thrown away, and my future utility absolutely destroyed.
You can well remember, Sir, what I have often told you of the course of exchange. I have raised it gradually since I first commenced my operations, and although it would now have been higher than it is, if the quantity of bills thrown on the market last summer had been withheld; yet even now, at fifteen pence this money for a livre, it is but ten per cent below par; and as I expect shortly to raise it to sixteen pence, it will then be at a discount of only four per cent. To sustain these operations, if for no other purpose, it is necessary that I continue to draw bills, for certainly a remittance cannot be made so cheaply from Europe. But, indeed my present demands, arising on past engagements, are very great and urgent, so that if I do not continue to draw, the chest will presently be empty, which will be known as soon as it happens, and then I am again at the mercy of the world. I will dwell no longer upon this subject, but take some notice of another matter, which stands in intimate connexion with it.
You will remember, that you have often mentioned to me a mistake in the account, of which you delivered a copy to Congress. As I made no doubt, that it would be properly and satisfactorily explained, I have hitherto restrained myself from going at all into the subject. But it now becomes my duty to write to Dr Franklin upon it; and, therefore, I wish to communicate to you my sentiments, while I request you to use your good offices with the Court for having the matter placed on its proper footing.
The note from the Count de Vergennes, of the 16th of May last, shows very clearly a grant of the three following sums; four millions to Dr Franklin to discharge the bills of exchange drawn on him by Congress; six millions as a gift towards the operations of the campaign; and ten millions in advance of the loan to be opened in Holland, amounting in the whole to twenty millions. The first sum of four millions, appears evidently to have been for payment of the bills drawn to discharge the interest of loan office certificates, according to the original engagement, which the Court entered into with the American Commissioners. Of the money granted by the Court, there has been advanced, as appears by the account you delivered to the committee, in warlike stores and money, to Colonel Laurens, four millions seven hundred and eightynine thousand one hundred and nine livres; and to purchase the remainder of the articles demanded by him, three hundred and ninetyseven thousand livres. For the bills of exchange drawn by Congress on their Minister, I will suppose the sum mentioned in the Count de Vergennes' note, viz. four millions, and I will add for my drafts one million and a half, being what, as I have already observed, you first promised. Thus the whole amount of these sums is ten millions six hundred and eightysix thousand one hundred and nine livres, and the balance, which I conceive to be subject to my disposition, is nine millions three hundred and thirteen thousand eight hundred and ninetyone livres. As to replacing the cargo of the Fayette, which is mentioned in your account, I do not take notice of it, because I wish that it may not have happened, and because if it has been made, it will be time enough to deduct it when the articles shall have been actually delivered. The loss of that ship, and the detention of one of the transports laden by Colonel Laurens, have already compelled me to make heavy expenditures. Among these I will mention the purchase of lead some time ago, and a late purchase of clothing to a very large amount, a part of which I am now paying for, and the remainder is to be paid in three, six, and nine months from the date of my engagements.
I have the honor to enclose what I conceive to be the clear state of the account between us and your Court. This will be transmitted to Dr Franklin, and I hope it will meet with your approbation and support. As I have nearly drawn for twelve hundred thousand livres, I must request your compliance with your original engagement, that I may extend my drafts so as to include the remaining three hundred thousand, necessary to complete the one million and a half, mentioned in the enclosed account.
I shall be glad to be informed, Sir, whether any more money has been shipped on account of the United States. I shall immediately take measures to draw on account of the balance already mentioned, as our necessities require it; and if in the mean time, so much shall have been shipped, as that my bills exceed the balance due, I shall expect that they will be punctually paid, and I will readily repay that excess out of the moneys so shipped, to the use of your army here.
I have the honor to be, &c.
ROBERT MORRIS.
TO M. DE LA LUZERNE.
Office of Finance, November 26th, 1781.
