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.
As to the paper money, it is of no use, although it is necessary, for evident reasons, to receive it in taxes. But the confidence of the people is so entirely lost, that for the present no bills of credit whatever can be made use of as money. I hope that the taxes laid and collecting in most of the States, will bring in all this useless load by the middle of next summer; and I have some expectation, that the States of Massachusetts, Connecticut, Pennsylvania, and Delaware, will be entirely rid of it by the spring. If I could buy anything with it, I would not, until the last necessity; but it will buy nothing, so that it must be burnt as soon as it honestly can.
The picture I have already given of this country will not be pleasing to you. Truth bids me add, that it will admit of a higher coloring. But what else could be expected from us? A revolution, a war; the dissolution of government, the creating of it anew; cruelty, rapine, and devastation in the midst of our very bowels. These, Sir, are circumstances by no means favorable to finance. The wonder, then is, that we have done so much, that we have borne so much, and the candid world will add, that we have dared so much. I could take up much of your time in recapitulating many less matters, which have tended to weaken the exertions we have otherwise been capable of. The confused state of public accounts, and the deplorable situation of credit for want of funds to secure, or means to redeem, the debt, for which the public faith is pledged, are, however, of such important operation, that I must not pass them over in silence.
In the enclosures your Excellency will have perceived, that I have noticed the effects, which follow from the want of a final settlement of accounts. Representations on the subject of these accounts, and also of certificates given by public officers in the Commissary's and Quarter Master's Departments for articles taken from the people had been made by some of the States to Congress. The impost asked for by Congress was, I have already observed, for the funding of our debts. On the 13th of October, I wrote a letter to the several loan officers, in which I expressly prohibit the issuing of any more Loan Office certificates. The reason for this order will appear more clearly from the latter part of my letter to the several Governors of the 16th of October.
I do hope and expect, that some methods will speedily be adopted by the United States in Congress assembled for settlement of the public accounts, as also to liquidate the several certificates given by the public officers, and to provide revenues for funding the public debts. The last of these objects must not, however, be urged with too much rapidity. The impost law is not yet passed, and is the first step. When that shall have been taken, it will give room for urging what further may be necessary. In the meantime, there is a well grounded expectation, that the clamors of our creditors will induce the several Legislatures to comply with the requisitions of Congress upon that subject.
From what has been said, your Excellency will perceive, that the prospect of future supplies from the several States, is by no means very brilliant. I send you the Act of Congress of the 29th of October, calling for eight millions of dollars, the Act of the 2d instant apportioning that demand among the several States, and the Act of the 12th instant, repealing (in consequence of my letter of the 5th) a part of the Act of the 2d. My circular letter of the 17th, enclosing those Acts to the Governors, will close what I have to say on the subject. But I must observe to you on my letter of the 5th to the President of Congress, that although it is strictly true, that I had not seen the estimates as mentioned in that letter, yet it is equally true, that until the business was nearly completed, I was supposed to have seen them, and when the contrary was suggested, they would have been sent from Congress, but that so few States were represented, as that only the number absolutely necessary to pass such requisitions were then present, and some of the representatives of those few were about to depart, wherefore it was waved. I have further to remark on the estimates themselves, that they are only for the feeding and paying the army. The expense of recruiting that army, of moving it from place to place, the heavy articles of clothing and ordnance, with expense of the hospitals, and the long train, which is comprehended under the title of contingencies, is totally unprovided for. Defective as it is, I have no hope that it will be complied with. The great arrearage of unfunded debt, the cumbrous load of useless paper, the multiplied mass of certificates, the distracted situation of the more southern States, the ravages which have been made in them, the total loss of their commerce, the real want of coin in many States, and the equal want of system in all. These, Sir, are circumstances, which forbid the most sanguine temper to expect a full compliance. It shall be my business, as it is my duty, to get as much as I can, and for this purpose, I shall make compositions; where it is necessary, take articles of provisions in lieu of money and the like. Still, however, I am convinced, that I shall not get what is asked for, and indeed I do not expect any part of it, before the middle of next campaign.
