Chapter IX: Part 9

It is not necessary to dwell on the mode of collecting these branches of revenue, because in reason, a determination on the propriety of the taxes should precede it. I will only take the liberty to drop one idea with respect to the impost already required. It is conceived that laws should be so formed, as to leave little or nothing to the discretion of those by whom they are executed; that revenue laws, in particular, should be guarded in this respect from odium; being, as they are, sufficiently odious in themselves; and therefore it would have been well to have stipulated the precise sum payable on different species of commodities. The objection is, that the list to be accurate must be numerous. But as this accuracy is necessary, the description ought to be very short and general, so as to comprise many commodities under one head; and the duty ought to be fixed according to their average value. The objection against this regulation, is, that the tax on fine commodities would be trivial, and on coarse commodities great. This indeed is true; but it is desirable for two reasons. First, that coarse and bulky commodities could not be smuggled to evade the heavy duty; and that fine commodities would not be smuggled to evade the light duty. Secondly, that coarse commodities, generally speaking, minister to the demands of necessity or convenience, and fine commodities to those of luxury. The heavy duty on the former would operate an encouragement to produce them at home, and by that means a stoppage of our commerce in time of war would be most felt by the wealthy, who have always the most abundant means of procuring relief.

I shall now, Sir, take the liberty to suppose, that the revenues I have mentioned, or some others, to the amount of at least two millions net annual produce, were asked for and obtained, as a pledge to the public creditors, to continue until the principal and interest of the debts contracted or to be contracted, shall be finally paid. This supposition is made, that I may have an opportunity, thus early, to express my sentiments on the mode of appropriation. It would be as follows; any one of the revenues being estimated, a loan should be opened on the credit of it, by subscription to a certain amount, and public debts of a particular description, or specie, be received in payment of the subscriptions. This funded debt should be transferable under particular forms, calculated for the prevention of fraudulent, and facilitating of honest negotiations. In like manner on each of these revenues should subscriptions be opened, proceeding by degrees so as to prevent any sudden revolutions in money matters, such revolutions being always more or less injurious.

I should further propose, that the surplus of each of these revenues, (and care should be taken that there would be a surplus,) should be carried to a sinking fund; on the credit of which, and of the general promises of government, new loans should be opened when necessary. The interest should be paid half yearly, which would be convenient to the creditors and to the government, as well as useful to the people at large; because by this means, if four different loans were opened at different times, the interest would be payable eight times in the year; and thus the money would be paid out of the treasury as fast as it came in; which would require four officers to manage the business, keep them in more constant and regular employment, dispense the interest so as to command the confidence and facilitate the views of the creditors, and return speedily the wealth obtained by taxes into the common stock.

I know it will be objected, that such a mode of administration would enable speculators to perform their operations. A general answer to this would be, that any other mode would be more favorable to them. But further, I conceive, first, that it is much beneath the dignity of government to intermeddle in such consideration. Secondly, that speculators always do least mischief where they are left most at liberty. Thirdly, that it is not in human prudence to counteract their operations by laws; whereas, when left alone, they invariably counteract each other; and fourthly, that even if it were possible to prevent speculation, it is precisely the thing which ought not to be prevented; because he who wants money to commence, pursue, or extend his business, is more benefited by selling stock of any kind, even, at a considerable discount, than he could be by the rise of it at a future period; every man being able to judge better of his own business and situation than the government can for him.

So much would not perhaps have been said on the head of this objection, if it did not naturally lead to a position, which has hitherto been ruinous, and might prove fatal. There are many men, and some of them honest men, whose zeal against speculation leads them to be sometimes unmindful not only of sound policy, but even of moral justice. It is not uncommon to hear, that those who have bought the public debts for small sums, ought only to be paid their purchase money. The reasons given are, that they have taken advantage of the distressed creditor, and shown a diffidence in the public faith. As to the first, it must be remembered, that in giving the creditor money for his debt, they have at least afforded him some relief, which he could not obtain elsewhere, and if they are deprived of the expected benefit, they will never afford such relief again. As to the second, those who buy up the public debts, show at least as much confidence in the public faith as those who sell them. But allowing, for argument sake, that they have exhibited the diffidence complained of, it would certainly be wiser to remove than to justify it. The one mode tends to create, establish, and secure public credit, and the other to sap, overturn, and destroy it. Policy is, therefore, on this, as I believe it to be on every other occasion, upon the same side of the question with honesty. Honesty tells us, that the duty of the public to pay, is like the same duty in an individual. Having benefited by the advances, they are bound to replace them to the party, or to his representatives. The debt is a species of property, and whether disposed of for the whole nominal value, or the half, for something, or for nothing, is totally immaterial. This right of receiving and the duty of paying must always continue the same. In a word, that government which can, through the intervention of its Courts, compel payment of private debts, and performance of private contracts, on principles of distributive justice, but refuses to be guided by those principles as to their own contracts, merely because they are not amenable to human laws, shows a flagitious contempt of moral obligations, which must necessarily weaken, as it ought to do, their authority over the people.

