Part 30

Having already transmitted the public accounts from the commencement of my administration to the first day of this month, I shall not trouble your Excellency with a repetition of them. But I must pray your indulgence while I make a few observations. Perhaps this letter may contain too much of egotism, but your candor will excuse me when the motive is known. If I have rendered any services to the United States, they have been derived from the generous confidence of my countrymen. This confidence must not be abused, and if it be lost my utility is at an end.

The accounts will show to any informed and reflecting mind, that the public moneys were economically applied; and if farther proof were necessary I could appeal to the honorable Delegates in Congress, who have every opportunity of investigation. I might also appeal to the clamors against me for opposing claims I could not properly comply with. Long have I been the object of enmities derived from that origin. I have, therefore, the right to consider such clamors and such enmities as the confession and the evidence of my care and attention.

But, Sir, from the same accounts it will appear, that on the 30th day of June last, my payments had exceeded the amount of my receipts by more than a million of dollars. How, indeed, could it be otherwise, when all the taxes brought into the treasury since 1781 did not amount to seven hundred and fifty thousand dollars? I have been impelled to this heavy anticipation by an earnest desire to relieve our army, by the General's warm representations on the subject, and above all, by the directions of Congress and their assurance of support. The enclosed letter to them will show my desire to reduce our expenses. But while I urge the reduction of expense it is equally my duty to urge an increase of revenue. If I have been a faithful steward of what was intrusted to me, if more became necessary than I ever received, and if urged by that necessity I have anticipated the receipts, surely I am in the strictest line of propriety when I loudly call for relief. Every one must know, that the paper I have circulated will lose its value, unless punctually redeemed. The several receivers are indeed instructed to exchange it; but what can that instruction avail, if specie be not placed in their hands for the purpose? And how can that be effected but by a vigorous collection of taxes?

I know that my solicitude on this subject will be charged to improper motives. When I urge a reduction of expense it will be said, that I wish to impair the strength and lessen the respectability of our country. Far other wishes swell my bosom. But I have been driven into a conviction, that the necessity of strength, and the advantage of reputation, are not yet sufficiently felt and understood by all the members of our federal Union.

My present call for taxes has also been anticipated by a slanderous report, that I have speculated on this very paper which I urge the redemption of. Most solemnly I declare, that I have never been concerned, directly or indirectly in any such speculation. If there be a man in the world who knows any instance to disprove what I say, let him step forth with the accusation. No, Sir, the object is in nowise a personal one to me; I only advocate the interest and reputation of America. If, with a view to injure me, the attempt is made to violate my engagements, the malice will be defeated; but at the same time let it be remembered, that the country, which will not support faithful servants, can never be faithfully served. Guilt and desperation will ever pant for scenes of tumult and disorder, office will ever excite envy, and malevolence delight in slanderous tales. Is it then to be wondered at if my foes are numerous? Believe me, Sir, if their attempts had only affected me and mine, they should have been received in the same silence, which has buried many other wrongs. But on the present occasion, it becomes my duty to delineate their baneful influence.

Pains are taken to cover with infamy all those who discount the public paper. The natural effect of this measure is to prevent those men from meddling with it, who, from a regard to their own reputation, would do the business on moderate terms. Hence it follows, that the holders cannot obtain so much for their paper as they otherwise might. Hence again an additional clamor and of course an additional loss to the possessors. On the basis of the depreciation is founded an argument to prevent the redemption. By these means the public credit is totally ruined, and the government becomes chargeable with flagrant injustice. No future anticipations can be made to supply the most urgent wants; and in the whole proceeding, they are made the victims, who confided in the faith of government. The attempt, therefore, by this slander to injure me is an injury to those, who have received my paper; and in every instance where they have joined in propagating the report, they have joined their enemies to plunder themselves.

Let me no longer intrude on your Excellency's patience, than to declare my conviction, that the States might easily fulfil far more extensive engagements than those which I have made on their account. Notwithstanding every insinuation I will continue my efforts for the purpose, and though base minds should reiterate their charges, I will persist in my duty and defy their malice.

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

ROBERT MORRIS.

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REPORT TO CONGRESS RESPECTING TRANSFERABLE CERTIFICATES.

Office of Finance, July 31st, 1783.

