Since the receipt of your favor of the 20th of August last, I have received copies of a correspondence between yourself and Colonel Carrington on the subject of specific supplies. The disposition which you have expressed, (in your letter to me, and which indeed breathes through your whole correspondence) to promote those plans of regularity and economy, which Congress have adopted, command my sincere acknowledgements.
I perceive that there is a difference of opinion between the officers of the continent and your State on the receiving specific supplies, which I attribute princ.i.p.ally to some misunderstanding of the matter.
The specific supplies called for by Congress in their several resolutions on that subject are undoubtedly receivable, and ought above eighteen months ago to have been received, on the requisitions which were made at the rates for that purpose mentioned. Such as it may now suit any State to deliver on those requisitions, ought in like manner to be carried to account. But it is very clear, that they cannot be received on account of the subsequent money requisitions.
The several quotas of the eight millions asked for last year, to supply the current expenditures of the year 1782, must be paid in cash, or what is equivalent to it, in my notes or bank notes. I cannot consent to receive anything else. It is by this means alone, that economy can be established, order restored, and confusion, that parent of fraud, too apt to introduce itself into public accounts, banished and destroyed.
I incline to think, that as Congress have determined to have all accounts settled and liquidated to the end of the year 1781, your State would rather choose to attend only to the money requisition, and leave the further delivery of specifics to a liquidation of the old accounts; but if not, there can be no doubt but the specifics will be received, and in such case I will give the gentleman whom I shall appoint as Receiver of taxes in your State, instructions how to dispose of them; but I must again repeat, Sir, that I will not accept one particle of them in abatement of the State quota for the year 1782.
Before I close this letter I must take the liberty to mention a matter, which suggests itself from one of your letters to Colonel Carrington. You tell him that you will continue the prohibition against sending certain things out of the State, in order that he may purchase for the United States on better terms. Now, Sir, while I feel it my duty to require justice for the United States it is equally my duty to take care that equal justice be done to the several States, individually considered, as well as to the individuals which compose them. I am, therefore, to request that all such restrictions be taken off. They sour people"s minds, destroy the spirit of industry, impair by a rapid as well as a certain progress, the public wealth of the State, producing a dearth of the things embargoed, eventually enhance the prices far more than they could have been increased by any other mode. Whereas perfect freedom makes the people easy, happy, rich, and able to pay taxes, and the taxes when paid can be expended amid a plenty of products, and consequently be expended to advantage. I say a plenty of products because I know, that liberty to dispose of them to the greatest advantage will encourage men to raise them and produce a plenty. Your Excellency will, I hope, excuse reflections which arise from an ardent desire to promote the general welfare and happiness of all the inhabitants of the United States.
I have the honor to be, &c.
ROBERT MORRIS.
TO MAJOR GENERAL GREENE.
Office of Finance, October 17th, 1782.
Dear Sir,
I have received your letter of the 1st of September, for which I pray you to accept my acknowledgements. Amid the many distresses and cares, which await every step of my administration, it is a great relief and consolation to have met with the support of those who command (and what is more, who worthily command) the armies of the United States. I have felt, my Dear Sir, your efforts to support my measures, and I know that they have been useful. I wish it were in my power to give to you and to your brave army that full relief, which their conduct, their sufferings, and above all, their patience, have merited.
I had intended to supply their subsistence, and the little contracts in Virginia, from the quota of that State, as the money there collected would have been nearest the spot where it was to be applied.
But I need not tell you how deficient that State has been. The consequence is, that I must endeavor to supply the deficiency from other sources, which I am now doing; but in the precarious state of things at present, there is no reliance to be placed on any measure. I suppose, however, that the evacuation of Carolina will enable you to move northward, with a considerable part of your army; these will, I hope, meet the relief intended. I shall direct a statement of the whole to be made out by the Pay Master General, and do whatever may lay in my power; but as to pay, my inviolable determination is, that the whole army shall equally share whatever is disposed of in that way.
