Chapter X: Part 10

I have the honor to enclose the copy of Acts of Congress of the 14th and 23d instant, together with the copy of my letter of the 30th of July, covering the estimates for the year 1783. These estimates are not yet finally decided on. By the Act of the 14th you are, as you perceive, instructed to communicate the resolution for borrowing four millions of dollars, to his Most Christian Majesty; and first, to assure his Majesty of the high sense, which the United States in Congress assembled entertain of his friendship and generous exertions. Secondly, their reliance on a continuance of them; and thirdly, the necessity of applying to his Majesty on the present occasion.

From this, and even more particularly from the Act of the 23d, you will see, that it is the wish of Congress to obtain this money from or by means of the King. After the decisive expressions contained in those resolutions, of the sense of our Sovereign, I am sure that it is unnecessary for me to attempt anything like argument to induce your exertions. I shall, therefore, rather confine myself to giving information. The grateful sense of the King's exertions, which has so warmly impressed your bosom, operates with undiminished force upon Congress; and what is of more importance, in a country like ours, has the strongest influence upon the whole whig interest of America.

I have no doubt but that the King's Minister here has given his Court regular information on this and every other subject of equal importance, and, therefore, any general assurances on your part will be complimentary, and in some degree superfluous. But there is a kind of knowledge not easily attainable by foreigners in any country, particularly on such a matter as the present. It is not amiss, therefore, that I should convey it to you, and your good sense will apply it in the most proper manner. You (of all men in the world) are not now to learn, that the sour English prejudices against everything French had taken deep root in the minds of America. It could not have been expected that this should be obliterated in a moment. But by degrees almost every trace of it has been effaced. The conduct of Britain has weaned us from our attachments, and those very attachments have been transferred, in a great measure, to France.

Whatever remains of monarchical disposition exist, are disposing themselves fast to a connexion with the French monarchy; for the British adherents begin to feel the pangs of a deep despair, which must generate a deep aversion. The British army here, felt the national haughtiness increased by the contempt which, as Englishmen, they could not but feel for those who had combined against the freedom of their own country. Every part of their conduct, therefore, towards the tories, while they flattered themselves with victory showed how much they despised their American friends. Now that a reverse of fortune has brought on a little consideration, they find a total separation from this country unavoidable. They must feel for the fate of their country; they must, therefore, hate, but they must respect us, too; while their own adherents are both detested and despised. Since General Carleton's arrival, or rather since the change of Ministers, the British have shown that their intention is, if possible, to conciliate the rulers of America; and by the influence of a common language and similar laws, with the force of ancient habits and mutual friendships not yet forgotten, not only to renew again the commercial intercourse, but to substitute a new federal connexion to their ancient sovereignty and dominion.

The assurance, therefore, which Congress have directed you to make, must not be considered in the number of those idle compliments, which are the common currency or small change of a Court. It is an assurance important because it is founded in truth, and more important still because it is dictated by the affections of a people. If I may venture an opinion still further, it is principally important because of the critical situation of things. The sudden change of Britain from vengeance and war to kindness and conciliation must have effects; and those effects, whether they be contempt or affection, will depend less, perhaps, on them than upon others. It cannot be doubted that they will ring all the changes upon their usual theme of Gallic ambition. They will naturally insinuate the idea, that France will neglect us when we have served her purposes; and it would be very strange if they did not find some converts among that class of people who would sacrifice, to present ease, every future consideration. What I have said will, I am confident, put your mind into the train of reflections, which arise out of our situation, and you will draw the proper conclusions and make a proper appreciation of them.

Congress have directed you further, to express to the King their reliance on a continuation of his friendship and exertions. I have no doubt that a full belief of this reliance will be easily inculcated. Indeed, I apprehend, that we shall be considered as relying too much on France, or in other words, doing too little for ourselves. There can be no sort of doubt, that a good argument may be raised on the usual position, that the nation which will not keep itself, does not merit the aid of others; and it would be easy to tell us, that we must put our own shoulders to the wheel before we call upon Hercules. In short, if the application be refused or evaded, nothing can be easier than to assign very good reasons why it is done. But you have very justly remarked in one of your letters, that it is possible to get the better in argument, and to get nothing else. So it might be here. True sagacity consists in making proper distinctions, and true wisdom in taking determinations according to those distinctions. Twenty years hence, when time and habit have settled and completed the federal constitution of America, Congress will not think of relying on any other than that Being, to whose justice they appealed at the commencement of their opposition. But there is a period in the progress of things, a crisis between the ardor of enthusiasm and the authority of laws, when much skill and management are necessary to those who are charged with administering the affairs of a nation. I have already taken occasion to observe, that the present moment is rendered particularly critical by the conduct of the enemy; and I would add here, (if I dared even in idea to separate Congress from those they represent,) that now above all other times, Congress must rely on the exertions of their ally. This sentiment would open to his Majesty's Ministers many reflections, the least of which has a material connexion with the interests of his kingdom. But an argument of no little weight, is that which applies itself directly to the bosom of a young and generous prince, who would be greatly wounded to see that temple, dedicated to humanity, which he has taken so much pains to rear, fall at once into ruins, by a remission of the last cares, which are necessary for giving solidity to the structure. I think I might add, that there are some occasions on which a good heart is the best counsellor.

