Part 33

As the honorable Assembly have marked out a different mode of settlement from that which has been adopted, it may be proper to take a general view of the present and of the proposed plan, so as to discover the inconveniencies resulting from each, and thence determine which ought to be preferred. Under the present plan, the first step of the commissioner is to mark out some particular spot, with a convenient surrounding district, within which the parties may attend, without the waste of time and the expense of long journeys. The next is to give _early public_ notice thereof. Supposing then the time to have arrived, which he had specified in his advertisement, and a claimant to appear, the first question to be solved is, whether that claimant be one of those whose demands are to be adjusted by him, or whether it is the business of a commissioner of one of the departments. Supposing the former, the next object of inquiry would be, whether any and what services or supplies were rendered by the claimant to the United States, and if any were rendered, then what was the real value at the _time and place_ of rendering them. Every kind of evidence exhibited in support of each point is then to be examined, the officer who is said to have received the articles is to be heard, if he contest the claim, and, finally, the commissioner being in the vicinity of the place, with opportunity to learn both the acts done and the characters of the agents, must decide _according to equity and good conscience_, where no express provision is made by an Act of Congress. If this decision be in favor of the claimant, the business of the commissioner is to give a certificate for the full value of the articles and services, and then to charge the proper officer and department, not with so much money, but with the specific articles and services, for the due application whereof account is to be rendered to the commissioner of the department.

A duty of the State commissioner, in the course of this business, will be to discover and detect as much as possible the frauds which have been committed, and transmit proper evidence, as it may arise, to the commissioner of the department. In cases, however, where the decision is against the claimant, it will be proper still to return to the commissioner of the department a statement of the claim, that if it should be found to be credited to the public, in the accounts of such department, the party may meet with redress at a future period. The inconveniencies attending this mode are, that possibly some just claims may be finally rejected from the want of sufficient proof, and that some honest claimants may be put to trouble and difficulty in supporting their claims.

The proposed plan appears to be shortly this, _that the commissioner shall liquidate every certificate which may be tendered to him in specie value_. If, however, the restriction implied in the Extract, by the words "that no delay be given to any certificate granted by an officer who has settled his public accounts," &c. be made, viz. that the liquidation of such certificates be suspended until the accounts of the officer who gave them be settled, it is humbly conceived that such liquidation can never take place; because, as the public have assumed the debts of their officers, it is impossible to settle the accounts of those officers, until the amount of their debts be known; those debts forming a charge against the officers in the same manner as the moneys advanced to them from the public treasury. The settlement of the officers' accounts must, therefore, ultimately depend on the settlements made with individuals, and therefore this restriction must be rejected or the whole plan prove abortive.

The proposition of the honorable Assembly may then be examined and considered as of the effect which is just now stated. And if that proposition be adopted, the commissioner sitting in one corner of the State and examining claims and certificates brought from two or three hundred miles distance, without the slightest attention to the value of articles for which money is claimed, will be exposed to every kind of imposition. Certificates will be counterfeited, pretended depositions will be produced, fabricated accounts will be delivered, vast sums will of course be acknowledged as due to whoever may please to demand them. The officers will (and very justly too) refuse to account for such sums, the frauds which they will detect in claims allowed by the State commissioners will cast a cloud even upon the just claims, and the commissioners for the departments will for that reason be unable to insist on any. Thus the officers will be empowered in their turn to render such accounts as they think proper. So that on the whole, the public debts will be greatly and unnecessarily accumulated, and a precedent will be established to sanctify every improper act which may hereafter be committed in times of confusion.

These are public inconveniencies, and from a comparison of the two plans one important question arises, shall the public property be given away, and the country be taxed for the purpose of paying moneys not justly due; or shall individuals who have claims on the United States be obliged to validate such claims by sufficient evidence? Surely the honorable Assembly of Pennsylvania will not, cannot hesitate, in deciding this question. All which is humbly submitted.

ROBERT MORRIS.

_Office of Finance, November 5th, 1783._

* * * * *

TO JOHN ADAMS.

Office of Finance, November 5th, 1783.

Sir,

I am honored with your Excellency's favor of the 28th of July from Amsterdam, for which I pray you to accept my acknowledgements. I am perfectly in sentiment with you, that it is best to avoid government interference in the affair of our loan. If there were no other reason I should not like the demand of grateful acknowledgement, which would be erected on that foundation. We hear enough already of our national obligations, and I most heartily wish for my own part, that we could at once acquit them all, even to the uttermost farthing, for I seriously believe, that both nations and individuals generally prove better friends when no obligations can be charged nor acknowledgements and retributions claimed on either side.

