Chapter 29

In mentioning these supplies, it occurs to me, also, to make mention of what has passed, relative to the contract you entered into for a part of them, to the amount of four hundred thousand dollars. Colonel Mennonville spoke to me on this subject, from the Count de Rochambeare, shortly after my appointment. Upon considering the very slender situation of our revenue, or rather the total want of it, and that the several States had omitted furnishing the specific supplies demanded of them, I told Colonel Mennonville, and told him truly, that I had but little prospect of complying with your promise. It is not easy to convey to your mind an idea of the pain I suffered from being obliged to make this declaration. I felt for you, for Congress, for America. There is no man in the world more deeply impressed than myself with the importance of fulfilling every compact made by a proper authority. All my reasonings, my feelings, and my experience, have concurred in producing a thorough conviction, that it is essential according to the principles of justice, from a regard to our national honor, and for the sake of our general interests. I shall, therefore, notwithstanding what has passed between Colonel Mennonville and myself, assiduously endeavor to perform your promise, and I am happy to add, that I am not without hopes of success.

With respect to the bills I intend to draw on you, I must apologize for the trouble they will give you, which I hope will be but little. It will be only necessary to accept them, and direct the holders what banker to apply to for payment. That banker will be enabled to make payment, by the bill I shall draw on Messrs Le Couteulx, & Co. in your favor. Perhaps it may be most convenient to send the bill holders to them, but this you will be the best judge of. It is unnecessary to state any reasons to you for accepting these bills, as I cannot suppose you will have the least hesitation on that subject. I take this opportunity, however, of pledging myself to you, that you shall suffer no inconvenience from honoring them with your acceptance, as I shall most certainly remit in time the bills sufficient to discharge all I draw on you. My reason for drawing them on you at all arises from this circumstance, that I am desirous of keeping the transaction entirely distinct, and that many inconveniences would follow from drawing bills on Messrs Le Couteulx, & Co. at six months' sight for paper, while I draw others at sixty days' sight for specie, especially after my refusal to draw on them except for specie, which refusal was, as you will perceive, a necessary part of my plan. Add to this, also, that the arrangements I had made with the Minister of his Most Christian Majesty would not permit it. When this transaction shall be finished, that is, when my remittances to you and my drafts on you are all paid, be pleased to send me copies of the bankers' accounts.

I have the honor to be, &c.

ROBERT MORRIS.

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CIRCULAR TO THE GOVERNORS OF THE STATES.

Philadelphia, July 25th, 1781.

Sir,

I had the honor to write to you on the ---- instant, enclosing a certified copy of the account of your State, as it stands in the treasury books of the United States. I now pray leave to recall your attention to it.

It gives me great pain to learn, that there is a pernicious idea prevalent among some of the States that their accounts are not to be adjusted with the continent. Such an idea cannot fail to spread listless languor over all our operations. To suppose this expensive war can be carried on without joint and strenuous efforts, is beneath the wisdom of those who are called to the high offices of legislation. Those who inculcate maxims, which tend to relax these efforts, most certainly injure the common cause, whatever may be the motives which inspire their conduct. If once an opinion is admitted, that those States who do the least and charge most will derive the greatest benefit, and endure the smallest evils; your Excellency must perceive that shameless inactivity must take the place of that noble emulation, which ought to pervade and animate the whole Union. It is my particular duty, while I remind my fellow citizens of the tasks, which it is incumbent on them to perform, to remove, if I can, every impediment which lies in the way, or which may have been raised by disaffection, self interest, or mistake. I take, therefore, this early opportunity to assure you, that all the accounts of the several States with the United States, shall be speedily liquidated if I can possibly effect it, and my efforts for that purpose shall be unceasing. I make this assurance in the most solemn manner, and I entreat that the consequences of a contrary assertion may be most seriously weighed and considered, before it is made or believed.

These accounts naturally divide themselves into two considerable branches, viz. those which are subsequent to the resolutions of Congress of the 18th of March, 1780.[37] The former must be adjusted as soon as proper officers can be found and appointed for the purpose, and proper principles established so as that they may be liquidated in an equitable manner. I say, Sir, in an equitable manner, for I am determined that justice shall be the rule of my conduct, as far as the measure of abilities, which the Almighty has been pleased to bestow, shall enable me to distinguish between right and wrong. I shall never permit a doubt, that the States will do what is right; neither will I ever believe that any one of them can expect to derive advantage from doing what is wrong. It is by being just to individuals, to each other, to the Union, to all; by generous grants of solid revenue, and by adopting energetic methods to collect that revenue; and not by complainings, vauntings, or recriminations, that these States must expect to establish their independence and rise into power, consequence and grandeur. I speak to your Excellency with freedom, because it is my duty so to speak, and because I am convinced that the language of plain sincerity is the only proper language to the first magistrate of a free community.

