THE
DIPLOMATIC CORRESPONDENCE
OF THE
AMERICAN REVOLUTION.

VOL. XII.

THE

DIPLOMATIC CORRESPONDENCE

OF THE

AMERICAN REVOLUTION;

BEING

THE LETTERS OF BENJAMIN FRANKLIN, SILAS DEANE, JOHN
ADAMS, JOHN JAY, ARTHUR LEE, WILLIAM LEE, RALPH
IZARD, FRANCIS DANA, WILLIAM CARMICHAEL, HENRY
LAURENS, JOHN LAURENS, M. DE LAFAYETTE, M.
DUMAS, AND OTHERS, CONCERNING THE FOREIGN
RELATIONS OF THE UNITED STATES DURING
THE WHOLE REVOLUTION;

TOGETHER WITH

THE LETTERS IN REPLY FROM THE SECRET COMMITTEE OF
CONGRESS, AND THE SECRETARY OF FOREIGN AFFAIRS.

ALSO,
THE ENTIRE CORRESPONDENCE OF THE FRENCH MINISTERS,
GERARD AND LUZERNE, WITH CONGRESS.
————
Published under the Direction of the President of the United States, from
the original Manuscripts in the Department of State, conformably
to a Resolution of Congress, of March 27th, 1818.
————

EDITED
BY JARED SPARKS.
======

VOL. XII.

BOSTON:
NATHAN HALE AND GRAY & BOWEN;
G. & C. & H. CARVILL, NEW YORK; P. THOMPSON, WASHINGTON.
————
1830.

Steam Power Press—W. L. Lewis' Print.
No. 6, Congress Street, Boston.

CONTENTS

OF THE
TWELFTH VOLUME.

———

ROBERT MORRIS'S CORRESPONDENCE,
CONTINUED.

————

THE
CORRESPONDENCE
OF
ROBERT MORRIS,
SUPERINTENDENT OF FINANCE.

VOL. XII

THE
CORRESPONDENCE
OF
ROBERT MORRIS.
———
CORRESPONDENCE CONTINUED.
———

TO M. DE LA LUZERNE.

Office of Finance, November 3d, 1781.

Sir,

Agreeably to my promise, I have the honor to send you a copy of the circular letter, which I lately transmitted to the several States. This will be an additional proof of my desire to draw from among ourselves the necessary resources, and thereby to become truly independent. But the sincerity with which I have always spoken to you, and which I mean to preserve, and which the generous conduct of your Sovereign demands for his servants, that sincerity will not permit me to conceal my sentiments on what is to be expected.

The annual expenses of this country may certainly be reduced within narrower bounds, than they have hitherto been; perhaps it will be less than I myself have now an idea of. But still it must be considerable, if we mean, which we certainly do, to make becoming efforts in the common cause. Besides this, it will require a considerable revenue to provide the sinking fund for our public debt. As I consider national credit to be an object of the greatest magnitude and importance, so I think it necessary to bend every possible effort to the establishment and support of it. Provision for our debts is, therefore, the first object, and therefore must take place of every other demand.

Whatever may be the wealth of the inhabitants of America, and however capable they may be of bearing heavy taxes, this at least is certain, that they have neither been accustomed to them, nor have the Legislatures hitherto adopted the proper modes of laying and levying them with convenience to the people. Taxation requires time in all governments, and is to be perfected only by long experience in any country. America, divided as it is into a variety of free States, possessing sovereign power for all domestic purposes, cannot therefore be suddenly brought to pay all which might be spared from the wealth of her citizens. The amount even of that wealth is very disputable. Our extensive forests, though they are valuable as property, are by no means productive to the revenue; and many of our people have endured such losses, that they require alleviation, instead of being able to bear burdens. Besides this, the use of many articles, not strictly necessary, are become so even by that use, and therefore, the mode of living being habitually more expensive than in other countries, requires greater wealth, A good Prince would not suddenly render the lot of his subjects worse. How then are we to expect that the people themselves will do so?

But supposing our taxes could equal the demand for revenue, another circumstance remains. The paper money, which has been emitted lays in our way to reformation, and we feel it at every step. It has been issued, and the people will with propriety refuse to pay taxes, if it be totally refused. Much, therefore, of the revenue must be in paper, while that paper exists. If it be re-issued after it has been raised in taxes, the mischief attendant on a depreciating medium will still continue. A large nominal revenue may indeed be collected, but that revenue will be nominal. The specie in the country also will be continually secluded from circulation, and by that means, not only the sources of revenue will be dried up, but even the bills of exchange, which may be drawn on Europe, will not find a proper market at their value.

I might add a number of reasons to show the necessity of destroying this paper money; but your residence here has enabled you to see this subject to the bottom, and I have found in conversation your ideas so clear, that I will not attempt to demonstrate what you cannot but perceive at a single glance. But how is it to be done? If a recurrence be again had to the detestable expedient of force, our credit is ruined. Prudence, therefore, forbids any such attempt; besides, it is so dishonest, that I will never have any concern in it. There is then no other means, but to receive the taxes in paper, and to destroy a part, at least, if not the whole.

This method of proceeding will lay a proper foundation for establishing public credit, and when that is established, we well know what good consequences may be drawn. But, in the interim, it is evident that the revenue, even if otherwise equal to our wants, must be deficient. I, therefore, am bound to declare to you my conviction, that we must have aid from abroad. It is unnecessary to add the place from which that aid is to be expected.

It is very painful to ask assistance in any case, especially in a situation like ours, where the object of the war is to secure what is of the utmost importance to us. But having candidly explained our situation, and shown the impracticability of doing all which I wish, there is a greater propriety in stating to a gentleman, who knows those wishes, the ideas which arise from the nature of that connexion which subsists between the two nations.

The war in America must of necessity prove fatal to Great Britain, if it continues; because it is carried on by her at an expense so disproportionate, to that which is borne by France, that the greater effort must exhaust every fund she can possibly draw forth, and inextricably involve her in eternal debt. If then the object of the war were in itself indifferent to France, the mere continuance of it would alone be a valuable object to her, and indeed, to every other power, particularly to those who are in any degree maritime, as they are most exposed to British encroachment and rapacity. But when we consider that the object of the war is of the last consequence to the commerce of his Majesty's dominions, and especially so to his marine; and when we further consider, that his honor stands pledged for our support, to doubt of his further assistance would imply a reflection both on his wisdom and integrity. I hope, Sir, you will believe me to be incapable of casting such reflections.

Let me further take the liberty to observe, that I would by no means detract from the generosity of his Most Christian Majesty, yet the moneys, which he may be disposed to advance to the United States, are neither lost nor thrown away. The subjects of France will for ages derive benefits from a commercial connexion with this country, and I hope their Sovereign will always find here a warm friend and a faithful ally, should any of those changes, to which human affairs are subjected, induce him to ask that aid, which he now bestows.

With great respect, I have the honor to be, &c.

ROBERT MORRIS.[1]

TO THE PRESIDENT OF CONGRESS.

Office of Finance, November 5th, 1781.

Sir,

Copies of the Act of the United States in Congress assembled, of the 2d instant, have been sent to me, and were yesterday received. It would have given me pleasure to have had an opportunity of expressing my sentiments before those acts were passed; but it becomes necessary to take the liberty of doing it now. I, therefore, do myself the honor to enclose a letter written on the 28th day of August last, which was not transmitted before, because Congress were so much engaged, that, as well from that as from other circumstances, those matters, which it relates to, could not properly be brought before them. In the beginning of that letter, the reference made to me on the 23d of August, of two letters from the State of Massachusetts, and of a report upon them, is mentioned. On the 12th of September following, I received the resolutions of that State, which were referred on the 10th; and I have now to observe, that my sentiments on the subject of those resolutions are fully contained in the letter.

I should have sent in that letter, notwithstanding my reasons to the contrary, if I had conceived that any of the subjects it relates to had been in agitation before the United States. And, although Congress have not taken up all the matters mentioned in it, there is some propriety in sending it as it was written, because such objects are better understood when viewed in their connexion with each other, than when separately considered.

I shall say nothing as to the amount of the sum required, because I have not seen the estimates. Congress have certainly considered the supplies necessary, and the abilities of their constituents. Immediately after the apportionments, I find the following clause, "that the said sums, when paid, shall be credited to the accounts of the several States on interest, to be hereafter adjusted." I hope that I shall be pardoned for observing, that I cannot see the necessity of this provision, and that ill consequences will probably result from it. As to the necessity, I will suppose that the proportion of any State were rated so high as greatly to exceed its means of payment, or materially to distress the people, surely Congress might afford redress in the next apportionment by relaxing the demands on such State and dividing the deficiency among others. Nor is it of any consequence whether the disproportion arises from error in laying the quotas, or from a subsequent change of circumstances. It is for this reason that the clause appears unnecessary. The idea of leaving the adjustment of accounts to a future day will discourage the efforts of every State in the Union. They will consider it as determining, in other words, that the accounts shall never be settled at all, or rather, they have already formed that opinion. This has produced discontent, and given rise to complaint. The disputes which must follow cannot but be pernicious. Nor are these the only ill consequences of that provision. I hope that Congress will pardon me, when I state the sentiments, which may arise in the minds of others, although they have no place in my own. Postponing a final adjustment may cast an air of doubt, or even timidity, on the proceedings of the United States. It may be construed into an appearance of leading individual States unwarily into efforts beyond their proportion, or their strength. It may be imagined that there is some want of that firmness and decision, which ought to be the constant companions of sovereign authority. It gives me pain to hazard a difference in opinion with Congress, and, therefore, I quit the subject.

The next article in the Act of the second instant declares, "that certificates, which may be given by the Quarter Master General, or other officers properly authorised to give them for supplies, that shall hereafter be furnished, shall be accepted in payment." This provision may, in some instances be necessary, in some improper, but in all it must be dangerous. I shall not dwell on the consequences of giving these certificates; but I will suggest one idea, which will, perhaps, merit attention. That article is an act of sovereign authority, and therefore while it exists doubts may arise how far the issuing of such certificates can be restrained. If the Quarter Master and others will give certificates, and the States will receive them and tender them to me, I must, according to this act, accept them in payment; but those who contract for supplies to the public, certainly will not take them from me. If, on the other hand, that article be not inserted, the general authorities given to me by Congress are equal to all the necessary regulations in executing their commands. I might, for instance, appoint a trusty person to give certificates in extraordinary cases. I should then know the amount of such certificates, and I could make the necessary arrangements with relation to them.

