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.