Part 13

His Excellency, the Minister of France, in a late letter to me has officially declared, that in future no sums will be paid to the Ministers of the United States in Europe by his Court. It becomes necessary, therefore, to make provision for their support here. I immediately applied to the Minister of Foreign Affairs for an account of the annual salaries payable to his Department. I have received it this day, and do myself the honor to enclose a copy. I must take the liberty to observe, that the sum is very large, and such as cannot be advanced without greatly retrenching from essential services, at least in the present moment. It will, I humbly conceive, be necessary that arrangements should be taken, so that in future all such salaries as are payable to foreign Ministers be advanced in America, and negotiated by their respective Agents. This will be honorable to the United States, and I should suppose more agreeable to the gentlemen concerned.

The Minister of France has also observed, that the accounts between his Most Christian Majesty and the United States having become very important, by the greatness of the sums advanced and lent, it is indispensable that measures be taken to adjust them, and to avoid that confusion, which would be introduced by a longer delay. And in consequence, he has desired that Congress would transmit to Dr Franklin full power finally to settle those accounts, and in the name of the United States to execute the proper obligations for securing the debt and fixing the periods of payment. To this he adds, that it is not expected Congress can do anything towards payment during the war, but that they will fix the several epochas at which they shall be made.

To a proposition so reasonable, there will, I presume, be no objection. The solidity of the observation on which it is founded cannot be called in question, and I am induced by it to extend the remark a little further. The great sums which remain unsettled and undetermined between the French Court and the United States are alike unsettled between the latter and their public servants. How the accounts may stand I know not, but it is my particular duty to observe, that there appears to have been but little received for the great sums, which have been expended, and therefore it is highly necessary, that the public accounts of these States with their servants in Europe be also settled. It shall be my study in future to prevent the existence of such accounts, but their magnitude as well as other circumstances, makes me extremely solicitous to have them adjusted.

I have the honor to be, &c.

ROBERT MORRIS.

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CIRCULAR TO THE GOVERNORS OF THE STATES

Office of Finance, May 9th, 1782.

Sir,

I do myself the honor to enclose you copies of three accounts, which I have this day received from the Controller of the Treasury of the United States. Each State will from these accounts perceive what still remains for it to do in consequence of the resolutions of Congress, of the 18th of March, 1780.

As this is a circular letter, the observations I make shall be general, and such as result from a general view of the object. The particular application of them, dependent on local circumstances, will be made by those to whom such circumstances apply. The resolutions of the 18th of March, 1780, were in part directed towards the redemption of the old Continental money, and the opinions which may have been formed as to the issuing of a new paper medium, the paying of interest upon it, and the connexion with relation to the old, are immaterial under the present point of view.

Nothing can be more clear and simple than this, that the bills issued by Congress for support of the war should be redeemed by taxes. This was one capital object of the resolutions, and as to the apportionment, I am to presume it was as perfect as the fluctuating nature of human affairs will permit, and more especially so, when the few lights, which could the obtained, and the various circumstances of the several States, are compared with the very variable object of depreciated paper, which was then in contemplation. But, admitting for argument's sake, that the apportionment was not strictly right; this must also be admitted, that to redeem the paper was called for by principles both of reason and justice. It was, therefore, a duty of the several States to comply with the requisitions of their sovereign representative. For any inequalities, either actually existing, or which a subsequent change of circumstances might produce, would admit of a remedy, but a neglect of the resolutions had the inevitable consequence of injuring the public credit, weakening the public operations, and risking our very existence as a people.

But however strong the motives, which should have prompted a compliance, it will not be disputed that some of the States may have been in circumstances not to admit of the exertion, and whether this incapacity has arisen from exterior violences, or the defects of internal polity, or both, is in one sense immaterial, because the eventual consequence is the same. Yet, though charity may for a time overlook these defects, it becomes the duty of each State to apply a remedy, if the evil be in its nature remediable; and should they neglect what is in their power, they must expect complaints from Congress, and the servants of Congress from the other States, and from their own bosoms the admonitions of conscience, which will become more poignant from every moment's delay.

A general view of the accounts now transmitted, will show at a single glance, that large sums of the old paper still remain to be provided for, and it might, perhaps, have been right in Congress to have fixed an ultimate day of redemption for the whole, and charged what remained due after that day at forty for one in specie to every deficient State. This, I say, might perhaps have been right, if the ravages of war and other local circumstances had not required attention and forbearance as to some, if not all. But it cannot be denied, that many are now in a capacity to call in by taxes their quota of this paper. And those who are, should consider what must be the feelings of men, who hold it on the faith of so many promises, such repeated requisitions, and such sacred bonds of national faith and honor. What must be their feelings to find those promises violated, those requisitions neglected, and that faith disregarded? Can it be expected, that while such flagrant instances of national neglect, to call it by no harsher name, are in the view of almost every citizen, we can possibly establish the fair reputation so essential to public credit?

