TO THE PRESIDENT OF CONGRESS.
Office of Finance, July 18th, 1783.
Sir,
I would sooner have replied to the Act of Congress of the 11th instant, if I had not been prevented by other business, which required immediate attention. The Act recites a representation to Congress, that certain parts of the army retired on furlough have not received the pay, &c. I will not contest the truth of this representation. But when I come to state such facts as are within my knowledge, I shall appeal to the candor of Congress how far that representation will warrant a censure against me.
I am directed to complete without delay the same payment to the officers and soldiers of the Massachusetts line which were ordered to be paid to the army at large. Congress will be pleased to observe, that they have passed no particular order to which the above resolution can refer. The general Acts which relate to paying our army from the authority on which the payment alluded to was made. Supposing, however, that by the resolution is meant three months' pay, in notes payable at six months from the date; I must take liberty to remind Congress, that completing the payment to any part of the army is not the business of my department, but of the Paymaster General. All which can depend on me, is to put those notes into his hands when called for, and this has been done as fast as was possible.
I am directed to report the reasons why the troops lately furloughed did not receive a part of their pay previous thereto. Not being able, Sir, to make so full report on this subject as I could wish, I have written a letter to the Paymaster General, of which the enclosure, number one, is a copy. The answer to this letter shall be transmitted as soon as received. The facts relating to that matter which are within my knowledge are the following.
On the 9th day of April last, a committee of Congress did me the honor to call, for the purpose of consulting on certain propositions contained in a letter from the Commander in Chief to an honorable member from Virginia. One of these propositions was to make the army three months' pay previous to their disbandment. My reply was, an acknowledgement that the claim was very reasonable, a declaration that I doubted of the practicability, and a prayer to be indulged with time for consideration. On the 14th of April I wrote a letter to that committee, in which I had the honor to inform them, that three months' pay amounted, according to the estimates, to seven hundred and fifty thousand dollars. That to supply so large a sum was utterly impracticable, or indeed to obtain any considerable part. That the most which could be done was to risk a large paper anticipation. That to render the arrangements for that purpose effectual in an official point of view would be a work of time. That the period of my official existence was nearly arrived; that disbanding the army in a manner satisfactory to them and the country was doubtless desirable. That I believed it to be practicable, although extremely difficult, and that I should be ready at all times to give my advice and assistance to those who might be charged with that delicate and perilous undertaking.
On the 22d of April, Congress were pleased to appoint a committee to confer with me relative to my continuance in office. I told that honorable committee, that the late advices from Europe gave a new complexion to our affairs, and prayed some further time for the receipt of intelligence. On the 24th of April, I had the honor to inform the committee, that if Congress thought my assistance essential toward completing such payment to the army as might be agreed on, &c. I would consent to a further continuance in office for that purpose; but prayed to be excused from that service if Congress could otherwise accomplish their views.
On the 28th of April, Congress were pleased to resolve, that the public service required my continuance in office till arrangements for the reduction of the army could be made, and the engagements taken in consequence, as well as those already taken, should be completed. On the 2d day of May Congress were pleased to pass some further resolutions on the same subject, which I shall shortly have occasion to mention. On the 3d of May I had the honor to entreat of your Excellency, that you would inform Congress that I entertained a proper sense of their assurance of firm support, and in reliance on them should continue my zealous exertions for the service of the United States.
On the 9th of May, having had a conference with the Minister of War, on the resolutions of the 7th and 28th of April and 2d of May, we took the liberty to request, that a committee might be appointed to confer with us on the subject of those resolutions. On the 15th of May, two gentlemen of that committee did us the honor of the conference requested. In which it was stated, as impracticable to make any payment to the army, unless our expenditures were immediately and considerably reduced. The committee, however, being desirous to have the situation of things stated to them in writing, I wrote them a letter on the same day, showing, that on the last day of April we were in advance of our resources, to the amount of six hundred thousand dollars; that our foreign resources were exhausted; that our domestic resources as far as they consisted in sales of public property, were considerably reduced; that as far as they consisted in the produce of taxes they were extremely slender and precarious; that the monthly consumption of the army was at least double the monthly produce of the taxes; that if they were kept longer in the field, they would consume every resource by which the payment could possibly be made or hazarded. And, therefore, that unless the far greater part of our expenses was immediately curtailed, the object Congress had in view by their resolutions of the 2d of May could not possibly be accomplished. This letter was accompanied with the necessary documents to establish the positions contained in it.
