Philadelphia, July 30th, 1781.
Sir,
I am favored with your Excellency"s letter, of the 27th instant, for which I beg leave to make my acknowledgements.
I must again repeat my regret, that the means devised by the Legislature are unequal to the exigencies of the State. A majority of the a.s.sembly seemed much disposed, at their late meeting, to adopt such measures as were calculated to promote the public service; and therefore it is to be lamented that they were not called, after pa.s.sing the resolutions mentioned in your letter, to appropriate to the disposition of Council, such funds as might have been adequate to the demands they are liable to, if those which remained for that purpose were deemed insufficient. I still hope, however, that the collection of specie in taxes may enable the Council to effect more than present appearances promise; but it is evident, that the money allotted to my disposal is intended for the procuring specific supplies, and paying the balance of the four tenths of the new Continental emission, and that I cannot apply any part of it to other purposes, without crediting the State in account with the United States for such part, at a value equal to gold and silver. I must observe, that the resolutions taken by the a.s.sembly, were consequent upon a report made to them, and communicated to me by order of the House, after it had been made. This report also was by a committee appointed on a message from your Excellency in Council to the a.s.sembly, and it is therefore to be presumed, that it originated in that message. Be that as it may, this at least is certain, that the resolutions of the a.s.sembly were proposed by them, and accepted by me.
With respect to the balances due from the State, I am to observe, that I have a perfect conviction of and reliance on the justice of Congress, who will I am persuaded, make every equitable and proper allowance; and your Excellency will perceive by the circular letters I have had the honor to transmit, my determination to have the accounts of every State with the United States settled on just principles, with all possible expedition.
I am obliged by your communication as to Mr Searle"s mission,[39] and a.s.sure you, that I lament his disappointments, and still more so, that his negotiations have met with any opposition, which to me was quite unexpected. I freely confess, that I did not expect he would be successful; nevertheless, he had my good wishes, and had it been in my power, he should have experienced my readiness to a.s.sist every public measure. I wish his efforts in Holland may be productive, but I have very little expectation of it, being convinced that war with England will create such demand for money, and procure for the lenders such security as will prevent them from listening to American proposals. It was from a belief that your Excellency and the Council would give your support to measures which have the public good for their object, that I sought your confidence, asked your advice, and relied on your a.s.sistance. Entertaining still the same opinion, I shall freely and candidly give my sentiments and opinions on every proposition, which the Council may think proper to refer to me.
The arguments against drawing paper money from the treasury, and throwing it into circulation, had forcibly impressed my mind; and nothing but necessity will compel me to have recourse to it, being very desirous to pay every possible attention to your Excellency"s request.
The determination to proceed with vigor and energy in the collection of taxes, coincides with my judgment, and of course meets with my earnest wishes for success. And your promise to strengthen my hands, and enable me to proceed with cheerfulness, in the great work I have undertaken, excites my warmest grat.i.tude. The delays which attend the collection of taxes, are indeed great and alarming. To remedy them will be highly beneficial, and perhaps the modes suggested in your letter may be effectual. Every proposition of this sort will command my serious attention; and if it shall appear to me productive of the public good, your Excellency may rely that it shall meet with all the support in my power.
I am, respectfully, &c.
ROBERT MORRIS.
FOOTNOTES:
[39] Mission to Holland, for the purpose of borrowing money for the State of Pennsylvania.
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, Dobbs"s Ferry, } August 2d, 1781. }
Dear Sir,
The expectation of the pleasure of seeing you, has prevented me hitherto from making a communication of a most important and interesting nature. But circ.u.mstances will not admit of further delay, and I must trust it to paper. It seems reduced almost to a certainty, that the enemy will reinforce New York with part of their troops from Virginia. In that case, the attempt against the former must be laid aside, as it will not be in our power to draw together a force sufficient to justify the undertaking. The detachment, which the enemy will probably leave in Virginia, seems the next object which ought to engage our attention, and which will be a very practicable one, should we obtain a naval superiority, of which I am not without hopes, and be able to carry a body of men suddenly round by water. The princ.i.p.al difficulty which occurs, is in obtaining transports at the moment they may be wanted; for if they are taken up beforehand, the use for which they are designed cannot be concealed, and the enemy will make arrangements to defeat the plan.
