The Diplomatic Correspondence of the American Revolution, Vol. 12

by Unknown

The low state of public credit, for the want of solid funds to support it, had induced the United States in Congress, to call for an impost of five per cent on all goods imported, and on all prizes and prize goods, to be granted for the payment of the principal and interest of the debts contracted, or which might be contracted, during the present war. Some of the States had complied with this demand. The two more Southern States were in such disorder, that a compliance from them could not reasonably be expected; neither was it relied on, as you doubtless have remarked, on reading the resolutions of the 3d of February upon that subject, which must have reached you before this day. On the 27th of July, therefore, I wrote a letter to the States of Massachusetts, Rhode Island, New York, Delaware, Maryland, and North Carolina. I have the pleasure to inform you, that the States of New York, Delaware, and North Carolina, have since complied with the demand of Congress, and I am convinced that they will, in the laudable step, be speedily followed by the other States. In the mean time, we must patiently wait the event. Such things require time, and since we cannot command obedience, we must stay for the assent of conviction.

On the 6th of August, I wrote a letter to the President of Congress, enclosing those already mentioned. On this letter it is necessary to say nothing more, than that it met with the approbation of the several members, who have, I believe, written such letters to their respective States as I desired.

My letter of the 15th of September, to the Governor of Massachusetts, was, as your Excellency will perceive, although the settlement of past accounts is mentioned in it, written in answer to his of the 23d of August, in which he tells me, that he will lay the business of the impost law candidly before the Legislature, but thinks it will go heavily through. I shall add nothing here to what is said in that letter.

My letter of the 20th of September to the Assembly of Pennsylvania, was written so particularly, in consequence of the authorities they had confided by their resolutions. I wrote to you respecting these resolutions, and my plans founded on them, the 21st of July, and I just mention here, by the way, that this plan has not been in any degree executed, for reasons not necessary to be at present enlarged upon. My letter to the Assembly of Pennsylvania, with the enclosures referred to in it as accounts of which I send you copies, will need no explanation, unless it be to mention that this State had issued one hundred thousand pounds, secured with interest on certain lands near the city, which is now nearly paid by the sales of these lands, and five hundred thousand pounds more not bearing interest, which was funded upon the Land Office, the dues to which were estimated at a much larger sum. I have sent this letter, as also my private letter of the 16th of October, to Governor Nelson, merely that you may be well apprized of the incessant attention, which is paid here to call forth our own resources. I might have added many other letters to particular States on particular occasions, but I dare say you will find this letter sufficiently voluminous.

Before I quit this subject of the past requisition of Congress, I must add that, notwithstanding my pressing instances, very little hard money has been obtained from the States; not more than one hundred thousand dollars during my whole administration. There has, indeed, been drawn forth some considerable specific supplies of provision, and there is on hand a great deal of paper money. From the former our army has been principally maintained, and indeed there is a small advance made to the Count de Rochambeau, which I mean to be in part of your promise mentioned in a former letter, and I here repeat to you my determination to comply with it as speedily as any convenience will possibly admit.

As to the paper money, it is of no use, although it is necessary, for evident reasons, to receive it in taxes. But the confidence of the people is so entirely lost, that for the present no bills of credit whatever can be made use of as money. I hope that the taxes laid and collecting in most of the States, will bring in all this useless load by the middle of next summer; and I have some expectation, that the States of Massachusetts, Connecticut, Pennsylvania, and Delaware, will be entirely rid of it by the spring. If I could buy anything with it, I would not, until the last necessity; but it will buy nothing, so that it must be burnt as soon as it honestly can.

The picture I have already given of this country will not be pleasing to you. Truth bids me add, that it will admit of a higher coloring. But what else could be expected from us? A revolution, a war; the dissolution of government, the creating of it anew; cruelty, rapine, and devastation in the midst of our very bowels. These, Sir, are circumstances by no means favorable to finance. The wonder, then is, that we have done so much, that we have borne so much, and the candid world will add, that we have dared so much. I could take up much of your time in recapitulating many less matters, which have tended to weaken the exertions we have otherwise been capable of. The confused state of public accounts, and the deplorable situation of credit for want of funds to secure, or means to redeem, the debt, for which the public faith is pledged, are, however, of such important operation, that I must not pass them over in silence.

In the enclosures your Excellency will have perceived, that I have noticed the effects, which follow from the want of a final settlement of accounts. Representations on the subject of these accounts, and also of certificates given by public officers in the Commissary's and Quarter Master's Departments for articles taken from the people had been made by some of the States to Congress. The impost asked for by Congress was, I have already observed, for the funding of our debts. On the 13th of October, I wrote a letter to the several loan officers, in which I expressly prohibit the issuing of any more Loan Office certificates. The reason for this order will appear more clearly from the latter part of my letter to the several Governors of the 16th of October.

I do hope and expect, that some methods will speedily be adopted by the United States in Congress assembled for settlement of the public accounts, as also to liquidate the several certificates given by the public officers, and to provide revenues for funding the public debts. The last of these objects must not, however, be urged with too much rapidity. The impost law is not yet passed, and is the first step. When that shall have been taken, it will give room for urging what further may be necessary. In the meantime, there is a well grounded expectation, that the clamors of our creditors will induce the several Legislatures to comply with the requisitions of Congress upon that subject.

From what has been said, your Excellency will perceive, that the prospect of future supplies from the several States, is by no means very brilliant. I send you the Act of Congress of the 29th of October, calling for eight millions of dollars, the Act of the 2d instant apportioning that demand among the several States, and the Act of the 12th instant, repealing (in consequence of my letter of the 5th) a part of the Act of the 2d. My circular letter of the 17th, enclosing those Acts to the Governors, will close what I have to say on the subject. But I must observe to you on my letter of the 5th to the President of Congress, that although it is strictly true, that I had not seen the estimates as mentioned in that letter, yet it is equally true, that until the business was nearly completed, I was supposed to have seen them, and when the contrary was suggested, they would have been sent from Congress, but that so few States were represented, as that only the number absolutely necessary to pass such requisitions were then present, and some of the representatives of those few were about to depart, wherefore it was waved. I have further to remark on the estimates themselves, that they are only for the feeding and paying the army. The expense of recruiting that army, of moving it from place to place, the heavy articles of clothing and ordnance, with expense of the hospitals, and the long train, which is comprehended under the title of contingencies, is totally unprovided for. Defective as it is, I have no hope that it will be complied with. The great arrearage of unfunded debt, the cumbrous load of useless paper, the multiplied mass of certificates, the distracted situation of the more southern States, the ravages which have been made in them, the total loss of their commerce, the real want of coin in many States, and the equal want of system in all. These, Sir, are circumstances, which forbid the most sanguine temper to expect a full compliance. It shall be my business, as it is my duty, to get as much as I can, and for this purpose, I shall make compositions; where it is necessary, take articles of provisions in lieu of money and the like. Still, however, I am convinced, that I shall not get what is asked for, and indeed I do not expect any part of it, before the middle of next campaign.