Chapter VI: Part 6

I have observed by the tenor of several of your letters on the subject of the confederation, that your sentiments coincide entirely with my own. The inefficacy of that instrument is daily felt, and the want of obligatory and coercive clauses on the States will probably be productive of the most fatal consequences. At present they content themselves with the assertion, that each has done most, and that the people are not able to pay taxes. Languor and inexertion are the offspring of this doctrine, and finally the people, who are said to be incapable of bearing taxation, actually pay double the sum, that would be necessary in the first instance. Nothing on my part has been omitted that I could think of, to stimulate them to exertions; and I have given them every encouragement to support my arrangements, that could be derived from regularity, system and economy; but all this does not produce the effect it ought; there are in every Legislature, characters too full of local attachments and views, to permit sufficient attention to the general interest. I am perfectly sensible, and was the day I became Superintendent of Finance, of the difficulties that are to be encountered. I know full well that it requires much time, more patience, and greater abilities than I claim, to bring the finances to the order in which they ought to be in every well governed country. But I apprehend this knowledge ought not to deter either you or me from continuing the struggle with those difficulties. If I had been deterred by their appearance from the acceptance of my appointment, our affairs would probably have been worse than they now are, or if you had declined to oppose the British arms in the Southern States, Virginia might now have formed the boundary line.

You, therefore, my Dear Sir, must continue your exertions, with or without men, provisions, clothing, or pay, in hopes that all things will come right at last; and I will continue mine until somebody more competent shall be found to relieve me. The Secretary at War will say everything that is necessary with respect to men, clothing, short enlistments, and future operations.

With respect to the pay of the army, we have abolished the practice of partial payments. The officers with you will be furnished monthly with their subsistence money, and let their distance be what it may, they shall have the same payments with those that are nearer; for I never will consent to partial payments so long as it depends on me. How much pay I shall be able to make, depends absolutely on the collection of taxes in the several States. If they comply tolerably well with the requisition of Congress for the year 1782, I will make tolerably good pay to the army for that year, but if the States will not furnish the means, it is impossible. The discontents of the army should in justice be directed to the Legislatures of those States, which neglect or delay to pay their quotas of the continental tax, and it shall be clearly known in future which they are.

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO THE GOVERNOR OF VIRGINIA.

Office of Finance, April 27th, 1782.

Sir,

In a letter from the Minister Plenipotentiary of France, of the 22d instant, is the following paragraph.

"His Majesty having consented to furnish the State of Virginia with arms, clothing, and munitions, for a sum, with the amount of which I am unacquainted, the Minister desires that Virginia would render an account of the same to the United States, and that you would close the business, and the amount which has been advanced by France to Virginia, shall be deducted from the sums loaned to the United States."

My answer of this date is as follows.

"With respect to the supplies for the State of Virginia, I have already had the honor of mentioning to your Excellency, that I could by no means consider purchases made for any particular State in the Union, as properly chargeable to the United States. This was in a letter of the 26th of November last, in consequence of your application relating both to Maryland and Virginia. If Dr Franklin has asked the supplies on the credit of the United States, they will, of course be brought to their account. But I cannot conceive, that this has been done by him, as I do not know of any orders to do so from the Congress. Your Excellency will, I am confident, see with me the impropriety of listening to the applications made by separate States, and be convinced how much it is the duty of those to whom the administration is committed, to oppose these appearances of disunion in our councils; appearances, which, however unfounded, are not the less injurious. The State of Virginia, is, as you well know, far from being singular in her applications abroad for separate aid, and your Excellency is better informed than almost any other, of the evils which have resulted from them. I do not mention this with a view to blame those who made, or those who granted the requests, alluded to. On the contrary, it gives me pleasure to find, that in some instances among so many, a fruitless recourse has not been had to the purses of individuals. As there is a hope that these irregularities may no longer take place, I will not absolutely decide, and must pray that this question be for the present left open; as I am extremely desirous not to injure the operations or credit of any particular State, while I pursue the road marked out by public duties. I shall transmit to the government of Virginia that part of our letter, which relates to this object."

I presume that it will be unnecessary to remark to your Excellency, how incapable the United States are of assuming burdens of debt, while so little attention is paid to put the public treasury in a situation to defray the necessary expenses of the current service. I must pray to be furnished with an exact account, as soon as may be, of the sum due by the State of Virginia to the Court of France, and of the funds which the State propose to apply in discharge of it; in order that I may, if possible, take such measures as may preserve her credit, and not be injurious to the United States. It becomes my duty, Sir, on this occasion, to mention further the sum of sixtysix thousand eight hundred and fiftythree livres, which were expended by Mr Lee in the purchase of supplies for your State; which were acknowledged by a certificate of the 13th of March, 1780, with a promise to account.

