Chapter XIII: Part 13

In the meantime, I beg leave to mention to you, Sir, that if, (as I am informed,) the administration of your army have more money in this country than they have immediate occasion for, it would greatly facilitate my operations to be possessed of it. What I have to propose on the subject is, that whatever sum may be paid to me here, should be deducted from the three millions mentioned in the enclosed resolution, and be repaid from the amount of the existing requisitions on the States. But that if this arrangement should not be agreeable to the Court, then that it be paid in France or here, immediately after I shall have been made acquainted with his Majesty's pleasure, and in such way as shall be most agreeable to your Court.

I present this matter to you, Sir, quite naked of arguments, to enforce the request. I am sure, that you will do what you conceive to be right; you know our situation, and I presume that you are acquainted with the orders given to your administration.

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

ROBERT MORRIS.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, May 12th, 1783.

Sir,

I do myself the honor to enclose to your Excellency, Acts of Congress of the 28th of April and 2d instant, together with a copy of my letters in answer. Permit me to assure you, Sir, that nothing would have induced me to continue in office, but a view of the public distresses. These distresses are much greater than can easily be conceived. I am not ignorant that attempts are made to infuse the pernicious idea that foreign aid is easily attainable, and that of the moneys already obtained a considerable part remains unappropriated. If such attempts were injurious only to my reputation, I should be entirely silent; but they are calculated to prevent exertions, and are therefore injurious to the public service. I most seriously assure you, that I do not expect success in the application to France, directed by the Act of the 2d instant, although my earnest endeavors shall not be wanting.

If, however, it should prove successful, we shall only be enabled to draw resource from it at a future period, and the amount is to be replaced from the produce of existing requisitions on the States. With respect to the moneys, which have already been obtained abroad, I will not pretend to say what lights those gentlemen may have, who speak on the subject in a decisive tone, but I candidly acknowledge, that I have never yet been able to obtain a clear statement of them, which is the reason why no account of those moneys have yet been laid before the public. Those who know the confusion in our domestic transactions, from which we are just beginning to be extricated, will not be surprised that foreign transactions dependent on them should also be deranged. Neither can it be expected that in the midst of war the accounts could be so soon adjusted and transmitted as could be wished. I have written to obtain them, and a commissioner is employed in adjusting them. From the best statement and estimate which I have, I can assure you, that what remains at my disposition is extremely small.

Your Excellency is doubtless informed, that at the close of last year, there was an anticipation on the public credit to the amount of above four hundred thousand dollars. This anticipation amounts to a greater sum now than it did then, and a very considerable addition must be made at the disbanding of the army. My mere assertion might, I am sensible, be drawn into doubt, but, Sir, there is evidence sufficient to convince every considerate man. The expenses of 1782 were above twentytwo hundred thousand dollars; those of 1783 are greater, by a month's pay made to the army, and by extending the contract for rations. Near five months of this year are already expired. One month's pay of the army is above two hundred and fifty thousand dollars, according to the establishment, and although the army is not completed to its establishment, yet the deficiency, being in private sentinels, will not form a great deduction.

The conclusion from what I have stated is clear and irresistible; there is no reliance but on the energy of the States, and it is on that reliance that I rest for the affairs of my department. I shall not add anything to what is said in the resolutions of Congress, as inducements for, or to stimulate exertions, because I cannot suppose that the voice or the word of an individual servant will meet an attention which is not paid to the representation of the whole empire, expressed in its solemn Acts, and on the most urgent occasion, where wisdom, justice, and gratitude combine to enforce the requisition.

I am, Dear Sir, yours, &c.
ROBERT MORRIS.

* * * * *

TO THOMAS BARCLAY, AGENT FOR SETTLING THE PUBLIC ACCOUNTS IN EUROPE.

Office of Finance, May 12th, 1783.

Sir,

I have received from you many letters, which I beg leave to acknowledge.

The bills drawn by order of Congress at a long sight on their Ministers, as well in Spain and Holland as in France, have involved the affairs of my Department in a labyrinth of confusion, from which I cannot extricate them, and I very much fear that many of these bills will have been twice paid. I know not what has been done respecting them, and only know, that ever since I entered into office they have not only plagued and perplexed me, but they have invariably consumed the resources on which I have formed a reliance. I have now determined to refer them all to Mr Grand for payment, but according to such arrangements as you shall take. You will be pleased, therefore, to consult with Dr Franklin, Mr Adams, Mr Laurens, and Mr Jay, to whom I write on the subject, as you will see by the enclosed letters.

