Chapter XVI: Part 16

A natural question will probably arise, as to the means of payment. This may be answered by applying a like question to the case of other public debts. But I conceived that another, if not a better answer may be given. If a new State were set off about Detroit, and the lands sold to all inclining to purchase, with permission to pay in certified Canadian debts, not only as specie, but even at a premium of five per cent, the lands would pay the debts, and the United States would gain more than the amount of the payment by the very act of making it. For an equal if not greater number of persons than the creditors in Canada, would become settlers from that country, and bring with them property beyond their purchase money. Nor is that all; such State would became a barrier of infinite importance. It would secure eternal peace with the Indians, and it would secure the Indian trade. For it would soon place the principal traders at that spot in the character of American citizens.

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

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, February 2d, 1784.

Sir,

I have delayed answering your Excellency's favor of the 4th of last month, in the hope that I might have been able to announce to you the having sent off the duplicate of the definitive treaty. Hitherto no opportunity has offered. But as Colonel Harmar has sailed, and probably Lieutenant Colonel Franks, I am not so anxious on that subject as I have been.

With sincere esteem, I am, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO.

Office of Finance, February 12th, 1784.

Gentlemen,

Previously to my letter of the 13th of January, I had received yours of the 10th of September and 18th of October. In one of my said letters I requested you to come under acceptance for Mr Ross's bills, although my public bill in his favor should not be accepted. But Mr Ross assures me that he has not yet drawn, and promises that he will not draw on the credit of that bill until my advices from Europe shall warrant it. So that my precaution in this respect was unnecessary. Neither is that bill to be protested if not paid when it falls due, but it is to be held by you for Mr Ross's future orders. Those advices which I have lately received, are far from being agreeable, and it is probable that my letters written to Dr Franklin in consequence of them may induce him to apply for your friendly aid to prolong the time of payment of some bills, which I had drawn on the credit of that loan, and which to my great surprise the negotiators of it were not in cash to answer. Should he make any such application, Gentlemen, I am to request that you will come in with your extensive credit, to support that of the United States; and you may rely that I will take care, by proper and speedy remittances, finally to absolve your engagements.

I have this day given to the house of Peter Whitesides & Co. my bill on you, (number ninetyseven) payable at ninety days' sight, and for three hundred thousand livres. I am to desire your acceptance of that bill, which I have drawn, to prevent, if possible, the protest of bills drawn by that House in consequence of one of my said bills on Amsterdam; to put you in cash for that sum, I have purchased already seven hundred hogsheads of tobacco, now lying ready for shipment at Alexandria in Virginia, and directed farther purchases, as also the chartering of vessels to carry it to Europe. I shall make you a shipment of from seven to eight hundred hogsheads as soon as the weather will permit, for at present all our navigation is shut up by the ice. This tobacco shall be shipped to your order at L'Orient, and I think, that with every allowance for delay, it must leave the Chesapeake by the 1st of April at farthest, and will arrive within two months after the bill shall have been presented. The sales of it will therefore put you in cash to answer the bill. But to render the matter as safe as possible, you shall have early advices, so as to make the insurance, which will answer the bill should the tobacco fail. After all, Gentlemen, it is possible that you may be in advance for a short time. But I make not the least doubt, that you will cheerfully go into the proposed operation, at present necessary to the United States, and which (that necessity out of the question) is in itself among the best kinds of commercial transactions. In order, also, to place you more perfectly at your ease, I agree to make good any expense, which may be incurred, by negotiations to prolong the payment, should it be inconvenient for you to make the actual advance, and should such advance become necessary by accidents of the sea or other unforeseen circumstances. But at all events my said bills must be honored.

With esteem and respect, &c.

ROBERT MORRIS.

* * * * *

TO MR GRAND.

Office of Finance, February 12th, 1784.

Sir,

The last letter which I have received from you is of the 12th of September, and in that you have left a blank for the amount of funds received from Amsterdam, and inform me, that you expect again to apply for more, as Mr Barclay could not tell what sum he should be able to pay you nor when. My letters from Messrs Wilhelm and Jan Willink, Nicolas and Jacob Van Staphorst, De la Lande and Finje, announce to me a sum remitted to you beyond the idea which I had formed of your wants; and the consequence of it is, that bills I had drawn on them remained unprovided for. Not having received letters from you in so long a time, it is impossible for me to guess at the exact state of your accounts; but if Mr Barclay has placed in your hands the sums which I expected he would have done, it appears to me that the United States must have been considerably in advance to you, at the very moment when my bills were in the critical situation above mentioned. I shall not, however, draw any conclusions on this subject before I receive those advices from you, which I am in the hourly expectation of. As I do not know whether any effectual measures have yet been taken to provide for the bills, which I had drawn, and which the Houses in Amsterdam were not in cash to answer, owing to a sudden failure of the loan intrusted to their management, I have written to Dr Franklin on that subject, and am now to request your aid in the business, so that time may be given for the arrival of those remittances, which I am making to provide for the consequences, should the loan continue unproductive. On this occasion I confidently rely on your efforts, and I persuade myself, that the credit of the United States, so long preserved in Europe, through doubtful and dangerous events, will not now be suffered to expire for the want of a very little timely aid and attention.