I have said, that I will make some remarks on the supplies already furnished by France. It is necessary to do this, as well because I am so unfortunate as to differ a little in opinion on the subject with the Minister of his Most Christian Majesty here, as because the demands we are to make on the Court for the next year, will depend on the compliances, which have been, and shall be, made with the grants for the present year.
It was a point understood in Congress very early, that his Most Christian Majesty would pay the interest of certain moneys to be borrowed by Congress in America. Your Excellency knows better than any other man what passed on that subject. It would, therefore, be absurd in me to recapitulate it. Those circumstances which rendered an express stipulation improper then, have introduced much delicacy into it now; and, therefore, I do not expect that the Court will recur to a formal acknowledgement of what was then, perhaps, rather a personal, than national, obligation. But I do expect that the payment of that interest will be provided for as heretofore, without considering the moneys appropriated to that purpose, as a relief to us in carrying on the war. You will have seen, Sir, from the course of my letters how much it is an object with me to collect from ourselves the revenues necessary to lighten our debts. There is a variety of reasons for it, which I will not repeat. Among them, however, this is one, that I wish to remove the load from France to ourselves. It will in the end be the same thing; because, in proportion as our resources here are appropriated, we must ask help there. But it would be better, that the people were taught to look at home for the basis of national credit, because there alone it can be found. I should not have mentioned this matter, but that you will find it noted in the correspondence between the Chevalier de la Luzerne and myself, of which copies are enclosed.
Shortly after the arrival of M. Gerard, it was understood that France would supply us with the clothing and warlike stores which might be necessary, and therefore it was, that Colonel Laurens, when in France, labored to prevent a deduction from the subsidy of six millions on account of the articles furnished to him. As I am persuaded that his efforts were in consequence of your advice, and in concert with you, I shall say nothing more upon that subject, only to lament that the Court have differed from you in opinion, and to acquiesce in their determination, on the principle, that those who give have a right to dispose of that which is given.
By a note from the Count de Vergennes, of which I enclose a copy, I perceive that the Court granted the United States as a gift, six millions; advanced to you four millions to pay the bills which might be drawn on you; and became security for a loan of ten millions; the amount of which was to be advanced from the royal treasury, in case the loan should fail of success. The expression, as to this last object, is strong, namely, that his Majesty will see himself under the necessity of supplying the deficiency, although, in the former part of the note it is said, that he will supply it from his own finances as soon as possible. An expression which, while at the first blush it makes an earnestness of affection, may be, and in fact has been, construed into a kind of cautionary provision. Your Excellency will also, I doubt not, observe what is there said of the appropriation of the gift, the last two millions whereof, as is already observed, we did not expect to find there.
Enclosed also is an account delivered by the Minister of France in the month of September to a committee of Congress, which had been appointed to confer with him. There are striking differences between this account and the note last mentioned. But by this account it appears, that it was the design of the Court to make the advances of the present year distinct from all past transactions. From whence this conclusion, at least, will follow, that such of the bills drawn by Congress, either on yourself, or on their agents in Spain, or Holland, as you may have discharged before the commencement of the present year, are not to be deducted from the sums mentioned in the Count de Vergennes' note. Now that I am on this subject, I will observe to you, Sir, that I have determined to prevent that circuitous negotiation of bills, which has so much perplexed and distressed you, and have for that reason stopped many of those already drawn, as will presently appear. Another observation to be made on this account is, that no notice is taken of the four millions expressly mentioned in the Count de Vergennes' note, as granted to you for payment of bills drawn by Congress.
A third observation is, that the articles marked B, and the article number two, C, which together amount to the sum of six million, six hundred and eightysix thousand one hundred and nine livres, are all charged as being expended to the order of Colonel Laurens. But by the Count de Vergennes' letter to you of the 8th of June last, it appears, that Colonel Laurens was to have had the command of no other than the six million livres, given by the King. Indeed the Count's note of the 16th of May shows the same thing. The letter of the 8th of June just mentioned, shows clearly the opinion of the Court on another point of very great importance, namely, that the whole ten million livres, to be advanced for the loan, are, as in effect they ought to be, subject to the disposition of the United States only. A fourth observation is, that the article A three, B two, and C one, amounting to four millions three hundred thousand livres, were, or were to have been, in your possession for payment of bills. If to this be added four million livres, granted for that express purpose, of which no mention is made in the account, it would follow, that you would have eight millions three hundred thousand livres at your disposal; and this leads me to consider the amount of the demands, which could be made on you.