The disposition of the State of North Carolina to pay in specie, is far from being peculiar to that State. Attempts of the same kind have been made by others; and they have invariably been opposed and shall be. There is however a distinction to be taken. You recollect that Congress called for large quotas of specie. I am perfectly persuaded, that no State has fully obeyed that call, but many, and indeed almost all, aver that they have overpaid. The last requisitions have been for money; and if I had not by the publications prevented such a.s.sertions, it would not be surprising, that they should be repeated, even as to the money quotas. Now if the State of North Carolina are desirous of paying in specie, on the requisitions of specie, I shall not have the least objection; but on the requisitions for the service of the current year, I will receive money alone. I make this distinction in such clear and peremptory terms, to avoid all further cavils on the subject. I see that it has already been drawn into some length, and must, therefore, be finally terminated. Besides, under the present appearances there can be little doubt, that specie in North Carolina will be almost as useless as if they were in Otaheite. A copy of my letter to Governor Martin on this subject shall be enclosed to you.
You have in several of your letters, made very just observations on the business of my department, and such as convince me you have turned your attention to it. I have therefore taken the liberty to enclose to you a copy of a letter to Congress, on the subject of a mint, of one on the establishing public credit by funding our debts; and of a third, on the estimates for the ensuing year.
As there is a report, that the enemy got several letters intended for you, it is possible that some or other of those, may be among the number.
I pray you to believe me, with very sincere esteem, your most obedient servant,
ROBERT MORRIS.
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, October 18th, 1782.
Sir,
I take the liberty to enclose to your care, a letter for the Chevalier de la Luzerne, on the subject of expense, which at his request I have incurred, for the purpose of forwarding intelligence of the movements of the enemy at New York, to the Marquis de Vaudreuil.
If our circ.u.mstances would admit, I should be very glad that this expense should be defrayed by the United States; it is infinitely short of the debt, which grat.i.tude imposes on us. I submit therefore to your judgment, whether to deliver the enclosed, or to send forward the money from your own funds, agreeably to the monthly estimate sent to the Minister.
The chain of expresses was inst.i.tuted about the middle of August, and will probably be continued till the sailing of the French fleet from Boston.
I am, &c.
GEORGE WASHINGTON.
CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, October 21st, 1782.
Sir,
I have on many occasions warned the States of the consequences which must follow from delays in supplying the treasury. The expense which attends such delays, has frequently been mentioned, and instances daily occur to show, how much the public burdens are increased by the want of a timely provision. To cite them all would be endless; but there is one of no inconsiderable magnitude, which I think it proper to state for your consideration. I had contracted on the part of the United States for the supply of rations to the main army, at ten pence Pennsylvania currency, and to the garrison at West Point for nine pence half penny, and had agreed to pay, at the commencement of each month for the issues of the preceding month.
These beneficial contracts have been dissolved by my inability to make punctual payments, which rendered the contractors incapable of performing their engagements. After many efforts on my part to supply the want of cash, and on their part to subst.i.tute private credit and promises in the place of ready money, they found it impracticable to proceed further on the moderate terms stated in the contract. Some of them told me so, and asked (what any persons in their situation would have asked) _the promise of indemnification for any damages they might sustain_. And a promise to pay at the end of each month, one half the amount of issues for the preceding month in coin, and three times the remaining half in bills or notes receivable in taxes. They offered if I would agree to these propositions, to go on and supply the army; but declared, that if I would not, they could no longer perform their engagements.
From this moment I was obliged to consider the contract as dissolved; because the dissolution of it appeared inevitable. I had already by entering into the contract, promised on the part of the public, a payment of the whole money due for the monthly issues. A new promise of the half would have given no additional security, and therefore I considered that stipulation as a request, that I should on my private and personal honor, a.s.sure them the public funds would enable me to make such payments. But of this I had no good prospect. The greater part of what little came in from taxes, was the same kind of paper with that which they asked for, being what I had long before issued for other services. If indeed I could have trusted the a.s.surances made to me, I might have given the a.s.surances required by them. But experience had taught me caution, and the event has shown, that if I had made the promise, I should now have been chargeable with falsehood.