The third topic on which Congress have directed you to dwell upon, is the necessity of their present application; and it is this which falls most particularly within my department; for I doubt not that every sentiment on the other objects, has been most forcibly inculcated by the Minister of Foreign Affairs. I might write volumes on our necessities, and not convey to you so accurate an idea, as by the relation of a single fact, which you may see in the public newspapers. It is, that the requisitions of last October for eight millions, had produced on the 1st day of this month only one hundred and twentyfive thousand dollars. You are so perfectly a master of everything, which relates to calculation, that I need not state anything of our expenses. You know also what were our resources beyond taxation, and therefore you have every material for forming an accurate idea of our distresses. The smallness of the sum which has been paid will doubtless astonish you; and it is only by conversation or a long history that you could see why it has been no greater. The people are undoubtedly able to pay, but they have easily persuaded themselves into a conviction of their own inability; and in a government like ours the belief creates the thing.

The mode of laying and levying taxes are vicious in the extreme; the faults can be demonstrated; but would it not be a new thing under the sun, that people should obey the voice of reason? Experience of the evil is always a preliminary to amendment, and is frequently unable to effect it. Many who see the right road, and approve it, continue to follow the wrong road, because it leads to popularity. The love of popularity is our endemial disease, and can only be checked by a change of seasons. When the people have had dear experience of the consequences of not being taxed, they will probably work the proper amendment, but our necessities in the interim are not the less severe.

To tell America in such a situation, that she should reform her interior administration, would be very good advice, but to neglect affording her aid, and thereby to lose the capital objects of the war would be very bad conduct. The necessity of the present application for money arises from the necessity of drawing by degrees the bands of authority together, establishing the power of government over a people impatient of control, and confirming the federal union of the several States, by correcting defects in the general constitution. In a word it arises from the necessity of doing that infinite variety of things, which are to be done in an infant government, placed in such delicate circumstances, that the people must be wooed and won to do their duty to themselves, and pursue their own interests.

This application also becomes the more necessary, in order to obviate the effort of that British faction, which the enemy are now attempting to excite among us. Hitherto indeed they have been unsuccessful, unless perhaps with a very few men, who are under the influence of disappointed ambition, but much care will be required when their plans are brought to greater maturity. The savage inroads on our frontiers have kept up the general horror of Britain. The great captures made on our coasts have also rather enraged than otherwise, though such captures have always the twofold operation of making people wish for peace as well as for revenge. But when the enemy shall quit our coasts, (and they have already stopped the inroads of their savage allies,) if the people are urged at once to pay heavy and unusual taxes, it may draw forth and give weight to arguments, which the boldest emissaries would not at present hazard the use of.

I have already observed, that Congress wish to obtain this money either from or by means of the King. The most cautious prudence will justify us in confiding to the wisdom of his Ministers the portrait of our situation. But it might not be very wise to explain to others those reasons for the application, which lie so deep in the nature of things, as easily to escape superficial observers. I shall enclose a copy of this letter to Mr Adams, and you will find a copy of what I say to him on the subject. I hope the Court will take such measures as to render any efforts on his part unnecessary; but you and he must decide on what is best for your country.

I must trouble you still further on this subject, with the mention of what you will indeed collect from a cursory reading of the resolutions, that Congress have the strongest reason for their procedure, when they direct your utmost endeavors to effect this loan, notwithstanding the information contained in your letters. If the war is to be carried on, this aid is indispensable, and when obtained, will enable us to act powerfully in the prosecution of it. If a peace takes place, it is still necessary, and as it is the last request which we shall then have occasion to make, I cannot think it will be refused. In a word, Sir, we must have it.

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

ROBERT MORRIS.

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TO B. FRANKLIN.

Office of Finance, September 27th, 1782.