Your letter of the 28th of March last has been received some time ago.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE SECRETARY OF FOREIGN AFFAIRS.

Office of Finance, April 27th, 1782.

Sir,

His Excellency the Minister of France having informed me on the part of his Court, that no extraordinary sums will be paid to the Ministers of the United States in Europe, I must request that you will furnish me with an account of the several salaries payable to the foreign Ministers and their Secretaries; and I will make out bills in your favor on the Banker of the United States in Paris, for the last quarter, commencing with the present year. I must, at the same time, pray you will require of those gentlemen, the state of their several accounts with the public for salaries, that the whole may be adjusted, and all future expenses of that sort be classed under the proper head of the Department of Foreign Affairs.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE GOVERNOR OF MARYLAND.

Office of Finance, April 30th 1782.

Sir,

I had the honor to receive your Excellency's letter, dated In Council, Annapolis, April, 1782, previous to which I had in mine of the 15th instant, transmitted the Acts of Congress, which you mention. I hope they will meet the wishes of your Excellency and of the State, so that a speedy compliance with them may forward the great business they are formed to accomplish.

I am much obliged by your Excellency's observation, as to the propriety of stating how much money is to be expended. The estimates of the current year were formed by Congress; the accuracy of them I cannot answer for, but rather incline to think they will fall short of the object proposed. The loose manner in which business has formerly been conducted, did indeed render it impracticable to frame very precise estimates. That those adopted are not exorbitant, will easily be seen, by comparing the sum total with the expenditure of former years. It is my intention to show by the exhibition of clear accounts, how the public money intrusted to me has been expended. This shall be done publicly, and then estimates formed agreeably so such accounts will be clearly understood, and convey that satisfaction to the mind of every candid man, which I am desirous of imparting.

Your Excellency will easily perceive, that the primary step must be to grant money, and the accounting for it a secondary one. I presume that by the American Constitution, the determination on sums to be appropriated must be vested in the supreme representative, and I hope there is so much confidence in the wisdom and integrity of that body, as to believe that they do not ask for sums which are unnecessary.

Before I close this letter I will pray leave to repeat to your Excellency a sentiment often expressed before, that I despise every scheme or system, which must depend for its success on mystery or concealment, and am convinced that our credit will never be fully established, until all our public affairs are open to the public eye. I ardently long for the arrival of that moment, when I may lay a state of them before the world, in an account of the moneys received and the moneys expended, with the debts we owe, and the produce of the funds assigned for the payment of them. Your Excellency is not a stranger to many of the reasons why such an account cannot now be framed, and will, I doubt not, sincerely co-operate with me in removing them.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO JOHN WENDELL.

Office of Finance, May 1st, 1782.

Sir,

I have been duly honored with yours of the 7th and 15th of April. From what you propose with respect to the establishment of a bank in New Hampshire, as well as from the ideas which you say are entertained of the increase of my private fortune, I am convinced that you and other gentlemen are alike mistaken as to the nature of the National Bank, and my official connexions and transactions. The confidence you have been pleased to repose in me, and your communication of sentiment as to public affairs, require of me, that I I should give such explanation of both, as the multiplicity of objects, which engross my attention will permit.

The bank is a mere thing, in which any man may be interested, who chooses to purchase stock. Personally I have no other concern in it, than any other gentleman may have, who pleases to invest his property in it. The government have nothing to do with the bank, except merely to prevent the Directors, should they be so inclined, from extending their operations in a manner disproportionate to their capital, thereby endangering their credit. Any aid which the government derives from the bank is by lodging proper securities with it, and borrowing money for short periods on the discount of interest at the rate of six per cent, which is receiving ninetynine and paying a hundred at the end of two months. The moneys so borrowed are punctually repaid.

By accepting the office I now hold I was obliged to neglect my own private affairs. I have made no speculation in consequence of my office, and instead of being enriched I am poorer this day, than I was a year ago.

You will, from what I have said, see two sufficient reasons against adopting the plan you have proposed. That I have not money, and that I have totally quitted commerce and commercial projects, to attach myself wholly to a business which requires my whole attention. A principal object of my last letter was to acquaint you with this circumstance, and by what I have there said I meant to acquaint you also with the manner of doing business at the bank. If, for instance, you draw a bill in favor of your factor here on a merchant of reputation, payable at sixty days' sight, and that merchant accepts the bill, your factor can get ninety dollars for every hundred of the bill by discounting it at the bank, and with that money can purchase the articles you direct; but you must then be careful to make due remittances to the merchant on whom you draw. If by connecting yourself in this manner with any gentleman in trade here you can derive any benefit, it will afford me a very sensible pleasure, but as to myself, I must again repeat, that I have quitted trade; and I will add, that the closing my past dealings, which is now the only private object of my attention, requires time, which I cannot spare for the purpose; and of consequence it is, with everything else of a private nature, very much neglected, to my very great disadvantage.