Before I conclude this long letter, it would be unpardonable not to mention a fund, which has long since been suggested, and dwells still on the minds of many. You doubtless, Sir, anticipate my naming of what are called the back lands. The question as to the property of those lands, I confess myself utterly incompetent to decide, and shall not for that reason presume to enter on it. But it is my duty to mention, that the offer of a pledge, the right of which is contested, would have ill consequences, and could have no good ones. It could not strengthen our credit, because no one would rely on such a pledge, and the recurrence to it would give unfavorable impressions of our political sagacity. But admitting that the right of Congress is clear, we must remember also, that it is disputed by some considerable members of the confederacy. Dissentions might arise from hasty decisions on this subject. And a government torn by intestine commotions, is not likely to acquire or maintain credit at home or abroad.

I am not, however, the less clear in my opinion, that it would be alike useful to the whole nation, and to those very constituent parts of it, that the entire disposition of those lands should be in Congress. Without entering, therefore, into the litigated points, I am induced to believe, and for that reason to suggest, the proposing this matter to the States as an amicable arrangement. I hope to be pardoned when I add, that considering the situation of South Carolina and Georgia, it might be proper to ask their consent to matters of the clearest right. But that supposing the right to be doubtful, urging decision in the present moment, might have a harsh and ungenerous appearance.

But if we suppose this matter to be arranged either in the one mode or in the other, so that the right of Congress be rendered indisputable (for that is a previous point of indispensable necessity) the remaining question will be, as to the appropriation of that fund. And I confess it does not appear to me, that the benefits resulting from it are such as many are led to believe. When the imagination is heated in pursuit of an object, it is generally overrated. If these lands were now in the hands of Congress, and they were willing to mortgage them to their present creditors, unless this were accompanied with a due provision for the interest, it would bring no relief. If these lands were to be sold for the public debts, they would go off for almost nothing. Those who want money could not afford to buy land. Their certificates would be bought up for a trifle. Very few monied men would become possessed of them, because very little money would be invested in so remote a speculation. The small number of purchasers would easily and readily combine; of consequence they would acquire the lands for almost nothing, and effectually defeat the intentions of government; leaving it still under the necessity of making further provision, after having needlessly squandered an immense property.

This reasoning is not new. It has been advanced on similar occasions before, and the experience, which all America has had of the sales of confiscated estates and the like, will now show that it was well founded. The back lands then will not answer our purpose, without the necessary revenues. But those revenues will alone produce the desired effect. The back lands may afterwards be formed into a fund, for opening new loans in Europe on a low interest, redeemable within a future period, (for instance twenty years) with a right reserved to the creditors of taking portions of those lands on the non-payment of their debts, at the expiration of the time. Two modes would offer for the liquidation of those debts. First, to render payment during the term to those who would not consent to alter the nature of the debt; which, if our credit be well established, would place it on the general footing of national faith. And secondly, to sell portions of the land (during the term) sufficient to discharge the mortgage. I persuade myself, that the consent of the reluctant might be obtained, and that this fund might hereafter be converted to useful purposes. But I hope that in a moment when the joint effort of all is indispensable, no causes of altercation may be mingled unnecessarily in a question of such infinite magnitude as the restoration of public credit. Let me add, Sir, that unless the money of foreigners be brought in for the purpose, sales of public lands would only absorb that surplus wealth, which might have been exhaled by taxes; so that in fact no new resource is produced. And that while, as at present, the demand for money is so great as to raise interest to five per cent per month, public lands must sell extremely low, were the title ever so clear. What then can be expected, when the validity of that title is one object of the war?

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, July 30th, 1782.

Sir,

I do myself the honor to enclose for the inspection of Congress, estimates for the service of the year 1783, amounting in the whole to eleven millions. I should be strictly justified in praying a requisition of the United States for that sum, but I conceive that the demands made should be the lowest which our circumstances will possibly admit of. I am persuaded, that if the United States in Congress will adopt those means of economy, which are in their power, we may save two millions; and, therefore, on a presumption that those means will be adopted, I shall ask only nine millions. Congress will observe, that the estimates of the Marine Department amount to two millions and a half; whereas there was no estimate made for that service in the last year, any more than for the Civil List. There can be no doubt that the enemy have changed their mode of warfare, and will make their principal exertions in the naval line. It becomes us, therefore, to make like exertions, and that for the plainest reasons.