The plea of inability is not to be admitted, excepting, as I have already observed, in some very particular circumstances. Considering our country in a general point of view, this paper laying dead is already lost, and the only question is, whether that loss shall be borne by the whole people or only a part of them. Those who parted with it have received the value, and it would be a flagrant injustice, that the whole tax for redeeming it should fall on those who have received it. Neither can it be supposed, that if any were inclined to promote such injustice it would be borne by the sufferers. And whether these sufferers are individuals or States, the suffering is the same; the sentiment, therefore, must be the same, and so will the conduct be which that sentiment shall dictate.

I have the honor to be, &c.

ROBERT MORRIS.

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TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 10th, 1782.

Sir,

In consequence of the Act of Congress of the 4th instant, I do myself the honor to enclose a state of the American commerce, with a plan for protecting it. I shall, in obedience to the orders of Congress, transmit a copy of this paper to the commander of his Most Christian Majesty's fleet in the West Indies, and make the application which I am directed to him, and to the commander of the fleet of Spain. I take the liberty to suggest for the consideration of Congress, whether any application on this subject to the Court of France would not go with propriety through the Office of Foreign Affairs.

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

ROBERT MORRIS.[5]

[5] _May 13th_: This day the Chevalier de la Luzerne had a public audience of Congress, when he announced the birth of the Dauphin of France. I attended at the ceremony, being admitted into the Congress hall within the bar, and I took my place next to the members of Congress, the left of the President, the Minister of Foreign Affairs and the Minister of War next to me. We stood during the whole ceremony, as well also the President and Council of the State of Pennsylvania. When the ceremony was ended, Mr Livingston, General Lincoln, Mr Gouverneur Morris and myself, went to his Excellency, the Minister of France, to pay our compliments. Afterwards we repaired to the City Tavern to an entertainment ordered by Congress, thence to an exhibition of fireworks at the State House, and then to an entertainment given by the Secretary of Foreign Affairs. _Diary._

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CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, May 16th, 1782.

Sir,

I have heretofore taken occasion to observe, that the former expenditures of the United States were at a medium rate of twenty millions of dollars annually, for the support of the war. At the present moment, while laboring under a large debt, only eight millions have been asked for. It is evident, therefore, that the sum now required is as little as can possibly answer the purpose. I venture to say that it is not enough. According to the estimates for the year 1782, which were laid before Congress by the late Board of War, the present establishment of the army would require for pay, exclusive of the half pay, near three millions and a half, for rations near two millions and a half, for clothing, about twelve hundred thousand, for forage above three hundred thousand, for the Quarter Master's department, (exclusive of articles on hand) above eight hundred thousand, for military stores (exclusive of articles on hand) near two hundred thousand, for the hospitals (exclusive of medicine and also of sundry stores on hand) above one hundred thousand.

If to all these be added the sum of four hundred thousand for the Departments of the Pay Office, Commissary of Prisoners, and the various other contingencies of service, which naturally and necessarily arise, without mentioning the losses, which happen in war, here will be an aggregate amount of nine millions, and in this sum nothing is estimated for the interest of our debts, for the Marine, and for the Civil List, and the Department of Foreign Affairs.

Of the various expenditures, much was to be provided immediately. The heavy article of clothing, for instance, was indispensable. Many things were to be provided early, in order that the army might operate, and the subsistence is to be paid for regularly and constantly. Yet the States have not been asked for any money before the 1st day of April; and I appeal to them all, whether the supplies of money they have afforded me for the last year were such as would enable me to provide for the present.

A three months' expenditure was permitted by Congress to elapse, before the first payment of two millions was asked from the States; but what have they done? While I write this letter near two months more are gone forever, and a dishonorable neglect endangers our country. Little local objects have postponed those measures, which are essential to our existence, so that the most fatal consequences are now suspended but by a thread. Should they fall on our heads, this solemn protest shall point to the real cause of our calamities. I write, Sir, to apprize you of the public danger, and to tell you I shall endeavor to fulfil engagements, which I have entered into already, that I may quit my station like an honest man. But I will make no new engagements, so that the public service must necessarily stand still. What the consequences may be I know not, but the fault is in the States. They have not complied with the requisitions of Congress. They have not enabled me to go on. They have not given me one shilling for the service of the year 1782, excepting only the State of New Jersey, from which I received five thousand five hundred dollars, a few days ago, and this is all that has come to my hands out of two millions, which were asked for.