I am, &c.

ROBERT MORRIS.

* * * * *

REPORT TO CONGRESS ON A MEMORIAL OF THE MERCHANTS OF PHILADELPHIA.

Office of Finance, May 4th, 1782.

The Superintendent of the Finance of the United States, to whom was referred the report of a committee on a memorial of the merchants of Philadelphia, and motion thereon, begs leave to report,

That the navy of the United States is not in a situation to afford protection to their commerce, nor can it be rendered equal to that object for some considerable time, even if the necessary funds could be procured. That there remains no mode of obtaining such protection, unless from the allies of the United States, or the powers engaged with them in war against Great Britain.

That the commerce of these States is of such importance, that it is not improbable the Court of France would afford permanent protection if in their power; and that in the interim some relief may, perhaps, be obtained from the fleets in the West Indies.

The following resolution therefore is submitted; That the Superintendent of Finance prepare a statement of the commerce of the United States, together with a plan for the protection thereof.

That the Secretary of Foreign Affairs communicate the same to the Minister of his Most Christian Majesty, and cause application to be thereupon made by the Minister of these States to the Court of Versailles; and that the Superintendent, as Agent of Marine, make application on the same subject to the Commanders of the fleets of France and Spain in the West Indies.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 8th, 1782.

Sir,

His Excellency, the Minister of France, in a late letter to me has officially declared, that in future no sums will be paid to the Ministers of the United States in Europe by his Court. It becomes necessary, therefore, to make provision for their support here. I immediately applied to the Minister of Foreign Affairs for an account of the annual salaries payable to his Department. I have received it this day, and do myself the honor to enclose a copy. I must take the liberty to observe, that the sum is very large, and such as cannot be advanced without greatly retrenching from essential services, at least in the present moment. It will, I humbly conceive, be necessary that arrangements should be taken, so that in future all such salaries as are payable to foreign Ministers be advanced in America, and negotiated by their respective Agents. This will be honorable to the United States, and I should suppose more agreeable to the gentlemen concerned.

The Minister of France has also observed, that the accounts between his Most Christian Majesty and the United States having become very important, by the greatness of the sums advanced and lent, it is indispensable that measures be taken to adjust them, and to avoid that confusion, which would be introduced by a longer delay. And in consequence, he has desired that Congress would transmit to Dr Franklin full power finally to settle those accounts, and in the name of the United States to execute the proper obligations for securing the debt and fixing the periods of payment. To this he adds, that it is not expected Congress can do anything towards payment during the war, but that they will fix the several epochas at which they shall be made.

To a proposition so reasonable, there will, I presume, be no objection. The solidity of the observation on which it is founded cannot be called in question, and I am induced by it to extend the remark a little further. The great sums which remain unsettled and undetermined between the French Court and the United States are alike unsettled between the latter and their public servants. How the accounts may stand I know not, but it is my particular duty to observe, that there appears to have been but little received for the great sums, which have been expended, and therefore it is highly necessary, that the public accounts of these States with their servants in Europe be also settled. It shall be my study in future to prevent the existence of such accounts, but their magnitude as well as other circumstances, makes me extremely solicitous to have them adjusted.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES

Office of Finance, May 9th, 1782.

Sir,

I do myself the honor to enclose you copies of three accounts, which I have this day received from the Controller of the Treasury of the United States. Each State will from these accounts perceive what still remains for it to do in consequence of the resolutions of Congress, of the 18th of March, 1780.

As this is a circular letter, the observations I make shall be general, and such as result from a general view of the object. The particular application of them, dependent on local circumstances, will be made by those to whom such circumstances apply. The resolutions of the 18th of March, 1780, were in part directed towards the redemption of the old Continental money, and the opinions which may have been formed as to the issuing of a new paper medium, the paying of interest upon it, and the connexion with relation to the old, are immaterial under the present point of view.

Nothing can be more clear and simple than this, that the bills issued by Congress for support of the war should be redeemed by taxes. This was one capital object of the resolutions, and as to the apportionment, I am to presume it was as perfect as the fluctuating nature of human affairs will permit, and more especially so, when the few lights, which could the obtained, and the various circumstances of the several States, are compared with the very variable object of depreciated paper, which was then in contemplation. But, admitting for argument's sake, that the apportionment was not strictly right; this must also be admitted, that to redeem the paper was called for by principles both of reason and justice. It was, therefore, a duty of the several States to comply with the requisitions of their sovereign representative. For any inequalities, either actually existing, or which a subsequent change of circumstances might produce, would admit of a remedy, but a neglect of the resolutions had the inevitable consequence of injuring the public credit, weakening the public operations, and risking our very existence as a people.

