Chapter 33

I think it my duty, while I am upon this subject, to mention my opinion, that in addition to the five per cent called for on articles imported, and on prizes and prize goods, it would be proper to appropriate to the payment of the public debts, a land tax, a poll tax, and an excise on spirituous liquors. I readily grant that neither of these taxes would be strictly equal between the States, nor indeed can any other tax be so, but I am convinced, that all of them taken together, would be as nearly equal as the fluctuating nature of human affairs will permit. I am, however, to observe in addition, that the land tax should be laid at a certain rate per acre, because the superior certainty of such a tax will give it the preference of others, although it cannot perhaps be so great as might have been expected. Whatever inequalities may remain, must be adjusted among individuals, by the several States in raising their quotas, and although those quotas will be most considerable during the war, yet it must be remembered, that after the conclusion of it, such sums will be necessary for the establishing a marine and other national purposes, as will still enable the States to continue their interior regulations for equalizing the general taxes.

Among the public debts, there are a considerable number of certificates given by public officers to the citizens of the several States for articles occasionally taken for the public use. With respect to these certificates, it is unnecessary to mention, that they have anticipated the revenue, and brought us to the brink of destruction. But it is time to pay a particular attention to them. Many ways may be fallen upon for their liquidation, all of which are perhaps justly exceptionable.

1st. They may be consolidated with the rest of the public debt, and be made payable at a future period; but this could only be by forcing a loan from the people, many of whom are unable to make it, and of consequence it would be a hard measure, if not an unjust one. Perhaps it could not be executed, for laws repugnant to the general feelings of mankind are only a dead letter. 2dly. Another mode is by receiving them in taxes, but this is very dangerous for several reasons, among which, the two following are cogent. The public revenue will not bear such a heavy deduction at those certificates would create, and the collectors of taxes would be liable to be defrauded themselves, or the remedy for that would give them opportunities of defrauding the public, which considering the natural bent and disposition of many men, ought to be carefully provided against. A third mode would be, by turning over the holders of these certificates to their respective States, and giving credit for them on account of the specific supplies. This may in some degree become necessary in cases where the negligence of the States on the one hand, and the necessities of the army on the other, have compelled to seize by force what ought to have been collected by law. But in many cases it cannot be done, and it would be improper in many others where it is practicable.

Among the bad consequences, which attend the present mode of supplying our armies, or rather leaving them to supply themselves, it is one of no small magnitude, that the officers who are compelled to the melancholy duty of plundering their fellow citizens, endeavor by the sum of their certificates, to compensate for the manner of taking as well as for the value of the thing taken. Nor is that all; where there is a disposition for fraud, an ample opportunity is afforded to commit it. Whatever may be the cause, I am informed, that these certificates are for sums vastly beyond the value of the services and articles obtained for them. The respective States would naturally be led to give to these certificates their specified value, and it cannot be expected that they will scrutinise them so rigidly as they ought, if they are to be accepted in discharge of demands existing against the particular State. To all these modes there are also some further objections. Among which it is my duty to state the following. The accounts of the several staff officers still remain unsettled. The certificates given by them, if they are to be paid by the public, ought to be carried both to the debit and credit of their cash accounts, and the articles obtained carried to their debit in the account of expenditures. Of consequence the amount of these last debits must depend much upon the amount of the certificates, and therefore either the certificates given should be known, and the accounts settled with those charges, or the account should be settled, and no other certificates allowed but such as are charged in it.

A further mode of liquidating these certificates would be, by purchasing them from the holders; but it is needless to state any other objections to it than the want of money, which is felt through all our operations. There still remains this method.

1st. That at present those certificates should neither be receivable in taxes nor transferable.

2dly. That they should be taken up and examined in the course of settling the public accounts.

3dly. That they should be brought to the amount in specie, which the article procured, or service performed, was reasonably worth.

4thly. That where the sum due to any person on certificates is small, a bill for the amount should be given, payable at the distance of a year.

5thly. That where the sum is large it should be divided into five different parts, and bills given payable in one, two, three, four, and five years, calculating on each part an interest of six per cent, and adding it to the amount. As if for instance, the sum were one hundred pounds, then the bills would be for twentyone pounds four shillings, twentytwo pounds eight shillings, twentythree pounds twelve shillings, twentyfour pounds sixteen shillings, and twentyfive pounds.

6thly. That these bills should be drawn payable to the bearer, and in such form as not to be counterfeited without great difficulty.