I enclose you an account from the treasury of what bills have been drawn on those gentlemen, and I am to request, that you will obtain as soon as possible an account of the payments made on them, as also of those which are still due, and take measures to have them paid by drafts for the purpose, if necessary, on Mr Grand, and provide against the double payments, which I fear. I have already ordered funds into Mr Grand's hands. Some I expect from you. As the credit I gave you has not been used, that alone furnishes a part, and I expect there will be considerable balances from the sales of the Alliance's prizes, of which I am daily expecting your accounts, &c. You will also, I suppose, have recovered the insurance you made, to the amount of forty thousand florins, which will be something. Every aid which you can bestow is necessary, for I fear those bills will plunge him into great difficulties, and the protest of any public bills, particularly any which I should draw, would reduce our affairs here to infinite distress.

I am also to request of you, that you will cause as soon as possible all the accounts of the clothing, arms, and other supplies to be liquidated and transmitted, so that they may be properly adjusted here; for at present, that business is in a state of extreme confusion.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO B. FRANKLIN.

Office of Finance, May 12th, 1783.

Sir,

The bills drawn by Congress in their necessities press very heavily upon me, and one of the greatest among many evils attending them is the confusion in which they have involved the affairs of my Department. I have not yet been able to learn how many of these bills have been paid nor how many remain due; neither am I without my fears, that some of them have received double payment.

To bring at length some little degree of order into this chaos, after waiting till now for fuller light and information, I write on the subject to Mr Adams and Mr Jay, and send Mr Barclay, to whom I also write, a copy of the enclosed accounts, directing him to consult with your Excellency, and with them to transmit me an account of the bills paid, and of those remaining due, and to take measures for preventing double payments. The enclosed accounts will inform you, that of the bills drawn for interest and those for carrying on the current service, which have gone forward through the Loan Offices, amount, the first to one million six hundred and eightyfour thousand two hundred and seventyeight dollars; equal to eight millions four hundred and twentyone thousand three hundred and ninety livres; and the second to two hundred and eightysix thousand seven hundred and thirtythree and one third dollars; equal to one million four hundred and thirtythree thousand six hundred and sixtysix livres, six sous, and eight deniers.

Let me entreat you, Sir, to forward these views as much as possible, for you will, I am sure, be sensible how necessary it is for me to know the exact state of our pecuniary affairs, lest on the one hand I should risk the public credit by an excess of drafts, or on the other leave their moneys unemployed, while they experience severe distress from the want.

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

ROBERT MORRIS.

* * * * *

TO A COMMITTEE OF CONGRESS.

Office of Finance, May 15th, 1783.

Gentlemen,

In consequence of the conversation which passed between us this morning, I shall give you the best information in my power as to the state of my Department and the resources I can command.

You have in the enclosed paper an account of receipts and expenditures from the commencement of the year to the end of the last month; by which it appears, that there is an advance on credit to the amount of near six hundred thousand dollars, exclusive of what may appear in Mr Swanwick's accounts for the month of April. A large sum is also due on General Greene's drafts, and the contractors are to be paid in this month for the supplies of January last. At the end of this month, therefore, that anticipation must necessarily be much increased, as will appear from the slightest reflection after what is to be said of our resources.

These are either foreign or domestic. As to the first, I enclose the copy of the last letter I have received from Mr Grand, and I have to add to what is contained in that letter, that the day it was received, my drafts on him, over and above those mentioned in it, amounted to three millions forty thousand two hundred and seventyeight livres. I have directed, therefore, Mr Barclay to pay over to Mr Grand any moneys, which may be in his possession, and I have directed Messrs Willink & Co. of Amsterdam to do the same, after deducting what may be necessary to pay the interest of their loan falling due the 1st of June next. But as I have no accounts of how much has been borrowed since the end of January, and as all which had been borrowed before was disposed of, I cannot determine how far they can come in aid of Mr Grand. Neither can I tell until the receipt of his accounts what aid he may stand in need of. In these circumstances I am obliged to leave about eighteen hundred thousand livres (which remain of a sum placed in the hands of Messrs Le Couteulx for answering drafts intended through Havana,) to answer any deficiency of other funds to pay my drafts on Mr Grand. These then, Gentlemen, are all the foreign resources, except what the French Court may advance on the late resolutions of Congress, and you will see by the enclosed translation of a letter from the Minister of France, what little hope is to be entertained from that quarter.

Our domestic resources are twofold. First, certain goods and other property, such as horses, wagons, &c. These latter will produce very little, and the former are, by the peace, very much reduced in value, and from the nature of the goods themselves they are chiefly unsaleable. Very little reliance, therefore, can be placed on this first dependence. The amount I cannot possibly ascertain, for I do not yet know, and cannot until the opening of them now in hand shall be completed, the kinds, quality and situation. Some are damaged, those which were deemed most saleable have been tried at vendue, and went under the first cost, and much the greater part will certainly not sell at a fourth of their value.

