The Diplomatic Correspondence of the American Revolution, Vol. 12
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Title: The Diplomatic Correspondence of the American Revolution, Vol. 12
Editor: Jared Sparks
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*** START OF THE PROJECT GUTENBERG EBOOK THE DIPLOMATIC CORRESPONDENCE OF THE AMERICAN REVOLUTION, VOL. 12 ***
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.
To M. de la Luzerne. Office of Finance, November
3d, 1781, 3
Little probability of being able to raise an
adequate revenue.--The people are unaccustomed
to taxation.--Large sums must be applied to
extinguishing the public debt and calling in
the depreciated paper currency.--France must be
relied on to assist in this emergency.--Important
advantages will result to France herself from
this step.
To the President of Congress. Office of Finance,
November 5th, 1781, 8
Relative to the Acts of Congress for raising
supplies.--Objections to certain clauses.--Final
apportionment of the expenses between the States.
To M. de la Luzerne. Office of Finance, November
6th, 1781, 14
Necessity of pecuniary aid from France.
To the Count de Rochambeau. Office of Finance,
November 15th, 1781, 15
Repayment of money advanced by the Court.--
Congratulationson the success at Yorktown.
Circular to the Governors of the States. Office of
Finance, November 17th, 1781, 16
Transmitting Acts of Congress for raising supplies.
George Washington to Robert Morris. Mount Vernon,
November 19th, 1781, 17
Payment of the officers of the army.
To the Governor of Connecticut. Office of Finance,
November 20th, 1781, 18
Accounts between the State and the United States.--
The moneys designed for the general service
must be paid into the Continental treasury.
Report of a Letter to Don Bernardo de Galvez, made
to Congress, November 21st, 1781, 20
Settlement of accounts for sums advanced.
To M. de la Luzerne. Office of Finance, November
22d, 1781, 22
Pecuniary aid promised by him.--Rate of
exchange.--Statement of former grants of his
Court.
To M. de la Luzerne. Office of Finance, November
26th, 1781, 26
Answer to the Minister's assertion, that he is not
authorised to make further drafts.--Moneys
advanced to any particular State are not
chargeable to the United States.
To B. Franklin. Office of Finance, November
27th, 1781, 27
Requests him to communicate this letter to M. de
Lafayette.--Confusion of the public accounts.--
Account of his efforts to obtain supplies from
the States.--Difficulties attending this attempt.--
Causes of the difficulties.--Endeavors to settle
past accounts, and to procure funds for the public
debt.--Prospect as to future supplies in the United
States.--Statement of the supplies already
furnished by France.--Account of his correspondence
with M. de la Luzerne on the drawing of bills by Mr
Morris, and the amount due by the French
Court.--Disposition of moneys remaining in Dr
Franklin's hands.--Languor of the States in
providing for the expenses of the war.--Necessity
of further aid from France.
To the President of Congress. Office of Finance,
November 29th, 1781, 57
Enclosing a letter from Mr Jay, declaring his
inability to meet the drafts made on him.
To Mr Grand. Office of Finance, Dec. 3d, 1781, 58
Informs him of his intention of employing him as
United States banker.
To M. Joly de Fleury. Philadelphia, December
3d, 1781, 60
Importance of furnishing pecuniary aid to the
United States.
To B. Franklin. Office of Finance, December 5th, 1781, 61
Impolicy of the purchases in Holland.--Disposition
of the loan, if obtained.--Disposition of the
Americans towards the French.--Increasing demand
for French goods.
To the Governor of New York. Office of Finance,
December 11th, 1781, 63
Supplies furnished by the State.
To the Governors of North Carolina, South Carolina,
and Georgia. Office of Finance, December
19th, 1781, 66
Proposing a plan for the payment of the Southern
army.--Necessity of a tax law by the States for
effecting this purpose.--Answer to the objections
against this measure.--Objections to measures
compelling the receipt of the notes payable in
taxes, and regulating prices.
To the Governor of Rhode Island. Office of Finance,
December 29th, 1781, 72
Necessity of continued activity on the part of the
States.--Necessity of prompt compliance with the
requisitions of Congress.
Circular to the Governors of the States. Office of
Finance, January 3d, 1782, 74
Negligence of certain States to lay the impost
recommended by Congress.--Fatal effects of a
derangement of the finances.
Circular to the Governors of the States. Office of
Finance, January 8th, 1782, 76
Establishment of the Bank of North America.--
Advantages of the institution.
To the Governor of Rhode Island. Office of Finance,
January 14th, 1782, 78
Answer to the representations of the Assembly, of
their inability to comply with the requisition of
Congress.--Necessity of providing funds.--
Insufficiency of specific supplies.--Rhode Island
manufactures.
To the President of Congress. Office of Finance,
January 15th, 1782, 81
State of the currency.--Advantages of a general
currency.--Use of metals as a circulating
medium.--Silver the best money standard.--Utility
of coinage.--The decimal ratio is the most
convenient.--Plan of a metallic currency.
George Washington to Robert Morris. Philadelphia,
January 25th, 1782, 95
Proposes to send officers to the New England
States, with representations of their
deficiencies of troops.
To the President of Congress. Office of Finance,
February 11th, 1782, 97
Financial embarrassments.--Refusal of several
States to comply with the requisitions of
Congress.--No prospect of foreign aid.--Measures
taken in the Department of Finance.--Advantages
of prompt and vigorous measures in the field.--
Necessity of requiring men and money from the
States.--Proposes a series of resolutions,
calculated to accomplish the desired object.--
Superior advantages of Continental forces.
Circular to the Governors of the States. Office of
Finance, February 15th, 1782, 110
No further foreign aid is to be expected.--
Necessity of establishing a public credit by
proper funds.--Financial distresses.--Necessity
of preparations for a new campaign.--Explanation
of the system of raising supplies by contracts.--
Statement of his proceedings on this system.--The
public service interrupted by local and party
dissension.--Exhortations to union, energy, and
promptness of action.
To the President of Congress. Office of Finance,
February 18th, 1782, 118
Proposing the appointment of Commissioners for the
settlement of the accounts of the Commissary,
Quarter Master, Hospital, and the Marine.--Frauds
in these departments.
Circular to the Governors of the States. Office of
Finance, March 9th, 1782, 121
Settlement of public accounts to 1782.
To Mr Grand, at Paris. Office of Finance, March
9th, 1782, 122
Intends to draw bills on him.
To the President of Congress. Office of Finance,
March 9th, 1782, 123
Mismanagement in the purchase of goods in Holland.--
Directs Dr Franklin to sell those of British
manufacture, and to dispose of the rest.
To the Baron D'Arnot. Office of Finance, March
18th, 1782, 124
Prussia may secure a share of the American commerce
by opening her ports.--Cannot agree to purchase
supplies of Prussian subjects at St Thomas's.
To B. Franklin. Office of Finance, March 23d, 1782, 125
Mode of renewing sets of exchange, on account of
certain lost bills.
