By the resolution of the 26th of August, 1780, the States are called on to pay into the treasury by the last day of December then next ensuing, three millions of dollars, of which the quota of Pennsylvania is four hundred and sixty thousand dollars.
By the resolution of the 4th of November, 1780, Pennsylvania is called upon to pay two hundred and seventythree thousand eight hundred and thirtytwo dollars and two thirds, in quarterly payments, commencing the 1st day of May last; and by the resolution of the 16th of March, 1781, Pennsylvania is called upon to pay one million and fiftynine thousand eight hundred and sixtythree dollars, in quarterly payments, commencing the 1st day of June last. All these are payable in the new emission, or specie. Thus the whole of the requisitions will, on the 1st day of March next, amount to one million seven hundred and ninetythree thousand six hundred and ninetyfive dollars and two thirds. Of this sum there appears to have been paid seventeen thousand seven hundred and forty dollars; wherefore, there will still remain a balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds.
By a note from David Rittenhouse, I find that he has in his hands one hundred and thirtyeight thousand nine hundred dollars of the new emission, and fourteen millions one hundred and fortyfive thousand six hundred dollars of the old, in which latter sum, nevertheless, is included some State money received at seventyfive for one, the amount of which cannot be determined until it is sorted and counted; wherefore, the old emission may be estimated at about fourteen millions.
On this state of things, I take the liberty of proposing to the honorable House, that all the old money be immediately paid in, and the new taken out, which will be about seven hundred thousand dollars, and that, with what is now in the Treasurer's hands, will make eight hundred and thirtyeight thousand nine hundred dollars. I further propose, that this be paid to me, as Superintendent of Finance, on account of the above balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds, which will then be reduced to nine hundred and thirtyseven thousand and fiftyfive dollars and two thirds. I further propose, that the remaining sums of old continental, due from the State, be collected and paid as soon as possible, which, besides discharging that demand, will also enable the State to receive the further sum of two hundred and sixty thousand dollars of the new emission, and that, being paid in as before, will still further reduce the balance against the State to six hundred and seventytwo thousand and fiftyfive dollars and two thirds. There are at present in circulation of the new emission three hundred and ninetyone thousand one hundred dollars, which ought certainly to be brought in as soon as possible, and applied to the same purposes already specified; by which means the eventual balance payable in specie, would be two hundred and eighty thousand nine hundred and fiftyfive dollars and two thirds; to which must be added, thirteen thousand three hundred and thirtyfour dollars, required by Congress on the 8th day of January last to be paid in specie; being together one hundred and ten thousand three hundred and fiftyeight pounds, twelve shillings and sixpence. To explain all which more fully, I enclose the accounts, number one, two, and three, to which I pray leave to have reference.
The specific supplies will still remain to be provided for, in order that all the demands of Congress may be fully answered; but I hope that the specie tax now collecting will go a great way towards the accomplishment of this necessary object, and at any rate, as the state of paper, notwithstanding every effort, has not yet appreciated to par, I would propose that no more of it be issued from the treasury, except as equal to gold and silver, and then the collection of the present, taxes will at least prevent any depreciation, and in the meantime, the fund on which it was emitted, become more productive. The next Assembly will be able to take such additional measures as may be necessary, further to raise the value of it. This can only be done by holding it up from circulation, on the one hand, and on the other, by raising taxes, in which the public receive it as equivalent to the precious metals.
It is my determination, as Superintendent, to deposit all the money of the new emission, which shall be received from the several States, in the Continental Treasury, and not to issue one shilling of it, unless compelled by absolute necessity; which, I hope, will not be the case, if the States take measures to pay in the eventual balances.
Whether the House will find it consistent with the situation of their constituents to lay an additional tax this session, is for them to determine; but it is my duty to mention it, which I do from a conviction that it is necessary. They will perceive, that very great arrearages are due, and they must be sensible, that taxation alone can support the public credit, or enable government to carry on the war.
With the greatest respect, I have the honor to be, &c.
ROBERT MORRIS.