But however strong the motives, which should have prompted a compliance, it will not be disputed that some of the States may have been in circumstances not to admit of the exertion, and whether this incapacity has arisen from exterior violences, or the defects of internal polity, or both, is in one sense immaterial, because the eventual consequence is the same. Yet, though charity may for a time overlook these defects, it becomes the duty of each State to apply a remedy, if the evil be in its nature remediable; and should they neglect what is in their power, they must expect complaints from Congress, and the servants of Congress from the other States, and from their own bosoms the admonitions of conscience, which will become more poignant from every moment's delay.

A general view of the accounts now transmitted, will show at a single glance, that large sums of the old paper still remain to be provided for, and it might, perhaps, have been right in Congress to have fixed an ultimate day of redemption for the whole, and charged what remained due after that day at forty for one in specie to every deficient State. This, I say, might perhaps have been right, if the ravages of war and other local circumstances had not required attention and forbearance as to some, if not all. But it cannot be denied, that many are now in a capacity to call in by taxes their quota of this paper. And those who are, should consider what must be the feelings of men, who hold it on the faith of so many promises, such repeated requisitions, and such sacred bonds of national faith and honor. What must be their feelings to find those promises violated, those requisitions neglected, and that faith disregarded? Can it be expected, that while such flagrant instances of national neglect, to call it by no harsher name, are in the view of almost every citizen, we can possibly establish the fair reputation so essential to public credit?

The plea of inability is not to be admitted, excepting, as I have already observed, in some very particular circumstances. Considering our country in a general point of view, this paper laying dead is already lost, and the only question is, whether that loss shall be borne by the whole people or only a part of them. Those who parted with it have received the value, and it would be a flagrant injustice, that the whole tax for redeeming it should fall on those who have received it. Neither can it be supposed, that if any were inclined to promote such injustice it would be borne by the sufferers. And whether these sufferers are individuals or States, the suffering is the same; the sentiment, therefore, must be the same, and so will the conduct be which that sentiment shall dictate.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 10th, 1782.

Sir,

In consequence of the Act of Congress of the 4th instant, I do myself the honor to enclose a state of the American commerce, with a plan for protecting it. I shall, in obedience to the orders of Congress, transmit a copy of this paper to the commander of his Most Christian Majesty's fleet in the West Indies, and make the application which I am directed to him, and to the commander of the fleet of Spain. I take the liberty to suggest for the consideration of Congress, whether any application on this subject to the Court of France would not go with propriety through the Office of Foreign Affairs.

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

ROBERT MORRIS.[5]

[5] _May 13th_: This day the Chevalier de la Luzerne had a public
audience of Congress, when he announced the birth of the Dauphin
of France. I attended at the ceremony, being admitted into the
Congress hall within the bar, and I took my place next to the
members of Congress, the left of the President, the Minister of
Foreign Affairs and the Minister of War next to me. We stood
during the whole ceremony, as well also the President and Council
of the State of Pennsylvania. When the ceremony was ended, Mr
Livingston, General Lincoln, Mr Gouverneur Morris and myself, went
to his Excellency, the Minister of France, to pay our compliments.
Afterwards we repaired to the City Tavern to an entertainment
ordered by Congress, thence to an exhibition of fireworks at the
State House, and then to an entertainment given by the Secretary
of Foreign Affairs. _Diary._

* * * * *

CIRCULAR TO THE GOVERNORS OF THE STATES.

Office of Finance, May 16th, 1782.

Sir,

I have heretofore taken occasion to observe, that the former expenditures of the United States were at a medium rate of twenty millions of dollars annually, for the support of the war. At the present moment, while laboring under a large debt, only eight millions have been asked for. It is evident, therefore, that the sum now required is as little as can possibly answer the purpose. I venture to say that it is not enough. According to the estimates for the year 1782, which were laid before Congress by the late Board of War, the present establishment of the army would require for pay, exclusive of the half pay, near three millions and a half, for rations near two millions and a half, for clothing, about twelve hundred thousand, for forage above three hundred thousand, for the Quarter Master's department, (exclusive of articles on hand) above eight hundred thousand, for military stores (exclusive of articles on hand) near two hundred thousand, for the hospitals (exclusive of medicine and also of sundry stores on hand) above one hundred thousand.

If to all these be added the sum of four hundred thousand for the Departments of the Pay Office, Commissary of Prisoners, and the various other contingencies of service, which naturally and necessarily arise, without mentioning the losses, which happen in war, here will be an aggregate amount of nine millions, and in this sum nothing is estimated for the interest of our debts, for the Marine, and for the Civil List, and the Department of Foreign Affairs.