To Oliver Phelps. Office of Finance, March 30th, 1782, 126
Advantages of raising supplies by private
contracts.--Declines entering into any engagement
favoring Massachusetts in the purchases.
Circular to the Governors of the States. Office of
Finance, April 15th, 1782, 129
Transmitting Acts of Congress recommending the
statement of accounts between the United States
and the respective States up to 1782.--Importance
of settling the quotas and contingents of the
States.
To Nathaniel Appleton. Office of Finance, April
16th, 1782, 131
Necessity of establishing a public fund.
To B. Franklin. Office of Finance, April 17th,
1782, 132
Giving him notice of drafts to be drawn on Mr
Grand.
To John Jay. Office of Finance, April 23d, 1782, 134
Enclosing a letter to the Secretary of Foreign
Affairs.
George Washington to Robert Morris. Head Quarters,
April 23d, 1782, 134
Appointment of an Intendent to decide on disputes
between the army and the contractors.--Expresses
his satisfaction with the system of contracts.
To Major General Greene. Office of Finance,
April 24th, 1782, 135
Inefficiency of the confederacy.--Financial
difficulties.--Abolition of partial payments.--
Neglect of the States.
To the Governor of Virginia. Office of Finance,
April 27th, 1782, 138
Enclosing his correspondence with the French
Minister on the assumption by the United States
of the debt of the State of Virginia, for supplies
advanced by France.
To the Secretary of Foreign Affairs. Office of Finance,
April 27th, 1782, 140
Desires a statement of the expenses of the Foreign
Department.
To the Governor of Maryland. Office of Finance,
April 30th, 1782, 140
Estimate of expenditure for the current year.--
Intends to give publicity to the accounts.
To John Wendell. Office of Finance, May 1st,
1782, 142
Explaining the plan, objects, and operations of
the National Bank.
Report to Congress on a Memorial of the Merchants
of Philadelphia. Office of Finance, May 4th, 1782, 144
On the subject of convoys for American ships.
To the President of Congress. Office of Finance,
May 8th, 1782, 145
The French Minister having given notice that no
further advances will be made by his Court, it
becomes necessary to provide for the payment of
the foreign Ministers.--The Minister desires a
settlement of the accounts between France and the
United States.
Circular to the Governors of the States. Office of
Finance, May 9th, 1782, 147
Redemption of the old Continental money.
To the President of Congress. Office of Finance,
May 10th, 1782, 150
Enclosing a statement of American commerce.
Circular to the Governors of the States. Office of
Finance, May 16th, 1782, 151
The requisitions of Congress inadequate to meet
the expenditure.--Neglect of the States to
comply with the requisitions.--Fatal results of
this neglect.
To the President of Congress. Office of Finance,
May 17th, 1782, 154
Fatal neglect of the States to raise supplies.--
Requests to be advised as to the expedience of
sending the preceding circular.--The receipts of
the previous five months equal only to one fourth
of the daily expense.
To B. Franklin. Office of Finance, May 17th, 1782, 156
Desiring a statement of the moneys at his disposal.
To Mr Grand. Office of Finance, May 17th, 1782, 157
Transmitting bills on Dr Franklin.
To Mr Grand. Office of Finance, May 18th, 1782, 159
The state of commerce renders it impossible to sell
bills on France.--Requests him to make shipments
of specie.
To Messrs Le Couteulx & Co. Office of Finance,
May 18th, 1782, 161
Reasons for employing Mr Grand as United States
banker.
To B. Franklin. Office of Finance, May 23d, 1782, 162
Claims of Beaumarchais.
To the President of Congress. Office of Finance,
May 23d, 1782, 163
The pecuniary supplies for 1782 have been
anticipated.--Amount and expenditure of the same.
To the President of Congress. Office of Finance,
May 27th, 1782, 165
Enclosing information from the French Minister
of the sums advanced by his Court.
Information mentioned in the above Letter, 165
To B. Franklin. Office of Finance, May 29th,
1782, 167
Claims of Beaumarchais.
To Daniel Clarke. Office of Finance, May 30th, 1782, 168
Answer to the charges contained in Mr Clarke's
letter.
To the President of Congress. Office of Finance,
May 31st, 1782, 178
Proposes to bring the accounts of each department
under one head.
To George Olney, of Rhode Island. Office of Finance,
June 1st, 1782, 180
Importance and advantage of laying accurate
accounts of the public expenditures before the
nation.
Caron de Beaumarchais to Robert Morris. Paris,
June 3d, 1782, 182
Urging the settlement of his accounts.
Abstracts mentioned in the preceding Letter, 184
To George Washington. Office of Finance, June
4th, 1782, 189
Financial deficiencies render it impossible to
pay the army.
To Edward Carrington, in Virginia. Office of Finance,
June 6th, 1782, 190
Objections in Virginia to receive Mr Morris's
notes in taxes.
To the Secretary of Foreign Affairs. Office of
Finance, June 7th, 1782, 191
There are no funds to pay either the principal
or the interest of the public debt.
To Daniel Jenifer, of Maryland. Office of Finance,
June 11th, 1782, 192
On the objections of Maryland to the
apportionment of the expenses.--Other States
entertain the same opinion.--Specific supplies
more expensive than specie.
To the Governor of Connecticut. Office of Finance,
June 14th, 1782, 194
Declining to delay the publication of the
receipts from Connecticut.
To James Lovell, of Massachusetts. Office of
Finance, June 16th, 1782, 195
Reasons for publishing the receipts from the
States.
To George Washington. Office of Finance, June
21st, 1782, 196
Requesting him to take measures for the payment
of the debts contracted by American officers,
prisoners in New York.
To the Governor of Rhode Island. Office of Finance,
June 26th, 1782, 196
Objections to the payment of troops by the
separate States.
To George Washington. Office of Finance, June
29th, 1782, 197
Disputes between the contractors and the officers
of the army.--Reason for providing for the civil
list before paying the army.
To B. Franklin. Office of Finance, July 1st,
1782, 199
Statement of money advanced by France.--Reasons
for preferring a loan to a grant.--Cargo of the
Lafayette.
To Alexander Hamilton. Office of Finance, July
2d, 1782, 203
Announcing his appointment as Receiver for New
York.
To M. Jolie de Fleury. Office of Finance, July
5th, 1782, 205
Community of the interests of America and France.
To Mr Grand. Office of Finance, July 5th, 1782, 206
Accounts between Mr Grand and the United States.
To the Governor of Maryland. Office of Finance,
July 9th, 1782, 206
Supplies furnished by Maryland.--Importance of the
financial department in the conduct of the war.
To James Lovell, of Massachusetts. Office of Finance,
July 10th, 1782, 208
Importance of a national credit.--The sums drawn
on him may be met by sales of the bills.
To the Governor of Maryland. Office of Finance,
July 29th, 1782, 210
Specie can be raised for taxes by adopting
proper measures.