What I would therefore wish you to inform yourself of, without making a direct inquiry, is what number of tons of shipping could be obtained in Philadelphia at any time between this and the 20th of this month, and whether there could also be obtained at the same time, a few deep waisted sloops and schooners, proper to carry horses. The number of double decked vessels which may be wanted, of two hundred tons and upwards, will not exceed thirty. I shall be glad of your answer as soon as possible, because, if it is favorable, I can direct certain preparations to be made in Philadelphia, and at other convenient places, without incurring any suspicions. There certainly can be no danger of not obtaining flour in Philadelphia, and as you seem to have doubts of procuring salt meat there, I shall direct all that which is to the eastward, to be collected at points from whence it may be shipped at the shortest notice.
You will also oblige me by giving me your opinion of the number of vessels which might be obtained at Baltimore, or other places in the Chesapeake, in the time before mentioned, or thereabouts.
I have the honor to be, &c.
GEORGE WASHINGTON.
TO M. DE LA LUZERNE.
Philadelphia, August 2d, 1781.
Sir,
Agreeably to the intimations I made to your Excellency some days ago, it was my intention to have gone to camp yesterday. But an act of Congress of the ---- of July, rendered it necessary for me to hold a conference with a Committee of Congress and the Board of War. This was done; and it was determined, that a member of the Board of War should go with me to camp.
This circ.u.mstance has postponed my journey for a few days. But this is not all; the daily demands on me for money are considerable, and beyond the utmost extent of any funds I can command. The demands for past dues in compensation for past services, and the like, are rejected; but those for the prosecution of the campaign must be attended to. If, in my absence, and from that cause there be any stoppage, or considerable delay, the consequences will be equally injurious to my reputation, and to the public service.
I have before mentioned to you, that my dependence for immediate supplies of money, is on the produce of bills of exchange. I am sorry now to observe, that this dependence fails, and from a cause equally prejudicial to France and to the United States, considered in their collective capacity, though, perhaps, advantageous to individuals.
Your Excellency will remember, that when I was called to the administration, the bills of your army had been selling for two thirds, and even so low as for one half of their value in Europe. What might have been the causes of this, it is not my business to inquire.
The fact is incontestable. Your Excellency observed it, and endeavored to remedy the evil, by holding your own bills at five sixths. But the merchants, who had benefited by the former low rate, could not be brought at once to make so considerable an advance. They expected that the same causes, which had reduced bills to one half, must again bring them down; and, therefore, were disposed to wait the event.
I take the liberty here to observe, that the fluctuation of exchange will naturally strengthen that expectation, and nothing but steady, firm perseverance on the part of the administration, can, or indeed ought, to produce a ready sale on good terms. Bills of exchange are remitted to France in payment for European commodities. If the cost of this remittance is fixed, commerce may so far be established on true commercial principles; otherwise, it is a mere game of hazard.
Sensible of this, the merchant will rather wait, with his money in his chest, the event of public necessity, than invest that money in bills, which may shortly after be bought on better terms by his more cautious neighbor. Hence it follows, that the public will really command less money than they otherwise might. Nor is that all. While the public can command the money of the merchants as fast as it comes into their hands, the servants of the public can spend that money to advantage, and the very expenditure will increase the circulation, so as to bring it again sooner into the hands of the merchant.
Your good sense, Sir, your experience, and the unremitted attention, which I have perceived you pay to every object which can relate to the service of your Sovereign, will render it necessary for me to prosecute any further these observations.
It was from a knowledge of this subject, which many years" constant attention to this business had imparted, that I saw the necessity of raising the value of bills by degrees, and, at the same time, of opposing the most inflexible firmness to every attempt at lowering their price. The bills I drew on Messrs Le Couteulx & Co., at sixty days" sight, were selling readily at four fifths, until the bills for your army were offered at thirty days" sight, and at a lower rate, This, Sir, has checked my sales; and this induces me to mention to you another matter, which will, I foresee, become of great importance.