Experience has shown that the efforts to obtain a large army have for many years proved utterly fruitless. The only effect of those efforts, has been to enhance the price of such men as were obtained, and thereby to disable the States, who exerted themselves to raise recruits, from pouring supplies into the public Treasury. Thus we have not only been unable to get more men, but also to pay and support those which we had gotten. Admitting, however, that the required number were obtained and properly supported as an army, these things are clear; first, that without naval aid we could not make an impression on the enemy's posts. Secondly, that they would be able to harass and distress us in every quarter, by predatory incursions. Thirdly, that they would prevent us from receiving those supplies, which are necessary alike to the operations and existence of an army. And, fourthly, that their inroads on our commerce would produce such distress to the country, as to make our revenues utterly unproductive, and finally bring our affairs to destruction.

An army, therefore, without a navy would be burdensome, without being able to give essential aid, supposing the enemy to have changed their system of carrying on the war. But if we had a navy, we should be able, first, to prevent the enemy from making predatory incursions. Secondly, we should, at least, keep the ships they have on our coast together, which would prevent them from injuring our commerce, or obstructing our supplies. Thirdly, if they kept in this country an equal or superior force, we should by that means have made a powerful diversion in favor of our allies, and contributed to give them a naval superiority elsewhere. Fourthly, if our enemy did not keep an equal or superior force in this country, we should be able by cruising to protect our commerce, annoy theirs, and cut off the supplies directed to their posts, so as to distress their finances and relieve our own. Fifthly, by economising our funds, and constructing six ships annually, we should advance so rapidly to maritime importance, that our enemy would be convinced, not only of the impossibility of subduing us, but also of the certainty that his forces in this country must eventually be lost, without being able to produce any possible advantage. And, sixthly, we should, in this mode, recover the full possession of our country, without the expense of blood or treasure, which must attend any other mode of operations; and while we are pursuing those steps, which lead to the possession of our natural strength and defence.

I trust, Sir, that the influence of these considerations, will not only lead the councils of America to adopt the measures necessary for establishing a navy, but that by economising as much as possible, we may be able (from the sums now to be asked for) to do more in that line than is contained in the estimate; but as this must depend on circumstances, which we cannot command, so it is not prudent or proper to rely on it. Having already stated the lowest necessary sum at nine millions, I proceed, Sir, to propose that four millions be borrowed, which will reduce the quotas to five millions. I make this proposition, under the idea, that the plans contained in my letter of yesterday's date be adopted. The quotas then being five millions, the sum total of what will be taken from the people will amount to only seven millions; and of that, full twelve hundred thousand will be paid back as the interest of our domestic debt, so as not to be, in fact, any burden on the whole people, though a necessary relief to a considerable part of them. On this plain statement I shall make no comment. I shall only pray, that as much expedition may attend the deliberations on these objects as the importance of them will permit, so that the States may be in a situation to make speedy decisions. And this is the more necessary, as the negotiations for a loan must be opened in Europe early next winter.

I have the honor to be, &c.

ROBERT MORRIS.[9]

[9] _August 1st._ This day many people expected that my
engagements to supply the Paymaster General with money to
discharge the notes, which, under that engagement he had issued to
the officers of the army on account of their pay, would be broken,
and, consequently, that my public credit would be lost, and a
train of evils, easy to be conceived, ensue to the United States.
But having warranted Mr Pierce, the Paymaster General, to give his
notes in February last to all the officers of our army, viz. to
all subalterns for the amount of three months' pay, that is, for
January, February, and March, 1782, I have for some time past been
providing for the performance of this engagement, and to
accomplish it, have been distressed in a variety of channels. When
this engagement was taken, it was at the pressing instance of the
Commander in Chief, and to enable the officers to clothe
themselves, which they could not have done without that seasonable
aid. At the time this engagement was made, I had a right to expect
that four millions of dollars would be paid into the treasury of
the United States; as, agreeable to the requisitions of Congress,
two millions were to be paid on the 1st day of April, and two
millions on the 1st day of July. Instead of receiving those sums,
I have not to this hour received fifty thousand dollars on account
thereof, and have, therefore, been compelled to raise this money
by selling bills of exchange on France. Upon sending for Mr
Pierce's return of the notes I issued, I find they amount to one
hundred and forty thousand two hundred and sixtysix dollars; of
which Mr Sands is possessed of thirtynine thousand, which he has
delivered up on my paying part of the amount now, and part to be
paid a short time hence, which leaves to be provided for about
eightyfive thousand nine hundred and fortysix dollars; and as this
debt will be punctually paid, it leaves only an unprovided balance
of fifteen thousand three hundred and twenty dollars, which I
think will be ready before payment is demanded; so that the hopes
and expectations of the malicious and disaffected will in this
instance be disappointed. _Diary._

* * * * *

TO THE GOVERNOR OF RHODE ISLAND.

Office of Finance, August 2d, 1782.

Sir,

I presume you have been before this informed, that all the States except Rhode Island, have acceded to the impost law. A committee of Congress lately appointed on this subject, did me the honor to request my attendance, with that of your Delegates, to hear the objections from them, and know from me the circumstances attending the requisition. After a long conversation the committee were about to confer on a report, which, at my request they were pleased to suspend, that I might have the last opportunity of praying your attention to the subject. And I was induced to make that request, as well for the avoiding those disagreeable discussions, which cannot exist between the Union and an individual State without inducing pernicious consequences, as because it appeared to me, that the reasons urged against passing the impost are not conclusive, as some have thought them to be.

