Chapter XII: Part 12

It was with very great pleasure, Sir, that I paid the money you desired, to Mr Adams, and I beg you to believe, that I shall at all times be happy to facilitate your views. At present, the negotiation happens by good luck to minister alike to your convenience and mine. I am very sorry, that you did not make an earlier mention to me of your demands for secret service. I would have anticipated your views, had it not escaped my attention, for be the distresses of my department what they may, this is of too much importance ever to be neglected. I think it best in future, that a solid arrangement should be taken, and for this purpose I will give directions to the Paymaster General always to keep some money in the hands of his deputy, to answer your drafts for contingencies and secret service. I have, as you will see, taken methods to put the deputy in cash, and then your Excellency will be relieved from any further care than the due application. I am, however, to pray for the sake of regularity in accounts, that your Excellency in the warrants would be so kind as to specify the particular service when on the contingent account, and draw in favor of one of your family on account of secret services, mentioning that it is for secret service. I shall direct Mr Swanwick to endorse the bills on you in favor of Mr Adams to the Paymaster General, whose deputy will receive from your Excellency the amount.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, January 24th, 1783.

Sir,

As nothing but the public danger would have induced me to accept my office, so I was determined to hold it until the danger was past, or else to meet my ruin in the common wreck. Under greater difficulties than were apprehended by the most timid, and with less support than was expected by the least sanguine, the generous confidence of the public has accomplished more than I presumed to hope.

Congress will recollect, that I expressly stipulated to take no part in past transactions. My attention to the public debts, therefore, arose from the conviction, that funding them on solid revenues was the last essential work of our glorious revolution. The accomplishment of this necessary work is among the objects nearest my heart, and to effect it, I would sacrifice time, property, and domestic bliss.

Many late circumstances have so far lessened our apprehensions from the common enemy, that my original motives have almost ceased to operate. But other circumstances have postponed the establishment of public credit in such a manner, that I fear it will never be made. To increase our debts, while the prospect of paying them diminishes, does not consist with my ideas of integrity. I must, therefore, quit a situation which becomes utterly insupportable. But lest the public measures might be deranged by any precipitation, I will continue to serve until the end of May. If effectual measures are not taken by that period, to make permanent provision for the public debts of every kind, Congress will be pleased to appoint some other man to be the Superintendent of their Finances. I should be unworthy of the confidence reposed in me by my fellow citizens, if I did not explicitly declare, that I will never be the minister of injustice.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, February 26th, 1783.

Sir,

A number of those who have contracted engagements with me will, I know, place a personal reliance on me for the fulfilment of them, As the time approaches very fast when I am to quit this office, it is proper for me to make the necessary preparations. Among these, I must place the due and seasonable information, which as an honest man I must convey to those who have confided in me. I am, therefore, to pray that the injunction of secrecy, contained in the order of the 24th of January last, may be taken off. At the same time, I take the liberty to suggest to Congress, that the early appointment of my successor, will give him opportunity to take such measures as may prevent many inconveniences that might otherwise happen.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO GEORGE WASHINGTON.

Office of Finance, February 27th, 1783.

Sir,

I do myself the honor to enclose to you the copy of a letter to the President of Congress, which was written on the 24th of last month. I should have transmitted it to you on the next day, but contrary to my expectations, Congress enjoined secrecy. I yesterday wrote a letter, of which I also enclose a copy, and in consequence of it I am this instant informed that the injunction of secrecy is taken off. I seize, therefore, the earliest moment to give you the information.

I do assure you, Sir, that nothing would have induced me to take this step, but a painful conviction that the situation of those to whom the public are indebted is desperate. I believe, sincerely, that a great majority of the members of Congress wish to do justice; but I as sincerely believe that they will not adopt the necessary measures, because they are afraid of offending their States. From my soul I pity the army, and you, my Dear Sir, in particular, who must see and feel for their distresses, without the power of relieving them.

I did flatter myself that I should have been able to procure for them that justice to which they are entitled; and in the meantime, I labored to make the situation as tolerable as circumstances would permit. For the assistance which you have kindly afforded me, I pray you to accept my thanks, and to be assured that I shall ever retain on that account the most grateful emotions. My thanks are due also to all our officers, for I know that unwearied pains have been taken to give them disagreeable impressions, and I am, therefore, doubly indebted for the just sentiments, which amid so many misrepresentations they have constantly entertained. I hope my successor will be more fortunate than I have been, and that our glorious revolution may be crowned with those acts of justice, without which the greatest human glory is but the shadow of a shade.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO WILLIAM CARMICHAEL, IN MADRID.

Office of Finance, March 4th, 1783.