To the President of Congress. Office of Finance,
July 29th, 1782, 211
Advantages of loans in cases of extraordinary
expenditure.--Different kinds of loans.--Relative
advantages of domestic and foreign loans.--Necessity
of establishing public credit.--This must be done
by funding the public debt.--Amount of the debt.--
Impolicy of raising money by loans, without
previously providing the necessary funds.--Impolicy
of attempting to pay the interest of domestic debts
by foreign loans.--The revenue granted must be
sufficient for the purpose.--Nature of the revenue.--
Advantages of a land tax.--Answer to objections
against it.--Poll tax.--Excise.--The collection
of the tax.--Appropriation of the revenue.--Funded
debt.--Sinking fund.--Answer to the objections against
speculations in the funds.--Back lands.--Disputes as
to the property and disposition of them.--Manner in
which they may be rendered productive.
To the President of Congress. Office of Finance,
July 30th, 1782, 238
Enclosing estimates for the year 1783.--Necessity
of establishing a navy.--Mode of raising the
estimates.
To the Governor of Rhode Island. Office of Finance,
August 2d, 1782, 242
The impost recommended by Congress has been
laid by all the States except Rhode Island.--Reply
to the objections against passing the impost.--The
refusal of Rhode Island suspends the whole
operation of the impost.
To Sir Guy Carleton. Office of Finance, August
20th, 1782, 248
Exchange of prisoners.
To Alexander Hamilton. Office of Finance, August
28th, 1782, 248
Regrets his retirement from the office of
Receiver.--Weakness of the confederacy.--Mode
of collecting the taxes.
To George Washington. Office of Finance, August
29th, 1782, 252
Declares himself unable to supply the army.
To George Washington. Office of Finance, August
30th, 1782, 254
Object of the preceding letter.
To the President of Congress. Office of Finance,
September 9th, 1782, 255
Urging the adoption of measures for raising a loan.
To George Washington. Office of Finance, September
9th, 1782, 256
Failure of his resources.
To Messrs Willink & Co., Amsterdam. Office of
Finance, September 24th, 1782, 256
Intends to draw bills on them.
To Messrs Le Couteulx & Co., Paris. Office of
Finance, September 24th, 1782, 257
Reasons for desiring that the money of the United
States in Holland should be sent by the way of the
Havana.
To B. Franklin, John Adams, and John Jay. Office of
Finance, September 25th, 1782, 259
Transmitting Acts of Congress.
To John Adams. Office of Finance, September
27th, 1782, 260
Congratulating him on his success in Holland.
To Messrs Le Couteulx & Co. Office of Finance,
September 27th, 1782, 261
Directs money to be placed in their hands. Terms
on which it may be remitted to the Havana.
To B. Franklin. Office of Finance, September
27th, 1782, 262
Transmitting instructions to obtain a loan from
France.--General disposition of the nation toward
the French.--Attempts of the English to effect a
reconciliation.--Reliance of Congress on the
continuance of aid from France.--Necessity of
immediate relief.--Vicious mode of taxation.
To B. Franklin. Office of Finance, September
27th, 1782, 270
Disposition of the loan mentioned in the
preceding letter.
To B. Franklin. Office of Finance, September
30th, 1782, 271
Improvident purchases of American agents in
Europe.--The stores belonging to the United
States in Europe must be shipped.--Mr Grand's
accounts.--Interest on the Dutch loan.--Reports
of peace produce inaction on the part of the
States.
To B. Franklin. Office of Finance, October 1st,
1782, 274
Directing application for a convoy from Havana to
an American port, for moneys to be shipped at the
former place.
To M. de la Luzerne. Office of Finance, October
2d, 1782, 275
Requesting him to make representations to his
Court on the necessity of a loan.
To Alexander Hamilton. Office of Finance, October
5th, 1782, 275
Circulation of his notes.
To B. Franklin. Office of Finance, Oct. 7th, 1782, 278
Shipment of money.
To George Washington. Office of Finance, October
15th, 1782, 279
Impossibility of supplying money for the army.
To the Governor of North Carolina. Office of Finance,
October 7th, 1782, 280
Specific supplies cannot be received in the place
of money.--Objection to the imposing of any
restrictions on the exportation of certain articles,
for the purpose of facilitating the obtaining of
those articles by the United States.
To Major General Greene. Office of Finance,
October 17th, 1782, 283
Supplies for the army.--Disposition of the States
to furnish specific supplies.
George Washington to Robert Morris. Head Quarters,
October 18th, 1782, 285
Expenses incurred in forwarding information to
the Marquis de Vaudreuil, at the request of M.
de la Luzerne.
Circular to the Governors of the States. Office of
Finance, October 21st, 1782, 286
Unable to fulfil his engagements with the
contractors.--Compelled to enter into new
contracts on less favorable terms.--The want
of revenue increases all branches of the
expenditure.--The war is protracted by the
want of resources.
To the Governor of Rhode Island. Office of Finance,
October 24th, 1782, 291
Negligence of the States to meet the requisitions
of Congress.--Loans, or military collections of
supplies the only alternative.--Loans cannot be
obtained without the establishment of funds.--These
may be raised by laying the impost recommended
by Congress.--Answer to the objections to that
measure.
To B. Franklin. Office of Finance, October 27th,
1782, 296
Assumes the debt of Virginia, contracted for
supplies from France.
To the Governor of Cuba. Philadelphia, November
27th, 1782, 297
Requesting his assistance in negotiating bills
at Havana.
To Thomas Barclay, in Paris. Office of Finance,
December 5th, 1782, 298
Enclosing Acts of Congress appointing him
Commissioner to settle the accounts of the
United States in Europe.--Method of proceeding
to be adopted.--Account of Beaumarchais.--Heads
under which the accounts must be stated.
To the President of Congress. Office of Finance,
December 12th, 1782, 306
Reporting a bill regulating the rates at which
foreign coin shall be received at the treasury.
George Washington to Robert Morris. Head Quarters,
December 20th, 1782, 308
Inscription on the cannon to be presented to the
Count de Rochambeau.
To B. Franklin. Office of Finance, January 11th, 1783, 309
Has overdrawn on Mr Grand.--Difficulties in raising
supplies.--Is obliged to extend his drafts still
further.
To B. Franklin. Office of Finance, January 13th, 1783, 312
Supplies.--Payment of the salaries of the foreign
Ministers.
To Mr Grand. Office of Finance, January 13th, 1783, 314
Amount of bills issued on Europe.
To M. de la Luzerne. Office of Finance, January
13th, 1783, 316
Explanation of the excess of drafts on Mr Grand
over the funds in his hands.--Necessity of further
aid for the current year.
To John Adams. Office of Finance, January 19th, 1783, 322
Wishes to be informed of the state of the loan in
Holland.
To the President of Pennsylvania. Office of Finance,
January 20th, 1783, 323
Pennsylvania has not complied with the
requisitions of Congress.
To George Washington. Office of Finance, January
21st, 1783, 324
Suspicions of illicit transmission of money for
commercial purposes under pretence of relieving
prisoners.--Secret service money.
To the President of Congress. Office of Finance,
January 24th, 1783, 325
Resigning his office, on the ground that the
debts are increased without any provision for
the payment of them.
To the President of Congress. Office of Finance,
February 26th, 1783, 327
Desires permission to make known his resignation.
To George Washington. Office of Finance, February
27th, 1783, 327
Informing him of his resignation.
To William Carmichael, in Madrid. Office of Finance,
March 4th, 1783, 329
Drawing on him to the amount of the bills
protested by Mr Jay.
To the President of Congress. Office of Finance,
March 8th, 1783, 330
On the payment of the public debt.--Justice requires
that it should be paid.--Power of Congress in this
respect.--The States should be required to pay
their quota of the debt, or to comply with a general
plan adopted by Congress.--Method of making the
apportionment.--The collectors must be appointed
by the United States.--The revenue must continue
till the extinguishment of the debt.--Objections
to the impost.--Land tax.--Plan of terminating
all accounts open between the United States
and the individual States.
George Washington to Robert Morris. Head Quarters,
March 8th, 1783, 336
Regretting his resignation.--Apprehensions of the
consequences.
To the President of Congress. Office of Finance,
March 10th, 1783, 337
Enclosing an estimate of the public debt on the
1st of January, 1783.
To Major General Greene. Office of Finance,
March 14th, 1783, 338
Reasons of his resignation.--Provision for the
public debt.
To the President of Congress. Office of Finance,
March 17th, 1783, 339
No further aid can be expected from Europe.--Loan
in Holland.--Probable amount of money on hand.--
Expenditure.--Extinction of the public credit.--
Defence of himself from the charges brought forward
in the newspapers.
To the Receivers of Continental Taxes in the several
States. Office of Finance, April 7th, 1783, 344
Enclosing an account of the receipts and
expenditures during his administration.
Circular to the Governors of the States. Office of
Finance, April 7th, 1783, 345
Enclosing statements of the receipts and
expenditures for 1781 and 1782.
To a Committee of Congress. Office of Finance,
April 14th, 1783, 345
Settlement of accounts.--Payment of the army.
To Alexander Hamilton. Office of Finance, April
16th, 1783, 347
Marine agency.--Necessity of economy in the
expenditure.
To the President of Congress. Office of Finance,
April 23d, 1783, 348
Enclosing specimens of a coin for the proposed
mint.
To the President of Congress. Office of Finance,
May 1st, 1783, 349
Correcting erroneous statements of a committee of
Congress appointed to confer with him relative to
his continuance in office.--Reasons for his
resignation.--Motives for consenting to continue in
office.--Conditions of this consent.
To the President of Congress. Office of Finance,
May 3d, 1783, 355
Consenting to continue in office.
To M. de la Luzerne. Office of Finance, May
6th, 1783, 355
Requesting an advance of money in America.
Circular to the Governors of the States. Office of
Finance, May 12th, 1783, 356
Further supplies from France are not to be
expected.--Confusion of the accounts.--Anticipation
of the revenue.--Necessity of supplies from the
States.
To Thomas Barclay, Agent for settling the Public
Accounts in Europe. Office of Finance, May
12th, 1783, 359
Confusion in the accounts occasioned by the bills
drawn by Congress on the Ministers in France,
Spain, and Holland.--Settlement of the accounts.
To B. Franklin. Office of Finance, May 12th, 1783, 360
Confusion produced by the bills drawn by
Congress.--Amount of the bills.
To a Committee of Congress. Office of Finance,
May 15th, 1783, 362
Account of the state of the financial
department.--Resources foreign and domestic.--
Expenses of the army.--Political and military
motives for disbanding the army immediately.
To Major General Greene. Office of Finance,
May 16th, 1783, 367
Calumnies against public officers.
To B. Franklin. Office of Finance, May 26th, 1783, 369
The people is never ready to tax itself.
To B. Franklin. Office of Finance, May 26th, 1783, 370
Urging a renewal of application for aid.--The
taxes shall be devoted, as far as possible, to
the repayment of any advances.--Situation of the
finances.
To M. de la Luzerne. Office of Finance, May 27th,
1783, 372
Requesting his interposition with his Court in
favor of the application for further aid.
To George Washington. Office of Finance, May 29th,
1783, 373
Misrepresentations of his motives and
conduct.--Exertions to procure pay for the army.
Circular to the Governors of the States. Office of
Finance, June 5th, 1783, 375
The army has been paid in notes.--Incumbent on
the States to furnish means of discharging them.
Circular to the Governors of the States. Office of
Finance, July 11th, 1783, 376
Necessity of supplies from the States to meet
the notes issued to the army.
Report to Congress relative to the Pay of the
Army. Office of Finance, July 15th, 1783, 378
Method of discharging the notes issued by the
Superintendent of Finance.--Amount advanced to
the army.
To the President of Congress. Office of Finance,
July 18th, 1783, 380
Recapitulation of the circumstances connected with
the payment of the army.--Reason for presenting
these facts in the form of a letter.
To Mr Grand. Office of Finance, July 25th, 1783, 386
Requesting that his bills may be honored, although
exceeding the funds in Mr Grand's hands.
To the President of Congress. Office of Finance,
July 28th, 1783, 387
Urging a reduction of the public expenditure.--The
civil list.
Circular to the Governors of the States. Office of
Finance, July 28th, 1783, 389
State of the finances.--Reduction of expenses.--
Misrepresentations of his motives.
Report to Congress respecting transferable
Certificates. Office of Finance, July 31st, 1783, 393
Reasons why the debts of the treasury have not
been evidenced by transferable certificates.
To the President of Congress. Office of Finance,
August 1st, 1783, 394
Amount and proportions of the payments by the
States.
To Messrs Willink & Co. Office of Finance, August
6th, 1783, 396
Amount and nature of drafts on them.--Desires
that they may be met at all events.
George Washington to Robert Morris. Head Quarters,
August 6th, 1783, 397
Advances of money required for transporting cannon
and stores to the upper posts.
To George Washington. Office of Finance, August
12th, 1783, 399
To the Paymaster General. Office of Finance,
August 12th, 1783, 399
Embarrassed situation of the finances.
To Elbridge Gerry. Office of Finance, August
26th, 1783, 400
Different requisitions of Congress.--Objections to
the proposition for changing the mode of settling
accounts.--Objections to the proposal to relinquish
any part of the requisitions.
George Washington to Robert Morris. Rocky Hill,
August 30th, 1783, 406
The design of occupying the western posts is
relinquished.
To George Washington. Office of Finance, September
2d, 1783, 406
Expressing his satisfaction at the relinquishment
of the design of occupying the western posts.
Circular to the Commissioners of Accounts. Office
of Finance, September 4th, 1783, 407
Instructing them to make inquiries illustrative
of the state of the country in its geographical,
moral, political, and commercial relations.
To John Adams. Office of Finance, September
20th, 1783, 411
Insufficiency of the confederation.--General
satisfaction with the peace.
To B. Franklin. Office of Finance, September
20th, 1783, 413
Prejudices against France.--Causes of the return of
American commerce to Great Britain.--Fatal influence
of the British navigation act on the commerce
of England.--The true interest of the European
powers is to open the West India ports to
American vessels.--Remissness of the people in
paying taxes.--Debt due the Farmers-General.
To Arthur Lee. Office of Finance, Oct. 4th, 1783, 418
Facts relating to a contract with Mr Deane,
concerning shipments on the public account.
To M. de la Luzerne. Office of Finance, October
15th, 1783, 420
Case of M. Holker.
To Messrs Willink & Co. Office of Finance, October
23d, 1783, 420
Sum requisite above the estimated amount of the
taxes.--Present rate of exchange favorable to the
United States.--Plan adopted for drawing the sum
desired.
To the Farmers-General of France. Office of Finance,
November 4th, 1783, 423
Plan adopted by Congress for the payment of the
sums due the Farmers-General.
Report to Congress on an Extract from the Journals
of the General Assembly of Pennsylvania. 424
Relative to the mode of proceeding of the
commissioner for settling the accounts of the
State.
To John Adams. Office of Finance, November 5th, 1783, 436
Approves his plan of remittances from the United
States.--The interference of the Dutch government
in the loan is not desirable.
To Messrs Willink & Co. Office of Finance, December
31st, 1783, 437
Giving them notice of his drawing bills on them,
and requesting their acceptance at all events.
To Messrs Willink & Co. Office of Finance, December
31st, 1783, 439
The apprehensions which impede the loan are
groundless.
To the President of Congress. Office of Finance,
January 13th, 1784, 441
Confused state of the accounts of the secret and
commercial committees.
To Messrs Le Couteulx & Co. Office of Finance,
January 13th, 1784, 443
Requesting them to meet certain bills.
To the President of Congress. Office of Finance,
January 16th, 1784, 444
Transmitting a demand for supplies advanced to
American prisoners.
To the President of Congress. Office of Finance,
January 21st, 1784, 445
Claims of individuals for damages done by the
army.--Plan of an Act relative to this subject.
To the President of Congress. Office of Finance,
January 24th, 1784, 449
Proposing the appointment of a commissioner for
settling the claims of individuals for services
rendered, or supplies furnished in Canada.
To the President of Congress. Office of Finance,
February 2d, 1784, 451
To Messrs Le Couteulx & Co. Office of Finance,
February 12th, 1784 452
Draws bills on them, and remits tobacco.
To Mr Grand. Office of Finance, February 12th,
1784, 454
Requests him to meet certain bills if necessary.
To Messrs Willink & Co. Office of Finance, February
12th, 1784, 455
Reasons for drawing on them beyond the funds in
their hands.--Manner in which the bills may be
met.
To Messrs Willink & Co. Office of Finance, February
12th, 1784, 459
The resources of America are not sufficiently
known.
To B. Franklin. Office of Finance, February
12th, 1784, 461
Desires that some measures may be taken to meet
his bills.--Intended remittances.
To B. Franklin. Office of Finance, February
13th, 1784, 463
Amount of the actual engagements of his
Department.--General engagements for the public
service.--Bills of exchange unpaid.--Debt to the
national bank.--Means of payment.
To Thomas Jefferson. Office of Finance, February
25th, 1784, 468
Arrearages of requisitions.--Unfunded
expenditures.--Estimate of the Civil List.
Proposed expenses of the Civil List, 476
To the President of Congress. Office of Finance,
March 17th, 1784, 478
Failure of the Dutch loan.--Bills protested for
non-acceptance.--Amount of funds in Europe, and of
bills drawn.--Necessity of prompt supplies.
To Jacob Read, member of a committee of Congress.
Office of Finance, March 30th, 1784, 482
Advises a demand of the arrearages from the States,
previous to making new requisitions.--Objections
to the Loan offices.
To Thomas Jefferson. Office of Finance, April
8th, 1784, 485
The number of banks unfavorable to the plan of
raising loans.--Objections to premiums on loans.
To the President of Congress. Office of Finance,
April 29th, 1784, 486
Defence of his conduct in regard to the appointment
of Receivers of taxes.--Objections to Loan offices.
To the President of Congress. Office of Finance,
May 6th, 1784, 489
Amount of his engagements.--Requests the adoption
of arrangements for administering the Financial
Department.
To the Marquis de Lafayette. Office of Finance,
May 19th, 1784, 490
Requesting his influence in establishing a free
port in the Isle of France or Bourbon.--Commercial
and political advantages of the measure.
To the Governor of Rhode Island. Office of Finance,
June 21st, 1784, 493
Urging a compliance with the requisitions of
Congress for funding the public debt.
To M. de Marbois, Chargé d'Affaires from France.
Office of Finance, August 17th, 1784, 494
Arrangements for paying the interest on the French
loans.
To the President of Congress. Office of Finance,
September 30th, 1784, 496
Success of the Dutch loan.--Necessity of making
proper provisions for the payment of the public
debt.
To B. Franklin. Office of Finance, September
30th, 1784, 498
Payment of the salaries of the foreign
Ministers.--Attachment of United States property
in France.
To the President of Congress. Office of Finance,
September 30th, 1784, 501
Services of M. de Lafayette.
Advertisement. Philadelphia, October 11th, 1784, 502
Announcing his having made arrangements for
redeeming his public engagements and his notes in
circulation.--Pledges his personal responsibility
for the payment.
To the President of Congress. Office of Finance,
November 1st, 1784, 502
Enclosing his commission as Superintendent of
Finance.
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]
[1] _November 3d._ This day, on the invitation of the Minister of
France, I attended at the Romish Church at a _Te Deum_, sung on
account of the capture of Lord Cornwallis and his army. Soon after
arrived the colors taken by General Washington with that array,
which were brought by Colonel Humphreys to Chester, there met by
Colonel Tilghman, and thence conducted hither by those two
Aid-de-Camps of the General. The city troop of light horse went
out to meet them, and became the standard bearers, and twentyfour
gentlemen, privates in that corps, carried each of them one of the
colors displayed. The American and French flags preceding the
captured trophies, which were conducted down Market street to the
Coffee House, thence down Front to Chestnut street, and up that
street to the State House, where they were presented to Congress,
who were sitting; and many of the members tell me, that instead of
viewing this transaction as a mere matter of joyful ceremony,
which they expected to do, they instantly felt themselves
impressed with ideas of the most solemn nature. It brought to
their minds the distresses our country has been exposed to, the
calamities we have repeatedly suffered, the perilous situation,
which our affairs have almost always been in; and they could not
but recollect the threats of Lord North, that he would bring
America to his feet on unconditional terms of submission. _Diary._
* * * * *
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]
[2] _January 7th._ This day the National Bank of North America
opens to transact business. This institution I am persuaded will
flourish under the management of honest men and honest measures.
The present directors are such men, and the present system of
measures are founded in principles of justice and equity.
Therefore, I shall most cheerfully assist all in my power, to
establish and support this Bank. And as a beginning, I have this
day issued my warrant on the treasury for two hundred thousand
dollars in part of the shares, which I have subscribed, on behalf
of the public. _Diary_
* * * * *
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.
* * * * *
TO THE GOVERNOR OF RHODE ISLAND.
Office of Finance, January 14th, 1782.
Sir,
The delegates of Rhode island did me the honor to communicate your
Excellency's letter of the 24th of last month, directed to them. I
have carefully considered that letter, and now, agreeably to my
promise made to them, shall endeavor to convey my sentiments upon it
to you. You mention, Sir, that the Assembly unanimously concluded,
that the sum of two hundred and sixteen thousand dollars, called for
by Congress, to be so large as that it could not by any means be
raised in specie, and you say, further, that the scarcity of cash has
become uncommonly great.
By the Acts of Congress on that subject, you will perceive the amount
of taxes called for by the United States, to be eight millions of
dollars. I cannot pretend to say, that the apportionment has, or has
not been equal; but I am persuaded it is as nearly so as the
information, which could have been obtained, would by any means admit.
The whole sum, Sir, however large it may appear, is very much short of
our former annual expenditures; and, I am sorry to add, that it is
certainly short of what will be necessary, even with the strictest
economy. I am compelled on this occasion to observe, that the want of
credit is now materially felt. Other free nations find infinite relief
from the oppressive weight of taxation by anticipating the public
revenue; but we, with every advantage from nature to prevent it, are
obliged to bear now those burdens, which ought, in reason, to be
divided with succeeding generations. To obtain credit, we must provide
funds amply sufficient, not only to pay the interest of all former
debts, both foreign and domestic, but also sufficient to liquidate
those, which we may find it necessary in future to contract. These
funds must be permanent, clear, sufficient, and at the disposition of
Congress. Nothing short of that will answer the purpose.
In the meantime, the interest of our debt is as great as if such funds
were given; and to pay that interest will cost as much to the people;
but the complaints from every quarter, until it be provided for, do
infinite injury. Whereas, if funds were granted, we might from time to
time obtain loans, both at home and abroad, sufficient to defray a
great proportion of our annual expenditure. You will easily perceive
what relief the people would feel from paying the interest instead of
the principal. As to the want of money, your Legislature must
consider, that there must always be such want from the very nature of
things, because nothing gives to money its value, but the universal
desire of obtaining it; and, of consequence, the ease with which all
the necessaries, conveniences, and luxuries of life are obtained in
exchange for it. It is the value of money, which has induced all wise
nations to raise the supplies in coin, rather than in produce, because
there is nothing, which so facilitates the economy of public
resources. And the great object of a wise and just government is, to
reduce as low as possible the burdens, which the people must bear, for
their own preservation, safety, and advantage. The want of money
always has been, and now is complained of throughout the United
States. This want will, however, be soon remedied in some degree by
the bank paper; and further, it must be remembered, that as the public
wants will call for an expenditure faster than the collection of
taxes will take place, those taxes will by no means decrease the
general circulating medium, and if that medium be, as is said and as I
really believe, deficient, commerce will continue, as at present, to
increase it by the daily importation of specie from abroad.
The taking of specific supplies has, by experience, been found unequal
to the object, and is extremely wasteful and expensive. Many articles
produced in the several States, in themselves very valuable, will by
no means admit of transportation; and even those, which will admit of
it, can seldom be brought to the place where they must be consumed,
but at an expense which, in many instances, exceeds the original
value.
I am convinced, nevertheless, that there is force in your observation,
on the propriety of expending within the State as much of the revenue
drawn from it as can consist with the general interest of the Union.
This, Sir, must, nevertheless, depend in a great degree upon the
cheapness with which your citizens will furnish such things as the
public may want. While they industriously make and cheaply vend those
things, which the necessities of mankind require, they need not
apprehend a want of money; for as, on the one hand, he will get most
of a commodity, who will give for it the most money; so, on the other,
he will get the most money who will give for it the most of a
commodity. Your honorable delegates inform me, that many articles fit
for our use, and in particular blankets and woollen stockings, are
manufactured in your State, and can be afforded to the United States
on good terms. If so, it is very probable, that not only the revenue
called for may be expended there, but even a greater sum. I will give
orders to the Clothier General to make inquiries immediately as to
the quantities and prices of articles proper for his department in
your State; and to purchase, if they can be had upon proper terms.
As to making any agreement for specific articles, I cannot undertake
it, because I have already made contracts for most of the articles,
which we may want, payable in money; and I am too distant to judge of
prices; nor is it possible for the human mind in that complicated
scene, which engrosses every moment of my time, sufficiently to attend
to such minute details. The business of government must be simplified,
in order that it may be well conducted, and to do this is with me a
very principal object. Your Excellency will perceive, that I am
authorised to appoint a Receiver of the Continental taxes within the
several States, and I shall make the appointment within your State
very speedily. I have every disposition to comply with your wishes,
and will give such instructions to the Receiver, as that he may from
time to time facilitate the views of the Legislature and lighten the
burdens of the people, which I sincerely assure your Excellency is an
object that lies nearest my heart.
I have the honor to be, &c.
ROBERT MORRIS.
* * * * *
TO THE PRESIDENT OF CONGRESS.
Office of Finance, January 15th, 1782
Sir,
Finding by the Act of the United States in Congress of the 7th
instant, that I am instructed to prepare and report a table of rates,
at which the different species of foreign coins most likely to
circulate within the United States shall be received at the Treasury,
I have been induced again to turn my attention to an object, which has
employed my thoughts very frequently, and which would have been long
since submitted to Congress, had I not been prevented by other
business, and much delayed by those things relating to this business,
which depended upon others. I shall now pray leave to deliver my
sentiments somewhat at large on this subject.
The United States labor under many inconveniences and even
disadvantages which may at present be remedied, but which, if suffered
to continue, would become incurable, and lead to pernicious
consequences. It is very fortunate for us, that the weights and
measures used throughout America are the same. Experience has shown in
other countries, that the efforts of the legislator to change weights
and measures, although fully seconded by the more enlightened part of
the community, have been so strongly opposed by the popular habits and
prejudices, that ages have elapsed without producing the desired
effect. I repeat, therefore, that it is happy for us to have
throughout the Union the same ideas of a mile and an inch, a hogshead
and a quart, a pound and an ounce. So far our commercial dealings are
simplified and brought down to the level of every capacity.
With respect to our money, the case is very widely different. The
ideas annexed to a pound, a shilling, and a penny, are almost as
various as the States themselves. Calculations are, therefore, as
necessary for our inland commerce as upon foreign exchanges. And the
commonest things become intricate where money has anything to do with
them. A farmer in New Hampshire, for instance, can readily form an
idea of a bushel of wheat in South Carolina, weighing sixty pounds,
and placed at one hundred miles from Charleston; but, if he were told,
that in such situation it is worth twentyone shillings and eight
pence, he would be obliged to make many inquiries, and form some
calculations before he could know that this sum meant in general what
he would call four shillings; and even then he would have to inquire
what kind of coin that four shillings was paid in, before he could
estimate it in his own mind, according to the ideas of money, which he
had imbibed. Difficulties of this sort do not occur to farmers alone.
