Part 1

THE

DIPLOMATIC CORRESPONDENCE

OF THE

AMERICAN REVOLUTION.

VOL. XII.

THE

DIPLOMATIC CORRESPONDENCE

OF THE

AMERICAN REVOLUTION;

BEING

THE LETTERS OF BENJAMIN FRANKLIN, SILAS DEANE, JOHN ADAMS, JOHN JAY, ARTHUR LEE, WILLIAM LEE, RALPH IZARD, FRANCIS DANA, WILLIAM CARMICHAEL, HENRY LAURENS, JOHN LAURENS, M. DE LAFAYETTE, M. DUMAS, AND OTHERS, CONCERNING THE FOREIGN RELATIONS OF THE UNITED STATES DURING THE WHOLE REVOLUTION;

TOGETHER WITH

THE LETTERS IN REPLY FROM THE SECRET COMMITTEE OF CONGRESS, AND THE SECRETARY OF FOREIGN AFFAIRS.

ALSO,

THE ENTIRE CORRESPONDENCE OF THE FRENCH MINISTERS, GERARD AND LUZERNE, WITH CONGRESS.

Published under the Direction of the President of the United States, from the original Manuscripts in the Department of State, conformably to a Resolution of Congress, of March 27th, 1818.

EDITED

BY JARED SPARKS.

VOL. XII.

BOSTON: NATHAN HALE AND GRAY & BOWEN; G. & C. & H. CARVILL, NEW YORK; P. THOMPSON, WASHINGTON. 1830.

Steam Power Press--W. L. Lewis' Print. No. 6, Congress Street, Boston.

CONTENTS

OF THE

TWELFTH VOLUME.

ROBERT MORRIS'S CORRESPONDENCE,

CONTINUED.

To M. de la Luzerne. Office of Finance, November 3d, 1781, 3

Little probability of being able to raise an adequate revenue.--The people are unaccustomed to taxation.--Large sums must be applied to extinguishing the public debt and calling in the depreciated paper currency.--France must be relied on to assist in this emergency.--Important advantages will result to France herself from this step.

To the President of Congress. Office of Finance, November 5th, 1781, 8

Relative to the Acts of Congress for raising supplies.--Objections to certain clauses.--Final apportionment of the expenses between the States.

To M. de la Luzerne. Office of Finance, November 6th, 1781, 14

Necessity of pecuniary aid from France.

To the Count de Rochambeau. Office of Finance, November 15th, 1781, 15

Repayment of money advanced by the Court.-- Congratulationson the success at Yorktown.

Circular to the Governors of the States. Office of Finance, November 17th, 1781, 16

Transmitting Acts of Congress for raising supplies.

George Washington to Robert Morris. Mount Vernon, November 19th, 1781, 17

Payment of the officers of the army.

To the Governor of Connecticut. Office of Finance, November 20th, 1781, 18

Accounts between the State and the United States.-- The moneys designed for the general service must be paid into the Continental treasury.

Report of a Letter to Don Bernardo de Galvez, made to Congress, November 21st, 1781, 20

Settlement of accounts for sums advanced.

To M. de la Luzerne. Office of Finance, November 22d, 1781, 22

Pecuniary aid promised by him.--Rate of exchange.--Statement of former grants of his Court.

To M. de la Luzerne. Office of Finance, November 26th, 1781, 26

Answer to the Minister's assertion, that he is not authorised to make further drafts.--Moneys advanced to any particular State are not chargeable to the United States.

To B. Franklin. Office of Finance, November 27th, 1781, 27

Requests him to communicate this letter to M. de Lafayette.--Confusion of the public accounts.-- Account of his efforts to obtain supplies from the States.--Difficulties attending this attempt.-- Causes of the difficulties.--Endeavors to settle past accounts, and to procure funds for the public debt.--Prospect as to future supplies in the United States.--Statement of the supplies already furnished by France.--Account of his correspondence with M. de la Luzerne on the drawing of bills by Mr Morris, and the amount due by the French Court.--Disposition of moneys remaining in Dr Franklin's hands.--Languor of the States in providing for the expenses of the war.--Necessity of further aid from France.

To the President of Congress. Office of Finance, November 29th, 1781, 57

Enclosing a letter from Mr Jay, declaring his inability to meet the drafts made on him.

To Mr Grand. Office of Finance, Dec. 3d, 1781, 58

Informs him of his intention of employing him as United States banker.

To M. Joly de Fleury. Philadelphia, December 3d, 1781, 60

Importance of furnishing pecuniary aid to the United States.

