CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, May 16th, 1782.
Sir,
I have heretofore taken occasion to observe, that the former expenditures of the United States were at a medium rate of twenty millions of dollars annually, for the support of the war. At the present moment, while laboring under a large debt, only eight millions have been asked for. It is evident, therefore, that the sum now required is as little as can possibly answer the purpose. I venture to say that it is not enough. According to the estimates for the year 1782, which were laid before Congress by the late Board of War, the present establishment of the army would require for pay, exclusive of the half pay, near three millions and a half, for rations near two millions and a half, for clothing, about twelve hundred thousand, for forage above three hundred thousand, for the Quarter Master"s department, (exclusive of articles on hand) above eight hundred thousand, for military stores (exclusive of articles on hand) near two hundred thousand, for the hospitals (exclusive of medicine and also of sundry stores on hand) above one hundred thousand.
If to all these be added the sum of four hundred thousand for the Departments of the Pay Office, Commissary of Prisoners, and the various other contingencies of service, which naturally and necessarily arise, without mentioning the losses, which happen in war, here will be an aggregate amount of nine millions, and in this sum nothing is estimated for the interest of our debts, for the Marine, and for the Civil List, and the Department of Foreign Affairs.
Of the various expenditures, much was to be provided immediately. The heavy article of clothing, for instance, was indispensable. Many things were to be provided early, in order that the army might operate, and the subsistence is to be paid for regularly and constantly. Yet the States have not been asked for any money before the 1st day of April; and I appeal to them all, whether the supplies of money they have afforded me for the last year were such as would enable me to provide for the present.
A three months" expenditure was permitted by Congress to elapse, before the first payment of two millions was asked from the States; but what have they done? While I write this letter near two months more are gone forever, and a dishonorable neglect endangers our country. Little local objects have postponed those measures, which are essential to our existence, so that the most fatal consequences are now suspended but by a thread. Should they fall on our heads, this solemn protest shall point to the real cause of our calamities. I write, Sir, to apprize you of the public danger, and to tell you I shall endeavor to fulfil engagements, which I have entered into already, that I may quit my station like an honest man. But I will make no new engagements, so that the public service must necessarily stand still. What the consequences may be I know not, but the fault is in the States. They have not complied with the requisitions of Congress. They have not enabled me to go on. They have not given me one shilling for the service of the year 1782, excepting only the State of New Jersey, from which I received five thousand five hundred dollars, a few days ago, and this is all that has come to my hands out of two millions, which were asked for.
Now, Sir, should the army disband, and should scenes of distress and horror be reiterated and acc.u.mulated, I again repeat, that I am guiltless; the fault is in the States; they have been deaf to the calls of Congress, to the clamors of the public creditors, to the just demands of a suffering army, and even to the reproaches of the enemy, who scoffingly declare, that the American army is fed, paid, and clothed by France. That a.s.sertion, so dishonorable to America, was true, but the kindness of France has its bounds, and our army, unfed, unpaid, and unclothed, will have to subsist itself, or disband itself.
This language may appear extraordinary, but at a future day, when my transactions shall be laid bare to public view, it will be justified.
This language may not consist with the ideas of dignity, which some men entertain. But, Sir, dignity is in duty, and in virtue, not in the sound of swelling expressions Congress may dismiss their servants, and the States may dismiss their Congress, but it is by rect.i.tude alone, that man can be respectable. I have early declared our situation, as far as prudence would permit, and I am now compelled to transgress the bounds of prudence, by being forced to declare, that unless vigorous exertions are made to put money into the treasury, we must be ruined.
I have borne with delays and disappointments as long as I could, and nothing but hard necessity would have wrung from me the sentiments, which I have now expressed.
I have the honor to be, &c.
ROBERT MORRIS.
TO THE PRESIDENT OF CONGRESS.
Office of Finance, May 17th, 1782.