Sir,
The letter, which you did me the honor to write on the 24th instant, was delivered yesterday morning, and I take this early opportunity to acknowledge it. As you have assured me, that you cannot know any account, which is not conformable to the instructions his Majesty's Minister has addressed to you, I shall spare your Excellency the trouble of my remarks. But as you say, that your letter of the 26th of September last could not have left me the shadow of a hope on the subject of further drafts, your Excellency will pardon one observation. Those precise orders from your Court, received by Colonel Laurens, which compel you now to prohibit my further drafts, permitted you then, in consequence of the observations I had the honor of making to you, an extent of nearly three hundred thousand livres. It is my duty to trespass one moment longer on your Excellency's patience, while I take the liberty to observe, that I can by no means consider purchases made for any particular State in the Union as properly chargeable to the United States.
With the most perfect esteem and respect, I have the honor to be, &c.
ROBERT MORRIS.
TO B. FRANKLIN.
Office of Finance, November 27th, 1781.
Sir,
The Marquis de Lafayette who is about to sail for France, will have the honor to deliver this letter, and, consistently with the acts of Congress of the 23d instant, I must request you to communicate it to him, and, from time to time, to take his aid in the prosecution of the business, which I must recommend to your particular attention. The affairs of my department are of a nature not to require concealment; but, even if that were not the case, I have such perfect confidence, as well in the prudence of the Marquis, as in his attachment to this country, that the acts of Congress out of the question, I should feel a pleasure in making him acquainted with my views and wishes. Indeed, I expect that his zeal and activity will go far in smoothing the way towards the accomplishment of those objects, which your Excellency may have to solicit.
In order that you may be perfectly acquainted with the situation of our affairs, I shall previous to my observations on the supplies to be asked for the next campaign, take some notice of the efforts I have made, and am daily reiterating, to obtain supplies from the several States, upon the various requisitions, which Congress have already made, and to operate a settlement of past accounts, and to procure proper funds for the public debts. I shall also make some remarks as to the prospect of future supplies in this country, and on those which have already been granted by the Court of France.
The papers enclosed relate chiefly to the former requisitions of Congress. You will observe, Sir, that by an act of the 28th of June last, I was directed to press a compliance with those requisitions, and it is in consequence thereof, that my circular letter of the 6th of July was written. The demands of Congress were twofold; some for specific supplies of the produce of the several States, the others for money. It may be proper here to observe, that the manner of doing public business had been such, that it was not merely difficult, but absolutely impracticable to state any accounts in the clear satisfactory manner, which ought always to be wished, even in private life, but which in public life is of the last importance. I do not mention this to cast any reflection or aspersion; for the evil resulted more from the want of arrangement, than the faults of any particular men. But it is right to take notice of the circumstance, because, in the course of what I am about to write, the want of such accounts cannot but appear. I shall say nothing as to the ill effects of demanding generally a contribution of specified articles; my opinions on that subject will appear from the enclosed papers, and experience has taught, that such contributions are no longer to be relied on. At the same time, I declare now, that in some degree it must still take place, for reasons, which will be mentioned at the proper time.
As the letter last mentioned contains no statement of the accounts, I wrote on the 16th of July another, containing the cash account of each State, as extracted from the treasury books; a statement, however, which I knew to be imperfect, for causes not necessary to be repeated. On the 25th of July, I wrote another circular letter, and in which was enclosed a statement of the several demands for specific supplies. These were considerable, and I am of opinion, that a very great part of them still remains to be delivered at this day; but there have yet come to my hands no accounts by which to determine the balances. What is said, as to the settlement of accounts in this letter, will be honored with your notice presently. You will now observe, that I therein request information as to the revenue laws, which have been passed, the mode of collecting taxes, the moneys in their treasuries, the various appropriations of it, and the different paper currencies in the several States. To your Excellency, it is unnecessary to observe, that my object was to obtain proper materials, on which to ground my future expectations, and to form efficacious systems of revenue and expenditure. I have the mortification, however, to mention, that no accurate or satisfactory answers have been received to these questions; and when I tell you, that I am not much deceived in my expectations, you will readily form the proper conclusions, as to the relaxed habit of administration in this country. I wish you to be fully possessed of our situation, and that you may convey a clear idea of it to the Court of Versailles. This will be useful to the common cause. I trust that I need not remind you how advantageous it would be for us to know as fully the real situation of France.