To B. Franklin. Office of Finance, December 5th, 1781, 61

Impolicy of the purchases in Holland.--Disposition of the loan, if obtained.--Disposition of the Americans towards the French.--Increasing demand for French goods.

To the Governor of New York. Office of Finance, December 11th, 1781, 63

Supplies furnished by the State.

To the Governors of North Carolina, South Carolina, and Georgia. Office of Finance, December 19th, 1781, 66

Proposing a plan for the payment of the Southern army.--Necessity of a tax law by the States for effecting this purpose.--Answer to the objections against this measure.--Objections to measures compelling the receipt of the notes payable in taxes, and regulating prices.

To the Governor of Rhode Island. Office of Finance, December 29th, 1781, 72

Necessity of continued activity on the part of the States.--Necessity of prompt compliance with the requisitions of Congress.

Circular to the Governors of the States. Office of Finance, January 3d, 1782, 74

Negligence of certain States to lay the impost recommended by Congress.--Fatal effects of a derangement of the finances.

Circular to the Governors of the States. Office of Finance, January 8th, 1782, 76

Establishment of the Bank of North America.-- Advantages of the institution.

To the Governor of Rhode Island. Office of Finance, January 14th, 1782, 78

Answer to the representations of the Assembly, of their inability to comply with the requisition of Congress.--Necessity of providing funds.-- Insufficiency of specific supplies.--Rhode Island manufactures.

To the President of Congress. Office of Finance, January 15th, 1782, 81

State of the currency.--Advantages of a general currency.--Use of metals as a circulating medium.--Silver the best money standard.--Utility of coinage.--The decimal ratio is the most convenient.--Plan of a metallic currency.

George Washington to Robert Morris. Philadelphia, January 25th, 1782, 95

Proposes to send officers to the New England States, with representations of their deficiencies of troops.

To the President of Congress. Office of Finance, February 11th, 1782, 97

Financial embarrassments.--Refusal of several States to comply with the requisitions of Congress.--No prospect of foreign aid.--Measures taken in the Department of Finance.--Advantages of prompt and vigorous measures in the field.-- Necessity of requiring men and money from the States.--Proposes a series of resolutions, calculated to accomplish the desired object.-- Superior advantages of Continental forces.

Circular to the Governors of the States. Office of Finance, February 15th, 1782, 110

No further foreign aid is to be expected.-- Necessity of establishing a public credit by proper funds.--Financial distresses.--Necessity of preparations for a new campaign.--Explanation of the system of raising supplies by contracts.-- Statement of his proceedings on this system.--The public service interrupted by local and party dissension.--Exhortations to union, energy, and promptness of action.

To the President of Congress. Office of Finance, February 18th, 1782, 118

Proposing the appointment of Commissioners for the settlement of the accounts of the Commissary, Quarter Master, Hospital, and the Marine.--Frauds in these departments.

Circular to the Governors of the States. Office of Finance, March 9th, 1782, 121

Settlement of public accounts to 1782.

To Mr Grand, at Paris. Office of Finance, March 9th, 1782, 122

Intends to draw bills on him.

To the President of Congress. Office of Finance, March 9th, 1782, 123

Mismanagement in the purchase of goods in Holland.-- Directs Dr Franklin to sell those of British manufacture, and to dispose of the rest.

To the Baron D'Arnot. Office of Finance, March 18th, 1782, 124

Prussia may secure a share of the American commerce by opening her ports.--Cannot agree to purchase supplies of Prussian subjects at St Thomas's.

To B. Franklin. Office of Finance, March 23d, 1782, 125

Mode of renewing sets of exchange, on account of certain lost bills.

To Oliver Phelps. Office of Finance, March 30th, 1782, 126

Advantages of raising supplies by private contracts.--Declines entering into any engagement favoring Massachusetts in the purchases.

Circular to the Governors of the States. Office of Finance, April 15th, 1782, 129

Transmitting Acts of Congress recommending the statement of accounts between the United States and the respective States up to 1782.--Importance of settling the quotas and contingents of the States.

To Nathaniel Appleton. Office of Finance, April 16th, 1782, 131

Necessity of establishing a public fund.

To B. Franklin. Office of Finance, April 17th, 1782, 132

Giving him notice of drafts to be drawn on Mr Grand.

To John Jay. Office of Finance, April 23d, 1782, 134

Enclosing a letter to the Secretary of Foreign Affairs.

George Washington to Robert Morris. Head Quarters, April 23d, 1782, 134

Appointment of an Intendent to decide on disputes between the army and the contractors.--Expresses his satisfaction with the system of contracts.

To Major General Greene. Office of Finance, April 24th, 1782, 135

Inefficiency of the confederacy.--Financial difficulties.--Abolition of partial payments.-- Neglect of the States.