The only remaining resource is in the taxes, and what they may amount to, it is impossible to tell. But you have enclosed an account of what they yielded the four first months of this year, and you will see from thence, that if all expense had ceased on the first day of this month, the anticipations already made would not have been absorbed by the same rate of taxation in eight months more.

Now then, Gentlemen, you will please to consider, that if your army is kept together they will consume as much in one month as the taxes will produce in two, and probably much more; to make them three months' pay will require I suppose at least six hundred thousand dollars, and every day they continue in the field lessens the practicability of sending them home satisfied. The anticipations of revenue are threefold, two of which appear as to their effects in the public accounts, and one very considerable one, though it produces great relief, is not seen. It consists in the drawing of bills on me for the public service by different persons and at different usances. I imagine that these amount at the present moment to one hundred thousand dollars. The other anticipations consist in loans from the bank on the issuing of my own notes. As to the first of these it is limited in its nature by the capital of the bank, which being small will not admit of great deductions, and it depends much upon circumstances, whether the bank will go to the extent which they may go. If they find the revenues increasing and the expenses diminishing, they will, but otherwise, they certainly will not. As to the notes I issue, and which form the greatest part of my anticipations, these have also a certain limit, to exceed which would be fatal. I must not so extend that circulation, as that I shall be unable to pay them when presented, for that would totally destroy their credit, and, of course, their utility.

If anything of this sort should take place before the army are disbanded, you will see at once that they could be fed no longer, and must of course disband themselves. I will not dwell on the consequences, but I will draw one clear conclusion, which you have, doubtless, by this time anticipated, viz. that unless they are disbanded immediately, the means of paying them, even with paper, will be gone. And this sentiment I have not delivered to you, but to a former committee, as well as to many individual members of Congress.

But when I speak of disbanding the army, I beg to be understood as meaning to reserve a sufficient garrison for West Point; and on this subject I pray to be indulged in a view of our political and military situation as far as relates to this capital object of my department. And first, as to our political situation, I conceive that we are at peace. It is true, that the definitive treaty is not, that we know of, completed; but it is equally true, that all the other belligerent powers have been disarming for mouths past, and I presume they are at least as well acquainted with the state of things as we are. To express doubts of the sincerity of Britain on this subject is, I know, a fashionable, but in my opinion a very foolish language. We have the best evidence of their sincerity, which the nature of things will admit, for we know they are unable to carry on the war, and we see and feel, that they are passing every act, and doing everything in their power to conciliate our affections. Expressions of doubts as to their sincerity, if intended to foster enmity against them, will fail of the effect and produce the direct contrary, for everybody will soon learn to consider them as unjustly suspected, and their Ministers will take care to inculcate and enforce the sentiment.

As to our military situation some of the troops in the southern States have already mutinied, the principal part of them are ordered away, and since the Floridas are ceded to Spain it follows, that those troops which may remain in the southern States will have to operate against the Spaniards if they operate at all. So that every man, except those under the General's immediate command and the little garrison of Fort Pitt, are in fact disbanded to every purpose but that of expense.

The prisoners are some of them going, and the rest gone into New York, so that in a few days the enemy will be able to do everything which they could do if the greater part of our army were gone home. For they could not take West Point if it is properly garrisoned, and they could ravage the country in spite of our army when theirs shall be all collected.

Our situation, therefore, seems to be this. We are keeping up an army at a great expense, and very much against their inclinations for a mere punctilio, and by that means incapacitating ourselves from performing what they begin to consider as a kind of engagement taken with them. I shall detain you no longer on this subject, but must repeat one observation, which is, that unless the far greater part of our expenses be immediately curtailed, the object Congress had in view by their resolutions of the 2d instant, cannot possibly be accomplished.

I have the honor to be, &c.

ROBERT MORRIS.[16]

[16] _May 13th._ Mr Gorham and Mr Hamilton, two members of a
committee of Congress for conferring with the Secretary of War,
the Secretary of Foreign Affairs, and myself, relative to
disbanding the army, met this morning. I opened the business, and
stated very fully the necessity of disbanding the army, in order
to get clear of an expense, which our resources are unequal to,
and which cannot be supported many months at any rate, but which,
if continued any longer, will consume the only means now left for
making a payment to the army when disbanded. The gentlemen of the
committee seemed perfectly satisfied of the necessity of
disbanding the army on principles of economy, but opposed to it on
principles of policy, in which the Secretary of Foreign Affairs
joins with them. The Secretary at War said little, and I related
an observation which he had made to me a few days before in favor
of disbanding the army directly, viz.; that they would not
continue in the field under their present enlistments, if the war
were to break out again; but that in such a case we must begin
entirely anew. The conclusion of the conference is, that I am to
state the reasons resulting from the situation of our finances,
which induce an immediate disbanding of the army, in writing to
the committee. _Diary._

* * * * *

TO MAJOR GENERAL GREENE.

