Chapter 25

In consequence of the resolutions of Congress on the 15th instant, and the express declarations of the Secretary at War, respecting the sense and expectations of Congress, arrangements have been agreed upon between him and me, for an immediate liberation of all land prisoners; and I have yesterday given this information to Sir Guy Carleton. The particulars of the arrangement, with the opinion given the British Commander in Chief, you will obtain through the Minister at War.

In order to obtain the sense of Sir Guy Carleton upon the matters, contained in the resolution of the 15th, I have proposed a personal interview with him at an early day. The result of this meeting, if acceded to, will probably lead us to a decision upon some questions, which are more doubtful, and that with greater decision and despatch, than could otherwise be procured.

I have the honor to be, &c.

GEORGE WASHINGTON.

* * * * *

GEORGE WASHINGTON TO ROBERT R. LIVINGSTON.

Head Quarters, May 13th, 1783.

Sir,

Your favor of the 3d came to hand by the last post. Before this time you will have seen the report I made to Congress of the interview with Sir Guy Carleton. I am very sorry its result proved so indecisive. That this arises from the cause you mention I am not fully persuaded. I believe a want of information from his Court, which had been for some time without any administration, has been a great embarrassment to him.

The civil jurisdiction of West Chester County Sir Guy Carleton appeared very willing, in his conversation, to relinquish to the State; but what reply he will make to the Governor, when he comes to reduce it to writing, I know not. Long Island he seemed to think could not be so easily delivered up. It would be attended with many inconveniences, and he mentioned particularly the facility it would give to desertions, and the necessity of holding it for the accommodation of those people, who must eventually be obliged to leave the country. Staten Island was also necessary for his convenience.

I have had no reply from Sir Guy since his return to New York, nor, I presume, has Governor Clinton heard anything from him.

I have the honor to be, &c.

GEORGE WASHINGTON.

* * * * *

TO THE CHAIRMAN OF A COMMITTEE OF CONGRESS.

Philadelphia, May 19th, 1783.

Sir,

The inquiries that the committee were pleased to do me the honor to make this morning, relative to my continuing to exercise the office of Secretary of Foreign Affairs, were extremely embarrassing to me, because, on the one hand, I find it impossible to continue in the office on the present establishment, without material injury to my private affairs, and, on the other, to propose the terms on which I would stay would be to overrate my own importance, and to suppose that others could not be had upon such conditions as Congress have been pleased to consider as sufficient. Having given my whole time, and a considerable part of my property to the public during the war, I see, with pleasure, that the affairs of the United States are not now in such a situation as to render the contributions of an individual necessary. It is my wish to endeavor to repair the injuries my estate has sustained by the ravages of the enemy, and my own neglect, by the offices I have held.

From my former letter, Congress will be able to judge how far my expenses in the office exceed the salary. But as it by no means follows, that another by greater economy and humbler, but, perhaps, more just ideas of the importance of this office, could not live at less expense, I do not think that mine should be any reason to induce Congress to make other changes, than such as they shall of themselves deem necessary. And in this view, I requested the committee, that called upon me last winter, to keep the matter of emoluments entirely out of sight in their report, as I then considered my stay only as a temporary inconvenience.

At present, Sir, I must choose between the office I have been honored with from Congress and an important State office. If I continue in the first, I must suppose it the business of years, and lose sight of all other objects in my own State, where I have something to hope from my connexions and the favor of my countrymen, and where I possess an estate, the value of which depends in a great measure upon my attention to it. Under these circumstances, I flatter myself that the committee will not think me blamable, when I assure them, that though I am willing to give my time and services to the public if they should be deemed necessary, yet I cannot in justice to myself or my family, add to this gift that of such a portion of my property as I find absolutely necessary to support the office I hold.

Permit me, Gentlemen, to add, that having no wishes upon this subject, I am sincerely desirous that personal considerations may not enter into the arrangements that Congress make thereon. I feel myself extremely honored by the attention they have shown me in directing you to confer with me on this subject; and I reflect with great pleasure on the reasons I have had to be satisfied with their conduct towards me since I have been honored with the office.

I am, Gentlemen, &c.

ROBERT R. LIVINGSTON.

* * * * *

TO JOSEPH NOURSE.

Philadelphia, May 26th, 1783.

Sir,

In compliance with your request, I have collected from the papers in my office the following account of the moneys received by loans, or otherwise, from Holland, France, and Spain.

The first loan that was opened in Holland on our account with success, was opened by His Most Christian Majesty, and under his special guarantee, for ten millions of livres. Since that, another loan was contracted by Mr Adams with private banking houses, to the amount of five millions of florins.