The debts which have been found due to persons by settlements at the Treasury Office, have not been evidenced by transferable certificates for the following reasons.

1st. All such certificates have by experience been found to be only another kind of paper money, continually depreciating both by increase of quantity and defect of funds.

2dly. The consequence thereof is, that the same is daily brought into fewer hands and for less value, by which one of two things must happen, either that those few become very rich by their speculations, or, that being defrauded they become clamorous against the government.

3dly. If the certificates are transferable in the manner proposed by the motion, they are evidence of the debt as due to the bearer, and therefore whether obtained by accident, force, or fraud, vest him with a right, to the prejudice of the injured or unfortunate party.

4thly. Being, therefore, a precarious property, they become less valuable from that circumstance.

5thly. When the original proprietors become divested of them, some of the reasons in favor of revenues to redeem them lose their force, and the advocates for just measures being lessened, the probability of carrying them through is decreased.

6thly. While the evidence of such debts is in the treasury books and the stock transferable there, the public debt becomes a property, the object of purchase, instead of being as in the other case the means of making purchases as money.

But if there be powerful reasons in favor of the motion, which have escaped the Superintendent of Finance, he shall very readily comply with such order as to the wisdom of Congress may seem meet.

ROBERT MORRIS.

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TO THE PRESIDENT OF CONGRESS.

Office of Finance, August 1st, 1783.

Sir,

I do myself the honor to enclose an account of payments, made by the States to the receivers, until the 1st day of July last, and with it I take the liberty also to enclose a note, containing nearly the proportions, in which the States have paid their quotas of the requisitions for 1782.[17]

[17] The proportions are as follows:

South Carolina 1-1 Rhode Island nearly 1-4 Pennsylvania above 1-5 Connecticut and} New Jersey } each about 1-7 Massachusetts, about 1-8 Virginia about 1-12 New York and } Maryland } each about 1-20 New Hampshire, about 1-121 North Carolina,} Delaware and } nothing at all. Georgia }

I take the liberty further to mention, that the State of South Carolina has (by means of the supplies to the troops serving there) paid the full amount of her quota for 1782, as I am informed by the Receiver, whose accounts and vouchers (though momently expected) are not yet come forward. The State of Georgia has I believe contributed something in the same way, but if not, the great ravages which she has endured will account for the defect, without supposing any defect of inclination. As for the other States, I pray leave to avoid any comments on the balances of their accounts.

I have the honor to be, &c.

ROBERT MORRIS.

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TO MESSRS WILLINK & CO.

Office of Finance, August 6th, 1783.

Gentlemen,

I beg leave to acknowledge your favor of the 12th of April last, which came to hand two days ago. From the letters I had already written, and which I presume you will have received before this, you will easily see how much pleasure I derive from the prospect that your loan may speedily fill. Be assured, Gentlemen, that your endeavors on this occasion shall not be forgotten; and rely on it that you cannot render more acceptable service to the United States.

My former letters contained the disposition of your funds so far as to satisfy any demands which Mr Grand might have. These I suppose have been complied with, and I expect, that not only the sums which Mr Grand could possibly want must have come to your hands before this letter can arrive, but that you will still have a considerable balance.

Under these circumstances, the exchange on your city being now high, and the disbandment of our army having increased my need of money to make them a considerable payment, I have concluded to draw on you to the amount of two hundred thousand florins, as occasion may offer; and if exchange should not fall, nor any advices arrive to prevent the measure, I may perhaps extend my drafts on you to five hundred thousand florins. But as it might happen, notwithstanding my opinions, that you should not be considerably in cash beyond Mr Grand's demands, I have determined on these two points; first, that I will not precipitate my sales here, but only dispose of bills as occasion may require; and secondly, that I will draw at ninety days' sight, because the demand for bills is such, that a difference in the sight will make none in the price. By these means it will happen, Gentlemen, that even if you are not in cash when the bills arrive, you can have no difficulty as to the acceptance, because the natural progress of the loan must put you in possession of money before they can fall due. And this is the more to be expected, as some of the tobacco will doubtless have arrived, which cannot but give a weight and solidity to your negotiations. If however these things should not so happen, you will, I expect, pay the bills at any rate, and for any excess beyond your immediate funds you will charge an interest to the United States. On the other hand, if it should happen according to my expectations, that you have unappropriated money in your hands when the bills are presented, I am then to request that you will pay them at sight, if agreeable to the parties, deducting the usual discount for prompt payment, which you will be so kind as to credit to the United States.

