Part 32

Of the several shipments made, some arrived, some were taken, some were detained by the enemy's naval power. The risks becoming great, it was thought most adviseable to abandon the farther prosecution of the plan; which the parties to the contract, then in this country, cheerfully consented to, and it was determined that the proceeds of those shipments, which might have arrived, should be carried into the general public accounts. Mr Deane went to Europe under this contract; and being unable, from the remittances sent, to complete the intentions of his voyage, has, I believe, carried the amount of those remittances into his general accounts with the United States. These accounts are among those which Mr Barclay is appointed to settle, and I presume that no allowance will be made, such as claimed by Mr Deane, until he shall have produced the contract and instructions to which he refers for support of his claim; nor then, unless very completely supported or specially allowed by Congress.

I believe Mr Barclay is now employed in making that adjustment, and I suppose, that after he shall have gone through Mr Deane's accounts, admitted such charges as ought clearly to be admitted, and rejected such as ought clearly to be rejected, there will remain some articles on which he will apply to Congress for their special decision; in which case he will naturally transmit all the evidence which Mr Deane may have exhibited.

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

ROBERT MORRIS.

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TO M. DE LA LUZERNE.

Office of Finance, October 15th, 1783.

Sir,

I had the honor to receive your Excellency's letter of the 11th instant. If a settlement of the accounts which arose before the commencement of my administration had depended on me, neither M. Holker nor any other person should have had cause of complaint. The perplexed situation of those accounts rendered it necessary for Congress to submit them to the investigation of special commissioners, who have but lately commenced their operations. I shall immediately transmit a copy of your Excellency's letter to the gentleman who may be charged with those accounts in which M. Holker is concerned, and request his attention to the subject.

That any person should suppose the apprehension of being taxed with favor to an individual, would induce me to delay the justice due alike to all, is so extraordinary, that your Excellency must permit me to express my surprise at meeting the idea in a letter from the King's Minister.

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

ROBERT MORRIS.

* * * * *

TO MESSRS WILLINK & CO.

Office of Finance, October 23d, 1783.

Gentlemen,

Upon taking a view of my various engagements for the public service, and considering the great anticipations, which have been made at the period when our brave army quitted the field, it has appeared to me, that the sum of about three hundred thousand dollars would be necessary for me over and above the probable produce of our taxes, to clear off all those engagements, and enable me to lay down the burdens of official life in a consistent and proper manner, should the situation of public affairs then admit of it. This circumstance, however nearly it interests my personal feelings, is still more interesting to my country; because a regular and punctual performance of engagements, while it establishes confidence, ensures the means of future punctuality.

Revolving much on this subject in my own mind, I have been led to consider also, that the present rate of exchange, which is very favorable, may not continue when tobacco, rice, indigo, and the other produce of the southern States shall be freely exported in remittances to Europe. And if the exchange should lower, there will be a loss on the bills of the United States, which I would always wish to prevent. Besides this there is another important circumstance, which is, that if the drafts are suspended until notice of the success of your loan, so as to lodge the money, the public will be paying interest, both here and in Europe for the same sum; which ought, you know, as much as possible to be avoided.

Under these different impressions, the natural conduct would have been, to vend my bills very boldly, and trust to the success of those exertions, which you will undoubtedly make. But here it was proper to consider, that if unforeseen circumstances should in any manner have put a check upon your operations, the consequence might have been a very great inconvenience, and perhaps injury to you, which I would always wish to avoid, together with a loss of credit, coupled with the payment of heavy damages to the United States.

I have therefore adopted a middle line of conduct, which will combine the advantages and avoid the inconveniences, both of delay and of precipitation. I have drawn three sets of exchange, all dated on the 21st instant, (the time when they were drawn) and each for two hundred and fifty thousand current guilders, payable at one hundred and fifty days' sight. These bills are numbered one hundred and ninetyone, one hundred and ninetytwo, and one hundred and ninetythree; the first in favor of John Ross, the second in favor of Peter Whiteside & Co., and the third in favor of Isaac Hazelhurst. All these are solid houses, upon whose fidelity and punctuality I can place equal dependence. I have taken from them proper stipulations to pay at the end of one hundred and twenty days, each one hundred thousand dollars; by which means I have secured the immediate vent of that sum at the very highest exchange. And it is further agreed between us, that in case of protest, (which God forbid should happen) the public shall not be charged with damages; the necessary consequence of which is, that the bills will not be negotiated further than to place the amount in the hands of their friends, which is indeed fully understood between us. You will see also, that in this mode I shall bring to the public use here (allowing about two months for the bills to be presented) the sum of three hundred thousand dollars, near three months before it is paid by you.