The low state of public credit, for the want of solid funds to support it, had induced the United States in Congress, to call for an impost of five per cent on all goods imported, and on all prizes and prize goods, to be granted for the payment of the principal and interest of the debts contracted, or which might be contracted, during the present war. Some of the States had complied with this demand. The two more Southern States were in such disorder, that a compliance from them could not reasonably be expected; neither was it relied on, as you doubtless have remarked, on reading the resolutions of the 3d of February upon that subject, which must have reached you before this day. On the 27th of July, therefore, I wrote a letter to the States of Massachusetts, Rhode Island, New York, Delaware, Maryland, and North Carolina. I have the pleasure to inform you, that the States of New York, Delaware, and North Carolina, have since complied with the demand of Congress, and I am convinced that they will, in the laudable step, be speedily followed by the other States. In the mean time, we must patiently wait the event. Such things require time, and since we cannot command obedience, we must stay for the assent of conviction.
On the 6th of August, I wrote a letter to the President of Congress, enclosing those already mentioned. On this letter it is necessary to say nothing more, than that it met with the approbation of the several members, who have, I believe, written such letters to their respective States as I desired.
My letter of the 15th of September, to the Governor of Massachusetts, was, as your Excellency will perceive, although the settlement of past accounts is mentioned in it, written in answer to his of the 23d of August, in which he tells me, that he will lay the business of the impost law candidly before the Legislature, but thinks it will go heavily through. I shall add nothing here to what is said in that letter.
My letter of the 20th of September to the Assembly of Pennsylvania, was written so particularly, in consequence of the authorities they had confided by their resolutions. I wrote to you respecting these resolutions, and my plans founded on them, the 21st of July, and I just mention here, by the way, that this plan has not been in any degree executed, for reasons not necessary to be at present enlarged upon. My letter to the Assembly of Pennsylvania, with the enclosures referred to in it as accounts of which I send you copies, will need no explanation, unless it be to mention that this State had issued one hundred thousand pounds, secured with interest on certain lands near the city, which is now nearly paid by the sales of these lands, and five hundred thousand pounds more not bearing interest, which was funded upon the Land Office, the dues to which were estimated at a much larger sum. I have sent this letter, as also my private letter of the 16th of October, to Governor Nelson, merely that you may be well apprized of the incessant attention, which is paid here to call forth our own resources. I might have added many other letters to particular States on particular occasions, but I dare say you will find this letter sufficiently voluminous.
Before I quit this subject of the past requisition of Congress, I must add that, notwithstanding my pressing instances, very little hard money has been obtained from the States; not more than one hundred thousand dollars during my whole administration. There has, indeed, been drawn forth some considerable specific supplies of provision, and there is on hand a great deal of paper money. From the former our army has been principally maintained, and indeed there is a small advance made to the Count de Rochambeau, which I mean to be in part of your promise mentioned in a former letter, and I here repeat to you my determination to comply with it as speedily as any convenience will possibly admit.
As to the paper money, it is of no use, although it is necessary, for evident reasons, to receive it in taxes. But the confidence of the people is so entirely lost, that for the present no bills of credit whatever can be made use of as money. I hope that the taxes laid and collecting in most of the States, will bring in all this useless load by the middle of next summer; and I have some expectation, that the States of Massachusetts, Connecticut, Pennsylvania, and Delaware, will be entirely rid of it by the spring. If I could buy anything with it, I would not, until the last necessity; but it will buy nothing, so that it must be burnt as soon as it honestly can.