These cannot be precisely ascertained, but the paper number seventeen, contains the best estimate, in my power. The first six articles of this estimate contain all the bills, which have been drawn upon you, excepting some interest bills, which although made out had not been delivered to the people before the 1st of April last. These amount to ten millions six hundred and seventyone thousand four hundred and fiftysix livres, thirteen sols, four deniers. The article number seven, is the whole amount of guilders drawn for; the far greater part of which I have detained, as you will perceive by the article number eight. The balance it is not possible to ascertain exactly in livres, because it must depend upon the course of exchange; but at two livres for a guilder, the whole of the bills actually negotiated on Holland will amount to one million ninetyfour thousand seven hundred and twentynine livres. The article number nine, is the amount of bills drawn on Spain, of which a considerable part has been paid by Mr Jay, and a part, somewhat more considerable, is destroyed. These parts are contained in the articles ten and eleven. The balance (calculated at the value of a dollar in France, which will, I suppose, be as much as it can cost) amounts to one million seventyseven thousand two hundred and eighteen livres. So that the whole of those bills, which by any means whatever could have come upon you for payment, will be twelve millions eight hundred and fortythree thousand four hundred and three livres, thirteen sols, four deniers, and from this sum very considerable deductions are to be made. The article number twelve, which is the first of them, contains the exact amount of the several bills for interest, which were negotiated previously to the first of April last.
It may be objected, that these bills will many of them be payable during the present year; which indeed, is true, and for that reason, I have added to the bottom of the account the extent of one year's interest on Loan Office certificates, and which is more than will, I believe, be presented. The next article, number thirteen, is for bills which had been drawn on you, and have been stopped by me. The article, number fourteen, is, you will perceive, for bills, which in all human probability will have been paid during the last year. The certainty of this transaction is doubtless with you, and what we are now upon is an estimate, not an account. The remaining articles speak clearly for themselves; wherefore I conceive myself well founded in making the amount of deductions in this estimate, nine millions one hundred and sixtythree thousand two hundred and sixtyfive livres; so that after including one year's interest, as is already mentioned, the total is five millions eight hundred and seventythree thousand one hundred and twentyeight livres, thirteen sols, and four deniers; and from this there must be some deductions, because undoubtedly you have paid some of the bills drawn on Spain and Holland before the first day of January last. I have mentioned no sum for this purpose, but in order to be within bounds, I will suppose it to be only three hundred and seventythree thousand one hundred and twenty eight livres, thirteen sols, and four deniers, and then the extent of the bills payable by you in the year 1781, will be five millions and a half of livres; and, therefore, the four millions granted by the Court, and the million and a half said to be stopped by you in Holland, will apply to this demand.
As the last mentioned sum appears by the Count de Vergennes' note, to have been part of that, which was given by the Court, this state of the matter will leave clear the ten million livres to have been loaned, and seems properly to consist with the Count's note of the 16th of May, and his letter to you of the 8th of June following. I have mentioned above, that in making the deduction for bills paid previous to the year 1781, I meant to be within bounds. It is proper to give a reason why I supposed that deduction to be so. I have already made one remark on the article A one two and F, in the account officially communicated by the Minister of France in September last. From those articles it appears at least that three million livres were advanced for the payment of bills last year. The amount of the interest bills, I have already stated as being in the extent, two millions one hundred and ninetythree thousand nine hundred and ninety livres, to this sum must be added one hundred and fortyfour thousand livres, due to M. Beaumarchais, and the one hundred and twentyfive thousand livres deducted in the estimate, as having been drawn for by the Resolutions of the 19th of May, 1780. These sums together amount to two millions four hundred and sixtytwo thousand nine hundred and ninety livres; to which I will add for contingencies one hundred and thirty seven thousand and ten livres more, making the whole amount two millions six hundred thousand livres; wherefore suppose the grant of moneys to pay bills for the year 1780, to have been but three million livres, and it appears evidently to have been at least that, there would have remained in your hands a balance of four million livres; which is more than I have deducted from the amount of my estimate.
