The Diplomatic Correspondence of the American Revolution Volume XII Part 33

TO B. FRANKLIN.

Office of Finance, May 12th, 1783.

Sir,

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

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

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

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

ROBERT MORRIS.

TO A COMMITTEE OF CONGRESS.

Office of Finance, May 15th, 1783.

Gentlemen,

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

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

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

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

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

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

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

But when I speak of disbanding the army, I beg to be understood as meaning to reserve a sufficient garrison for West Point; and on this subject I pray to be indulged in a view of our political and military situation as far as relates to this capital object of my department.

And first, as to our political situation, I conceive that we are at peace. It is true, that the definitive treaty is not, that we know of, completed; but it is equally true, that all the other belligerent powers have been disarming for mouths past, and I presume they are at least as well acquainted with the state of things as we are. To express doubts of the sincerity of Britain on this subject is, I know, a fas.h.i.+onable, but in my opinion a very foolish language. We have the best evidence of their sincerity, which the nature of things will admit, for we know they are unable to carry on the war, and we see and feel, that they are pa.s.sing every act, and doing everything in their power to conciliate our affections. Expressions of doubts as to their sincerity, if intended to foster enmity against them, will fail of the effect and produce the direct contrary, for everybody will soon learn to consider them as unjustly suspected, and their Ministers will take care to inculcate and enforce the sentiment.

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

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

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

I have the honor to be, &c.

ROBERT MORRIS.[16]

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

TO MAJOR GENERAL GREENE.

Office of Finance, May 16th, 1783.

Sir,

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

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

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

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

I felt their distresses as sincerely as any man could do, but it was impossible to afford relief.

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

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

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, May 26th, 1783.

Sir,

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

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

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

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

ROBERT MORRIS.

TO B. FRANKLIN.

Office of Finance, May 26th, 1783.