Sir,

You will probably recollect that Mr Jay protested ten bills of exchange, each for two hundred and twentyfive Mexican dollars, of which the list is enclosed. These bills, with the addition of twenty per cent damages, amount to two thousand seven hundred dollars, for which I have this day signed a set of bills on you, which, to avoid the dangers to which communication is liable, are extended to the eighth bill. This draft is at six months' sight, and I am to desire that you will honor it, and take your reimbursement on Mr Grand. The length of sight may probably place it at a considerable discount on the exchange of Madrid, and it is probable, also, that you may draw on Mr Grand to advantage; if so, I conceive it would be best to have the bill bought.

Draw on Mr Grand at the common usance, and close the transaction; which I hope may be the last of the kind, which the American government will be concerned in. An additional reason for suggesting this is, that should this bill go through hands ignorant of the whole transaction, it may give rise to conjectures, that the former practice of drawing is about to be revived. I should have drawn on France or paid in cash, but as the party is at Boston, and the rate of the exchange unfixed, it is more conformable to mercantile usage to give a new bill for the principal and damages.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 8th, 1783.

Sir,

I received yesterday afternoon a report, which is to be considered on Monday the 10th instant, and with it I received an order to transmit my observations. The shortness of the time obliges me to ask indulgence for deficiencies or inaccuracies. I have always believed that Congress were disposed to do _justice_ to the public creditors, and I shall presume that the _power_ of Congress will be exerted for that purpose.

There appear, therefore, two principal points to be considered.

I. What justice requires; and,

II. What Congress have power to do.

To the first I answer. _Justice requires that the debt be paid._ The _principles_ of justice require that from a government, which a _court_ of justice exacts from an individual. Government have no right to oblige creditors to commute their debts for anything else. Any revenues, therefore, to be pledged for the restoration of public credit must be such, that money may be borrowed on them to pay those to whom it is due; any plan which falls short of that object will not do justice. And no plan will embrace that object unless it be such that under it individuals would prefer government security to any other. In our particular situation it appears clear, that such public creditor has a complete right to demand his whole debt from Congress, and to name the terms on which he will forego it, and that Congress have a similar right in regard to the States.

In order to determine on the second question, viz. the _power_ of Congress, we must resort to the confederation. By the eighth article it will appear, that Congress have a right to determine on the sum to be paid by the States, and the time of payment; and that this sum is to be paid by the States in proportion to their respective value, or an estimation to be made in the mode to be appointed by Congress. It is, therefore, in the _power_ of Congress to call for payment of the whole debt by any day; such for instance as the 1st of January; and to have a valuation made some previous day; such for instance as the 1st of September. _The right of Congress is perfect, and the duty to pay absolute._ It appears necessary that this power be exerted in the most _decisive form_, and that whatever _general plan_ of finance may be adopted, the concurrence of each State in such plan should be admitted _as an alternative_ for not paying her apportioned quota of the whole debt. My reasons are these.

1st. It will not be believed, that Congress have no power to do justice until the power which they have is exerted.

2dly. The public creditors have a right to expect that exertion.

3dly. Until it be made, a compliance with the demands of Congress will be considered by the States as a matter of favor and not of right.

4thly. Congress having a right to the whole money, it follows that they have the _exclusive_ right to name those precise terms on which they will commute it.

5thly. Hence it follows that their plan, (be it what it may) must be adopted by the States in all its parts, because none of them can have a right to make amendments.

6thly. The objections heretofore raised against the impost will by this means be totally done away, because each State may at its option either comply with the general plan or pay her particular share of the whole debt.

7thly. If the plan proposed as an alternative be adopted, it will from the nature of the case be an express national compact between the United States and each individual State. The revenue will have been purchased by Congress and they will have a perfect right to insist on their bargain.

8thly. The plans of Congress will by this means be greatly facilitated in the States, because the arguments will apply to men's feelings, and they will at once perceive, that it is better to give a permanent revenue of six, than make immediate payment of a hundred. Every term and condition in the plan will then be fair, because if the revenues be such as in the judgment of the Legislature will fall too heavy on their constituents, they can adopt others, borrow on their own account, and pay in their share at the day named. So that the United States will either receive the whole money, and pay all their debts, or they will get solid revenues to fund the whole, or they will receive a part and have such revenues for the remainder.

It also appears to me that our situation requires the utmost despatch, and therefore I wish much that the days named should be shorter than those above mentioned. The Act of the 17th of last month has been duly forwarded to the several States, but there will be no impropriety in taking a shorter mode of valuation for apportioning the debt, and leaving the valuation by the Act of the 17th to apply to the yearly apportionments subsequent to the last year. Various modes of making a speedy valuation might be suggested; such for instance, as that Congress should appoint a commissioner for each State, directing them to meet at this place on the 1st of June and determine, that the valuation made by the majority of those who do meet should be conclusive. If such a line of conduct as this be pursued, those suspicions as to the integrity of Congress, which ill designing men have endeavored to raise must immediately cease. And if justice be not done, public indignation will be pointed to the proper persons.