Of the various expenditures, much was to be provided immediately. The heavy article of clothing, for instance, was indispensable. Many things were to be provided early, in order that the army might operate, and the subsistence is to be paid for regularly and constantly. Yet the States have not been asked for any money before the 1st day of April; and I appeal to them all, whether the supplies of money they have afforded me for the last year were such as would enable me to provide for the present.

A three months' expenditure was permitted by Congress to elapse, before the first payment of two millions was asked from the States; but what have they done? While I write this letter near two months more are gone forever, and a dishonorable neglect endangers our country. Little local objects have postponed those measures, which are essential to our existence, so that the most fatal consequences are now suspended but by a thread. Should they fall on our heads, this solemn protest shall point to the real cause of our calamities. I write, Sir, to apprize you of the public danger, and to tell you I shall endeavor to fulfil engagements, which I have entered into already, that I may quit my station like an honest man. But I will make no new engagements, so that the public service must necessarily stand still. What the consequences may be I know not, but the fault is in the States. They have not complied with the requisitions of Congress. They have not enabled me to go on. They have not given me one shilling for the service of the year 1782, excepting only the State of New Jersey, from which I received five thousand five hundred dollars, a few days ago, and this is all that has come to my hands out of two millions, which were asked for.

Now, Sir, should the army disband, and should scenes of distress and horror be reiterated and accumulated, I again repeat, that I am guiltless; the fault is in the States; they have been deaf to the calls of Congress, to the clamors of the public creditors, to the just demands of a suffering army, and even to the reproaches of the enemy, who scoffingly declare, that the American army is fed, paid, and clothed by France. That assertion, so dishonorable to America, was true, but the kindness of France has its bounds, and our army, unfed, unpaid, and unclothed, will have to subsist itself, or disband itself.

This language may appear extraordinary, but at a future day, when my transactions shall be laid bare to public view, it will be justified. This language may not consist with the ideas of dignity, which some men entertain. But, Sir, dignity is in duty, and in virtue, not in the sound of swelling expressions Congress may dismiss their servants, and the States may dismiss their Congress, but it is by rectitude alone, that man can be respectable. I have early declared our situation, as far as prudence would permit, and I am now compelled to transgress the bounds of prudence, by being forced to declare, that unless vigorous exertions are made to put money into the treasury, we must be ruined. I have borne with delays and disappointments as long as I could, and nothing but hard necessity would have wrung from me the sentiments, which I have now expressed.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 17th, 1782.

Sir,

I do myself the honor to enclose to your Excellency the copy of a circular letter, which I have written to the several States. The situation which I find myself is extremely delicate. The habitual inattention of the States has reduced us to the brink of ruin, and I cannot see a probability of relief from any of them. I rather perceive a disposition to take money from the public treasury, than to place any in it. A variety of causes, which Congress are, I presume acquainted with, prevents the collection of taxes, and delays the payment of them, even after they are collected. In many States they are not laid. I must not conceal from Congress my apprehensions, that the idle hopes entertained from the changes of administration in Britain will increase that negligence, which is but too prevalent throughout the United States.

I might add many reasons, why a call should be made in the present critical moment, and it is evident, that such a call should be couched in terms so pressing, as to stimulate if possible their sluggishness into exertion. But on the other hand, it is evident that if a faithful representation of our distressed circumstances should fall into improper hands, it would be productive of the most dangerous consequences. And when the number of our internal enemies, and the designs of our external ones are considered, there can be little doubt, that such a letter would be handed about soon after its arrival for the illicit purposes of both. At the same time, however, it must be considered, that if any fatal consequences should ensue from the continued negligence of the States, attempts will be made to justify it on the principle, that they were not seasonably apprized of their danger.

I am sure I need not take up more of your time, Sir, in showing the difficulties with which on the present occasion I am surrounded. Urged by them I must entreat the opinion of Congress, whether the letter in question be retained or transmitted. I take the liberty further to remark, Sir, that the declaration contained in it, purporting any intention not to make new engagements, is short of what I am under the necessity of doing, for the public departments are now absolutely at a stand for the want of money, and many things already commenced I must desist from. This cannot be wondered at, when it is considered that near five months of the present year have elapsed without my having received anything on account of its expenditures, except the trifling sum of five thousand five hundred dollars mentioned in the enclosed letter, and that sum, calculating our expenses at eight millions annually, is about _one fourth of what is necessary to support us for a single day_.

I have the honor to be, &c.

ROBERT MORRIS

* * * * *

TO B. FRANKLIN.

Office of Finance, May 17th, 1782

Sir,

In a letter which I had the honor to write to your Excellency on the 17th of last month, I mentioned the communications of the Minister of France here, by which I was empowered to draw to the amount of six millions in monthly instalments of half a million each. He has since informed me, that no moneys will be paid by his Court except on my draft. It is in consequence of this, that I have drawn the bills contained in the enclosed letter to Mr Grand, which is left open for your perusal. Your Excellency will be pleased to arrange this matter with Mr Grand, so as best to answer the purposes intended. You will also be pleased, Sir, to pay over to Mr Grand on my account such moneys belonging to the United States as may be in Europe, distinct from those to be advanced by the Court for the current year.