I am also very strongly in opinion with you, that remittances from this country would greatly uphold our credit in Europe, for in mercantile life nothing vivifies credit like punctuality and plenteousness of remittance. The plan you propose to obtain them, might also be attended with some good consequences, but there are impediments in the way of its success, which it would be tedious to detail, and which indeed you could not be so perfectly master of without being on the spot. I shall not, therefore, go into that matter at present, and the more especially as we have now good hopes, that the plan of Congress will be adopted by the States. Last evening I received advice, that Massachusetts had acceded, and I have a double pleasure in announcing this to you, as they certainly would not have come in but for the sentiments contained in your letters.

Let me then, my Dear Sir, most heartily congratulate you on those virtuous emotions, which must swell your bosom at the reflection, that you have been the able, the useful, and what is above all other things, the honest servant of a Republic, indebted to you in a great degree for her first efforts towards an independent existence. That you may long live to enjoy those pleasing reflections, which flow from the memory of an active and beneficial exercise of time and talents, is the sincere wish of your most obedient and humble servant,

ROBERT MORRIS.

* * * * *

TO MESSRS WILLINK & CO.

Office of Finance, December 31st, 1783.

Gentlemen,

Upon the 21st of October I valued on you to the amount of seven hundred and fifty thousand guilders as expressed in my letter of the 23d of that month, and in the beginning of this month having received your letter of the 4th of August, and concluding as well from the contents of that letter as from the actual state of things here, that you would be successful in the succeeding months, I gave notice to the gentlemen to whom I had sold the bills mentioned in my said letter of the 23d of October, that I should discount their notes, which has been done accordingly. Thus the United States are become liable to pay any damages, which those gentlemen may sustain, if, in consequence of delay their bills may meet with, those drawn by them in consequence of a reliance on your funds should return protested. The United States will also be liable to the damages, which might arise on my further bill drawn in favor of Mr Haym Solomons for one hundred thousand guilders on the 12th instant, and mentioned in my letter of that date.

Under these circumstances, Gentlemen, and unable to judge what delays the loan may have met with from the causes you have mentioned, or from any other, being also uncertain how far it may have been or may be accelerated from other causes, I must request that in any case whatever all my aforesaid bills may be accepted. You will see from the enclosed copies of letters to the receivers of Virginia and South Carolina, that I am taking measures to put you in cash for any advance which such acceptances may render necessary. These measures are intended with the double view of providing for the interest of your loan or of reimbursing your advance. In the former case you will be in cash before the interest falls due, but at any rate you shall be secured. The disbandment of our army having brought our expenses within the revenue, there remains an excess, which cannot fail to reimburse you even if the loan should totally fail. For I cannot suppose, that you will be much more than half a million in advance, and I am certain that the excess of taxes for current services would easily pay this sum in four or five months, and I am equally certain that I could by anticipation bring that excess forward to your relief at an earlier period if necessary.

My request to you, therefore, Gentlemen, is this, that you accept my bills at any rate, whether you have funds or not, and whether you have or have not the probability of receiving them. If the payments fall due before you find relief, take such measures to obtain money as shall under a view of all circumstances produce that effect with the least loss to the United States. Of these measures I leave to you the entire disposition, and I promise you on the part of the United States to reimburse all losses, interests, costs, and charges, which may accrue thereupon. You will be pleased, Gentlemen, to give me very early notice of your situation, and to point out very particularly the sums which may be needful, and also the articles of this country, which will probably form the best remittance, and on my part I promise to take the earliest measures for making you such remittances. I shall confidently rely on your efforts, and remain with perfect respect, Gentlemen, your most obedient servant,

ROBERT MORRIS.

* * * * *

TO MESSRS WILLINK & CO. Office of Finance, December 31st, 1783.