I think the contractors were prudent in requiring a promise of indemnification; their situation made it necessary; but it was a promise which I could not make, for although I had reason to confide in their integrity and would have done it in my private capacity, yet as a public officer, I could not. For there would have been no longer certainty of the extent to which their expenditures might have been carried, after it should have become a matter of indifference to their private interest what prices should be given for supplies.
Thus, Sir, I found myself reduced to the alternative of making a new agreement for subsistence of the army and garrison, or of leaving them to subsist themselves by military collection. The latter was to be avoided, if possible, for it would have been the most expensive mode of obtaining supplies, not to mention other circ.u.mstances. The former, therefore, was to be adopted, and I accordingly gave instructions to Mr Cornell, the inspector of the contracts, to consult with the Commander in Chief, and take the necessary arrangements. It could not be expected, that a contract dictated by necessity, could be made on economical terms, and the inability to perform old engagements would necessarily influence the rate of new ones. Besides this, it was indispensably necessary to obtain a longer credit, because otherwise the burden would have been shifted, not removed; and the evil must have returned with equal speed and greater magnitude. Under such unfavorable circ.u.mstances, it was necessary to pay for a credit in order to obtain it. A new contract is made, and the rations issued now, are to be paid for three months hence, at the rate of thirteen pence, Pennsylvania currency, for a ration; which is an advance of about one third upon the former price. The public therefore will pay for this advance of moneys, equal to feeding the army at the rate of thirtythree and one third per cent for three months; or, to make the matter more simple, they must pay for feeding them three months, as much as would have fed them four months. Besides this, the public credit sustains material injury, and damages will be expected by the former contractors.
If, Sir, it should be supposed that this is the only instance of loss sustained from the low state of the treasury, it is a great mistake.
The attempt to establish economical systems is vain, unless we can support them by punctuality. Congress have placed me in a situation where I am exposed in the first instance to claims and demands, but these must come home to the several Legislatures, and eventually to their const.i.tuents. My situation, therefore, makes it a duty to expostulate freely on the circ.u.mstances of my department. I am not to learn that free representations will sometimes give offence, and I know that those will be always most offended, who are most in fault; but I make no apologies for what I have to say. It is necessary that the truth should be known to the people; to our enemies it is known already, and has been for a long time. They hold up to contempt and derision the contrast between resolutions to carry on the war at every expense, and receipts of nothing in some States, and very little in all of them put together. Those who court public favor at the expense of public good, are very apt to inveigh against taxes, and to flatter the indolent and avaricious with the idea that war can be carried on without labor or money. But it is time for the people to distinguish between their flatterers and their friends. Sooner or later the current expense must be paid, and that payment must come from the purses of individuals. If it were made in season, it would be lighter by one half than it is. Congress have called for a certain sum, and that sum paid punctually would have answered the purpose, but they cannot be responsible for the consequences of delay. The expense will necessarily in such case exceed their calculations, and of course further sums must be required.
There are certain arguments, Sir, which ought not to be used if it is possible to avoid them; but which every one invested with public authority should suggest to his own mind, for the government of his own conduct. How long is a nation, who will do nothing for itself, to rely on the aid of others? In a war waged by one country to obtain revenue from another, what is to be expected in case of conquest? How long will one part of a community bear the burdens of the whole? How long will an army undergo want, in the midst of plenty? How long will they endure misery without complaint, injustice without reproach, and wrongs without redress? These are questions which cannot be solved by arithmetical calculation. The moral causes that may procrastinate or precipitate events, are hidden from mortal view. But it is within the bounds of human knowledge to determine that all earthly things have some limits, which it is imprudent to exceed; others, which it is dangerous to exceed, and some, which can never be exceeded. It is possible, that we are near the close of this war, and perhaps we are only in the middle of it. But if the war should continue, we have to blame ourselves; for were those resources called into action, which we really possess, the foreign enemies would soon lose all hope, and abandon their enterprize. The greater injury, therefore, which we sustain, is not from foreign, but from domestic enemies; from those who impede the necessary exertions. I have mentioned one among many instances, to show the consequences of withholding the public revenue, and I take the liberty to observe, that it would be more manly to declare at once, for unlimited submission to British tyranny, than to make specious declarations against it, and yet take the direct road to bring it about, by opposing the measures for our defence. That open declaration will doubtless be restrained by the fear of general resentment; but the other conduct is so much the more dangerous, as it is calculated to close people"s eyes, while they approach the precipice, that they may be thrown down with greater ease and more absolute certainty.