My sentiments on the next article are so fully expressed in the enclosed letter, that I will not trouble Congress with the repetition. I shall only observe, that daily observation and information confirm my fears, that frauds have been practised in giving those certificates, and I must be of opinion, that a general permission to receive them in taxes will be very injurious, not only to the public revenue, but to the reputation of our measures. I am apprehensive that many honest men through the United States, who know the frauds committed in their neighborhoods, will imagine that sufficient attention is not paid to the detection of villany, and that idea will disincline them very much from the payment of taxes, because nothing induces men to part with their money so cheerfully, as the belief that it will be applied to the purposes for which it was granted, with economy and integrity.

What I have written on the subject of a final apportionment may appear to have proceeded from a want of attention to that article of the confederation, which points out the manner of defraying public expenses. But this is not the case. The article in question relates merely to those circumstances, which shall arise after the completion of it, and makes no provision whatever for past expenses. The several requisitions of Congress do indeed refer to a future settlement, according to the mode expressed in the confederation; but the confederation itself must receive a liberal and equitable construction; much more so those resolutions which refer to it. If this be not the case, it would be madness to expect obedience from free agents independent of each other, which is the situation of the several States. If, then, the article be considered and weighed, even as to the quota of the current year, where certainly it applies with greater force, than to any past transaction, we shall find that it presupposes the following things; first, a certain mode of determining the value of lands, &c., or, in other words, the value of each respective State; secondly, that this mode should not be permanent but variable, and framed from time to time, according to the then existing state of things; thirdly, that it should be founded in liberal principles of justice; no other mode being presumable from those who are to adopt it; fourthly, that the value being thus equitably determined, the expenses of the current year should be estimated according to the best lights, which could be obtained; and fifthly, that this expense should be apportioned according to that valuation.

If these ideas be just, and I think that an inspection of the article itself will show them to be so, then it will follow, that a valuation made for one year cannot properly apply to any preceding or subsequent year; more especially, if any considerable change take place in the respective circumstances of the several States. Let us, for instance, suppose, that in the year 1776, five hundred acres of land in the State A were worth one thousand pounds; that in the year 1777, they were worth five hundred pounds; and in the year 1778, one hundred pounds; while, during the whole period, five hundred acres in the State B were worth five hundred pounds. Let us suppose the States A and B to have been of the same extent, and that thirty pounds were to have been paid annually by those States according to the apportionment of the confederation, they would then have been charged as follows; in 1776, the State A twenty pounds, and B ten pounds; in 1777, A fifteen pounds, and B fifteen pounds; and in 1778 A five pounds, and B twentyfive pounds. Thus, then, of three times thirty or ninety pounds, A would be chargeable with twenty, fifteen, and five amounting in the whole to forty pounds; and B with ten, fifteen, and twentyfive, amounting in the whole to fifty pounds. The proportion, therefore, between them is as four to five; but the proportion arising from their relative wealth in either of those terms is widely different. In the first, it is as two to one. In the second, as one to one, and in the third, as one to five. Wherefore, if the whole ninety pounds were to have been apportioned on the valuation of the first year, it would have been to A sixty, and to B thirty. On that of the second A fortyfive, and B fortyfive, and on the third A fifteen, and B seventyfive.

If this conclusion be fairly drawn, then a question will arise on this point. Suppose no mode of valuation adopted, how are the quotas to be ascertained? In answer to this question, I state the following positions; first, that the object of the confederation was to make an equitable apportionment; secondly, that Congress will always, when they direct a valuation, do it in an equitable mode; and thirdly, that a valuation is, at present, impracticable, much less a valuation for times past. These things admitted, and the necessity of an apportionment being also admitted, the question answers itself; for no other mode will remain, but by resorting to such lights as Congress may have on the subject, and that they determine as equitably as they can, according to those lights, which is the very thing I have already proposed.

I shall trespass no longer on your Excellency's patience, than to mention, that I have detained the copies of those acts, until the further order of Congress. But if they disapprove of it, I shall immediately transmit them.

I have the honor to be, &c.

ROBERT MORRIS.

TO M. DE LA LUZERNE.

Office of Finance, November 6th, 1781.

Sir,

I have been honored with your Excellency's answer of the 4th to my letter of the 3d instant. I am sure we cannot differ in opinion. It is impossible, that I can doubt the wisdom or integrity of his Most Christian Majesty, or that you can doubt his desire of giving further assistance to the United States. As to the mode in which that can be done, his Majesty's convenience, and the situation of affairs will best determine it. I wish to receive pecuniary aid, and when I consider the importance, I am led to expect it. You have doubts on that subject; but the success which has followed from the grants already made, will show so clearly the utility, that you, who see the good effects, and who are so zealously attached to the common cause, will concur with me in your efforts also. The regard you have expressed for the United States, and which, I am sure you feel, gives me the highest reason to expect your good offices on all occasions, which may relate to their welfare, and particularly those in the line of my department, where you are fully sensible assistance is most necessary.

With the most perfect esteem and respect, I am, &c.

ROBERT MORRIS.

TO THE COUNT DE ROCHAMBEAU.

Office of Finance, November 15th, 1781.

Sir,

I have the pleasure to observe to your Excellency, that I have discharged a bill drawn on me by M. Baulny, in favor of M. Roquebrune, for eighty thousand livres, being in part payment of the one hundred and forty thousand livres, which you were so kind as to advance, and for which I beg leave again to express my grateful sense of obligation. The remaining sum of sixtyfour thousand livres, I hold at your order, and had determined to remit it; but having accidentally mentioned the matter to the Chevalier de la Luzerne, he observed to me, that in all probability, you would want money rather in Philadelphia than Virginia, because of the necessary expense, which would arise in transporting stores from Boston. Upon this principle, I deferred sending forward, until I should hear from your Excellency on the subject. M. de la Luzerne has also promised me to mention it in his letters to you.

Before I conclude this letter, I must trespass one short moment on your patience, to express my congratulations on the important and splendid success, which has crowned the allied arms before Yorktown. My voice, Sir, cannot add to that glory, which the public sentiment has most deservedly conferred; but you will permit me to assure you of the high gratification it gives my mind, that you are so much the object of gratitude, applause and esteem, throughout the United States.

With the most perfect respect, I have the honor to be, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, November 17th, 1781.

Sir,

I have the honor to enclose acts of Congress of the 30th of October, and 2d instant, which were handed to me on the 4th; but upon a perusal of them, it appeared that some things had escaped the attention of Congress; wherefore, on the 5th I had the honor of writing to them a letter on the subject.

In this letter I took the liberty to state some objections to the three clauses in the Act of the 2d, which follow immediately after the apportionment. I shall not here repeat those objections. They lay before the United States in Congress, and will receive such mature consideration, as is becoming the wisdom of that sovereign body. I will not however hesitate to declare to your Excellency, that it was my wish to have those three clauses repealed.

On the 12th, the United States in Congress assembled passed the act, of which a copy is also enclosed, and by which your Excellency will perceive, that one of those clauses is repealed. I received this Act on the 30th, and I have waited until this day the further order of Congress; but there being now but a thin representation, so that business cannot be done with the same despatch as when more States are present, and these Acts being of great importance, I have thought it best immediately to forward them. To press a compliance is I trust unnecessary. The respect due to the representation of America will speak more loudly and more effectually, than the weak voice of any individual servant they may have employed. I shall make but one observation. The present requisition is very moderate; the compliance, therefore, must be very punctual, for delays are equally dangerous and expensive, and if they should happen, the people must be burdened with new taxes unnecessarily.

With great respect, &c.

ROBERT MORRIS.

GEORGE WASHINGTON TO ROBERT MORRIS.

Mount Vernon, November 19th, 1781.

Dear Sir,

I have to inform you, that a very considerable debt has been incurred on you as Financier of the United States, by an order for the relief of the officers of the army from the goods found in Yorktown; each officer, military and staff, having been authorised to take up on public account, the sum of twenty pounds Virginia currency; for which Mr Ross, commercial agent of this State, is answerable to the merchants, payable in tobacco; Mr Ross receiving the amount in bills upon you to be paid in six months from the time of the goods being taken. The returns not being handed in, I am unable to give you the amount with any precision; your own calculations will afford you the sum with a degree of certainty.

A quantity of goods found on board a cartel in York river, and which have been judged to be forfeit, were part suitable for the army, and part for the country; the latter, which will amount to a considerable sum, are to be sold at public vendue, and accounted for.

Knowing the state of your finances, I have studied to keep this debt within its most moderate bounds, but in spite of all my endeavors, I fear you will find it but too large. I hoped to have given you some assistance from the military chest found with the enemy, but unavoidable contingencies of the army, and furnishing the Quarter Master General for the southern army, have swallowed up near one half of its contents. A number of iron cannon, being unnecessary for our use, I have appropriated as a fund for the discharge of the debt incurred, and they are sent to the head of the Elk; this with the other funds may possibly amount to a full discharge of the debt.

I am, &c.

GEORGE WASHINGTON.

P. S. Since writing the above, I am informed by General Lincoln, who is come up since I left Yorktown, that the whole amount of the goods taken by the officers and on public account, will arise to about thirteen thousand pounds sterling, and that the articles sold in Yorktown, at public vendue, will be near six thousand pounds.

G. W.

TO THE GOVERNOR OF CONNECTICUT.

Office of Finance, November 20th, 1781.

Sir,

I have been honored with your Excellency's letter of the 7th instant, and am much obliged by the attention you have been pleased to pay to the several applications from me, which are noticed in it.

I shall be very happy to receive the several accounts you have promised, because the final settlement of all accounts appears to me of the utmost importance, and I hope such measures will be taken, as founded in justice and propriety will meet your wishes, and be agreeable to the State, over which you so worthily preside. I hope that in future, there will be no accounts between the States and the United States, except cash accounts, one side of which will consist of the requisitions, and the other with the payment of them. The old Continental, which is brought in, will, I hope, be forwarded hither, with its proportionate part of the new, and indeed of the whole, both new and old, as soon as possible. Both shall be carried to the credit of the State.

As to what you mention of the tax in specie, I have to observe, that whatever may have been the practice heretofore, I hope that the moneys designed for the general service will be paid into the Continental Treasury, and that the army will be paid from thence. This I conceive to be the only mode, by which heart-burnings, murmurs, and complaints can be avoided, and, at the same time, it is the only mode, by which the moneys obtained from the people can be applied with effect and economy.

To feed, clothe, and pay the army, form a part of the objects of my administration. Clothing I have received. Rations I have contracted for in some degree, and I shall extend those contracts. Pay will also be advanced, when the treasury will admit of it. I am, therefore, to request that the hard money collected, and collecting in your State may be held subject to my drafts. I expect that the States will all levy taxes sufficient for those things I have just mentioned, and for the other necessary expenses. The money which is submitted to my disposal shall be faithfully applied.