With respect to the alternative which may be proposed, I am sorry to find that my ideas as to the objects of revenue have not met with the approbation of Congress. I must be indulged in observing, that let the revenues be what they may, it is indispensable that all the collectors be appointed by the authority of the United States, and for the following reasons.

1st. Experience has shown, that the taxes heretofore laid in the States have not been collected.

2dly. It is evident from a consideration of their modes of taxation, (which they are all very obstinately attached to,) that they never will be punctually collected.

3dly. The punctuality in the payment of interest is essential to public credit.

4thly. As Congress forego their right to insist on the principal, it is but just that they should have every possible security for the interest.

5thly. As the people are in either case to pay the supposed tax at certain periods it must be a matter of indifference to what particular man the payment is made.

6thly. The objection raised in favor of elected tax gatherers, viz. that they consider the circumstances of the people, which is saying in other words, that they are guilty of favor and partiality, is the strongest reason why the collectors should be appointed by, and amenable to, Congress.

7thly. It is a kind of absurdity in itself, that Congress should have a right to the tax, and yet no right to send their servants to receive it.

I pray leave also to observe, that the revenues must be co-existent with the debt. No man in his senses will lend on any other terms. If the revenue be only for a fixed period of time, no more can be borrowed on it than the price of an annuity for such a time. And it has already been observed, that money must be _borrowed_ to _pay_ the public creditors, because they have a just right to their _money_. Another observation on this subject I must take the liberty to impress. The more clear, certain, permanent, and increasing the funds are, the lower will be the interest at which money can be borrowed. If the funds be very good, money may be borrowed at four per cent, perhaps at three per cent. If they are not good it will not be procured for less than six, seven, or eight per cent, and perhaps not at all. Proper reflections on this subject will naturally suggest themselves, and it will not be forgotten, that whether the debt be less or greater, and whether the interest be higher or lower the _people must pay all_.

With respect to the impost I conceive it to be justly exceptionable, because that an estimation ad valorem is arbitrary, and the law ought in all cases to be clear and explicit. The impost on prizes need not, I should suppose, be asked for, because Congress may take measures for the purpose themselves whenever the occasion requires. I conceive also, that a tax might be laid on exports which, without being burdensome, would still be productive. Enclosed is a list of rates, which I take the liberty to submit. I cannot go into a written detail of the reasons for them, because my time will not permit.

I am told that the principal objection to a land tax is the inequality. To obviate this objection (although I cannot accede to the force of it) perhaps a reduction of the sum from one dollar to a quarter of a dollar per hundred acres might be expedient; and to supply the deficiency, a tax on houses might be adopted, according to the enclosed rate, which I also beg leave to submit.

I must take the liberty to declare my most serious apprehensions from the existence of unsettled accounts among the States. Everything which tends to create or continue them is fraught with ruinous consequences. Keeping accounts of moneys paid by taxes of the States, and liquidating those accounts by after settlements, will, I fear, prove the source of much dissension. It will operate as heretofore in preventing the States from paying anything. I would pray therefore to submit to Congress the following mode of terminating all present accounts, viz. that the whole sum paid or expended by each State, for the public service from the commencement of the war, should be placed to the credit of the particular State, and each draw interest on such sum. By these means the whole account would be equitably settled in the first instance. The States which are indebted on their own private account, would be able to wipe off such debts by an assignment of national stock. And on the first requisitions made by Congress for current expenditures, each might make payment either in part, or perhaps in the whole, by a discharge of so much of the debt. Thus a degree of simplicity would be introduced into our affairs, and we might avoid the horrors of intestine convulsions.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

GEORGE WASHINGTON TO ROBERT MORRIS.

Head Quarters, March 8th, 1783.

Sir,

Very painful sensations are excited in my mind by your letter of the 27th of February. It is impossible for me to express to you the regret with which I received the information it contains.

I have often reflected with much solicitude upon the disagreeableness of your situation, and the negligence of the several States in not enabling you to do that justice to the public creditors, which their demands require. I wish the step you have taken may sound the claim to their inmost souls, and rouse them to a just sense of their own interest, honor and credit. But I must confess to you that I have my fears, for as danger becomes further removed from them, their feelings seem to be more callous to those noble sentiments, with which I could wish to see them inspired. Mutual jealousies, local prejudices and misapprehensions, have taken such deep root as will not easily be removed.