I am extremely desirous of having a state of these matters so as to know what dependence can be made on the funds, which are at our command. You would, therefore, confer upon me a very particular obligation by transmitting the best statement in your power. I mentioned to your Excellency in a former letter, that I would write to you on the subject of your salary, more particularly than I then did, but I have since spoken and written to Mr Livingston with relation to those matters, and he will, I expect, write to you and to all our foreign Ministers very fully.

We have not yet heard anything of the Alliance, and therefore conclude, that she must have been delayed in Europe. I hope this may have been the case, for if she sailed on the 1st of March, according to my orders, she must have met with some unfortunate accident. I hope soon to hear from your Excellency. Indeed I persuade myself, that in the very critical situation of affairs at present, we cannot be long without receiving very important intelligence.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO MR GRAND.

Office of Finance, May 17th, 1782.

Sir,

In my letters of the 28th of March, and 8th of April, I informed you of my drafts on you to the amount of five hundred thousand livres. I have since that time drawn sundry other bills, all of which you have been duly advised of, or will be so by this conveyance.

I am now to inform you, that his Excellency, the Minister of France, has given me assurances on the part of his Court, that five hundred thousand livres per month, during the year 1782, will be paid on my drafts, making in the whole six millions. He has also suggested to me the expedient of drawing twelve sets of exchange on Dr Franklin, our Minister Plenipotentiary, in favor of my banker, so that the money may be in his hands monthly at my order. In consequence therof, I now enclose to you twelve bills of exchange on Dr Franklin, all at thirty days' sight, and each for half a million. When these bills arrive you will present so many of them for acceptance, as that at the end of the thirty days the amount shall be equal to the monthly payments above mentioned. As for instance, if these bills should arrive in July, you will present seven of them for acceptance, because by the time the thirty days have elapsed there will be due so many of those monthly payments. But in this, as well as in other matters of arrangement with the Court, you will take the advice of Dr Franklin and govern yourself accordingly.

The several bills which I draw on you I will regularly inform you of. After the first month has elapsed you will present another bill for acceptance, and so on monthly, presenting each month a bill. I write also by this conveyance to Dr Franklin to pay on my account all the moneys belonging to the United States in Europe, which may be in his possession.

I wrote to Dr Franklin on the 17th of April to inform you, that I should draw on Messrs Fizeau, Grand & Co. at Amsterdam, and on Messrs Harrison & Co. at Cadiz, desiring that you would direct those houses to honor my bills, and take their reimbursement on you, which I now confirm. I expect that the five hundred thousand livres which are mentioned in my letters of the 28th of March, and 8th of April, will be paid out of moneys, which were already in Europe; and indeed, that still farther sums were there belonging to the United States, besides the monthly payments to be made by the Court as above mentioned. At any rate you will be in cash to pay all the bills which I have drawn or shall draw. You will take care to transmit me a state of your accounts by every opportunity that I may be thereby directed in my operations.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO MR GRAND.

Office of Finance, May 18th, 1782.

Sir,

Our enemies being at length convinced by fatal experience, that it is in vain to effect the conquest of America, have now changed the mode of attack, and strike at our commerce and our resources. I have no doubt, but that eventually they will be foiled in this, as in every other attempt they have made, but in the interim between their first effort and the period which must elapse, in preparations to obviate this plan, we have suffered and must suffer considerably.

The commerce of this country has sustained no severer blow than has been hitherto felt, and the effects of it materially influence my operations. The merchants deprived of their property cannot command money, and of consequence cannot pay bills. I am, therefore, unable to command by drafts the money in your hands. My bills do not yet amount to a million of livres, and will not I believe exceed that sum when this letter goes away. These bills will not come to you before the month of July, and the greater part will not be payable until the end of September, and even later; but you will be possessed of three millions and a half by the first of July, even if you shall have received nothing from Dr Franklin on the old accounts.

I am therefore to request that you will make three shipments of one hundred thousand crowns each, or six hundred thousand livres, making in the whole eighteen hundred thousand livres. I wish it to be sent by three different conveyances, for the sake of greater safety, unless some very important convoy should offer, in which case I desire an immediate shipment of twelve hundred thousand livres. I wish also, that the money be invested if possible in gold, because four crowns are worth here only four hundred pence, but a louis is worth four hundred and fourteen pence, being a difference of three and a half per cent. But that you may know the best mode of investing it, I have to inform you, that English guineas are worth four hundred and twenty pence, half johannas seven hundred and twenty pence, moidores five hundred and forty pence, and Spanish pistoles three hundred and thirtysix pence.