Mr Howell was so kind as to promise, that he would state his objections in writing. This he has done, and a copy of them is enclosed. They are,

1st. That the impost would draw a disproportionate supply from either merchant or consumer.

2dly. That Rhode Island imports and consumes more of foreign articles in proportion, than any other State.

3dly. That, from her maritime situation she is exposed to great losses.

4thly. That the exclusive benefit of the impost should be carried to account of the State.

5thly. That the impost will raise prices, and therefore manufactures brought from the neighboring States will draw a revenue from Rhode Island.

6thly. That duties imposed by the neighboring States may compel Rhode Island to subsist by foreign articles.

7thly. That many men will be employed in the collection.

8thly. That it would be evaded by smuggling; and,

9thly. That the collection may be objectionable.

To each of these I will reply in their order.

1st. To determine whether the impost will act proportionably or not, we must consider in what respect the proportion is to be taken. If it be a proportion between two of the States, that will be considered under the second head; if it be a proportion among the people of the same State, it is only recurring to the question, whether the taxes on consumption are useful; for so long as no man pays the tax, but he who chooses to purchase the article, the disproportion, if any, is of his own creating. The necessity of a revenue to a certain amount must be admitted. Is it then wise to raise a part of it from the _consumption_ of foreign articles? I say the consumption, because the tax undoubtedly falls on the consumer and not on the importer. If this be not a wise tax, what shall we substitute? Articles of primary and immediate necessity are made in the State of Rhode Island. Both food and raiment can be had without crossing the Atlantic in search of them. Every man, therefore, is at liberty to use foreign articles or not. If he does use them the tax is voluntary, and therefore cannot be considered as disproportionate, any more than for one man to wear silk while another wears wool.

2dly. That Rhode Island consumes more foreign commodities in proportion than any other State in the Union, cannot be admitted. Rhode Island certainly makes many commodities, but the more southern States are in the habit of importing everything.

3dly. That Rhode Island is, from its situation, liable to the unhappy accidents of war is true; but this incidental evil, arising from an advantageous position, cannot be adduced as a plea for exemption from public burdens. New York has suffered, at least as much and as long.

4thly. That the exclusive benefits of an impost should be carried to the State where it is collected, is a position unjust in itself, and which would forever prevent any duties; wherefore it would cut off not only one of the most productive, but one of the most useful branches of revenue. Rhode Island, Pennsylvania and some other States carry on the commerce of their neighbors as well as their own, from which they derive great riches. The duties are always (like the risks and the expenses) paid by the consumer; for unless this be so, no tolerable reason can be assigned, why foreign commodities should be dearer in war than in peace. If then a considerable duty were laid by the commercial State, it would fall on its uncommercial neighbor. That neighbor, therefore, would immediately take measures to carry on its own commerce, and prohibit the bringing of articles from the commercial State. Those measures would produce a repeal of the duty. I take no notice here of the altercations which would arise; it is sufficient to show, that the private view of revenue for the State would be defeated.

5thly, and 6thly. These objections do not appear to me to apply, because in the first place, I can hardly suppose the neighboring States will ever think of laying duties on the produce, for if any of them should, her citizens would be the sufferers. Secondly, if the article of produce be left uncontrolled by the government every individual will be a check on the avidity of his neighbors, and if by this means a piece of American goods can be vended cheaper in Rhode Island than a piece of foreign goods, the consumer in Rhode Island will by the purchase of it save money to himself, and therefore to the country. And as the duty is collected only on foreign goods he will not pay the duty, and of course the duty on his State will be so much the less.

7thly. The seventh objection will apply more strongly to almost any other kind of tax, because this may be collected by a very small number of men.

8thly. The eighth objection I cannot admit, because forming my opinion of that State from what I conceive to be the character of the gentleman who makes the objection, I cannot believe it to be valid. Smuggling was formerly not disreputable because it was the evading of laws, which were not made by proper authority, and therefore not obligatory; but nothing can be more infamous than to defraud our own government of so poor a pittance; and I trust, that if any individual were inclined to do so, he would be detected by the first person who saw him, and would be as much exposed to the resentment and contempt of his fellow citizens as an informer would have been in the times alluded to.

9thly. The last objection ought not to be made, because there is no reason to suppose, that Congress would devise means to oppress their fellow citizens. But it is one of our greatest misfortunes, that men are apt to reason from one thing to another that is very dissimilar. The parliament of England cared nothing about the consequences of laws made for us, because they were not affected by them. This is always the case under such circumstances, and forms one of the most powerful arguments in favor of free governments. But how can it be supposed, that a member of Congress who is liable to be recalled at a moment's warning would join in measures which are oppressive to the people, and which he must necessarily himself feel the weight of, without deriving any advantage from them. For it is not here as in England, that there is a King to buy votes for bad purposes. If the members of Congress be seduced, it must be by the Congress, which is absurd. If indeed the Congress were either an hereditary body, self-existent, or if they were self-elected, there might be room for apprehension, but as they are, there can be none.

