Part 11

With respect to this matter of contracts, I have some reason to believe that it has been misunderstood, and, therefore, I shall take the liberty, of giving some little information on the subject. When I was called into office, I had a thorough conviction, that supplying by contracts was the most effectual and most economical, but I had no money, and credit was at so low an ebb, that most people doubted whether any one would contract. At that time, the State of Pennsylvania gave me assurances of hard money to procure the articles of specific supplies due from that State on the requisition of Congress. I immediately purchased a part of those supplies on my private and personal credit and assurances, and I advertised for a contract to supply rations at Philadelphia. By degrees I extended the contracts throughout Pennsylvania; whereas, if I had advertised for them at once, I might, probably, have failed in obtaining proposals; or if not, those who inclined to risk it would have made the public pay dear for the credit reposed in the Minister. The contracts of Pennsylvania were paid out of moneys granted for furnishing the supplies, and the articles are carried to account on the requisitions. Having reason to expect support from the middle and eastern States, I have extended the contracts for supplies through all the country northward and eastward of Potomac river; and in order that you may judge of the effect, I will mention, that, on application for pay to the department of the issuing Commissary, I required a return of them, and of their monthly pay; which being made, I found that within that district it amounted to ten thousand five hundred and twentyfive dollars; which is annually for the salary alone, exclusive of all other expenses, one hundred and twenty six thousand dollars.

The rations delivered at West Point and its dependencies are supplied at the rate of nine and a half ninetieths of a dollar for each ration; consequently, that sum will yield one million one hundred and ninetysix thousand five hundred and twentysix rations, which is something more than three thousand two hundred and seventyeight per day. But when it is considered, that salaries were not the only expenses of a department, it is certainly estimating within bounds to suppose, that five thousand soldiers are now fed every day on what it formerly cost the public to support the issuers of provisions in a part of the United States. I should have pursued the business of contracting throughout America, had I received any assurances of taxation, which would warrant the procedure. But I had none, and I did not dare risk myself in making engagements, which I found no probability of keeping. But whenever I can see any way clear, I shall certainly do it, and, I trust, that the effects will be as beneficial as they have been elsewhere.

Having already observed on the necessity of early and vigorous exertions, and mentioned that I had done everything towards them which was in my power, I have only to add, that unless we are properly supported, everything so done has been thrown away. The views of the Commander in Chief will be disappointed; the combinations intended with our allies will be deranged, and the enemy will derive that advantage from our negligence, which we might have derived from their weakness.

It gives me great pain to learn that the public service is too often interrupted, and the attention of men diverted from it by little trivial disputes of a private, partial, or local nature, which are comparatively of little consequence. This is a conduct unworthy of wise men, and such as cannot be justified. Surely it is best first to provide for the defence of our country before we squabble about minute objects of controversy. If we should be told that the British were so materially divided in their Parliament, that in contentions about trivial disputes they delayed granting to the Crown effectual aid of money, we should certainly form very splendid expectations from that circumstance. Judge then, whether our enemy's hopes are not raised by our dissensions. Or rather let me ask, if they have not loudly asserted that they would prove ruinous to the cause of independence; nay, have they not boasted that those dissensions originated in British influence or British gold? What then must be the opinion of foreigners and strangers? What will they not conclude from a conduct, which according to their habits of reasoning, can only be accounted for by disaffection, folly, or madness? Let us, for heaven's sake, while engaged in a cause the most honorable, the most virtuous, and which must endear the present generation to future ages; let us preserve a conduct noble, dignified, and worthy of that glorious cause; in pursuit of the greatest, the dearest object which man can possess; in the fair road to peace, liberty, and safety, let us not fall out by the way. But united to, and supporting each other, let our efforts be equal to our claims, and let us show that we have the perseverance to obtain what we had the spirit to demand. Let us at once become independent; really and truly independent; independent of our enemies, of our friends, of all but the Omnipotent.

I have the honor to be, &c.

ROBERT MORRIS.

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TO THE PRESIDENT OF CONGRESS.

Office of Finance, February 18th, 1782.

