The Diplomatic Correspondence of the American Revolution Volume XI Part 61

TO DONALDSON YEATES.

Office of Finance, August 28th, 1781.

Sir,

The express which carries this letter will bring you one from Colonel Miles, on the same subject. It is necessary, that vessels be procured as speedily us possible, to transport a body of from six to seven thousand men from the head of the Elk to Virginia, with their necessary apparatus. You will, therefore, collect them at the head of the Elk, on the 5th of September, and us soon after as may be, engage them by the day on the cheapest terms you can, to be paid in hard money, and obtain as long a credit as possible. There will be little or no risk of the vessels, and therefore you may insure them to the owners, if that will tend to obtain them either sooner or cheaper. The express has letters to William Smith and Matthew Ridley, of Baltimore, on this subject, and they will give you their advice and a.s.sistance, as will some other gentlemen, to whom I have written, should either be necessary. He has also letters to the Governor of Maryland, who will I am confident give every aid, which the Executive authority of the State can afford. You will therefore either apply to the Governor or not, as circ.u.mstances shall require.

Any engagements you enter into on this account, shall be fulfilled; but I must again request, that you will be as economical as the nature of the business will permit. I expect and rely on the exertion of your utmost industry and attention and am, Sir, very respectfully, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Philadelphia, August 28th, 1781.

Sir,

Herewith I send you triplicates of my letters of the 13th and 14th of July last, and duplicates of my letters of the 19th and 21st of July last. I have not yet executed the plan mentioned in mine of the 21st of July, of drawing bills on you, for reasons, which it is not necessary to enumerate at present.

Since my letter to you of the 8th of June last, I have found it necessary to apply to the Minister of his Most Christian Majesty in this place, to direct another sum of five hundred thousand livres to be deposited with Messrs Le Couteulx &. Co., and I am now drawing bills for that sum, wherefore I must pray your Excellency to take measures, that they be put in cash to answer my drafts. Although I have no doubt that this will be done on the Chevalier de la Luzerne's application, yet as his letters may miscarry, or other unavoidable misfortune happen, I take this additional precaution, because it is of the utmost importance to the United States, that these bills be duly honored.

The last advices from Europe inform us of M. Necker's resignation and removal, which occasions much speculation, as to the causes which produced this event. I should be glad to hear from you upon that subject.

We learn from Boston the arrival of the frigate Magicienne, with a large store s.h.i.+p laden with clothing, &c. for the United States; another store s.h.i.+p put back to Corunna, as is said, having been dismasted in a gale of wind. If this be so, it is a loss which will be more easily supplied than that of the Lafayette, which s.h.i.+p we are informed was taken and carried into England.

Colonel Laurens's embarkation on board a frigate for this place, with money, is also announced, and I hope she will speedily arrive. The Boston account of the 16th of August, mentions the arrival of the Magicienne in fifty days. If Colonel Laurens had then sailed, he must now have been out sixtytwo days, which is a very long period for a single frigate to be engaged in that voyage. If that frigate arrives safe, with five hundred thousand dollars, which is, as I am informed, on board of her, it will relieve me from many very great difficulties, which I have now to struggle with, and give a much better appearance to our affairs, as it will enable us to operate with far more vigor and activity.

It is now a very long time since we have had any tidings of Mr Adams.

We have indeed been informed, though not from himself, that he had opened a loan for a million of florins; but we are much in the dark as to the success of it, as well as many other particulars relative to his situation, which would be very interesting.

_September 7th, 1781._ Since writing the above letter, Colonel Laurens has come to this city from Boston, at which place he arrived in the Resolve, with the two store s.h.i.+ps under her convoy, after a pa.s.sage uncommonly tedious. It is certainly unnecessary to mention how great pleasure we have received from this occurrence.

Another equally pleasing, is the arrival of the Count de Gra.s.se in the Chesapeake Bay, on the 30th of August, with twentyeight sail of the line, viz. one of one hundred and ten guns, three of eightyfour guns, nineteen of seventyfour guns, four of sixtyfour guns, and one of fifty guns. The Count de Barras sailed from Rhode Island on the 24th, so that probably he has before this made a junction with the Count de Gra.s.se, although he had not on the 31st of August. A detachment of about seven thousand men is on the way to Virginia, of which about two thousand and five hundred were at the head of the Elk. As many more must have arrived there this evening, and the remainder tomorrow.

There are landed from the fleet, three thousand men, and we are told these will receive an addition of one thousand and five hundred marines, besides the army under the command of the Marquis de Lafayette, which was before in Virginia, and consists of about five thousand, including the militia. Lord Cornwallis was entrenched at York, in Virginia, with five thousand men. General Was.h.i.+ngton takes the command of the southern army in person. The fleet under the Count de Gra.s.se took on its way a packet from Charleston to Great Britain, on board of which was Lord Rawdon. From this combination of circ.u.mstances, you will perceive, that we have reason to flatter ourselves with the expectation of pleasing occurrences.

