Life and Times of Washington, Volume 2 / Revised, Enlarged, and Enriched

by John Frederick Schroeder; Benson John Lossing

Intelligence of this mutiny was communicated to Washington at New Windsor before any accommodation had taken place. Though he had been long accustomed to decide in hazardous and difficult situations yet it was no easy matter in this delicate crisis to determine on the most proper course to be pursued. His personal influence had several times extinguished rising mutinies. The first scheme that presented itself was to repair to the camp of the mutineers and try to recall them to a sense of their duty, but on mature reflection this was declined. He well knew that their claims were founded in justice, but he could not reconcile himself to wound the discipline of his army by yielding to their demands while they were in open revolt with arms in their hands. He viewed the subject in all its relations and was well apprised that the principal grounds of discontent were not peculiar to the Pennsylvania line, but common to all the troops.

If force was requisite he had none to spare without hazarding West Point. If concessions were unavoidable they had better be made by any person than the Commander-in-Chief. After that due deliberation which he always gave to matters of importance he determined against a personal interference and to leave the whole to the civil authorities which had already taken it up, but at the same time prepared for those measures which would become necessary if no accommodation took place. This resolution was communicated to Wayne, with a caution to regard the situation of the other lines of the army in any concessions which might be made and with a recommendation to draw the mutineers over the Delaware, with a view to increase the difficulty of communicating with the enemy in New York. The result, however, showed that this last was an unnecessary precaution.

The success of the Pennsylvania troops in exacting from their country by violence what had been denied to the claims of equity produced a similar spirit of insubordination in another division of the army. On the night of the 20th of January (1781), about 160 of the Jersey brigade, which was quartered at Pompton, complaining of grievances similar to those of the Pennsylvania line and hoping for equal success, rose in arms, and marched to Chatham with the view of prevailing on some of their comrades stationed there to join them. Their number was not formidable and Washington, knowing that he might depend on the fidelity of the greater part of his troops detached Gen. Robert Howe against the mutineers, with orders to force them to unconditional submission and to execute some of the most turbulent of them on the spot. These orders were promptly obeyed and two of the ringleaders were put to death.

Sir Henry Clinton, as in the case of the Pennsylvanians, endeavored to take advantage of the mutiny of the Jersey brigade. He sent emissaries to negotiate with them, and detached General Robertson with 3,000 men to Staten Island to be in readiness to support them if they should accede to his proposals, but the mutiny was so speedily crushed that his emissaries had no time to act.

The situation of Congress at this time was trying in the extreme. The contest was now one for very existence. A powerful foe was in full strength in the heart of the country; they had great military operations to carry on, but were almost without an army and wholly without money. Their bills of credit had ceased to be of any worth; and they were reduced to the mortifying necessity of declaring by their own acts that this was the fact, as they no longer made them a legal tender or received them in payment of taxes. Without money of some kind an army could neither be raised nor maintained. But the greater the exigency the greater were the exertions of Congress. They directed their agents abroad to borrow, if possible, from France, Spain, and Holland. They resorted to taxation, although they knew that the measure would be unpopular and that they had not the power to enforce their decree. The tax laid they apportioned among the several States, by whose authority it was to be collected. Perceiving that there was great disorder and waste, or peculation, in the management of the fiscal concerns they determined on introducing a thorough reform and the strictest economy. They accordingly appointed as treasurer Robert Morris of Philadelphia, a man whose pure morals, ardent patriotism, and great knowledge of financial concerns eminently fitted him for this important station. The zeal and genius of Morris soon produced the most favorable results. By means of the "Bank of North America," to which in the course of the year he obtained the approbation of Congress, he contrived to draw out the funds of wealthy individuals. By borrowing in the name of the government from this bank and pledging for payment the taxes not yet collected, he was enabled to anticipate them and command a ready supply. He also used his own private credit which was good though that of the government had failed, and at one time bills signed by him individually, were in circulation to the amount of $581,000.

The establishment of a revenue subject to the exclusive control and direction of the Continental government was connected inseparably with the restoration of credit. The efforts, therefore, to negotiate a foreign loan were accompanied by resolutions requesting the respective States to place a fund under the control of Congress which should be both permanent and productive. A resolution was passed recommending the respective States to vest a power in Congress to levy for the use of the United States a duty of five per centum ad valorem on all goods imported into any of them, and also on all prizes condemned in any of the American courts of admiralty.

This fund was to be appropriated to the payment of both the principal and interest of all debts contracted in the prosecution of the war, and was to continue until those debts should be completely discharged.

Congress at that time contained several members who perceived the advantages which would result from bestowing on the government of the nation the full power of regulating commerce, and consequently, of increasing the imports as circumstances might render advisable; but State influence predominated and they were overruled by great majorities. Even the inadequate plan which they did recommend was never adopted. Notwithstanding the greatness of the exigency and the pressure of the national wants, never during the existence of the Confederation did all the States unite in assenting to this recommendation, so unwilling are men possessed of power to place it in the hands of others.

About the same time a reform was introduced into the administration the necessity of which had been long perceived. From a misplaced prejudice against institutions sanctioned by experience all the great executive duties had been devolved either on committees of Congress or on boards consisting of several members. This unwieldy and expensive system had maintained itself against all the efforts of reason and public utility. But the scantiness of the national means at length prevailed over prejudice, and the several committees and boards yielded to a secretary for foreign affairs, a superintendent of finance, a secretary of war, and a secretary of marine. But so miserably defective was the organization of Congress as an executive body that the year (1781) had far advanced before this measure, the utility of which all acknowledged, could be carried into complete operation by making all the appointments.

The war had continued much longer than was originally anticipated, and the natural resources of the country, mismanaged by the inexperience of the government and its ignorance of the principles of political economy were so much exhausted that it became apparent the war could not be carried on without a foreign loan and France, sufficiently embarrassed with her own affairs, was the only country to which Congress could look for pecuniary aid. Accordingly, Lieutenant-Colonel Laurens, who had been one of Washington's aids, was employed on this mission, and besides endeavoring to negotiate a loan was instructed to press on the French monarch the advantage of maintaining a naval superiority in the American seas. While the energies of America were thus paralyzed by the financial difficulties of Congress, the mutinous spirit of part of the army and the selfishness and apathy of several of the States, the British interest in the Provinces seemed in a prosperous condition. General Greene, as we shall presently see, was maintaining a doubtful and hazardous struggle against Cornwallis on the northern frontier of North Carolina. A British detachment from New York had made a deep impression on Virginia where the resistance was neither so prompt nor so vigorous as had been expected from the strength of that State and the unanimity of its citizens.