Chapter 35

The specific supplies will still remain to be provided for, in order that all the demands of Congress may be fully answered; but I hope that the specie tax now collecting will go a great way towards the accomplishment of this necessary object, and at any rate, as the state of paper, notwithstanding every effort, has not yet appreciated to par, I would propose that no more of it be issued from the treasury, except as equal to gold and silver, and then the collection of the present, taxes will at least prevent any depreciation, and in the meantime, the fund on which it was emitted, become more productive. The next Assembly will be able to take such additional measures as may be necessary, further to raise the value of it. This can only be done by holding it up from circulation, on the one hand, and on the other, by raising taxes, in which the public receive it as equivalent to the precious metals.

It is my determination, as Superintendent, to deposit all the money of the new emission, which shall be received from the several States, in the Continental Treasury, and not to issue one shilling of it, unless compelled by absolute necessity; which, I hope, will not be the case, if the States take measures to pay in the eventual balances.

Whether the House will find it consistent with the situation of their constituents to lay an additional tax this session, is for them to determine; but it is my duty to mention it, which I do from a conviction that it is necessary. They will perceive, that very great arrearages are due, and they must be sensible, that taxation alone can support the public credit, or enable government to carry on the war.

With the greatest respect, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE COUNT DE ROCHAMBEAU.

Office of Finance, October 1st, 1781.

Sir,

This being the day agreed upon for repayment of the moneys your Excellency was so kind as to advance me, I do myself the honor of assigning to you the reasons why it is not done. I had determined to make every effort and every sacrifice for the sake of complying with my engagements. But his Excellency, the Minister of France, perceiving that it would be very inconvenient to me, and being convinced that you were not in immediate want of it, was so kind as to assure me, that he would write to you on the subject, and that, in the meantime, I might delay the payment until the arrival of money from the eastward. I shall then take care to have your advance replaced.

Being convinced, Sir, that M. de la Luzerne has already made the proper representations to you upon the subject, I should not have troubled you with reading this letter, but that I feel a pleasure in seizing every opportunity to express my wishes for your success and glory, as well as to assure you, that I am, &c.

ROBERT MORRIS.

* * * * *

TO MAJOR GENERAL GREENE.

Office of Finance, October 3d, 1781.

Sir,

I have received your letter, dated the 18th of August last, at the high hills of Santee, and am now to thank you for it. Your observations on public affairs are, I fear, too just, but I hope that when our situation is thoroughly perceived by the people, they will adopt those effectual remedies, which every friend to his country ought to wish. That more power ought to be given to Congress is evident now to many, and will, probably, become soon very apparent to all. The disobedience of many States, and the partial obedience of others, discontents every one of them, and that will, in itself, be a reason for enabling the sovereign representative to exact a compliance with its requisitions; but, as you justly observe, all these things are in the womb of time, which can alone disclose the events we plague ourselves with guessing at.

From the latter part of your letter, I perceive that you greatly misunderstood me. When I requested you to draw on me, I meant to extend those drafts so far as might be necessary for secret service money, and the like small, but indispensable occasions. I well knew that you could not, by bills of exchange, supply the wants of your army, and, if I had thought it practicable, I should have been more explicit, for I could not then have paid the bills you would have drawn.

To give you an idea of my situation as to money, I think I need only inform you, that since I have been in office, I have only received the sum of seven thousand five hundred pounds, Pennsylvania money, from the Treasury of this State, and that was in part payment of advances made for them. This is all I have received from the funds of America. It is true, that Colonel Laurens has lately arrived, and brought with him a sum of money from France. And it is also true, that I have made use of a very limited credit given me on France, by drawing bills of exchange; but both of these resources, taken together, are vastly short of what is necessary, though they have contributed to the present operations.

I have lost no occasion of showing to the several States their situation, but hitherto without success; and, unless some unforeseen event turns up very speedily, it is impossible to say what may be the consequences. However, it is our business to hope all things, and that Providence, who has hitherto carried us through our difficulties, will, I trust, continue his bountiful protection.

Your circumstances have long been arduous, but you have hitherto risen so superior to them, that we should be almost as much surprised now, if you should be unsuccessful, as we formerly were at your successes. I wish I could contribute to render you more easy. As far as my abilities extend, I shall do it most cheerfully; but they unfortunately are very limited. Accept, I pray you, my good wishes, which are almost all I have to give, and believe me to be, &c.