These houses, in a letter directed to me of the 16th of August last, write that they had at that time in cash by them, one million four hundred and eightyfour thousand florins, of which the interest ran as follows;

1,314,000 florins, from the 1st of June,

170,000 florins, from the 1st of July.

They add, that they had already paid to the order of Mr Adams, in favor of sundry individuals, the sum of two thousand nine hundred and two florins, and that that Minister had hinted to them, that it would be necessary to pay some drafts of Mr Laurens's when arrived, and a few other unavoidable expenses, which would amount to about two hundred thousand florins. By a letter of the 18th of November last, they have acknowledged the receipt of the contract duly ratified, so that the money they had on hand has been since that time at the disposal of Congress.

The moneys received from France before the year 1780, cannot be very accurately stated, for the want of order in the books kept by the Committee of Foreign Affairs. By the best estimate I have been able to make, the amount of such moneys appears to be about nine millions of livres, exclusive of one million received from the Farmers-General on a particular contract. To this, must be added the grants obtained by Colonel Laurens, which, _including_ military stores, amount to fourteen millions of livres. So that the whole of the money received from France, amounts to about four and twenty millions tournois. I should observe, that I have not here made any distinction between loans and gifts, though about eight millions of the above sum have been granted by France without any expectation of being repaid.

From Spain we have only received one hundred and fifty thousand dollars, which were granted to Mr Jay in the beginning of the year 1780.

I have not mentioned the engagement, which France has lately entered into to supply the United States with six millions of livres, as you may find everything that relates to it in the appendix to the address of Congress to the States.

I have the honor to be, &c.

ROBERT R. LIVINGSTON.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Philadelphia, June 2d, 1783.

Sir,

I have the honor to submit to Congress a letter from M. Dumas, with several papers relative to a negotiation, which appears to have been commenced by the States of Holland with our Ministers. As this subject may be very important in its consequences, it is to be presumed, that they would wish to have the direction of Congress. I would therefore take the liberty to suggest, that these papers be committed to a special committee.

As my stay in town will not admit of my executing the commission, which M. Van Berckel requires, I must pray Congress also to give some direction therein.

I have the honor to be, &c.

ROBERT R. LIVINGSTON.

THE

CORRESPONDENCE

OF

ROBERT MORRIS,

SUPERINTENDENT OF FINANCE.

During the first years of the Revolution the financial concerns of Congress were managed by a Committee, under the general supervision of that body. Disorder and confusion were the gradual results of such a system. It was at length resolved to put this Department into the hands of a responsible individual, and ROBERT MORRIS was unanimously chosen _Superintendent of Finance_, on the 20th of February, 1781. Various reasons prevented his engaging in the duties of the office till the May following.

The high expectations of Congress, and of the country, were fully answered by the ability and success with which Mr Morris administered the affairs of this new Department. Funds were provided, and public credit restored. He remained in office till November 1st, 1784.

Nothing can afford a stronger proof of his zeal, assiduity, and unwearied labor, than the correspondence which he has left respecting the transactions of his office. The letters here published are a selection only from the large mass, which has been preserved. They pertain chiefly to the foreign relations of the United States, either as effected by European loans, or by the agency of the internal resources of the country. In fact, all the financial operations of Congress were more or less connected with their Foreign Affairs since loans from abroad were necessary, and these could be produced only on the strength of public credit and the means of sustaining it at home.

THE

CORRESPONDENCE

OF

ROBERT MORRIS.

* * * * *

ORGANIZATION OF THE FINANCE DEPARTMENT.

In Congress, February 7th, 1781.

Congress resumed the consideration of the plan for the arrangement of the civil executive departments of the United States; and thereupon,

Resolved, That there be a Superintendent of Finance, a Secretary at War, and a Secretary of Marine;

That it shall be the duty of the Superintendent of Finance, to examine into the state of the public debts, the public expenditures, and the public revenue; to digest and report plans for improving and regulating the finances, and for establishing order and economy in the expenditure of the public money; to direct the execution of all plans, which shall be adopted by Congress respecting revenue and expenditure; to superintend and control the settlement of all public accounts; to direct and control all persons employed in procuring supplies for the public service, and in the expenditure of public money; to obtain accounts of all the issues of the specific supplies furnished by the several States; to compel the payment of all moneys due to the United States, and in his official character, or in such manner as the laws of the respective States shall direct, to prosecute in behalf of the United States, for all delinquencies respecting the public revenue and expenditures; to report to Congress the officers who shall be necessary for assisting him in the various branches of his Department.

