Part 4

Knowing the state of your finances, I have studied to keep this debt within its most moderate bounds, but in spite of all my endeavors, I fear you will find it but too large. I hoped to have given you some assistance from the military chest found with the enemy, but unavoidable contingencies of the army, and furnishing the Quarter Master General for the southern army, have swallowed up near one half of its contents. A number of iron cannon, being unnecessary for our use, I have appropriated as a fund for the discharge of the debt incurred, and they are sent to the head of the Elk; this with the other funds may possibly amount to a full discharge of the debt.

I am, &c.

GEORGE WASHINGTON.

_P. S._ Since writing the above, I am informed by General Lincoln, who is come up since I left Yorktown, that the whole amount of the goods taken by the officers and on public account, will arise to about thirteen thousand pounds sterling, and that the articles sold in Yorktown, at public vendue, will be near six thousand pounds.

G. W.

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TO THE GOVERNOR OF CONNECTICUT.

Office of Finance, November 20th, 1781.

Sir,

I have been honored with your Excellency's letter of the 7th instant, and am much obliged by the attention you have been pleased to pay to the several applications from me, which are noticed in it.

I shall be very happy to receive the several accounts you have promised, because the final settlement of all accounts appears to me of the utmost importance, and I hope such measures will be taken, as founded in justice and propriety will meet your wishes, and be agreeable to the State, over which you so worthily preside. I hope that in future, there will be no accounts between the States and the United States, except cash accounts, one side of which will consist of the requisitions, and the other with the payment of them. The old Continental, which is brought in, will, I hope, be forwarded hither, with its proportionate part of the new, and indeed of the whole, both new and old, as soon as possible. Both shall be carried to the credit of the State.

As to what you mention of the tax in specie, I have to observe, that whatever may have been the practice heretofore, I hope that the moneys designed for the general service will be paid into the Continental Treasury, and that the army will be paid from thence. This I conceive to be the only mode, by which heart-burnings, murmurs, and complaints can be avoided, and, at the same time, it is the only mode, by which the moneys obtained from the people can be applied with effect and economy.

To feed, clothe, and pay the army, form a part of the objects of my administration. Clothing I have received. Rations I have contracted for in some degree, and I shall extend those contracts. Pay will also be advanced, when the treasury will admit of it. I am, therefore, to request that the hard money collected, and collecting in your State may be held subject to my drafts. I expect that the States will all levy taxes sufficient for those things I have just mentioned, and for the other necessary expenses. The money which is submitted to my disposal shall be faithfully applied.

That the requisitions from Congress have been later than was to have been wished, is indeed to be lamented. That body have so many objects, which call on their attention, that they cannot always do what they would wish. Besides this, the uncertain situation of our money has hitherto greatly increased the difficulties, which Congress have labored under, and you will permit me to observe, Sir, that those difficulties are not a little to be attributed to the inattention of the several States. But your Excellency will, I am sure, agree with me, that our situation requires joint vigorous exertions, and not unavailing complaints and recriminations.

With the greatest respect, &c.

ROBERT MORRIS.

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REPORT OF A LETTER TO DON BERNARDO DE GALVEZ, MADE TO CONGRESS, NOVEMBER 21ST, 1781.

The Superintendent of Finance, in pursuance of the order of the 7th instant, prays leave to submit the following draft of a letter to General Galvez.

Sir,

Your letter, dated at New Orleans the 22d of July, 1780, has been received, and was laid before the United States of America in Congress assembled on the 29th of September following. The committee to whom that letter was referred, did not make any remittances in consequence of it, nor write you an answer, because the dangers attending a communication with you at that time were too great, occasioned by the many ships of war, with which the enemy then infested our coast.

I am now, Sir, directed by the United States to express to you the grateful sense they entertain of your early efforts in their favor. Those generous efforts gave them so favorable an impression of your character, and that of your nation, that they have not ceased to respect you, and to wish for an intimate connexion with your country. Conceiving it to be for the mutual interest of Spain and North America, they have an earnest wish, that as the cause is one, and the enemy one, so the operations against him may be continued in such manner, as to answer the great purposes, which all have in view. The late successes, which have crowned the combined arms of France and America in Virginia, while they demonstrate the benefits which flow from a union of efforts, will at the same time, lead to wholesome reflections on the manner in which that union has been cemented. The French and American soldier marching under the same banners, enduring the same fatigues, bearing the same dangers, and bleeding in the same field together, express in the language of their different nations the common sentiment of fraternal affection. Let me congratulate you very much on this success, and still more on the sentiment, by which, under Providence, it has been secured.

