Chapter 26

I have been told, that some gentlemen considered the expressions in my letter to Congress on this subject so general as that they might be construed to comprehend the Commander in Chief, Heads of Department, &c. But this cannot be. The Commander in Chief is not concerned himself, but employs others in the expenditure of public money, to whom he grants warrants or drafts on the military chest; and the persons so employed ought to be accountable, and subject to dismission. I suppose officers of the army may frequently be so employed, and in that case it cannot be supposed, that the power of the Financier extends to the military commission, for it certainly must be confined to the money matters. There is one exception with respect to what I have said of the Commander in Chief, and that is the expenditures for secret service, and in this respect I think he should be responsible to the Sovereign only.

The Quarter Master General, having a military as well as a civil duty, he cannot be under the control of the Financier, for the first, although he certainly ought to be the last, which has great connexion with heavy expense, and perhaps it would be best, that he should execute all the business of expenditures by one or more deputies, which would exonerate him from that power, which they must be subjected to. The Commissary General, and every person employed under him, are the immediate objects of this power. The Paymaster General, may be considered as a channel of conveyance, through which money passes from the treasury to the army, and as he is subjected to the law military, the Minister of Finance needs no other authority over him and his officers, than the power of putting under arrest and suspending for mal-conduct in office.

All persons employed as Commissaries of military stores, of clothing, or any other denomination, wherein the expenditure of public money or property is connected, ought to be subjected to this authority. The expenses in the medical department are said to have exceeded those of the like kind in any other country. It is, therefore, evident that the Purveyors, Commissaries, &c. in this department should be subject to the same immediate control as others; and although the Financier cannot judge of the medical skill of the Director General and his officers, yet if any waste or misapplication of public property in their department should come to his knowledge, he should have authority to bring offenders to a Court Martial.

There is no possibility of introducing public economy without the frequent adjustment of accounts; and the more various these may be, the greater is the necessity of constant attention to liquidate them speedily and well. The Financier ought, therefore, to have the power of removing any of the officers, whose business it is to examine and settle the public accounts, that so he may be enabled to obtain a proper and early settlement, and prevent the dangerous effects of inattention or corruption on one hand, or of delay, insolence, and tyranny to individuals concerned in such accounts, on the other. And on account of this power the Financier should have no accounts with the public himself, but wherever expenditures are necessary in his department, he should employ proper persons therein, subject to the same powers and modes of accounting with every other person employed in expending public property; or if of necessity he shall at any time have accounts with the public, Congress can appoint a committee, or special board, to examine and settle his accounts.

From what I have already said, I think it is evident, that the power I have stipulated for is absolutely necessary; and although it is not possible to enumerate every object of that power, yet the general lines within which they may be comprehended can be drawn from the observations I have made, although I have said our foreign departments, as these may be brought into consideration hereafter when it shall appear necessary.

Whoever contemplates the extent of the United States, and the vast amount of their present expenses, while at the same time all our operations languish, must certainly be convinced that some immediate remedy ought to be applied. The office of Superintendent of Finance I suppose is meant as one means of restoring economy and vigor; and nothing will keep up in the minds of the public servants such a constant sense of their duty, as a knowledge of the power to remove them in the hands of a person of vigilant and decisive character. Whether I shall have sufficient courage and perseverance to act up to that character, and whether my small abilities, supported by application and attention, will enable me to render essential service in the execution of this office, is become an object of great consideration, that fills my mind with much apprehension, and induces me to wish I had declined this arduous undertaking in the first instance.

I have the honor to be, &c.

ROBERT MORRIS.

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PROCEEDINGS IN CONGRESS.

_April 21st._ On a report of the committee, to whom was referred Mr Morris's letter of the 13th of March,

_Resolved_, That the Superintendent of Finance be, and he is hereby authorised, to remove from office or employment, for incapacity, negligence, dishonesty or other misbehavior, such persons, not immediately appointed by the United States in Congress assembled, as are or may be officially intrusted with, and immediately employed in the expenditure of the public supplies, stores, and other property; in stating, examining and passing the public accounts, or in the receipt of the continental revenues of the United States, and such of the said persons as are or may be in his judgment unnecessary, reporting to such authority, board, minister, or office, to whom it may belong to supply the vacancy, the respective names of the persons so removed.

That he be authorised to suspend from office or employment, for similar causes, persons officially employed and intrusted as aforesaid, immediately appointed by the United States in Congress assembled, reporting forthwith their names and the reason of suspension.