_In Congress, February 20th._ Congress proceeded to the election of a Superintendent of Finance; and the ballots being taken, Robert Morris was unanimously elected.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Philadelphia, March 13th, 1781.

Sir,

I had the honor to receive your Excellency's letter of the 21st of last month, enclosing the Act of Congress of the 20th, whereby I am appointed, by a unanimous election of that honorable body, to the important office of SUPERINTENDENT OF FINANCE. Perfectly sensible of the honor done me by this strong mark of confidence from the sovereign authority of the United States, I feel myself bound to make the acknowledgments due, by pursuing a conduct formed to answer the expectations of Congress, and promote the public welfare. Were my abilities equal to my desire of serving America, I should have given an immediate determination after this appointment was made; but conscious of my own deficiencies, time for consideration was absolutely necessary. Little, however of that time, which has elapsed have I been able to devote to this object, as the business before the Legislature of Pennsylvania wherein I have the honor of a seat, has demanded and continues to demand my constant attendance.

So far as the station of Superintendent of Finance, or indeed any other public station or office, applies to myself I should without the least hesitation have declined an acceptance; for after upwards of twenty years assiduous application to business as a merchant, I find myself at that period when my mind, body, and inclination combine to seek for relaxation and ease. Providence had so far smiled on my endeavors as to enable me to prepare for the indulgence of these feelings, in such a manner as would be least injurious to the interest of my family. If, therefore, I accept this appointment, a sacrifice of that case, of much social and domestic enjoyment, and of every material interest, must be the inevitable consequence; and as my ambition was entirely gratified by my present situation and character in life, no motive of that kind can stimulate me to the acceptance.

Putting myself out of the question, the sole motive is the public good; and this motive I confess comes home to my feelings. The contest we are engaged in appeared to me, in the first instance, just and necessary; therefore, I took an active part in it. As it became _dangerous_, I thought it the more _glorious_, and was stimulated to the greatest exertions in my power, when the affairs of America were at the worst. Sensible of the want of arrangement in our monied affairs, the same considerations impel me to this undertaking, which I would embark in without hesitation, could I believe myself equal thereto; but fearing this may not be the case, it becomes indispensably necessary to make such stipulations, as may give ease to my feelings, aid my exertions, and tend to procure ample support to my conduct in office, so long as it is founded in and guided by a regard to the public prosperity.

In the first place then, I am to inform Congress, that the preparatory steps I had taken to procure to myself relaxation from business, with least injury to the interests of my family, were by engaging in certain commercial establishments with persons, in whom I had perfect confidence as to their integrity, honor, and abilities. These establishments I am bound in honor and by contracts to support to the extent agreed on. If, therefore, it be in the idea of Congress, that the office of Superintendent of Finance is incompatible with commercial concerns and connexions, the point is settled; for I cannot on any consideration consent to violate engagements or depart from those principles of honor, which it is my pride to be governed by. If, on the contrary, Congress have elected me to this office under the expectation, that my mercantile connexions and engagements were to continue, an express declaration of their sentiments should appear on the minutes, that no doubt may arise or reflections be cast on this score hereafter.

I also think it indispensably necessary, that the appointment of all persons who are to act in my office, under the same roof, or in immediate connexion with, should be made by myself; Congress first agreeing, that such secretaries, clerks, or officers, so to be appointed are necessary, and fixing the salaries for each. I conceive, that it will be impossible to execute the duties of this office with effect, unless the absolute power of dismissing from office or employment all persons whatever, that are concerned in the official expenditure of public moneys, be committed to the Superintendent of Finance. For unless this power can be exercised without control, I have little hopes of efficacy in the business of reformation, which is probably the most essential part of the duty.

These being the only positive stipulations that occur to me at this time, the determination of Congress thereon will enable me to determine whether to accept or decline the appointment. I must, however, observe that the act of Congress of the 7th of February, describing the duties of the Superintendent of Finance, requires the execution of many things, for which adequate powers are not provided, and it cannot be expected, that your officer can in such case be responsible. These however may be the subjects of future discussions.

With sentiments of the highest respect, for you and Congress, I have the honor to subscribe myself, your Excellency's most obedient and most humble servant.

ROBERT MORRIS.[30]

FOOTNOTES:

[30] During the whole period in which Mr Morris held the office of Superintendent of Finance, he kept a _Diary_, in which he entered daily the principal transactions of his department. The following is an extract from the Diary.