Notwithstanding the embarrassments which you have experienced, I was in hopes that you would have continued your efforts to the close of the war at least; but if your resolutions are absolutely fixed, I assure you I consider the event as one of the most unfortunate that could have fallen upon the States, and most sincerely deprecate the sad consequences which I fear will follow. The army, I am sure, at the same time that they entertain the highest sense of your exertions, will lament the step you are obliged to take as a most unfortunate circumstance to them.

I am, &c.

GEORGE WASHINGTON.

* * * * *

TO THE PRESIDENT OF CONGRESS.[13]

Office of Finance, March 10th, 1783.

Sir,

In consequence of the order of Congress of the 18th of last month, I do myself the honor to enclose an estimate of the principal of the public debt to the first day of January, 1783, which has been transmitted to me by the Register of the Treasury. This amounts to _thirtyfive millions three hundred and twentyseven thousand seven hundred and sixtynine dollars fiftythree and one eighth ninetieths_, exclusive of what he calls the _unliquidated debt_, being the moneys due to the several States and to individuals in the several States. I beg leave also to mention other debts which have not been taken into the Register's contemplation, namely, the _old continental bills_ and _arrearages of half pay_. Congress will easily see that it is not in the power of their servants to state the public debts with any tolerable precision.

I have the honor to be, &c.

ROBERT MORRIS.

[13] _March 12th._ This morning arrived the ship Washington,
Captain Barney, with despatches from our Ministers in Paris, and
with six hundred thousand livres in cash, on account of the United
States, in consequence of my order in October last;--and this day
also appeared a virulent attack on my public and private
character, signed _Lucius_, in the Freeman's Journal, replete with
falsehoods.--_Diary._

* * * * *

TO MAJOR GENERAL GREENE.

Office of Finance, March 14th, 1783.

Sir,

I received the other day your letter of the 2d of February last, and am very much obliged both by the pains you have taken, and the sentiments you have expressed in favor of a department, which I shall shortly be obliged to abandon. You will before this reaches you have seen in the newspapers my letters of resignation. I shall not, therefore, go into a detail of the reasons for taking that step, which was as painful to me as you can easily conceive. But I had no alternative. I saw clearly that while it was asserted on all hands, our debts ought to be paid, no efficient measures would be adopted for the purpose; no good plan agreed on. I felt the consequences of my resignation on the public credit; I felt the probable derangement of our affairs; I felt the difficulties my successor would have to encounter, but still I felt that above all things it was a duty to be honest. This first and highest principle has been obeyed. I do not hold myself answerable for consequences. Those are to be attributed to the opposers of just measures, let their rank and station be what they may. I expect much obloquy for my conduct, because this is what I knew to be the reward for any conduct whatever which is right. To slander I am indifferent, and still more indifferent about the attempts to question the services I have rendered, but I feel most sensibly for your situation, and for that of every other officer.

The Congress have now, and have long since had under their consideration, a due provision for the public debts; when they will conclude it, and what it will be, God only knows. If it is such as in my opinion will do justice, I shall stay somewhat longer in office to know the decisions of the States, and if their proceedings are what on such an occasion they ought to be, I shall spare no labor and regret no time in completing the business, so that my successor may receive it from my hands as clear and simple, as it was confused and embarrassed when it was undertaken. But if these things do not happen, you and every other good man will, I hope, acquit me for leaving a post, in which I am totally unsupported, and where I must be daily the witness to scenes of poignant anguish, and deep injustice without the possibility of administering either relief or palliation. While I do continue in office, rely on every support in my power, and always, whether a public or a private man, believe in my esteem and affection.

I am, very respectfully, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 17th, 1783.

Sir,

I do myself the honor to enclose the copy of a letter of the 14th of December last from Dr Franklin, and the translation of a letter of the 15th instant, from the Chevalier de la Luzerne. These, together with the letter of the 23d of December from Dr Franklin, of which I have already submitted a copy, will I trust claim the attention of the United States.

M. de la Luzerne did me the honor to make verbal communication of the Count de Vergennes' letters, from which as well as from those of Dr Franklin and from other circumstances, I consider it as certain that we are to expect no further pecuniary aid from Europe. So late as on the 9th of December last, the loan in Holland had not amounted to eighteen hundred thousand florins, and after the deduction of the charges on it, there were not above seventeen hundred thousand at my disposal. From the month of June to the 9th of December this loan had not increased half a million of florins, so that the most sanguine expectation will not carry it beyond two millions out of the five for which it was opened.

Congress will recollect, that on the 14th of September last they ordered a loan of four millions of dollars in Europe, for the service of 1783, in addition to this loan, which Mr Adams had opened in Holland. They will also recollect, that I had anticipated upon those resources about three and a half millions of livres during the year 1782. And that this anticipation was over and above the sum of a million and a half of florins, which we then knew to have been borrowed in Holland. Allowing, therefore, for the supposed increase of half a million of florins or a million of livres, there will still remain of anticipation two and a half millions of livres; so that of the sum lent for this year by his Most Christian Majesty there will remain but three millions and a half of livres. According to the common course of exchange, this sum cannot be expected to yield more than six hundred thousand dollars. Six hundred thousand dollars, therefore, with what the States will yield in taxes, form the whole of our expectations for the current year. From this is to be deducted one month's pay already promised to the army, amounting by estimate to upwards of two hundred and fifty thousand dollars.

To judge of our prospects for what remains, Congress will be pleased to observe, that the subsistence of our officers is nearly twenty thousand dollars, that the rations issued in New York and New Jersey are about fifty thousand dollars, and that the rations of the southern army will probably amount to upwards of twelve thousand dollars. If to this be added the various detached corps, it will be found, that the articles of rations and subsistence, exclusive of the prisoners, will form an amount of about ninety thousand dollars a month. My anticipations on the taxes are so well known, that it is not necessary to mention them any more than the other objects of forage, &c. which are indispensable. I have gone into these few details merely to elucidate one position, viz. that _all the money now at our command, and which we may expect from the States for this two months to come, will not do more than satisfy the various engagements, which will by that time have fallen due_.

It is of importance that Congress should know their true situation, and therefore I could wish, that a committee were appointed to confer with the Minister of France. My reason for that wish is, that every member of Congress may have the same conviction, which I feel of one important fact. _That there is no hope of any further pecuniary aid from Europe._ The conduct of the French Court on the subject has been decisive. Some persons have indeed flattered themselves, that her positive declarations were merely calculated to restrain our rashness and moderate our excess, but these ideas can no longer have place in any sound and discerning mind. Her conduct has been consistent with her declarations, and if she had ever so much inclination to assist us with money _it is not in her power_.

But whatever may be the ability of nations or individuals, we can have no right to hope, much less to expect the aid of others, while we show so much unwillingness to help ourselves. It can no longer be a doubt to Congress, _that our public credit is gone_. It was very easy to foresee that this would be the case, and it was my particular duty to predict it. This has been done repeatedly. I claim no merit from the prediction, because a man must be naturally or wilfully blind who could not see, _that credit cannot long be supported without funds_.

From what has already been said, Congress will clearly perceive the necessity of further resources. What means they shall adopt, it is in their wisdom to consider. They cannot borrow, and the States will not pay. _The thing has happened which was expected._ I cannot presume to advise. Congress well knew that I never pretended to any extraordinary knowledge of finance, and that my deficiencies on this subject were a principal reason for declining the office. I have since had reason to be still more convinced of my incompetency, because the plans which I did suggest have not met with approbation. I hope, therefore, that some abler mind will point out the means to save our country from ruin.

I do assure you, Sir, that it is extremely painful to me to be obliged to address Congress on this subject. I wish most sincerely, that I could look at our future prospects with the same indifference, that others have brought themselves to regard them. Perhaps I am not sufficiently sanguine. It is common for age to listen more to the voice of experience than youth is inclined. The voice of experience foretold these evils long since. There was a time when we might have obviated them, but I fear that precious moment is passed.

Before I conclude this letter, I must observe on the misconstructions, which men, totally ignorant of our affairs, have put on that conduct, which severe necessity compelled me to pursue. Such men, affecting an intimate knowledge of things, have charged the destruction of public credit to me, and interpreted the terms of my resignation into reflections upon Congress. I hope, Sir, that so long as I have the honor to serve the United States, I shall feel a proper contempt for all such insinuations. I shall confidently repose myself on the candor of Congress. It is for them to judge of my conduct on full and intimate knowledge. Writers for a newspaper may, indeed, through the medium of misrepresentation, pervert the public opinion, but the official conduct of your servants is not amenable to that tribunal. I hope, however, to be excused for observing, that on the day in which I was publicly charged with ruining your credit, those despatches arrived from Europe, which tell you it was already at an end. The circumstances which I alluded to in my letter of resignation, were not yet known in Europe. It was not yet known that Rhode Island had unanimously refused to pass the impost law, and that Virginia had repealed it. The very delays, which the measures of Congress had met with, were sufficient to sap the foundations of their credit. And we now know that they have had that effect. When those circumstances, therefore, shall be known, it must be overturned. I saw this clearly, and I knew that until some plain and rational system should be adopted and acceded to, the business of this office would be a business of expedient and chicane. I have neither the talents nor the disposition to engage in such business, and, therefore, I prayed to be dismissed. I beg pardon, Sir, for this slight digression. I shall trespass no longer on your patience, than to assure you of the veneration and respect, with which I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE RECEIVERS OF CONTINENTAL TAXES IN THE SEVERAL STATES.