From this explanation, which I have entered into in order to show you the full grounds of my procedure, because I knew how much more satisfactorily business is conducted when all circumstances are known, you will perceive that my bills already advised of, are first to meet due honor, and consequently funds set apart for their absolvement. These three new bills then come in their course, and I must entreat you, Gentlemen, to honor them also, even if you have not the funds, provided a view of fair prospects can render it at all consistent with that prudence, which must doubtlessly influence you in such important concerns. I must also request, that you will give me, by various conveyances, the most immediate notice of your acceptance, because I shall from that moment be able, by discount, to bring the securities given by those gentlemen into operation.

I am, Sir, with perfect respect, &c.

ROBERT MORRIS.

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TO THE FARMERS-GENERAL OF FRANCE.

Office of Finance, November 4th, 1783.

Gentlemen,

The Honorable Minister Plenipotentiary of the United States of America to the Court of Versailles, having done me the honor to transmit a copy of your letter to him of the 17th of July last, I took the earliest opportunity after the receipt of it, to submit that business to the consideration of Congress; who by their Act of the 1st instant, whereof a copy is enclosed, have instructed me to inform you, that Congress are sensible of your generous attention to the circumstances of the war, in which these United States have been so long engaged, and which, interrupting their commerce, deprived them of the means of seasonable remittances to satisfy the balance so justly due on the loan made by you.

I am further instructed, Gentlemen, to assure you that the United States in Congress assembled, in providing for the national debt, by their Act of the 18th day of April, 1783, were not unmindful of your demands, and that when the system thereby adopted for the relief of public creditors shall have taken effect, the interest accrueing on the balance due to you, will be punctually remitted.

If, Gentlemen, this arrangement shall not prove satisfactory to you, I am further instructed to assure you, in the name of the United States, that all the means in their power shall be employed to discharge the principal sum due to you, as soon as the condition of the public finances will admit.

I have the honor to enclose a copy of the above mentioned Act of the 18th of April for your better information on this subject, and take the liberty to add, Gentlemen, to the assurances just given on the part of my sovereign, that every effort in my power shall be made to comply with such ulterior orders as may be issued, as well as to render you any acceptable services in my power.

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

ROBERT MORRIS.

* * * * *

REPORT TO CONGRESS ON AN EXTRACT FROM THE JOURNALS OF THE GENERAL ASSEMBLY OF PENNSYLVANIA.

The Superintendent of Finance, to whom was referred an Extract from the Journals of the General Assembly of Pennsylvania, begs leave to report;

That the said extract consists of two parts; the former whereof contains certain matters reported by a committee of that honorable House, in consequence of a conference held with the commissioner for settling the accounts of the said State, the which matters are reported by the committee, and appear to have been considered by the House as facts. The latter part contains reasonings upon the former, and resolutions in consequence thereof. Pursuing therefore the same line, the Superintendent of Finance must take leave to observe, that the former part of the said extract implies an inattention on his part to the orders of the United States in Congress, and an assumption of powers not delegated. He humbly prays to submit both of these charges to the wisdom and equity of Congress, who have long since had before them all the instructions given to the commissioners for settling accounts, together with a report on the reference mentioned in the extract; wherefore it is to be presumed, that if undue negligence or the arrogating of power had appeared, it would not have passed unnoticed.

It is further to be observed, that the doubts stated by the said commissioner and the difficulties under which he is supposed to labor, must have chiefly originated in circumstances peculiar to himself, because that such doubts and difficulties have not occurred to the commissioners employed in other States, and because they would easily have been obviated by a careful consideration of the Acts and instructions in his possession; excepting only in one point, viz., "Whether charges for buildings, fences, wood, &c. damaged or destroyed by continental troops, or militia, are to be allowed?" This question (which can only be resolved by special Act of Congress) is not to be found among twelve questions proposed by the commissioner to Congress; but among nine proposed to the Superintendent of Finance.