I am, Sir, &c.

ROBERT MORRIS.
* * * * *

TO MESSRS WILLINK & CO.

Office of Finance, February 12th, 1784.

Gentlemen,

On the evening of the 9th instant I received your letters of the 20th of November and 1st of December. The intelligence contained in these letters, so far as concerns the loan under your direction, and the bills which I had drawn upon the credit thereof, is very far from being agreeable.

The tenor of your last letter, renders it necessary for me to obviate the constructions put on my conduct in drawing to that extent. And this is easily done, for it appears by your letters now before me, that the total of those bills for a million, did not exceed the funds actually in your possession, by above six hundred thousand guilders, and if the second expedition of tobacco be deducted, that excess cannot be considered as going beyond five hundred thousand. Now, Gentlemen, I have already told you, that Mr Grand's drafts exceeded my expectation; but we will put this out of the question for the present, as I shall write on that subject to him; but you will observe, that your letters announcing the decline of the loan did not reach me until the close of the last year; and therefore I could not have calculated on so great an alteration. The occurrences in this country, which occasioned it have never appeared of any consequence to us who are on the spot, although, by exaggeration, they have staggered the minds of people in Europe. You will observe also, Gentlemen, that when my letter of the 1st of October was written, I had not received any letter from you of later date than the 11th of June. The intelligence mentioned in my letters as having come through an indirect channel, was contained in a letter from Mr Adams himself, and your letters written in the months of July and August confirmed that intelligence. All this will appear if you compare our correspondences, and place yourselves in the situation, which the long passage of your letters of the 4th, 11th and 26th of September placed me. The two first of these did not come to hand until a very few days ago, as you will observe that they are not acknowledged until the 9th instant. It has therefore been alike impossible for me to conjecture the hard fate of my bills, or to provide against it by seasonable remittances.

But as I have already mentioned, the sum total of the advance, which those bills could have occasioned would not exceed five hundred thousand guilders, payable in all the month of March, supposing that the loan should produce nothing in the whole winter. By a circuitous negotiation this payment might have been prolonged without difficulty, and you will see that the measures I am taking, even at this late period, would have produced the necessary funds in season. I have not indeed any right to expect, that you would risk so heavy a sum in reliance on me, but if you had done it I should have felt the obligation, and I think my conduct would have been such as to convince you that the confidence was not misplaced.

Under the present very disagreeable circumstances, and not knowing whether Dr Franklin has complied with your proposals, I cannot take such decisive steps as I otherwise might. I enclose, however, a copy of the letter which I have written to him, and I shall proceed to make remittances, as soon as the weather, which now shuts up our navigation, will permit. The advices which I shall receive from Europe, while ships are lading, and which I daily expect, must govern me in the consignments; which is the reason that I can say nothing positive on that subject.

If Dr Franklin has complied with your proposals, you will of course have accepted my bills to the extent of the million guilders. If he has not, it is possible that my letters to him may still arrive in season to prevent the protests for nonpayment. If however this should not be the case, I wish you to call on those who held the bills, and tender payment, on return of the bills, or on giving an indemnity against them; in which case you will also pay the costs of protest, interest which may have accrued, and the like. If they will not do this, you will then be pleased to transmit notarial certificates of your tender of such principal, interest and costs; and if your payments are accepted, to transmit immediate accounts thereof.

With respect to the three bills, numbered one hundred and ninetyone, one hundred and ninetytwo, and one hundred and ninetythree, dated the 21st of October, for two hundred and fifty thousand guilders each, I have agreed with the Houses to whom I sold them, that they shall still lay to be accepted or not, as may hereafter be determined, and in the meantime the United States are to pay the interest of their advances to me until they can reimburse themselves, or are repaid by me, whichever shall eventually happen. The bill number one hundred and ninetyfour, dated the 12th of December last, for one hundred thousand current guilders, I purchased and remitted on my own private account, and have given orders that it be not returned to this country; so that on that subject you may also be at ease. I shall receive on my private account the interest of the forty thousand dollars paid for this bill, on the same principles with which I have settled for the other bills just mentioned. And by the way, you will see how great was my confidence in the success of your operations, when I have involved my own private fortune in the purchase, not only of that bill, but also of four hundred thousand guilders out of the million. All which was done because the demand for exchange on London being greater than on your city, I bought those bills, remitted them, and drew on my private account to replace my funds, merely with a view to facilitate the public service. In addition to the bills just mentioned, there is one which I request may meet due honor; it is number one hundred and ninetyfive, dated the 2d instant, payable at six months' sight, and for fourteen thousand three hundred and nineteen current guilders. This bill was drawn to replace bills drawn above two years ago at six months' sight on the American Minister at Madrid and protested for certain circumstances attending the negotiation of them; wherefore I was under the necessity of replacing them with twenty per cent damages, by a bill of equal dignity.