On the whole, then, I conceive myself well grounded in the opinion, that the whole loan is still at our disposal, and this opinion is so well supported by the Count de Vergennes' letter to you, that I might with great propriety insist on that point. The letter, therefore, which I shall write with such act of Congress, as may be made, in consequence of yours of the 11th of June, will proceed entirely upon that supposition.
I must, however, remark to you in this place, that I by no means intend to insist rigidly with the Court, on points which may incommode them. We are neither in a situation to do it, nor would it be proper even if we were. But while I say this, I do not mean to preclude myself from such observations as my duty shall render necessary, on any transaction which has happened, or which may happen hereafter.
I enclose you an account, containing the extent of what I conceive to have been the appropriation of the supplies above mentioned, together with an invoice from the Board of War, amounting to the sum of one million seven hundred and seventyseven thousand five hundred and twenty livres and ten sols, and which I will call one million eight hundred thousand livres, from which it will appear, that there must remain, subject to my disposition, the sum of four millions at least, after replacing the Lafayette's cargo, and purchasing the articles mentioned in the invoice.
I have had the honor to mention to your Excellency, that I have the misfortune to differ in opinion with the Minister of France. This is upon two points, namely, the drawing of bills by me, and the amount of what may remain due by the Court. From the correspondence between us, which is contained in the enclosed papers, there will appear to have been some warmth on the occasion, but this rather arose from the nature of the transaction, than anything else. I know not what impression it may have left on his mind, but for my own part, as I greatly respect him, I sincerely feel for a situation, to which the orders of his Court have reduced him; and although the language of his letter of the 24th of November, evidently intended for his Court, was so pointed as to force me into the observations contained in mine of the 26th, in my own justification; yet I was almost as much wounded while writing, as he appeared to have been at reading it. I am much inclined to believe, that he wishes to place this business substantially in the same point of light that I do. The whole correspondence is enclosed, that you may be in a capacity to make any proper observations, which occasion may dictate.
Before I take up this correspondence more particularly, I must detain you one moment longer to mention the facts, which preceded it. Before my acceptance of the office I now hold, the Chevalier de la Luzerne informed me, that the Court had given money to the United States, with a determination that it should be at the disposal of General Washington, but that upon my acceptance, he would authorise me to draw for it. It was agreed between us, that I should draw for five hundred thousand livres, and so much be deposited to answer the drafts, and by giving him notice in season a new deposit of five hundred thousand livres should be made, and so on from time to time. Shortly afterwards, I formed a plan to get money from the Havana, and explained it to the Chevalier. He approved of it, and in consequence, I drew a bill on Messrs Le Couteulx & Co. the 17th of July, for five hundred thousand livres, but the capture of the Trumbull frigate prevented the negotiation of that bill, which being then on board of her, intended for Havana, was sunk with my despatches; and the knowledge that Colonel Laurens was then on his way with specie, together with the expectation of that, which was to be sent by the way of Holland, prevented a repetition of the experiment upon Havana at that time. It was previously to the 2d of July, 1781, that the Chevalier agreed that I should negotiate bills for one million five hundred thousand livres, of which the five hundred thousand livres to have been negotiated at the Havana, was a part.
You will see enclosed my letter of the 2d of July upon this subject, which was the day before M. de la Luzerne went to camp; and also M. de Marbois' answer to it. My reply of the 4th closes the matter at that time; and then it was understood on all hands in the manner I have just now mentioned, and which I have, you will perceive, insisted on through the whole of my correspondence, and which was equally insisted on in a variety of conversations.