That the requisitions from Congress have been later than was to have been wished, is indeed to be lamented. That body have so many objects, which call on their attention, that they cannot always do what they would wish. Besides this, the uncertain situation of our money has hitherto greatly increased the difficulties, which Congress have labored under, and you will permit me to observe, Sir, that those difficulties are not a little to be attributed to the inattention of the several States. But your Excellency will, I am sure, agree with me, that our situation requires joint vigorous exertions, and not unavailing complaints and recriminations.

With the greatest respect, &c.

ROBERT MORRIS.

REPORT OF A LETTER TO DON BERNARDO DE GALVEZ, MADE TO CONGRESS, NOVEMBER 21ST, 1781.

The Superintendent of Finance, in pursuance of the order of the 7th instant, prays leave to submit the following draft of a letter to General Galvez.

Sir,

Your letter, dated at New Orleans the 22d of July, 1780, has been received, and was laid before the United States of America in Congress assembled on the 29th of September following. The committee to whom that letter was referred, did not make any remittances in consequence of it, nor write you an answer, because the dangers attending a communication with you at that time were too great, occasioned by the many ships of war, with which the enemy then infested our coast.

I am now, Sir, directed by the United States to express to you the grateful sense they entertain of your early efforts in their favor. Those generous efforts gave them so favorable an impression of your character, and that of your nation, that they have not ceased to respect you, and to wish for an intimate connexion with your country. Conceiving it to be for the mutual interest of Spain and North America, they have an earnest wish, that as the cause is one, and the enemy one, so the operations against him may be continued in such manner, as to answer the great purposes, which all have in view. The late successes, which have crowned the combined arms of France and America in Virginia, while they demonstrate the benefits which flow from a union of efforts, will at the same time, lead to wholesome reflections on the manner in which that union has been cemented. The French and American soldier marching under the same banners, enduring the same fatigues, bearing the same dangers, and bleeding in the same field together, express in the language of their different nations the common sentiment of fraternal affection. Let me congratulate you very much on this success, and still more on the sentiment, by which, under Providence, it has been secured.

With respect to the advance made by your Excellency, I have the honor to enclose copies of two resolutions of Congress, one of the 6th of February last, and the other of the 7th instant, by which you will perceive, that the public accounts with Mr Pollock are settled, and a considerable balance carried to his credit. In these accounts is included a part of your advance, and the remainder of it is contained in Mr Pollock's account with the Commonwealth of Virginia. This latter account has been referred to the consideration of that Commonwealth, and I trust the debt to Mr Pollock will be acknowledged by them. That which is due from the United States to Mr Pollock is now on interest at six per cent, and if you wish that the sums which he has appropriated to the service of the United States out of those advanced by your Excellency should be credited to you, on transmitting an assignment thereof from Mr Pollock, it shall immediately be done, and payment will be made both of the principal and interest, as soon as the situation of our finances will admit of it, which, from the present prospect of things, may happen in a shorter space of time, than the public creditors have been generally led to expect.

With perfect respect and esteem, I am, &c.

ROBERT MORRIS.

TO M. DE LA LUZERNE.

Office of Finance, November 22d, 1781.

Sir,

In conversation with your Excellency last evening, you requested me to write to you on the subject of it, that you might be fully possessed of my sentiments. I have now, therefore, the honor to remind you, that some time in the month of May last you promised me that I should draw for half a million of livres, and shortly after, for a million more. You afterwards extended this sum to two millions and a half, and on the 25th of September last, I wrote to you on the subject, having then seen the report of the committee appointed to confer with you, by which it appeared, that your engagement with me to draw for the sums first mentioned formed one object of that conference, but that the engagement for one million more was omitted.

I have extended my engagements according to the extent of the means, which I was induced to suppose in my power, and therefore, estimating the money and supplies the States would probably furnish, and relying on the money which had arrived, that which I was authorised to draw for, and that which the engagements of your Court had led me to expect, my views were directed to all those resources. I shall not dwell on the consequences of my efforts. Enough of them are known to speak for themselves, and I leave to your knowledge and observation the comparison of our public affairs now, with what they were exactly six months ago. I will only say, that if those foundations, on which I built, are removed, my past labors will have been thrown away, and my future utility absolutely destroyed.

You can well remember, Sir, what I have often told you of the course of exchange. I have raised it gradually since I first commenced my operations, and although it would now have been higher than it is, if the quantity of bills thrown on the market last summer had been withheld; yet even now, at fifteen pence this money for a livre, it is but ten per cent below par; and as I expect shortly to raise it to sixteen pence, it will then be at a discount of only four per cent. To sustain these operations, if for no other purpose, it is necessary that I continue to draw bills, for certainly a remittance cannot be made so cheaply from Europe. But, indeed my present demands, arising on past engagements, are very great and urgent, so that if I do not continue to draw, the chest will presently be empty, which will be known as soon as it happens, and then I am again at the mercy of the world. I will dwell no longer upon this subject, but take some notice of another matter, which stands in intimate connexion with it.

You will remember, that you have often mentioned to me a mistake in the account, of which you delivered a copy to Congress. As I made no doubt, that it would be properly and satisfactorily explained, I have hitherto restrained myself from going at all into the subject. But it now becomes my duty to write to Dr Franklin upon it; and, therefore, I wish to communicate to you my sentiments, while I request you to use your good offices with the Court for having the matter placed on its proper footing.

The note from the Count de Vergennes, of the 16th of May last, shows very clearly a grant of the three following sums; four millions to Dr Franklin to discharge the bills of exchange drawn on him by Congress; six millions as a gift towards the operations of the campaign; and ten millions in advance of the loan to be opened in Holland, amounting in the whole to twenty millions. The first sum of four millions, appears evidently to have been for payment of the bills drawn to discharge the interest of loan office certificates, according to the original engagement, which the Court entered into with the American Commissioners. Of the money granted by the Court, there has been advanced, as appears by the account you delivered to the committee, in warlike stores and money, to Colonel Laurens, four millions seven hundred and eightynine thousand one hundred and nine livres; and to purchase the remainder of the articles demanded by him, three hundred and ninetyseven thousand livres. For the bills of exchange drawn by Congress on their Minister, I will suppose the sum mentioned in the Count de Vergennes' note, viz. four millions, and I will add for my drafts one million and a half, being what, as I have already observed, you first promised. Thus the whole amount of these sums is ten millions six hundred and eightysix thousand one hundred and nine livres, and the balance, which I conceive to be subject to my disposition, is nine millions three hundred and thirteen thousand eight hundred and ninetyone livres. As to replacing the cargo of the Fayette, which is mentioned in your account, I do not take notice of it, because I wish that it may not have happened, and because if it has been made, it will be time enough to deduct it when the articles shall have been actually delivered. The loss of that ship, and the detention of one of the transports laden by Colonel Laurens, have already compelled me to make heavy expenditures. Among these I will mention the purchase of lead some time ago, and a late purchase of clothing to a very large amount, a part of which I am now paying for, and the remainder is to be paid in three, six, and nine months from the date of my engagements.

I have the honor to enclose what I conceive to be the clear state of the account between us and your Court. This will be transmitted to Dr Franklin, and I hope it will meet with your approbation and support. As I have nearly drawn for twelve hundred thousand livres, I must request your compliance with your original engagement, that I may extend my drafts so as to include the remaining three hundred thousand, necessary to complete the one million and a half, mentioned in the enclosed account.

I shall be glad to be informed, Sir, whether any more money has been shipped on account of the United States. I shall immediately take measures to draw on account of the balance already mentioned, as our necessities require it; and if in the mean time, so much shall have been shipped, as that my bills exceed the balance due, I shall expect that they will be punctually paid, and I will readily repay that excess out of the moneys so shipped, to the use of your army here.

I have the honor to be, &c.

ROBERT MORRIS.

TO M. DE LA LUZERNE.

Office of Finance, November 26th, 1781.

Sir,

The letter, which you did me the honor to write on the 24th instant, was delivered yesterday morning, and I take this early opportunity to acknowledge it. As you have assured me, that you cannot know any account, which is not conformable to the instructions his Majesty's Minister has addressed to you, I shall spare your Excellency the trouble of my remarks. But as you say, that your letter of the 26th of September last could not have left me the shadow of a hope on the subject of further drafts, your Excellency will pardon one observation. Those precise orders from your Court, received by Colonel Laurens, which compel you now to prohibit my further drafts, permitted you then, in consequence of the observations I had the honor of making to you, an extent of nearly three hundred thousand livres. It is my duty to trespass one moment longer on your Excellency's patience, while I take the liberty to observe, that I can by no means consider purchases made for any particular State in the Union as properly chargeable to the United States.

With the most perfect esteem and respect, I have the honor to be, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, November 27th, 1781.

Sir,

The Marquis de Lafayette who is about to sail for France, will have the honor to deliver this letter, and, consistently with the acts of Congress of the 23d instant, I must request you to communicate it to him, and, from time to time, to take his aid in the prosecution of the business, which I must recommend to your particular attention. The affairs of my department are of a nature not to require concealment; but, even if that were not the case, I have such perfect confidence, as well in the prudence of the Marquis, as in his attachment to this country, that the acts of Congress out of the question, I should feel a pleasure in making him acquainted with my views and wishes. Indeed, I expect that his zeal and activity will go far in smoothing the way towards the accomplishment of those objects, which your Excellency may have to solicit.

In order that you may be perfectly acquainted with the situation of our affairs, I shall previous to my observations on the supplies to be asked for the next campaign, take some notice of the efforts I have made, and am daily reiterating, to obtain supplies from the several States, upon the various requisitions, which Congress have already made, and to operate a settlement of past accounts, and to procure proper funds for the public debts. I shall also make some remarks as to the prospect of future supplies in this country, and on those which have already been granted by the Court of France.

The papers enclosed relate chiefly to the former requisitions of Congress. You will observe, Sir, that by an act of the 28th of June last, I was directed to press a compliance with those requisitions, and it is in consequence thereof, that my circular letter of the 6th of July was written. The demands of Congress were twofold; some for specific supplies of the produce of the several States, the others for money. It may be proper here to observe, that the manner of doing public business had been such, that it was not merely difficult, but absolutely impracticable to state any accounts in the clear satisfactory manner, which ought always to be wished, even in private life, but which in public life is of the last importance. I do not mention this to cast any reflection or aspersion; for the evil resulted more from the want of arrangement, than the faults of any particular men. But it is right to take notice of the circumstance, because, in the course of what I am about to write, the want of such accounts cannot but appear. I shall say nothing as to the ill effects of demanding generally a contribution of specified articles; my opinions on that subject will appear from the enclosed papers, and experience has taught, that such contributions are no longer to be relied on. At the same time, I declare now, that in some degree it must still take place, for reasons, which will be mentioned at the proper time.