To the Governor of Virginia. Office of Finance, April 27th, 1782, 138

Enclosing his correspondence with the French Minister on the assumption by the United States of the debt of the State of Virginia, for supplies advanced by France.

To the Secretary of Foreign Affairs. Office of Finance, April 27th, 1782, 140

Desires a statement of the expenses of the Foreign Department.

To the Governor of Maryland. Office of Finance, April 30th, 1782, 140

Estimate of expenditure for the current year.-- Intends to give publicity to the accounts.

To John Wendell. Office of Finance, May 1st, 1782, 142

Explaining the plan, objects, and operations of the National Bank.

Report to Congress on a Memorial of the Merchants of Philadelphia. Office of Finance, May 4th, 1782, 144

On the subject of convoys for American ships.

To the President of Congress. Office of Finance, May 8th, 1782, 145

The French Minister having given notice that no further advances will be made by his Court, it becomes necessary to provide for the payment of the foreign Ministers.--The Minister desires a settlement of the accounts between France and the United States.

Circular to the Governors of the States. Office of Finance, May 9th, 1782, 147

Redemption of the old Continental money.

To the President of Congress. Office of Finance, May 10th, 1782, 150

Enclosing a statement of American commerce.

Circular to the Governors of the States. Office of Finance, May 16th, 1782, 151

The requisitions of Congress inadequate to meet the expenditure.--Neglect of the States to comply with the requisitions.--Fatal results of this neglect.

To the President of Congress. Office of Finance, May 17th, 1782, 154

Fatal neglect of the States to raise supplies.-- Requests to be advised as to the expedience of sending the preceding circular.--The receipts of the previous five months equal only to one fourth of the daily expense.

To B. Franklin. Office of Finance, May 17th, 1782, 156

Desiring a statement of the moneys at his disposal.

To Mr Grand. Office of Finance, May 17th, 1782, 157

Transmitting bills on Dr Franklin.

To Mr Grand. Office of Finance, May 18th, 1782, 159

The state of commerce renders it impossible to sell bills on France.--Requests him to make shipments of specie.

To Messrs Le Couteulx & Co. Office of Finance, May 18th, 1782, 161

Reasons for employing Mr Grand as United States banker.

To B. Franklin. Office of Finance, May 23d, 1782, 162

Claims of Beaumarchais.

To the President of Congress. Office of Finance, May 23d, 1782, 163

The pecuniary supplies for 1782 have been anticipated.--Amount and expenditure of the same.

To the President of Congress. Office of Finance, May 27th, 1782, 165

Enclosing information from the French Minister of the sums advanced by his Court.

Information mentioned in the above Letter, 165

To B. Franklin. Office of Finance, May 29th, 1782, 167

Claims of Beaumarchais.

To Daniel Clarke. Office of Finance, May 30th, 1782, 168

Answer to the charges contained in Mr Clarke's letter.

To the President of Congress. Office of Finance, May 31st, 1782, 178

Proposes to bring the accounts of each department under one head.

To George Olney, of Rhode Island. Office of Finance, June 1st, 1782, 180

Importance and advantage of laying accurate accounts of the public expenditures before the nation.

Caron de Beaumarchais to Robert Morris. Paris, June 3d, 1782, 182

Urging the settlement of his accounts.

Abstracts mentioned in the preceding Letter, 184

To George Washington. Office of Finance, June 4th, 1782, 189

Financial deficiencies render it impossible to pay the army.

To Edward Carrington, in Virginia. Office of Finance, June 6th, 1782, 190

Objections in Virginia to receive Mr Morris's notes in taxes.

To the Secretary of Foreign Affairs. Office of Finance, June 7th, 1782, 191

There are no funds to pay either the principal or the interest of the public debt.

To Daniel Jenifer, of Maryland. Office of Finance, June 11th, 1782, 192

On the objections of Maryland to the apportionment of the expenses.--Other States entertain the same opinion.--Specific supplies more expensive than specie.

To the Governor of Connecticut. Office of Finance, June 14th, 1782, 194

Declining to delay the publication of the receipts from Connecticut.

To James Lovell, of Massachusetts. Office of Finance, June 16th, 1782, 195

Reasons for publishing the receipts from the States.

To George Washington. Office of Finance, June 21st, 1782, 196

Requesting him to take measures for the payment of the debts contracted by American officers, prisoners in New York.

To the Governor of Rhode Island. Office of Finance, June 26th, 1782, 196

Objections to the payment of troops by the separate States.

To George Washington. Office of Finance, June 29th, 1782, 197

Disputes between the contractors and the officers of the army.--Reason for providing for the civil list before paying the army.

