Chapter 34

[44] _September 18th._ Several members of Congress and others called on me last evening, desirous to know the reasons for my writing to Mr Jay a letter of the 15th of August last, which being intercepted, Rivington has published, and graced with his remarks, wherein I direct Mr Jay to protest certain bills of exchange drawn by authority of Congress. The explanation is easily given, as the ship on board which I had remitted these bills was taken. The moment I knew her fate, I judged it proper to stop payment of the bills, lest the enemy, with their usual cunning, might attempt to procure the money; but I am now of opinion, that the Captain sunk them when captured. _Diary._

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B. FRANKLIN TO ROBERT MORRIS.

Passy, September 12th, 1781.

Dear Sir,

I have received your letters of July 13th, 14th, 19th, and 21st, all at once, by way of L'Orient. The originals of those you mention to have sent by Major Franks are not yet come to hand, nor have I heard of his arrival in Spain.

Your letters of June 6th and 8th were remarkably lucky in getting to hand. I think I have received seven of the copies you had the precaution to send of them. I enclose copies of my answers.

I have now the pleasure to acquaint you, that I have obtained a promise of the sum I wanted to pay the bills I had accepted for the purchases made in Holland; so that your supplying me with remittances for that purpose, which I requested, is now unnecessary, and I shall finish the year with honor. But it is as much as I can do, with the aid of the sum I stopped in Holland; the drafts on Mr Jay and on Mr Adams much exceeding what I had been made to expect.

I had been informed, that the Congress had promised to draw no more bills on Europe, after the month of March last, till they should know they had funds here; but I learn from Mr Adams, that some bills have been lately presented to him, drawn June 22d, on Mr Laurens, who is in the tower, which makes the proceeding seem extraordinary. Mr Adams cannot pay these bills, and I cannot engage for them; for I see by the minutes of Congress you have sent me, that though they have stopped issuing bills drawn on the Ministers at Madrid, and the Hague, until they shall be assured that funds are provided for paying them, they have left open to be sold those drawn on their Minister at Versailles, funds or no funds; which, in the situation you will see I am in by the letters of the Count de Vergennes, terrifies me; for I have promised not to accept any drafts made on me by order of Congress, if such should be after the time above mentioned, unless I have funds in my hands, or in view, to pay them. After its being declared to me, that such bills could not be provided for, and my promise not to engage for them, it will be impossible to ask for the money, if I should accept them; and I believe those bills of Mr Ross must go back protested.

The projected loan in Holland has of late some appearances of success. I am indeed told it is agreed to by the States; but I do not yet think it so certain as to venture, or advise the venturing, to act in expectation of it. The instant it is assured, I will send you advice of it by every opportunity, and will, from time to time, send parts of it in cash by such ships of war as can conveniently take it.

I cannot write to you fully by this opportunity. I will not, however, delay acquainting you, that having the fullest confidence in your assurances of enabling me to pay them, I shall cheerfully accept your bills for four hundred thousand livres.

Captain Gillon has sailed from Holland, without taking under his convoy the two vessels that were freighted to carry the goods purchased by Captain Jackson, in Holland. There has been terrible management there; and from the confusion in the ship, before and when she sailed, it is a question if she ever arrives in America.

They are hard at work here, in providing the supplies to replace those lost in the Marquis de Lafayette.

With best wishes of success to you in your new employment, and assurances of every aid I can afford you, I am, Dear Sir, &c.

B. FRANKLIN.

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TO M. DE LA LUZERNE.

Office of Finance, September 20th, 1781.

Sir,

His Excellency the Count de Rochambeau having generously made me a very considerable advance of money, I was thereby enabled to give the detachment of our army under General Lincoln, one month's pay, which was earnestly pressed upon me by the Commander in Chief. I promised M. de Rochambeau, that I would replace the sum borrowed, on the first of next month, wherever the army should then be.

The movement which lately took place to the southward, has been attended with a variety of expenses, which have been very heavy, and have absorbed all the money I could command, notwithstanding which many demands still remain unsatisfied, so that I cannot obtain the sums necessary for the service from any ordinary means.

As it is probable that the moneys which the Count de Grasse has brought, will prevent any immediate want by the fleets or armies of his Most Christian Majesty in the States of Maryland and Virginia, I am induced to believe, that no inconvenience would arise from delaying the payment, until the money in Boston shall be brought forward, which will be speedily, as a very active person has gone for it, who will lose no time in the business committed to him.

Should your Excellency be of this opinion, I shall be glad if you will signify it to me, and if that be in your power, that you will extend the time when payment is to be made. But if you think the money must be forwarded to Virginia immediately, you may depend that I will instantly endeavor to procure it, and although that cannot be done but with great difficulty and much loss, yet nothing shall deter me from complying with my engagements.