I shall leave this letter open for the inspection of Dr Franklin, to whom I shall enclose it, and I shall request him to obtain for and communicate to you such information from the Court as may be necessary for your direction in this business. I wish that the shipments of money may if possible be on board of the same vessels in which the money shall be sent for the use of the French army or navy here. I wrote to you on the 3d of December last, requesting you to pay to Messrs Couteulx & Co. for account of John Ross two hundred thousand livres, and for account of William Bingham one hundred thousand livres, to John Holker for account of John Holker fils; conceiving that you would be in cash for the purpose, from the loan opened in Holland for our use.

I hope before this reaches you, that those sums will have been paid; and you will observe it is my wish, that as well those as the bills mentioned in my letters of the 9th and 28th of March, should be paid out of that loan, but if that cannot be done, you will then make payment from any other moneys which may be in your hands.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO.[6]

Office of Finance, May 18th, 1782.

Gentlemen,

I pray that you will receive my sincere thanks for the accurate and punctual manner in which you have performed the business of the United States, which I have placed in your hands, and be assured that it shall always command my attention. I should have lodged in your hands very considerable sums on their account, subject to my disposition, but Dr Franklin having recommended to me in a very particular manner Mr Grand, whom he had formerly employed, not only for his punctuality as a banker, but also for his zeal in the American cause, which he had early and warmly espoused, and evidenced his attachment by liberal advances of money on the credit of their commissioners, before the Court had acknowledged them as a nation, I thought it my duty to employ him. But I think it more than probable, I shall have occasion for another banker, on particular occasions and negotiations, and I shall take the liberty in every such instance to employ you, gentlemen, not in the least doubting a continuance of your punctuality and attention.

I have the honor to be, &c.

ROBERT MORRIS.

[6] _May 20th._ This evening I met Mr Madison, Governor Rutledge,
Mr Clymer, Mr Lovell, and Mr Root, the Committee of Congress
appointed to confer with me on the subject of my letter to
Congress of the 17th instant, enclosing an intended circular
letter to the States. I laid before these gentlemen a true picture
of our present situation, but after much conversation, they
appeared to be disinclined to sending the circular letter, and I
proposed sending suitable persons to the several States, to make
proper representations to the Executives and Legislatures, which
they seemed to prefer, and on which they are to consult and report
tomorrow morning. _Diary._

* * * * *

TO B. FRANKLIN.

Office of Finance, May 23d, 1782.

Sir,

The Minister has been so kind as to delay his express, until I could write this letter. You mention in yours of the 4th of March, that on Friday (then) last, the Minister informed you that we should have six millions, paid quarterly, and that you should now be able to face the loan office and other bills, and your acceptances _in favor of M. de Beaumarchais_.

You are not unacquainted with the disputes which have subsisted with respect to M. de Beaumarchais' demand. Whether or not the moneys were originally advanced to him by the Court, is not at present to be brought into question by me, because it involves many things, which are better adjusted by the Court themselves, than by any communications to or with others. I am only to observe, that if the very considerable sum, which is now payable to that gentleman forms a deduction from the pecuniary aid afforded us, the remainder will be extremely incompetent to the purposes intended by it. There can be no doubt that your acceptances must be paid, but I have always expected that you would have been enabled to do it by a special grant for that purpose, or by an assumption of the payment on the part of the Court. I shall not enter into the mode of arranging this business, but I must not refrain from observing, that the great object now is to prosecute the war, that the articles which may have been furnished for the sum payable to M. de Beaumarchais must long since have been applied and expended, that our necessities now are as pressing as they possibly can be, and that everything which adds to their weight is extremely distressful.

You will observe, Sir, that I have already made my dispositions as to the six millions granted for the current year. I shall go on to draw as occasion offers, for all the moneys which may be in Mr Grand's possession, making allowance for the shipments of money, directed in my letters to him. If, therefore, any part of this sum should be otherwise disposed of, it might produce the most dangerous consequences.

With respect and esteem, I am, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 23d, 1782.

Sir,

I do myself the honor to enclose to your Excellency copies of letters, the former from Dr Franklin to me of the 4th of March, and the latter from the Count de Vergennes to him of the 6th of February. With these, I send the best sketch I have been able to form of the state of the public moneys; from which Congress will perceive that every sou we can command during the year 1782 is already anticipated. They will perceive that the pecuniary supplies of 1781 and 1782 amount, after deducting the expenses on the loan, to twentyfive and a half millions of livres, and that there are, (including the two million two hundred thousand livres, appropriated to the interest of Loan Office certificates) ten millions, besides the sum expended in Holland, which have already passed and are now passing through the hands of Dr Franklin, and of which not a livre has been, or ever will be, applied to the current service.