Gentlemen,

Your advices of the 26th of September, that the success of our loan with you had been greatly impeded by reports, propagated on the part of Great Britain, did not a little surprise me. In my letter of the 12th of this month, I have given you some slight sketch of the mutiny of a few troops near this city, and this perhaps may be among the circumstances, which have militated and been magnified to our disadvantage. But as I did not then, so I do not now think it worth while to mispend time by the history of a trifling thing, which has no importance in itself, and which might derive some by treating of it seriously. It has always been the common trick of the British and their adherents to assert, that America had neither government, armies, nor resources. To all which, I answer, that America has established her independence. Far be it from me to attempt an injury to the credit of any other nation; on the contrary, let those who would rather trust England than America, make the experiment, and if it prove beneficial, let them rejoice; if it prove otherwise, I shall pity the sufferers.

I should not, indeed, be greatly surprised, that our credit were impaired in any of the absolute monarchies of Europe, because that such governments have no proper ideas of the sacred regard, which is due to pecuniary engagements taken by the public, and because the people have no conception that the government should be unable to command all the wealth of its subjects. But in your country, it is an every day's experience, that determinations of the States-General should meet with obstacles in the different Provinces, and this has been precisely our case in the business of finance. No State has insinuated, that our public debts ought not to be paid; nor indeed does any individual dare to hold up that idea. But differences have arisen about the mode of making provision for them, and such differences of opinion necessarily cause delay. It is, however, with much satisfaction, I inform you, that the different States are coming in one after the other, and I have strong expectations that all of them will soon accede to the plan of Congress, which I formerly transmitted. The government of this country has been vigorous enough to carry us through the war, and it would be strange indeed, if it should all at once become weak in that moment of peace, when other governments usually acquire strength.

For my own part, I cannot believe that such ideas will take place among sensible men; but on this occasion, I will show to his Excellency, M. Van Berckel, the letter I am now writing, and desire him to write candidly to you and to others his sentiments as to the state of this country, whether the people are in peace, obedient to the laws and the government in due force, or whether we are a prey to discord, and our country the theatre of tumult and confusion.

I am, Gentlemen, &c. ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS. Office of Finance, January 13th, 1784.

Sir,

The Secretary of Congress has transmitted to me the petition of John Cowper, with an order to report thereon. I must, on this occasion, pray leave to observe, that this, with a variety of other similar transactions, depends on the adjustment of the accounts of the Secret and Commercial Committees of Congress. In a letter of the 12th of August last, I had the honor to observe, that those accounts "were far from being inconsiderable, either as to their nature or magnitude; that they were involved with others, and had extended themselves to different parts of the United States, and to Europe, and the West Indies; that they were more connected with the Marine Accounts than with any others; and that the settlement of them was highly necessary." I took the liberty, also, then, to suggest the propriety of submitting the investigation of those accounts to the commissioner for settling the Marine Accounts, or of appointing a special commissioner for that express purpose.

Since writing that letter, the Commissioner on the Marine Accounts, having been obliged in the course of his business, to look at the Commercial and Secret Committee Accounts, has not only discovered some balances due to the United States, but has reported other matters, which show in a strange point of light, the necessity of examining and settling those accounts. I think they could be more easily, speedily, and effectually settled by that gentleman, than by any other, and therefore the submitting of them to him, might be eligible in an economical point of view.

I come now, Sir, to observe, which I am sorry to do, that my report on Mr Cowper's case must necessarily be suspended, until after a reference to the commissioner appointed to adjust the accounts of the Secret and Commercial Committees, I shall be possessed of such a state of facts, as will enable me to report with propriety.

Before I close this letter, I must also observe, that as the accounts in question originated with, and were under the superintendence of members of Congress, it is a kind of duty, which Congress in their political capacity owe to themselves, to trace the applications of money through those channels with the same attention, which has very properly been applied to other public expenditures.

With perfect respect and esteem, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO.

Office of Finance, January 13th, 1784.

Gentlemen,

I some time since drew a bill for two hundred and fifty thousand livres, on Messrs Wilhelm and Jan Willink Nicolas, and Jacob Van Staphorst, De la Lande and Finje, merchants at Amsterdam, in favor of Mr John Ross. This bill was drawn on the credit of the loan opened under the direction of those gentlemen, and in consequence of flattering accounts of its success, which I had just then received. I find that Mr Ross has remitted this bill to you, and is actually drawing on the credit of it. Some late advices from Amsterdam give me reason to apprehend the possibility of a nonpayment of this bill, and therefore I am now about to make to you the request of a favor on the part of the United States. It is, Gentlemen, that you would place this sum to the credit of Mr Ross at the day when the bill falls due, whether it be paid or not, and whether in the whole or only in part, taking the bill up for the honor of the United States. You will then immediately give me notice of the sum, which, by this means, your credit is advanced for, and I will take care to make you remittances for amount of the principal and interest of that sum, nor will I quit my office until you are fully repaid. At the same time you will probably also find some relief from the further produce of the loan; as the causes which impeded its progress during the months of August and September, have long since been removed. And indeed I still expect, that the success of it will enable the punctual payment of Mr Ross's bill, and only write this letter out of prudence and for the greater caution.