Provided, that in all cases where any of the persons aforesaid, are or may be amenable to the law martial, the Superintendent be, and he is hereby authorised and directed, if he shall deem it most expedient for the public service, to put them in arrest by order in writing, and to apply to the officer whose duty it may be, to order a court martial; and such officer is hereby directed to order proceedings on the arrest accordingly.

That in every case of suspension, all pay and emoluments cease from the date thereof, unless the persons suspended be, upon trial, acquitted and restored; and the Superintendent shall have power to supply the place when it may be necessary, by a temporary appointment, to continue until the person suspended be restored or dismissed.

That the aforesaid powers shall not be construed to interfere with the rank, commission, or military duty of any officer in the line of the army, or those who may be duly intrusted with money for secret services by Congress, or the Commander in Chief of the army, or commanding officer of a separate department.

That the powers aforesaid be exercised during the pleasure of Congress, but not to extend beyond the duration of the war.

_April 27th._ On a further report of the committee on Mr Morris's letter of the 13th ultimo,

_Resolved_, that in order that the Superintendent of Finance may be at liberty to devote his time and attention to the more immediate duties of his office, he be, and hereby is authorised, to appoint by letter of attorney, or otherwise, such person or persons, as he may think proper, to prosecute or defend for him, in his official capacity, or in behalf of the United States, in all places where the same may be necessary.

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TO THE PRESIDENT OF CONGRESS.

Philadelphia, May 14th, 1781.

Sir,

The honor conferred by Congress in appointing me Superintendent of Finance, their several resolutions of the 20th of March, and the 21st and 27th of April, which your Excellency has been pleased to transmit, and a serious conviction of that duty, which every citizen owes to his country, especially in times of public calamity, will no longer permit me to hesitate about the acceptance of that office, although I must again repeat, that I have the fullest sense of my own inability. I shall, however, strive to find such assistance as will enable me, in some measure, to answer the reasonable expectations of Congress, to whom I can promise for myself nothing more than honest industry.

You will readily perceive, that much time must be consumed in procuring proper officers; fixing on men for assistants, whose abilities and integrity may be depended on; in laying plans for obtaining money with the greatest ease to the people, and expending it with the greatest advantage to the public; forming arrangements necessary to carry these plans into execution; and obtaining information as to the present state of things, in order that abuses may be, if possible, speedily and effectually remedied.

Besides this, it will be necessary that I should confer with the Commander in Chief, on the various expenditures of the war, and the means of retrenching such as are unnecessary. Let me add, that the accounts of my private business must be adjusted, so as that all my affairs may be put into the hands of other persons, and subjected to their management. My necessary commercial connexions, notwithstanding the decided sense of Congress, expressed in their resolution of the 20th of March, might, if the business were transacted by myself, give rise to illiberal reflections, equally painful to me and injurious to the public. This reason alone would deserve great attention; but, further, I expect that my whole time, study, and attention will be necessarily devoted to the various business of my department.

Having thus stated some of the causes, which will prevent me from immediately entering on the arduous task assigned me, I pray leave to call the attention of Congress to the advanced season, and then I am persuaded their own good sense will render it unnecessary for me to observe, that very little can be expected from my exertions during the present campaign; they will, therefore, easily perceive the propriety of the request I am to make, that the business may go on according to the present arrangements, or such other as Congress may devise, until I can take it up, which I promise to do as speedily as possible. By this means, I may be enabled so to dispose of the several members of my department, as to form them into a regular system; whereas, by throwing the whole immediately upon me, I shall be inevitably involved in a labyrinth of confusion, from which no human efforts can ever afterwards extricate me.

Another consideration of great magnitude, to which I must also pray the attention of Congress, is the present public debts. I am sure no gentleman can hope that these should be immediately paid out of an empty treasury. If I am to receive and consider the applications on that subject, if I am to be made responsible, that alone will, I fear, be full employment for the life of one man, and some other must be chosen to attend to the present and provide for the future. But this not all; if from that, or any other cause, I am forced to commit a breach of faith, or even to incur the appearance of it, from that moment my utility ceases. In accepting the office bestowed on me, I sacrifice much of my interest, my ease, my domestic enjoyments, and internal tranquillity. If I know my own heart, I make these sacrifices with a disinterested view to the service of my country. I am ready to go still further; and the United States may command everything I have, except my integrity, and the loss of that would effectually disable me from serving them more. What I have to pray, then, is, that the adjustment of all past transactions, and of all that relates to the present system, may be completed by the means already adopted, that whatever remains unpaid may become a funded debt, and that it may in that form be committed to me, to provide for the yearly interest and for the _eventual_ discharge of the principal. This task I will cheerfully undertake; and if, in the progress of things, I am enabled to go further, with equal cheerfulness it shall be done; but I must again repeat my serious conviction, that the least breach of faith must ruin us forever.