The picture I have already given of this country will not be pleasing to you. Truth bids me add, that it will admit of a higher coloring. But what else could be expected from us? A revolution, a war; the dissolution of government, the creating of it anew; cruelty, rapine, and devastation in the midst of our very bowels. These, Sir, are circumstances by no means favorable to finance. The wonder, then is, that we have done so much, that we have borne so much, and the candid world will add, that we have dared so much. I could take up much of your time in recapitulating many less matters, which have tended to weaken the exertions we have otherwise been capable of. The confused state of public accounts, and the deplorable situation of credit for want of funds to secure, or means to redeem, the debt, for which the public faith is pledged, are, however, of such important operation, that I must not pass them over in silence.
In the enclosures your Excellency will have perceived, that I have noticed the effects, which follow from the want of a final settlement of accounts. Representations on the subject of these accounts, and also of certificates given by public officers in the Commissary's and Quarter Master's Departments for articles taken from the people had been made by some of the States to Congress. The impost asked for by Congress was, I have already observed, for the funding of our debts. On the 13th of October, I wrote a letter to the several loan officers, in which I expressly prohibit the issuing of any more Loan Office certificates. The reason for this order will appear more clearly from the latter part of my letter to the several Governors of the 16th of October.
I do hope and expect, that some methods will speedily be adopted by the United States in Congress assembled for settlement of the public accounts, as also to liquidate the several certificates given by the public officers, and to provide revenues for funding the public debts. The last of these objects must not, however, be urged with too much rapidity. The impost law is not yet passed, and is the first step. When that shall have been taken, it will give room for urging what further may be necessary. In the meantime, there is a well grounded expectation, that the clamors of our creditors will induce the several Legislatures to comply with the requisitions of Congress upon that subject.
From what has been said, your Excellency will perceive, that the prospect of future supplies from the several States, is by no means very brilliant. I send you the Act of Congress of the 29th of October, calling for eight millions of dollars, the Act of the 2d instant apportioning that demand among the several States, and the Act of the 12th instant, repealing (in consequence of my letter of the 5th) a part of the Act of the 2d. My circular letter of the 17th, enclosing those Acts to the Governors, will close what I have to say on the subject. But I must observe to you on my letter of the 5th to the President of Congress, that although it is strictly true, that I had not seen the estimates as mentioned in that letter, yet it is equally true, that until the business was nearly completed, I was supposed to have seen them, and when the contrary was suggested, they would have been sent from Congress, but that so few States were represented, as that only the number absolutely necessary to pass such requisitions were then present, and some of the representatives of those few were about to depart, wherefore it was waved. I have further to remark on the estimates themselves, that they are only for the feeding and paying the army. The expense of recruiting that army, of moving it from place to place, the heavy articles of clothing and ordnance, with expense of the hospitals, and the long train, which is comprehended under the title of contingencies, is totally unprovided for. Defective as it is, I have no hope that it will be complied with. The great arrearage of unfunded debt, the cumbrous load of useless paper, the multiplied mass of certificates, the distracted situation of the more southern States, the ravages which have been made in them, the total loss of their commerce, the real want of coin in many States, and the equal want of system in all. These, Sir, are circumstances, which forbid the most sanguine temper to expect a full compliance. It shall be my business, as it is my duty, to get as much as I can, and for this purpose, I shall make compositions; where it is necessary, take articles of provisions in lieu of money and the like. Still, however, I am convinced, that I shall not get what is asked for, and indeed I do not expect any part of it, before the middle of next campaign.
I have said, that I will make some remarks on the supplies already furnished by France. It is necessary to do this, as well because I am so unfortunate as to differ a little in opinion on the subject with the Minister of his Most Christian Majesty here, as because the demands we are to make on the Court for the next year, will depend on the compliances, which have been, and shall be, made with the grants for the present year.