7thly. That they should be receivable in continental taxes, within any of the States, as cash, at the times when they are respectively due, or if not so received, payable by the continental treasurer, or any receiver of the continental taxes, on demand, after collecting the taxes, in which they were respectively receivable.

In this way a credit would be obtained not only without injury, but probably with advantage to the individual. The anticipation of the public revenue would not be very great, and, as a list of these notes would be kept, the amount of every year's anticipation would be accurately known. Exceptions may probably be found even to this mode, but unfortunately for us, we have only an alternative of difficulties. All which human prudence can do in such cases is to choose the least.

I have the honor to be, Sir, &c.

ROBERT MORRIS.

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TO THE GOVERNOR OF MARYLAND.

Office of Finance, Philadelphia, } August 28th, 1781. }

Sir,

Whilst I was at Head Quarters, near Dobbs's Ferry, the determination was taken by his Excellency the Commander in Chief, to send a very considerable force against the enemy's troops under Earl Cornwallis in Virginia; and immediately on my return hither, I did myself the honor to address your Excellency, respecting the specific supplies due from the State of Maryland to the United States, upon the requisitions of Congress, of the 25th of February and 4th of November, 1780, well knowing the whole balance due on these calls of Congress would, now become absolutely necessary to the intended operations.

I am very sensible that your government have upon all occasions executed demands of Congress with a decision and vigor, which does them honor, and on that account I should decline saying anything calculated to stimulate their present exertions, did I not know, that everything depends thereon. Virginia, North and South Carolina, have long subsisted large armies, and that expense of provisions must come to their credit. The New England States, New York, New Jersey, and Pennsylvania, have supported, and must continue to support, the main army. Pennsylvania will also contribute towards the support of the southern army, and her supplies will be directed both ways, as circumstances may require. Delaware and Maryland must chiefly be depended on. Virginia and North Carolina will, I hope, continue to do all they can. But your Excellency must be perfectly sensible, that I have not any funds wherewith to purchase supplies; no State in the Union has hitherto supplied me with money, except Pennsylvania. But as the money of that State is (in consequence of plans adopted for that purpose) very rapidly rising in value, it would be improper to call it into circulation at present, when it is at the rate of only two for one, though it has been as low as seven, because the public interest would thereby be injured, and indeed I might be charged with defeating the measures I myself had taken, in the very moment when they bid fairest for success.

The security of your State, the safety of individuals and their property are so immediately connected with the present operations, that I persuade myself your Excellency will receive every aid and support in your exertions, that you can wish, both from public bodies and individuals. My dependence therefore, on receiving the supplies from your State seems well founded.

I have the honor to transmit your Excellency herewith a letter from the Commander in Chief on the same subject, which will add weight to my entreaties. I have written to Donaldson Yeates, Quarter Master of the States of Maryland and Delaware, to procure immediately as many craft or vessels suitable for transporting the troops from the head of the Elk to Virginia, as will carry about seven thousand men, with the necessary provisions and apparatus. I have written to Mr Ridley, William Smith, and some others in Baltimore, to assist in procuring these vessels, and should any application to your Excellency be necessary on this subject, I persuade myself, that the authority of the government or weight of its influence will be brought in aid of the Quarter Master's endeavors to procure the shipping. I have also written to Mr Calhoun to know what part of the specific supplies he has ready, and what prospects for the remainder. He must bestir himself, as indeed must every person on whom the procuring of these articles depends.

While the demands for the campaign are constantly transmitted to me, and so much depends upon the measures I am constantly taking to economise the public funds and facilitate our military operations, your Excellency will perceive that full, early, and accurate intelligence upon the various objects of my Department is of the utmost importance. I must, therefore, reiterate my requests for it. To act from necessity and on the spur of occasion is not only the source of waste and extravagance, but frequently defeats plans otherwise the best concerted, while on the other hand, that timely forecast and early provision, which complete knowledge of circumstances can alone permit of, will save much public money, and go very far to insure victory to our arms.

I am, with great respect, &c.

ROBERT MORRIS.[42]

FOOTNOTES:

[42] _August 30th._ Went out to meet his Excellency General Washington, who arrived in this city about one o'clock, amidst the universal acclamations of the citizens, who displayed every mark of joy on the occasion. His Excellency alighted at the City Tavern, received the compliments of many gentlemen, who went out to escort him, and of others who came there to pay him their respects, and then adjourned to my house with his suit, Count de Rochambeau, the Chevalier Chastellux, General Knox, General Moultrie, and others, to dinner. The owners of several ships in the harbor ordered them out into the stream, and fired salutes, whilst we drank, The United States, His Most Christian Majesty, His Catholic Majesty, The United Provinces, The Allied Armies, Count de Grasse's speedy arrival, &c. &c. _Diary._

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CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, September 4th, 1781.