Office of Finance, May 16th, 1783.

Sir,

Your bills on me fall very heavy, and I am in hourly apprehensions of being unable to pay them. You will see, therefore, that it is utterly impossible to send money for your military chest. I hope, however, and expect, that the sales of the public property will provide you more money than you stand in need of. I know not what orders the Secretary at War may give, but if they be agreeable to my wishes, they will contain an absolute dismission of all the troops in your quarter, for I can see no use in keeping them together.

The attacks made upon you, might reconcile me to those which I experience, for they show that no conduct, however just, can possibly escape censure. It is far easier to be faultless than blameless, and the experience I have had in this way leads me to a total disregard of all things, so far as conduct is to be determined. But I must at the same time acknowledge, that I cannot help feeling indignation whenever they are made. They are for the most part mere ebullition of low malice, and if rightly understood contain the most indisputable acknowledgement of merit. Let this reflection console you for what you have already experienced and what may yet be behind.

I thank you for the sentiments you express in my favor. You will have seen, that contrary to every private interest and sentiment I have agreed to a longer continuation in office. And you may rest assured, that nothing but a view of the public necessities should have induced me still longer to bear up under the burden. Not because I regard the calumnies I meet with, for although they excite my feelings they shall not influence my conduct, but because I do not think those measures are pursued, which are calculated for the happiness of this country, and I do not wish to participate in any others.

There are many persons in the Southern States, who think the measures of Congress and of their servants are directed to the particular good of Pennsylvania, and more who pretend to think so. It is a little history of human weakness and I might say meanness, the manner in which antipathies have been imbibed and propagated with respect to my department. One sample will show the texture of the whole piece. While I was in advance, not only my credit but every shilling of my own money, and all which I could obtain from my friends, to support the important expedition against Yorktown, much offence was taken that I did not minister relief to the officers taken prisoners at Charleston. I felt their distresses as sincerely as any man could do, but it was impossible to afford relief.

Before I close the letter, I must again repeat my solicitude on the score of your bills, which are coming in upon me so fast, that the means of paying them must, I fear, be deficient. Take care, therefore, to draw as little and at as long sight as possible.

I am, Sir, your most obedient, &c.

ROBERT MORRIS.

* * * * *

TO B. FRANKLIN.

Office of Finance, May 26th, 1783.

Sir,

I have now before me your letters of the 14th and 23d of December, which are the last I have received. Enclosed you have a letter from me to the Minister of France, with his answer of the 14th of March, on the subject of the delay which happened in transmitting his despatches. You will see by these, that Lieutenant Barney was not to blame.

Your bills in favor of M. de Lauzun have not yet appeared, or they should have been duly honored. That gentleman has since left the country, and therefore it is possible that the bills may not come.

The reflections you make, as well on the nature of public credit, as on the inattention of the several States, are just and unanswerable; but in what country of the world shall we find a nation willing to tax themselves. The language of panegyric has held forth the English as such a nation, but certainly if our Legislatures were subject to like influence with theirs, we might preserve the form, but we should already have lost the substance of freedom. Time, reason, argument, and above all, that kind of conviction, which arises from feeling, are necessary to the establishment of our revenues, and the consolidation of our union. Both of these appear to me essential to our public happiness; but our ideas, as you well know, are frequently the result rather of habit than reflection, so that numbers who might think justly upon these subjects, have been early estranged from the modes and means of considering them properly.

I am in the hourly wish and expectation of hearing from you, and sincerely hope it may be soon. Believe me, I pray, with esteem and respect, yours, &c.

ROBERT MORRIS.

* * * * *

TO B. FRANKLIN.

Office of Finance, May 26th, 1783.

Sir,

By the enclosed Acts of the 28th of April and 2d of May, with the copy of my letter to Congress of the 3d of May, you will perceive that I am to continue somewhat longer in the Superintendence of our Finances. Be assured, Sir, that nothing but a clear view of our distresses could have induced my consent. I must at the same time acknowledge, that the distresses we experience, arise from our own misconduct. If the resources of this country were drawn forth, they would be amply sufficient, but this is not the case. Congress have not authority equal to the object, and their influence is greatly lessened by their evident incapacity to do justice.

This is but a melancholy introduction to the request contained in the Act of the 2d instant. But I shall not be guilty of falsehood, nor will I intentionally deceive you, or put you in the necessity of deceiving others. My official situation compels me to do things, which I would certainly avoid under any other circumstances. Nothing should induce me in my private character to make such applications for money as I am obliged to in my public character. I know and feel that you must be in a disagreeable situation on this subject. I can anticipate the answers to all your requests; and I know you may be asked for payment when you ask for loans. Yet, Sir, I must desire you to repeat your applications. My only hope arises from the belief, that as the King's expenses are much lessened, he may be able to comply with his gracious intentions towards America.

And the only inducement I can offer is the assurance that the taxes already called for, shall be appropriated as fast as other indispensable services will admit, to the replacing of what the Court may advance.

Our situation is shortly this. The army expect a payment, which will amount to about seven hundred thousand dollars. I am already above half a million dollars in advance of our resources, by paper anticipation. I must increase this anticipation immediately to pay moneys due on contracts for feeding our army; and I must make them the expected payment by notes to be discharged at a distant day. Now, Sir, if these notes are not satisfied when they become due, the little credit which remains to this country must fall, and the little authority dependent on it must fall too. Under such circumstances it is, that you are to ask aid for the United States. If it can be obtained, I shall consider the obligation as being in some degree personal to myself, and I shall certainly exert myself for the repayment. You will be so kind, Sir, as to ship on board the Washington eighteen hundred thousand livres, but if the loan be not obtained, I must entreat you will give me the earliest possible information of the refusal.

I shall communicate this letter to the Minister of his Most Christian Majesty, and request him to write to the Count de Vergennes, on the subject of it. Believe me; I pray, with sincere and respectful esteem, &c.

ROBERT MORRIS.

* * * * *

TO M. DE LA LUZERNE.

Office of Finance, May 27th, 1783.

Sir,

I do myself the honor to enclose for your Excellency's perusal, the copy of a letter to Dr Franklin, which will go by the Washington packet, on Sunday next. I am to request, that your Excellency will write on the subject of it to the Count de Vergennes. You will observe, Sir, that I have made no mention whatever of the reasons, which might induce France to grant the aid requested. Every argument, which can apply to the interests of your Court, will come more properly, as well as more forcibly from your pen than from mine. I shall only ask, that you will give your own sentiments and views of our circumstances and situation. These will, I doubt not, be the most powerful reasons in support of the present application.

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

ROBERT MORRIS.

* * * * *

TO GEORGE WASHINGTON.

Office of Finance, May 29th, 1783.

Dear Sir,

I am now to acknowledge the receipt of your Excellency's letter of the 8th instant. I have not answered it sooner, because until now it has not been in my power to answer it satisfactorily.

By some designing men my resignation of office (grounded on a clear conviction, that unless something was done to support public credit, very pernicious consequences would follow) was misconstrued. It was represented as a factious desire to raise civil commotions. It was said that the army were to be employed as the instruments to promote flagitious interested views. These found admittance to minds, which should forever have been shut against them. We now rest on the event, to determine whether a sincere regard to public justice and public interest, or a sinister respect to my own private emolument were the influential motives of my conduct. I am a very mistaken man, if time and experience shall not demonstrate, that the interests of the army and of the public creditors are given up. But I mention these things only to you in confidence, for it shall not again be supposed that I am the leader of sedition.

Having done what was in my power to establish those plans, which appeared necessary for doing justice to all, and affording relief to our army in particular, I have acquitted what was the first and greatest duty. When it appeared that other modes were to be pursued, I would gladly have departed in peace, but it has been thought that my further agency was necessary, to procure for the army that species of relief, which they seemed to desire. The factious designing man, who was to have lighted up the flames of mutiny and sedition, has undertaken, a most arduous and perilous business to save this country from those convulsions, which her negligence had hazarded. This became a duty when the first duty to justice was performed, and this shall be performed also. It is now above a month since the committee conferred with me on that subject, and I then told them that no payment could be made to the army but by means of a paper anticipation, and unless our expenditures were immediately and considerably reduced, even that could not be done. Our expenditures have nevertheless been continued, and our revenue lessens, the States growing more and more remiss in their collections. The consequence is, that I cannot make payment in the manner first intended. The notes issued for this purpose would have been payable at two, four, and six months from the date, but at present they will all be at six months, and even that will soon become impracticable, unless our expenses be immediately curtailed.

I shall cause such notes to be issued for three months' pay to the army, and I must entreat, Sir, that every influence be used with the States to absorb them, together with my other engagements, by taxation. The present collections are most shameful, and afford but a sad prospect to all those who are dependent upon them.

I hope, my Dear Sir, that the state of public affairs will soon permit you to lay down the cares of your painful office. I should in two days have been liberated from mine, if a desire to free you from your embarrassments, and procure some little relief to your army, had not induced a continuance of them. But it must always be remembered, that this continuance is distinct from any idea, which may be connected with the plans for funding our public debts. As I do not approve of, so I cannot be responsible for them. Neither will I involve myself in endless details, which must terminate in disappointment.

With great respect, I am, &c.

ROBERT MORRIS.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, June 5th, 1783.

Sir,

Congress having directed a very considerable part of the army to be sent home on furlough, I am pressed exceedingly to make a payment of three months' wages, and I am very desirous to accomplish it, but the want of money compels me to an anticipation on the taxes by making this payment in notes. To render this mode tolerably just or useful, the notes must be punctually discharged when they fall due, and my dependence must be on the money to be received of the several States, on the requisitions for the last and present year. I hope the urgency of the case will produce the desired exertions, and fully enable me to preserve the credit and honor of the federal government.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, July 11th, 1783.

Sir,

I do myself the honor to enclose to your Excellency, a state of the public accounts, balanced on the last day of June, 1783. A view of these accounts will render it unnecessary to make many observations.

On the States I am to rely for payment of the anticipations amounting, as you will see, to more than a million. And you will observe, that this great anticipation has been made for that service, which all affect to have so much at heart. A payment to the American army. If they had received no pay during the year 1783, I might perhaps have been spared the necessity of this application, because it is probable that the taxes even as they are now collected might have absorbed such anticipations as I should then have been obliged to make.

Much pains have been taken to inculcate the idea that we have funds in Europe. Those funds which we had there are exhausted, and the general apprehension that no proper funds here will be provided has cut off all hopes from that quarter.

The question has frequently and industriously been asked, what becomes of the moneys which are paid in taxes. I have furnished the means of judging, as to those which reach the public treasury, to every man employed in the administration of government in the several States, for my accounts have been regularly transmitted. And I would not have mentioned the insinuation had it not been for the purpose of observing, that it is incumbent on all those who are desirous of forwarding a collection of taxes to show a fair appropriation, and not suffer groundless clamors to disturb the public mind.

It has been said that there is no necessity of urging the collection of taxes now, because the notes given to the army are not payable in less than six months. This again is an assertion whose mischievous operation is levelled at the very vitals of our credit. One month of that time is already expired with respect to all those notes which have been already issued. They are not the only notes in circulation. Notes are not the only modes of anticipation which have been adopted. And it is a serious fact, that unless more vigorous measures take place, the credit of all notes and of everything else must be destroyed. But this is not all. Supposing for a moment, that the notes given to our army were the only object whose credit was to be attended to. Can any reasonable man imagine, that they could be of any use if the payment were to depend on taxes which are not to be collected until the notes are due.

I have not been wanting on my part in pointing out from time to time, the mischiefs which must ensue from neglect. The applications have met with inattention, which personally I have disregarded, but which I could not but feel, from the consequences involved in it. Again, in compliance with the duty I owe to the United States, I call for that aid which they are entitled to. And on this occasion I take leave to observe, that the moment is very fast approaching which is to determine whether America is entitled to the appellation of just, or whether those who have constantly aspersed her character are to be believed.

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

ROBERT MORRIS.

* * * * *

REPORT TO CONGRESS RELATIVE TO THE PAY OF THE ARMY.

Office of Finance, July 15th, 1783.

The Superintendent of Finance, to whom was referred, on the 11th instant, the extract of a report, with order to report thereon, and also to report what measures he has taken relative to the pay of the army, begs leave to report,

That the receivers in the several States have long since been instructed, to take all notes signed by the Superintendent of Finance in payment of the taxes, and also, take up all such notes whenever tendered, if they have public money in their hands.

That when it was in contemplation to make a payment to the army, the committee who conferred with the Superintendent on that subject were informed, that it could only be done in notes, and that in order to support the credit of such notes, it would not be sufficient that they should only be receivable in taxes in some particular State, but that the receivers throughout the States must receive and exchange them, in like manner with other notes issued from the Office of Finance.

That the instruction to the receivers is generally known to all those who are concerned in the business they relate to, and in consequence thereof the receivers are in the constant practice of receiving and exchanging notes signed by the Superintendent of Finance, which they duly remit to the treasury.

That whenever they shall find it difficult to obtain such notes for the purpose of making their remittances (which is not likely to be the case in any short period,) they will naturally advertise to obtain them. Wherefore, any general notification, such as is contained in the extract committed, will be unnecessary.