As the letter last mentioned contains no statement of the accounts, I wrote on the 16th of July another, containing the cash account of each State, as extracted from the treasury books; a statement, however, which I knew to be imperfect, for causes not necessary to be repeated. On the 25th of July, I wrote another circular letter, and in which was enclosed a statement of the several demands for specific supplies. These were considerable, and I am of opinion, that a very great part of them still remains to be delivered at this day; but there have yet come to my hands no accounts by which to determine the balances. What is said, as to the settlement of accounts in this letter, will be honored with your notice presently. You will now observe, that I therein request information as to the revenue laws, which have been passed, the mode of collecting taxes, the moneys in their treasuries, the various appropriations of it, and the different paper currencies in the several States. To your Excellency, it is unnecessary to observe, that my object was to obtain proper materials, on which to ground my future expectations, and to form efficacious systems of revenue and expenditure. I have the mortification, however, to mention, that no accurate or satisfactory answers have been received to these questions; and when I tell you, that I am not much deceived in my expectations, you will readily form the proper conclusions, as to the relaxed habit of administration in this country. I wish you to be fully possessed of our situation, and that you may convey a clear idea of it to the Court of Versailles. This will be useful to the common cause. I trust that I need not remind you how advantageous it would be for us to know as fully the real situation of France.

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.

I have said, that I will make some remarks on the supplies already furnished by France. It is necessary to do this, as well because I am so unfortunate as to differ a little in opinion on the subject with the Minister of his Most Christian Majesty here, as because the demands we are to make on the Court for the next year, will depend on the compliances, which have been, and shall be, made with the grants for the present year.

It was a point understood in Congress very early, that his Most Christian Majesty would pay the interest of certain moneys to be borrowed by Congress in America. Your Excellency knows better than any other man what passed on that subject. It would, therefore, be absurd in me to recapitulate it. Those circumstances which rendered an express stipulation improper then, have introduced much delicacy into it now; and, therefore, I do not expect that the Court will recur to a formal acknowledgement of what was then, perhaps, rather a personal, than national, obligation. But I do expect that the payment of that interest will be provided for as heretofore, without considering the moneys appropriated to that purpose, as a relief to us in carrying on the war. You will have seen, Sir, from the course of my letters how much it is an object with me to collect from ourselves the revenues necessary to lighten our debts. There is a variety of reasons for it, which I will not repeat. Among them, however, this is one, that I wish to remove the load from France to ourselves. It will in the end be the same thing; because, in proportion as our resources here are appropriated, we must ask help there. But it would be better, that the people were taught to look at home for the basis of national credit, because there alone it can be found. I should not have mentioned this matter, but that you will find it noted in the correspondence between the Chevalier de la Luzerne and myself, of which copies are enclosed.

Shortly after the arrival of M. Gerard, it was understood that France would supply us with the clothing and warlike stores which might be necessary, and therefore it was, that Colonel Laurens, when in France, labored to prevent a deduction from the subsidy of six millions on account of the articles furnished to him. As I am persuaded that his efforts were in consequence of your advice, and in concert with you, I shall say nothing more upon that subject, only to lament that the Court have differed from you in opinion, and to acquiesce in their determination, on the principle, that those who give have a right to dispose of that which is given.

By a note from the Count de Vergennes, of which I enclose a copy, I perceive that the Court granted the United States as a gift, six millions; advanced to you four millions to pay the bills which might be drawn on you; and became security for a loan of ten millions; the amount of which was to be advanced from the royal treasury, in case the loan should fail of success. The expression, as to this last object, is strong, namely, that his Majesty will see himself under the necessity of supplying the deficiency, although, in the former part of the note it is said, that he will supply it from his own finances as soon as possible. An expression which, while at the first blush it makes an earnestness of affection, may be, and in fact has been, construed into a kind of cautionary provision. Your Excellency will also, I doubt not, observe what is there said of the appropriation of the gift, the last two millions whereof, as is already observed, we did not expect to find there.

Enclosed also is an account delivered by the Minister of France in the month of September to a committee of Congress, which had been appointed to confer with him. There are striking differences between this account and the note last mentioned. But by this account it appears, that it was the design of the Court to make the advances of the present year distinct from all past transactions. From whence this conclusion, at least, will follow, that such of the bills drawn by Congress, either on yourself, or on their agents in Spain, or Holland, as you may have discharged before the commencement of the present year, are not to be deducted from the sums mentioned in the Count de Vergennes' note. Now that I am on this subject, I will observe to you, Sir, that I have determined to prevent that circuitous negotiation of bills, which has so much perplexed and distressed you, and have for that reason stopped many of those already drawn, as will presently appear. Another observation to be made on this account is, that no notice is taken of the four millions expressly mentioned in the Count de Vergennes' note, as granted to you for payment of bills drawn by Congress.

A third observation is, that the articles marked B, and the article number two, C, which together amount to the sum of six million, six hundred and eightysix thousand one hundred and nine livres, are all charged as being expended to the order of Colonel Laurens. But by the Count de Vergennes' letter to you of the 8th of June last, it appears, that Colonel Laurens was to have had the command of no other than the six million livres, given by the King. Indeed the Count's note of the 16th of May shows the same thing. The letter of the 8th of June just mentioned, shows clearly the opinion of the Court on another point of very great importance, namely, that the whole ten million livres, to be advanced for the loan, are, as in effect they ought to be, subject to the disposition of the United States only. A fourth observation is, that the article A three, B two, and C one, amounting to four millions three hundred thousand livres, were, or were to have been, in your possession for payment of bills. If to this be added four million livres, granted for that express purpose, of which no mention is made in the account, it would follow, that you would have eight millions three hundred thousand livres at your disposal; and this leads me to consider the amount of the demands, which could be made on you.

These cannot be precisely ascertained, but the paper number seventeen, contains the best estimate, in my power. The first six articles of this estimate contain all the bills, which have been drawn upon you, excepting some interest bills, which although made out had not been delivered to the people before the 1st of April last. These amount to ten millions six hundred and seventyone thousand four hundred and fiftysix livres, thirteen sols, four deniers. The article number seven, is the whole amount of guilders drawn for; the far greater part of which I have detained, as you will perceive by the article number eight. The balance it is not possible to ascertain exactly in livres, because it must depend upon the course of exchange; but at two livres for a guilder, the whole of the bills actually negotiated on Holland will amount to one million ninetyfour thousand seven hundred and twentynine livres. The article number nine, is the amount of bills drawn on Spain, of which a considerable part has been paid by Mr Jay, and a part, somewhat more considerable, is destroyed. These parts are contained in the articles ten and eleven. The balance (calculated at the value of a dollar in France, which will, I suppose, be as much as it can cost) amounts to one million seventyseven thousand two hundred and eighteen livres. So that the whole of those bills, which by any means whatever could have come upon you for payment, will be twelve millions eight hundred and fortythree thousand four hundred and three livres, thirteen sols, four deniers, and from this sum very considerable deductions are to be made. The article number twelve, which is the first of them, contains the exact amount of the several bills for interest, which were negotiated previously to the first of April last.

It may be objected, that these bills will many of them be payable during the present year; which indeed, is true, and for that reason, I have added to the bottom of the account the extent of one year's interest on Loan Office certificates, and which is more than will, I believe, be presented. The next article, number thirteen, is for bills which had been drawn on you, and have been stopped by me. The article, number fourteen, is, you will perceive, for bills, which in all human probability will have been paid during the last year. The certainty of this transaction is doubtless with you, and what we are now upon is an estimate, not an account. The remaining articles speak clearly for themselves; wherefore I conceive myself well founded in making the amount of deductions in this estimate, nine millions one hundred and sixtythree thousand two hundred and sixtyfive livres; so that after including one year's interest, as is already mentioned, the total is five millions eight hundred and seventythree thousand one hundred and twentyeight livres, thirteen sols, and four deniers; and from this there must be some deductions, because undoubtedly you have paid some of the bills drawn on Spain and Holland before the first day of January last. I have mentioned no sum for this purpose, but in order to be within bounds, I will suppose it to be only three hundred and seventythree thousand one hundred and twenty eight livres, thirteen sols, and four deniers, and then the extent of the bills payable by you in the year 1781, will be five millions and a half of livres; and, therefore, the four millions granted by the Court, and the million and a half said to be stopped by you in Holland, will apply to this demand.

As the last mentioned sum appears by the Count de Vergennes' note, to have been part of that, which was given by the Court, this state of the matter will leave clear the ten million livres to have been loaned, and seems properly to consist with the Count's note of the 16th of May, and his letter to you of the 8th of June following. I have mentioned above, that in making the deduction for bills paid previous to the year 1781, I meant to be within bounds. It is proper to give a reason why I supposed that deduction to be so. I have already made one remark on the article A one two and F, in the account officially communicated by the Minister of France in September last. From those articles it appears at least that three million livres were advanced for the payment of bills last year. The amount of the interest bills, I have already stated as being in the extent, two millions one hundred and ninetythree thousand nine hundred and ninety livres, to this sum must be added one hundred and fortyfour thousand livres, due to M. Beaumarchais, and the one hundred and twentyfive thousand livres deducted in the estimate, as having been drawn for by the Resolutions of the 19th of May, 1780. These sums together amount to two millions four hundred and sixtytwo thousand nine hundred and ninety livres; to which I will add for contingencies one hundred and thirty seven thousand and ten livres more, making the whole amount two millions six hundred thousand livres; wherefore suppose the grant of moneys to pay bills for the year 1780, to have been but three million livres, and it appears evidently to have been at least that, there would have remained in your hands a balance of four million livres; which is more than I have deducted from the amount of my estimate.

On the whole, then, I conceive myself well grounded in the opinion, that the whole loan is still at our disposal, and this opinion is so well supported by the Count de Vergennes' letter to you, that I might with great propriety insist on that point. The letter, therefore, which I shall write with such act of Congress, as may be made, in consequence of yours of the 11th of June, will proceed entirely upon that supposition.

I must, however, remark to you in this place, that I by no means intend to insist rigidly with the Court, on points which may incommode them. We are neither in a situation to do it, nor would it be proper even if we were. But while I say this, I do not mean to preclude myself from such observations as my duty shall render necessary, on any transaction which has happened, or which may happen hereafter.