Now, Sir, the state of things is shortly this. The United States are deeply indebted to the people of America. They have called for revenues to pay their debts in a course of years, being the only means of reviving credit and lightening burdens. All the States consent but Rhode Island, to whose citizens a very considerable part of this debt is due. Of consequence the whole is suspended. The reasons assigned are purely local, and I verily believe are founded on mistaken principles. The revenue, however, if granted is insufficient. More must be demanded; and consequently, as all taxes are unpleasant some State will be found to oppose any which can be devised, on quite as good ground as the present opposition. What then is the consequence?

I am, Sir, &c.

ROBERT MORRIS.

* * * * *

TO SIR GUY CARLETON.

Office of Finance, August 20th, 1782.

Sir,

I do myself the honor to enclose to your Excellency letters from the masters of two flag ships, which have arrived in this port with American prisoners. I have sent them in by Mr John Greene, one of the persons that came in the Symmetry, who will bring such orders, as your Excellency may think proper to transmit to those gentlemen. I have further to mention, Sir, that I intend delivering to one of them such British marine prisoners as may be in this place, or its vicinity, when they depart, provided their receipt shall be deemed a proper evidence of the delivery, on a settlement of the account hereafter. On this point I shall be happy to learn your sentiments. It might have been more proper to have addressed myself to Admiral Digby, especially as Mr Greene carries the duplicates of a former letter to him. But as the King's servants in England have placed the masters of these flags under your Excellency's directions, I was led to conclude, that if the concurrence of the Admiral should be necessary, you would take the trouble of obtaining it.

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

ROBERT MORRIS.

* * * * *

TO ALEXANDER HAMILTON.

Office of Finance, August 28th, 1782.

Sir,

I have duly received your several favors of the 22d and 27th of July, and 10th and 13th of August. My not answering them is owing to causes which you will easily conceive; for you will easily conceive the multiplicity of objects to which I must turn my attention. I am very sorry to learn that you can no longer continue in the office of Receiver. It would have given me great pleasure that you should have done so, because I am sure that you would have rendered very signal services to the public cause. This you will now do in another line, more important as it is more extensive; and the justness of your sentiments on public affairs, induce my warm wish that you may find a place in Congress so agreeable, that you may be induced to continue in it.

I am sorry to learn, that any letter of mine should have given offence; but I conclude that this effect must follow from many parts of my writings and conduct; because the steady pursuit of what appears to be the true line of duty will necessarily cross the various oblique views of interest and opinion. To offend is sometimes a fault, always a misfortune. The letter in question is, I suppose, under the date of the 11th of December, of which I enclose you a copy. Let me at the same time assure you, that in all your excellent letter of the 13th instant, I most esteem the clause now in question because it contains that useful information which is least common. I will make no apologies for the letter, to any one, because apologies are rarely useful, and where the intention has been good, they are to candid minds unnecessary. Possessed of the facts you can guard against misrepresentation, and I have found that to be the most hostile weapon, which either my personal or political enemies have been able to wield against me.

I have not even yet seen the resolutions of your Legislature, relative to an extension of the powers of Congress. I had supposed the same reason for them that you have expressed. Indeed power is generally such a darling object with weak minds, that they must feel extreme reluctance to bid it farewell; neither do I believe that anything will induce a general consent to part with it, but a perfect sense of absolute necessity. This may arise from two sources, the one of reason the other of feeling; the former more safe and more uncertain, the latter always secure and often dangerous. It is, my Dear Sir, in circumstances like these, that a patriotic mind seeking the great good of the whole on enlightened principles, can best be distinguished from those vulgar souls, whose narrow optics can see but the little circle of selfish concerns. Unhappily such souls are but too common, and but too often fill the seats of dignity and authority. A firm, wise, manly, system of federal government, is what I once wished, what I now hope, what I dare not expect, but what I will not despair of.

Your description of the mode of collecting taxes, contains an epitome of the follies, which prevail from one end of the continent to the other. There is no end to the absurdity of human nature; mankind seem to delight in contrast and paradox, for surely nothing else could sanctify (during a contest on the precise point of being taxed by our own consent) the arbitrary police, which on this subject, almost universally prevails. God grant you success in your views to amend it. Your ideas on the subject are perfectly correspondent to my own. As to your doubt on the mode of collecting it, I would wish to obviate it by the observation, that the further off we can remove the appointment of collectors from popular influence, the more effectual will be their operations; and the more they conform to the views of Congress, the more effectually will they enable that body to provide for general defence. In political life, the creature will generally pay some deference to the creator. The having a double set of officers is indeed an evil, but a good thing is not always to be rejected because of that necessary portion of evil, which in the course of things must be attached to it. Neither is this a necessary evil, for with a proper federal government, army, navy, and revenue, the civil administration might well be provided for, by a stamp act, roads by turnpikes, and navigation by tolls.