With respect to the advance made by your Excellency, I have the honor to enclose copies of two resolutions of Congress, one of the 6th of February last, and the other of the 7th instant, by which you will perceive, that the public accounts with Mr Pollock are settled, and a considerable balance carried to his credit. In these accounts is included a part of your advance, and the remainder of it is contained in Mr Pollock's account with the Commonwealth of Virginia. This latter account has been referred to the consideration of that Commonwealth, and I trust the debt to Mr Pollock will be acknowledged by them. That which is due from the United States to Mr Pollock is now on interest at six per cent, and if you wish that the sums which he has appropriated to the service of the United States out of those advanced by your Excellency should be credited to you, on transmitting an assignment thereof from Mr Pollock, it shall immediately be done, and payment will be made both of the principal and interest, as soon as the situation of our finances will admit of it, which, from the present prospect of things, may happen in a shorter space of time, than the public creditors have been generally led to expect.

With perfect respect and esteem, I am, &c.

ROBERT MORRIS.

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TO M. DE LA LUZERNE.

Office of Finance, November 22d, 1781.

Sir,

In conversation with your Excellency last evening, you requested me to write to you on the subject of it, that you might be fully possessed of my sentiments. I have now, therefore, the honor to remind you, that some time in the month of May last you promised me that I should draw for half a million of livres, and shortly after, for a million more. You afterwards extended this sum to two millions and a half, and on the 25th of September last, I wrote to you on the subject, having then seen the report of the committee appointed to confer with you, by which it appeared, that your engagement with me to draw for the sums first mentioned formed one object of that conference, but that the engagement for one million more was omitted.

I have extended my engagements according to the extent of the means, which I was induced to suppose in my power, and therefore, estimating the money and supplies the States would probably furnish, and relying on the money which had arrived, that which I was authorised to draw for, and that which the engagements of your Court had led me to expect, my views were directed to all those resources. I shall not dwell on the consequences of my efforts. Enough of them are known to speak for themselves, and I leave to your knowledge and observation the comparison of our public affairs now, with what they were exactly six months ago. I will only say, that if those foundations, on which I built, are removed, my past labors will have been thrown away, and my future utility absolutely destroyed.

You can well remember, Sir, what I have often told you of the course of exchange. I have raised it gradually since I first commenced my operations, and although it would now have been higher than it is, if the quantity of bills thrown on the market last summer had been withheld; yet even now, at fifteen pence this money for a livre, it is but ten per cent below par; and as I expect shortly to raise it to sixteen pence, it will then be at a discount of only four per cent. To sustain these operations, if for no other purpose, it is necessary that I continue to draw bills, for certainly a remittance cannot be made so cheaply from Europe. But, indeed my present demands, arising on past engagements, are very great and urgent, so that if I do not continue to draw, the chest will presently be empty, which will be known as soon as it happens, and then I am again at the mercy of the world. I will dwell no longer upon this subject, but take some notice of another matter, which stands in intimate connexion with it.

You will remember, that you have often mentioned to me a mistake in the account, of which you delivered a copy to Congress. As I made no doubt, that it would be properly and satisfactorily explained, I have hitherto restrained myself from going at all into the subject. But it now becomes my duty to write to Dr Franklin upon it; and, therefore, I wish to communicate to you my sentiments, while I request you to use your good offices with the Court for having the matter placed on its proper footing.

The note from the Count de Vergennes, of the 16th of May last, shows very clearly a grant of the three following sums; four millions to Dr Franklin to discharge the bills of exchange drawn on him by Congress; six millions as a gift towards the operations of the campaign; and ten millions in advance of the loan to be opened in Holland, amounting in the whole to twenty millions. The first sum of four millions, appears evidently to have been for payment of the bills drawn to discharge the interest of loan office certificates, according to the original engagement, which the Court entered into with the American Commissioners. Of the money granted by the Court, there has been advanced, as appears by the account you delivered to the committee, in warlike stores and money, to Colonel Laurens, four millions seven hundred and eightynine thousand one hundred and nine livres; and to purchase the remainder of the articles demanded by him, three hundred and ninetyseven thousand livres. For the bills of exchange drawn by Congress on their Minister, I will suppose the sum mentioned in the Count de Vergennes' note, viz. four millions, and I will add for my drafts one million and a half, being what, as I have already observed, you first promised. Thus the whole amount of these sums is ten millions six hundred and eightysix thousand one hundred and nine livres, and the balance, which I conceive to be subject to my disposition, is nine millions three hundred and thirteen thousand eight hundred and ninetyone livres. As to replacing the cargo of the Fayette, which is mentioned in your account, I do not take notice of it, because I wish that it may not have happened, and because if it has been made, it will be time enough to deduct it when the articles shall have been actually delivered. The loss of that ship, and the detention of one of the transports laden by Colonel Laurens, have already compelled me to make heavy expenditures. Among these I will mention the purchase of lead some time ago, and a late purchase of clothing to a very large amount, a part of which I am now paying for, and the remainder is to be paid in three, six, and nine months from the date of my engagements.