If to this be added above two millions and a half due on Beaumarchais' bills, we shall have an amount of about twelve and a half millions, being at least one half of all the moneys obtained abroad for the service of the year 1781 and 1782. And we shall find, that this greater half is totally consumed in paying the principal of some, and the interest of other debts, which have been contracted before that period. I shall make no further comments on these things. They are before Congress, and will speak for themselves. I have only to lament, that the situation to which our affairs have been reduced is such, that the greatest exertion which our ally can make in our favor is barely sufficient to satisfy present engagements, and that the knowledge of such aid only confirms the inattention of our own citizens to those distressing circumstances which it does not relieve.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, May 27th, 1782.

Sir,

I do myself the honor to enclose certain information, which I have just received in a letter from the Minister of France. I take this occasion to mention, that it is some time since M. de la Luzerne communicated to me the grant of his Court, which was made in the month of December last. I think it my duty to add the persuasion I have, that this grant was made on the Minister's representations, and I cannot omit testifying to Congress my grateful sense of his conduct, and my conviction, that his endeavors have not been wanting still further to promote the interests of the United States.

I should earlier have communicated my intelligence of the loan in question, but I wished to receive the details, which would enable me to judge how much of it was at my disposition. I confess that I did not expect they would have been so unfavorable. I was restrained also by an apprehension, that the exertions of the States would relax, when they should learn that any foreign aid could be obtained; and the situation of our commerce was such, that if I had been enabled to draw for much larger sums, it would have been of no avail, as I could not have got money for the bills.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

_Information mentioned in the above Letter._

The King never promised any subsidy to the United States, and all the sums which they have received from him have been lent or freely given. All those, which have been advanced after the 6th of February, 1778, are to be repaid by the United States except the six millions given last year. All the rest, whether furnished in money or in value, is a debt, which they have contracted with his Majesty.

These advances have been made at the following periods, and are payable with interest, conformably to the acknowledgements and obligations of Dr Franklin.

Livres.
In 1778, 3,000,000
In 1779, 1,000,000
In 1780, 4,000,000
In 1781, 10,000,000
----------
Total, 18,000,000

From this sum must be taken the
gratuitous subsidy granted last year of 6,000,000
----------
Remains 12,000,000

To this must be added, 1st the
produce of the loan in Holland, 10,000,000

2dly, The loan made by his Majesty for the
service of the current year, 6,000,000
---------

Total of the capital of the debt contracted
by the United States with his
Majesty, 28,000,000

I am ordered, Sir, to renew to you the demand, which I had the honor to make before, to the purport that Congress should authorise Dr Franklin to consolidate the principal and interest of that debt, by an obligation in proper form. You are so firmly resolved, Sir, to preserve the order you have introduced into your department, that it would be superfluous to reiterate to you the assurance, that his Majesty will under no pretext exceed the sum of six millions, which he has determined to advance to the United States for the current year. This exactness, which is in all cases indispensable, has become still more so now, that the enemy seem determined to adopt a system, which obliges us to turn the greatest part of our resources to a marine. I am persuaded, Sir, that you can have no doubt as to the interest of Loan Office certificates, and that you will not consider it as being at our expense, seeing that no engagement of that sort has ever been taken by us. If bills for this interest should continue to be forwarded, those who draw must provide for the payment of them.

LUZERNE.

* * * * *

TO B. FRANKLIN.

Office of Finance, May 29th, 1782.

Dear Sir,

I do myself the honor to enclose you copies of two Acts of Congress, one of the 5th of June, and the other of the 18th of June, 1779, relating to the affairs of M. de Beaumarchais.

You will observe, Sir, that you were authorised to pledge the faith of the United States to the Court of Versailles for obtaining money or credit to honor the drafts on you. There is a mysteriousness in this transaction arising from the very nature of it, which will not admit of explanation here, neither can you go so fully into an explanation with the Court. M. de Beaumarchais certainly had not funds of his own to make such considerable expenditures; neither is there any reason to believe that he had credit. If the Court advanced money it must be a secret; but there would be no difficulty in giving an order in your favor for the sum necessary to pay those bills, and, therefore, measures might be taken to obtain from him the reimbursement of any sums he might have received. Consequently, there would be no actual advance of money made, as the whole might be managed by the passing of proper receipts from you to the Court, from M. de Beaumarchais to you, and from the Court to him.

I wish that you would apply on this subject and get it adjusted. The diverting from a loan, for the service of the current year, so considerable a part as that due to M. de Beaumarchais, will defeat the object for which it was granted. It ought not, therefore, to be done if possible to be avoided.

With respect and esteem, I am, &c.

ROBERT MORRIS.

* * * * *

TO DANIEL CLARKE.

Office of Finance, May 30th, 1782.