Sir,
I do myself the honor to enclose to your Excellency the copy of a circular letter, which I have written to the several States. The situation which I find myself is extremely delicate. The habitual inattention of the States has reduced us to the brink of ruin, and I cannot see a probability of relief from any of them. I rather perceive a disposition to take money from the public treasury, than to place any in it. A variety of causes, which Congress are, I presume acquainted with, prevents the collection of taxes, and delays the payment of them, even after they are collected. In many States they are not laid. I must not conceal from Congress my apprehensions, that the idle hopes entertained from the changes of administration in Britain will increase that negligence, which is but too prevalent throughout the United States.
I might add many reasons, why a call should be made in the present critical moment, and it is evident, that such a call should be couched in terms so pressing, as to stimulate if possible their sluggishness into exertion. But on the other hand, it is evident that if a faithful representation of our distressed circ.u.mstances should fall into improper hands, it would be productive of the most dangerous consequences. And when the number of our internal enemies, and the designs of our external ones are considered, there can be little doubt, that such a letter would be handed about soon after its arrival for the illicit purposes of both. At the same time, however, it must be considered, that if any fatal consequences should ensue from the continued negligence of the States, attempts will be made to justify it on the principle, that they were not seasonably apprized of their danger.
I am sure I need not take up more of your time, Sir, in showing the difficulties with which on the present occasion I am surrounded. Urged by them I must entreat the opinion of Congress, whether the letter in question be retained or transmitted. I take the liberty further to remark, Sir, that the declaration contained in it, purporting any intention not to make new engagements, is short of what I am under the necessity of doing, for the public departments are now absolutely at a stand for the want of money, and many things already commenced I must desist from. This cannot be wondered at, when it is considered that near five months of the present year have elapsed without my having received anything on account of its expenditures, except the trifling sum of five thousand five hundred dollars mentioned in the enclosed letter, and that sum, calculating our expenses at eight millions annually, is about _one fourth of what is necessary to support us for a single day_.
I have the honor to be, &c.
ROBERT MORRIS
TO B. FRANKLIN.
Office of Finance, May 17th, 1782
Sir,
In a letter which I had the honor to write to your Excellency on the 17th of last month, I mentioned the communications of the Minister of France here, by which I was empowered to draw to the amount of six millions in monthly instalments of half a million each. He has since informed me, that no moneys will be paid by his Court except on my draft. It is in consequence of this, that I have drawn the bills contained in the enclosed letter to Mr Grand, which is left open for your perusal. Your Excellency will be pleased to arrange this matter with Mr Grand, so as best to answer the purposes intended. You will also be pleased, Sir, to pay over to Mr Grand on my account such moneys belonging to the United States as may be in Europe, distinct from those to be advanced by the Court for the current year.
I am extremely desirous of having a state of these matters so as to know what dependence can be made on the funds, which are at our command. You would, therefore, confer upon me a very particular obligation by transmitting the best statement in your power. I mentioned to your Excellency in a former letter, that I would write to you on the subject of your salary, more particularly than I then did, but I have since spoken and written to Mr Livingston with relation to those matters, and he will, I expect, write to you and to all our foreign Ministers very fully.
We have not yet heard anything of the Alliance, and therefore conclude, that she must have been delayed in Europe. I hope this may have been the case, for if she sailed on the 1st of March, according to my orders, she must have met with some unfortunate accident. I hope soon to hear from your Excellency. Indeed I persuade myself, that in the very critical situation of affairs at present, we cannot be long without receiving very important intelligence.
I have the honor to be, &c.
ROBERT MORRIS.
TO MR GRAND.
Office of Finance, May 17th, 1782.
Sir,
In my letters of the 28th of March, and 8th of April, I informed you of my drafts on you to the amount of five hundred thousand livres. I have since that time drawn sundry other bills, all of which you have been duly advised of, or will be so by this conveyance.
