TO OLIVER PHELPS.
Office of Finance, March 30th, 1782.
Sir,
As I promised during the conference, with which you honored me yesterday, to give an answer in writing to the proposition you made in consequence of a resolution passed by the Legislature of Massachusetts, on the 5th day of this month, I shall now perform that promise, but in doing it I shall think it unnecessary to go into that full detail of reasoning on the subject, which took place in conversation between us; and I am the more readily induced to decline this, because you, Sir, seemed satisfied of the force and propriety of the reasons urged; wherefore when you come to make the communication to the State, your candor will induce, and your abilities enable you, to do me ample justice.
I will, therefore, content myself with observing, that in all countries engaged in war, experience has sooner or later pointed out contracts with private men of substance and talents equal to the undertaking as the cheapest, most certain, and consequently the best mode of obtaining those articles, which are necessary for the subsistence, covering, clothing, and moving of an army. The experience of other countries could not satisfy America. We must have it of our own acquiring; we have at length bought it; but the purchase had nearly been our ruin. I had been long since convinced, that nothing could save us, but opening all the American ports to unrestrained commerce, all the markets of America to the free sale and purchase of every article of its production and import; and by taking away all restraints on money, leave every individual to judge and act for himself. I labored hard in consequence of this conviction, to introduce such measures into the State, of which I am a member, and finally was happy enough to succeed; the good consequences were immediately seen and felt; the example, has been followed, and it is to be attributed to the freedom, which we now enjoy, that persons can be found willing to contract for furnishing supplies to the American army.
I have succeeded in obtaining many contracts on very reasonable terms. The saving to the United States thereby is immense, and I am confident, that neither the patriot who fills the chair of government, the honorable gentlemen who compose the council, nor those who represent the country of Massachusetts, would wish me to make an engagement, which in partiality to that State, would in its effects destroy a system, that has been proved so truly economical. I cannot, Sir, enter into the engagements proposed by Massachusetts, without being exposed to similar claims in twelve others, and I feel the absolute necessity and propriety of declining every application of the kind. The persons who contract with me to supply the armies of the United States, must make purchases of the articles necessary; their interests will lead them to those markets, which will supply cheapest, however remote from the scene of action, and this will give all the States a fair chance of obtaining money, or bank notes, through that channel to pay their taxes. Those who will give most labor or goods for money and notes, will undoubtedly obtain the greatest share thereof.
I cannot quit this subject, without observing, that taxing in specifics is expensive to the people, cumbersome to the government, and generally inadequate to the object. I think if every individual in the country is left to dispose as he pleases of his property, and compelled to pay his taxes in money or bank notes, he will satisfy the tax by the sale of much less of that property, than in the case of a specific tax taken from him to raise the sum. Nothing could gratify me more than to have an opportunity of evincing to the State of Massachusetts how much I am disposed to comply with her wishes in every instance, that my general duty to the United States will permit.
I have the honor to be, &c.
ROBERT MORRIS.