The account you give of the State is by no means flattering; and the more true it appears, the more concern it gives me. The loan I hope will be completed, and I wish the _whole_ amount of the tax may be collected. The forage plan I have disagreed to, and enclose for your information, the copy of my letter on that subject to the Quarter Master General. I believe your State is exhausted, but perhaps even you consider it as being more so than it is. The certificates, which now form a useless load, will (if the United States adopt, and the several States agree, to a plan now before Congress) become valuable property. This will afford great relief. The scarcity of money also may be immediately relieved, if the love of popular favor would so far give way to the love of public good, as to enforce plentiful taxation. The necessity of having money, will always produce money. The desire of having it produces, you see, so much as is necessary to gratify the desire of enjoying foreign luxuries. Turn the stream, which now flows in the channels of commerce, to those of revenue, and the business is completed. Unfortunately for us, this is an operation which requires fortitude, perseverance, virtue, and which cannot be effected by the weak or wicked minds, who have only partial, private, or interested views.

When I consider the exertions, which the country has already made, under striking disadvantages, and with astonishing prodigality of national wealth, by pernicious modes of applying it, I persuade myself that regular consistent efforts would produce much more than you suppose.

For your accurate, clear, and comprehensive description of general and particular characters, sentiments, and opinions, accept my sincere thanks and warm approbation. They do equal justice to your talents, both for observation and description.

Mr Duer's attention to the business of his contract, is very pleasing to me, and honorable to himself. I am very sorry that he should lose by it, but to avoid this as much as possible, I am determined to support him by liberal advances so soon as it shall be in my power to do it.

I pray you to believe me to be yours, &c.

ROBERT MORRIS.

* * * * *

TO GEORGE WASHINGTON.

Office of Finance, August 20th, 1782.

Sir,

I have now to address you on a subject, which cannot be more painful to you than it is to me. I am determined to act justly, and therefore when I find that I shall be unable to pay the contractors, I will give them due notice in season. This period is fast approaching, and unless the States make infinitely greater exertions than they have hitherto done, it must soon arrive. To comprise this matter in a short compass, your army is fed at a dollar for nine rations, or three dollars and a third per month to feed a soldier. Twentyfour thousand rations per day would therefore amount to eighty thousand dollars monthly, which is more than had been paid by all the States on the 1st instant. The object of this letter, Sir, is to request that you will consider how your army is to be subsisted or kept together, if I am obliged to dissolve the contracts. I pray that Heaven may direct your mind to some mode by which we may be yet saved. I have done all that I could, and given repeated warnings of the consequences, but it is like preaching to the dead. Every exertion I am capable of shall be continued while there is the least glimmering of hope.

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

ROBERT MORRIS.[10]

[10] _August 29th._ Mr Duane, Arthur Lee, Abraham Clark, and
Samuel Osgood, a Committee of Inquiry, came this morning and
proceeded in their business. They desired me to make out an
account of all the moneys that have come into my hands, and those
which I have paid. They asked the reasons for employing Mr
Swanwick, and proceeded in other parts of their inquiry until the
hour for going to Congress arrived. They inquired into the reasons
for appointing Receivers of Continental taxes in each State, and
Mr Clark expressed doubts of my authority to make those
appointments. I therefore produced the Acts of Congress of the 3d
of November, 1781, which satisfied him on that point. I informed
the Committee, that my reasons for making new appointments, in
preference to employing the Loan officers, were first, the Loan
officers have not settled their accounts with the United States,
and some of them have long accounts depending; secondly, although
some of them may be fit, all are not; thirdly, had the money paid
by the States, for the current expenses of the year, been put into
the hands of the Loan officers, the people entitled to the
interest on Loan Office certificates, issued by these gentlemen,
would have been very clamorous for payment. They would not have
entered into, or admitted the distinction of moneys granted for
revenue or for current expenses of the year. _Diary._

* * * * *

TO GEORGE WASHINGTON.

Office of Finance, August 30th, 1782.

Sir,

My letter of the 29th, which is enclosed, I have written for two reasons; one that you may be informed and I may stand justified in every respect, should the event take place; the other, which is the principal one, that you may found a warm application on it to the States. You will, I hope, keep this entirely to yourself. You will see, that I have not intrusted a view of it to my Secretary, or to any of the clerks. The effect of your application must depend on raising a very general alarm.

I have the honor to be, &c.