Sir,

I do myself the honor to enclose the plan of a National Bank, which I laid before the United States in Congress assembled on the 17th day of May last, and which was adopted by them on the 26th. I have now the pleasure to inform your Excellency, that an election for Directors will be held in this city on the 1st day of November next.

It is important that the execution of this plan be facilitated as much as possible, and particularly that of it which relates to the currency of the bank notes. The inhabitants of the United States already suffer from the want of a circulating medium. Of consequence the taxes must soon press heavily on the people. My feelings conspire with my duty in prompting me to alleviate those burdens. Therefore I pray the speedy attention of your Legislature to that resolution, by which the notes are to be receivable in payment of all taxes, duties, or debts due, or that may become due or payable to the United States.

I do not doubt either the credit or currency of bank notes, but I wish to render them equally useful to America in the individual as well as collective capacity, and to supply the necessities of the husbandman as well as the merchant. I shall not at present mention the other articles to be attended to; nor will I adduce any arguments in favor of my present proposition, as it is evidently calculated for the ease and benefit of the people you preside over. I hope, however, that your Legislature will not only pass the proper laws to make bank notes receivable in the manner mentioned in the resolution, but that it will be done soon.

With all possible respect, &c.

ROBERT MORRIS.[43]

FOOTNOTES:

[43] _September 5th._ The Commander in Chief having repeatedly urged, both by letter and in conversation, the necessity of advancing a month's pay to the detachment of troops marching to the southward, under the command of Major General Lincoln, and my funds and resources being at this time totally inadequate to make that advance, and at the same time answer the various demands that are indispensable, I made application to the Count de Rochambeau for a loan of twenty thousand hard dollars, for such time as his military chest could, without inconvenience, spare that sum, promising repayment at the time he should name.

I was desired to meet the Count at the Chevalier de la Luzerne's house, which I did on Wednesday the 5th instant, where I met the said Minister, Count de Rochambeau, and General Chastellux. They informed me of their strong desire to comply with my request, but that their treasury was at present not well filled, considering the daily drains upon it, and that although they had money arrived at Boston, it would require six or eight weeks to get it from thence, that although they expected money by the fleet of Count de Grasse, yet it was not then arrived, and of course that supply was less certain than the other; that the Intendant and the Treasurer were set out for the head of the Elk, and their consent was necessary however, they concluded this subject with requesting that I should ride down to Chester, where we should overtake those gentlemen, and if it were possible on consideration of all circumstances they would supply the money required.

General Washington was extremely desirous, that the troops should receive their month's pay, as great symptoms of discontent had appeared on their passing through this city without it. This affair being considered of great importance, I desired Mr Gouverneur Morris, my assistant, to accompany me, on account of his speaking fluently the French language. We set out at three o'clock for Chester, and on the road met an express from General Washington, who left us in the morning to join his troops at the head of the Elk, with the agreeable news of the safe arrival of Count de Grasse and his fleet in the Chesapeake. This news I received with infinite satisfaction on every account, and among the rest one reason was the facility it would give the French treasury in complying with my views, and this I found was actually the case, as Count de Rochambeau very readily agreed at Chester to supply at the head of the Elk twenty thousand hard dollars, to such person as I should appoint to receive them. I engaged to replace the same sum in their treasury by the 1st day of October next.

On Thursday forenoon I returned to this city about twelve o'clock having been impeded in my journey by meeting the last division of the French army, their artillery, and baggage on the road. On my return I immediately despatched Mr Philip Audibert, Deputy Paymaster General, to the head of the Elk, with orders to receive the money, pay the troops, &c. agreeably to instructions given him in writing. In the conferences with Count de Rochambeau and General Chastellux, they asked whether, if upon any occasion their treasury should stand in need of temporary aids, I thought they could procure loans in this city. I answered, that money is very scarce, that the people who have property generally keep it employed, and that no certain dependence can be placed on any given sums, but that I knew the people to be very generally disposed to assist our generous allies, and should such occasions offer, I was certain they would exert themselves; and as to my own part they might on every occasion command my utmost services, assistance, and exertions, both as a public officer, and as an individual. I mentioned to them again the affair of exchange, showing that they had reduced the price below what it had been raised to by my measures, and requested that in future when they expected to raise money by bills, they should in good time previously lodge them with the Minister, and that on his giving me timely notice, I would cause the most advantageous sale to be made of them, and deliver him the money without any other charge or deduction, than the expense of the brokerage.