I enclose you an account, containing the extent of what I conceive to have been the appropriation of the supplies above mentioned, together with an invoice from the Board of War, amounting to the sum of one million seven hundred and seventyseven thousand five hundred and twenty livres and ten sols, and which I will call one million eight hundred thousand livres, from which it will appear, that there must remain, subject to my disposition, the sum of four millions at least, after replacing the Lafayette's cargo, and purchasing the articles mentioned in the invoice.

I have had the honor to mention to your Excellency, that I have the misfortune to differ in opinion with the Minister of France. This is upon two points, namely, the drawing of bills by me, and the amount of what may remain due by the Court. From the correspondence between us, which is contained in the enclosed papers, there will appear to have been some warmth on the occasion, but this rather arose from the nature of the transaction, than anything else. I know not what impression it may have left on his mind, but for my own part, as I greatly respect him, I sincerely feel for a situation, to which the orders of his Court have reduced him; and although the language of his letter of the 24th of November, evidently intended for his Court, was so pointed as to force me into the observations contained in mine of the 26th, in my own justification; yet I was almost as much wounded while writing, as he appeared to have been at reading it. I am much inclined to believe, that he wishes to place this business substantially in the same point of light that I do. The whole correspondence is enclosed, that you may be in a capacity to make any proper observations, which occasion may dictate.

Before I take up this correspondence more particularly, I must detain you one moment longer to mention the facts, which preceded it. Before my acceptance of the office I now hold, the Chevalier de la Luzerne informed me, that the Court had given money to the United States, with a determination that it should be at the disposal of General Washington, but that upon my acceptance, he would authorise me to draw for it. It was agreed between us, that I should draw for five hundred thousand livres, and so much be deposited to answer the drafts, and by giving him notice in season a new deposit of five hundred thousand livres should be made, and so on from time to time. Shortly afterwards, I formed a plan to get money from the Havana, and explained it to the Chevalier. He approved of it, and in consequence, I drew a bill on Messrs Le Couteulx & Co. the 17th of July, for five hundred thousand livres, but the capture of the Trumbull frigate prevented the negotiation of that bill, which being then on board of her, intended for Havana, was sunk with my despatches; and the knowledge that Colonel Laurens was then on his way with specie, together with the expectation of that, which was to be sent by the way of Holland, prevented a repetition of the experiment upon Havana at that time. It was previously to the 2d of July, 1781, that the Chevalier agreed that I should negotiate bills for one million five hundred thousand livres, of which the five hundred thousand livres to have been negotiated at the Havana, was a part.

You will see enclosed my letter of the 2d of July upon this subject, which was the day before M. de la Luzerne went to camp; and also M. de Marbois' answer to it. My reply of the 4th closes the matter at that time; and then it was understood on all hands in the manner I have just now mentioned, and which I have, you will perceive, insisted on through the whole of my correspondence, and which was equally insisted on in a variety of conversations.

That part of the letter last mentioned, which relates to the effect of drawing bills, together with the letters of the 2d and 3d of August, need no comment. They merely serve to show the desire, which animates the servants of the United States, to economise the resources of France. I am not disposed to criminate, but it is right that I should inform you of my opinion, which is, that the French troops in this country have cost much more than was necessary, if my information is not extremely erroneous. I have now in contemplation plans for feeding them more cheaply, and I think the French ration ought not to cost more than half a livre, at least not much more, if so much. The officers who now return to Europe can best answer, whether it has formerly exceeded that amount, and the Court must know how much has been lost on the negotiation of their bills. While on this subject it is my duty to add, that the Minister of France here, has demonstrated the most earnest desire to introduce economy in the expenditures of the army, and that the readiness shown by the Count de Rochambeau, and other general officers, to aid in it, demand acknowledgements.

On the 24th of September the Chevalier wrote me a note, of which a copy is enclosed. This, you will observe, was after the receipt of those letters, in consequence of which, he, among other things, communicated the account, on which I have already had the honor of making some remarks. This letter, while it assigns reasons for continuing my drafts, shows clearly that the Chevalier had communicated his instructions to stop them, which was done, not only to me, but to the committee. But I confess, that I was very far from considering those instructions as absolute. I concluded, that a line of discretion had been left to the Minister; and, indeed, his answer to my letter confirmed me in that opinion. This answer is of the 26th. He does indeed say, that it is impossible to depart from the precise instructions received on that subject, and authorise my drafts to the amount of two millions five hundred thousand livres; but he immediately goes on to permit an addition of two hundred and ninetyeight thousand nine, hundred and eightyone livres, fifteen sous, and four deniers. Wherefore, it followed, that either those instructions left him at liberty to extend those drafts, or that he was at liberty to disregard the instructions. I therefore did expect to have gone on to the sum first agreed for. These expectations were frequently mentioned in conversation, and particularly so in that alluded to in mine of the 22d instant.

On the other hand, I must acknowledge, that he always mentioned his instructions, but so as to leave me under the original impressions I had received. As this letter of the 22d takes notice of another matter, it is proper to mention here, that the Chevalier had observed on a difference between the account he delivered officially to the committee of Congress and the note to the Count de Vergennes; but no pointed conversation on this subject had taken place, he expecting further information from his Court, and I hoping daily to hear from you, and being unwilling to raise a question unnecessarily. The reason why I did at last bring it forward is contained in my letter, and therefore I shall say nothing about it. The account sent in that letter, needs no comment, although it differs very widely from that marked thirtythree.

I shall only note, that if the sum of six hundred and eightysix thousand one hundred and nine livres be taken from that mentioned as advanced for stores by order of Colonel Laurens, so as to render that article conformable to what is said in the Count de Vergennes' note, the same sum must be added to the balance; by which means placing the one million five hundred thousand livres, to have been drawn for by me, in the stead of that to have been sent out from Holland, the whole will stand as first above mentioned, leaving the amount of the loan untouched. In the close of my letter, I mention a determination to draw on account of the balance, an expression which appears to have been mistaken. The reason of the assertion will in some degree appear from the answer to it. I will add, that, although I shall not risk the drawing of bills while there is any chance that they may return protested, I must, nevertheless, take measures to obtain the money for very evident reasons, and it is with this view, that I have drawn on you in favor of Messrs Le Couteulx & Co. for one million livres.

You have also a copy of the letter written on the 24th instant, in answer to that last mentioned. I shall not here notice the difference between what we have said about the additional million, as well because it is in substance the same, as because I had not insisted on drawing for it. In like manner, I shall say nothing about the permission given me to extend my drafts after the orders to stop them brought by Colonel Laurens; but you will observe, that the pointed declaration, that the letter of the 26th of September could not leave me the shadow of a hope, &c. (with what follows it) stands in such direct opposition to the whole tenor of my letter and to the real state of my expectations, that to have submitted in silence, would have been tantamount to the acknowledgement of falsehood. It is indeed easy to perceive, that the Chevalier wrote this letter to his Court, although he directed it in the first instance to me; and I conclude it to have been in consequence of his last despatches, which had not been received long before his letter was written. The equivocal use of the expression as soon as possible will not escape you, Sir; but it shall meet no other remark from me than this, that I am convinced the Court will not apply it in the same sense with the Chevalier. Neither the dignity of the Prince, nor the magnitude of the occasion will permit a reliance on such distinctions.

The state of the account made in this letter, I really do not see the propriety of. It seems to have been, in some degree, extracted from the account furnished in September to the committee of Congress, because, if the mistake of six thousand livres in the castings of that account be rectified, it will make the first sum total amount to fifteen millions one hundred and ninetynine thousand five hundred and one livres, from which deducting ten million livres, being the amount of the subsidy of six million livres and loan of four, there will remain the first article of that account, namely, five millions one hundred and ninetynine thousand five hundred and one livres. But if this be the case, it is a little surprising, that the Chevalier should not have noticed a deduction made in that very account of the two first articles, amounting to three millions four hundred and sixteen thousand livres, which are, it is there said, to be added to the advances formerly made to the Congress.

It is somewhat extraordinary, that all these should be considered by the Chevalier as advances made in the month of September. For although that account was rendered in September, yet four millions six hundred and ninetyfour thousand three hundred and ninetytwo livres are expressly mentioned as being to be furnished. I shall dwell no longer here, but I must repeat, notwithstanding the polite manner in which the assertion has been contradicted, that my operations have received a very severe, as well as material check, from stopping my drafts; not so much on account of the value of the three hundred thousand livres, as because, while they were negotiating, I should undoubtedly have received those advices from you, which would have enabled me to go on in the same line. I had brought the exchange up very nearly to par, and should soon have sold at seventeen pence this money (Pennsylvania money) for a livre, or eight shillings and sixpence for a crown, which is worth here at the extent but eight and four pence. This would, therefore, have been two per cent advance, with a saving of time, freight, and insurance; and, although a very large sum could not have been negotiated during the winter, perhaps not more than one million five hundred thousand livres, yet that would have enabled me to go on making the preparatives for an early and vigorous campaign, and kept everything in train, till some money could have been either shipped from Europe, or so negotiated as to be sent hither from Havana.

I will take no notice of what is said in the letter now before us, as to the error of six thousand livres, because you must at once perceive how little it was an object of conversation, and how easy to be remedied by any clerk, without waiting either orders or instructions from the Court; and because you must also perceive the material omission of four million livres, which cannot be overlooked, let the calculations be combined as they may. I have not, however, the less concern about it, because so rigid an adherence to so palpable an error leads me to fear a design, which the generous conduct of the King will not permit me to suspect.

Having already given my sentiments as to the interest of Loan Office certificates, I will not now repeat them. As to the replacing the Marquis de Lafayette's cargo, it is a matter which I will not seriously contend about, because, although there will not be use for all the articles, there certainly will for many of them; and therefore I hardly think a representation on that score necessary, because there is no use in multiplying disagreeable considerations. But, by the way, I must observe, that it is a little extraordinary this cargo should have been replaced out of the loan to have been opened, &c. at your request, while at the same request money could not be obtained to pay the bills drawn by the order of Congress, as appears from your letter, and that from the Count de Vergennes, which is enclosed in it. The idea of making advances for any individual State from the funds of the United States, must never be admitted by any servant of Congress. It will be quite time enough to do that, when they shall have complied with the several requisitions made upon them, and when they shall have intrusted these subaltern negotiations to the Ministers whom Congress have appointed. Such advances stand on a very different ground, indeed, from those made for purchasing a like cargo to that of the Lafayette; and it cannot be expected, that they should be passed to the account of Congress. Besides this, the successes to the southward have rendered succors of that sort unnecessary. What has already been said will render observations on the letters of the 26th instant unnecessary.