It is not from vanity that I mention the expectations, which the public seem to have formed from my appointment. On the contrary, I am persuaded, they are raised on a weak foundation, and I must lament them, because I foresee they must be disappointed. I must, therefore, entreat that no flattering prospect of immediate relief may be raised.

Congress will know that the public credit cannot be restored without method, economy, and punctual performance of contracts. Time is necessary to each; and therefore the removal of those evils we labor under can be expected from time only. To hold out a different idea would deceive the people, and consequently injure the public service.

I am sure it is unnecessary to add, before I close this letter, that I confidently expect my measures will meet with the fullest support from Congress, so long as they are honestly directed to the general welfare. In this conviction, and with every sentiment of respectful attention, I have the honor to be, &c.

ROBERT MORRIS.[31]

FOOTNOTES:

[31] _May 14th._ Wrote a letter to the President, promising to accept the office. At this time, however, various reasons occurred to prevent an immediate acceptance of the Commission; but particularly it was necessary to retain my seat in the Assembly of Pennsylvania, in order to lay a foundation for such measures as might tend to their support of me in pursuing the public good, not doubting but their example would have proper influence on the Legislatures of the other States, especially in their determination upon general points, such as their repealing those tender and penal laws, which in their operation had destroyed all public and private confidence and credit; in passing effective tax bills, that might yield substantial aid to the United States for calling in the paper money, that had lost its credit; and is adopting plans of reviving and establishing the credit of such as had been injured in some degree, but which, being necessary in circulation, and originally issued on funds sufficient for its redemption, ought not to be given up to ruin, if possible to prevent it. _Diary._

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TO THE PRESIDENT OF CONGRESS.

Philadelphia, May 17th, 1781.

Sir,

I beg leave to submit the enclosed plan for establishing a National Bank in these United States, and the Observations on it, to the perusal and consideration of Congress.

Anticipation of taxes and funds is all that ought to be expected from any system of paper credit. This seems as likely to rise into a fabric equal to the weight, as any I have yet seen or thought of; and I submit whether it may not be necessary and proper, that Congress should make immediate application to the several States, to invest them with the powers of incorporating a bank, and for prohibiting all other banks, or bankers, in these States, at least during the war.[32]

I have the honor to be, &c.

ROBERT MORRIS.

FOOTNOTES:

[32] See the _Plan of the National Bank_ here mentioned, and also the _Observations_ on it, in _John Jay's Correspondence_, Vol. VII. p. 444.

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TO THE PRESIDENT OF CONGRESS.

Philadelphia, May 23d, 1781.

Sir,

As I have heard in times past, that the treasury has frequently been in want of hard money, to comply with engagements made with the approbation of Congress, and sometimes obliged to obtain it on terms inconsistent with the dignity of government, and not very consonant to the public interest, I would wish to guard against the like inconveniences by importing from foreign countries a supply at least sufficient to pay rents of the houses and offices necessarily employed for the Continental service; also to answer, as far as may be, the calls for secret service. And even if I could devise the means of obtaining it, I should suppose it would be agreeable to bring such sums as may answer other valuable purposes; but as it cannot be imported but at the risk of being captured by the enemy, and the danger of the elements, you will perceive the necessity of my being authorised by Congress to enter on and execute this business at the risk, and for account of the Continent, on the best terms in my power.

The sum may be limited if thought needful; although I should suppose it is not possible in our circumstances to obtain too much; yet the sum to be risked in any one bottom may very properly not exceed a certain amount in a line of battle ship or frigate, and a smaller in any one merchant vessel. Should Congress think proper to authorise these measures, as I hope they will, the private journals will be most proper to insert the proceedings in; as a want of secrecy may endanger the money.

I have the honor to be, &c.

ROBERT MORRIS.

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TO ALEXANDER HAMILTON.

Philadelphia, May 26th, 1781.

Sir,

It is some time since I received your performance, dated the 30th of April last. I have read it with that attention, which it justly deserves, and finding many parts of it to coincide with my own opinions on the subject, it naturally strengthened that confidence, which every man ought to possess to a certain degree in his own judgment.