The accounts I have mentioned as subsequent to the resolutions of the 18th of March, 1780, admit of an immediate settlement. The several States have all the necessary materials. One side of this account consists of demands made by resolutions of Congress, long since forwarded; the other must consist of the compliances with those demands. This latter part I am not in a capacity to state, and for that reason I am to request the earliest information, which the nature of things will permit, of the moneys, supplies, transportation, &c. which have been paid, advanced, or furnished, by your State, in order that I may know what remains due. The sooner full information can be obtained, the sooner shall we know what to rely on, and how to do equal justice to those who have contributed, and those who have not, to those who have contributed at one period, and those who have contributed at another.

I enclose an account of the specific supplies demanded of your State, as extracted from the journals of Congress, but without any mention of what has been done in consequence of those resolutions. Because as I have already observed, your Excellency will be able to discover the balance much better than I can.

I am further to entreat, Sir, that I may be favored with copies of the several acts passed in your State since the 18th of March, 1780, for the collection of taxes and the furnishing supplies, or other aids to the United States; the manner in which such acts have been executed, the times which may have been necessary for them to operate, and the consequences of their operation. I must also pray to be informed of so much of the internal police of your State as relates to the laying, assessing, levying, and collecting taxes. I beg leave to assure your Excellency, that I am not prompted either by an idle curiosity, or by any wish to discover what prudence would dictate to conceal. It is necessary that I should be informed of these things, and I take the plain, open, candid method of acquiring information. To palliate or conceal any evils or disorders in our situation, can answer no good purpose; they must be known before they can be cured. We must also know what resources can be brought forth, that we may proportion our efforts to our means, and our demands to both. It is necessary, that we should be in condition to prosecute the war with ease, before we can expect to lay down our arms with security, before we can treat of peace honorably, and before we can conclude it with advantage. I feel myself fettered at every movement, and embarrassed in every operation from my ignorance of our actual state, and of what is reasonably to be asked or expected. Yet when I consider our real wealth and numbers, and when I compare them with those of other countries, I feel a thorough conviction, that we may do much more than we have yet done, and with more ease to ourselves than we have yet felt, provided we adopt the proper modes of revenue and expenditure.

Your Excellency's good sense will anticipate my observations on the necessity of being informed what moneys are in your treasury, and what sums you expect to have there, as also the times, by which they must probably be brought in. In addition to this, I must pray you to communicate the several appropriations.

A misfortune peculiar to America, requires that I entreat your Excellency to undertake one more task, which perhaps is far from being the least difficult. It is, Sir, that you will write me very fully as to the amount of the several paper currencies now circulating in your State, the probable increase or decrease of each, and the respective rates of depreciation.

Having now stated the several communications, which are most indispensable, let me entreat of your Excellency's goodness, that they may be made as speedily as possible, to the end, that I may be early prepared with those propositions, which from a view of all circumstances, may be most likely to extricate us from our present difficulties. I am also to entreat, that you will inform me when your Legislature is to meet. My reason for making this request is, that any proposals to be made to them, may arrive in season for their attentive deliberation.

I know that I give you much trouble, but I also know, that it will be pleasing to you, because the time and the labor will be expended in the service of your country. If, Sir, my feeble but honest efforts, should open to us the prospect of American glory; if we should be enabled to look forward to a period, when, supported by solid revenue and resources, this war should have no other duration or extent than the wisdom of Congress might allow, and when its object should be the honor and not the independence of our country; if with these fair views the States should be roused, excited, animated, in the pursuit, and unitedly determining to be in that happy situation, find themselves placed there by the very determination; if, Sir, these things should happen, and what is more, if they should happen soon; the reflection that your industry has principally contributed to effect them, would be the rich reward of your toils, and give to your best feelings their amplest gratification.

I have the honor to be, &c.

ROBERT MORRIS.

FOOTNOTES:

[37] It stands thus in the manuscript, but there seems to be an omission of what is meant by the _first branch_ of the accounts.

* * * * *

B. FRANKLIN TO ROBERT MORRIS.

Passy, July 26, 1781.