I am, Gentlemen, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS WILLINK & CO.

Office of Finance, February 12th, 1784.

Gentlemen,

I am to acknowledge the receipt of your favor of the 14th of October. My letter to you and the other Houses, will convey sufficiently my sentiments as to the disagreeable consequences occasioned by the ill success of our loan. I shall not here dilate upon that subject, which, for the present, I can only lament; for I agree, Gentlemen, with you, that urgency on your part would rather damp the spirits of monied men than increase their exertions.

I see clearly, that if it were possible to convey an adequate idea of the wealth, extent, and power of this country, it would do a great deal towards exciting the favorable attention of mankind. But this is a very difficult thing, for the British Ministers, and even their Generals _in the country_, with all the pains they could take, and all the intelligence they could procure, were extremely ignorant of our resources. This is among the reasons why they pursued the conquest of America full three years after every sensible man in it saw that the thing was impossible.

However, as you desire an account of our products, I will refer you to a very unexceptionable testimony, that of the British Ministers themselves, in a pamphlet lately published under the eye of the Court, by Lord Sheffield; in which the writer attempts to prove that we must trade with them whether they treat us well or ill. To show this, he gives certain facts, which, at least, prove that the British are our worst customers, so far as the sale and consumption of our produce is concerned. He proves, also, that if they have any advantage over others, it is what your countrymen may have in an eminent degree over them; I mean the securing a great part of our trade by giving credit to our solid mercantile houses.

But to return from that digression to the principal object of this letter, viz. the actual and probable resources of America. Let it be remembered, that a century ago the place from which this letter was written was an unlimited forest; that the whole State of Pennsylvania did not produce enough to support five hundred men after the European manner, and that every other part of America was, a little earlier or a little later, in the same situation. But now this very city is worth more than all the public and private debts put together, which we owe to Europe.

M. Van Berckel has convinced me, Gentlemen, of your good will, and zealous endeavors to promote the interests of America. And I flatter myself that not only his representations, but my own conduct, will convince you of the just sense I entertain of those endeavors.

With esteem and respect, &c.

ROBERT MORRIS.

* * * * *

TO B. FRANKLIN.

Office of Finance, February 12th, 1784.

Dear Sir,

Three days ago I received, in a letter of the 1st of December from Messrs Wilhelm and Jan Willink, Nicolas and Jacob Van Staphorst, De La Lande and Finje at Amsterdam, a copy of their letter to you of the 30th of November. Enclosed you have a copy of my answer of this date. I flatter myself that you will not have suffered the public credit to be ruined for want of an engagement to the amount of so small a sum as might be necessary to avoid the danger to which it was exposed, and I wait in the anxious expectation of hearing from you, what arrangements have been taken on this subject, as I wish to conform my measures to them. If, contrary to my expectations, some unforeseen causes should have induced you to decline so necessary an engagement, I hope this letter may arrive in season, and induce you to do it.

You will observe that a copy of this letter is transmitted to the Houses in Amsterdam, but I have not sent a copy of the enclosed letters to Mr Grand and Mr Barclay, which are left open for your perusal. I have not time now to go particularly into the estimation of their accounts, but I am almost persuaded that there is, between them, and ought to be in the hands of the former before this time, about half a million of livres belonging to the United States. But in the present exigency, I shall not reckon on this sum, nor on the second expedition of five hundred hogsheads of tobacco, which are, I presume, before this hour arrived at Amsterdam. I shall calculate on a deficiency of five hundred thousand guilders, and prepare remittances as fast as proper articles can be purchased to that amount; because the surplus may be well disposed of to answer the interest of the Dutch loan, which falls due in June next.

If, therefore, you can adopt any measures by which, in circuitous negotiations, the time of payment can be prolonged, you may rely on the arrival of such remittances in the months of June and July at farthest, as shall fully answer the sums which may then fall due, and as I have told the gentlemen in Amsterdam, the advices which I may receive will govern the direction of those remittances. I shall give immediate orders for the purchase of one thousand hogsheads of tobacco, and as that amount is completed, I shall extend it according as circumstances may require.

The season has been so intemperate, that the navigation of the Chesapeake is to this hour shut up by the ice, but that cannot last much longer, and therefore I have good hopes that some capital shipments may depart before the 1st of April; and should the urgency of the case require it, I can draw at long sight on the consignees, and transmit the bills, which will enable a farther negotiation, if necessary. The means of making remittances are now, thank God, in my power; for the amount of taxes exceeds that of the expenditures, which last are reduced almost to nothing; and as the revival of commerce must increase the means of paying taxes, I have no other solicitude for the event than what arises from the want of time to make due arrangements. This want, I persuade myself you will remedy, if you have not already provided against it. And you may rely, that any engagements you may think it necessary to take, shall be most punctually complied with by me.