"On the 21st of February I received a letter from the President of Congress, enclosing the resolves of the 20th, whereby I was unanimously elected the Superintendent of Finance of the United States. This appointment was unsought, unsolicited, and dangerous to accept, as it was evidently contrary to my private interest, and if accepted must deprive me of those enjoyments, social and domestic, which my time of life required, and to which my circumstances entitled me; and a vigorous execution of the duties must inevitably expose me to the resentment of disappointed and designing men, and to the calumny and detraction of the envious and malicious. I was therefore determined not to engage in so arduous an undertaking. But the solicitations of my friends, acquaintance, and fellow citizens, a full conviction of the necessity, that some person should commence the work of reformation in our public affairs, by an attempt to introduce system and economy, and the persuasion, that a refusal on my part, would probably deter others from attempting this work, so absolutely necessary to the safety of our country; these considerations, after much reflection and consultation with friends, induced me to write a letter to the President of Congress, dated the 13th of March, 1781."

* * * * *

PROCEEDINGS IN CONGRESS.

_March 20th._ A letter of the 13th instant from Robert Morris was taken into consideration, and it was

_Resolved_, that the United States in Congress assembled do not require him to dissolve the commercial connexions referred to in the said letter.

_March 21st._ The consideration of the letter of the 13th instant, from Robert Morris being resumed, a motion was made, and it was

_Resolved_, that the Superintendent of Finance be, and he is hereby empowered to appoint and remove at his pleasure, his assistants in his peculiar office or chamber of business in immediate connexion with him; it being first determined by the United States in Congress assembled, that such assistants so to be appointed are necessary, and what the salary of each shall be.

_Ordered_, that the remainder of Mr Morris's letter be referred to a committee of three. The members appointed were Messrs Houston, Burke, and Wolcott.

* * * * *

TO THOMAS BURKE, WILLIAM HOUSTON, AND OLIVER WOLCOTT, COMMITTEE OF CONGRESS.

Date Uncertain.

Gentlemen,

When I had the honor of a visit from you on the subject of my interview with Congress, it was agreed that I should make out and deliver you a list of the several officers concerned in the expenditure of public money, over whom I judged it necessary for the Superintendent of Finance to have the uncontrolled power of dismission. But on reflection I found it was not in my power to render such a list, because I do not know the several degrees of officers now in employment, and even if I did, such a list would not answer the end, because others may hereafter be created, who should also be subjected to the power of the Financier, and it would be very troublesome for Congress on every such appointment to pass a resolution for the purpose. There will also be appointments made occasionally by the Commander in Chief, the Heads of Department, and by other officers, in which the expenditure of public moneys will be involved, and of course such appointments must also be subject to the same authority. For these reasons, it seems proper that the power of the Minister of Finance, with respect to the control and dismission from office of all persons concerned in the expenditure of public property, should be defined in one Act of Congress, vesting him with that authority.

To me it appears absolutely necessary, that this power should be vested in the Financier to enable him to remedy and prevent public abuses; and the _extent_ should be measured by the _necessity_ and the _use_. As to myself, I am far from desiring power for the sake of power. Indeed I think it is generally more dangerous to the possessor than to the objects of it. Consequently I cannot have a wish to extend it beyond the necessity and utility mentioned.

The whole business of finance may be described in two short but comprehensive sentences, if I have proper notions on the subject. _It is to raise the public revenues, by such modes as may be most easy and most equal to the people; and to expend them in the most frugal, fair, and honest manner._ In our case the first part must ever be the business of Congress, and the Legislatures of the respective States; because the powers of taxation cannot be delegated. The second I take to be the most essential part of the duty of the Superintendent of Finance. He must ever have it in view to reduce the expenditures as nearly as possible to what in justice and in reason they ought to be; and to do this, he must be vested with power to dismiss from employment those officers he shall find unnecessary, unequal to their stations, inattentive to their duty, or dishonest in the exercise of it.

In a monarchy this power need not be officially vested in a Minister, because he can have constant intercourse with the Sovereign, and by that means he is in the daily exercise of it. Where the sovereignty is vested in a public body of men, such an intercourse is impracticable; and I am persuaded that a Minister who would venture to execute the duties of his office with vigor, without possessing uncontrolled the power of dismission, would in a few months put it out of his power to proceed in his business, and Congress would have full employment to hear and determine between him and suspended officers. On the contrary, if a dismissed officer can have no appeal but to the laws of the land, Congress will not be troubled, business may be conducted with decision, and the very knowledge that such a power exists, will have a tendency to prevent the frequent exercise of it, after the first reforms are effected.