TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 17th, 1784.

Sir,

Permit me, through your Excellency, to call the attention of the United States to the situation of my department. During the last year, engagements were made to a very considerable amount for payment of the army. This payment was effected by notes which fell due the end of last year, and the commencement of this. The funds at my disposal were unequal to the discharge of them. I was, therefore, under the necessity of drawing bills on the credit of the loan in Holland. The information I had received from the gentlemen who had the management of it, gave me hopes that funds sufficient to discharge those bills were in their hands; for in the months of April, May, June and July, they had received and distributed obligations for one million one hundred and thirtysix thousand florins. But from causes, which will readily suggest themselves to Congress, that loan, which had taken a rapid start at the peace, began to decline in August and stood still during all November. It has happened, therefore, that bills to the amount of one million three hundred and twentyfive thousand florins, equal at the current exchange to five hundred and thirty thousand dollars, are protested for non-acceptance. Should they come back protested for non-payment, the consequences will be easily imagined.

For about a month past I have been in the expectation, that this disagreeable event would happen, and whether it will or not is yet undetermined. My last advices from the gentlemen who have the management of the loan are in a letter of the 22d of December; by which they tell me, "we are sorry to be obliged to repeat, that since our last till the present moment, our prospects are not very much increased; however, we are not quite without hopes, and have determined, if we cannot do otherwise, to sacrifice some more premium to the undertakers, which if we do, we will charge to the account of the United States. We think ourselves fully authorised to do this by the circumstances; since without the bills going back, it is certain that, besides the disappointment and the discredit it would give to the government bills, the expenses attending the returns will be much more burdensome. We have almost no prospect of getting the money without such a sacrifice, and only hope it will answer your views." Enclosed you have the account current with those gentlemen, as sketched out by the register for information; by which it appears, that they had in their hands a balance of three hundred and fortyseven thousand seven hundred and seventy current guilders on the 31st of October last, and by the subordinate account, number five, it will appear, that my bills exceed that balance by one million five hundred and thirteen thousand two hundred and twentynine florins; but from this a deduction is to be made for some tobacco shipped to them, the account of sales whereof is not yet come to hand. They have, however, accepted of my bills beyond the amount of their funds, and still there are to the value of one million three hundred and twentyfive thousand florins protested for non-acceptance. In order, however, that Congress may possess as full a view of things as possible, I will suppose, for the present, that by making a sacrifice of premium the funds for discharging these bills may be obtained. I must also mention here, to obviate what might be suggested, that the remittances to Messrs Le Couteulx and Mr Grand will be found accounted for in their accounts, but time will not permit going into all those details at present.

Supposing then the funds to be obtained for payment
of these bills, the interest falling due the beginning of
June next, will amount to two hundred thousand florins,
equal at the current exchange to$80,000
By the enclosed state of payments
just received from Mr Grand it will
appear, that on the 5th of November,
there is payable at his House
the sum of one million six hundred
thousand livres, equal at the current
exchange to320,000
———
$400,000

Thus you will find, that on the best supposition which can be made, there is to be paid in Europe during this year four hundred thousand dollars, over and above the salaries of foreign Ministers and their contingent expenses. There is also to be paid the further sum of one hundred thousand dollars, due in this country on engagements taken for the public service during the last and present year, besides notes in circulation, which may probably be absorbed by the taxes, between this and the 1st of May next. Thus there is a deficiency of half a million to be provided for by the taxes from the 1st of May, to which must be added sundry debts of the last year not yet adjusted, and which cannot therefore be estimated, but which may amount to between one and two hundred thousand dollars more. And to all this must be added the current expenses, which Congress will best be able to ascertain.

This, Sir, is a view of things upon the fairest side, but if the bills noted for non-acceptance come back, a scene will then be opened, which it is better for you to conceive than for me to describe. The delay of the States in passing the laws for granting revenue to fund our debts has left the above mentioned sum of four hundred thousand dollars totally unprovided for; and I cannot see the least probability that this general concurrence will be obtained in season to make that provision. I beg leave, therefore, to suggest the expedient that the produce of the requisitions for 1782 and 1783 be partly appropriated to that payment, and that the money be replaced from the proper funds when obtained. But whatever mode may be adopted, Congress will doubtless be struck with this truth, that unless the States can be stimulated into exertion, and that speedily, everything must fall into confusion. I will not pretend to anticipate the evil consequences. Having stated the facts I have done my duty.

I must, however, pray a moment's indulgence to mention, that the accounts of the last year would have been rendered by this time, but as I have not relinquished the hope of being able to quit this office soon, I have rather desired to be able to complete all the accounts of my administration. It will give me infinite pleasure, if, when I have the honor of presenting to Congress these accounts with my commission, I shall find them in circumstances as prosperous as those under which I accepted it were adverse.

I am, Sir, &c.

ROBERT MORRIS.