With every wish for your success and prosperity, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

GEORGE WASHINGTON TO ROBERT MORRIS.

Head Quarters, August 6th, 1783.

Sir,

I thank you for the communication, which you have been pleased to make to me under the 11th of July. It was handed to me on my return last evening from a tour ---- have been making to the northward and westward, as far as Crown Point and Fort Schuyler, to view the posts and country in that part of the United States' territory.

The anticipations you have been obliged to make are indeed great, and your circular letter to the States on the occasion appears to me sufficient, if anything of the kind can be so, to arouse their attention to the necessity of your circumstances. I most sincerely wish it may have the desired effect.

In consequence of my tour to the northward, the Quarter Master General, will have my orders to prepare batteaux and other means of transportation to the upper posts, of the cannon, stores and provisions, which will be absolutely necessary for possessing and maintaining them. To effect this money will be necessary, and I give you this information, that a demand will probably be made on you for the purpose.

The State of New York, which is deeply interested in the security of these posts, and effecting this business, may perhaps be prevailed on to furnish the necessary sums to be placed to general accounts. This will probably exert itself in this case preferably to any other. I give you this hint, and leave its improvement to you.

Knowing your situation, I am pained when necessity obliges me to make any application for money. But this purpose is of so great importance to the interests of the United States, and of so urgent necessity, that if the sums required cannot be obtained in the way I have hinted, I must entreat you to give every assistance to Colonel Pickering that shall be necessary.

I am, &c.

GEORGE WASHINGTON.

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TO GEORGE WASHINGTON. Office of Finance, August 12th, 1783.

Sir,

I have received your Excellency's favor of the 6th instant. I am always happy to hear from you, although I confess that every new demand for money makes me shudder. Your recommendations will always meet my utmost attention, because I am persuaded that you have equally with me the desire to husband and enlarge our resources. Your perfect knowledge of our political and military situation must decide on the measures to be pursued, and I am persuaded, that your advice to Congress on these subjects will be equally directed to the safety, the honor, and the interests of the United States.

With very sincere esteem, I have the honor to be, &c. ROBERT MORRIS.

* * * * *

TO THE PAY MASTER GENERAL. Office of Finance, August 12th, 1783.

Sir,

I am to acknowledge the receipt of your favor of the 6th instant, containing two questions. To the first of these I answer, that my anticipations amount to a very large sum, that it will employ all my resources to honor engagements already taken; that of consequence I cannot see my way clear to form new ones, and that if I did, the groundless and injurious clamors, which have been raised on this subject, would prevent me. It becomes impossible to serve a people who convert everything into a ground for calumny. The existence of the republic, since the conclusion of a peace, no longer depends upon extraordinary sacrifices and exertions. My desire to relieve the army has been greatly cooled, from the information, that many of them have joined in the reproaches I have incurred for their benefit. And the necessity I feel of quitting (at the earliest possible moment) an office of incessant labor and anxiety, whose only reward is obloquy, will not permit me even to think of any farther anticipations.

The second question in your letter is foreign to my department; a question, which you have as many materials to judge upon as I have, and which you are particularly authorised to decide.

I am, Sir, &c. ROBERT MORRIS.

* * * * *

TO ELBRIDGE GERRY. Office of Finance, August 26th, 1783.

Sir,

In compliance with your request, I shall not only give the information which appears to have been the object of Mr Clarke's letter, but recapitulate also the observations which I had the honor to make on what you mentioned as the object of the committee. And first, for the information desired, I can answer only in general terms, that I believe the various engagements entered into previous to the end of 1781, were under the faith of requisitions then existing. Since that period, I know of only two requisitions for current service, both of them founded on estimates. The first was of eight millions for the service of 1782, and the second was of two millions, for part of the service of 1783. All the engagements of my administration are on the faith of these latter requisitions.