I observed, that this mode of proceeding was now became essentially necessary, as there is no general market for bills of exchange to the southward, but that Philadelphia, in that respect, is as Boston to the eastern States. They answered, that they expected to procure their supplies with money, without occasion to draw bills, but if it happened otherwise they would pursue my advice. In regard to the articles of provisions, forage, wood, transportation, &c. necessary for their army, and which, when at camp, I had offered to procure for them on the same terms as for the continental army, by contract, I proposed to postpone that matter, as it might be best to continue their present method of supplies during the active scenes they are likely to be engaged in, as their Agents have given satisfaction, and are acquainted in the country where they are going, and that I could advertise for proposals to supply them the ensuing winter, and lay before them such offers or proposals as I should receive. This appeared very satisfactory, and here that subject rests for the present. _Diary._

* * * * *

TO THE COUNT DE ROCHAMBEAU.

Office of Finance, September 6th, 1781.

Sir,

In consequence of the conversation I had the honor to hold with your Excellency yesterday, and your promise to supply the United States with the sum of twenty thousand dollars, for an immediate purpose, to be replaced on the 1st day of October next, I have directed Mr Philip Audibert, the bearer of this letter, to wait upon you. I shall be much obliged to your Excellency if you will be pleased to direct, that the above sum be paid to Mr Audibert, and that duplicate receipts be taken of him, one of which I pray may be transmitted to me. I will take care that the money be replaced at the time agreed upon. With every wish for the most brilliant success to the allied arms, and for your own personal glory, I am, very respectfully, &c.

ROBERT MORRIS.

* * * * *

TO GEORGE WASHINGTON.

Chester, September 6th, 1781.

Dear General,

Permit me most sincerely to congratulate you on the arrival of the French fleet, and to express my warmest wishes for the success of your future operations.

As soon as I arrive at Philadelphia, I shall give directions for the Deputy Paymaster to repair to the head of the Elk, and make the payment of a month's pay in specie to the detachment under the command of General Lincoln. I wish the States had enabled me to do more, but it is to be lamented, that the supineness of the several Legislatures still leaves the servants of the public to struggle with unmerited distresses.

It shall, however, be a part of my business to rouse them into exertion, and I hope soon to see the army better paid than heretofore, and I confide, that your Excellency will, with every other public officer, exert your influence to aid me in this necessary task.

With the greatest respect, &c.

ROBERT MORRIS.

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GEORGE WASHINGTON TO ROBERT MORRIS.

Head of the Elk, September 6th, 1781.

Dear Sir,

Every day discovers to me the increasing necessity of some money for the troops. I hope by this time you are provided to give a month's pay. I find it of the last importance to hasten forward myself to join the Marquis de Lafayette as soon as possible. I may leave this in a few hours; I cannot do it, however, without entreating you in the warmest terms to send on a month's pay at least, with all the expedition possible. I wish it to come on the wings of speed.

I am, Dear Sir, &c.

GEORGE WASHINGTON.

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GEORGE WASHINGTON TO ROBERT MORRIS.

Head of the Elk, September 7th, 1781.

Dear Sir,

I have received your two favors of yesterday. I find myself so pressed by circumstances, that it will be impossible for me to stay at this place till the payment of the money committed to Mr Audibert can be effected. I must leave the head of the Elk this afternoon or early tomorrow morning. I shall however leave instructions with General Lincoln to do all that is necessary on the occasion.

The sum of twenty thousand dollars will fall much short of the sum necessary.

The five hundred guineas on my own account I have received.

I have the honor to be, &c.

GEORGE WASHINGTON.

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TO GEORGE WASHINGTON.

Office of Finance, September 10th, 1781.

Dear Sir,

The sole intent of this is to acknowledge the receipt of your two letters of the 7th instant; that which related to the month's pay you would see was answered by the steps previously taken, but I am a good deal disappointed and put to inconvenience by the money at the Elk falling short of the object, which obliges me to send money thither that was absolutely necessary to fulfil my engagements here. I must struggle through these difficulties, but the doing so requires that attention and time, which ought to be bestowed upon greater objects.

The letter respecting the criminal was too late, the poor fellow was gone. I am sorry for it, and remain your Excellency's most obedient, &c.

ROBERT MORRIS.[44]

FOOTNOTES: