Chapter I: Part 1

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.