Office of Finance, April 7th, 1783.

Sir,

I enclose you an account of the public receipts and expenditures from the commencement of my administration to the close of last year. While in compliance with what I conceive to be the duty of those intrusted with expenditures of public money, I publish these accounts, I cannot but blush to see the shameful deficiency of the States. You will, I hope, take occasion to make the proper remarks, and, indeed, it were to be wished that some able writers would rouse the attention of your Legislature to our situation. Surely the pride and good sense of the people will combine in stimulating them to exert themselves, so as to stand on their own feet, and not owe a support to the precarious bounty of foreign powers.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, April 7th, 1783.

Sir,

I do myself the honor to enclose for your Excellency's perusal, and the consideration of your Legislature, a statement of receipts and expenditures for the years 1781 and 1782, so far as the same have fallen under my administration. You will also find enclosed, the general accounts of receipts from the States, and subsequent payments into the treasury for the last year, together with the particular account of your State for that period. I shall not trouble your Excellency with any comments on these accounts.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO A COMMITTEE OF CONGRESS.

Office of Finance, April 14th, 1783.

Gentlemen,

Since the conference I had the honor to hold with you on the 9th instant, my mind has been continually occupied on the important subject to which it relates. My feelings are strongly excited by what I wish for the public, and by what I apprehend, both for them and for myself.

The two points, which relate to my department, are the settlement of accounts and advance of pay. With respect to the first, it is now going on in a satisfactory manner, and will be as speedily accomplished as can reasonably be expected. The arrangements taken on that subject are of such a nature, that I conceive the disbanding of the army need not be delayed until the settlement is completed, because the proper officers may be kept together, although the men be dismissed. The amount of three month's pay, which is stated by the General to be _indispensable_, is, according to the estimate, seven hundred and fifty thousand dollars. From what I have already stated to Congress, it will appear that the reliance for a great part of this sum, must be on the sales of public property and the taxes. Neither of these sources can produce much immediately, and from the latter there is but little hope at all, unless something can be done to stimulate the exertions of the States.

The receipts being regularly published, I am spared the necessity of disagreeable observations on that topic. To supply so large a sum as is required is utterly impracticable, or, indeed, to obtain any very considerable part. The most, therefore, which can be done, is to risk a large paper anticipation. This is an operation of great delicacy, and it is essential to the success of it, that my credit should be staked for the redemption. Do not imagine, Gentlemen, that this declaration is dictated by vanity; it becomes my duty to mention truth. I had rather it had fallen from any other person, and I had much rather it did not exist. In issuing my notes to the required amount, it would be necessary that I should give an express assurance of payment, and in so doing, I should be answerable personally for about half a million, when I leave this office, and depend on the arrangements of those who come after me to save me from ruin. I am willing to risk as much for this country as any man in America, but it cannot be expected that I should put myself in so desperate a situation. To render the arrangements, which that advance would require, effectual in an official point of view, would be a work of time, and the period of my official existence is nearly arrived.

Disbanding the army in a manner satisfactory to them and to the country, is doubly desirable, and although extremely difficult, is I believe practicable. I shall be very ready at all times, Gentlemen, to give my advice and assistance to those who may be charged with that delicate and perilous undertaking, and I would go as far to effect it myself as any reasonable man could require. But though I would sacrifice much of my property, yet I cannot risk my reputation as a man of integrity, nor expose myself to absolute ruin.

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

ROBERT MORRIS.

* * * * *

TO ALEXANDER HAMILTON.

Office of Finance, April 16th, 1783.

Sir,

I have been duly honored with the receipt of your favor of the 15th instant. I accepted the Marine Agency, simply with a view to save the expense of the department; but whenever a Marine is to be established a previous point would be (in my opinion) to nominate a Minister of Marine, and let his first work be the forming of those plans and systems, which when adopted by Congress, he would have to execute. For my own part, were my abilities equal to this task, my leisure would not permit the attempt.

With respect to the finances, I am of opinion, that as we cannot increase our revenue, we must do all we can to lessen our expenditures, and that, therefore, we should take off every expense not absolutely necessary as soon as possible.

On the subject of the coin, I hope soon to make a communication to Congress, which, if approved of by them, will complete the business.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, April 23d, 1783.

Sir,

On the 21st of February, 1782, Congress were pleased to approve of the establishment of a mint, and to direct the Superintendent of Finance to prepare and report a plan for conducting it. This matter has been delayed by various circumstances until the present moment. I now enclose specimens of a coin, with a view that if Congress should think proper to appoint a committee on the subject, I may have the honor of conferring with them, and explaining my ideas of the plan for establishing and conducting a mint. Such plan when reported by a committee, will more probably meet the ideas of Congress than any which I might prepare.