Dear Sir,

I have just received your very friendly letter of the 6th of June past, announcing your appointment to the superintendence of our finances. This gave me great pleasure, as from your intelligence, integrity and abilities, there is reason to hope every advantage, that the public can possibly receive from such an office. You are wise in estimating beforehand, as the principal advantage you can expect, the consciousness of having done service to your country; for the business you have undertaken is of so complex a nature, and must engross so much of your time and attention, as necessarily to injure your private interests; and the public is often niggardly even of its thanks, while you are sure of being censured by malevolent critics and bug-writers, who will abuse you while you are serving them, and wound your character in nameless pamphlets; thereby resembling those little dirty insects, that attack us only in the dark, disturb our repose, molesting and wounding us, while our sweat and blood are contributing to their subsistence. Every assistance that my situation here, as long as it continues, may enable me to afford you, shall certainly be given; for, besides my affection for the glorious cause we are both engaged in, I value myself upon your friendship, and shall be happy if mine can be made of any use to you.

With great and sincere esteem, I am ever, Dear Sir, &c.

B. FRANKLIN.

* * * * *

B. FRANKLIN TO ROBERT MORRIS.

Passy, July 26th, 1781.

Dear Sir,

I have received the letter you honored me with, of the 8th of June past, acquainting me, that as Superintendent of Finance, you have named Messrs Couteulx, & Co. at Paris to receive from his Majesty's Ministers the money granted to Congress, that they may be enabled to honor your bills whenever they appear; and you intimate a desire to be informed of the responsibility of that house.

With regard to the six millions given by the King in aid of our operation's for the present campaign, before the arrival of Mr Laurens, 2,500,000 of it went in the same ship with him in cash; stores equivalent to 2,200,000 more of it were ordered by him, and are shipped; 1,500,000 were sent to Holland, to go in the ship commanded by Commodore Gillon. Add to this, that Captain Jackson, by his orders, purchased clothing and stores in Holland, to the value of about L50,000 sterling, for which he has drawn bills on me, which bills I accepted, and also agreed to pay those drawn on Messrs Laurens, Jay, and Adams; expecting aid from a projected loan of 10,000,000 of livres for our use in Holland. But this loan meeting with unforeseen difficulties, and its success uncertain, I have found myself obliged to stop the money in Holland, in order to be able to save the honor of the Congress drafts, and to comply with my engagements. By these means you have really at present no funds here to draw upon. I hope, however, that Messrs Couteulx, & Co. will be enabled to honor your drafts; but I trust in your prudence that you will draw no more till you have advice of funds provided. And as the laying out so much money in Holland instead of France is disapproved here, and the payment will, therefore, not be provided for, I must earnestly request your aid in remitting that sum to me before December next, when my acceptances will become due, otherwise I shall be ruined with the American credit in Europe.

With regard to the wealth and credit of the House of Le Couteulx, & Co. I have never heard it in question. But as Mr Ferdinand Grand, banker at Paris, and his broker, Sir George Grand, banker in Holland, have been our zealous and firm friends ever since our arrival in France, have aided us greatly by their personal interest and solicitations, and have often been six or seven hundred thousand livres in advance for us, and are houses of unquestionable solidity, I cannot but be concerned at any step for taking our business out of their hands, and wish your future bills may be drawn on Ferdinand Grand, for I think it concerns our public reputation, to preserve the character of gratitude, as well as that of honesty and justice. The commission hitherto charged to us by Mr Grand for receiving and paying our money is a half per cent, which, considering the trouble given by the vast number of small drafts for interest of the loans, appears to me a moderate consideration.

With great and sincere esteem, I have the honor to be, Dear Sir, &c.

B. FRANKLIN.

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TO THE GOVERNORS OF MASSACHUSETTS, RHODE ISLAND, NEW YORK, DELAWARE, MARYLAND, AND NORTH CAROLINA.

Philadelphia, July 27th, 1781.

Sir,

I find upon examination, that the recommendation of Congress of the 3d of February last, for laying an impost of five per cent on goods imported, and a like impost of five per cent on prizes and prize goods, has not been complied with by your State.

The object which Congress had in view when they issued this recommendation was of the utmost importance, and every day gives it an additional weight and magnitude. Whether these States are able to support the annual expenses of the war by their annual revenue, and whether it would be prudent and wise to draw forth such revenue, are questions which may hereafter be agitated, considered, and answered. For the present it is sufficient to observe, that no methods have hitherto been adopted to produce a revenue by any means adequate to the current expenses. The public debt, therefore, is large and increasing. The faith of the United States is pledged to the public creditors. At every new loan it must be pledged anew, and an appeal is now made to the States individually, to support the public faith so solemnly pledged. If they do, it is possible that public credit may be restored, if not our enemies will draw from thence strong arguments in favor of what they have so often asserted, that we are unworthy of confidence, that our union is a rope of sand, that the people are weary of Congress, and that the respective States are determined to reject its authority. I fear that a mere verbal contradiction of these assertions will have but little effect. No words will induce men to risk their property upon the security of a nominal union. Your Excellency will be able at once to determine whether that union is more than nominal, in which any part shall refuse to be bound for the debts of the whole, or to contribute to the general defence. I must be permitted, however, to observe, that in matters of public credit long delay is equivalent to direct refusal.