Sir,

By my letter of this date you will be informed of the intentions of Congress, to provide for a principal part of the expenditures of the year 1783, by loan. I expect that you will be able to obtain the four millions of dollars, either from the Court, or by their assistance. I wish for an immediate deposition of a part in the following manner. That the Court of Spain should give orders for the shipment of a million of dollars at the Havana, free of duties, and be convoyed by one or more ships of the line to an American port; the money to be paid to them during the year, in Europe; I wish this order may be so expedited, as that Captain Barney, in the Washington, by whom this letter goes, may carry it out to the Havana, and receive the money, which will by that means arrive here some time during the winter, and of course will, I expect, come safely as well as seasonably. I wish that a half million of dollars may be paid to Messrs Le Courealx & Co, as soon us possible, to enable them to execute my orders as to particular negotiations, which I commit to them. Whatever else of the money is obtained in France, will of course be paid to Mr Grand, subject to my orders. If any part of the money be negotiated in Holland, it will be, I suppose, proper to leave it in the hands of those who negotiate the loan, subject to my further disposition.

I am, Sir, &c.

ROBERT MORRIS.

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TO B. FRANKLIN

Office of Finance, September 30th, 1782.

Sir,

It is in some respects fortunate, that our stores were not shipped, because, as you observe, they might have been taken; but I hope they are now on the way, for if they are to lie in France at a heavy expense of storage, &c. while we suffer for the want, it will be even worse than if they were taken. You will find by the letters, which are to go with this, that Mr Barclay is prohibited from making any more purchases on account of the United States. I confess, that I disapprove of those he has made; for the purchase of unnecessary things because they are cheap, appears to be a very great extravagance. We want the money as much as anything else, and the world must form a strange idea of our management, if while we are begging to borrow, we leave vast magazines of clothing to rot at Brest, and purchase others to be shipped from Holland. I have said nothing on this subject to Mr Barclay, because the thing having been done, could not be undone, and because the pointed resolutions of Congress on the subject, will prevent any more such operations.

What I have now said, however, will I hope lead you to urge on him the necessity of making immediate shipments of all stores in Europe. A merchant does not sustain a total loss of his goods by their detention, but the public do. The service of the year must be accomplished within the year, by such means as the year affords. The detention of our goods has obliged me to purchase clothing and other articles at a great expense, while those very things were lying about at different places in Europe. I am sure that any demand made for money on our part, must appear extraordinary, while we show so great negligence of the property we possess. The funds, therefore, which were obtained for the year 1781, are not only rendered useless during the year 1781, but so far pernicious, as that the disposition of them will naturally influence a diminution of the grants made for the year 1782.

You mention in yours of the 25th of June, that you would send enclosed the account of the replacing of the Lafayette's cargo, if it could be copied in season. As it did not arrive I shall expect it by the next opportunity.

I have received Mr Grand's accounts, which are not settled in the manner I wish; and in consequence I have written to him by this opportunity to alter them. I have desired him to give your account credit for every livre received previous to the current year, including therein the loan of ten millions of livres in Holland, though a part of it may not have been received until this year. I have desired him to debit your account for every expenditure made by your order, which will include all your acceptances of bills, &c. and of course M. de Beaumarchais' bills, if they shall have been paid. Finally, I have desired him to carry the balance of your account to mine, in which he is to credit all moneys received for the current year; for instance, the six millions (and the other six if they are obtained) together with such moneys as may come to his hands, from the loan opened for the United States, by Messrs Willink, Staphorst, & Co.

I did expect to have had some kind of adjustment made by this time of Captain Gillon's affair; but Congress referred much of it to a committee, with whom it has long slept; but I have informed Mr Gillon, that I must have a settlement, and at present I wait a little for the determination of Congress.

You mention to me, that the interest on the ten millions, Dutch loan, is payable at Paris annually on the 5th of November, at four per cent. I must request you to send me the particular details on this subject, such as who it is payable to, and by whom, that I may make proper arrangements for a punctual performance, so as not to incur unnecessary expense. I presume that the first year's interest may be discharged before this reaches you; but at any rate I enclose a letter to Mr Grand, to prevent any ill consequences, which might arise from a deficiency of payment.

I informed you, in mine of the 1st of July, that Congress had resolved to appoint a Commissioner to settle the public accounts in Europe. This is not done, but they have reconsidered and committed the resolution. Where the thing will end, I do not know. I think, however, that eventually they must send over some person for the purpose.

The appearances of peace have been materially disserviceable to us here, and general cautions on the subject from Europe, and the most pointed applications from the public officers, will not prevent that lethargy, which the very name of peace extends through all the States. I hope measures will be taken by our public Ministers in Europe, to prevent the people from falling into the snares which the enemy has laid. Undue security in opinion, is generally very hurtful in effect, and I dread the consequences of it here, if the war is to be carried on, which is not improbable.

I am, Sir, &c.

ROBERT MORRIS.

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TO B. FRANKLIN.

Office of Finance, October 1st, 1782.

Sir,

In my letter of the 27th of September last I expressed my wish, "that the Court of Spain should give orders for the shipment of a million of dollars at the Havana, free of duties, and to be convoyed by one or more ships of the line to an American port," &c. Upon further reflection, I am induced to believe that the Court of Spain will not go into the whole of this arrangement; for although they may, and probably will, agree to so much of it as will procure them an equivalent in France for the one million dollars, to be shipped from the Havana, yet there are reasons to doubt whether they will convoy the Washington hither. I wish, therefore, (should you meet with difficulties in that quarter) to apply to the Court for such convoy. I wish it may consist of a ship of the line, because none but frigates will cruise on this coast during the winter, and therefore a ship of the line will afford more protection than two or three frigates. However, this will depend entirely on the convenience or inconvenience which may attend the business. I shall communicate both this letter and that of the 27th, to the Chevalier de la Luzerne, on whose representations I rely much, as well for procuring the aid asked for, as for accomplishing the necessary arrangements after it is procured.

I am, Sir, &c.

ROBERT MORRIS.

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TO M. DE LA LUZERNE.

Office of Finance, October 2d, 1782.

Sir,

I have the honor to enclose for your Excellency's perusal, the copies of letters from this office to Dr Franklin, of the 27th of last month and the 1st instant. I am to entreat, Sir, that you will represent to your Court the necessity of the application, which Congress have directed their Minister to make for four millions of dollars. The resolutions on the subject have, I suppose, been communicated to you by the Secretary of Foreign Affairs. I have, also, to request that you will facilitate the arrangements proposed in my letters already mentioned, the advantages of which are so well known to you that I shall not dwell on them.

With real esteem and respect, &c.

ROBERT MORRIS.

* * * * *

TO ALEXANDER HAMILTON.

Office of Finance, October 5th, 1782.

Sir,

I have now before me your letters of the 14th and 21st of last month. I am sorry to find that you are less sanguine in your pecuniary expectations than the Governor appears to be; for I have always found that the worst forebodings on this subject are the truest.

I am not surprised to find that the contractors apply with their paper, in the first instance, to the receivers and collectors. This I expected, because much of that paper is not fit for other purposes. Some of it, however, which is payable to the bearer, is calculated for circulation, which you observe, is not so general as otherwise it might have been, by reason of the largeness of the sums in the notes. Mr Duer's letters contain the same sentiment.

In issuing this paper, one principal view was to facilitate the payment of taxes, by obviating the too general, though unjust, complaint of the want of a circulating medium. In substituting paper for specie, the first obstacle to be encountered, was the difference which has arisen from the late profusion of it. Had a considerable quantity been thrown into the hands of that class of people, whose ideas on the subject of money are more the offspring of habit than of reason, it must have depreciated. That this apprehension was just, is clear from this fact, that the paper I first issued, and the bank paper which came out after it, did depreciate from ten to fifteen per cent in the Eastern States, notwithstanding all the precautions which were used. If I had not taken immediate measures to create a demand for it on the spot, and to stop issues to that quarter, its credit would have been totally lost for a time, and not easily restored. Besides that the quantities, which were pouring in from thence would have done mischief here. Confidence is a plant of slow growth, and our political situation is not too favorable to it. I am, therefore, very unwilling to hazard the germ of a credit, which will in its greater maturity become very useful. If my notes circulate only among mercantile people, I do not regret it, but rather wish that the circulation may be for the present confined to them and to the wealthier members of the professions.

It is nothing but the greater convenience, which will induce people to prefer any kind of paper to the precious metals, and this convenience is principally felt in large sums. Whenever the shop-keepers in general discover that my paper will answer as a remittance to the principal ports, and will be readily exchanged by the receivers, they will as readily exchange it for other people. When the people in general, find that the shop-keepers receive it freely, they will begin to look after it, and not before. For you must know, whatever fine plausible speeches may be made on this subject, the farmers will not give full credit to money merely because it will pay taxes, for that is an object they are not very violently devoted to; but that money that goes freely at the store and the tavern, will be sought after as greedily as those things which the store and the tavern contain.

Still, however, your objection remains good, that the trafficking in which the greater part of the community engage, do not require sums so large as twenty dollars. This I shall readily acknowledge; but you will observe, that there is infinitely less danger that notes, which go only through the hands of intelligent people will be counterfeited, than small ones that come to the possession of illiterate men. When public credit is firmly established, the little shocks it receives from the counterfeiters of paper money, do not lead to material consequences; but in the present ticklish state of things, there is just ground of apprehension. Besides this, the value of paper will depend much upon the interchanges of it for specie; and these will not take place when there is a circulation of small paper. Lastly, I have to observe, that until more reliance can be placed on the revenues required, I dare not issue any very considerable amount of this paper, lest I should be run upon for more than I could answer; and as the circulation of what I dare issue, by increasing the general mass, enables people (as far as it goes) more easily to get hold of other money, it consequently produces, in its degree, that object of facilitating taxation, which I had in view.