Now, Sir, should the army disband, and should scenes of distress and horror be reiterated and accumulated, I again repeat, that I am guiltless; the fault is in the States; they have been deaf to the calls of Congress, to the clamors of the public creditors, to the just demands of a suffering army, and even to the reproaches of the enemy, who scoffingly declare, that the American army is fed, paid, and clothed by France. That assertion, so dishonorable to America, was true, but the kindness of France has its bounds, and our army, unfed, unpaid, and unclothed, will have to subsist itself, or disband itself.

This language may appear extraordinary, but at a future day, when my transactions shall be laid bare to public view, it will be justified. This language may not consist with the ideas of dignity, which some men entertain. But, Sir, dignity is in duty, and in virtue, not in the sound of swelling expressions Congress may dismiss their servants, and the States may dismiss their Congress, but it is by rectitude alone, that man can be respectable. I have early declared our situation, as far as prudence would permit, and I am now compelled to transgress the bounds of prudence, by being forced to declare, that unless vigorous exertions are made to put money into the treasury, we must be ruined. I have borne with delays and disappointments as long as I could, and nothing but hard necessity would have wrung from me the sentiments, which I have now expressed.

I have the honor to be, &c.

ROBERT MORRIS.

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TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 17th, 1782.

Sir,

I do myself the honor to enclose to your Excellency the copy of a circular letter, which I have written to the several States. The situation which I find myself is extremely delicate. The habitual inattention of the States has reduced us to the brink of ruin, and I cannot see a probability of relief from any of them. I rather perceive a disposition to take money from the public treasury, than to place any in it. A variety of causes, which Congress are, I presume acquainted with, prevents the collection of taxes, and delays the payment of them, even after they are collected. In many States they are not laid. I must not conceal from Congress my apprehensions, that the idle hopes entertained from the changes of administration in Britain will increase that negligence, which is but too prevalent throughout the United States.

I might add many reasons, why a call should be made in the present critical moment, and it is evident, that such a call should be couched in terms so pressing, as to stimulate if possible their sluggishness into exertion. But on the other hand, it is evident that if a faithful representation of our distressed circumstances should fall into improper hands, it would be productive of the most dangerous consequences. And when the number of our internal enemies, and the designs of our external ones are considered, there can be little doubt, that such a letter would be handed about soon after its arrival for the illicit purposes of both. At the same time, however, it must be considered, that if any fatal consequences should ensue from the continued negligence of the States, attempts will be made to justify it on the principle, that they were not seasonably apprized of their danger.

I am sure I need not take up more of your time, Sir, in showing the difficulties with which on the present occasion I am surrounded. Urged by them I must entreat the opinion of Congress, whether the letter in question be retained or transmitted. I take the liberty further to remark, Sir, that the declaration contained in it, purporting any intention not to make new engagements, is short of what I am under the necessity of doing, for the public departments are now absolutely at a stand for the want of money, and many things already commenced I must desist from. This cannot be wondered at, when it is considered that near five months of the present year have elapsed without my having received anything on account of its expenditures, except the trifling sum of five thousand five hundred dollars mentioned in the enclosed letter, and that sum, calculating our expenses at eight millions annually, is about _one fourth of what is necessary to support us for a single day_.

I have the honor to be, &c.

ROBERT MORRIS

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TO B. FRANKLIN.

Office of Finance, May 17th, 1782

Sir,

In a letter which I had the honor to write to your Excellency on the 17th of last month, I mentioned the communications of the Minister of France here, by which I was empowered to draw to the amount of six millions in monthly instalments of half a million each. He has since informed me, that no moneys will be paid by his Court except on my draft. It is in consequence of this, that I have drawn the bills contained in the enclosed letter to Mr Grand, which is left open for your perusal. Your Excellency will be pleased to arrange this matter with Mr Grand, so as best to answer the purposes intended. You will also be pleased, Sir, to pay over to Mr Grand on my account such moneys belonging to the United States as may be in Europe, distinct from those to be advanced by the Court for the current year.