It was a point understood in Congress very early, that his Most Christian Majesty would pay the interest of certain moneys to be borrowed by Congress in America. Your Excellency knows better than any other man what passed on that subject. It would, therefore, be absurd in me to recapitulate it. Those circumstances which rendered an express stipulation improper then, have introduced much delicacy into it now; and, therefore, I do not expect that the Court will recur to a formal acknowledgement of what was then, perhaps, rather a personal, than national, obligation. But I do expect that the payment of that interest will be provided for as heretofore, without considering the moneys appropriated to that purpose, as a relief to us in carrying on the war. You will have seen, Sir, from the course of my letters how much it is an object with me to collect from ourselves the revenues necessary to lighten our debts. There is a variety of reasons for it, which I will not repeat. Among them, however, this is one, that I wish to remove the load from France to ourselves. It will in the end be the same thing; because, in proportion as our resources here are appropriated, we must ask help there. But it would be better, that the people were taught to look at home for the basis of national credit, because there alone it can be found. I should not have mentioned this matter, but that you will find it noted in the correspondence between the Chevalier de la Luzerne and myself, of which copies are enclosed.
Shortly after the arrival of M. Gerard, it was understood that France would supply us with the clothing and warlike stores which might be necessary, and therefore it was, that Colonel Laurens, when in France, labored to prevent a deduction from the subsidy of six millions on account of the articles furnished to him. As I am persuaded that his efforts were in consequence of your advice, and in concert with you, I shall say nothing more upon that subject, only to lament that the Court have differed from you in opinion, and to acquiesce in their determination, on the principle, that those who give have a right to dispose of that which is given.
By a note from the Count de Vergennes, of which I enclose a copy, I perceive that the Court granted the United States as a gift, six millions; advanced to you four millions to pay the bills which might be drawn on you; and became security for a loan of ten millions; the amount of which was to be advanced from the royal treasury, in case the loan should fail of success. The expression, as to this last object, is strong, namely, that his Majesty will see himself under the necessity of supplying the deficiency, although, in the former part of the note it is said, that he will supply it from his own finances as soon as possible. An expression which, while at the first blush it makes an earnestness of affection, may be, and in fact has been, construed into a kind of cautionary provision. Your Excellency will also, I doubt not, observe what is there said of the appropriation of the gift, the last two millions whereof, as is already observed, we did not expect to find there.
Enclosed also is an account delivered by the Minister of France in the month of September to a committee of Congress, which had been appointed to confer with him. There are striking differences between this account and the note last mentioned. But by this account it appears, that it was the design of the Court to make the advances of the present year distinct from all past transactions. From whence this conclusion, at least, will follow, that such of the bills drawn by Congress, either on yourself, or on their agents in Spain, or Holland, as you may have discharged before the commencement of the present year, are not to be deducted from the sums mentioned in the Count de Vergennes' note. Now that I am on this subject, I will observe to you, Sir, that I have determined to prevent that circuitous negotiation of bills, which has so much perplexed and distressed you, and have for that reason stopped many of those already drawn, as will presently appear. Another observation to be made on this account is, that no notice is taken of the four millions expressly mentioned in the Count de Vergennes' note, as granted to you for payment of bills drawn by Congress.
A third observation is, that the articles marked B, and the article number two, C, which together amount to the sum of six million, six hundred and eightysix thousand one hundred and nine livres, are all charged as being expended to the order of Colonel Laurens. But by the Count de Vergennes' letter to you of the 8th of June last, it appears, that Colonel Laurens was to have had the command of no other than the six million livres, given by the King. Indeed the Count's note of the 16th of May shows the same thing. The letter of the 8th of June just mentioned, shows clearly the opinion of the Court on another point of very great importance, namely, that the whole ten million livres, to be advanced for the loan, are, as in effect they ought to be, subject to the disposition of the United States only. A fourth observation is, that the article A three, B two, and C one, amounting to four millions three hundred thousand livres, were, or were to have been, in your possession for payment of bills. If to this be added four million livres, granted for that express purpose, of which no mention is made in the account, it would follow, that you would have eight millions three hundred thousand livres at your disposal; and this leads me to consider the amount of the demands, which could be made on you.