ROBERT MORRIS.[11]

[11] _September 3d._ This day I requested a Committee of Congress
for a conference. Mr Rutledge, Mr Osgood, and Mr Madison, were
appointed, and I proposed to them to present the seventyfour gun
ship, America, to his Most Christian Majesty; who has lately lost
_Le Magnifique_, a seventyfour gun ship, in the harbor of Boston.
The Committee were unanimously of opinion with me, that this
unfortunate incident afforded Congress an opportunity of showing a
mark of the sincerity of their attachment to their ally, by
enabling his Minister to continue the force of his fleet at a time
when it could not otherwise be done. Besides the propriety which
there is in showing this mark of attachment and gratitude to his
Most Christian Majesty, I have several other strong and pointed
reasons, which induced me to propose and always to support this
measure. The want of money in our treasury to fit, equip, and man
this ship, is amongst the number. _Diary._

* * * * *

TO THE PRESIDENT OF CONGRESS.

Office of Finance, September 9th, 1782.

Sir,

I did myself the honor to propose, in my letter of the 30th of July last, the borrowing or four millions of dollars for the service of the ensuing year. It always gives me pain to repeat any application to Congress, because it is my duty to suppose they pay every proper attention to those things, which are submitted to their consideration. But I must take the liberty, on this occasion to observe, that the many engagements I have been compelled to make for the purpose of supporting the public service to the present moment, will all fall due between this and the first of next year.

My prospects of relief from the revenues of America are slender indeed. As a safe opportunity for Europe will offer in a few days, Congress will be pleased to consider that the moments are precious. They will consider, that I cannot act in this business without their authority, and that it will take some days to prepare the necessary despatches, even after that authority is given. I hope, Sir, that I shall not be understood as desiring to precipitate any acts or resolutions. We are fast approaching to the winter. If everything could be ready by the 15th of this month, we could not reckon on the arrival of despatches at Paris before the beginning of November. A month is but a short period to transact this important business, and this would not leave another month for the winter's passage back.

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

ROBERT MORRIS.

* * * * *

TO GEORGE WASHINGTON.

Office of Finance, September 9th, 1782.

Dear Sir,

The dates of the enclosed letters will show you my extreme reluctance to wound your mind with the anxieties which distress my own. At the time they were written, I was sore pressed on every quarter; but a gleam of hope broke in upon me, and induced me to bear up still longer against the torrent of demands, which was rushing upon me. These would long since have overwhelmed me, had I been supported only by the revenues drawn from the States.

At length, however, my other resources, which are nearly exhausted, have become useless by the total stagnation of trade, owing to the expectations of peace. There is, therefore, no other dependence left but the taxes, and, unless these become immediately productive of funds sufficient to feed our troops, I need not describe the consequences. Already I am in arrears, in spite of my efforts. I am determined, however, to continue those efforts to the last moment, but at present, I really know not which way to turn myself.

With the most sincere esteem, &c.

ROBERT MORRIS.

* * * * *

TO MESSRS WILLINK & CO., AMSTERDAM.

Office of Finance, September 24th, 1782.

Gentlemen,

Presuming, from the letters of yourself and of Mr Adams, that the loan opened on account of the United States of America under your auspices is filled, I do myself the honor to enclose you sundry acts of Congress, by which you will see that the amount is subject to my disposal. Whatever measures I may take, you will from time to time receive due notice of, unless the miscarriage of letters by the accidents to which they are at present subjected should prevent.

I have now in view a money negotiation, which may or may not take place according to circumstances, but which will probably be accomplished, to the amount of from one to two millions of florins. If it should be effected, Messrs Le Couteulx & Co. bankers at Paris, will have occasion to draw on you. I am now, therefore, to desire that the bills drawn by that house to whatever amount, be punctually honored and paid on account of the United States. It is in a reliance on this that I shall take my measures, and a failure of payment would be attended with the worst consequences.

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

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO., PARIS.

Office of Finance, September 24th, 1782.

Gentlemen,

Enclosed you have letters of this date to the house of Messrs Le Couteulx, at Cadiz, and to Wilhelm and Jan Willink, Nicholas and Jacob Van Staphorst, and De la Land and Fynjé, at Amsterdam. These two letters, which I am to request that you will forward, are left open for your perusal, and will explain to you the object which I now have in view.

The United States having moneys in Holland, which are very necessary for the public service here, I have deemed it best to bring them through the Havana, for the following reasons. First, bills of exchange cannot be negotiated here to the necessary amount, and are even then negotiated at the rate of thirteen per cent discount. Secondly, as it is, therefore, necessary to import money, the risk is less from the Havana than from Europe. Thirdly, it might not be agreeable to the prejudices of many to draw from Europe their circulating coin; and, fourthly, I expect that a considerable gain will be made on the negotiations. Thus, for instance, to take it in its greatest extent, I am informed that bills on Cadiz, at thirty days' sight, sell at the Havana for an advance of eight per cent; and that bills on Paris sell at Cadiz, for an advance of nine per cent; and there is also an advance on bills drawn from Paris on Amsterdam; to which may be added, that a considerable time is also gained in these various negotiations; and, therefore, if any benefit can be derived to the United States from that circumstance, you will govern yourself accordingly. In this, as well as in every other circumstance relating to the business, I have on you, Gentlemen, the most perfect reliance.

