The speculation of evils, from the claims of Great Britain, gives way to the pressure of inconveniences actually suffered; and we required the event which has lately happened, the recognition of our independence by the Dutch, to give a new spring to the public hopes and the public passions. This has had a good effect. And if the Legislature can be brought to adopt a wise plan for its finances, we may put the people in better humor, and give a more regular and durable movement to the machine. The people of this State, as far as my observation goes, have as much firmness in their make, and as much submissiveness to Government, as those of any part of the Union.

It remains for me to give you an explicit opinion of what it is practicable for this State to do. Even with a judicious plan of taxation, I do not think the State can afford, or the people will bear to pay, more than seventy or eighty thousand pounds a year. In its entire and flourishing state, according to my mode of calculating, it could not have exceeded two hundred and thirty or forty thousand pounds; and, reduced as it is, with the wheels of circulation so exceedingly clogged for want of commerce and a sufficient medium, more than I have said cannot be expected. Passed experience will not authorize a more flattering conclusion.

Out of this is to be deducted the expense of the interior administration of Government, and the money necessary for the levies of men. The first amounts to about twelve thousand pounds, as you will perceive by the inclosed statement; but I suppose the Legislature would choose to retain fifteen thousand pounds. The money hitherto yearly expended in recruits, has amounted to between twenty and thirty thousand pounds; but, on a proper plan, ten thousand pounds might suffice. There would then remain forty thousand pounds for your department.

But this is on the supposition of a change of system; for, with the present, I doubt there being paid into the Continental treasury one-third the sum.

I am endeavoring to collect materials for greater certainty upon this subject; but the business of supplies has been so diversified, lodged in such a variety of independent hands, and so carelessly transacted, that it is hardly possible to get any tolerable idea of the gross and net product. With the help of these materials I shall strive to convince the committee, when they meet, that a change of measures is essential. If they enter cordially into right views, we may succeed: but I confess I fear more than I hope.

I have taken every step in my power to procure the information you have desired in your letter of July ’81; the most material part of it, an account of the supplies furnished since March seventeen hundred and eighty, has been committed to Colonel Hay. I have written to him, in pressing terms, to accelerate the preparation.

You will perceive, sir, I have neither flattered the State, nor encouraged high expectations. I thought it my duty to exhibit things as they are, not as they ought to be. I shall be sorry if it give an ill opinion of the State, for want of equal candor in the representation of others; for, however disagreeable the reflection, I have too much reason to believe, that the true picture of other States would be, in proportion to their circumstances, equally unpromising. All my inquiries, and all that appears, induces this opinion. I intend this letter in confidence to yourself, and therefore I endorse it private.

Before I conclude, I will say a word on a point that possibly you would wish to be informed about. The contract up this way is executed generously to the satisfaction of officers and soldiers; which is the more meritorious in the contractor, as, in all probability, it will be to him a losing undertaking.

I have the honor to be,
With sentiments of unfeigned respect,
Sir, your most ob’t and humble serv’t,
A. Hamilton.

To the Hon. Robert Morris, Esq.