I have the honor to enclose what I conceive to be the clear state of the account between us and your Court. This will be transmitted to Dr Franklin, and I hope it will meet with your approbation and support. As I have nearly drawn for twelve hundred thousand livres, I must request your compliance with your original engagement, that I may extend my drafts so as to include the remaining three hundred thousand, necessary to complete the one million and a half, mentioned in the enclosed account.

I shall be glad to be informed, Sir, whether any more money has been shipped on account of the United States. I shall immediately take measures to draw on account of the balance already mentioned, as our necessities require it; and if in the mean time, so much shall have been shipped, as that my bills exceed the balance due, I shall expect that they will be punctually paid, and I will readily repay that excess out of the moneys so shipped, to the use of your army here.

I have the honor to be, &c.

ROBERT MORRIS.

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TO M. DE LA LUZERNE.

Office of Finance, November 26th, 1781.

Sir,

The letter, which you did me the honor to write on the 24th instant, was delivered yesterday morning, and I take this early opportunity to acknowledge it. As you have assured me, that you cannot know any account, which is not conformable to the instructions his Majesty's Minister has addressed to you, I shall spare your Excellency the trouble of my remarks. But as you say, that your letter of the 26th of September last could not have left me the shadow of a hope on the subject of further drafts, your Excellency will pardon one observation. Those precise orders from your Court, received by Colonel Laurens, which compel you now to prohibit my further drafts, permitted you then, in consequence of the observations I had the honor of making to you, an extent of nearly three hundred thousand livres. It is my duty to trespass one moment longer on your Excellency's patience, while I take the liberty to observe, that I can by no means consider purchases made for any particular State in the Union as properly chargeable to the United States.

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

ROBERT MORRIS.

* * * * *

TO B. FRANKLIN.

Office of Finance, November 27th, 1781.

Sir,

The Marquis de Lafayette who is about to sail for France, will have the honor to deliver this letter, and, consistently with the acts of Congress of the 23d instant, I must request you to communicate it to him, and, from time to time, to take his aid in the prosecution of the business, which I must recommend to your particular attention. The affairs of my department are of a nature not to require concealment; but, even if that were not the case, I have such perfect confidence, as well in the prudence of the Marquis, as in his attachment to this country, that the acts of Congress out of the question, I should feel a pleasure in making him acquainted with my views and wishes. Indeed, I expect that his zeal and activity will go far in smoothing the way towards the accomplishment of those objects, which your Excellency may have to solicit.

In order that you may be perfectly acquainted with the situation of our affairs, I shall previous to my observations on the supplies to be asked for the next campaign, take some notice of the efforts I have made, and am daily reiterating, to obtain supplies from the several States, upon the various requisitions, which Congress have already made, and to operate a settlement of past accounts, and to procure proper funds for the public debts. I shall also make some remarks as to the prospect of future supplies in this country, and on those which have already been granted by the Court of France.

The papers enclosed relate chiefly to the former requisitions of Congress. You will observe, Sir, that by an act of the 28th of June last, I was directed to press a compliance with those requisitions, and it is in consequence thereof, that my circular letter of the 6th of July was written. The demands of Congress were twofold; some for specific supplies of the produce of the several States, the others for money. It may be proper here to observe, that the manner of doing public business had been such, that it was not merely difficult, but absolutely impracticable to state any accounts in the clear satisfactory manner, which ought always to be wished, even in private life, but which in public life is of the last importance. I do not mention this to cast any reflection or aspersion; for the evil resulted more from the want of arrangement, than the faults of any particular men. But it is right to take notice of the circumstance, because, in the course of what I am about to write, the want of such accounts cannot but appear. I shall say nothing as to the ill effects of demanding generally a contribution of specified articles; my opinions on that subject will appear from the enclosed papers, and experience has taught, that such contributions are no longer to be relied on. At the same time, I declare now, that in some degree it must still take place, for reasons, which will be mentioned at the proper time.

