The Diplomatic Correspondence of the American Revolution, Vol. 07

by Unknown

Dear Sir,

The derangement of our money affairs, the enormity of our public expenditures, the confusion in all our departments, the languor of our general system, the complexity and consequent inefficacy of our operations; these are some among the many reasons which have induced Congress to the appointment of a Superintendent of Finance. I enclose you copies of their resolutions on that subject, with such other papers as will fully explain to you my appointment and powers.

The use of this office must be found in a progress towards the accomplishment of these two capital objects, the raising a revenue with the greatest convenience to the people, and the expenditure of it with the greatest economy to the public.

The various requisitions of Congress to the several States, none of them entirely complied with, create a considerable balance in favor of the United States, and the claiming this balance is delivered over to me as revenue; while on the other hand, the dangerous practice of taking articles for the public service and giving certificates to the people, has created a very general and a very heavy debt. The amount of this debt is swelled beyond all reasonable bounds, nor can the extent of it be at present estimated. These things need no explanation, but it may be proper to observe, that if the certificates were not in my way, there is still an infinite difference between the demand of a balance from the States, and an effectual revenue. The latter can be obtained only in consequence of wise laws generally adopted, and as generally executed with vigor and decision. Were all that is necessary on these heads accomplished, something further would still remain to be done, in order that the produce of taxes should he subject to the sole and absolute disposition of the United States, or of their officers. To you who are acquainted with republican governments, it is unnecessary to observe on the delays which will arise, the obstacles which will be raised, and the time which will be consumed, in placing the revenue of America on a proper footing. Yet this is absolutely necessary before credit can be established, and the indispensable supplies obtained on terms of economy.

To reform our expenditure is an object of equal importance with the other, and it is in some degree within my power, as you will perceive it to have been subjected to my authority. But even here I find myself trammeled by the want of necessary funds. To contract, for instance, with any one, in order to obtain bread for our troops, requires the previous certainty of being able to make the stipulated payments. And so in every other case, I shall be unable to act with decision, unless I have the command of money. On the other hand, the people will bear with great reluctance the necessary imposition of heavy burthens, while they can perceive any want of arrangement, method, or economy, in the administration of their affairs.

If for a moment we suppose, that this country, amid the confusions of a revolution, and the rage of war, could be governed with all the regularity, wisdom, and prudence, of ancient and peaceable nations; yet we must be convinced, that no annual revenue she is able to raise could equal the annual expense in an offensive war against so powerful a nation, as that which we now contend with. A great balance, therefore, must remain, and it must be provided for by loans or subsidies.

To expect loans within the United States, presupposes an ability to lend, which does not exist in any considerable number of the inhabitants. The personal property, not immediately engaged, either in commerce or the improvement of lands, was never very considerable. Little as it was, it has been greatly diminished by the pernicious effects of a depreciating medium. This expedient, which was adopted in the beginning from necessity, and too pertinaciously adhered to in the sequel, has not only exhausted the funds of those who might have been willing to trust the United States, but it has so wounded our public credit, that even the will would be wanting if the ability existed, which as I said before, it really does not.

While we have neither credit nor means at home, it is idle to expect much from individuals abroad. Our foreign credit must be nurtured with tenderness and attention before it can possess any great degree of force, and it must be fed by substantial revenue, before we can call it into active exertion or derive beneficial effects from its application.

All reasonable expectation, therefore, is narrowed down to the friendly interposition of those sovereigns, who are associates in the war. From Holland, we can properly ask nothing; nor is she, I believe, in a capacity to grant it if we did ask. The active efforts of France require all the resources of that great nation, and of consequence the pecuniary aid which she affords us can but little advance the general cause, however it may relieve our immediate distress.

We must then turn our eyes to Spain, and we must ask either loans or subsidies to a very considerable amount. Small sums are not worth the acceptance. They have the air of obligation without affording relief. A small sum, therefore, is not an object to the United States, for they do not mean to beg gratuities, but to make rational requests.