Sir,

I do myself the honor to submit to the United States in Congress assembled, through your Excellency, the propriety and necessity of adopting immediate measures for adjusting the accounts of the four following departments; namely, the Commissary's, the Quarter Master's, the Hospital, and the Marine; up to the last day of December, 1781, inclusive. Having long and attentively considered this subject, it appears to me to be among those cases, which do not admit of the common forms. There must be a degree of vigor and decision in the conduct of the business, which few men possess a knowledge of; business not commonly to be found, and such uncorrupted and uncorruptible integrity as will give security to the United States. What may be an adequate reward for the services of such men, I really do not know, but I have such reason to believe that many fraudulent practices have happened, and that, in some cases, considerable balances are due to the United States, that I cannot in consistency with my duty avoid proposing to Congress the following resolutions.

"That four Commissioners be appointed for the settlement of accounts, namely; one for the Commissary's department, one for the Quarter Master's department, one for the Hospital department, and one for the Marine department; and that each of the said Commissioners have full power and authority to liquidate the said respective accounts up to the last day of December, 1781, inclusive.

"That the Superintendent of Finance be authorised and directed to appoint the said Commissioners, and to agree with them for a reward for their services respectively, and also with respect to the allowances to be made to their clerks; and that he report the names of the said Commissioners to Congress.

"That it be recommended to the several States, immediately to pass laws authorising such Commissioners to send for persons and papers, and to examine witnesses upon oath."

These I propose only as a sketch, which the wisdom of the United States in Congress will mould into such form as shall be most proper. I will only observe one thing, which is, that the proposition that I should appoint such Commissioners comes from me. I have no particular persons in view, but shall be happy to find those who are proper. I am far from being desirous of appointment to office, but this is an occasion so important, that I cannot sacrifice my duty to false notions of delicacy. Characters fit for such an intricate and difficult business cannot easily be found, still less can they be known to the several members of Congress, and the debates which sometimes take place when appointments are made, deter the most proper persons from putting themselves in the way of nomination. Besides this, as it is not possible that the several members can be sufficiently acquainted with the talents of the particular persons, it is better that the appointment should be in one, who can be made accountable for an improper choice. I take the liberty to observe, that nothing will give more satisfaction to the people at large than to find that these things are put in a proper train; for the complaints are general, and I am convinced, that in some cases at least they are well founded.

My reason for urging this matter at the present moment is, that I am not only pressed on the subject by several dismissed officers of those departments and by their creditors, but I have also had recent information of very considerable frauds and practices; and on conferring with the Controller of the treasury this morning, the plan above proposed appeared not only the most eligible, but indeed the only effectual one. It is submitted, with all due deference, by your Excellency's most obedient, &c.

ROBERT MORRIS.

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CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, March 9th, 1782.

Sir,

On the 20th and 27th of last month, the United States in Congress passed Acts for settling and finally adjusting all the public accounts, up to the first day of the present year. These important Acts would immediately have been transmitted, but I wait the event of some additional propositions upon that subject, which are now under the deliberation of Congress, and then I shall have the honor of laying before you the whole of this very important business, so that it may be maturely considered in a general and comprehensive point of view.

At present I shall confine myself to congratulating your Excellency, which I do with the most unfeigned pleasure, on the prospect which begins to open, of adjusting these intricate and almost obsolete transactions of relieving the various public creditors, and consequently of rescuing and restoring the public credit. Let me add, Sir, that I consider these things essential to the consolidation of our federal Union, to the promotion of general harmony and generous confidence throughout the United States, and to the establishment of our glorious independence on the solid basis of justice. I am to request, Sir, that your public accounts be put in a state of preparation, so that the person appointed for that purpose may be able speedily to investigate them; as much time and consequently much expense will be thereby spared.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO MR GRAND, AT PARIS.

Office of Finance, March 9th, 1782.

Sir,

In a letter, of this day to Benjamin Franklin, Minister Plenipotentiary of the United States of America to the Court of Versailles, I inform him, (which information I am now to convey to you,) that I shall draw bills on you, as a market for them may offer, to the amount of five hundred thousand livres tournois, on account of the United States of North America. I have detailed to him everything necessary on the subject, which he will communicate. I am to request of you, that you will duly honor and pay those bills, giving me notice of every transaction, from time to time as occasion may offer and require. The necessary funds are, I presume, in your hands already, or will be before this reaches you; but at any rate Dr Franklin will provide them in season.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 9th, 1782.