I am, Sir, &c.

ROBERT MORRIS.

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TO B. FRANKLIN.

Office of Finance, October 7th, 1782.

Sir,

Captain Barney having been detained until this day, and it being probable that he will not arrive in Europe so early as I expected, I am very doubtful whether it would be proper to send him to the Havana, but think it would be better he should return immediately hither, because it is likely that the negotiation I proposed will consume more time than he can spare. His ship is small, but she sails remarkably well, and will, therefore, give us a good chance of being well informed of the situation of our affairs.

If there is likely to be any delay or difficulty in the Havana plan, it will be best that you endeavor to obtain the shipment of a considerable sum in Europe on board some of the King's frigates. At any rate, we must have money, and I think you may venture fifty thousand crowns by this vessel. You will see that Captain Barney is put under your directions, and is to wait your instructions; but I must at the same time inform you, that Congress have directed his ship to be purchased and sent to France, among other things, for the purpose of obtaining a better communication with their servants, and more frequent and accurate intelligence from Europe. You will see, therefore, the propriety of despatching her as speedily as possible, and I think we may, probably, fall upon ways and means to afford you frequent opportunities of writing with a great chance of security.

I am, Sir, &c.

ROBERT MORRIS.

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TO GEORGE WASHINGTON.

Office of Finance, October 15th, 1782.

Sir,

I have received your letters of the 2d, 3d, and 7th instant. There is no man in America, more heartily disposed than I am to remove from the army and from all others who have claims on the public, every just ground of complaint. But with the means in my power, how is it possible? I have been obliged to submit to cancelling one contract and forming another, at one third advance on the former price, for the want of a mere trifle, compared with what we had a right to expect. I am in advance on credit to an amount, which you can scarcely form an idea of, although I have declined every expenditure not indispensable.

That part of the late arrival of clothing, which is unfit for soldier's use, is now selling to pay debts contracted by the clothing department during my administration. Among these debts are twelve thousand dollars for needle work done by people in extreme indigence. The clothing which arrived fit for the officers' wear, was inadequate to the purpose of clothing them all. The division must have created confusion and raised disputes. If this had not been the case, still it would have been liable to the inconveniencies attending partial payments, and we should have been justly reproached for having broken repeated promises, that no such payments should take place. Congress have done all in their power to procure money for the army. My own efforts I shall not dwell upon. If money is obtained, that will produce satisfaction; I am sure that nothing else will.

My credit has already been on the brink of ruin. If that goes, all is gone; but if it can be preserved, there will, in the last necessity, be some chance of making advances on credit to the army, as well as to others. Thus, Sir, you will see that I look forward as far as my distressed situation will admit; but after all, if the States cannot be prevailed on to make greater exertions, it is difficult to see where the thing is to terminate.

I have this day commissioned Major Turner as Marine Commissary of prisoners, and I trust he will soon be in capacity to prevent your Excellency from having any further trouble on that subject.

I am, Sir, with sincere respect and esteem, &c.

ROBERT MORRIS.

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TO THE GOVERNOR OF NORTH CAROLINA.

Office of Finance, October 7th, 1782.

Sir,

Since the receipt of your favor of the 20th of August last, I have received copies of a correspondence between yourself and Colonel Carrington on the subject of specific supplies. The disposition which you have expressed, (in your letter to me, and which indeed breathes through your whole correspondence) to promote those plans of regularity and economy, which Congress have adopted, command my sincere acknowledgements.

I perceive that there is a difference of opinion between the officers of the continent and your State on the receiving specific supplies, which I attribute principally to some misunderstanding of the matter. The specific supplies called for by Congress in their several resolutions on that subject are undoubtedly receivable, and ought above eighteen months ago to have been received, on the requisitions which were made at the rates for that purpose mentioned. Such as it may now suit any State to deliver on those requisitions, ought in like manner to be carried to account. But it is very clear, that they cannot be received on account of the subsequent money requisitions. The several quotas of the eight millions asked for last year, to supply the current expenditures of the year 1782, must be paid in cash, or what is equivalent to it, in my notes or bank notes. I cannot consent to receive anything else. It is by this means alone, that economy can be established, order restored, and confusion, that parent of fraud, too apt to introduce itself into public accounts, banished and destroyed.