On the whole matter, I have to request your exertions to have this affair settled as soon as possible, and that you will cause the whole of what remains to be paid over to Messrs Le Couteulx & Co. sending me notice thereof by every opportunity, that I may attend to the disposition of it. I mean, nevertheless, that a reservation should be made of what is necessary, to purchase the articles mentioned in the enclosed invoice of the Board of War. I wish you to have as little trouble as possible in this business, and, therefore, I am to request you to employ in it Mr Barclay, our Consul General, and Mr Matthew Ridley. They are both gentlemen of knowledge and integrity, and I doubt not will perform it with economy and expedition.

You will also be pleased to take arrangements with the Minister of Marine, and give your consequent orders to those gentlemen, so that all articles of every sort and kind, which are the property of the United States, and now in Europe, may come under safe convoy to this port. The Marquis de Lafayette, who is charged with the General's instructions on military subjects, will assist in combining matters, so as to accomplish these objects. I confide, Sir, that your wisdom and his vivacity will produce the most beneficial consequences.

Let me add, while I mention the depositing all which remains due to us with Messrs Le Couteulx & Co., that I wish you, in conformity to the Act of Congress enclosed, to pay the sum of fortytwo thousand one hundred and eightynine livres therein mentioned, with the interest, to William Lee. Let me also mention my desire, that you would retain two millions two hundred thousand livres to pay interest bills drawn from the 1st of September to the 1st of April next. I will take such arrangements as will save you the trouble of doing this business in future, and I mention it here, although the money will come more properly under the head of supplies to be asked from the Court for the ensuing year.

The declarations, that no more pecuniary aid will be afforded to us, are very clear and explicit, but I trust, that these declarations will not be adhered to. The interest bills, as I just now observed, will amount to about two millions livres. You have to pay M. Beaumarchais two millions five hundred and fortyfour thousand livres, and the clothing and stores necessary will amount to four millions livres. Besides all this we must have money, so that it will become necessary to obtain at least twelve millions. When I mention this sum, I take the lowest, and I do it from my sincere desire not to burden the finances of France with American demands; but I think such clear reasons can be assigned for it as must produce conviction.

You have a copy of my letter to the Chevalier of the 3d instant upon this subject. You will have observed, that my circular letter of the 19th of October, which was enclosed in this of the 3d instant, is so formed as to lower the expectations of the several States, and accordingly the account sent with it is framed from the erroneous one before mentioned, and the four millions are totally omitted. The languor of the States had been so fostered by their teeming expectations from France, that it became my duty to prevent if possible the ill effects of it. But on the other hand, a circular letter could not but be public, and it necessarily contained such matter as must stand in the way of procuring a proper settlement of past accounts with the Court, or of obtaining future supplies from them. I, therefore, communicated that letter to the Minister, and as he very naturally asked a copy, I took the first opportunity, after the many necessary copies could be made out, to send it with mine of the 3d instant. This contains, as you will perceive, some short reasons why we want, and why France should grant, pecuniary assistance. The answer to it of the 4th instant, and my reply of the 6th, close the correspondence on that subject.

This last was intended to take off from the force of those observations, as to the King's wisdom and integrity, which had rather more of republican simplicity, than courtly elegance. As my letter of the 3d was not intended to convince the Minister, that being unnecessary, as I am persuaded the conviction was already produced, but to prevent any improper conclusions from my circular letter, so it was unnecessary to make any particular reply to his observations, because, after all a paper argument in Philadelphia can have but very little influence at Versailles; and as the Chevalier observed very properly in one of his letters, the instructions from his Court must necessarily form the basis of his opinion. The proper and useful mode, therefore, of convincing him, is by stimulating them.

Knowing as I do the great force and compass of your talents, I should not presume to add one word of remark on the Chevalier's letter, if I were not convinced, that as it was written for the Court, so it will be necessary to oppose it in some degree by a knowledge of facts, which may not be in your immediate view. He takes it for granted, that the people will make extraordinary efforts, in consequence of their successes, and I will readily admit that they have the ability and ought to have the inclination; but they must differ much from former experience, if they do exert themselves. I will admit that their rulers ought to urge them into activity, but it must be remembered, that those rulers are themselves of the people, that their ideas and views are limited, and that they act like the people rather from feeling than reflection. I speak here of the several Legislatures, for I must repeat again and again, that our general system has not grown into that form and vigor, which can communicate the impulses of a sovereign mind to the remotest members of subjected power. I will admit that a Monarch, would on so brilliant a success, call into action, all which his kingdom possessed of strength and resources; but America is not under monarchical government. I will admit further, that if the object of the war was conquest, instead of security, every victory would give new animation to all the members of our republican confederacy; but this war is not carried on for conquest. While it rages in any quarter it makes food for itself. The inroads of the enemy create opposition. An application is then made immediately to the feelings of the people; but when the inroad ceases, when the enemy retires, the storm subsides, each man returns to his domestic pursuits and employments, and thinks no more of the scenes, which had just passed before him. It is true that this is only changing the field of battle. But America is so extensive, that a shock given at one extremity is lost before it reaches the other.

This true picture of our country, while it demonstrates the impracticability of subjecting it, explains the reasons why our exertions have always disappointed both our friends and our enemies. If then, as the fact is, the mere change of position at the option of the foe can so lull our people to rest, how much more are we to expect it will follow from the capture of a considerable part of his force. To reason rightly on the late events, we must admit the ability to make greater exertions, and then seek the means of calling them forth. This, Sir, can only be accomplished by pecuniary aid. The Chevalier observes that the King's obligations to us have been exceeded. This is but a narrow idea. If the King is engaged to support the war until our Independence is established, his simple object of inquiry will be, how that can be speedily and cheaply accomplished? It is certain that America ought to do everything in her power, and you may assure the Court, that Congress and the servants of Congress are sensible of this duty and determined to comply with it. But it is in vain to think of breaking the bounds of possibility, and equally vain to think of changing the nature of man.

Let me add, that there is little propriety in reproaching Americans with faults inseparable from humanity. Besides this, the exertions of our country have really been very great, and as soon as more consistency shall have been put in the administration, they will again be great; but this is the period of weakness between the convulsive labors of enthusiasm and the sound and regular operations of order and government.

There is in the end of the Chevalier's letter a hint in relation to our commerce, which although it does not immediately apply to the present purpose, must not pass unnoticed. That an indirect commerce has taken place with England is true, and that France has in a great measure been the cause of it is equally true. Men will naturally buy where they can obtain things most cheaply. The prime cost of goods, though a great object in time of peace is not equally so in time of war. The freight and the insurance are then so high that a small difference of danger or convenience will counterbalance a great difference of price. When France, by subscribing to the principles of the armed neutrality, gave her enemy the means of bringing her manufactures in safety to our neighborhood, she tempted our merchants to buy those manufactures. She added the motives of interest to the force of habit, and ought not, therefore, to be surprised that such cogent principles have had effect. One mode remained, that of convoying the trade between France and America, and that mode has been neglected. I am happy, however, to observe, that this British commerce is dwindling very fast. The war with Holland has given it one deadly blow, and if our privateers are once more freed from the shackles too hastily imposed upon them, I cannot doubt, but that the trade of this country will flow directly to France, as indeed it ought to do.

And now, Sir, before I close this letter, let me make one further observation with respect to the future supplies from his Majesty. To solicit them is considered as asking for assistance in a war, whose object is of the last importance to us. This is the point of view in which I have placed it, and in which I am desirous it should stand. But there is another method of looking at it, and, although delicacy will forbid us so to present it, yet you may depend upon it, that there are many, who have taught themselves to reason about it in a different way from what you or I would wish. Whether Britain will acknowledge our independence is a question, which is to be answered only with some modifications. If, in consequence of such an acknowledgement, we would forego our connexion with France, there is no manner of doubt, but she would make it immediately. This would on our part be wrong, and therefore it ought not to be done; but, Sir, when this great object shall be presented on the one side, and the weight of new and great taxes be felt on the other, with all their ancient prejudices and predilections in aid, will not there be some men who, for the shades of ease, will quit the paths of virtue?

I have the honor to be, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, November 29th, 1781.

Sir,

Having just now received a short letter from Mr Jay, of the 1st of September, from St Ildefonso, I find it my duty to communicate the contents immediately to the United States in Congress assembled. Mr Jay informs me, that he expects soon to be under the necessity of protesting the bills drawn on him; that Dr Franklin had hitherto saved that necessity, but that he cannot advance much more, unless by the express order of Congress. He says, further, that he has but little hopes of loans or subsidies from Spain; that the ship America is neither sold nor engaged, and that the Spanish Court seems determined to do nothing until the campaign ends.

I have the honor to be, &c.

ROBERT MORRIS.

TO MR GRAND.

Office of Finance, December 3d, 1781.

Sir,

When I was called to the superintendence of the American finances, it became necessary to appoint a banker, with whom to deposit the moneys, which were to be granted by the Court for payment of my bills. Your house naturally presented itself to my consideration, but as I knew you to have large accounts open, and as I wished that my transactions should be kept in a separate, clear, and distinct manner, I named for this purpose the house of Messrs Le Couteulx & Co. At the same time, I wrote to his Excellency, Benjamin Franklin, the Minister Plenipotentiary of the United States, upon that subject, and was honored with his answer two days ago. He has mentioned your services to my country in those warm terms of gratitude, which are due to early, vigorous, and disinterested exertions. My deep respect for the opinions of that worthy Minister, my desire, on all occasions, to evince the gratitude of my country, added to those favorable impressions, which your conduct has made upon my mind, have induced me to employ you as a banker in the affairs of the United States.

You will be pleased, Sir, to close your former accounts, and, in due season, to transmit them. For subsequent transactions, you will open new accounts, and, from time to time, keep me informed of the state of our affairs. The allowance formerly made of one half will be continued.

The intelligence lately received, gives strong hopes that the loan of five millions of guilders, opened in Holland, will have been completed before this reaches you. One million of these is appropriated to purchasing certain articles for our army; and I now direct one million to be deposited with you, and one million with the house of your brother in Amsterdam, subject to my drafts. The remaining two millions are to be shipped for this country.

As I am not positively instructed that this loan has succeeded, I do not venture to draw bills on you; but in case you shall be in cash for the United States, which I expect will happen, you will pay to Messrs —— & Co., for account of John Ross, the sum of two hundred thousand livres; to Messrs Le Couteulx & Co., for account of William Bingham, one hundred thousand livres, and to John Holker, for account of John Holker fils, the sum of one hundred thousand. From each of these persons you will take quadruplicate receipts, in the form following; "Received of ——, banker, by order of the Superintendent of the Finances of the United States of North America, on behalf of —— the sum of —— being so much paid by the said States to him, the said —— for which I have signed four receipts, all of this tenor and date. Done in Paris this —— day of —— 178—." You will be pleased, Sir, to forward to me three of the copies by different opportunities.