Sir,

The Secretary of Foreign Affairs yesterday transmitted to this office, the letters and invoice brought by Captain Jackson from Messrs Neufville of Amsterdam. Upon perusing them I am very sorry to observe, not only that there has been very great mismanagement, but also that the letters do not contain that clear and satisfactory account of the business which ought to have been transmitted. There is reason to believe, that a considerable part of these goods are of British manufacture, and consequently such as cannot be brought within the United States. As these matters are not clearly stated, it would be useless to go at present into an inquiry who has been or is to blame, and therefore any particular observations from me would be both unnecessary and improper.

I have written to Dr Franklin to take this business under his inspection, and to cause all the goods of British growth and manufacture to be sold. As to the remainder of the goods, the propriety of selling or shipping them must depend on many circumstances, a knowledge of which cannot be acquired here, so as to give consistent orders what shall be done there. I have, therefore, desired Dr Franklin to cause the goods to be so disposed of, as shall to him appear most for the interest of the United States. My reasons for referring the whole matter to him were, because he has already had so much to do with it as at least to have paid the money, and is, I, presume, privy to the original agreements made by Colonel Laurens; because he will know what goods are coming out from France, and consequently how far any or all of those in Amsterdam, which are not of British manufacture may be necessary for us; because he will have an opportunity of explaining such parts of the business as may be proper to explain to the Court of France, who has had some reason to complain, or at least thinks that she has; and, finally, because I shall draw bills, the payment of which will be at Paris under his direction, and if the other resources fail, the proceeds of these goods will enable him to honor them.

With great respect, I am, &c.

ROBERT MORRIS.

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TO THE BARON D'ARNOT.

Office of Finance, March 18th, 1782.

Sir,

I have received your note of the 9th instant, and in answer am to inform you, that if his Prussian Majesty should incline to procure for his subjects a part of the emoluments attending the commerce with this country, the importance whereof can be easily estimated, from the riches it poured into Britain while she enjoyed the benefit of monopoly, all that is needful to be done is, to set open his ports to our vessels, and protect them whilst there. The merchants of this country are unrestricted in their enterprises and commercial pursuits; they will naturally trade where they shall find their profits most certain and permanent; and I have not a doubt but Prussia would have her share of their trade, were the government to give the proper encouragement to it.

As to the supplies of the army of the United States, I have determined in future to contract for all such articles with individuals, on whose abilities for procuring goods on the best terms, I can depend. They will import them at their own risk; consequently you see I can by no means engage to purchase any of the commodities you mention at St Thomas's; but as that island seems to be the general mart in the West Indies, where the people of America resort to exchange their produce for the manufactures of Europe, I have not a doubt but any of his Prussian Majesty's subjects, who may be inclined to this business, will readily find an occasion of disposing of their goods there, and receiving in exchange for the same, the staple articles of this country.

As to what relates to your personal affairs, you will find that I have conformed to your views, and I expect what is done in that respect will be much to your satisfaction.

I am, Sir, &c.

ROBERT MORRIS.

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TO B. FRANKLIN.

Office of Finance, March 23d, 1782.

Sir,

Applications being frequently made by the several Loan Offices, for orders to renew sets of exchange, in consequence of proof made to them by the proprietors of interest bills, that the first, second, third, and fourth bills, have been lost and destroyed, or by accident prevented from reaching the persons to whom they were remitted, and as it is but just in such instances to renew the same, I have caused a number of bills to be struck, of the same denominations, and in the same style, manner, and tenor, except that they are fifth, sixth, seventh, and eighth bills, and when made use of will be filled up in the same manner as the first four were, and issued from the same office. I give you this notice, that you may direct the banker to pay due honor to any one of those bills in all instances, where no one of the set, consisting of eight, has before been paid; and of course he will before such payment always satisfy himself, that none of the others have been honored. This general advice will I think answer the purpose, and render unnecessary particular advice with each renewed set of exchange.

I have the honor to be, &c.

ROBERT MORRIS[4]

[4] _March 27th._ Having determined to draw bills on Mr Grand at Paris, for five hundred thousand livres, under such limitations and conditions as must secure the payment, the Minister of France being absent, I consulted M. de Marbois, _Chargé d'Affaires_, read to him my letter to Dr Franklin, explained my plan, and finally had his approbation, so far as he is authorised. This gentleman also communicated to me the Minister's letters to the Court, so far as they related to our finances, and I found them to breathe the true spirit of attachment and friendship to America. _Diary._

* * * * *

TO OLIVER PHELPS.

Office of Finance, March 30th, 1782.