It is stated in the said extract, "that by the instructions from the Office of Finance to the said commissioner, he is enjoined a strict attention to the resolve of Congress of the 23d of August, 1780, _touching all certificates generally_; that this resolve introduces an entire new method of granting certificates; that to require those new forms in certificates, granted before they were instituted, is requiring an impossibility, or (in other words) is _a refusal to liquidate any certificate given before the 23d of August, 1780_." Were this the case, doubtless there would be sufficient cause of complaint and sharp animadversion; but the Acts and instructions, all which are in possession of Congress, will show the state of facts to be as follows. The Act of Congress of the 20th of February, 1782, speaking of the commissioner contains the following words; "That he be also fully empowered and directed, to liquidate and settle, in specie value, all certificates given for supplies by public officers to individuals, and other claims against the United States, by individuals for supplies furnished the army, the transportation thereof, and contingent expenses thereon, within the said State, according to the principles of equity and good conscience, _in all cases which are not or shall not be provided for by Congress_." Under this Act of Congress, the Controller of the Treasury issued certain instructions, which were approved of by the Superintendent of Finance, thereby directing each of the several commissioners "to open an account with the principal of each department, for the time being, and with every person who is properly accountable for articles purchased by or delivered to him. In which _they must be changed respectively with all such articles, and for which they are to account with the commissioners appointed, or to be appointed to adjust the accounts of these departments respectively_."

The Superintendent of Finance, in a letter to the commissioners of the 7th September, 1782, after referring to the Controller's instructions, calls their attention to two particulars, the former whereof is not material to the present point, and the latter is as follows; "In settling the accounts with individuals, you will consider _that artful men have frequently taken advantage of the public_, and that, in many instances, _public officers have taken advantage of the weak and unprotected_. You will therefore always remember that _it is your duty to do justice_." The two commissioners who were first appointed after considering the Acts of Congress and the several instructions given to them, proposed, among others, the following question, "Whether certificates given to individuals are to be taken as they stand, and new ones given for their amount; or whether they are to be re-examined and new prices affixed to the articles _when they have been over or under charged_? The Superintendent and Controller entered into a consultation together, and the following answer was returned. "Certificates given by quarter masters or commissioners to individuals, must be re-examined, the articles shown, and their value determined, _that the receiver of them may be charged and made accountable to the commissioners appointed for the respective departments_. See resolutions of Congress of the 23d of August, 1780, relating to them, which must be strictly attended to."

This question and answer is regularly transmitted by the Controller to all the commissioners appointed to adjust the accounts between the individual States and the Union. The commissioner for the State of Pennsylvania, had therefore the matters above recited in his possession when he proposed to Congress the following questions. "Are certificates or receipts given by quarter masters, commissaries, their deputies, assistants, agents, or other public officers for supplies furnished, before the 15th of September, 1780, to be taken as they stand, and new ones given for their amount, estimated in specie? Are certificates issued agreeable to the mode prescribed by resolution of Congress, 23d of August, to be taken up and new ones given?" These questions were, among others, referred to the Superintendent of Finance; who thereupon informed the commissioner, that the answer thereto was in the Act of Congress, the letter from the Superintendent, and the question and answer above quoted. Surely there is nothing in either which _requires the forms prescribed by the Act of the 23d of August, 1780, in certificates granted before they were instituted_. The commissioner is indeed referred to that Act, and directed to pay attention to it; but the evident construction of this order, limits it to certificates issued under the Act. And even if that were not the case, yet when the whole of the instructions (or rather the answers) which are complained of, is taken together, there cannot be the shadow of a doubt. For among the commissioner's questions to the Superintendent is the following; "How are claims for supplies furnished, or services performed by an individual, who is destitute of a certificate or any kind of voucher, having only a bare charge against the United States for the same, to be settled? Will the oath or affirmation of the claimant make the charge good?" And he shortly after asked Congress, "How are claims for supplies furnished for public use by an individual, who is destitute of a proper voucher, to be authenticated?" To both these queries the answer given by the Superintendent, (and which forms part of the instructions complained of) is as follows. "They relate to the same point, viz. _What evidence shall establish claims?_ It appears, that the article passed in favor of the claimant must charge some other person, and that public notice is to be given of the times and places of settlement, that both parties may attend. Under these circumstances, if the demand is grounded on _principles of equity_, and the evidence produced satisfies the _conscience_ of the commissioner, he is bound to pass it, _by the Act of Congress_." Now it must be remembered, that the commissioner is (by the Act under which he was appointed) empowered and directed to liquidate, &c. _according to the principles of equity and good conscience, in all cases which are not or shall not be provided for by Congress_. The answers therefore given by the Superintendent to his questions, are no more than applications of the Act, to the doubts which he had suggested. It is more than probable that if the honorable Assembly of Pennsylvania, had communicated with the Superintendent on this subject, they would not have assumed the same ground of reasoning which they appear to have done.