That part of the letter last mentioned, which relates to the effect of drawing bills, together with the letters of the 2d and 3d of August, need no comment. They merely serve to show the desire, which animates the servants of the United States, to economise the resources of France. I am not disposed to criminate, but it is right that I should inform you of my opinion, which is, that the French troops in this country have cost much more than was necessary, if my information is not extremely erroneous. I have now in contemplation plans for feeding them more cheaply, and I think the French ration ought not to cost more than half a livre, at least not much more, if so much. The officers who now return to Europe can best answer, whether it has formerly exceeded that amount, and the Court must know how much has been lost on the negotiation of their bills. While on this subject it is my duty to add, that the Minister of France here, has demonstrated the most earnest desire to introduce economy in the expenditures of the army, and that the readiness shown by the Count de Rochambeau, and other general officers, to aid in it, demand acknowledgements.
On the 24th of September the Chevalier wrote me a note, of which a copy is enclosed. This, you will observe, was after the receipt of those letters, in consequence of which, he, among other things, communicated the account, on which I have already had the honor of making some remarks. This letter, while it assigns reasons for continuing my drafts, shows clearly that the Chevalier had communicated his instructions to stop them, which was done, not only to me, but to the committee. But I confess, that I was very far from considering those instructions as absolute. I concluded, that a line of discretion had been left to the Minister; and, indeed, his answer to my letter confirmed me in that opinion. This answer is of the 26th. He does indeed say, that it is impossible to depart from the precise instructions received on that subject, and authorise my drafts to the amount of two millions five hundred thousand livres; but he immediately goes on to permit an addition of two hundred and ninetyeight thousand nine, hundred and eightyone livres, fifteen sous, and four deniers. Wherefore, it followed, that either those instructions left him at liberty to extend those drafts, or that he was at liberty to disregard the instructions. I therefore did expect to have gone on to the sum first agreed for. These expectations were frequently mentioned in conversation, and particularly so in that alluded to in mine of the 22d instant.
On the other hand, I must acknowledge, that he always mentioned his instructions, but so as to leave me under the original impressions I had received. As this letter of the 22d takes notice of another matter, it is proper to mention here, that the Chevalier had observed on a difference between the account he delivered officially to the committee of Congress and the note to the Count de Vergennes; but no pointed conversation on this subject had taken place, he expecting further information from his Court, and I hoping daily to hear from you, and being unwilling to raise a question unnecessarily. The reason why I did at last bring it forward is contained in my letter, and therefore I shall say nothing about it. The account sent in that letter, needs no comment, although it differs very widely from that marked thirtythree.
I shall only note, that if the sum of six hundred and eightysix thousand one hundred and nine livres be taken from that mentioned as advanced for stores by order of Colonel Laurens, so as to render that article conformable to what is said in the Count de Vergennes' note, the same sum must be added to the balance; by which means placing the one million five hundred thousand livres, to have been drawn for by me, in the stead of that to have been sent out from Holland, the whole will stand as first above mentioned, leaving the amount of the loan untouched. In the close of my letter, I mention a determination to draw on account of the balance, an expression which appears to have been mistaken. The reason of the assertion will in some degree appear from the answer to it. I will add, that, although I shall not risk the drawing of bills while there is any chance that they may return protested, I must, nevertheless, take measures to obtain the money for very evident reasons, and it is with this view, that I have drawn on you in favor of Messrs Le Couteulx & Co. for one million livres.
You have also a copy of the letter written on the 24th instant, in answer to that last mentioned. I shall not here notice the difference between what we have said about the additional million, as well because it is in substance the same, as because I had not insisted on drawing for it. In like manner, I shall say nothing about the permission given me to extend my drafts after the orders to stop them brought by Colonel Laurens; but you will observe, that the pointed declaration, that the letter of the 26th of September could not leave me the shadow of a hope, &c. (with what follows it) stands in such direct opposition to the whole tenor of my letter and to the real state of my expectations, that to have submitted in silence, would have been tantamount to the acknowledgement of falsehood. It is indeed easy to perceive, that the Chevalier wrote this letter to his Court, although he directed it in the first instance to me; and I conclude it to have been in consequence of his last despatches, which had not been received long before his letter was written. The equivocal use of the expression as soon as possible will not escape you, Sir; but it shall meet no other remark from me than this, that I am convinced the Court will not apply it in the same sense with the Chevalier. Neither the dignity of the Prince, nor the magnitude of the occasion will permit a reliance on such distinctions.