They are perplexing to most men, and troublesome to all. It is,
however, a fortunate circumstance, that money is so much in the power
of the Sovereign, as that he can easily lead the people into new ideas
of it; and even if that were not the case, yet the loose state in
which our currency has been for some years past, has opened the way
for receiving any impressions on that subject.
As we are now shaking off the inconveniences of a depreciating medium,
the present moment seems to be that, in which a general currency can
best be established, so as that in a few months, the same names of
money will mean the same things in the several parts of the United
States.
Another inconvenience, which admits of the same easy remedy, and which
would indeed be cured by the very same Act, is the want of a legal
tender. This is as necessary for the purposes of jurisprudence, as a
general currency is for those of commerce. For although there is great
impropriety, not to say injustice, in compelling a man to receive a
part of his debt in discharge of the whole, yet it is both just and
proper, that the law should protect the honest debtor, who is willing
to pay, against the vexatious suits of an oppressive creditor, who
refuses to receive the full value.
The nature, value, and use of money have always occasioned strong
temptations to the commission of fraud, and of consequence, the
practice of counterfeiting is coeval with that of coining. No
government can guard its subject entirely against the wicked
ingenuity, which has been exercised in this respect. But it has always
been the object of every wise government to take all the precautions
against it, which are within the compass of human ability. These
precautions will be least effectual where the coins are so numerous,
that the knowledge of them being a kind of science, the lower order of
citizens are constantly injured by those who carry on the business of
debasing, sweating, clipping, counterfeiting, and the like. It is,
therefore, to be lamented, that we have so many different coins in the
United States.
It is not necessary to mention what is in everybody's mouth, that the
precious metals were first used as bullion, and that the inconvenience
of weighing, and the difficulty of assaying introduced the practice of
coining, in order that the weight and fineness, might be known at the
first view, and of consequence, the value be instantly ascertained. It
is equally unnecessary to observe, that the great privilege of
declaring this value by particular marks has, among all nations, been
vested exclusively in the Sovereign. A trust so important could not
indeed be vested anywhere else; because the danger of abusing it was
too great. And history informs us, that Sovereigns themselves have
not on this occasion behaved with that integrity, which was alike due
to their subjects and to themselves, to the interests of their people
and their own personal glory.
Experience has already told us, that the advantage of gold as a coin
is in this country very considerably diminished, for every distinct
piece must be weighed before it can be safely received. Both gold and
silver coins are indeed preferable in one respect to common bullion,
that the standard is presumed to be just, and consequently, they are
received without the delays and expenses of assaying. It must,
however, be remembered, that they are all foreign coins, and of
course, we are not only exposed to the tricks of individuals, but
should it suit the interest or convenience of any Sovereign to make
base money for us, there is nothing to prevent it. If, for instance,
the King of England, or any of his Birmingham artists, should coin
guineas worth but sixteen shillings sterling, our citizens would
readily and freely receive them at twentyone shillings sterling. It is
my duty to mention to Congress information I have received, that
guineas of base metal are coined at Birmingham so well as to escape
any common attention. Now there can be no doubt, that every such
guinea received here would be a national loss to us of an English
crown. How much we suffer in this way at present it is impossible, to
estimate.
What I have already had the honor to observe contains some of the
reasons why it appears to me highly necessary, that an American coin
should be adopted without delay, and to these reasons it may be
added, that there is a want of small money for the common occasions of
trade, or that it is more felt by our soldiery than any other persons.
For the little pay, which they do receive, being either in gold or at
best in dollars, the sutlers and others with whom they have dealings,
continually take the advantage of their want of change, and rate the
prices of their goods accordingly.
Shortly after my appointment, finding that there was a considerable
quantity of public copper at Boston, I ordered it round to this place.
It has safely arrived, and will when coined amount to a considerable
sum. The necessary machinery of a mint can be easily made, and there
are persons who can perform the whole business. I must pray leave,
therefore, to submit to Congress some few more particular remarks on
this subject, as introductory to a plan for an American coin.
Although most nations have coined copper, yet that metal is so impure,
that it has never been considered as constituting the money standard.
This is affixed to the two precious metals, because they alone will
admit of having their intrinsic value precisely ascertained. But
nations differ very much in the relation they have established between
gold and silver. In some European countries an ounce of pure gold
passes for fifteen ounces of pure silver. In others for fourteen. In
China it passes for much less. The standard, therefore, which is
affixed to both metals is in reality affixed to neither. In England,
gold is to silver nearly in that proportion of one to fifteen, and in
France nearly of one to fourteen. If a man carries fourteen ounces of
gold from France to England he receives two hundred and ten ounces of
silver, which in France purchases fifteen ounces of gold. In like
manner he who carries from England fourteen ounces of silver to France
receives one ounce of gold, which in England purchases fifteen ounces
of silver. If it be, then, supposed that the coins of these two
countries were alike pure, it must follow that in a short time all the
gold coin of full weight would be in England, and all the silver coin
of full weight in France. But the light silver circulating in England,
and the light gold in France, the real standard of coin in each would
be different from the legal, and seek a medium of fourteen and a half
of silver for one of gold, although the legal standard might still be
in the one place fifteen and in the other fourteen.
The demand which commerce might make for any of the precious metals,
in preference of the other, would vary this real standard from time to
time, and in every payment a man would get more or less of real value
for his debt, according as he was paid in the coin of greater or less
value, in relation to the real standard. If, for instance, the debt
were contracted when the silver was to gold as one to fifteen, and
paid when as one to fourteen; if the debt were paid in silver he would
gain one thirtieth, and if in gold he would lose one thirtieth. In
England the money standard is rather affixed to gold than to silver,
because all payments are made in the former; and in France it is
rather affixed to silver than to gold.
Arguments are unnecessary to show, that the scale by which everything
is to be measured ought to be as fixed as the nature of things will
admit of. Since, therefore, a money standard affixed to both the
precious metals will not give this certain scale, it is better to make
use of one only. Gold is more valuable than silver, and so far must
have the preference. But it is from that very circumstance the more
exposed to fraudulent practices. Its value rendering it more portable
is an advantage, but it is an advantage, which paper possesses in a
much greater degree, and of consequence the commercial nation of
England has had recourse to paper for the purposes of its trade,
although the mass of circulating coin is gold. It will always be in
our power to carry a paper circulation to every proper extent. There
can be no doubt, therefore, that our money standard ought to be
affixed to silver.
But silver is liable, like everything else, to a change of value. If
there is a demand for it to export, the value will rise; if the
contrary it will fall; and so far it cannot be considered as a fixed
measure of value. Before this objection be considered it will be
proper to make a few reflections on another part of the present
subject; but in this place I remark, that if the objection cannot be
removed, we must not suffer it to be preponderate, because it weighs
alike against every other metal.