Despotic governments are in war superior to others by the union of efforts, the secrecy of operations, and the rapidity with which every wheel may be moved by one sovereign will. This superiority, however, is amply compensated to free governments by the ardent attachment of their citizens, and the general confidence, which enables them to make exertions beyond their force, and expend in one year the revenues of many. A single view of our enemy, in the unequal contest she now carries on, will demonstrate these advantages more clearly than any arguments. The credit of Great Britain is not only her chief, but it is almost her only support. Inferior in everything else to the associates combined against her, she still makes head everywhere, and balances the opposition through the four quarters of the globe. While we feel the force of these last struggling of her ambition, we must admire the source from whence they flow. Admiring, we should endeavor to imitate, and in order to succeed, we need only to make the attempt. There was a time when public confidence was higher in America than in any other country. Hence the existence of that paper, which bore us through the conflict of five years' hostility. In the moment when no others dared oppose Great Britain in her career towards universal empire, we met her ambition with our fortitude, encountered her tyranny with our virtue, and opposed her credit with our own. We may perceive what our credit would have done, had it been supported by revenue, from what it has already effected without that support. And we have no reason to doubt but that it may be restored, when we reflect on the fate which paper currencies have formerly sustained. The appeal, as I have already had the honor to observe, is made by Congress to the several States. Some of them have answered by passing the laws required, others are silent. Whence this silence proceeds, I confess myself at a loss to determine. Some reasons, indeed, I have heard assigned by individuals in conversation, but I cannot conceive that they should have weighed with the Legislatures. Indeed I can hardly conceive how any reasons can have weighed against a matter of such importance as the keeping public faith inviolate.

I have heard it said, that commerce will not bear a five per cent duty. Those who make such assertions must be very little acquainted with the subject. The articles of commerce are either such as people want, or such as they do not want. If they be such as people want, they must be purchased at the price for which they can be had; and the duty being on all, gives to no seller any advantage over another. If, on the contrary, the article be such as people do not want, they must either increase their industry so as to afford the use of it with the duty, or else they must dispense with that use. In the former case, the commerce is just where it was, and in the latter case the people consume less of foreign superfluities, which certainty is a public benefit.[38]

I have also heard it said, that the duty should be carried to the account of the State where it is levied. What can be the object of those, who contend for this point, I know not. If there are doubts as to the justice of Congress, that body should not have been intrusted with the power of apportioning quotas on the several States. If, on the contrary, those who make this proposition, expect that the commercial States, by carrying the five per cent duty to their private account, can derive from their neighbors, the idea is as fallacious as it is unjust. The equity of Congress would lead them to relax so much in the quotas as would render the contribution of the States proportionate, or if that could not be done, the suffering State would be induced to carry on its commerce. Thus the end would be defeated, as indeed it ought; for surely the advantage derived by the mercantile States, as a mercantile profit, is sufficient without exacting a revenue in addition to it. Articles imported into the country are consumed in the country. If each pays a duty, that duty will be paid by all. The tax will fall equally on all, and therefore ought, in justice, to be carried to the general account.

I have also heard it suggested, that the public debts ought to be divided among the several States, and each be called to provide for its proportion. This measure would be sufficient to destroy the credit of any country. The creditors trust the Union, and there can be no right to alter the pledge which they have accepted for any other, even for a better one, without their free consent. But this is not all; there is in it a principle of disunion implied, which must be ruinous. Even at this late period, the States might singly be subjugated. Their strength is derived from their union. Everything, therefore, which injures that union, must impair the strength which is dependent upon it.

I shall not encroach longer upon your Excellency's patience by adducing farther arguments. Everything for and against the proposition, has doubtless been considered by the United States in Congress assembled, with that attention which is due to the importance of those objects on which they deliberate. I think, however, it may fairly be concluded, that those who wish to re-establish the credit and confirm the union of these States, will comply with this requisition. As I do not doubt that this is the sentiment of that State over which you preside, I shall believe that the Legislature at their next session, will pass the proper laws, and I shall at present only entreat that it may be done as speedily as possible.