That if such publication as is recommended were confined (as seems to have been the idea,) to those notes which have been issued for payment of the army, it would destroy what little credit is at present reposed in the public servants, and by bringing home immediately all other notes which have been issued, render it impracticable to discharge them; in which case the notes issued to the army could be of no use, because nobody would take them. The importance of preserving credit in this respect, will appear from the preamble to an Act of Congress of the 2d of May last.

That if (as is most probable) the publication were intended to relate alike to all notes, it is a thing which is already well known, and therefore the expense of printing may be spared.

With respect to the measures taken relative to paying the army, he begs leave to report, that upon an estimate from the War Office, he signed warrants for four months' pay of the present year, whereof one month's pay has been made to the noncommissioned officers and privates in specie, and to the officers in notes, and three months' pay to both officers and soldiers in notes. That the Paymaster has not yet received all the notes necessary for the purpose, but has in his hands as many as he wants for the present.

All which is humbly submitted.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, July 18th, 1783.

Sir,

I would sooner have replied to the Act of Congress of the 11th instant, if I had not been prevented by other business, which required immediate attention. The Act recites a representation to Congress, that certain parts of the army retired on furlough have not received the pay, &c. I will not contest the truth of this representation. But when I come to state such facts as are within my knowledge, I shall appeal to the candor of Congress how far that representation will warrant a censure against me.

I am directed to complete without delay the same payment to the officers and soldiers of the Massachusetts line which were ordered to be paid to the army at large. Congress will be pleased to observe, that they have passed no particular order to which the above resolution can refer. The general Acts which relate to paying our army from the _authority_ on which the payment alluded to was made. Supposing, however, that by the resolution is meant three months' pay, in notes payable at six months from the date; I must take liberty to remind Congress, that completing the payment to any part of the army is not the business of my department, but of the Paymaster General. All which can depend on me, is to put those notes into his hands when called for, and this has been done as fast as was possible.

I am directed to report the reasons why the troops lately furloughed did not receive a part of their pay previous thereto. Not being able, Sir, to make so full report on this subject as I could wish, I have written a letter to the Paymaster General, of which the enclosure, number one, is a copy. The answer to this letter shall be transmitted as soon as received. The facts relating to that matter which are within my knowledge are the following.

On the 9th day of April last, a committee of Congress did me the honor to call, for the purpose of consulting on certain propositions contained in a letter from the Commander in Chief to an honorable member from Virginia. One of these propositions was to make the army three months' pay previous to their disbandment. My reply was, an acknowledgement that the claim was very reasonable, a declaration that I doubted of the practicability, and a prayer to be indulged with time for consideration. On the 14th of April I wrote a letter to that committee, in which I had the honor to inform them, that three months' pay amounted, according to the estimates, to seven hundred and fifty thousand dollars. That to supply so large a sum was utterly impracticable, or indeed to obtain any considerable part. That the most which could be done was to risk a large paper anticipation. That to render the arrangements for that purpose effectual in an official point of view would be a work of time. That the period of my official existence was nearly arrived; that disbanding the army in a manner satisfactory to them and the country was doubtless desirable. That I believed it to be practicable, although extremely difficult, and that I should be ready at all times to give my advice and assistance to those who might be charged with that delicate and perilous undertaking.

On the 22d of April, Congress were pleased to appoint a committee to confer with me relative to my continuance in office. I told that honorable committee, that the late advices from Europe gave a new complexion to our affairs, and prayed some further time for the receipt of intelligence. On the 24th of April, I had the honor to inform the committee, that if Congress thought my assistance essential toward completing such payment to the army as might be agreed on, &c. I would consent to a further continuance in office for that purpose; but prayed to be excused from that service if Congress could otherwise accomplish their views.

On the 28th of April, Congress were pleased to resolve, that the public service _required my continuance in office_ till arrangements for the reduction of the army could be made, and the engagements taken in consequence, as well as those already taken, should be completed. On the 2d day of May Congress were pleased to pass some further resolutions on the same subject, which I shall shortly have occasion to mention. On the 3d of May I had the honor to entreat of your Excellency, that you would inform Congress that I entertained a proper sense of their assurance of firm support, and _in reliance on them_ should continue my zealous exertions for the service of the United States.

