TO THE GOVERNOR OF RHODE ISLAND.
Office of Finance, October 24th, 1782.
Sir,
My circular letter of the 23d instant, contains the estimates and requisitions for the service of the year 1783. I must take the liberty to make a few observations on them, which apply particularly to the State of Rhode Island. In the letters to Congress of the 29th and 30th of July last, copies of which were transmitted in my circular letter of the 12th of September, I have so fully expressed my sentiments on the subject of credit and loans, that I shall not repeat them. Your Excellency will perceive, that in the Act of the 16th instant, although the estimates amount to six millions, yet only two are required and that further requisitions are suspended until the result of measures for obtaining loans shall be known. It is unnecessary to mention, that Congress have directed an attempt to borrow four millions.
The propriety of this step will be self evident, when the date of their requisitions for the present year is considered. The sums brought in from the several States being regularly published in the gazettes, will spare me the pain of repeating them. I say the pain, because every such repetition will have, in some degree, the air of reproach. It must be remembered, that the duration of the war does not depend upon Congress. This is an invaded country; invaded for the purpose of conquest. And between opposition and submission there is no middle line. The idea of submission is, and ever ought to be, rejected with disdain. Opposition, therefore, becomes a matter of necessity; and that opposition involves expense.
There is then a certain degree of expense that cannot be avoided. And this must be provided for. The estimates being formed under the idea of money in hand to pay for services required, they are stated as low as possible. It appears, therefore, that the six millions mentioned in the estimates must be had. It appears from the experiments already made, that the people are either unwilling or unable to pay the whole in taxes; and whether want of power or inclination be the true cause, is immaterial to the present inquiry, for the fact is clear. Now there are but four modes of obtaining the supplies. Either they must be given to us, or lent to us, or raised by taxes, or taken by force. As to the first, we can place no dependence on it; and as to the last, it is neither the most constitutional, the most economical, nor the most pleasing way. Necessity may justify it, but it will be very difficult to justify the necessity. The supplies, therefore, must be obtained by loans or taxes; so that if they cannot be obtained by loans, taxation is the only resource; and in that case, there is no medium between legal taxation and military collection. For if we will not submit to Great Britain, we must carry on the war; and if we carry on the war, we must obtain the means; and if we cannot get the means abroad, we must provide them at home; and if we do not provide them by law, they must be taken by force.
The inattention of the States to the requisitions of the United States, leaves Congress no choice between loans and military collections. Whether they can obtain loans must depend upon other people. They cannot obtain loans without credit, and they cannot have credit without funds; and they cannot get funds without the concurrence of the States. They must ask that concurrence before they can obtain it, and they must determine on the funds before they can ask. The making yearly requisitions of quotas to pay the interest of public debts will not do. It is in itself a futile measure; but if it were the best thing in the world, yet if those who are to lend do not think so, there is an end of the matter. Now the fact is, that nobody will lend upon the promise of such requisitions. And truly the compliances made with those for carrying on the war, give very little encouragement. It follows then, that Congress must ask for particular funds. They have asked for one, and it is not complied with by two States out of thirteen. Shall Congress then adhere to the demand; or shall they change their application? If they should change it, could they expect that there would not then be one or two opposing States? To answer the question let it be inquired, what objects of taxation can be devised, to which exceptions cannot be made? Surely there are none.
Let it be inquired next, whether there is any object so unexceptionable as that which they have fixed upon? The answer is, no. It follows then, that in changing the application, there would be less prospect of success than at present. Congress then must adhere to their requisitions; and if that fund be not granted, we cannot expect loans. But it is demonstrated by experience, that we cannot get sufficient taxes. We certainly cannot get rid of the war, and therefore the people must have their property taken by force. The necessity will justify this. But as I said before, who will justify the necessity? Surely the authors of it should think of that in season.
Will it be a sufficient justification, to say that the demand of Congress is unconstitutional? If a thing be neither wrong nor forbidden it must be admissible. Such a requisition is nowhere forbidden, and therefore it is admissible if it be not wrong. Now it cannot be wrong to do that which one is obliged to do, be the act what it may. And Congress are obliged to make such requisitions. But further it must be admitted, that they are not contrary to the moral law. Supposing then, for argument's sake, that the thing asked for, would if granted be contrary to the confederation. If so, the grant would alter the confederation. But the grant is not to take effect without general consent. The confederation was formed by general consent, and by general consent it may be altered. The requisition, therefore, if complied with, will by that very compliance become constitutional.
But it may perhaps be suggested, that the five per cent impost will not be sufficient for the object in view. This must be acknowledged, but what inference is to be drawn from thence? Not that Congress should ask for more. Under the circumstances in which they are placed it is difficult to ascertain what line of conduct is to be pursued. If they ask further revenues it may be said, that there is weakness in framing new demands before old ones are complied with. Every fund will meet with some opposition, and every opposition encourages new opponents. The evil presses hard. Public credit is at the last gasp, or rather it is expired. Not only are we to expect a formidable clamor from the abused and injured creditors, but there is really very little hope of obtaining foreign loans. For how can it be expected, that a Republic without funds should persuade foreigners to lend them money, while its own citizens, who have already lent theirs, can neither obtain the interest, nor any solid security, either for interest or principal.
This, Sir, is an object of great magnitude, and one which directly or indirectly concerns every inhabitant of the United States. The critical situation we stand in, has rendered it necessary for Congress to demand a decided answer. No time is to be lost, for if the revenues cannot be obtained, the public creditors must be told so in plain terms. The efforts to borrow further sums must cease of course, and then the whole weight of the war must fall on the people, in one mode or the other. It is a very serious question, whether the little applause, which individuals may gain by specious declamations and publications should over balance every consideration of national safety. This serious and important question your Legislature is now, by the representatives of all America, most solemnly called on to decide.
I am, Sir, with perfect respect, your Excellency's most obedient and humble servant,
ROBERT MORRIS.