TO B. FRANKLIN.
Office of Finance, February 13th, 1784.
Dear Sir,
I have written to you, under yesterday's date, on a very interesting subject; and I will now add something farther, which I did not choose to place in that letter, as a copy of it is transmitted to the Houses in Holland. And, first, I will give you an account of my situation, as accurately as possible, in order that (seeing the whole state of my engagements, and the means of fulfilling them) you may rest at ease under the operation I have requested, and which I must now most strongly urge and entreat you to engage in.
My present actual engagements are threefold, viz., first, general engagements for the public service not yet satisfied, including therein the notes issued by me, which remain in circulation; secondly, my bills of exchange unpaid; and, thirdly, my debts to the national bank.
The first of these it is difficult to ascertain with exactness, for I take into the account all payments to be made for past services and the like, and I set against it sundry sums to be received, and the public goods which are yet to arrive. It cannot be expected, therefore, that any great precision will take place in this estimate, but from the clearest insight I have, the amount is rather under than over one hundred thousand dollars.
The second stands thus. I drew for a million of guildders, of which, calculating the extent, not more than one half remains unprovided for, as I have observed in my letter of yesterday. This half may be considered as of the value of two hundred thousand dollars. Besides this sum, I have drawn three bills of two hundred and fifty thousand guilders each, and one of one hundred thousand guilders, for which I have received three hundred and forty thousand dollars; but as I have agreed that those bills shall not be protested, they are not to be carried to the account of bills of exchange.
My debt to the national bank is the above sum of three hundred and forty thousand dollars, obtained from them by discounting notes received for the bills of exchange, and which notes they will continue on interest, until taken up by my payments here, or by my moneys raised on the drafts of the parties who gave them, should my bills be eventually paid in Europe.
In this calculation you will perceive, that I make no mention of any moneys which I suppose to be in the hands of Mr Grand, because, for the greater certainty, I will on the present occasion consider them as equal to answer for contingencies only. And on the other hand, I will not calculate the interest to arise on moneys borrowed in Europe, because although that object may be stated as of the value of from one hundred and fifty to two hundred thousand dollars, yet to answer it, I place first, the general system of funding the public debts, and secondly, whatever small sums may arise on the Dutch loan, supposing it to have no success worth counting on for other purposes.
Hence, therefore, we will state the account as of the first of the present month thus,
| Balance due for past services, | $100,000 |
| Due for bills of exchange drawn, | 200,000 |
| Due to the national bank, | 340,000 |
| ———— | |
| 640,000 | |
| Add for contingencies, | 10,000 |
| ———— | |
| $650,000 |
We come now to the means of making payment; after rejecting all hope of any material aid from the Dutch loan. And they are as follows. The taxes for the last four months, ending the 31st of January, amounted to somewhat more than two hundred thousand dollars. Towards these taxes, the States of Delaware, North Carolina and Georgia, have as yet paid nothing. Neither is there anything paid by the State of South Carolina within the account of those months. The States of New Hampshire, Connecticut, New York, Maryland and Virginia have paid very little, in proportion, to their present ability, and the other four States will all, by the extension of peace and commerce, be in better circumstances for revenue than they were before.
From the States of New York, Maryland, Virginia and South Carolina, I expect to derive very considerable relief; particularly from the first, by a proposed sale of confiscated lands. However, I shall (after deducting from the probable increase of the revenue so much as may pay the current expenditures) calculate the surplus and the proposed sales of lands, as amounting to no more than two hundred and fifty thousand dollars, by the end of next September. This then will place the sum unprovided for at the amount of four hundred thousand dollars, and the fund to pay it at fifty thousand dollars per month. That fund will discharge the first article above mentioned, by the end of March; and the next thing to be provided for, is the two hundred, to answer bills of exchange drawn.
The intended provision for that object is as follows; I shall borrow immediately one hundred thousand dollars of the bank, and direct purchases of tobacco and rice, partly with cash, partly on credit, and partly by bills drawn on me. By this means, I can with that one hundred thousand dollars have the purchases made in all March and April, so that the shipments to the required amount of two hundred thousand dollars will take place, some in March, some in April, and all of them I hope by the end of May. The taxes during April and May, will pay the purchases on credit, and the bills drawn on me; and the taxes in June and July will pay the hundred thousand dollars due to the bank. By the end of September, therefore, I may calculate on a full discharge of all these debts.
If the loan should meet with success, my relief will be more speedy; but you will see, Sir, from this detail, what is most important to you, viz; that the funds will be placed in Europe during the months of June and July, to pay the half million of guilders, which I desire you to provide for. I suppose the mode of circuitous negotiations to be very familiar with your bankers, but I would hint at the following as practicable. Suppose the Houses in Amsterdam to draw in the month of March on Mr Grand, at sixty days' sight; Mr Grand might in May draw, on a good House in London for his full reimbursement, and the House in London might, in like manner, reimburse on Messrs Le Couteulx & Co. by which time the remittances would arrive. Or the time might be still farther extended, if the House in London should reimburse on Messrs Wilhelm and Jan Willink, and they on Messrs Le Couteulx. Or the last bills might perhaps be drawn on Mr Grand instead of Messrs Le Couteulx. However, supposing that the credit of those gentlemen might be useful, I have requested them to aid your operations, should you think proper to ask their aid.
And now, my Dear Sir, let me before I close this letter, entreat of you most earnestly, that the public credit just beginning to revive be not totally lost for a want of an effort, which is but nothing in comparison with what we have already experienced, and passed through with success.
With very sincere esteem, yours, &c.
ROBERT MORRIS.