I am, Sir, &c.

ROBERT MORRIS.

TO M. JOLY DE FLEURY.

Philadelphia, December 3d, 1781.

M. de Fleury will have the goodness to pardon an entire stranger for intruding one moment on that attention, which is engaged in so many important objects. I have been called, Sir, almost at the same time with you, though in a different country, to the same office. The intimate alliance and connexion between our Sovereigns is such, that we are engaged in the same cause. My first steps have encountered difficulties, and you have afforded the first means of surmounting them. Thus, I flatter myself, from your clear view of the interests of France, that you are disposed to give pecuniary aid to America. I will not pretend to delineate the advantages resulting from it to the penetrating mind, which has already conceived them. I will only add my wish, that your name may be enrolled among those true friends of France, who, by espousing warmly the cause of this country, have shown themselves to be equally the friends of all human nature. To defend, to assert, and to vindicate the insulted rights of man shall be the solid monument of glory, which his Minister will industriously raise for your royal master. With every fervent prayer for their most perfect success, and with the sincerest esteem and attachment, I pray you to believe me to be, Sir, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, December 5th, 1781.

Sir,

I was yesterday morning favored with yours of the 12th of September, enclosing third copies of your two letters of the 26th of July, also a copy of Count de Vergennes' letter to you of the 23d of August. I find by these letters, that the idea I had entertained as to the advances made by the Court was not so favorable as the truth, and that the ten millions of livres, or five millions of florins to be borrowed in Holland, will be over and above those advances. How much pleasure I receive from that circumstance, you will easily conceive. It is an additional pleasure, that the labor of adjusting the matters mentioned in mine of the 27th of November, will be saved to you.

I am much surprised to find so large purchases made on account of the United States in Holland. If everything else were equal, the generous conduct of France towards us has been such, that I cannot but think that every possible preference ought to be given to the manufactures of that nation. But there is, in my opinion, very essential preferences of a different kind. The position of Amsterdam is unfavorable in a war with England to a commerce with this country. France also can, and I suppose will give convoy, to the articles procured there. But I will dwell no longer on the subject, for, I trust, that nothing of the kind will happen hereafter.

Should the loan be obtained, you will be so kind, Sir, as to deposit one million of florins with Mr Grand, to whom I will pray you to deliver the enclosed letter. I shall, in consequence, not draw upon you for a million of livres in favor of Messrs Le Couteulx &. Co. as I intended; and, in like manner, I beg leave to revoke what I have said on the subject of paying all balances into their hands, in my letter of the —— last. One million of florins you will also be pleased to deposit with the house of Grand at Amsterdam, sending me the precise address of both, so that I can direct my bills properly to them. Nearly one million will be necessary to pay the invoice sent in my letter of the —— last. The remaining two millions, I wish may be shipped from France in gold by proper vessels of war, which, I dare say, will readily be provided by M. de Castries.

I perceive you have not written to Congress on the subjects mentioned in the letter of the Count de Vergennes of the 23d of August, which I am glad of. The more that an opinion prevails here that we must succor ourselves, the more we shall do it; and, therefore, I shall not communicate what you have said for the present; but, as the best acknowledgement, I shall endeavor to further the operations against the common enemy, and draw forth all our resources for an early and vigorous campaign. The splendid and important success, which has crowned the combined arms in Virginia, is, I hope, only an earnest of what is to be done next year. These are the returns which we shall make to the King, for the aid he so generously affords. And I have a very particular satisfaction in assuring you, that throughout this country, a strong attachment to the French nation is daily taking place of that blind partiality, once felt for everything, which had the name of English. Let me add, for your use, a piece of mercantile information lately communicated to me from unquestionable authority. The demand for French goods in this country has raised the prices in France from twenty to thirty per cent. The importations have reduced the prices here nearly twenty per cent, and the exchange, you already know, has been raised considerably.

I shall say nothing to you in this letter on the subject of future supplies, further than what is contained in mine of the —— last, because I feel a conviction, that you will obtain such as may be necessary. I will only repeat what I have often said, let them be early. I enclose a letter to M. de Fleury, which you will either deliver or not, as may best answer your purposes.

I hope often to have the pleasure of hearing from you, and I pray you to believe me to be, with very great truth,

Dear Sir, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF NEW YORK.

Office of Finance, December 11th, 1781.

Sir,

I have been honored with your favor of the 24th of last month, covering resolutions of the Senate and Assembly of the 21st and 22d. You will easily conceive by what passes in your own bosom, how much I feel at a representation of distresses, while the necessity of revenue admits not of alleviation. The Legislature are undoubtedly best able to discover and to describe the evils, which afflict their constituents, and I should almost in any case, bend before so high an authority. But the situation, in which I am placed, compels me to make some observations, which if they are not admitted to have weight, will not I hope, be considered as foreign to the purpose.

It is contended by the State agent, that the supplies, which he has delivered, and those which he holds ready to furnish, amount fully to the demand for specific supplies. And it is lamented, that the army have subsisted from the neighborhood of West Point in former times, leaving thereby a great mass of certificates, which being useless to the inhabitants, the supplies obtained have to all intents and purposes, operated a tax. To this I will add, that the resolutions of your Legislature state an extra expense, which has produced a tax to the amount of one hundred and eighty thousand dollars. If these exertions joined to the ravages of the enemy, and the usurpations complained of, have occasioned distress, they at least demonstrate the abilities of the State in former periods. You will perceive, that I am now about to supply the troops by contract, wherefore a ready market for their produce must immediately be opened to the inhabitants of your State. This will enable them to obtain hard money, and that will enable them to pay taxes. The great object, therefore, of the Legislature will be to adopt a vigorous and just system of taxation, and to take off all those restraints upon the people, which injure, afflict, and impoverish them, without producing any advantage to the public. The army must be supplied by law or by force. The latter mode is detestable, and as to the former, certainly the best way, in which it can operate, is to raise taxes and purchase supplies; because by this means much less of the produce of the country is expended, and in the event, the payment of the people is by the produce of the country, that being the only source of national wealth.

As the Legislature seem to have great apprehensions on the score of former demands, I take the liberty of enclosing an estimate, which is formed on the supposition, that all the specific supplies shall have been delivered, which as I have already had the honor to observe, is contended for by the agent, though the truth of it cannot be admitted before the final adjustment of the amount. The burden of these demands would in such case be very moderate. It is my intention to destroy the paper money as soon as it can be called in. Wherefore a slight exertion for that purpose will relieve your State from the burden of it.

As to the extra expense, which has accrued to the State by calling new levies into the field, it is the business of the United States in Congress to determine upon it. It is, however, my duty to remark, that exclusive of the great expense of additional officers, the sum there stated as a bounty is fully equal to the pay and rations of so many men for six months. I am sure that I need not observe to your Excellency the impracticability of carrying on a war where it costs as much to enlist a man as it does to feed and pay him for six months. A few such extra corps raised in each State, and the bounties charged to the United States, in payment of the quota would immediately compel Congress to disband the whole army for the want of the means of subsistence, or to permit the troops to plunder the inhabitants.

In the midst of those complaints of your situation I receive a particular pleasure from the assurance that the Legislature will contribute to the general service of the Union their proportion of well established funds. I hope the recommendation for that purpose will soon come under the consideration of the United States and be duly expedited.

I have the pleasure to add, Sir, that a report from this office for the full and final settlement of accounts is now before the Congress. Whenever a determination shall have been made it will be transmitted.

With perfect respect and esteem I am, &c.

ROBERT MORRIS.

TO THE GOVERNORS OF NORTH CAROLINA, SOUTH CAROLINA, AND GEORGIA.

Office of Finance, December 19th, 1781.

Sir,

In my circular letter on that subject, I have already had the honor to transmit the requisitions of Congress, contained in their Acts of the 30th of October and 2d of November last, by which the quota of your State for the year 1782 is —— dollars, payable in quarterly payments, commencing the 1st day of April next.

The distresses which your State has lately suffered, will not, I fear, permit the collection of this quota in hard money, although the subsistence of the army will naturally call for an expenditure to a great amount in such articles as the State can furnish. The mode hitherto pursued of granting receipts and certificates by every one empowered or employed to impress or purchase, cannot but be attended with much confusion and difficulty, if not with oppression and fraud. It is the duty of those who are intrusted with the management of the public affairs, to prevent as much as possible these evils, and as much as possible to equalize and diminish those burdens, which the people must bear. It would give me great pleasure to be put in such a situation, as that I might at once contract for the supplies of the southern army; but I have not specie for the purpose; nor do I find that taxes are yet laid in the Southern States to procure it. Wherefore, I must wait yet some time, until the public treasury is replenished, until the hard money now in America gets somewhat more diffused, and until I have a prospect of receiving back from those States in hard money their quota of the public taxes.

In this situation of things, I have devised and proposed to the Delegates of the three Southern States, the following plan. To appoint a Receiver of the taxes in each State, agreeably to the Act of Congress, and to empower such Receiver to issue notes on the warrants of the General, payable in those taxes, or from the amount of them when collected. By which means those articles necessary for the consumption of the army may be purchased, and the quota of the State be thereby paid.

The Delegates of North and South Carolina thought the plan eligible, but one of the Delegates of Georgia was disinclined to that part of it, which requires the previous passing of a law to raise the quota of taxes called for by the United States. I am this morning informed, that upon a reconsideration of the matter, a majority of the Delegates of South Carolina are also of opinion, that it would be better not to make the enacting such a law an indispensable part of the system. I am very sorry for this circumstance, because, as all the Delegates from the three States mentioned, approve of the plan in other respects, I did expect their warm recommendation of it to their respective Legislatures; for your Excellency will perceive at a single glance, that it originated in the sincere desire of relieving those States, and has that relief for its object, as far as the public service of the United States will possibly permit.

Those gentlemen who object to making a tax bill the preliminary to any issues of the notes, have proposed as an expedient, a law, promising the payment of the notes when taxation shall become practicable, compelling the receipt of them in payment as specie, and limiting the prices of those articles, which the army may want. This is done to obviate two objections, which are supposed to be against taxation, that the state of the country will not admit of the collection, and that those who have no property left but lands, cannot pay the taxes without extreme distress.