These cannot be precisely ascertained, but the paper number seventeen, contains the best estimate, in my power. The first six articles of this estimate contain all the bills, which have been drawn upon you, excepting some interest bills, which although made out had not been delivered to the people before the 1st of April last. These amount to ten millions six hundred and seventyone thousand four hundred and fiftysix livres, thirteen sols, four deniers. The article number seven, is the whole amount of guilders drawn for; the far greater part of which I have detained, as you will perceive by the article number eight. The balance it is not possible to ascertain exactly in livres, because it must depend upon the course of exchange; but at two livres for a guilder, the whole of the bills actually negotiated on Holland will amount to one million ninetyfour thousand seven hundred and twentynine livres. The article number nine, is the amount of bills drawn on Spain, of which a considerable part has been paid by Mr Jay, and a part, somewhat more considerable, is destroyed. These parts are contained in the articles ten and eleven. The balance (calculated at the value of a dollar in France, which will, I suppose, be as much as it can cost) amounts to one million seventyseven thousand two hundred and eighteen livres. So that the whole of those bills, which by any means whatever could have come upon you for payment, will be twelve millions eight hundred and fortythree thousand four hundred and three livres, thirteen sols, four deniers, and from this sum very considerable deductions are to be made. The article number twelve, which is the first of them, contains the exact amount of the several bills for interest, which were negotiated previously to the first of April last.
It may be objected, that these bills will many of them be payable during the present year; which indeed, is true, and for that reason, I have added to the bottom of the account the extent of one year's interest on Loan Office certificates, and which is more than will, I believe, be presented. The next article, number thirteen, is for bills which had been drawn on you, and have been stopped by me. The article, number fourteen, is, you will perceive, for bills, which in all human probability will have been paid during the last year. The certainty of this transaction is doubtless with you, and what we are now upon is an estimate, not an account. The remaining articles speak clearly for themselves; wherefore I conceive myself well founded in making the amount of deductions in this estimate, nine millions one hundred and sixtythree thousand two hundred and sixtyfive livres; so that after including one year's interest, as is already mentioned, the total is five millions eight hundred and seventythree thousand one hundred and twentyeight livres, thirteen sols, and four deniers; and from this there must be some deductions, because undoubtedly you have paid some of the bills drawn on Spain and Holland before the first day of January last. I have mentioned no sum for this purpose, but in order to be within bounds, I will suppose it to be only three hundred and seventythree thousand one hundred and twenty eight livres, thirteen sols, and four deniers, and then the extent of the bills payable by you in the year 1781, will be five millions and a half of livres; and, therefore, the four millions granted by the Court, and the million and a half said to be stopped by you in Holland, will apply to this demand.
As the last mentioned sum appears by the Count de Vergennes' note, to have been part of that, which was given by the Court, this state of the matter will leave clear the ten million livres to have been loaned, and seems properly to consist with the Count's note of the 16th of May, and his letter to you of the 8th of June following. I have mentioned above, that in making the deduction for bills paid previous to the year 1781, I meant to be within bounds. It is proper to give a reason why I supposed that deduction to be so. I have already made one remark on the article A one two and F, in the account officially communicated by the Minister of France in September last. From those articles it appears at least that three million livres were advanced for the payment of bills last year. The amount of the interest bills, I have already stated as being in the extent, two millions one hundred and ninetythree thousand nine hundred and ninety livres, to this sum must be added one hundred and fortyfour thousand livres, due to M. Beaumarchais, and the one hundred and twentyfive thousand livres deducted in the estimate, as having been drawn for by the Resolutions of the 19th of May, 1780. These sums together amount to two millions four hundred and sixtytwo thousand nine hundred and ninety livres; to which I will add for contingencies one hundred and thirty seven thousand and ten livres more, making the whole amount two millions six hundred thousand livres; wherefore suppose the grant of moneys to pay bills for the year 1780, to have been but three million livres, and it appears evidently to have been at least that, there would have remained in your hands a balance of four million livres; which is more than I have deducted from the amount of my estimate.