The concurrence of many venders of bills cannot be more pernicious than the concurrence of many purchasers of supplies. The merchant cannot reason more effectually on public necessities, which he may conjecture, than the husbandman on such wants as he has ocular demonstration of. Melancholy experience has shown, that the contest between our purchasers has been extremely pernicious. What may have been the manner of conducting the business by the agents of the King, I do not positively know; but if I were to credit many tales which I have heard about it, I should believe there had been errors at least.
But I know too well the weakness and impropriety of listening to slanderous reports; and I am very confident, that all possible care will be taken of the interests of his Majesty.
But, Sir, if the supplies for the French army and navy are kept in a distinct channel, I do not believe it will be possible to obtain them so cheap as they might otherwise be had. The ration consisting of one pound of bread, one pound of beef, or three quarters of a pound of pork, one gill of country made rum; and to every hundred rations one quart of salt, two quarts of vinegar; also to every seven hundred rations eight pounds of soap, and three pounds of candles, is now furnished to the United States in this city, at nine pence, with a half penny allowed over for issuing. It may perhaps cost more to furnish rations to the army, perhaps as high as ten pence or eleven pence, Pennsylvania currency.
You I suppose, Sir, can command the necessary accounts to determine what the King now pays for the subsistence of his troops; but as the French and American rations differ, I take the liberty for your further information to mention, that the parts of the ration are estimated as follows; for one pound of bread, two ninetieths of a dollar; for one pound of beef, or three quarters of a pound of pork, four and a quarter ninetieths; for one gill of rum, two ninetieths; for soap, candles, vinegar, and salt, one and a quarter ninetieths for each ration. You will also observe, Sir, that when exchange is at four fifths, one livre tournois is equal to fourteen pence and two fifths of a penny, Pennsylvania money.
I go into these details to enable your Excellency exactly to determine what is most for the interest of France, for I conceive it my duty to give you a confidential state of our affairs, whenever it can promote his Majesty"s service, which I beg leave to a.s.sure you, I have every possible desire to a.s.sist; being convinced, that I can by no other means more fully comply with the wishes of the United States in Congress a.s.sembled.
I beg leave further to observe, that I have no personal wish to negotiate your bills, or to supply your fleets and armies. You must be very sensible that I have already before me a field of business sufficiently large. To extend it, will give me labor and pain, I can derive no advantage from it, nor will anything induce me to engage in it, except it be the prospect of rendering effectual service to the common cause. I make this declaration, not because I conceive it necessary to you, or from an ostentatious display of those motives, which actuate my conduct, but there may be persons to whom I am not so well known as I have the honor of being to your Excellency, and who from ignorance or interest might give to the present intentions the foulest interpretation.
I have been led much further, Sir, than the occasion strictly required, but perhaps my observations may demand your attention; they certainly appeared to me of importance, or I would not have given you the trouble of so long a letter.
I pray you to believe me, with respect, &c.
ROBERT MORRIS.
TO M. DE LA LUZERNE.
Philadelphia, August 4th, 1781.
Sir,
I was honored with your letter of the 3d yesterday evening; I am happy that the sentiments expressed in mine of the 2d, meet with your Excellency"s approbation, and shall readily confide in your direction, to make such use of it as you think proper.
The two questions you ask do not admit of a precise answer. The rate of exchange ought by no means to be under four fifths; indeed I could wish that it were higher, and am not without hopes of raising it; but that must depend on circ.u.mstances, which I cannot command. The sum, which can be furnished to the French army monthly by the sale of bills, admits still less than the other of being precisely ascertained. Let me add, Sir, that the sum, which your army may want, must greatly depend upon the measures, which may be taken to supply them. Government ought to know its expenses precisely, if that were possible. Upon this principle, it will be of use, that your stipulations should be to pay a certain sum in France for every ration; consequently you will want no money here for that purpose.
I wish it were in my power to reply more pointedly, for I am well convinced of the importance of information on that subject. Whenever I am in a condition to know more, I shall readily communicate to you the extent of my inquiries. But while it is my determination to speak to you with that confidence, which your ingenuous conduct has merited, I am equally determined neither to compromise myself nor mislead you, by relying on unfounded conjecture.
I have the honor to be, &c.