I have the honor to be, &c.

ROBERT MORRIS.

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TO THE PRESIDENT OF THE COUNCIL OF PENNSYLVANIA.

Office of Finance, September 20th, 1781.

Sir,

I am honored with your Excellency's letter of this date, and most sincerely wish my situation was such as to justify a promise of aid, equal to the present necessities; I mean the necessities that will be created by the call of the militia at this time, but unluckily the late movements of the army have so entirely drained me of money, that I have been obliged to pledge my personal credit very deeply in a variety of instances, besides borrowing money from my friends, and advancing, to promote the public service, every shilling of my own. In this situation I was preparing an application to the honorable Council and Assembly for relief from my advances, from the State of Pennsylvania, and this will be the more necessary, as this alarm whilst it lasts will cut off all possibility of recruiting the treasury. Those who possess hard money will keep it, and those who have demands will become more eager for payment, therefore, all I can promise is the use of my credit, and an exertion of any influence I may have in favor of such measures as may be deemed necessary. At the same time I do not recede from my first opinion, that the enemy do not meditate any attack on this city.

I have the honor to be, &c.

ROBERT MORRIS.[45]

FOOTNOTES:

[45] _September 21st._ At one o'clock I waited on the President of the State of Pennsylvania, at his house in Market Street, and met there Mr Peters and Mr Cornell, of the Board of War, General St Clair, General Irvine, and General Irwin, of the militia. This conference lasted a considerable time, and in its consequences took up the rest of the day. I gave it as my opinion, that Sir Henry Clinton did not intend for this city, nevertheless, as the inhabitants are alarmed and uneasy, I agreed to the propriety of being prepared, although I lamented the expense such preparations would put us to. I advised the placing a garrison at Mud Island, and putting that place in a posture of defence, and mentioned the plan proposed to me by Mr Paine, of collecting immediately one quarter's rent from all the houses in Philadelphia, in order to have an immediate supply of money to defray the expenses, &c. _Diary._

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TO M. DE LA LUZERNE.

Office of Finance, September 25th, 1781.

Sir,

I received last night your Excellency's billet requesting to be informed of the amount of the bills drawn by me; as Superintendent of the Finances, on Messrs Le Couteulx & Co. of Paris, under the sanction of your engagements.

This communication I intended making to your Excellency in consequence of the conversation that passed between us a few days since; but it was only yesterday that I completed the delivery of such bills as had been sold previous to that conversation, which amounted to fiftyseven thousand seven hundred and eighty livres; and now on summing up the whole I find, that I have drawn one hundred and eightyone sets of bills, all at sixty days' sight, in favor of various persons to whom they have been sold, amounting to nine hundred and one thousand and eighteen livres, four sous, and eight deniers tournois; of these bills three hundred and seventysix thousand one hundred and twentytwo livres, ten sous, have been sold at five shillings and six pence for five livres, and five hundred and twenty four thousand eight hundred and ninetyfive livres, fourteen sous, eight deniers, at six shillings for five livres; by which it appears the discount does not exceed sixteen and five eighths per cent on the value in Europe; and were this money to be imported I suppose the freight and insurance might amount to nearly the value of that discount; if so, this mode of bringing it into use is not a bad one. Besides I must again observe, that by a union of management in the sale of bills drawn for the service of his Most Christian Majesty's fleets and armies, and those drawn for account of the United States, still better prices might be obtained, nay, I should not despair of trying to raise the price of exchange to par, by means of partial importations of money, and passing bills before the expenditure thereof, so that necessity might not have any influence in fixing the price.

What your Excellency has said to me respecting the advances made this year by his Majesty to the United States, has left on my mind those impressions you intended to make. You may depend, Sir; that it is my wish, and shall be a part of my study, to render these States as little troublesome to his Majesty as possible, and I shall probably have many opportunities to convince you, that it is a fixed point with me, that the United States, to become truly independent, must trust more to their own exertions, and lean but lightly on their allies. But, Sir, you must remember the situation, in which I found their affairs; you are not ignorant, that although I have cut off entirely many sources of expense, and curtailed others, yet that I have not been able to obtain either supplies of money or permanent revenue from the States, which however I attribute chiefly to the recess of the several Legislatures during the greatest part of the time that I have been in office, for I hope and expect that they will severally attend to the calls upon them, when they shall come to know their real situation.