Before I go into any detailed observations on these subjects, I beg leave to state one general reason why I must insist on the tax law, even if in other respects I should have no material objections to the expedient proposed. As Superintendent of the Finances of the United States, it is my duty to urge a compliance with the requisitions of Congress, and, therefore, to facilitate that compliance; but I should betray the trust reposed in me, if by any expedient whatever, I assisted in eluding those requisitions. With me, therefore, the propriety of passing the tax bill can admit of no question; and in consequence, my orders are precise, to prevent the issue of a single note, until such bills shall have been enacted, and effectual provision made for the collection.

I shall now take the liberty of trespassing on your patience, with some observations as to the two laws proposed. And first, as to the expediency of taxing, and the weight of the objections against it. When it is considered, that the expenditures of the army, (supposing the war to be carried on in the Southern States, must greatly exceed the amount of the sums called for from those States,) one position is clear, that by complying with the requisitions of Congress, a balance of money must necessarily be brought in from the other States, to supply the deficiency of the whole revenue in those particular States, when compared with the amount of the whole expenditure. But by neglecting to comply with the requisitions of Congress, (as it will be impossible to supply the army in the same regular manner, which prevails elsewhere,) the whole cost of the expenditure will fall in the first instance on those who are near the seat of war, subject to a future settlement of accounts. Besides which, it is demonstrable, that this latter mode of supply, which is at present practised, is very wasteful and expensive. Nor is this the only objection, though certainly a very strong one. We must further consider, that according to the present mode of taking supplies, the burden falls very unequally on the inhabitants, and of course, very unjustly. I fear that, with truth, it may added, that in some instances, it is attended with strong circumstances of distress.

Hence, then, I conclude that the propriety of taxation is evident, unless the reasons against it are of weight sufficient to counterbalance the inconveniences, which would result from neglecting it. I proceed, therefore, to examine them. And first, as to the state of the country and the means of collection. It is clear that within the enemy's lines, taxes cannot be collected; but out of them, they certainly may be. For, surely, it is as easy to compel a man to pay money by seizing his property, as it is to seize that property for the subsistence of the troops. There is, however, this additional advantage in taxing, that those may be compelled to pay, who have not articles useful for the army, as well as those who have. The objection, that those who have land only will be distressed by the sale of it, will have just as much weight as the Legislature may choose to give it; for if no taxes are raised on land, the objection will vanish, and certainly the Legislature will be in capacity to determine whether any tax should be laid on it, and what that tax should be.

But, further, it appears that the objection is calculated to favor the rich, who are great landholders, in preference to the poor, who labor on a small plantation; and how far this may be either wise or just is not for me to determine. I will, however, suggest an expedient, that, as the taxes are payable quarterly, the first two quarters' tax should be raised on the polls, the slaves, and other personal property in the State, and the land tax be paid on the last quarterly instalments. This will give the several landholders room to turn themselves, so as to provide for their several appropriations in season. I will just add under this head, that if (as there is some reason to hope) the southern States should be totally evacuated, the extension of their commerce will soon obviate every objection, which can possibly be in the way of taxation.

I must observe further, that those States, which delay the levying of taxes to answer present requisitions, will become totally incapable of complying with future calls, and consequently, we shall always be dealing in doubts and uncertainties, instead of establishing that confidence and vigor, which alone can perfect our independence.

I come now to the proposed law for compelling the receipt of the notes and regulating the prices of articles. My opinion of all such laws is decidedly fixed. I know both from reason and experience, that they injure the credit of the paper they appear designed to support. They show doubts in the mind of the Legislature, they communicate those doubts to the breasts of the people, the credit of the paper is then destroyed before it is issued, and all the after operation of the law is one continued scene of fraud and iniquity. If, therefore, such tax bill shall be passed as will permit issuing the notes in question, I entreat, that on no representation, nor for any cause whatever, any law be passed making the notes a tender, valuing the price of goods, or anything of that sort. I ask for no embargo, no regulations. On the contrary, I wish and pray, that the whole detestable tribe of restrictions may be done away, and the people be put in possession of that freedom, for which they are contending. I have no system of finance, except that which results from the plain self-evident dictates of moral honesty. Taxation and economy are the two pillars by which that system is supported, and if the several States will provide the former, I will pledge myself for the latter, as far as my abilities will permit.

To return then, Sir, to the plan I have to propose. It is simply this. I expect that the Legislature of your State will immediately pass laws to collect by the days named, the sums called for from them for the service of the year 1782. To facilitate the collection and payment of the taxes, I consent to receive the notes signed by the Receiver of the continental taxes for your State. If, therefore, the Legislature approve of my plan, they will merely add a clause rendering those notes receivable by their collectors as specie, in the continental taxes. They will, I doubt not, provide the ways and means by which the Receiver shall compel the several collectors to pay over whatever sums, either of those notes or of hard money, they may have received. This will leave it purely optional with the people to take the notes, or to let them alone. If the taxes are collected, they must either pay those notes or hard money. If they pay hard money, the notes will not be necessary. If they pay the notes, the public will already have received the value of them, in the articles for which they are first paid.

I enclose the form of the notes and the denominations, and I will appoint the Receiver of the continental taxes for your State, as soon as I can fix on a proper person, and prepare the necessary instructions. In the meantime, the law may easily be passed, with a clause directing the mode in which the appointment of such Receiver shall be announced to the public.

I have the honor to be, &c.

ROBERT MORRIS.

TO THE GOVERNOR OF RHODE ISLAND.

Office of Finance, December 29th, 1781.

Sir,

I have been favored with your letter of the 3d of last month, and am much obliged to you for the information it contains. There is now before Congress, on a report from this office, a plan for liquidating and adjusting the accounts of the several States, and I should sooner have answered your letter, if I had not expected the pleasure of sending forward the Act of Congress on that subject with my letter.

I have no doubt but that the State over which you preside, has made great exertions in the common cause, and but for the exertions, which have been made, the enemy would long since have been more successful. Every State in the Union claims the merit of extraordinary efforts, and whose claim is the best, I will not pretend to ascertain; but I feel it to be my duty to observe, that nothing but a continuance of active exertions on our part can possibly assure those objects, for which so much has already been done and suffered. Persuaded that the wisdom of your Legislature will feel equally with me the force of this observation, I have no doubt but that the requisitions of Congress, for the service of the year 1782, will be punctually complied with.

With respect to the impost law, I will not say anything more about it, than merely to remind you of what has already been said in former letters. The time is hastening on, when it must be determined, perhaps forever, whether the United States of North America shall, or shall not, possess the inestimable jewel of public credit. In the meantime, the conduct of those in public life, as far as it relates to this object, must determine whether or not they are really the friends of their country. Mr Warren, who is now I suppose with you, will, I doubt not, give you every information, which may be required as to the situation of our affairs, and his genius and talents will enable him to place in a much stronger point of view than any letter from me, the importance of complying with the requisitions of the United States. I hope, Sir, you will pardon me for adding, that if every State in the Union has an equal right with yours to wait until others have complied, the Congress may spare themselves the trouble of doing any further business, and their constituents may be spared the expense of keeping them together. I need not, I am persuaded, go into detail of the consequences.

With perfect respect and esteem, I am, &c.

ROBERT MORRIS.

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, January 3d, 1782.

Sir,

Although it is now eleven months since Congress recommended an impost of five per cent on goods imported, and on prizes and prize goods, the States of Massachusetts, Rhode Island, and Maryland, have not yet complied with that recommendation.

I will not repeat the arguments to induce a compliance, which are contained, either in my letter of the 27th of July, or elsewhere; that is unnecessary. The object of this letter is to make a representation, which can no longer be delayed consistently with the duties I owe, either to myself, or my country. And although it is principally designed for those three States just mentioned, yet I transmit it to the other States, (in a letter, of which the copy is enclosed,) because all ought to know what is interesting to all.

Convinced that the impost recommended was not sufficient, I had devised some additional funds for the payment of our debts, and the support of our credit. These I should have submitted to the consideration of Congress, had the States complied with their former recommendations.

In a circular letter, dated the 19th of October last, I had the honor to mention an order prohibiting Loan Officers from issuing certificates in payment of interest, together with the reasons for which it was made. That order has already produced much clamor among the public creditors. This I expected, and I still expect that it will occasion much more.

The public debt is considerable, and the public credit must be lost, if the interest of it be not provided for. Congress have done their duty in requesting revenue, and I have done mine in soliciting a compliance with their request. It only remains for me to bear testimony against those who oppose that compliance, and to declare, that they and they only, must be responsible for the consequences. They are answerable to the other States, to their fellow citizens, to the public creditors, and to the whole world.

I must speak plainly on this subject. I must point out from time to time, the reason of those things, which have produced murmurs and complaints against the representative body of America. I must direct those who suffer, to those who occasion their sufferings, and those who are injured to those who have done them wrong. Let me then once more entreat, that this great object be seriously considered. Let me repeat, that the hope of our enemy is in the derangement of our finances; and let me add, that when revenue is given, that hope must cease. He, therefore, who opposes the grant of such revenue, not only opposes himself to the dictates of justice, but he labors to continue the war, and of consequence to shed more blood, to produce more devastation, and to extend and prolong the miseries of mankind.

I have the honor to be, &c.

ROBERT MORRIS.[2]

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, January 8th, 1782.

Sir,

I have the honor to transmit herewith an ordinance passed by the United States in Congress assembled the 31st day of December, 1781, incorporating the subscribers of the Bank of North America, together with sundry resolutions recommending to the several States to pass such laws as they may judge necessary for giving the said ordinance its full operation. The resolutions of the 26th of May last speak so clearly to the points necessary to be established by those laws, that I need not enlarge on them. Should anything more be found necessary upon experience, the President and Directors will no doubt make suitable applications to Congress, or to the States respectively, as the case may require.

It affords me great satisfaction to inform you that this Bank commenced its operations yesterday, and I am confident that with proper management, it will answer the most sanguine expectations of those who befriend the institution. It will facilitate the management of the finances of the United States. The several States may, when their respective necessities require, and the abilities of the bank will permit, derive occasional advantages and accommodations from it. It will afford to the individuals of all the States a medium for their intercourse with each other, and for the payment of taxes more convenient than the precious metals, and equally safe. It will have a tendency to increase both the internal and external commerce of North America, and undoubtedly will be infinitely useful to all the traders of every State in the Union, provided, as I have already said, it is conducted on principles of equity, justice, prudence, and economy. The present directors bear characters, which cannot fail to inspire confidence, and as the corporation is amenable to the laws, power can neither sanctify any improper conduct, nor protect the guilty. Under a full conviction of these things, I flatter myself, that I shall stand excused for recommending in the strongest manner, this well meant plan, to all the encouragement and protection, which your State can give, consistently with wisdom and justice.

I have the honor to be, &c.

ROBERT MORRIS.