I incline to think, that as Congress have determined to have all accounts settled and liquidated to the end of the year 1781, your State would rather choose to attend only to the money requisition, and leave the further delivery of specifics to a liquidation of the old accounts; but if not, there can be no doubt but the specifics will be received, and in such case I will give the gentleman whom I shall appoint as Receiver of taxes in your State, instructions how to dispose of them; but I must again repeat, Sir, that I will not accept one particle of them in abatement of the State quota for the year 1782.

Before I close this letter I must take the liberty to mention a matter, which suggests itself from one of your letters to Colonel Carrington. You tell him that you will continue the prohibition against sending certain things out of the State, in order that he may purchase for the United States on better terms. Now, Sir, while I feel it my duty to require justice for the United States it is equally my duty to take care that equal justice be done to the several States, individually considered, as well as to the individuals which compose them. I am, therefore, to request that all such restrictions be taken off. They sour people's minds, destroy the spirit of industry, impair by a rapid as well as a certain progress, the public wealth of the State, producing a dearth of the things embargoed, eventually enhance the prices far more than they could have been increased by any other mode. Whereas perfect freedom makes the people easy, happy, rich, and able to pay taxes, and the taxes when paid can be expended amid a plenty of products, and consequently be expended to advantage. I say a plenty of products because I know, that liberty to dispose of them to the greatest advantage will encourage men to raise them and produce a plenty. Your Excellency will, I hope, excuse reflections which arise from an ardent desire to promote the general welfare and happiness of all the inhabitants of the United States.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO MAJOR GENERAL GREENE.

Office of Finance, October 17th, 1782.

Dear Sir,

I have received your letter of the 1st of September, for which I pray you to accept my acknowledgements. Amid the many distresses and cares, which await every step of my administration, it is a great relief and consolation to have met with the support of those who command (and what is more, who worthily command) the armies of the United States. I have felt, my Dear Sir, your efforts to support my measures, and I know that they have been useful. I wish it were in my power to give to you and to your brave army that full relief, which their conduct, their sufferings, and above all, their patience, have merited.

I had intended to supply their subsistence, and the little contracts in Virginia, from the quota of that State, as the money there collected would have been nearest the spot where it was to be applied. But I need not tell you how deficient that State has been. The consequence is, that I must endeavor to supply the deficiency from other sources, which I am now doing; but in the precarious state of things at present, there is no reliance to be placed on any measure. I suppose, however, that the evacuation of Carolina will enable you to move northward, with a considerable part of your army; these will, I hope, meet the relief intended. I shall direct a statement of the whole to be made out by the Pay Master General, and do whatever may lay in my power; but as to pay, my inviolable determination is, that the whole army shall equally share whatever is disposed of in that way.

The disposition of the State of North Carolina to pay in specie, is far from being peculiar to that State. Attempts of the same kind have been made by others; and they have invariably been opposed and shall be. There is however a distinction to be taken. You recollect that Congress called for large quotas of specie. I am perfectly persuaded, that no State has fully obeyed that call, but many, and indeed almost all, aver that they have overpaid. The last requisitions have been for money; and if I had not by the publications prevented such assertions, it would not be surprising, that they should be repeated, even as to the money quotas. Now if the State of North Carolina are desirous of paying in specie, on the requisitions of specie, I shall not have the least objection; but on the requisitions for the service of the current year, I will receive money alone. I make this distinction in such clear and peremptory terms, to avoid all further cavils on the subject. I see that it has already been drawn into some length, and must, therefore, be finally terminated. Besides, under the present appearances there can be little doubt, that specie in North Carolina will be almost as useless as if they were in Otaheite. A copy of my letter to Governor Martin on this subject shall be enclosed to you.

You have in several of your letters, made very just observations on the business of my department, and such as convince me you have turned your attention to it. I have therefore taken the liberty to enclose to you a copy of a letter to Congress, on the subject of a mint, of one on the establishing public credit by funding our debts; and of a third, on the estimates for the ensuing year.

As there is a report, that the enemy got several letters intended for you, it is possible that some or other of those, may be among the number.

I pray you to believe me, with very sincere esteem, your most obedient servant,

ROBERT MORRIS.

* * * * *

GEORGE WASHINGTON TO ROBERT MORRIS.

Head Quarters, October 18th, 1782.

Sir,

I take the liberty to enclose to your care, a letter for the Chevalier de la Luzerne, on the subject of expense, which at his request I have incurred, for the purpose of forwarding intelligence of the movements of the enemy at New York, to the Marquis de Vaudreuil.