The first object you mentioned was to alter the mode of settling accounts, so far as the requisitions previous to 1781 are concerned, and only to calculate the actual payments, or advances by the States, with the interest, so that the whole, being formed into one sum, may be afterwards apportioned among the States. To which plan, among other objections, I look the liberty to state the following. First, there is no evident necessity for taking this step, and therefore it will be prudent to omit it; because in such cases government risk every unforeseen danger that may result, and always render their affairs more complicated. Secondly, the measure may be misunderstood, and occasion clamors, which will indispose some to adopt the other measures recommended by Congress; which objection though it ought not to weigh in competition with what is evidently _proper and right_, must nevertheless be attended to in things of more doubtful complexion. Thirdly, there would arise from it a degree of _irregularity_; for the particular accounts being now all opened in the treasury books, by the authority of the late Board of the Treasury, it appears most natural to continue them in their present form, until the final settlements. Fourthly, all the information necessary to enable Congress to decide on the accounts when settled will then be in their power; for the accounts will contain, on one side, the compliances of the State with the requisitions, together with all other advances which they have made for the public service, and on the other side will be the amount of the various requisitions. Whenever therefore Congress on such full view of the subject, shall think proper to remit the whole, or any part of the requisitions, entries will be made in the treasury books accordingly. Fifthly, it would be rather premature to make the decision proposed before (by a settlement of accounts) all the proper materials are brought into view; and until the States have adopted the proposed measures for funding the public debts. Because, sixthly, it is conceived that the various requisitions were adequate to the necessary service; and that although it may perhaps be wise eventually to convert the whole expenditure of the war into the form of a debt, in order thereby to prevent the disputes which might arise on the apportionments, still it must be remembered, that this step cannot be taken until funds are obtained. Until that period, therefore, it is perhaps as well to leave the requisitions; if it be only to show the States why they are called on for revenues now, viz. because they would not or could not furnish supplies before. But, lastly, it might prove dangerous under present circumstances to take any step whatever with these requisitions. Only partial compliances have been made. Some States therefore adhere to some requisitions, and some to others, according to the real or supposed situation of their accounts. To go no farther, it would hardly be prudent to hazard a dispute with Massachusetts, by relinquishing the requisitions of March, 1780, or with some other States by a useless attempt to enforce them.

The other object, Sir, which you appeared to have in view, is to relinquish so much of the requisitions since 1781, as might leave only the sum necessary for fulfilling present engagements. Now although the resolution, which seems to have been in contemplation, would not have had this effect, because the requisition for the service of 1782 was made on estimates, yet I shall assign a few objections to the plan. The reason urged in favor of it is, that the demand was so much beyond the abilities of the States, and the necessities of the service, that it must excite a despair of compliance, and a diffidence in the prudence of those by whom it was made. To which it may well be replied, that the ability of the States is not so hastily to be decided on, because it has never been put to the proof by prudent and vigorous taxation, because other countries not so wealthy bear much heavier taxes without inconvenience, and because these very States have borne it, though under another name; for the depreciation of the paper money, which wiped away not less than twelve millions annually, was in effect a tax to that amount.

But further, even admitting the supposed inability, still the requisition, if not excessive as to its object, ought of necessity to have been made. Because the States could by no other mode of reasoning be convinced of the necessity of establishing that credit, which can alone prevent such great efforts. And because if such requisitions had not been made, some branch of service must have been left unprovided for by Congress, on the very face of their own measures, which would have been a palpable absurdity.

And this leads to the second point, viz. that the demand was beyond the necessities of the service. Before this position is assumed it must be considered, not only what expense was actually paid, but also what was probable when the demand was made, and what of the expense incurred still remains due. And first, as to what was paid; we shall find that the military collections in the Southern States went to a considerable sum, which is not yet brought into the public accounts, as there was no money to defray it, owing to the noncompliance of the States. Secondly, the probable expense was far beyond the actual, because of the misfortunes of our allies, which rendered it necessary lay aside the proposed offensive measures, and which could not, if not laid aside, have been carried into effect, by reason of the lamentable deficiencies of the public revenue. And thirdly, a very considerable part of the expense of 1782 is necessarily paid in 1783, and a far more considerable part remains unpaid. For instance, almost the whole amount of the pay of the army; an army by no means so numerous as that which the General had called for, and Congress resolved on. And it would have been indeed very strange, if Congress had asked only five millions from the States, including therein every other article, but the pay of the army on whose exertions everything depended.