I think it will be best for you to know immediately of the gentlemen in Amsterdam, whether they will answer your drafts to the amount; because, if they should raise obstacles in the way, those may be removed in season from this country, provided an early notice be transmitted; for I expect you will receive this letter by the time Mr ---- reaches the Havana, if not before; and I do not suppose that his bills can reach Cadiz in less than two months; and, of course, at one usance only (and they shall, if that can be done without loss, be drawn at two usances) they will not be payable until three months, and then if time is necessary, you will direct the house in Cadiz to draw at two usances more, which will bring the business to between five and six months from your receipt of my letters. At any rate, it will not do, that Mr ----'s bills be protested; I must rely on you to prevent an accident, which would be attended with such fatal consequences, and shall take measures to put you in a capacity to answer them seasonably.

With perfect respect, &c.

ROBERT MORRIS.

_P. S._ You will observe, that there is in the foregoing letter, a blank for the name of the person who is to be employed in this business. The reason is, that the gentleman I spoke to on the subject, is prevented by the circumstances of his family from going to Havana. I shall write to you further on the subject when I shall have taken other arrangements.

R. M.

* * * * *

TO B. FRANKLIN, JOHN ADAMS, AND JOHN JAY.

Office of Finance, September 25th, 1782.

Sir,

I do myself the honor to enclose for your perusal, Acts of Congress of the 27th of November and 3d of December, 1781, and the 14th and 3d instant. In consequence I have to request, that all the bills hitherto drawn by authority of Congress be paid and the accounts of those transactions closed. After this is done, and I hope and believe that while I am writing this letter it may have been already accomplished, you will be freed from the torment and perplexity of attending to money matters.

I am persuaded that this consideration will be highly pleasing to you, as such things must necessarily interfere with your more important attention. I have long since requested the Secretary of Foreign Affairs to desire you would appoint an agent or attorney here, to receive and remit your salary, which will be paid quarterly; in the meantime it is paid to him for your use. As to any contingent expenses which may arise, I shall readily make the necessary advances upon Mr Livingston's application. These arrangements will, I hope, be both useful and agreeable to you.

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

ROBERT MORRIS.

* * * * *

TO JOHN ADAMS.

Office of Finance, September 27th, 1782.

Sir,

I do myself the pleasure to congratulate you on the success of your patriotic labors in Holland. The general tribute paid to your abilities on this occasion, will so well dispense with the addition of my feeble voice, that I shall spare your delicacy the pain of expressing my sentiments.

The enclosed resolutions and copies of letters will convey to you so fully the views of Congress, and explain so clearly my conceptions on the subject, that very little need be added. If the application to France should fail of success, which I cannot permit myself to believe, you will then have a new opportunity of showing the influence you have acquired over the minds of men in the country where you reside, and of exerting it in the manner most beneficial to our country.

Before I conclude this letter, I must congratulate your Excellency on the success of the loan you have already opened, which I consider as being by this time completed.

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

ROBERT MORRIS.

* * * * *

TO MESSRS LE COUTEULX & CO.

Office of Finance, September 27th, 1782.

Gentlemen,

I write to Dr Franklin under this date to place in your hands five hundred thousand dollars, as soon as he possibly can. I hope it may be effected speedily. My object in making this deposit is, that you may remit to the amount of that sum to the Havana, provided bills on that place can be purchased at a discount of twentyfive per cent; by which I mean, that seventyfive dollars in Europe should purchase one hundred dollars in Havana. If the negotiations cannot be effected upon those terms, you will retain the money in your hands subject to my after direction. I suppose that those, or better terms, can be obtained for the following reasons.

The person who has money in the Havana, by selling bills will immediately possess himself of the amount for which they are sold; and therefore, allowing time for the bills to go over and be presented, with the thirty days of payment, and the further time, which would be necessary to remit that money from the Havana to Cadiz, and he would gain from eight to twelve months' time, which is itself important; but in addition to this, there is the duty of nine per cent on exporting cash from the Havana; a freight, which is I suppose considerable; a risk which is very great, and perhaps a farther duty on the arrival at Cadiz. To which may be added, the advance on bills drawn at Cadiz on the different parts of Europe.

If you can accomplish the negotiation on the terms I have mentioned, you will then remit the bills to a good house in the Havana, to receive the money and hold it subject to my order; and you will, if you can, fix the terms on which that House are to do the business. Whether anything of this sort takes place or not, I am to request that you will give me every information on the subject, which you can acquire.

I am, Gentlemen, your most obedient and humble servant,

ROBERT MORRIS.

* * * * *

TO B. FRANKLIN.

Office of Finance, September 27th, 1782.

Sir,