I am extremely desirous of having a state of these matters so as to know what dependence can be made on the funds, which are at our command. You would, therefore, confer upon me a very particular obligation by transmitting the best statement in your power. I mentioned to your Excellency in a former letter, that I would write to you on the subject of your salary, more particularly than I then did, but I have since spoken and written to Mr Livingston with relation to those matters, and he will, I expect, write to you and to all our foreign Ministers very fully.

We have not yet heard anything of the Alliance, and therefore conclude, that she must have been delayed in Europe. I hope this may have been the case, for if she sailed on the 1st of March, according to my orders, she must have met with some unfortunate accident. I hope soon to hear from your Excellency. Indeed I persuade myself, that in the very critical situation of affairs at present, we cannot be long without receiving very important intelligence.

I have the honor to be, &c.

ROBERT MORRIS.

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TO MR GRAND.

Office of Finance, May 17th, 1782.

Sir,

In my letters of the 28th of March, and 8th of April, I informed you of my drafts on you to the amount of five hundred thousand livres. I have since that time drawn sundry other bills, all of which you have been duly advised of, or will be so by this conveyance.

I am now to inform you, that his Excellency, the Minister of France, has given me assurances on the part of his Court, that five hundred thousand livres per month, during the year 1782, will be paid on my drafts, making in the whole six millions. He has also suggested to me the expedient of drawing twelve sets of exchange on Dr Franklin, our Minister Plenipotentiary, in favor of my banker, so that the money may be in his hands monthly at my order. In consequence therof, I now enclose to you twelve bills of exchange on Dr Franklin, all at thirty days' sight, and each for half a million. When these bills arrive you will present so many of them for acceptance, as that at the end of the thirty days the amount shall be equal to the monthly payments above mentioned. As for instance, if these bills should arrive in July, you will present seven of them for acceptance, because by the time the thirty days have elapsed there will be due so many of those monthly payments. But in this, as well as in other matters of arrangement with the Court, you will take the advice of Dr Franklin and govern yourself accordingly.

The several bills which I draw on you I will regularly inform you of. After the first month has elapsed you will present another bill for acceptance, and so on monthly, presenting each month a bill. I write also by this conveyance to Dr Franklin to pay on my account all the moneys belonging to the United States in Europe, which may be in his possession.

I wrote to Dr Franklin on the 17th of April to inform you, that I should draw on Messrs Fizeau, Grand & Co. at Amsterdam, and on Messrs Harrison & Co. at Cadiz, desiring that you would direct those houses to honor my bills, and take their reimbursement on you, which I now confirm. I expect that the five hundred thousand livres which are mentioned in my letters of the 28th of March, and 8th of April, will be paid out of moneys, which were already in Europe; and indeed, that still farther sums were there belonging to the United States, besides the monthly payments to be made by the Court as above mentioned. At any rate you will be in cash to pay all the bills which I have drawn or shall draw. You will take care to transmit me a state of your accounts by every opportunity that I may be thereby directed in my operations.

I have the honor to be, &c.

ROBERT MORRIS.

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TO MR GRAND.

Office of Finance, May 18th, 1782.

Sir,

Our enemies being at length convinced by fatal experience, that it is in vain to effect the conquest of America, have now changed the mode of attack, and strike at our commerce and our resources. I have no doubt, but that eventually they will be foiled in this, as in every other attempt they have made, but in the interim between their first effort and the period which must elapse, in preparations to obviate this plan, we have suffered and must suffer considerably.

The commerce of this country has sustained no severer blow than has been hitherto felt, and the effects of it materially influence my operations. The merchants deprived of their property cannot command money, and of consequence cannot pay bills. I am, therefore, unable to command by drafts the money in your hands. My bills do not yet amount to a million of livres, and will not I believe exceed that sum when this letter goes away. These bills will not come to you before the month of July, and the greater part will not be payable until the end of September, and even later; but you will be possessed of three millions and a half by the first of July, even if you shall have received nothing from Dr Franklin on the old accounts.

I am therefore to request that you will make three shipments of one hundred thousand crowns each, or six hundred thousand livres, making in the whole eighteen hundred thousand livres. I wish it to be sent by three different conveyances, for the sake of greater safety, unless some very important convoy should offer, in which case I desire an immediate shipment of twelve hundred thousand livres. I wish also, that the money be invested if possible in gold, because four crowns are worth here only four hundred pence, but a louis is worth four hundred and fourteen pence, being a difference of three and a half per cent. But that you may know the best mode of investing it, I have to inform you, that English guineas are worth four hundred and twenty pence, half johannas seven hundred and twenty pence, moidores five hundred and forty pence, and Spanish pistoles three hundred and thirtysix pence.