The future ability of the United States to repay any loan which might now be obtained was displayed; and he concluded with assurances that there was still a fund of inclination and resource in the country, equal to great and continued exertions, provided the means were afforded of stopping the progress of disgust, by changing the present system, and adopting another more consonant with the spirit of the nation, and more capable of infusing activity and energy into public measures; of which a powerful succour in money must be the basis. "The people were discontented, but it was with the feeble and oppressive mode of conducting the war, not with the war itself."
With reason did the Commander-in-chief thus urge on the cabinet of Versailles, the policy of advancing a sum of money to the United States which might be adequate to the exigency. Deep was the gloom with which their political horizon was overcast. The British, in possession of South Carolina and of Georgia, had overrun the greater part of North Carolina also; and it was with equal hazard and address that Greene maintained himself in the northern frontier of that state.
A second detachment from New York was making a deep impression on Virginia, where the resistance had been neither so prompt nor so vigorous[68] as the strength of that state and the unanimity of its citizens had given reason to expect.
The perplexities and difficulties in which the affairs of America were involved, were estimated by the British government even above their real value. Intercepted letters of this date from the minister, expressed the most sanguine hopes that the great superiority of force at the disposal of Sir Henry Clinton, would compel Washington with his feeble army to take refuge on the eastern side of the Hudson.
Even congress relaxed for an instant from its habitual firmness; and, receding from the decisive manner in which that body had insisted on the territorial and maritime rights of the nation, directed the American minister at Madrid to relinquish, if it should be absolutely necessary, the claims of the United States to navigate the Mississippi below the thirty-first degree of north latitude, and to a free port on the banks of that river within the Spanish territory. It is remarkable that only Massachusetts, Connecticut, and North Carolina, dissented from this resolution; New York was divided.[69] Propositions to Spain.On a subsequent day, the subject was again brought forward, and a proposition was made for still farther concessions to Spain; but this proposition was negatived by all the states.[70]
Happily for the United States, Mr. Jay, their minister at the court of Madrid, required as the price of the concessions he was instructed to make, that the treaty he was labouring to negotiate should be immediately concluded.
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. Recommendations relative to a duty on imported and prize goods.A resolution was passed, recommending to 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 import as circumstances might render adviseable; 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.
Reform in the organization of the executive departments.