Sir,

As I promised during the conference, with which you honored me yesterday, to give an answer in writing to the proposition you made in consequence of a resolution passed by the Legislature of Massachusetts, on the 5th day of this month, I shall now perform that promise, but in doing it I shall think it unnecessary to go into that full detail of reasoning on the subject, which took place in conversation between us; and I am the more readily induced to decline this, because you, Sir, seemed satisfied of the force and propriety of the reasons urged; wherefore when you come to make the communication to the State, your candor will induce, and your abilities enable you, to do me ample justice.

I will, therefore, content myself with observing, that in all countries engaged in war, experience has sooner or later pointed out contracts with private men of substance and talents equal to the undertaking as the cheapest, most certain, and consequently the best mode of obtaining those articles, which are necessary for the subsistence, covering, clothing, and moving of an army. The experience of other countries could not satisfy America. We must have it of our own acquiring; we have at length bought it; but the purchase had nearly been our ruin. I had been long since convinced, that nothing could save us, but opening all the American ports to unrestrained commerce, all the markets of America to the free sale and purchase of every article of its production and import; and by taking away all restraints on money, leave every individual to judge and act for himself. I labored hard in consequence of this conviction, to introduce such measures into the State, of which I am a member, and finally was happy enough to succeed; the good consequences were immediately seen and felt; the example, has been followed, and it is to be attributed to the freedom, which we now enjoy, that persons can be found willing to contract for furnishing supplies to the American army.

I have succeeded in obtaining many contracts on very reasonable terms. The saving to the United States thereby is immense, and I am confident, that neither the patriot who fills the chair of government, the honorable gentlemen who compose the council, nor those who represent the country of Massachusetts, would wish me to make an engagement, which in partiality to that State, would in its effects destroy a system, that has been proved so truly economical. I cannot, Sir, enter into the engagements proposed by Massachusetts, without being exposed to similar claims in twelve others, and I feel the absolute necessity and propriety of declining every application of the kind. The persons who contract with me to supply the armies of the United States, must make purchases of the articles necessary; their interests will lead them to those markets, which will supply cheapest, however remote from the scene of action, and this will give all the States a fair chance of obtaining money, or bank notes, through that channel to pay their taxes. Those who will give most labor or goods for money and notes, will undoubtedly obtain the greatest share thereof.

I cannot quit this subject, without observing, that taxing in specifics is expensive to the people, cumbersome to the government, and generally inadequate to the object. I think if every individual in the country is left to dispose as he pleases of his property, and compelled to pay his taxes in money or bank notes, he will satisfy the tax by the sale of much less of that property, than in the case of a specific tax taken from him to raise the sum. Nothing could gratify me more than to have an opportunity of evincing to the State of Massachusetts how much I am disposed to comply with her wishes in every instance, that my general duty to the United States will permit.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, April 15th, 1782.

Sir,

In a circular letter, which I had the honor to address to your Excellency, on the 9th day of last month, you were informed, that the United States in Congress had on the 20th and 27th of February, passed Acts for settling and finally adjusting all the public accounts; and that those Acts would have been transmitted immediately, but that I was induced to wait the event of some additional propositions upon that subject, which were then before Congress.

As I now discover that those propositions meet with much greater delay, than at that time was expected, and as it is still uncertain when they may be decided upon, I think it improper to detain longer the Acts that were passed, although several considerations induced a desire to have the whole system communicated to the several Assemblies at one and the same time.

You will observe, Sir, that it is earnestly recommended to the several Legislatures, duly to empower and authorise the United States, in Congress assembled, to make a final settlement of the proportions to be borne by each respective State, of the general expenses of the war, from the commencement thereof, until the 1st day of January, 1782. An immediate compliance with this recommendation is of infinite importance to the Union, as it is also to each of the States. No determination of quotas, which Congress can at this time possibly make, will create a difference for or against any State equal to the expense, which will arise either by disputing its quota, or by delaying to have it fixed. If Congress are now empowered, they must be determined by general principles, and if the decision is delayed ever so long, general principles must at last be resorted to, and that after large sums shall have been expended by each of the Governments, in attempting to ascertain their respective numbers of inhabitants, value of property, quantity of lands, annual income, &c. The returns on these points severally, cannot be made with certainty and exactitude _as to the time past_, and therefore they will only afford more ample field for disputation; disputes, which if the cause be not removed by a compliance with the present requisition, may probably deprive us of the blessings of peace after the war with Great Britain shall cease.