With the greatest respect, &c.

ROBERT MORRIS.

TO THE PRESIDENT OF CONGRESS.

Office of Finance, August 28th, 1781.

Sir,

My circular letter to the Governors, of the 25th of July, a copy whereof was sent to Congress on the 6th of August, contains a solemn a.s.surance, that all the accounts of the several States with the United States should be speedily liquidated, if I could possibly effect it, and that my efforts for that purpose should be unceasing. If after this declaration, I could possibly have forgotten it, the reference made to me, on the 23d instant, of two letters from the State of Ma.s.sachusetts and a report on them of the 14th instant, would have called for an immediate attention.

I have thought much on this subject and feel very anxious about it.

The settlement of those accounts is of the utmost importance, for, until it be completed, the States will persuade themselves into an opinion that their exertions are unequal. Each will believe in the superiority of its own efforts. Each claim the merit of having done more than others; and each continue desirous of relaxing to an equality of the supposed deficiencies of its neighbors. Hence it follows, that every day they become more and more negligent, a dangerous supineness pervades the continent, and recommendations of Congress, capable in the year 1775 of rousing all America to action, now lie neglected.

The settlement of former accounts being considered as a thing forgotten, men, naturally reasoning from them to those which are now present, conclude, that they also will drop into forgetfulness, and consider everything not furnished as so much saved. The Legislatures will not call forth the resources of their respective const.i.tuents.

The public operations languish. The necessity of purchasing on credit enhances expense. The want of that credit compels to the use of force.

That force offends. The country is daily more plunged in debt, and its revenues more deeply antic.i.p.ated. A situation so dangerous calls for more accurate principles of administration, and these cannot too speedily be adopted. The settlement of accounts is the first step, but it is necessary not only that this settlement be speedy but that it be final; for, if it be not final, the disputes on that subject will have the same baleful influence with those now subsisting. Disunion among the States must follow in the event. Disgust must take place in the moment. The same opprobrious indolence will continue, and in the meantime it is to little purpose, that our country abounds in men and subsistence, if they cannot be called forth for her defence.

All the requisitions of Congress upon the several States contain a provision for future liquidation, when the quotas shall have been ascertained according to the article of confederation. The evil consequences which have followed from this are very evident, and the great advantages which would have resulted from rendering every appointment final and conclusive are equally evident. But those, who, on such ground, build a censure against Congress, ought to consider, that they could not act otherwise, before the confederation was completed.

The changes which have already happened in the affairs of the several States at the different periods of the war are so great, that any apportionment formerly made, however equitable then, would be inequitable now. To determine the quota, therefore, from the present situation, or from any particular moment of the past, must be equally improper. But the quotas must be determined at some period or other.

If we suppose it already done, we shall clearly see how many inconveniences would have been avoided, and how many advantages gained. True it is, that let this final adjustment of the quota take place when it will, difficulties will arise by reason of those changes in the circ.u.mstances of the several States, which have been already mentioned. But those difficulties will be daily increased, and become at length insurmountable. If a final determination of past quotas were made now, it must be arbitrary in some degree; but if we carry our ideas forward to the end of several years, it must be still more arbitrary. To attempt a settlement of accounts subject to after revision, and after determination, is still worse; for it is liable to every objection, which lies against leaving them unsettled, to every difficulty, which could attend the final settlement, and has the additional evil, that by placing the several precise balances immediately before the eyes of Congress, they could take no step, which would not be charged with partiality. I will dwell no longer on this subject, for I trust the United States in Congress will agree with me in one leading position, that after taking a general view of the past, from the commencement of the war to the present moment, a certain rate or quota should be established for each State of the whole expense now incurred, excepting the public debt of the United States. I will presently a.s.sign the reasons for this exception; but that general position which I have advanced is the corner stone; without it nothing can be done, at least such is my conviction. Hence we have the irresistible conclusions,

1st. That while a demand of Congress is the mere request of a loan, instead of a complete appointment of ---- it will not be attended to.

2dly. That while from the unsettled state of public accounts, the individual States are led to suppose that there is a balance in their favor, by superior exertions for which they neither have, nor are like to have any credit, they will relax their efforts.

3dly. That the final settlement of these accounts cannot take place until the quotas be finally adjusted.

4thly. That a settlement of accounts, which is not final will [blank in the ma.n.u.script.]

I feel, therefore, a demonstration, that the past circ.u.mstances and situations of the several States should be candidly reviewed, that the apportionment of all the past expenses should be made now, and that it should be final. Thus, if the whole expense be stated at one hundred, each State would be declared chargeable with a certain number of parts of that hundred, and thus a standard will be established by which to determine the proportion, let the amount be what it may. I know it is not possible to do strict justice, but it is certain that less injustice will be done in this mode than any other, and that without adopting it nothing effectual can be done.