The state of the account made in this letter, I really do not see the propriety of. It seems to have been, in some degree, extracted from the account furnished in September to the committee of Congress, because, if the mistake of six thousand livres in the castings of that account be rectified, it will make the first sum total amount to fifteen millions one hundred and ninetynine thousand five hundred and one livres, from which deducting ten million livres, being the amount of the subsidy of six million livres and loan of four, there will remain the first article of that account, namely, five millions one hundred and ninetynine thousand five hundred and one livres. But if this be the case, it is a little surprising, that the Chevalier should not have noticed a deduction made in that very account of the two first articles, amounting to three millions four hundred and sixteen thousand livres, which are, it is there said, to be added to the advances formerly made to the Congress.
It is somewhat extraordinary, that all these should be considered by the Chevalier as advances made in the month of September. For although that account was rendered in September, yet four millions six hundred and ninetyfour thousand three hundred and ninetytwo livres are expressly mentioned as being to be furnished. I shall dwell no longer here, but I must repeat, notwithstanding the polite manner in which the assertion has been contradicted, that my operations have received a very severe, as well as material check, from stopping my drafts; not so much on account of the value of the three hundred thousand livres, as because, while they were negotiating, I should undoubtedly have received those advices from you, which would have enabled me to go on in the same line. I had brought the exchange up very nearly to par, and should soon have sold at seventeen pence this money (Pennsylvania money) for a livre, or eight shillings and sixpence for a crown, which is worth here at the extent but eight and four pence. This would, therefore, have been two per cent advance, with a saving of time, freight, and insurance; and, although a very large sum could not have been negotiated during the winter, perhaps not more than one million five hundred thousand livres, yet that would have enabled me to go on making the preparatives for an early and vigorous campaign, and kept everything in train, till some money could have been either shipped from Europe, or so negotiated as to be sent hither from Havana.
I will take no notice of what is said in the letter now before us, as to the error of six thousand livres, because you must at once perceive how little it was an object of conversation, and how easy to be remedied by any clerk, without waiting either orders or instructions from the Court; and because you must also perceive the material omission of four million livres, which cannot be overlooked, let the calculations be combined as they may. I have not, however, the less concern about it, because so rigid an adherence to so palpable an error leads me to fear a design, which the generous conduct of the King will not permit me to suspect.
Having already given my sentiments as to the interest of Loan Office certificates, I will not now repeat them. As to the replacing the Marquis de Lafayette's cargo, it is a matter which I will not seriously contend about, because, although there will not be use for all the articles, there certainly will for many of them; and therefore I hardly think a representation on that score necessary, because there is no use in multiplying disagreeable considerations. But, by the way, I must observe, that it is a little extraordinary this cargo should have been replaced out of the loan to have been opened, &c. at your request, while at the same request money could not be obtained to pay the bills drawn by the order of Congress, as appears from your letter, and that from the Count de Vergennes, which is enclosed in it. The idea of making advances for any individual State from the funds of the United States, must never be admitted by any servant of Congress. It will be quite time enough to do that, when they shall have complied with the several requisitions made upon them, and when they shall have intrusted these subaltern negotiations to the Ministers whom Congress have appointed. Such advances stand on a very different ground, indeed, from those made for purchasing a like cargo to that of the Lafayette; and it cannot be expected, that they should be passed to the account of Congress. Besides this, the successes to the southward have rendered succors of that sort unnecessary. What has already been said will render observations on the letters of the 26th instant unnecessary.