With unfeigned esteem and respect, I have the honor to be, yours,
&c.

ROBERT MORRIS.

_P. S._ Since writing the above, it occurs to me, that there is (particularly on the present occasion) a propriety in transmitting to you the best account in my power of the situation of things, as to the funding of our public debt. I say the best in _my power_, for I know not what is done southward of Virginia, no mail having come from thence in upwards of six weeks, by reason of the inclemency of the weather, which greatly impedes our intelligence from every quarter. New Hampshire, Massachusetts, New Jersey, Pennsylvania, Delaware, Maryland and Virginia, have adopted the plan recommended by Congress. I am assured that New York and Connecticut will adopt it very speedily, and I am told, on good authority, that Rhode Island will come in as soon as the example of the other States is communicated. It is in consequence of my conviction that the plan will soon be agreed to by all, that I have published an advertisement of the 9th instant, a copy whereof is enclosed.

R. M.

* * * * *

TO B. FRANKLIN.

Office of Finance, February 13th, 1784.

Dear Sir,

I have written to you, under yesterday's date, on a very interesting subject; and I will now add something farther, which I did not choose to place in that letter, as a copy of it is transmitted to the Houses in Holland. And, first, I will give you an account of my situation, as accurately as possible, in order that (seeing the whole state of my engagements, and the means of fulfilling them) you may rest at ease under the operation I have requested, and which I must now most strongly urge and entreat you to engage in.

My present actual engagements are threefold, viz., first, general engagements for the public service not yet satisfied, including therein the notes issued by me, which remain in circulation; secondly, my bills of exchange unpaid; and, thirdly, my debts to the national bank.

The first of these it is difficult to ascertain with exactness, for I take into the account all payments to be made for past services and the like, and I set against it sundry sums to be received, and the public goods which are yet to arrive. It cannot be expected, therefore, that any great precision will take place in this estimate, but from the clearest insight I have, the amount is rather under than over one hundred thousand dollars.

The second stands thus. I drew for a million of guildders, of which, calculating the extent, not more than one half remains unprovided for, as I have observed in my letter of yesterday. This half may be considered as of the value of two hundred thousand dollars. Besides this sum, I have drawn three bills of two hundred and fifty thousand guilders each, and one of one hundred thousand guilders, for which I have received three hundred and forty thousand dollars; but as I have agreed that those bills shall not be protested, they are not to be carried to the account of bills of exchange.

My debt to the national bank is the above sum of three hundred and forty thousand dollars, obtained from them by discounting notes received for the bills of exchange, and which notes they will continue on interest, until taken up by my payments here, or by my moneys raised on the drafts of the parties who gave them, should my bills be eventually paid in Europe.

In this calculation you will perceive, that I make no mention of any moneys which I suppose to be in the hands of Mr Grand, because, for the greater certainty, I will on the present occasion consider them as equal to answer for contingencies only. And on the other hand, I will not calculate the interest to arise on moneys borrowed in Europe, because although that object may be stated as of the value of from one hundred and fifty to two hundred thousand dollars, yet to answer it, I place first, the general system of funding the public debts, and secondly, whatever small sums may arise on the Dutch loan, supposing it to have no success worth counting on for other purposes.

Hence, therefore, we will state the account as of the first of the present month thus,

Balance due for past services, $100,000
Due for bills of exchange drawn, 200,000
Due to the national bank, 340,000
--------
640,000
Add for contingencies, 10,000
--------
$650,000

We come now to the means of making payment; after rejecting all hope of any material aid from the Dutch loan. And they are as follows. The taxes for the last four months, ending the 31st of January, amounted to somewhat more than two hundred thousand dollars. Towards these taxes, the States of Delaware, North Carolina and Georgia, have as yet paid nothing. Neither is there anything paid by the State of South Carolina within the account of those months. The States of New Hampshire, Connecticut, New York, Maryland and Virginia have paid very little, in proportion, to their present ability, and the other four States will all, by the extension of peace and commerce, be in better circumstances for revenue than they were before.

From the States of New York, Maryland, Virginia and South Carolina, I expect to derive very considerable relief; particularly from the first, by a proposed sale of confiscated lands. However, I shall (after deducting from the probable increase of the revenue so much as may pay the current expenditures) calculate the surplus and the proposed sales of lands, as amounting to no more than two hundred and fifty thousand dollars, by the end of next September. This then will place the sum unprovided for at the amount of four hundred thousand dollars, and the fund to pay it at fifty thousand dollars per month. That fund will discharge the first article above mentioned, by the end of March; and the next thing to be provided for, is the two hundred, to answer bills of exchange drawn.

The intended provision for that object is as follows; I shall borrow immediately one hundred thousand dollars of the bank, and direct purchases of tobacco and rice, partly with cash, partly on credit, and partly by bills drawn on me. By this means, I can with that one hundred thousand dollars have the purchases made in all March and April, so that the shipments to the required amount of two hundred thousand dollars will take place, some in March, some in April, and all of them I hope by the end of May. The taxes during April and May, will pay the purchases on credit, and the bills drawn on me; and the taxes in June and July will pay the hundred thousand dollars due to the bank. By the end of September, therefore, I may calculate on a full discharge of all these debts.

If the loan should meet with success, my relief will be more speedy; but you will see, Sir, from this detail, what is most important to you, viz; that the funds will be placed in Europe during the months of June and July, to pay the half million of guilders, which I desire you to provide for. I suppose the mode of circuitous negotiations to be very familiar with your bankers, but I would hint at the following as practicable. Suppose the Houses in Amsterdam to draw in the month of March on Mr Grand, at sixty days' sight; Mr Grand might in May draw, on a good House in London for his full reimbursement, and the House in London might, in like manner, reimburse on Messrs Le Couteulx & Co. by which time the remittances would arrive. Or the time might be still farther extended, if the House in London should reimburse on Messrs Wilhelm and Jan Willink, and they on Messrs Le Couteulx. Or the last bills might perhaps be drawn on Mr Grand instead of Messrs Le Couteulx. However, supposing that the credit of those gentlemen might be useful, I have requested them to aid your operations, should you think proper to ask their aid.

And now, my Dear Sir, let me before I close this letter, entreat of you most earnestly, that the public credit just beginning to revive be not totally lost for a want of an effort, which is but nothing in comparison with what we have already experienced, and passed through with success.

With very sincere esteem, yours, &c.

ROBERT MORRIS.

* * * * *

TO THOMAS JEFFERSON.
Office of Finance, February 25th, 1784.

Sir,

Your letter of the first instant reached me but a few days since, and I seize the earliest moment in my power of replying to it. I shall reply also in this letter to that with which I was favored from Mr Williamson, and pray both him and the committee that they will excuse it; assuring them that it proceeds from a desire of collecting all I have to say on the subject under one point of view.

It was and is my opinion, and has frequently been expressed, that the calls of Congress should be confined to the arrears of former requisitions, so long as it can be possible out of such means to defray the current expenditures. And although it has been necessary to comprise a part of the expenditures of 1782 and 1783 within that debt, for the interest whereof permanent funds have been required, I thought it my duty to oppose any relinquishment of the existing requisitions. I will not repeat the reasons, because the grand committee appear to be of the same opinion. It was evident, that if those requisitions should produce more than the current expenditure, the surplus would easily be applied towards discharging a part of the debt, which arose during the years 1782 and 1783.

Enclosed, Sir, you will find the required amount of taxes received to the end of last year. But since that period, there have been farther receipts, and I must observe, that among these are some small sums collected in New Jersey and Pennsylvania on the requisitions for 1783. But these are nevertheless carried, in the treasury books, to account of the unsatisfied requisitions of 1782.

Confining myself to round numbers, because I presume the committee would rather receive information materially right in season, than wait for greater accuracy at the expense of moments, every one of which must be precious, I take leave to mention, that the arrearages on the requisitions of 1782 and 1783 exceed eight millions, and that one of those eight millions would pay the unfunded expenditures from the end of 1781 to the commencement of the current year; by which term of _unfunded expenditures_ used for want of a better, I mean such part of the public debt as arose in that year, and which not having been carried to the account of the public debt, but remaining due on my official engagements and anticipations, must still be provided for out of the requisitions. There will remain, therefore, at least seven millions for the service of this year, and payment of a part of the former debt, should the collections be so rapid as to pay off the required million beyond the immediate expenses, which I confess there is but little reason to expect. It will, however, be useful, that pressing application be made to the States, to complete their quotas, under those requisitions; for if only one hundred thousand dollars were employed in payment of our funded debt, before January next, in addition to the provision for paying the interest, we might then consider the independence of our country as firmly established. I shall dwell no longer on this subject, which will, I am sure, be better matured by the committee, than by any of my reflections. But I am bound to mention, Sir, that, from the slowness and smallness of the collections, our finances are in a more critical situation than you can easily conceive; such that I dare not leave this place, although I am very desirous of paying my respects to Congress at Annapolis.

As to the vote of September, 1782, requiring one million two hundred thousand dollars for payment of interest on Loan Office certificates, &c. I have no official information of what has been done by the States; some among them have, I believe, directed the issue of certain other kind of certificates for payment of that interest; but as the acts do not conform to the resolution of Congress, I cannot know what conduct the Loan officers have pursued. It is much to be lamented, that the States individually are not sensible how necessary it is to conform to general regulations; on every occasion, some local convenience is consulted, and a deviation made, which appears to be of little consequence to the general system, and which is nevertheless important, and becomes injurious to the very State by which it was made. The idea of an officer dependent only on Congress, amenable only to them, and consequently obedient only to orders derived from their authority, is disagreeable to each State, and carries with it the air of restraint. Every such officer, therefore, finds the weight of public opinion to contend with. But how in a continent so extensive, can that simplicity of administration, which is essential to order and economy, be introduced, unless such officers are not only tolerated, but aided by the legislative and executive authorities? I will pursue these ideas no further for the present, because I think the opportunity will arrive in which the subject must be considered with more attention.

Enclosed, Sir, I have the honor to transmit an account of the civil establishment of the United States, together with an account of contingent expenses of the several offices. Neither of these is as complete as could be wished, though as perfect as they can at present be made. You will doubtless observe, that all the offices are not completely filled, and that all the contingent expenses are not brought into the account. Among the latter omissions is the contingent expense of our foreign ministers, which will, I am persuaded, be far from inconsiderable. I have thought it proper, also, to transmit to the committee an estimate of the sum at which our civil establishment might be fixed; and on this estimate I make the following general observations. 1st. That the articles of contingencies therein mentioned, are carried out on conjecture, and therefore the sum total may be somewhat more or less, according to circumstances. 2dly. That the numbers, titles, and salaries of the several officers being entirely in the disposition of Congress, they will add to or diminish from them as they may think proper, wherefore the totals will doubtless be different from what I have stated; and 3dly, that a very considerable part of this expense being occasioned by the old accounts, will cease of itself when those accounts are settled.

I proceed then to observe more particularly on the expenses of the President's household. 1st. That the present mode is certainly objectionable, as I have frequently had occasion to observe, and which I now repeat with the more freedom, as nothing which can be said will bear the least personal application. My reasons are, 1st. No person not accountable to the United States should be invested with the right of drawing at will on the public treasury. 2dly. Every expenditure ought, as far as the reason and nature of things will permit, to be ascertained with precision. 3dly. A fixed salary being annexed to the office of President of Congress, he will be more effectually master of his own household, and in consequence a greater order and economy may reasonably be expected.

On the expenses of the office of Secretary of Congress, I shall say nothing. The expenses, the duties, and the cares are so immediately under the eye of Congress themselves, that it would be presumption. But I would observe, that to the account of the contingencies of this office, ought to be carried the expense not only of office rent, stationary, &c. but also fuel for Congress, printing of the journals, expresses sent by Congress, and the like.

The chaplains of Congress receive, at present, at the rate of four hundred dollars each. If the office be necessary, it ought to be so supported as that the officers may be entirely attached to Congress, and accompany them in their changes, or fix at their permanent place of residence; whichever of these modes shall eventually be adopted, I have ventured to state their salaries at one thousand dollars each; perhaps I am still under the proper sum.

On the expense of the court of appeals I can say nothing, because I know not whether the continuance of it be necessary. But I should suppose, that if three gentlemen, well versed in the law of nations, were, from the tenure of their offices to be always with Congress (so as to be consulted and employed when the public service might require it) such an establishment would be continued, if the expense did not exceed the utility.

When all our accounts shall be settled, our debts either paid or properly funded, and things reduced to a peace establishment, the expenses of the Office of Finance may perhaps be reduced about two thousand dollars, by taking away the salaries of the assistant and one clerk, and adding somewhat to that of the secretary; under the present circumstances I do not think the number of the officers can be lessened. The salary of the Superintendent has often been mentioned as very high. This is a subject on which I can speak with great plainness, and but for the disagreeable situation of things above mentioned, I should speak also without any personal reference. I humbly conceive, that the object of Congress is what it certainly ought to be, an enlightened economy. On the powers of the office I will say nothing here, because it would be misplaced. The expenses of it are and ought to be great. Until we can create new beings we must take mankind as they are; and not only so, but we must take them as they are in our own country. Now it is evident, that a certain degree of splendor is necessary to those who are clothed with the higher offices of the United States. I will venture to say, that without it, those officers do not perform one of the duties, which they owe to their masters; and I can say, also, from experience that a salary of six thousand dollars does not exceed the expense of that officer. I speak for my successor, or rather for my country. Neither the powers nor emoluments of the office have sufficient charms to keep me in it one hour after I can quit it, and I did hope that period would have arrived during the next month. Perhaps it may. If a man of fortune chooses to run the career of vanity or ambition, he will naturally wish the salaries of office to be low, because it must reduce the number of honest competitors. I say honest competitors, because those who would make a property of public trusts will always be indifferent as to the amount of salary, seeing that with such men it forms the smallest pecuniary consideration. When a liberal salary enables a man, not rich, to live in a style of splendor without impairing his private fortune, the show he makes and the respect attached to him really belong to the country he serves, and are among the necessary trappings of her dignity. Now it has always appeared to me that true economy consists in putting proper men in proper places; to which purpose proper salaries are a previous requisite. Here I shall pause, because the reflection occurs to my mind, that perhaps this, with many other propositions equally true, will never be duly felt until an opposite conduct shall lead to disagreeable conviction. If indeed it were my object to enforce this point, I should go no further than the past experience of Congress, and perhaps there might be room for some argument on the actual state of the Office of Foreign Affairs. The expenses of that office, as well as of the War Office, require only a reference to what has been just mentioned. The expenses of the Treasury Office cannot be curtailed, for before the present business can be lessened, that of our debt must come forward, and there must be some persons to manage it, although the great machinery at present employed will be unnecessary.

For reasons of evident propriety, I say nothing on the establishment of our foreign servants, only recommending, that as little as possible be left to the article of contingencies. Because, if, on the one hand, it be just to compensate extraordinary and unexpected expenses for the public service, it is proper, on the other hand, to reduce within the closest limits of certainty, which the nature of things can permit, the amount of those burdens which the people must bear. And it ought to be remembered, that contingencies are generally speaking a kind of expenses, which though justified by necessity are unprovided for by express appropriation, and which therefore ought as much as possible to be avoided.

The last article is, expenses on collection of the revenue; and it is much to be lamented, that this is so heavy; not indeed the sum proposed in the estimate, which is trifling, but it will be found on examination, that the expense of collecting taxes in this country is greater than in almost any other; a serious misfortune, and which would certainly be provided against if the officers of the collection were nominated by authority of the United States; because then those principles of suspicion, which have already done so much and spoken so loudly, would soon fix upon a grievance, at present overlooked, because it forms part of the system favorable to withholding instead of collecting taxes. It has already been observed, that officers of the nature of receivers are necessary in the several States; it is here repeated, and experience will prove it. At the same time the committee will please to take notice, that the Loan officers are not included in the estimate; the reason of which is, that they can answer no purpose but the expense of the appointment, and the complicating of a system which ought to be simplified. An officer whose duty it is to urge collections, may do good if he performs that duty, but when it is a question of paying, means may be adopted, which will be more effectual, less expensive, and infinitely less liable to fraud. Not to mention that these means may be such as to avoid long and intricate accounts. In fact (and I hope, Sir, you will excuse the observation) there seems to have existed a solicitude how to spend money conveniently and easily, but little care how to obtain it speedily and effectually. The sums I have proposed as fixed salaries for these officers, may at first sight appear large, but if the office is to be at all useful it must be in the hands of a good man who can devote to it his whole time and attention, and who will neither by his private distresses nor by the scantiness of his stipend, be prompted to betray his trust, or abuse the confidence reposed in him.

Before I close this letter, I will take the liberty further to mention to the committee, as a principal means of avoiding many disagreeable discussions relative to the present object, that the establishment of a mint, and due regulations of the post office, would soon supply the funds necessary to defray the expenses of our civil establishment. The former of these is entirely in the power of Congress, and I should suppose, that the States could have no reasonable objection to leave the revenue, which might arise from the second to the disposition of Congress for that purpose.

I pray you to excuse me, Sir, for troubling you with so long a letter, which I will not add to by making an apology; but assure you of the respect, with which I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

PROPOSED EXPENSES OF THE CIVIL LIST.

_President of Congress_, his household, $10,000
His private Secretary, 500
-------
$10,500
_Secretary of Congress_, 3,000
Two Clerks, 1,000
Messenger, 300
------ 4,300
Contingencies; fuel, stationary, rent. &c. 750
----- 5,050
_Chaplains of Congress_, 2,000
_Three Judges of Appeals_, at 2250 dollars each, 6,750
Contingencies during their sittings, 150
----- 6,900
------
24,450

_Superintendent of Finance_, $6,000
Assistant, 1,850
Secretary, 1,000
Clerks, three, 1,500
Messenger, 300
------ $10,650
Contingencies, 750
------- 11,400
_Minister of War_, 6,000
Two Clerks, 1,000
Messenger, 300
------ 7,300
Contingencies, 500
------- 7,800
_Minister of Foreign Affairs_, 6,000
Two Secretaries, 2,000
Messenger, 300
------ 8,300
Contingencies, 500
------- 8,800
_Controller of the Treasury_, 1,850
Auditor, 1,000
Six Clerks, 3,000
------ 5,850
Register, 1,200
Four Clerks, 2,000
------ 3,200
Treasurer, 1,500
Clerk, 500
------ 2,000
Messenger, 300
-------
11,350
Contingencies, 1,000
------- 12,350
------
64,800
_Two Foreign Ministers, at $10,000 each_, 20,000
_Five Residents, with Consular Powers, at 6,000_, 30,000
Contingencies, 10,000
------ 60,000
--------
Permanent expense, 124,800.

_Temporary Expense._

A Commissioner of accounts here, salary 1,500

A Commissioner for settling old accounts in
Europe, his clerks, contingent expenses,
&c. suppose $10,000
Two Clerks, 1,000
Contingencies, 250
------
2,750
Multiply by 18
------ 49,500
------- 59,500
---------
$184,300.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, March 17th, 1784.