But in the meanwhile, what am I to do if the means of supplying indispensable wants are cut off? The important operations now carrying on by General Washington depend so materially on the performance of my engagements, that the most fatal consequences may ensue from any breach of them. Your Excellency well remembers, that you thought yourself justifiable, in giving me assurances, that Messrs Le Couteulx & Co. should be supplied with one million five hundred thousand livres tournois, to answer my drafts to that extent; the produce whereof to be employed in the service of the present campaign. You will also recollect, that previous to my journey in August to camp, I judged it necessary to know, whether that sum was the whole on which I could place dependence, because, as the General's operations would in a great measure depend on the aids I could afford him, it was absolutely incumbent on me to be informed of their extent in every channel, through which I expected them to flow.

Your Excellency, convinced of the propriety of my observations, and of the actual necessities of our situation, ventured the assurance of another million of livres. Therefore, whilst I was at camp, during the consultations on the measures, I gave his Excellency reason to believe, that the amount of two millions five hundred thousand livres of bills on France, in conjunction with the resources provided by Congress, should be brought to the support of his operations. Counting upon this as certain, General Washington has taken his measures accordingly.

It has been my study to make the bills as productive as circumstances would permit, and to apply the money to the purposes for which it was granted, under the most scrupulous and assiduous attention to the principles of economy, and I may hazard the opinion, that no money has been more frugally or usefully expended by the United States during the war, without the least danger of being put in the wrong.

You are sensible that the money which arrived with Colonel Laurens, although landed on the Continent, cannot be brought into use until its arrival here; and although I have sent for it, yet it is but now on the road, and the General cannot stop his operations, nor can I refuse or defer compliance with my engagements until its arrival. The ruinous consequences that would follow, must appear too strong and clear to a gentleman of your reflection and information, to need any other demonstration than the bare mention of the facts. Consequently your Excellency will be well convinced of the absolute necessity of permitting me to draw to the extent agreed upon, and I hope his Majesty's Ministers will be too strongly impressed with apprehensions of the fatal consequences that would follow any neglect of my bills, to suffer the least inattention to them; and as the sum in total will not be of such magnitude as to occasion great inconvenience, I hope his Majesty will find cause to applaud your zeal and attention upon the occasion.

A committee of Congress have laid before me the communications your Excellency has lately made to Congress, which will claim my utmost attention, and your Excellency will do me the justice to believe that my most strenuous endeavors shall be to promote what is so strongly urged by his Majesty's Ministers, the most spirited exertions of these States to drive the enemy from our country. And that my affection for, and gratitude to France, are unalterably fixed, as is also my respect and esteem for your Excellency's person and character. Being, Sir, your most obedient, &c.

ROBERT MORRIS.

_P. S._ Upon a more exact calculation of the sale of bills, a few of which were sold a little higher than the rest, I find that nine hundred one thousand and eighteen livres, four sous, eight deniers, produced fiftytwo thousand two hundred and eleven pounds, ten shillings and ninepence, Pennsylvania currency; which is equal to one hundred twentyfive thousand three hundred and seven French crowns, and seven tenths of a crown, at eight shillings four-pence, Pennsylvania currency, for a crown; and the same number of livres reduced into crowns at six livres each crown, is one hundred fifty thousand one hundred sixty-nine and four sixths crowns. Consequently the discount is little more than sixteen and a half per cent.

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TO THE SPEAKER OF THE ASSEMBLY OF PENNSYLVANIA.

Office of Finance, September 28th, 1781.

Sir,

As the Honorable House of Assembly are now sitting, and have before them the several letters which I had the honor to write during their recess to his Excellency the President in Council, I shall now endeavor to state, in a short manner, the situation of accounts depending between Pennsylvania and the United States, and propose such measures, as, I think, will lead to a speedy and satisfactory settlement of them.

In the treasury books of the United States, there is an account current open for transactions commencing with the revolution, and continuing to the 18th of March, 1780, wherein the State of Pennsylvania stands charged with advances, made at different periods during that time, to the amount of four millions four hundred and fortyfour thousand and seven hundred dollars, and has credit to the amount of one hundred and thirtysix thousand and ninetyeight dollars. Most of these advances were made whilst money was valuable; but I expect that the expenditures of the State on behalf of the United States kept pace with the advances made, and that, probably, when this account comes to be settled, there may be no great balance either way; but in this respect, I do not pretend to speak with certainty. However, I must here observe, that every State in the Union has an account of the same sort depending; wherefore, I propose that Congress should fix such general principles as will tend to do justice on the settlement of the whole, and appoint immediately Auditors to go through the whole; so that when the balance of each shall be justly ascertained, it may be paid or received, according as the same shall happen to be due, to or from the United States, and this will put every State on an equal footing so far.