It is alleged in the said extract, "that certificates given for personal services, wages or hire, are rejected;" in answer to which it can only be said, that if the claimants are officers or persons acting in any of the departments, the certificates ought to be rejected by the commissioner for the State, because such accounts are to be liquidated by the commissioners of the departments respectively; but if other claims have been rejected by the commissioner, he must have been under the influence of some misapprehension.

As the honorable Assembly have, through their delegates, proposed certain resolutions, it will be proper to examine the reasoning which led to that proposition. And first, it alleged, that "if an exact account is _really_ wanted of the specific articles for which any certificate was given, it may be found in the receipts given by the party, at the time of getting his certificate, and that these receipts are in the power of the public, being lodged with the heads of the different departments." Surely such an assertion is somewhat hazarded. Congress have before them full evidence, that many persons, late officers in the civil departments, refuse to account at all. If, therefore, such persons should even possess the supposed receipts, still those receipts are not _in the power of the public_, nor will they be so until all the States have passed laws similar to those of the State of Pennsylvania. But further, it will on inquiry appear, that when individuals received certificates from public officers, the receipts they gave did not always contain a list of the articles, or account of the services which had been rendered. Certainly, where any fraud was designed, a specification of articles was of course avoided; and in many cases it has been neglected, even where nothing wrong was intended. The idea therefore that the specific articles are contained in the receipts, is as unfounded as that those receipts are in the power of the public.

But supposing the facts were such as they are assumed to be, will it follow, that the officers have in no instance, been guilty of collusion with individuals, and given more than they were worth both for articles and services? And will it not appear, that an exact account of the specific articles is _really_ wanted, and indeed absolutely necessary, for the detection of such abuses? Or if it be supposed that all the inhabitants of Pennsylvania were so honest and so disinterested, as neither to partake in fraud, nor take advantage of negligence, must it also be presumed that the public officers, acting within that State, have in no cases whatever seized the property of individuals and given certificates for less than the value? Or if it be imagined, that the officers and the individuals have been all alike innocent, and that the clamors raised on these subjects are totally groundless as to Pennsylvania, will it follow that such things have not happened in any other State? Or will it be proper to establish different rules for the settlement of public accounts, under the idea of honesty in one State and the want of it in another?

It is however assumed, as a position, that "any frauds which have been committed cannot be detected in any other place, so well as by the commissioners who settle the general accounts, at the heads of departments." But surely it is necessary, not only to the detection of frauds, but even to the settlement of accounts at all, that the commissioners acting in the several States, obtain accounts of the articles before they pass the sums. If, for instance, the public officer should by collusion with the party, make a charge of double the sum actually due for any article, can a deduction be made after the sum has been passed to the individual by the state commissioner? If the officer should omit to charge himself with articles purchased, can this be proved, when only the money certificate is produced against him? If the officer paid, by a certificate, the nominal sum for articles purchased, a year before, will this appear in such manner as to prevent him from taking all the benefit of the depreciation? If, for instance, he purchased to the amount of two hundred thousand dollars, when money was at two for one, paid in certificates when it was at four for one, and carried the articles to account at a reasonable specie value, viz. one hundred thousand dollars, and if the certificates be now liquidated at their value, viz. fifty thousand dollars, would he not be gainer of the like sum of fifty thousand dollars merely by the depreciation? It is also asserted, "That the holders of certificates are subjected to many inconveniencies from this delay, and that after _coming from the remote parts of the State_, and having a liquidation of their certificates refused, they depart with murmurs and discontent." If holders of certificates came from _remote parts of the State_, and the Act of Congress of the 20th of February, 1782, intended to afford relief, becomes thereby a source of distress, it must arise either from the ignorance of the people themselves, or from a want of attention in the commissioner; for by the Act it is ordained, "that the commissioners respectively give public and early notice of the _times_ and _places_ of their settling, and the _districts within which_ they settle accounts, that as well the public officers as private individuals, may have an opportunity to attend." From the whole scope and tenor of the Act, as well as from the express words of this particular part, it appears clearly to have been the intention of Congress, that the commissioner should mark out convenient districts in the State, take some proper position in each district, and then give such early _public notice_ of the _place_ and the _district_, as that claims arising from transactions _within that district_ might be brought in and adjusted, and both the public officer and the private individual concerned in the transaction, have an opportunity of attending.