I have the honor to be, &c.

ROBERT MORRIS.[14]

[14] _April 29th._ This morning when I received the book from the
office of the Secretary of Congress, in which the Acts of Congress
that respect this department are entered every day, I perceived
that the committee who had conferred with me respecting my
continuance in office after the last day of next month had not
reported the whole of the conversation which passed, and that the
report as entered on the Journals of Congress, mistakes the sense
of what passed on my part. I, therefore, wrote a note to Mr
Osgood, informing the committee that they had misconstrued my
sentiments. He soon called, and upon my repeating some material
parts of the conversation, he acknowledged they had been omitted.
I requested him to call the committee together again, but he said
they had made their report, and are dissolved, but he would
immediately return to Congress, have my note to him read, and move
to have the report of the committee expunged from the Journals.
_Diary._

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 1st, 1783.

Sir,

When I saw the journal of the 28th of last month, I was surprised to find that the report of the honorable committee appointed to confer with me relative to my continuance in office, did not contain those ideas, which I had endeavored to convey. I immediately wrote a note to the chairman mentioning "that the committee had misapprehended the conference on my part." When the conversation passed, I had no expectation of seeing it introduced into the report, or I should certainly have asked permission to deliver my sentiments in writing.

I am placed, Sir, in a very painful situation and must therefore entreat your indulgent interpretation of what I am compelled to say. I had the honor of two conferences with the committee, and in the mornings after those conferences, respectively, made short minutes of what had passed. It is my custom to make such minutes with respect to most of my transactions, and as they were originally intended merely to aid my own memory, they are not very minute or particular. Those to which I now refer are contained in the following words;

_April 22d, 1783._ "The honorable Mr Osgood, Mr Bland, Mr Peters, Mr Madison, and Mr Hamilton, a committee of Congress appointed to confer with me respecting my continuance in office. I told them that a letter from Mr Grand, gave a new complexion to our affairs in Europe, and that a frigate being just arrived in a short passage from France I expect further advices, which I am desirous of seeing before I enter into this conference. I stated the difficulty of fulfilling engagements, and the danger of taking any new ones."

_April 24th, 1783._ "The committee of Congress called this morning, in consequence of Mr G. Morris having told Mr Osgood, that he imagined I was ready for a conference with them. I told the committee that my mind had been constantly occupied on the subject, from the time they first called until the present moment. That I see and feel the necessity and propriety of dismissing the army among their fellow citizens, satisfied and contented; that I dread the consequences of sending them into civil life, with murmurs and complaints in their mouths; and that no man can be better disposed than I am to satisfy the army, or more desirous of serving our country, but that my own affairs call loudly for my care and attention. However, having already engaged in this business, and willing to oblige Congress if they think my assistance essential, I will consent to remain in office for the purpose of such payment to the army, as may be agreed on as necessary to disband them with their own consent, &c. But prayed of Congress to excuse me from even this service if they can accomplish their views in such other way as they may approve."

These, Sir, are exact copies of my minutes on the subject, and although they were hastily drawn, yet I can safely appeal to the committee to declare, whether they do not contain what really passed, and also whether I did not (in reply to a question put to me by one of the members) say, that I expected, if Congress should ask me to continue in office, they would confine their request to the effecting that particular object of satisfying the army, and would distinguish it from anything, which might be construed into an approbation of their plan for funding the public debts.

I hope, Sir, that Congress will excuse me for picturing the situation I was in, and the feelings which arose out of it. By the Act of the 7th of February, 1781, it was declared to be the duty of the Superintendent of Finance, "to digest and report plans for improving and regulating the finances." Congress well know, that I have from time to time attempted the performance of this duty, and they know also, that such plans have not met with their approbation. The clear inference is, what I have already declared both previously and subsequently to my appointment, that my abilities are unequal to the task I am called to perform. If, therefore, Congress would at any time have made a new appointment, I should have considered it as the greatest favor. But since they saw fit to continue me in office, I prepared the best plans which I could devise, and finding they were not agreeable to the ideas of Congress, I waited for the adoption of such as might be suggested from some other quarter, or originated among themselves. I patiently, but anxiously waited until the 24th of January last; but then a clear view of those circumstances, which have since followed, compelled me to request they would appoint some other man to be the Superintendent of their Finances, if effectual measures were not taken by the end of May, to make permanent provision for the public debts of every kind. On the 26th of February, finding that no successor was yet appointed, and that the plans of Congress were not yet completed, I requested leave _to give due and seasonable information of my removal to those who had confided in me_. By this means I became pledged to the world, not to continue in office after the end of May, unless such measures as I conceived to be effectual, should be taken before that period, to provide for the public debts. On the 7th of March, I received the report of a committee on the finances, with orders to transmit my observations. These are contained in a letter of the 8th. On the 9th day of April, (no plan being yet adopted) a committee called on me to know, whether three months' pay could be advanced to the army. I stated to them the incapacity of the public treasury to complete in any short period the one month's pay already promised, as also the great anticipations made on the public revenue. And on the 14th, in a letter recapitulating the hazardous situation of things, I informed them that I believed the object they had in view was practicable by means of a large paper anticipation. On the 18th the plan was adopted for funding the public debts.