To coin money is a certain expense, and of course it is an expense,
which must be borne by the people. In England the coin when melted
will sell as bullion for just as much as its weight in other coin. The
expense of coinage is paid by the Crown, and of course is raised by
taxes from the people. In France the coinage instead of being
expensive yields a profit. The price given for metal at the mint is
about eight per cent less than the same quantity will yield when
coined at the French standard. Both of these methods are liable to
objections. When commerce demands an exportation of bullion from
England, the coin of the kingdom goes out in common with others. This
increases, of course, the national expense of coinage. Laws to prevent
the exportation, or importation of any thing so valuable as money are
always nugatory, because they always _can_ be eluded, and therefore
when private interest requires it they always _will_ be eluded. That
the guineas of England, therefore, are not continually going away is
to be attributed to the extraordinary value affixed to gold, which has
just been mentioned, and which banishes silver continually. In France
the people are not liable to this inconvenience, because their money
passing for more than its value in bullion, bullion will always be
exported in preference to coin. But, for the same reason, there is
always a strong temptation to imitate their coin and send it for the
purchase of their commodities. It would be both impossible and
unnecessary to distinguish the true from the false, because both would
be of equal intrinsic value. The place at which they were struck would
be indifferent to the receiver. Of consequence, the foreigner who made
French coin, would gain; by his trade, and the French nation would
lose proportionably.
The money paid for coining, or the coinage of France has, however,
this advantage, that the money is a standard, which does not fluctuate
with the price of bullion. This coinage is, as has been said, about
eight per cent. When bullion is below ninetytwo, it is carried to the
mint; when above ninetytwo, to the broker, or the silversmith. The
coin still continues fixed, nor will it bear exportation until bullion
rises to a hundred, when the French coin would be as liable to
exportation as the English. In that case, it would be exported on one
hand, while on the other no more would have been coined for a
considerable period, because to make the eight percent coinage, it
would be necessary that the mint price should be ninetytwo. The coin,
therefore, could not long be exported, if at all, but would resume its
value. The price of bullion must float between ninetytwo and a
hundred, while the coin would preserve its fixed quality as money.
Hence then, it appears proper, that the price of coining should be
defrayed by the coinage; because, first, it is natural and proper,
that the price should be paid when the benefit is received, and that
the citizen in return for the advantage of being ascertained in the
value of the medium of commerce by the sovereign, should pay for
ascertaining it, just as much as that he should pay for the fashion of
the plate he uses, or the construction of the cart he employs.
Secondly, it is right that money should acquire a value as money,
distinct from that which it possesses as a commodity, in order that it
should be a fixed rule, whereby to measure the value of all other
things. And thirdly, it is wise to prevent the exportation of coin,
which would involve an unnecessary national expense, and also to
prevent the imitation of it abroad, so as to create a national loss.
For both of which purposes, it is proper that the coinage should only
defray the expense, without making any considerable profit. The laws
usual in all countries, with respect to the money, will then fully
operate the effect intended.
In order that a coin may be perfectly intelligible to the whole
people, it must have some affinity to the former currency. This,
therefore, will be requisite in the present case. The purposes of
commerce require, that the lowest divisible point of money, or what is
more properly called the _money unit_, should be very small, because
by that means, price can be brought in the smallest things to bear a
proportion to the value. And although it is not absolutely necessary,
yet it is very desirable, that money should be increased in decimal
ratio, because by that means all calculations of interest, exchange,
insurance, and the like, are rendered much more simple and accurate,
and of course, more within the power of the great mass of the people.
Wherever such things require much labor, time, and reflection, the
greater number who do not know, are made the dupes of the smaller
number who do.
The various coins which have circulated in America, have undergone
different changes in their value, so that there is hardly any which
can be considered as a general standard, unless it be Spanish dollars.
These pass in Georgia at five shillings, in North Carolina and New
York at eight shillings, in Virginia and the four Eastern States at
six shillings, and in all the other States, excepting South Carolina,
at seven shillings and sixpence, and in South Carolina at thirtytwo
shillings and sixpence. The money unit of a new coin to agree, without
a fraction, with all these different values of a dollar, excepting the
last, will be the fourteen hundred and fortieth part of a dollar,
equal to the sixteen hundredth part of a crown. Of these units,
twentyfour will be a penny of Georgia, fifteen will be a penny of
North Carolina or New York, twenty will be a penny of Virginia and the
Four Eastern States, sixteen will be a penny of all the other States,
excepting South Carolina, and fortyeight will be thirteen pence of
South Carolina.
It has already been observed, that to have the money unit very small,
is advantageous to commerce; but there is no necessity that this money
unit be exactly represented in coin, it is sufficient that its value
be precisely known. On the present occasion, two copper coins will be
proper, the one of eight units, and the other of five. These may be
called an Eight, and a Five. Two of the former will make a penny
Proclamation, or Pennsylvania money, and three a penny Georgia money.
Of the latter, three will make a penny New York money, and four a
penny lawful, or Virginia money. The money unit will be equal to a
quarter of a grain of fine silver in coined money. Proceeding thence
in a decimal ratio, one hundred would be the lowest silver coin, and
might be called a _Cent_. It would contain twentyfive grains of fine
silver, to which may be added two grains of copper, and the whole
would weigh one pennyweight and three grains. Five of these would make
a _Quint_, or five hundred units, weighing five pennyweight and
fifteen grains; and ten would make a _Mark_, or one thousand units,
weighing eleven pennyweight and six grains.
If the mint price of fine silver be established at twentytwo thousand
two hundred and thirtyseven units per pound, this being coined would
be four times five thousand seven hundred and sixty grains, or
twentythree thousand and forty units. The difference is eight hundred
and three units, and therefore the coinage is eight hundred and three,
or twentythree thousand and forty, or somewhat more than three
fortyeight one hundred per cent, which would be about the expense
attending it. A dollar contains by the assays, which I have been able
to get, about three hundred and seventythree grains of fine silver,
and that at the mint price would be fourteen hundred and forty units.
In like manner, if crowns contain from four hundred and fourteen to
four hundred and fifteen grains of fine silver, they would, at the
mint price, be worth sixteen hundred units.
When such a coin shall have been established, the value of all others
would be easily ascertained, because nothing more would be necessary
than to have them assayed at the mint. The advantage of possessing
legal money, in preference of any other, would induce people to carry
foreign coin to the mint, until a sufficiency were struck for the
circulating medium. The remainder of the foreign silver, together with
the gold, should be left entirely to the operations of commerce as
bullion.
In the present moment, it is by no means of such consequence to
establish the relative value of different coins, as to provide a
standard of our own, by which in future to estimate them. If the value
were now sought, they must all be estimated in dollars, because
dollars are called for in the several requisitions of Congress.
Without noticing the preference thus given of one coin over another,
it is sufficient to observe, that if a greater alloy should be
introduced by the Spanish government into their dollars, our interior
regulations as to money would be overturned; and certainly we have no
security that this will not happen. There is not any great
inconvenience in leaving matters on their present footing, until they
can be remedied by the operations of a mint; for it is not to be
supposed that all the money raised by taxes in a State is t
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