ROBERT MORRIS.

* * * * *

TO THE COMMISSARY GENERAL OF PURCHASES.

Office of Finance, October 4th, 1781.

Sir,

I have received your letters, dated at Alexandria the 19th, and Williamsburgh the 23d of September last.

I am very glad that you push hard upon the States for supplies. It is, I find, necessary that you and I should understand each other on the subject. The General will, I dare say, take care to have as few unnecessary mouths as possible; but, after all, a certain quantity of provisions is indispensably necessary. Now this quantity must be furnished by the States of Virginia, Maryland, and Delaware. If you rely on my exertions, you will, probably, be disappointed. Should the operations against Cornwallis fail for want of supplies, the States must thank their own negligence. If they will not exert themselves on the present occasion, they never will. As to all that can be said about the failure of the one or of another kind of money, it is left to themselves. Let them tax in money which will not fail. It is their business to provide supplies and money too. If they neglect or omit this necessary duty, I again repeat, they must answer for the consequences.

I shall be glad at all times to hear from you very particularly, with all such information as you shall think necessary. But do not lean too hard upon me. Do not expect too much help from me. You will be deceived and disappointed if you do. Urge the States. Urge Delaware in particular. When I do furnish anything, it must be money. Let some of your people, therefore, apply when you intend applications. I cannot run about the city to purchase articles. That is the duty of an assistant Commissary; and my time is too much, and, I hope, too well employed, to permit it.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO.

Office of Finance, October 12th, 1781.

Gentlemen,

In consequence of a new arrangement taken with his Excellency, the Chevalier de la Luzerne, Minister Plenipotentiary of France, a further sum of money will be deposited with you, subject to my drafts on behalf of the United States of America, so that I shall continue those drafts, as occasion may require, until, in the whole, they amount to one million two hundred thousand livres tournois, where I shall stop, unless circumstances should happen to induce an extension of this operation, of which I will advise you; and whenever it is completed, I shall require an account current from you for the whole. I have not yet had the pleasure of receiving from you any letters directed to me in my official capacity, but I doubt not your punctual care and attention to discharge all my drafts as they fall due.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE LOAN OFFICERS OF THE STATES.

Office of Finance, October 13th, 1781.

Sir,

As the organization of the Treasury Department will soon be completed, it becomes my duty to inform you of that circumstance, and to request that you will prepare for a full settlement of your accounts. I must also request, that you will be pleased to make out and transmit to me an accurate list of all the certificates issued, with their dates, sums, and the persons to whom they were given. It will be necessary that an account of the public debt be prepared for the public inspection. This cannot be done until the proper materials be obtained from the several offices; wherefore, I make no doubt that you will exert yourself to comply with my request. As I am informed that the late Treasury Board gave orders for sending back the blank certificates, I suppose they are now on the way hither; but, if that should not be the case, I must require an immediate performance of the directions given by the Board, and I must insist that no more certificates be issued on any pretence whatever.

With great respect, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE GOVERNOR OF VIRGINIA.

Philadelphia, October 16th, 1781.

Sir,

I would willingly write you an official letter by this post, on the subject of supplies for the year 1782; but I must decline it, until I can obtain the proper estimates, which are now preparing. In the meantime, as I learn that your Legislature are now sitting, I write you this private letter on that subject.

My former public letters will fully have stated my ideas as to the present demands on the existing requisitions of Congress. I hope and expect, that those requisitions will be immediately complied with. It is my decided opinion, founded on the best observations I have been able to make, and the most accurate and extensive information I could possibly obtain, that paper emissions will no longer answer the purpose of carrying on this war, and experience must by this time have convinced every dispassionate observer, that specific supplies are at once burdensome to the people, and almost useless to the government.

It is unnecessary to draw the conclusion, which I am sure will strike your mind, that a revenue in hard money must be obtained; but I will observe to you, that the present moment is very favorable to that object in your State. While the war is in your country, the expenses of it will be so diffused as to possess its inhabitants of specie, and should it be happily removed to a distance, your commerce will bring in resources equal to your necessities.

I take the liberty to request that you will communicate these sentiments to my worthy friend Colonel Harrison, and I pray you to believe me very sincerely your friend, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, October 18th, 1781.