You will very soon see the plan of a bank published, and subscriptions opened for its establishment, having already met with the approbation of Congress. It only remains for individuals to do their part, and a foundation will be laid for the anticipation of taxes and funds, by a paper credit that cannot depreciate. The capital proposed fell far short of your idea; and, indeed, far short of what it ought to be; but I am confident if this is once accomplished, the capital may afterwards be increased to almost any amount. To propose a large sum in the outset, and fail in the attempt to raise it, would be fatal. To begin with what is clearly within our power to accomplish, and on that beginning to establish the credit, that will inevitably command the future increase of capital, seems the most certain road to success.

I have thought much about interweaving a security with the capital of this bank, but am apprehensive it would convey to the public mind an idea of paper being circulated on that credit, and that the bank in consequence must fail in its payments, in case of any considerable run on it; and we must expect, that its ruin will be attempted by external and internal foes. I have, therefore, left that point to the future deliberations of the Directors of this bank, to whom in due time, I shall communicate your address.

I esteem myself much your debtor for this piece, not merely on account of the personal respect you have been pleased to express, but chiefly on account of your good intentions; and for these, and the pains you have taken, I not only think, but on all proper occasions shall say, the public are also indebted to you.

My office is new, and I am young in the execution of it. Communications from men of genius and abilities, will always be acceptable, and yours will ever command the attention of, Sir, your obedient humble servant,

ROBERT MORRIS.

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TO MAJOR GENERAL PHILIP SCHUYLER.

Philadelphia, May 29th, 1781.

Dear Sir,

You will probably have heard that Congress have done me the honor to bestow their confidence, by appointing me to the important station of Superintendent of Finance of North America; a station that makes me tremble when I think of it, and which nothing could tempt me to accept, but a gleam of hope, that my exertions may possibly retrieve this poor distressed country from the ruin with which it is now threatened, merely for want of system and economy in spending, and vigor in raising the public moneys. Pressed by all my friends, acquaintances, and fellow citizens, and still more pressed by _the necessity_, the _absolute necessity_, of a change in our monied system, to work salvation, I have yielded, and taken a load on my shoulders, which it is impossible to get clear of without the faithful support and assistance of those good citizens, who not only wish, but will promote the service of their country. In this light I now make application to you, Sir, whose abilities I know, and whose zeal I have every reason to believe. The object, however, before me, is not of such magnitude as to require any great exertion of either at present, although it is of sufficient importance to induce the invocation.

General Washington is distressed for want of an immediate supply of flour, and as I am not even yet fairly entered on the execution of my office, and when I do, have to meet an empty treasury, and a totally exhausted credit, it must be some time before funds can be created or money be commanded for any purpose whatsoever; and as I do not know any gentleman of such resources as General Schuyler, he seems the most likely of all men to give assistance under the present circumstances. I must, therefore, request that you will take the most speedy and effectual measures to deliver to the order of his Excellency, General Washington, one thousand barrels of flour, which I am sure you will purchase and cause to be transported on the most reasonable terms that are practicable. No time must be lost, but the flour must be sent down in the parcels as fast as procured. The Pennsylvania Bank had all the flour they supplied to the army, secured with outside lining hoops on each head of every barrel, and the weight and tare marked on each cask. If you were to cause this to be done, and add to the mark your name, it would save a waste of flour, oblige the Issuing Commissary to take notice of an account for the weights as well as barrels, and teach the army to think that they are indebted to your exertions for a seasonable supply.

I have the means of raising hard money to pay for this flour, and the charges on it; but the longer time I am allowed to do it, the more I can consult the public interest. I take it for granted, that you can, upon your own credit and engagements, either borrow the money for a few months, necessary to accomplish this business; or that you can make the purchases on such credit, without giving higher prices; and for your reimbursement, you may either take me as a public or a private man, for I pledge myself to repay you with hard money wholly, if required, or part hard and part paper, if you so transact the business. In short, I promise, and you may rely that no consideration whatever, shall induce me to make a promise, that I do not see my capability to perform, that I will enable you to fulfil your engagements for this supply of flour, if you find it convenient, you may draw on me for hard money or paper, payable in such sums, and at such times, as you can conceive may not be inconvenient, judging by what I have said on this subject. Should good bills on France be wanted, at about ---- hard money your currency, for five livres tournois, I will furnish them, drawn or endorsed by myself, for the whole, or any part of this purchase.

I hope we shall hereafter supply our army by contracts, and your information and observations on this subject would be very obliging. Perhaps if you are not fully employed otherwise, you might start some worthy man under your patronage, that might render essential service to the public, with proper advantage to himself and connexions in this line.

I am, Dear Sir, yours, &c.

ROBERT MORRIS.