On the 9th of May, having had a conference with the Minister of War, on the resolutions of the 7th and 28th of April and 2d of May, we took the liberty to request, that a committee might be appointed to confer with us on the subject of those resolutions. On the 15th of May, two gentlemen of that committee did us the honor of the conference requested. In which it was stated, _as impracticable to make any payment to the army, unless our expenditures were immediately and considerably reduced_. The committee, however, being desirous to have the situation of things stated to them in writing, I wrote them a letter on the same day, showing, that on the last day of April we were in advance of our resources, to the amount of six hundred thousand dollars; that our foreign resources were exhausted; that our domestic resources as far as they consisted in sales of public property, were considerably reduced; that as far as they consisted in the produce of taxes they were extremely slender and precarious; that the monthly consumption of the army was at least double the monthly produce of the taxes; that if they were kept longer in the field, they would consume every resource by which the payment could possibly be made or hazarded. And, therefore, that _unless the far greater part of our expenses was immediately curtailed, the object Congress had in view by their resolutions of the 2d of May could not possibly be accomplished_. This letter was accompanied with the necessary documents to establish the positions contained in it.

On the 26th of May it was resolved, that the Commander in Chief should be instructed to grant furloughs, &c. And this resolution was communicated to me on the 27th. Thus, Sir, from the 9th day of April, when this matter was first proposed, until the 27th day of May, when the final determinations of Congress were made known, my conduct was of necessity suspended.

On the 29th of May I informed the Commander in Chief of my determination to issue notes payable in six months from the date, for three months pay, and explained to him the reasons why I could not make the payment in any other mode. In reply to this, I received on the 5th of June a letter from the General, dated the 3d, which was brought by express and urged the transmission of a part of those notes. I immediately wrote an answer, in which I informed him that on Saturday evening, the 31st of May, the paper arrived from the maker; that on Monday, the 2d of June, it was delivered to the printer; that he had agreed to send the first parcel of notes to me on Friday, the 6th of June; and that as soon as I could sign them they should be delivered to the Paymaster, to be sent forward. On the 7th of June the Paymaster received fifty thousand dollars, on the 9th fifty thousand dollars, and on the 13th one hundred thousand; so that in six days I signed six thousand notes, besides the other business of my office. That paper made on purpose for this business was necessary no man can doubt, or if it could have been doubted the recent attempt to counterfeit these notes is a sufficient proof. That the printing was to take place before the signing must be admitted. The only delay therefore with which I can be chargeable must be in the signing of them, and upon that subject I shall say nothing. If by any means a delay happened after the notes were delivered into the pay office, I presume that the Paymaster General will be able to account for it. I shall only add, that he has received half a million of these notes, as will appear by the enclosed note of the payments number two.

I am also directed, Sir, to report the manner in which I expect to redeem the notes in question. Congress will be pleased to recollect, that the issuing of those notes arose from a proposition made by the General and warmly adopted by them. That although I was very desirous of gratifying the wishes of the army, I had great apprehensions as to the ability of doing it. And that from a view of the scantiness of our resources I felt extreme reluctance in giving my consent. As to the means of redeeming the notes, permit me to refer Congress to the letters which I had the honor of writing to your Excellency on the 17th of March and 1st of May; to my correspondence with the honorable committee of Congress on the 14th and 16th of April, copies whereof are enclosed in the paper number three; and to a circular letter to the States of the 12th of May, of which a copy is enclosed in the paper number four.

Permit me also to refer to the various accounts which have been rendered to Congress of the state of my department; and to these let me add what appears on their own minutes. On the 2d of May they declared it to be their desire, when the reduction of the army should take place, to enable the officers and soldiers to return to their respective homes with convenience and satisfaction; _for which purpose it would be indispensable to advance them a part of their pay_. They declared further, that there were many other engagements for which the public faith was pledged, and _the punctual performance of which was essential to the credit of the United States_. And they further declared, that _neither of these important objects could be effected without the vigorous exertions of the several States in the collection of taxes_. From a conviction of these facts Congress were pleased to call upon the respective States in the most earnest manner, to forward the collection of taxes. As an additional means to accomplish the same end, they were pleased to apply for a further loan of three millions of livres to his Most Christian Majesty. And they resolved, that the Superintendent of Finance be directed to take the necessary arrangements for carrying the views of Congress into execution. And that he be assured of their firm support toward fulfilling the engagements he has already taken, or may take, on the public account during his continuance in office.

Having already so fully stated the situation of my department, I have only to say in answer to the order I have received, that I rely on the firm support of Congress, solemnly pledged to me (for the purpose of inducing my continuance in office) to redeem those notes issued to the army, as well as to fulfil all other engagements which I have taken or may take on the public account.

Before I close this letter, I beg leave to assign my reason for reducing my report to that form. It is because I had rather bear the censure contained in the acts of the 11th of July, however painful, than place on the minutes of Congress anything which may hold up the idea of precipitancy on their part.

With perfect respect, &c.

ROBERT MORRIS.

* * * * *

TO MR GRAND.

Office of Finance, July 25th, 1783.

Sir,