You will find by the resolution of Congress of the 22d of November, 1777, Pennsylvania is called on to pay, in four quarterly payments, commencing on the 1st day of January, 1778, the sum of six hundred and twenty thousand dollars. By the resolutions of the 3d and 5th of January, 1779, Pennsylvania is called on to pay, during that year, the sum of one million nine hundred thousand dollars. By the resolution of the 21st of May, 1779, Pennsylvania was called on to pay, by the 1st of January, 1780, the sum of five millions seven hundred thousand dollars. By the resolutions of the 6th and 7th of October, 1779, a monthly tax of fifteen millions is called for, of which the proportion of Pennsylvania is two millions three hundred thousand dollars, making for the two months payable the 1st of February and the 1st of March four millions and six hundred thousand dollars. Thus the whole of these requisitions appears to have amounted to twelve millions eight hundred and twenty thousand dollars, of which there appears to have been paid on different drafts to the amount of six millions four hundred and fifty four thousand one hundred and fourteen dollars and two thirds, leaving a balance still due of six millions three hundred and sixtyfive thousand eight hundred and eightyfive dollars and one third, of the old emissions.

By the resolution of the 10th of March, 1780, the fifteen millions of monthly taxes is continued so as to include thirteen months, making for the proportion of Pennsylvania twenty nine millions nine hundred thousand dollars; of which sum ten millions six hundred thousand dollars have been paid into the Loan Office; of consequence, there remains due nineteen millions three hundred thousand dollars.

By the resolutions last mentioned, new money was to be issued, at the rate of one for every twenty of the old; of which new money Congress had reserved four tenths to their disposal, and the Treasury Board have already issued warrants to the amount thereof. The State paper being of equal value with the new emission, and the former not bearing interest, I have thought it most for the benefit of this State and of the United States, to draw from the treasurer a sum of the new State paper equal to the balance of those four tenths, and have accordingly done so.

By the resolution of the 26th of August, 1780, the States are called on to pay into the treasury by the last day of December then next ensuing, three millions of dollars, of which the quota of Pennsylvania is four hundred and sixty thousand dollars.

By the resolution of the 4th of November, 1780, Pennsylvania is called upon to pay two hundred and seventythree thousand eight hundred and thirtytwo dollars and two thirds, in quarterly payments, commencing the 1st day of May last; and by the resolution of the 16th of March, 1781, Pennsylvania is called upon to pay one million and fiftynine thousand eight hundred and sixtythree dollars, in quarterly payments, commencing the 1st day of June last. All these are payable in the new emission, or specie. Thus the whole of the requisitions will, on the 1st day of March next, amount to one million seven hundred and ninetythree thousand six hundred and ninetyfive dollars and two thirds. Of this sum there appears to have been paid seventeen thousand seven hundred and forty dollars; wherefore, there will still remain a balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds.

By a note from David Rittenhouse, I find that he has in his hands one hundred and thirtyeight thousand nine hundred dollars of the new emission, and fourteen millions one hundred and fortyfive thousand six hundred dollars of the old, in which latter sum, nevertheless, is included some State money received at seventyfive for one, the amount of which cannot be determined until it is sorted and counted; wherefore, the old emission may be estimated at about fourteen millions.

On this state of things, I take the liberty of proposing to the honorable House, that all the old money be immediately paid in, and the new taken out, which will be about seven hundred thousand dollars, and that, with what is now in the Treasurer's hands, will make eight hundred and thirtyeight thousand nine hundred dollars. I further propose, that this be paid to me, as Superintendent of Finance, on account of the above balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds, which will then be reduced to nine hundred and thirtyseven thousand and fiftyfive dollars and two thirds. I further propose, that the remaining sums of old continental, due from the State, be collected and paid as soon as possible, which, besides discharging that demand, will also enable the State to receive the further sum of two hundred and sixty thousand dollars of the new emission, and that, being paid in as before, will still further reduce the balance against the State to six hundred and seventytwo thousand and fiftyfive dollars and two thirds. There are at present in circulation of the new emission three hundred and ninetyone thousand one hundred dollars, which ought certainly to be brought in as soon as possible, and applied to the same purposes already specified; by which means the eventual balance payable in specie, would be two hundred and eighty thousand nine hundred and fiftyfive dollars and two thirds; to which must be added, thirteen thousand three hundred and thirtyfour dollars, required by Congress on the 8th day of January last to be paid in specie; being together one hundred and ten thousand three hundred and fiftyeight pounds, twelve shillings and sixpence. To explain all which more fully, I enclose the accounts, number one, two, and three, to which I pray leave to have reference.