On the 26th of May it was resolved, that the Commander in Chief should be instructed to grant furloughs, &c. And this resolution was communicated to me on the 27th. Thus, Sir, from the 9th day of April, when this matter was first proposed, until the 27th day of May, when the final determinations of Congress were made known, my conduct was of necessity suspended.
On the 29th of May I informed the Commander in Chief of my determination to issue notes payable in six months from the date, for three months pay, and explained to him the reasons why I could not make the payment in any other mode. In reply to this, I received on the 5th of June a letter from the General, dated the 3d, which was brought by express and urged the transmission of a part of those notes. I immediately wrote an answer, in which I informed him that on Saturday evening, the 31st of May, the paper arrived from the maker; that on Monday, the 2d of June, it was delivered to the printer; that he had agreed to send the first parcel of notes to me on Friday, the 6th of June; and that as soon as I could sign them they should be delivered to the Paymaster, to be sent forward. On the 7th of June the Paymaster received fifty thousand dollars, on the 9th fifty thousand dollars, and on the 13th one hundred thousand; so that in six days I signed six thousand notes, besides the other business of my office. That paper made on purpose for this business was necessary no man can doubt, or if it could have been doubted the recent attempt to counterfeit these notes is a sufficient proof. That the printing was to take place before the signing must be admitted. The only delay therefore with which I can be chargeable must be in the signing of them, and upon that subject I shall say nothing. If by any means a delay happened after the notes were delivered into the pay office, I presume that the Paymaster General will be able to account for it. I shall only add, that he has received half a million of these notes, as will appear by the enclosed note of the payments number two.
I am also directed, Sir, to report the manner in which I expect to redeem the notes in question. Congress will be pleased to recollect, that the issuing of those notes arose from a proposition made by the General and warmly adopted by them. That although I was very desirous of gratifying the wishes of the army, I had great apprehensions as to the ability of doing it. And that from a view of the scantiness of our resources I felt extreme reluctance in giving my consent. As to the means of redeeming the notes, permit me to refer Congress to the letters which I had the honor of writing to your Excellency on the 17th of March and 1st of May; to my correspondence with the honorable committee of Congress on the 14th and 16th of April, copies whereof are enclosed in the paper number three; and to a circular letter to the States of the 12th of May, of which a copy is enclosed in the paper number four.
Permit me also to refer to the various accounts which have been rendered to Congress of the state of my department; and to these let me add what appears on their own minutes. On the 2d of May they declared it to be their desire, when the reduction of the army should take place, to enable the officers and soldiers to return to their respective homes with convenience and satisfaction; for which purpose it would be indispensable to advance them a part of their pay. They declared further, that there were many other engagements for which the public faith was pledged, and the punctual performance of which was essential to the credit of the United States. And they further declared, that neither of these important objects could be effected without the vigorous exertions of the several States in the collection of taxes. From a conviction of these facts Congress were pleased to call upon the respective States in the most earnest manner, to forward the collection of taxes. As an additional means to accomplish the same end, they were pleased to apply for a further loan of three millions of livres to his Most Christian Majesty. And they resolved, that the Superintendent of Finance be directed to take the necessary arrangements for carrying the views of Congress into execution. And that he be assured of their firm support toward fulfilling the engagements he has already taken, or may take, on the public account during his continuance in office.
Having already so fully stated the situation of my department, I have only to say in answer to the order I have received, that I rely on the firm support of Congress, solemnly pledged to me (for the purpose of inducing my continuance in office) to redeem those notes issued to the army, as well as to fulfil all other engagements which I have taken or may take on the public account.
Before I close this letter, I beg leave to assign my reason for reducing my report to that form. It is because I had rather bear the censure contained in the acts of the 11th of July, however painful, than place on the minutes of Congress anything which may hold up the idea of precipitancy on their part.
With perfect respect, &c.
ROBERT MORRIS.