ROBERT MORRIS.
TO ELBRIDGE GERRY.
Office of Finance, August 26th, 1783.
Sir,
In compliance with your request, I shall not only give the information which appears to have been the object of Mr Clarke's letter, but recapitulate also the observations which I had the honor to make on what you mentioned as the object of the committee. And first, for the information desired, I can answer only in general terms, that I believe the various engagements entered into previous to the end of 1781, were under the faith of requisitions then existing. Since that period, I know of only two requisitions for current service, both of them founded on estimates. The first was of eight millions for the service of 1782, and the second was of two millions, for part of the service of 1783. All the engagements of my administration are on the faith of these latter requisitions.
The first object you mentioned was to alter the mode of settling accounts, so far as the requisitions previous to 1781 are concerned, and only to calculate the actual payments, or advances by the States, with the interest, so that the whole, being formed into one sum, may be afterwards apportioned among the States. To which plan, among other objections, I look the liberty to state the following. First, there is no evident necessity for taking this step, and therefore it will be prudent to omit it; because in such cases government risk every unforeseen danger that may result, and always render their affairs more complicated. Secondly, the measure may be misunderstood, and occasion clamors, which will indispose some to adopt the other measures recommended by Congress; which objection though it ought not to weigh in competition with what is evidently proper and right, must nevertheless be attended to in things of more doubtful complexion. Thirdly, there would arise from it a degree of irregularity; for the particular accounts being now all opened in the treasury books, by the authority of the late Board of the Treasury, it appears most natural to continue them in their present form, until the final settlements. Fourthly, all the information necessary to enable Congress to decide on the accounts when settled will then be in their power; for the accounts will contain, on one side, the compliances of the State with the requisitions, together with all other advances which they have made for the public service, and on the other side will be the amount of the various requisitions. Whenever therefore Congress on such full view of the subject, shall think proper to remit the whole, or any part of the requisitions, entries will be made in the treasury books accordingly. Fifthly, it would be rather premature to make the decision proposed before (by a settlement of accounts) all the proper materials are brought into view; and until the States have adopted the proposed measures for funding the public debts. Because, sixthly, it is conceived that the various requisitions were adequate to the necessary service; and that although it may perhaps be wise eventually to convert the whole expenditure of the war into the form of a debt, in order thereby to prevent the disputes which might arise on the apportionments, still it must be remembered, that this step cannot be taken until funds are obtained. Until that period, therefore, it is perhaps as well to leave the requisitions; if it be only to show the States why they are called on for revenues now, viz. because they would not or could not furnish supplies before. But, lastly, it might prove dangerous under present circumstances to take any step whatever with these requisitions. Only partial compliances have been made. Some States therefore adhere to some requisitions, and some to others, according to the real or supposed situation of their accounts. To go no farther, it would hardly be prudent to hazard a dispute with Massachusetts, by relinquishing the requisitions of March, 1780, or with some other States by a useless attempt to enforce them.
The other object, Sir, which you appeared to have in view, is to relinquish so much of the requisitions since 1781, as might leave only the sum necessary for fulfilling present engagements. Now although the resolution, which seems to have been in contemplation, would not have had this effect, because the requisition for the service of 1782 was made on estimates, yet I shall assign a few objections to the plan. The reason urged in favor of it is, that the demand was so much beyond the abilities of the States, and the necessities of the service, that it must excite a despair of compliance, and a diffidence in the prudence of those by whom it was made. To which it may well be replied, that the ability of the States is not so hastily to be decided on, because it has never been put to the proof by prudent and vigorous taxation, because other countries not so wealthy bear much heavier taxes without inconvenience, and because these very States have borne it, though under another name; for the depreciation of the paper money, which wiped away not less than twelve millions annually, was in effect a tax to that amount.
But further, even admitting the supposed inability, still the requisition, if not excessive as to its object, ought of necessity to have been made. Because the States could by no other mode of reasoning be convinced of the necessity of establishing that credit, which can alone prevent such great efforts. And because if such requisitions had not been made, some branch of service must have been left unprovided for by Congress, on the very face of their own measures, which would have been a palpable absurdity.