Sir,

The honorable committee, on the letter of the Board of War of the 11th instant, have favored me with a perusal of it. I think it my duty, on this occasion, to express my approbation of that attention the Board of War have paid the public service. That letter has opened a subject, which had pressed itself strongly on my mind, and which I had determined to mention to Congress, but was restrained by the hope, that a review of their own proceedings, and a sense of our difficulties would soon have rendered it unnecessary.

This matter being now before them, it would be unpardonable in me not to enforce those sentiments, which I myself am most deeply affected with. I am convinced, that a slight view of the situation, in which their finances now are, will give a strong impression of the necessity there is to guard against pecuniary solicitations from every quarter. If the revenue were equal to the demands upon it, nothing can be more simple and clear, than that all those demands should be speedily and punctually paid. Unfortunately this is far from being the case. I believe much further than many are aware of. When I say, that I cannot command more than one twentieth of the sum necessary for the current service of the year, I am within the strictest bounds of truth. It is with equal truth that I assure you, that I have not since my appointment received one shilling from any State in the Union, Pennsylvania excepted. And from Pennsylvania I have received paper money to the amount of the four tenths due to the United States, the appropriation whereof Congress must be thoroughly acquainted with, and seven thousand five hundred pounds in specie, which is applied to the payment of contracts within the State, and still leaves a balance against them for articles of their specific supplies which I have furnished.

The moneys drawn for by permission of the Minister Plenipotentiary of his Most Christian Majesty have been already applied to the public service, and the engagements I have entered into amount to a very considerable sum.

I enclose a few out of many articles, which immediately suggest themselves to me. Had I sought for the smaller instances they would have been numerous, and of course weighty. Instead of this, I have omitted many considerable articles, such for instance, as expense of stores for the hospitals, much of which is now due, and more to be immediately provided for. You will perceive, that I have not even mentioned the expense of transporting military stores, such as shot, shells, &c. to the camp before York, which the Board of War assure me will be very great, and indeed it must be so. Neither have I mentioned the expense of transporting money, clothing, medicines, arms, &c. from Boston to this place, and hence to the southward. Besides all this, I am told it will be necessary to procure ten thousand suits of clothes for the ensuing winter. If this be so, that article alone will amount to at least two hundred thousand dollars.

I might go much further, but I shall only observe, that exclusive of all these things the enclosed estimate amounts to above two hundred thousand dollars. Yet attention must be paid to the wants of three large armies. Congress know the extent of my means.

In this situation of things, it is proper to ask on every occasion, before private grants of money are made, whether the public service will not suffer by it. But this is not all, I am bound to observe, that the expectations of our troops now in the field may be much disappointed, and that they will conceive it unjust to dispose of any moneys, which might be spared, unless as an equal division among them. To press this point any further, would imply a want of that confidence, which I really have in the wisdom and discernment of Congress. They will see, that while the indispensable calls for money to forward general operations continue to be so loud as to draw from me all my private funds, it cannot be expected, that I shall pay warrants in favor of individuals. I am sure they will feel for me, when I mention the pain I suffer from being compelled to refuse money on their resolutions. A regard for their honor is the second motive of my conduct. I hope it is unnecessary to say, that a regard for the public interest is the first. I am far from wishing to insinuate a line of conduct to Congress; but I must place before their eyes those facts, which it is for their honor and their interest to be informed of. They will draw the proper conclusions.

With the most perfect respect, I am, &c.

ROBERT MORRIS.

ESTIMATE.

Dollars.

Due to the French Treasury for so much borrowed of them at Chester, delivered at the head of the Elk, 26,000

Due to the French army, a quantity of flour exchanged in the State of New York, to be replaced at the southward, which will require 10,000

Due for transports hired in the Delaware and Chesapeake, 15,000

For flour now purchasing to supply General Heath's army, 10,000

Horses purchased last summer for the Quarter Master General, and shortly to be paid for, 4,000

To recruit and mount Colonel Armand's Legion, 50,000

Saddles and accoutrements for General Greene's army, 14,000

Flour lately purchased in Virginia for General Washington's army, and now due, 5,000

Articles necessary for General Greene's army and the transportation of articles to him, and money for essential services, 5,000

Clothing purchased on a credit for Fort Pitt and Wyoming, 5,000

Estimate from the Navy Board at Boston, 40,000

Rum now sending on to General Washington's army, 5,000

My own money already advanced for the public service, 12,000 -------- $201,000

* * * * *

CIRCULAR TO THE GOVERNORS OF THE SEVERAL STATES.

Office of Finance, October 19th, 1781.