It was under these circumstances, Sir, that I held the conferences now immediately in question. It was my most earnest desire to be dismissed from office, and I stood pledged for it to the public. But a circumstance of peculiar nature, which had not been foreseen, now presented itself. That army to whom we were indebted for our national existence was to be disbanded, either in extreme misery, or with some little relief. Every principle of justice and gratitude called loudly to administer it; but this could not be done without entering into engagements beyond our resources. The dictates of prudence would, indeed, have determined me to adhere inflexibly to the resolution expressed in my letter of the 24th of January. By so doing I hazarded nothing. And as far as my own reputation was concerned, I could have placed it in security. For I must be permitted to say, that if solid arrangements had been taken to establish national credit, four times the required sum might have been easily obtained. No evils, therefore, had arisen, which I had not predicted, and none which it was possible for me to guard against.

But, Sir, my conduct was not influenced either by personal or prudential motives. A sense of the situation to which Congress were reduced, an earnest desire to support their dignity and authority, a grateful regard to our fellow citizens in arms, mingled with respect for their sufferings and virtues. These sentiments, Sir, decided my opinion. I agreed for your sakes and for theirs to enter into a labyrinth, of which I did not then, nor do I now see the termination.

But I could not do this, except under conditions and limitations. The conditions were, that Congress should ask my continuance, and pledge themselves for my support; the limitations, that the objects of my continuance should be accurately expressed, and that it should be confined to the fulfilment of such engagements, as those objects might require. These terms were expressed to the committee, and I am sure they will do me the justice to acknowledge that they were so. Whether they were reasonable, and whether they have been complied with, form questions of some importance.

It may be suggested, that asking my continuance would derogate from the dignity of Congress. How far this observation is founded, will appear from a resolution of the 21st of December last. It was not a new thing to make such requests, nor was the practice obsolete, yet I should not have desired anything more particular on this subject than has been done in the Act of the 28th of April, although far short of what other persons have received. But surely it will be admitted, that I had a right to expect Congress would pledge themselves for my support when I entered into such deep engagements for theirs. Whether the limitation of my continuance in the manner just mentioned was proper, will appear from considering whether it consisted with the dignity of Congress to procure my tacit approbation of their system for funding the public debts; a system widely different from ideas, which I had expressed on a variety of occasions, and in the most pointed manner. Surely, Sir, it was not kind to place me in a situation where I must appear either to refuse the performance of an important public service, or to break the most solemn engagements and contradict the most express declarations. I might dwell much on this question, but the delicacy of Congress will render it unnecessary.

The second question is, whether the terms I offered have been complied with. And this question is answered by a bare inspection of the Act. Your Excellency will pardon me for mentioning, that the report and resolution considered conjunctively, rather convey the idea of a permission to hold my office than anything else. I had declared to the committee, and here again repeat, that a longer continuance would be extremely disagreeable to me, and that nothing but the particular circumstances already mentioned, could induce my consent. I must add, that under the resolution in its present form I cannot stay. I shall detain your Excellency no longer than to mention, that I am sensible some other man may still suppose that I am only desirous of obtaining from Congress some more particular resolutions. To obviate such disingenuous remarks, it is my humble request that no further question be made on my subject. If, Sir, I have rendered any services, and if those services have merited any return, I shall ask no other reward than a compliance with this request.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 3d, 1783.

Sir,

Upon consideration of the Act of Congress, of the 28th of April[15] and 2d instant, I have determined to comply with their views. But I pray it may be understood, that my continuance in office is limited to the particular object of fulfilling my present engagements, and those which the necessity of our affairs may compel me to form. Let me entreat your Excellency to inform Congress, that I entertain a proper sense of their assurance of firm support, and that in a reliance on it I shall continue my zealous exertions for the service of the United States.

I have the honor to be, &c.

ROBERT MORRIS.

[15] Requesting Mr Morris's continuance in office.

* * * * *

TO M. DE LA LUZERNE.

Office of Finance, May 6th, 1783.

Sir,

I do myself the honor to enclose to your Excellency the copy of an Act of Congress of the 2d instant. I shall in consequence thereof address some special despatches to Dr Franklin, by a packet boat, which I will communicate to your Excellency, and pray you to write to your Court on the subject of them.