After the proportion is fixed the principles on which to admit the various charges will next come into consideration. I know it will be difficult to draw such a line as will apply to all cases, or which will be absolutely just even in those to which it does apply. Yet neither of these objections ought to prevent Congress from laying down these general rules, which shall on the whole appear to be most equitable. The various requisitions have been made payable at certain days. The value, therefore, of the demand ought to be estimated at the day of payment fixed by each, and the proper mode of doing this would be by the table of depreciation, formed the 29th day of July, 1780, in pursuance of the Act of Congress of the 28th day of June preceding. It is possible that this table is not perfect; but we must remember, that it has been fixed by the authority of the United States, and acted upon. It ought, therefore, to be adhered to; for there is always less of inconvenience and danger in pursuing an established rule, than in the frequent change of rules; because the former is at the worst only a partial, but the latter is a general evil. a.s.suming then this table as a standard, the account of the requisitions previous to the 18th of March, 1780, will stand thus; by the resolutions of the 22d of November, 1777, there is payable as follows.

dollars. ninetieths.

January 1st, 1778, 1,250,000 dollars, equal to 857,222 20

April 1st, 1778, 1,250,000 dollars, equal to 621,423 55

July 1st, 1778, 1,250,000 412,864 52 4

October 1st, 1778, 1,250,000 268,472 2

By the resolutions of January 2d, 1779, and May 21st, 1779, there is payable by January 1st, 1780, 60,000,000 dollars, equal to 2,042,500

By the resolution of October 6th, 1779, payable by February 1st, 1780, 15,000,000, equal to 451,041 60

March 1st, 1780, 15,000,000, equal to 401,450 30 ---------- ---- 5,054,982 39 4

Thus the whole demand made on the States, from the beginning of the war to the 1st of March, 1780, is but little more than five millions of dollars. And yet this demand, moderate as it is, has not been complied with.

By the various resolutions of Congress on the subject of requisitions it is provided, that interest at six per cent shall be charged on the sums due, and allowed on the sums paid. The sums paid do, in no instances, amount to the value of the demand, but each State has an account against the Union for advances, by supplies furnished of various kinds, and by payments made to militia. As no taxes were laid by the States, the sums they expended were procured partly from the continental treasury and partly by the emission of State currency, which tended to depreciate the continental paper, and impede its circulation. A consideration of the mischiefs arising from this circ.u.mstance will much diminish the merit, which is a.s.sumed from those advances. If the State paper had not been issued, the same services might have been performed by an equal sum of continental money, and the general torrent of depreciation would then have swept away those expenditures, which now exist as State charges. From hence it might in strictness be inferred, that the continent should not be charged for the amount of State paper advanced, and that amount be estimated at its value when redeemed by the State, especially as Congress have not only urged the States not to emit money, but even to call in what they had already emitted. But this inference would perhaps be rather too strong. No such idea has been formerly advanced by Congress, and therefore the States, not having had due notice, might conceive the determination at this late period to be inequitable.

On the whole, therefore, it may be proper to estimate the sums paid by them according to the rule already noticed, especially as the method of redeeming the old continental money formerly adopted, will, if pursued, work some degree of equality. For it will create a demand for the old money in those States, which, by the amount of their own emissions, have expelled it from themselves and forced it upon their neighbors. There must, however, be a distinction made in the advances of the several States; much of them has been for the pay and support of the militia, and much of that for the private defence of particular States, and of that again a part has frequently been unnecessary. To go, at this late period, into a close investigation of the subject, is impracticable, and perhaps dangerous. Neither would it answer any valuable purpose. Some general rule, therefore, must be adopted, and propriety seems to require, that credit should be given only for those expenditures on militia, which were previously authorised and required by express resolutions of Congress. With respect to all other articles, there is also to be noted a distinction between those which were furnished by the several States previously to the 22d of November, 1777, when the first demand of money was made, and those made subsequently to that period. I would propose that the former, as also the militia expenses not expressly authorised as above mentioned, should be taken together into one account, and the specie value of the whole estimated. That the amount of both, throughout America, should be apportioned by the same standard with the other expenses. And that the several actual expenditures of each State should be settled and liquidated with its proportional part of the whole, and the several balances carried to their respective debits and credits in the general accounts. These balances should bear interest at six per cent to the 18th of March, 1780. Thus, suppose the whole of those expenses should amount to one million of dollars, and that the State A be held to pay nine, and the State B ten parts out of every hundred; the State A would be accountable for ninety thousand dollars, and the State B for one hundred thousand dollars. And if it should appear, that the former had paid one hundred thousand, and the latter only ninety thousand, the former would be credited, and the latter debited ten thousand dollars, with six per cent interest.

I would propose, that the advances made by the several States, subsequent to the 22d of November, and prior to the 18th of March, 1780, excepting those to militia not authorised, should be estimated as aforesaid, and carried to account regularly upon the advances of money made to each from the Continental treasury, and the apportionment of the several demands made by Congress, in like manner with the moneys paid to their order. And that interest, at six per cent, should be charged or credited upon the several balances, until the 18th of March, 1780.