On the whole matter, I have to request your exertions to have this affair settled as soon as possible, and that you will cause the whole of what remains to be paid over to Messrs Le Couteulx & Co. sending me notice thereof by every opportunity, that I may attend to the disposition of it. I mean, nevertheless, that a reservation should be made of what is necessary, to purchase the articles mentioned in the enclosed invoice of the Board of War. I wish you to have as little trouble as possible in this business, and, therefore, I am to request you to employ in it Mr Barclay, our Consul General, and Mr Matthew Ridley. They are both gentlemen of knowledge and integrity, and I doubt not will perform it with economy and expedition.
You will also be pleased to take arrangements with the Minister of Marine, and give your consequent orders to those gentlemen, so that all articles of every sort and kind, which are the property of the United States, and now in Europe, may come under safe convoy to this port. The Marquis de Lafayette, who is charged with the General's instructions on military subjects, will assist in combining matters, so as to accomplish these objects. I confide, Sir, that your wisdom and his vivacity will produce the most beneficial consequences.
Let me add, while I mention the depositing all which remains due to us with Messrs Le Couteulx & Co., that I wish you, in conformity to the Act of Congress enclosed, to pay the sum of fortytwo thousand one hundred and eightynine livres therein mentioned, with the interest, to William Lee. Let me also mention my desire, that you would retain two millions two hundred thousand livres to pay interest bills drawn from the 1st of September to the 1st of April next. I will take such arrangements as will save you the trouble of doing this business in future, and I mention it here, although the money will come more properly under the head of supplies to be asked from the Court for the ensuing year.
The declarations, that no more pecuniary aid will be afforded to us, are very clear and explicit, but I trust, that these declarations will not be adhered to. The interest bills, as I just now observed, will amount to about two millions livres. You have to pay M. Beaumarchais two millions five hundred and fortyfour thousand livres, and the clothing and stores necessary will amount to four millions livres. Besides all this we must have money, so that it will become necessary to obtain at least twelve millions. When I mention this sum, I take the lowest, and I do it from my sincere desire not to burden the finances of France with American demands; but I think such clear reasons can be assigned for it as must produce conviction.
You have a copy of my letter to the Chevalier of the 3d instant upon this subject. You will have observed, that my circular letter of the 19th of October, which was enclosed in this of the 3d instant, is so formed as to lower the expectations of the several States, and accordingly the account sent with it is framed from the erroneous one before mentioned, and the four millions are totally omitted. The languor of the States had been so fostered by their teeming expectations from France, that it became my duty to prevent if possible the ill effects of it. But on the other hand, a circular letter could not but be public, and it necessarily contained such matter as must stand in the way of procuring a proper settlement of past accounts with the Court, or of obtaining future supplies from them. I, therefore, communicated that letter to the Minister, and as he very naturally asked a copy, I took the first opportunity, after the many necessary copies could be made out, to send it with mine of the 3d instant. This contains, as you will perceive, some short reasons why we want, and why France should grant, pecuniary assistance. The answer to it of the 4th instant, and my reply of the 6th, close the correspondence on that subject.
This last was intended to take off from the force of those observations, as to the King's wisdom and integrity, which had rather more of republican simplicity, than courtly elegance. As my letter of the 3d was not intended to convince the Minister, that being unnecessary, as I am persuaded the conviction was already produced, but to prevent any improper conclusions from my circular letter, so it was unnecessary to make any particular reply to his observations, because, after all a paper argument in Philadelphia can have but very little influence at Versailles; and as the Chevalier observed very properly in one of his letters, the instructions from his Court must necessarily form the basis of his opinion. The proper and useful mode, therefore, of convincing him, is by stimulating them.