Sir,

I am now to address you on a subject of very great importance. I have to detail some facts, which will demand the most serious attention from every Legislature, and from every public officer in the United States. It is my determination to administer the affairs intrusted to my care according to plans, which are founded in sincerity and truth. Convinced of the folly of our enemy, in supposing that any considerable body of men in the United States are opposed to the Revolution, I am persuaded that, in order to remove the greater part of our difficulties, the first proper step is to state them fully to the people through their representatives. It shall, therefore, be a part of my study to prepare every transaction for the public eye, so that the meanest individual may be in due time informed of those affairs, in which, as a free citizen, he is interested. The various reports, which have been circulated, the publications in the several gazettes, and even letters from some who ought to have known better, all these things have conspired to infuse an opinion, that every power in Europe is favorable to us; that great sums of money are already advanced to us, and that still greater may be obtained. Whatever may be the fate of my administration, I will never be subjected to the reproach of falsehood or insincerity. I, therefore, take the earliest moment, in which I am permitted, to make those communications, which will give an insight into our real situation.

With respect to the situation and politics of Europe, it is neither my business to detail them, nor am I in a capacity to do it with certainty. But this, at least, is certain, that the disposition of the European powers, however friendly, has been too much relied upon. As a proof I need only observe, that not a single State has acknowledged our independence except France, although our alliance with that respectable monarchy has now subsisted nearly four years. Yet that monarchy is certainly the first in the world. It is in the closest connexion with Spain. Spain has long been engaged in the war, and still longer solicited to form a union upon the basis of the treaty with France. The armed neutrality, which gave such splendid hopes to many, has not yet produced the benefits expected. I will not proceed on the ground of conjecture, nor is it necessary for me to dwell longer on our political state with respect to foreign powers. But as there is little reason to expect, so I hope there is no American, who would wish an alliance with any empire on earth, until they shall be so sensible of our importance, as to treat on principles of equality.

The public opinion, as to the conduct of other Princes and States, has greatly injured us by relaxing our exertions. But the opinion as to pecuniary aid has been still more pernicious. People have flattered themselves with a visionary idea, that nothing more was necessary, than for Congress to send a Minister abroad, and that immediately he would obtain as much money as he chose to ask for. That, when he opened a loan, hundreds would run to see who should have the honor of subscribing to it, and the like. But surely a moment's reflection should have convinced every reasonable man, that, without the clear prospect of repayment, people will not part with their property. Have the efforts in this country been so successful as to ground any hopes from abroad? Or, is it to be supposed, that foreigners will interest themselves more in our prosperity or safety, than our citizens? Or, can it be believed, that credit will be given abroad before solid funds are provided at home? Or, could it be imagined, that the disorders necessarily incident to a great revolution, would be considered as a better source of trust and confidence, than the regularity and consistency of ancient establishments?

The Congress, conformably to the public wish, have appointed Ministers, requested grants, and opened loans. In Holland they have got nothing, and in Spain but very little. Loans were expected from individuals in Holland, but nothing of that sort has been, or probably will be, obtained. Loans were not expected in Spain, unless from the King, and from him they have been solicited with but little success.

The distressed situation of public affairs forced the Congress to draw bills of exchange on their Ministers. Some were drawn on France, some on Spain, and some on Holland. The first were honored and paid, the others were accepted, but recourse was finally had to the Court of France for the payment of those also. They were drawn at long sight. The sales were slow. They were remitted from time to time, and every opportunity afforded the Ministers of the United States to obtain the moneys for discharging them, but in vain. Of consequence, these bills have been regularly referred to the Court of France for payment; and this has done us injury, by anticipating the aid, which France has been disposed to afford us, and at the same time has justly alarmed and greatly embarrassed the French Ministry.

These things it appears necessary that you should know, and your Legislature will undoubtedly draw the proper inferences. They will see how much has been suffered by delaying to call forth the resources of our own country, and relying on the empty bubbles of hope, instead of the solid foundations of revenue. They will, I trust, clearly see, that all their hopes and expectations are narrowed down to what France may give or lend. But here, as in other cases, delusion takes place of reality. We flatter ourselves with ideal prospects, and are only convinced of our folly, by the fatal crisis of national distress. In order that you may clearly understand the succor afforded by France, I enclose an account extracted from a statement lately, furnished to Congress by the Minister Plenipotentiary of his Most Christian Majesty.