I trust that your Excellency, and every other friend to our country, will urge forward that speedy and effectual collection of taxes, which can alone give vigor and stability to all our measures; and I risk nothing when I a.s.sert, that the public service shall be performed, (if the proper revenues be obtained,) at less than half of what would otherwise be expended.
I am, Sir, with perfect respect, &c.
ROBERT MORRIS.
TO THE GOVERNOR OF RHODE ISLAND.
Office of Finance, October 24th, 1782.
Sir,
My circular letter of the 23d instant, contains the estimates and requisitions for the service of the year 1783. I must take the liberty to make a few observations on them, which apply particularly to the State of Rhode Island. In the letters to Congress of the 29th and 30th of July last, copies of which were transmitted in my circular letter of the 12th of September, I have so fully expressed my sentiments on the subject of credit and loans, that I shall not repeat them. Your Excellency will perceive, that in the Act of the 16th instant, although the estimates amount to six millions, yet only two are required and that further requisitions are suspended until the result of measures for obtaining loans shall be known. It is unnecessary to mention, that Congress have directed an attempt to borrow four millions.
The propriety of this step will be self evident, when the date of their requisitions for the present year is considered. The sums brought in from the several States being regularly published in the gazettes, will spare me the pain of repeating them. I say the pain, because every such repet.i.tion will have, in some degree, the air of reproach. It must be remembered, that the duration of the war does not depend upon Congress. This is an invaded country; invaded for the purpose of conquest. And between opposition and submission there is no middle line. The idea of submission is, and ever ought to be, rejected with disdain. Opposition, therefore, becomes a matter of necessity; and that opposition involves expense.
There is then a certain degree of expense that cannot be avoided. And this must be provided for. The estimates being formed under the idea of money in hand to pay for services required, they are stated as low as possible. It appears, therefore, that the six millions mentioned in the estimates must be had. It appears from the experiments already made, that the people are either unwilling or unable to pay the whole in taxes; and whether want of power or inclination be the true cause, is immaterial to the present inquiry, for the fact is clear. Now there are but four modes of obtaining the supplies. Either they must be given to us, or lent to us, or raised by taxes, or taken by force. As to the first, we can place no dependence on it; and as to the last, it is neither the most const.i.tutional, the most economical, nor the most pleasing way. Necessity may justify it, but it will be very difficult to justify the necessity. The supplies, therefore, must be obtained by loans or taxes; so that if they cannot be obtained by loans, taxation is the only resource; and in that case, there is no medium between legal taxation and military collection. For if we will not submit to Great Britain, we must carry on the war; and if we carry on the war, we must obtain the means; and if we cannot get the means abroad, we must provide them at home; and if we do not provide them by law, they must be taken by force.
The inattention of the States to the requisitions of the United States, leaves Congress no choice between loans and military collections. Whether they can obtain loans must depend upon other people. They cannot obtain loans without credit, and they cannot have credit without funds; and they cannot get funds without the concurrence of the States. They must ask that concurrence before they can obtain it, and they must determine on the funds before they can ask. The making yearly requisitions of quotas to pay the interest of public debts will not do. It is in itself a futile measure; but if it were the best thing in the world, yet if those who are to lend do not think so, there is an end of the matter. Now the fact is, that n.o.body will lend upon the promise of such requisitions. And truly the compliances made with those for carrying on the war, give very little encouragement. It follows then, that Congress _must_ ask for particular funds. They have asked for one, and it is not complied with by two States out of thirteen. Shall Congress then adhere to the demand; or shall they change their application? If they should change it, could they expect that there would not then be one or two opposing States? To answer the question let it be inquired, what objects of taxation can be devised, to which exceptions cannot be made? Surely there are none.