Sir,

Permit me, through your Excellency, to call the attention of the United States to the situation of my department. During the last year, engagements were made to a very considerable amount for payment of the army. This payment was effected by notes which fell due the end of last year, and the commencement of this. The funds at my disposal were unequal to the discharge of them. I was, therefore, under the necessity of drawing bills on the credit of the loan in Holland. The information I had received from the gentlemen who had the management of it, gave me hopes that funds sufficient to discharge those bills were in their hands; for in the months of April, May, June and July, they had received and distributed obligations for one million one hundred and thirtysix thousand florins. But from causes, which will readily suggest themselves to Congress, that loan, which had taken a rapid start at the peace, began to decline in August and stood still during all November. It has happened, therefore, that bills to the amount of one million three hundred and twentyfive thousand florins, equal at the current exchange to five hundred and thirty thousand dollars, are protested for non-acceptance. Should they come back protested for non-payment, the consequences will be easily imagined.

For about a month past I have been in the expectation, that this disagreeable event would happen, and whether it will or not is yet undetermined. My last advices from the gentlemen who have the management of the loan are in a letter of the 22d of December; by which they tell me, "we are sorry to be obliged to repeat, that since our last till the present moment, our prospects are not very much increased; however, we are not quite without hopes, and have determined, if we cannot do otherwise, to sacrifice some more premium to the undertakers, which if we do, we will charge to the account of the United States. We think ourselves fully authorised to do this by the circumstances; since without the bills going back, it is certain that, besides the disappointment and the discredit it would give to the government bills, the expenses attending the returns will be much more burdensome. We have almost no prospect of getting the money without such a sacrifice, and only hope it will answer your views." Enclosed you have the account current with those gentlemen, as sketched out by the register for information; by which it appears, that they had in their hands a balance of three hundred and fortyseven thousand seven hundred and seventy current guilders on the 31st of October last, and by the subordinate account, number five, it will appear, that my bills exceed that balance by one million five hundred and thirteen thousand two hundred and twentynine florins; but from this a deduction is to be made for some tobacco shipped to them, the account of sales whereof is not yet come to hand. They have, however, accepted of my bills beyond the amount of their funds, and still there are to the value of one million three hundred and twentyfive thousand florins protested for non-acceptance. In order, however, that Congress may possess as full a view of things as possible, I will suppose, for the present, that by making a sacrifice of premium the funds for discharging these bills may be obtained. I must also mention here, to obviate what might be suggested, that the remittances to Messrs Le Couteulx and Mr Grand will be found accounted for in their accounts, but time will not permit going into all those details at present.

Supposing then the funds to be obtained for payment
of these bills, the interest falling due the beginning of
June next, will amount to two hundred thousand florins,
equal at the current exchange to $80,000

By the enclosed state of payments
just received from Mr Grand it will
appear, that on the 5th of November,
there is payable at his House
the sum of one million six hundred
thousand livres, equal at the current
exchange to 320,000
--------
$400,000

Thus you will find, that on the best supposition which can be made, there is to be paid in Europe during this year four hundred thousand dollars, over and above the salaries of foreign Ministers and their contingent expenses. There is also to be paid the further sum of one hundred thousand dollars, due in this country on engagements taken for the public service during the last and present year, besides notes in circulation, which may probably be absorbed by the taxes, between this and the 1st of May next. Thus there is a deficiency of half a million to be provided for by the taxes from the 1st of May, to which must be added sundry debts of the last year not yet adjusted, and which cannot therefore be estimated, but which may amount to between one and two hundred thousand dollars more. And to all this must be added the current expenses, which Congress will best be able to ascertain.

This, Sir, is a view of things upon the fairest side, but if the bills noted for non-acceptance come back, a scene will then be opened, which it is better for you to conceive than for me to describe. The delay of the States in passing the laws for granting revenue to fund our debts has left the above mentioned sum of four hundred thousand dollars totally unprovided for; and I cannot see the least probability that this general concurrence will be obtained in season to make that provision. I beg leave, therefore, to suggest the expedient that the produce of the requisitions for 1782 and 1783 be partly appropriated to that payment, and that the money be replaced from the proper funds when obtained. But whatever mode may be adopted, Congress will doubtless be struck with this truth, that unless the States can be stimulated into exertion, and that speedily, everything must fall into confusion. I will not pretend to anticipate the evil consequences. Having stated the facts I have done my duty.

I must, however, pray a moment's indulgence to mention, that the accounts of the last year would have been rendered by this time, but as I have not relinquished the hope of being able to quit this office soon, I have rather desired to be able to complete all the accounts of my administration. It will give me infinite pleasure, if, when I have the honor of presenting to Congress these accounts with my commission, I shall find them in circumstances as prosperous as those under which I accepted it were adverse.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO JACOB READ, MEMBER OF A COMMITTEE OF CONGRESS.

Office of Finance, March 30th, 1784.

Sir,

I am to acknowledge the receipt of your favor of the 14th instant; which should have been done sooner, but that I have been much engaged, and indeed the accounts you ask for, and which are enclosed, required time to be completed. I shall expect the papers which relate to Mr Gillon by the first good opportunity.