You will observe, Gentlemen, that I have two objects in making this request, one is to save the credit of the public, which might materially suffer by the coming back of this bill, and the other is to prevent the payment of twenty per cent damages, which would be the eventual consequence, over and above the private injury, which Mr Ross would sustain in his personal credit. If, Gentlemen, you have a sufficient confidence in me and in my country, you will comply with this request, provided your own convenience will in anywise permit. If you have not that confidence, I must lament it as a misfortune.

I am, Gentlemen, yours, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 16th, 1784.

Sir,

I do myself the honor to transmit to your Excellency the copy of a letter from David Sproat; I should not trouble Congress with it if the supplies mentioned had been advanced to persons taken in the service of the United States. As it is I should suppose an express appropriation of money to this purpose to be necessary; Congress can best judge whether that be proper, but if I were to express an opinion, it would be, that the payment of such debts is the most effectual mode of providing for those disastrous accidents, which the citizens of America are liable to in common with the rest of mankind.

I am, Sir, respectfully, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 21st, 1784.

Sir,

I do myself the honor to enclose the extract of a letter of the 10th instant, from the Quarter Master General. The latter part of it, referring to a matter which he has long since brought before Congress, I shall not take the liberty of meddling with.

In the former part, he alludes to a letter of the 27th of October last, in which he had stated to me the claims of individuals for damages done by the army. Instances are mentioned peculiarly distressing, and of a nature to require compassion while justice demands for them somewhat more. I did not on the receipt of this letter address Congress on the subject of it, because the making any particular provision for the cases of individuals, is laboring to very little purpose, and by stilling the cries of one only raises the clamors of hundreds. This indeed was the remote cause of the Quarter Master's letter, for the resolution passed in the case of Stephen Moore, had given activity to the complaints of all those who knew of that resolution, and labored under similar grievances. But a stronger reason for not troubling Congress on the subject, was that I had already brought it before them in a letter of the 12th of August last. The following is an extract from that letter.

"There is, however, among the commissioner's questions to me, one which Congress alone can answer in the affirmative; viz. _are charges for buildings, fences, wood, &c. damaged or destroyed by Continental troops or militia, to be allowed?_ Considering the extent and magnitude of this object on the one hand, and on the other, what serious injuries have been sustained by some individuals, the question is equally intricate and important. No answer has yet been given, although not unfrequently agitated, as the journals will testify. Whether Congress will leave it on the present footing, or order such damages to be allowed, or (making a distinction between wanton devastations and necessary impressure) leave the officer to account in one case and the public in another, or finally whether they will take a course between all these and order the accounts to be liquidated and reported, but the balances not to be finally allowed and certificates given, until their further order, are questions which it is in their wisdom to determine by that extensive view of things which they possess."

I shall take the liberty to observe to your Excellency, that claims of this kind become daily more urgent. The people recovering by degrees from their despondency as to the settlement of their old accounts and beginning to feel some hope of eventual payment, and of consequence a firmer reliance on and belief in the justice of the United States, naturally look forward from the measures already taken to those which prudence and equity may still further dictate. Some provision ought certainly to be made; but I must repeat that the object is not only great as to the pecuniary amount; but extensive as to place, persons, claims and circumstances. The caution hitherto preserved was therefore wise, but it can no longer be adhered to, because the idea held up to every applicant, was that after a termination of the war, and not before, provision should be made.

I take leave also, further to observe to your Excellency, that there is a material distinction to be made, even among such of these claims as are otherwise similar, according to the times in which the respective causes of them may have originated, as whether they were previous or subsequent to the commencement of the year 1782; claims for supplies obtained during the latter period, ought certainly to be considered as within the appropriations of money demanded for the current service, the quotas of which yet remain unsatisfied. In order then that this matter may come before the United States in Congress in such regular form, as that some decision may be made, I shall submit to their wise consideration the following Act.