If our circumstances would admit, I should be very glad that this expense should be defrayed by the United States; it is infinitely short of the debt, which gratitude imposes on us. I submit therefore to your judgment, whether to deliver the enclosed, or to send forward the money from your own funds, agreeably to the monthly estimate sent to the Minister.

The chain of expresses was instituted about the middle of August, and will probably be continued till the sailing of the French fleet from Boston.

I am, &c.

GEORGE WASHINGTON.

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CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, October 21st, 1782.

Sir,

I have on many occasions warned the States of the consequences which must follow from delays in supplying the treasury. The expense which attends such delays, has frequently been mentioned, and instances daily occur to show, how much the public burdens are increased by the want of a timely provision. To cite them all would be endless; but there is one of no inconsiderable magnitude, which I think it proper to state for your consideration. I had contracted on the part of the United States for the supply of rations to the main army, at ten pence Pennsylvania currency, and to the garrison at West Point for nine pence half penny, and had agreed to pay, at the commencement of each month for the issues of the preceding month.

These beneficial contracts have been dissolved by my inability to make punctual payments, which rendered the contractors incapable of performing their engagements. After many efforts on my part to supply the want of cash, and on their part to substitute private credit and promises in the place of ready money, they found it impracticable to proceed further on the moderate terms stated in the contract. Some of them told me so, and asked (what any persons in their situation would have asked) _the promise of indemnification for any damages they might sustain_. And a promise to pay at the end of each month, one half the amount of issues for the preceding month in coin, and three times the remaining half in bills or notes receivable in taxes. They offered if I would agree to these propositions, to go on and supply the army; but declared, that if I would not, they could no longer perform their engagements.

From this moment I was obliged to consider the contract as dissolved; because the dissolution of it appeared inevitable. I had already by entering into the contract, promised on the part of the public, a payment of the whole money due for the monthly issues. A new promise of the half would have given no additional security, and therefore I considered that stipulation as a request, that I should on my private and personal honor, assure them the public funds would enable me to make such payments. But of this I had no good prospect. The greater part of what little came in from taxes, was the same kind of paper with that which they asked for, being what I had long before issued for other services. If indeed I could have trusted the assurances made to me, I might have given the assurances required by them. But experience had taught me caution, and the event has shown, that if I had made the promise, I should now have been chargeable with falsehood.

I think the contractors were prudent in requiring a promise of indemnification; their situation made it necessary; but it was a promise which I could not make, for although I had reason to confide in their integrity and would have done it in my private capacity, yet as a public officer, I could not. For there would have been no longer certainty of the extent to which their expenditures might have been carried, after it should have become a matter of indifference to their private interest what prices should be given for supplies.

Thus, Sir, I found myself reduced to the alternative of making a new agreement for subsistence of the army and garrison, or of leaving them to subsist themselves by military collection. The latter was to be avoided, if possible, for it would have been the most expensive mode of obtaining supplies, not to mention other circumstances. The former, therefore, was to be adopted, and I accordingly gave instructions to Mr Cornell, the inspector of the contracts, to consult with the Commander in Chief, and take the necessary arrangements. It could not be expected, that a contract dictated by necessity, could be made on economical terms, and the inability to perform old engagements would necessarily influence the rate of new ones. Besides this, it was indispensably necessary to obtain a longer credit, because otherwise the burden would have been shifted, not removed; and the evil must have returned with equal speed and greater magnitude. Under such unfavorable circumstances, it was necessary to pay for a credit in order to obtain it. A new contract is made, and the rations issued now, are to be paid for three months hence, at the rate of thirteen pence, Pennsylvania currency, for a ration; which is an advance of about one third upon the former price. The public therefore will pay for this advance of moneys, equal to feeding the army at the rate of thirtythree and one third per cent for three months; or, to make the matter more simple, they must pay for feeding them three months, as much as would have fed them four months. Besides this, the public credit sustains material injury, and damages will be expected by the former contractors.

If, Sir, it should be supposed that this is the only instance of loss sustained from the low state of the treasury, it is a great mistake. The attempt to establish economical systems is vain, unless we can support them by punctuality. Congress have placed me in a situation where I am exposed in the first instance to claims and demands, but these must come home to the several Legislatures, and eventually to their constituents. My situation, therefore, makes it a duty to expostulate freely on the circumstances of my department. I am not to learn that free representations will sometimes give offence, and I know that those will be always most offended, who are most in fault; but I make no apologies for what I have to say. It is necessary that the truth should be known to the people; to our enemies it is known already, and has been for a long time. They hold up to contempt and derision the contrast between resolutions to carry on the war at every expense, and receipts of nothing in some States, and very little in all of them put together. Those who court public favor at the expense of public good, are very apt to inveigh against taxes, and to flatter the indolent and avaricious with the idea that war can be carried on without labor or money. But it is time for the people to distinguish between their flatterers and their friends. Sooner or later the current expense must be paid, and that payment must come from the purses of individuals. If it were made in season, it would be lighter by one half than it is. Congress have called for a certain sum, and that sum paid punctually would have answered the purpose, but they cannot be responsible for the consequences of delay. The expense will necessarily in such case exceed their calculations, and of course further sums must be required.