As the letter last mentioned contains no statement of the accounts, I wrote on the 16th of July another, containing the cash account of each State, as extracted from the treasury books; a statement, however, which I knew to be imperfect, for causes not necessary to be repeated. On the 25th of July, I wrote another circular letter, and in which was enclosed a statement of the several demands for specific supplies. These were considerable, and I am of opinion, that a very great part of them still remains to be delivered at this day; but there have yet come to my hands no accounts by which to determine the balances. What is said, as to the settlement of accounts in this letter, will be honored with your notice presently. You will now observe, that I therein request information as to the revenue laws, which have been passed, the mode of collecting taxes, the moneys in their treasuries, the various appropriations of it, and the different paper currencies in the several States. To your Excellency, it is unnecessary to observe, that my object was to obtain proper materials, on which to ground my future expectations, and to form efficacious systems of revenue and expenditure. I have the mortification, however, to mention, that no accurate or satisfactory answers have been received to these questions; and when I tell you, that I am not much deceived in my expectations, you will readily form the proper conclusions, as to the relaxed habit of administration in this country. I wish you to be fully possessed of our situation, and that you may convey a clear idea of it to the Court of Versailles. This will be useful to the common cause. I trust that I need not remind you how advantageous it would be for us to know as fully the real situation of France.

The low state of public credit, for the want of solid funds to support it, had induced the United States in Congress, to call for an impost of five per cent on all goods imported, and on all prizes and prize goods, to be granted for the payment of the principal and interest of the debts contracted, or which might be contracted, during the present war. Some of the States had complied with this demand. The two more Southern States were in such disorder, that a compliance from them could not reasonably be expected; neither was it relied on, as you doubtless have remarked, on reading the resolutions of the 3d of February upon that subject, which must have reached you before this day. On the 27th of July, therefore, I wrote a letter to the States of Massachusetts, Rhode Island, New York, Delaware, Maryland, and North Carolina. I have the pleasure to inform you, that the States of New York, Delaware, and North Carolina, have since complied with the demand of Congress, and I am convinced that they will, in the laudable step, be speedily followed by the other States. In the mean time, we must patiently wait the event. Such things require time, and since we cannot command obedience, we must stay for the assent of conviction.

On the 6th of August, I wrote a letter to the President of Congress, enclosing those already mentioned. On this letter it is necessary to say nothing more, than that it met with the approbation of the several members, who have, I believe, written such letters to their respective States as I desired.

My letter of the 15th of September, to the Governor of Massachusetts, was, as your Excellency will perceive, although the settlement of past accounts is mentioned in it, written in answer to his of the 23d of August, in which he tells me, that he will lay the business of the impost law candidly before the Legislature, but thinks it will go heavily through. I shall add nothing here to what is said in that letter.

My letter of the 20th of September to the Assembly of Pennsylvania, was written so particularly, in consequence of the authorities they had confided by their resolutions. I wrote to you respecting these resolutions, and my plans founded on them, the 21st of July, and I just mention here, by the way, that this plan has not been in any degree executed, for reasons not necessary to be at present enlarged upon. My letter to the Assembly of Pennsylvania, with the enclosures referred to in it as accounts of which I send you copies, will need no explanation, unless it be to mention that this State had issued one hundred thousand pounds, secured with interest on certain lands near the city, which is now nearly paid by the sales of these lands, and five hundred thousand pounds more not bearing interest, which was funded upon the Land Office, the dues to which were estimated at a much larger sum. I have sent this letter, as also my private letter of the 16th of October, to Governor Nelson, merely that you may be well apprized of the incessant attention, which is paid here to call forth our own resources. I might have added many other letters to particular States on particular occasions, but I dare say you will find this letter sufficiently voluminous.

Before I quit this subject of the past requisition of Congress, I must add that, notwithstanding my pressing instances, very little hard money has been obtained from the States; not more than one hundred thousand dollars during my whole administration. There has, indeed, been drawn forth some considerable specific supplies of provision, and there is on hand a great deal of paper money. From the former our army has been principally maintained, and indeed there is a small advance made to the Count de Rochambeau, which I mean to be in part of your promise mentioned in a former letter, and I here repeat to you my determination to comply with it as speedily as any convenience will possibly admit.