To B. Franklin. Office of Finance, July 1st, 1782, 199

Statement of money advanced by France.--Reasons for preferring a loan to a grant.--Cargo of the Lafayette.

To Alexander Hamilton. Office of Finance, July 2d, 1782, 203

Announcing his appointment as Receiver for New York.

To M. Jolie de Fleury. Office of Finance, July 5th, 1782, 205

Community of the interests of America and France.

To Mr Grand. Office of Finance, July 5th, 1782, 206

Accounts between Mr Grand and the United States.

To the Governor of Maryland. Office of Finance, July 9th, 1782, 206

Supplies furnished by Maryland.--Importance of the financial department in the conduct of the war.

To James Lovell, of Massachusetts. Office of Finance, July 10th, 1782, 208

Importance of a national credit.--The sums drawn on him may be met by sales of the bills.

To the Governor of Maryland. Office of Finance, July 29th, 1782, 210

Specie can be raised for taxes by adopting proper measures.

To the President of Congress. Office of Finance, July 29th, 1782, 211

Advantages of loans in cases of extraordinary expenditure.--Different kinds of loans.--Relative advantages of domestic and foreign loans.--Necessity of establishing public credit.--This must be done by funding the public debt.--Amount of the debt.-- Impolicy of raising money by loans, without previously providing the necessary funds.--Impolicy of attempting to pay the interest of domestic debts by foreign loans.--The revenue granted must be sufficient for the purpose.--Nature of the revenue.-- Advantages of a land tax.--Answer to objections against it.--Poll tax.--Excise.--The collection of the tax.--Appropriation of the revenue.--Funded debt.--Sinking fund.--Answer to the objections against speculations in the funds.--Back lands.--Disputes as to the property and disposition of them.--Manner in which they may be rendered productive.

To the President of Congress. Office of Finance, July 30th, 1782, 238

Enclosing estimates for the year 1783.--Necessity of establishing a navy.--Mode of raising the estimates.

To the Governor of Rhode Island. Office of Finance, August 2d, 1782, 242

The impost recommended by Congress has been laid by all the States except Rhode Island.--Reply to the objections against passing the impost.--The refusal of Rhode Island suspends the whole operation of the impost.

To Sir Guy Carleton. Office of Finance, August 20th, 1782, 248

Exchange of prisoners.

To Alexander Hamilton. Office of Finance, August 28th, 1782, 248

Regrets his retirement from the office of Receiver.--Weakness of the confederacy.--Mode of collecting the taxes.

To George Washington. Office of Finance, August 29th, 1782, 252

Declares himself unable to supply the army.

To George Washington. Office of Finance, August 30th, 1782, 254

Object of the preceding letter.

To the President of Congress. Office of Finance, September 9th, 1782, 255

Urging the adoption of measures for raising a loan.

To George Washington. Office of Finance, September 9th, 1782, 256

Failure of his resources.

To Messrs Willink & Co., Amsterdam. Office of Finance, September 24th, 1782, 256

Intends to draw bills on them.

To Messrs Le Couteulx & Co., Paris. Office of Finance, September 24th, 1782, 257

Reasons for desiring that the money of the United States in Holland should be sent by the way of the Havana.

To B. Franklin, John Adams, and John Jay. Office of Finance, September 25th, 1782, 259

Transmitting Acts of Congress.

To John Adams. Office of Finance, September 27th, 1782, 260

Congratulating him on his success in Holland.

To Messrs Le Couteulx & Co. Office of Finance, September 27th, 1782, 261

Directs money to be placed in their hands. Terms on which it may be remitted to the Havana.

To B. Franklin. Office of Finance, September 27th, 1782, 262

Transmitting instructions to obtain a loan from France.--General disposition of the nation toward the French.--Attempts of the English to effect a reconciliation.--Reliance of Congress on the continuance of aid from France.--Necessity of immediate relief.--Vicious mode of taxation.

To B. Franklin. Office of Finance, September 27th, 1782, 270

Disposition of the loan mentioned in the preceding letter.

To B. Franklin. Office of Finance, September 30th, 1782, 271

Improvident purchases of American agents in Europe.--The stores belonging to the United States in Europe must be shipped.--Mr Grand's accounts.--Interest on the Dutch loan.--Reports of peace produce inaction on the part of the States.

To B. Franklin. Office of Finance, October 1st, 1782, 274

Directing application for a convoy from Havana to an American port, for moneys to be shipped at the former place.

To M. de la Luzerne. Office of Finance, October 2d, 1782, 275

Requesting him to make representations to his Court on the necessity of a loan.