There are certain arguments, Sir, which ought not to be used if it is possible to avoid them; but which every one invested with public authority should suggest to his own mind, for the government of his own conduct. How long is a nation, who will do nothing for itself, to rely on the aid of others? In a war waged by one country to obtain revenue from another, what is to be expected in case of conquest? How long will one part of a community bear the burdens of the whole? How long will an army undergo want, in the midst of plenty? How long will they endure misery without complaint, injustice without reproach, and wrongs without redress? These are questions which cannot be solved by arithmetical calculation. The moral causes that may procrastinate or precipitate events, are hidden from mortal view. But it is within the bounds of human knowledge to determine that all earthly things have some limits, which it is imprudent to exceed; others, which it is dangerous to exceed, and some, which can never be exceeded. It is possible, that we are near the close of this war, and perhaps we are only in the middle of it. But if the war should continue, we have to blame ourselves; for were those resources called into action, which we really possess, the foreign enemies would soon lose all hope, and abandon their enterprize. The greater injury, therefore, which we sustain, is not from foreign, but from domestic enemies; from those who impede the necessary exertions. I have mentioned one among many instances, to show the consequences of withholding the public revenue, and I take the liberty to observe, that it would be more manly to declare at once, for unlimited submission to British tyranny, than to make specious declarations against it, and yet take the direct road to bring it about, by opposing the measures for our defence. That open declaration will doubtless be restrained by the fear of general resentment; but the other conduct is so much the more dangerous, as it is calculated to close people's eyes, while they approach the precipice, that they may be thrown down with greater ease and more absolute certainty.

I trust that your Excellency, and every other friend to our country, will urge forward that speedy and effectual collection of taxes, which can alone give vigor and stability to all our measures; and I risk nothing when I assert, that the public service shall be performed, (if the proper revenues be obtained,) at less than half of what would otherwise be expended.

I am, Sir, with perfect respect, &c.

ROBERT MORRIS.

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TO THE GOVERNOR OF RHODE ISLAND.

Office of Finance, October 24th, 1782.

Sir,

My circular letter of the 23d instant, contains the estimates and requisitions for the service of the year 1783. I must take the liberty to make a few observations on them, which apply particularly to the State of Rhode Island. In the letters to Congress of the 29th and 30th of July last, copies of which were transmitted in my circular letter of the 12th of September, I have so fully expressed my sentiments on the subject of credit and loans, that I shall not repeat them. Your Excellency will perceive, that in the Act of the 16th instant, although the estimates amount to six millions, yet only two are required and that further requisitions are suspended until the result of measures for obtaining loans shall be known. It is unnecessary to mention, that Congress have directed an attempt to borrow four millions.

The propriety of this step will be self evident, when the date of their requisitions for the present year is considered. The sums brought in from the several States being regularly published in the gazettes, will spare me the pain of repeating them. I say the pain, because every such repetition will have, in some degree, the air of reproach. It must be remembered, that the duration of the war does not depend upon Congress. This is an invaded country; invaded for the purpose of conquest. And between opposition and submission there is no middle line. The idea of submission is, and ever ought to be, rejected with disdain. Opposition, therefore, becomes a matter of necessity; and that opposition involves expense.

There is then a certain degree of expense that cannot be avoided. And this must be provided for. The estimates being formed under the idea of money in hand to pay for services required, they are stated as low as possible. It appears, therefore, that the six millions mentioned in the estimates must be had. It appears from the experiments already made, that the people are either unwilling or unable to pay the whole in taxes; and whether want of power or inclination be the true cause, is immaterial to the present inquiry, for the fact is clear. Now there are but four modes of obtaining the supplies. Either they must be given to us, or lent to us, or raised by taxes, or taken by force. As to the first, we can place no dependence on it; and as to the last, it is neither the most constitutional, the most economical, nor the most pleasing way. Necessity may justify it, but it will be very difficult to justify the necessity. The supplies, therefore, must be obtained by loans or taxes; so that if they cannot be obtained by loans, taxation is the only resource; and in that case, there is no medium between legal taxation and military collection. For if we will not submit to Great Britain, we must carry on the war; and if we carry on the war, we must obtain the means; and if we cannot get the means abroad, we must provide them at home; and if we do not provide them by law, they must be taken by force.