I am now to inform you, that his Excellency, the Minister of France, has given me a.s.surances on the part of his Court, that five hundred thousand livres per month, during the year 1782, will be paid on my drafts, making in the whole six millions. He has also suggested to me the expedient of drawing twelve sets of exchange on Dr Franklin, our Minister Plenipotentiary, in favor of my banker, so that the money may be in his hands monthly at my order. In consequence therof, I now enclose to you twelve bills of exchange on Dr Franklin, all at thirty days" sight, and each for half a million. When these bills arrive you will present so many of them for acceptance, as that at the end of the thirty days the amount shall be equal to the monthly payments above mentioned. As for instance, if these bills should arrive in July, you will present seven of them for acceptance, because by the time the thirty days have elapsed there will be due so many of those monthly payments. But in this, as well as in other matters of arrangement with the Court, you will take the advice of Dr Franklin and govern yourself accordingly.
The several bills which I draw on you I will regularly inform you of.
After the first month has elapsed you will present another bill for acceptance, and so on monthly, presenting each month a bill. I write also by this conveyance to Dr Franklin to pay on my account all the moneys belonging to the United States in Europe, which may be in his possession.
I wrote to Dr Franklin on the 17th of April to inform you, that I should draw on Messrs Fizeau, Grand & Co. at Amsterdam, and on Messrs Harrison & Co. at Cadiz, desiring that you would direct those houses to honor my bills, and take their reimburs.e.m.e.nt on you, which I now confirm. I expect that the five hundred thousand livres which are mentioned in my letters of the 28th of March, and 8th of April, will be paid out of moneys, which were already in Europe; and indeed, that still farther sums were there belonging to the United States, besides the monthly payments to be made by the Court as above mentioned. At any rate you will be in cash to pay all the bills which I have drawn or shall draw. You will take care to transmit me a state of your accounts by every opportunity that I may be thereby directed in my operations.
I have the honor to be, &c.
ROBERT MORRIS.
TO MR GRAND.
Office of Finance, May 18th, 1782.
Sir,
Our enemies being at length convinced by fatal experience, that it is in vain to effect the conquest of America, have now changed the mode of attack, and strike at our commerce and our resources. I have no doubt, but that eventually they will be foiled in this, as in every other attempt they have made, but in the interim between their first effort and the period which must elapse, in preparations to obviate this plan, we have suffered and must suffer considerably.
The commerce of this country has sustained no severer blow than has been hitherto felt, and the effects of it materially influence my operations. The merchants deprived of their property cannot command money, and of consequence cannot pay bills. I am, therefore, unable to command by drafts the money in your hands. My bills do not yet amount to a million of livres, and will not I believe exceed that sum when this letter goes away. These bills will not come to you before the month of July, and the greater part will not be payable until the end of September, and even later; but you will be possessed of three millions and a half by the first of July, even if you shall have received nothing from Dr Franklin on the old accounts.
I am therefore to request that you will make three shipments of one hundred thousand crowns each, or six hundred thousand livres, making in the whole eighteen hundred thousand livres. I wish it to be sent by three different conveyances, for the sake of greater safety, unless some very important convoy should offer, in which case I desire an immediate shipment of twelve hundred thousand livres. I wish also, that the money be invested if possible in gold, because four crowns are worth here only four hundred pence, but a louis is worth four hundred and fourteen pence, being a difference of three and a half per cent. But that you may know the best mode of investing it, I have to inform you, that English guineas are worth four hundred and twenty pence, half johannas seven hundred and twenty pence, moidores five hundred and forty pence, and Spanish pistoles three hundred and thirtysix pence.
I shall leave this letter open for the inspection of Dr Franklin, to whom I shall enclose it, and I shall request him to obtain for and communicate to you such information from the Court as may be necessary for your direction in this business. I wish that the shipments of money may if possible be on board of the same vessels in which the money shall be sent for the use of the French army or navy here. I wrote to you on the 3d of December last, requesting you to pay to Messrs Couteulx & Co. for account of John Ross two hundred thousand livres, and for account of William Bingham one hundred thousand livres, to John Holker for account of John Holker fils; conceiving that you would be in cash for the purpose, from the loan opened in Holland for our use.
I hope before this reaches you, that those sums will have been paid; and you will observe it is my wish, that as well those as the bills mentioned in my letters of the 9th and 28th of March, should be paid out of that loan, but if that cannot be done, you will then make payment from any other moneys which may be in your hands.