Knowing as I do the great force and compass of your talents, I should not presume to add one word of remark on the Chevalier's letter, if I were not convinced, that as it was written for the Court, so it will be necessary to oppose it in some degree by a knowledge of facts, which may not be in your immediate view. He takes it for granted, that the people will make extraordinary efforts, in consequence of their successes, and I will readily admit that they have the ability and ought to have the inclination; but they must differ much from former experience, if they do exert themselves. I will admit that their rulers ought to urge them into activity, but it must be remembered, that those rulers are themselves of the people, that their ideas and views are limited, and that they act like the people rather from feeling than reflection. I speak here of the several Legislatures, for I must repeat again and again, that our general system has not grown into that form and vigor, which can communicate the impulses of a sovereign mind to the remotest members of subjected power. I will admit that a Monarch, would on so brilliant a success, call into action, all which his kingdom possessed of strength and resources; but America is not under monarchical government. I will admit further, that if the object of the war was conquest, instead of security, every victory would give new animation to all the members of our republican confederacy; but this war is not carried on for conquest. While it rages in any quarter it makes food for itself. The inroads of the enemy create opposition. An application is then made immediately to the feelings of the people; but when the inroad ceases, when the enemy retires, the storm subsides, each man returns to his domestic pursuits and employments, and thinks no more of the scenes, which had just passed before him. It is true that this is only changing the field of battle. But America is so extensive, that a shock given at one extremity is lost before it reaches the other.
This true picture of our country, while it demonstrates the impracticability of subjecting it, explains the reasons why our exertions have always disappointed both our friends and our enemies. If then, as the fact is, the mere change of position at the option of the foe can so lull our people to rest, how much more are we to expect it will follow from the capture of a considerable part of his force. To reason rightly on the late events, we must admit the ability to make greater exertions, and then seek the means of calling them forth. This, Sir, can only be accomplished by pecuniary aid. The Chevalier observes that the King's obligations to us have been exceeded. This is but a narrow idea. If the King is engaged to support the war until our Independence is established, his simple object of inquiry will be, how that can be speedily and cheaply accomplished? It is certain that America ought to do everything in her power, and you may assure the Court, that Congress and the servants of Congress are sensible of this duty and determined to comply with it. But it is in vain to think of breaking the bounds of possibility, and equally vain to think of changing the nature of man.
Let me add, that there is little propriety in reproaching Americans with faults inseparable from humanity. Besides this, the exertions of our country have really been very great, and as soon as more consistency shall have been put in the administration, they will again be great; but this is the period of weakness between the convulsive labors of enthusiasm and the sound and regular operations of order and government.
There is in the end of the Chevalier's letter a hint in relation to our commerce, which although it does not immediately apply to the present purpose, must not pass unnoticed. That an indirect commerce has taken place with England is true, and that France has in a great measure been the cause of it is equally true. Men will naturally buy where they can obtain things most cheaply. The prime cost of goods, though a great object in time of peace is not equally so in time of war. The freight and the insurance are then so high that a small difference of danger or convenience will counterbalance a great difference of price. When France, by subscribing to the principles of the armed neutrality, gave her enemy the means of bringing her manufactures in safety to our neighborhood, she tempted our merchants to buy those manufactures. She added the motives of interest to the force of habit, and ought not, therefore, to be surprised that such cogent principles have had effect. One mode remained, that of convoying the trade between France and America, and that mode has been neglected. I am happy, however, to observe, that this British commerce is dwindling very fast. The war with Holland has given it one deadly blow, and if our privateers are once more freed from the shackles too hastily imposed upon them, I cannot doubt, but that the trade of this country will flow directly to France, as indeed it ought to do.
And now, Sir, before I close this letter, let me make one further observation with respect to the future supplies from his Majesty. To solicit them is considered as asking for assistance in a war, whose object is of the last importance to us. This is the point of view in which I have placed it, and in which I am desirous it should stand. But there is another method of looking at it, and, although delicacy will forbid us so to present it, yet you may depend upon it, that there are many, who have taught themselves to reason about it in a different way from what you or I would wish. Whether Britain will acknowledge our independence is a question, which is to be answered only with some modifications. If, in consequence of such an acknowledgement, we would forego our connexion with France, there is no manner of doubt, but she would make it immediately. This would on our part be wrong, and therefore it ought not to be done; but, Sir, when this great object shall be presented on the one side, and the weight of new and great taxes be felt on the other, with all their ancient prejudices and predilections in aid, will not there be some men who, for the shades of ease, will quit the paths of virtue?
I have the honor to be, &c.
ROBERT MORRIS.