CIRCULAR TO THE GOVERNORS OF THE STATES.
Office of Finance, July 28th, 1783.
Sir,
Having already transmitted the public accounts from the commencement of my administration to the first day of this month, I shall not trouble your Excellency with a repet.i.tion of them. But I must pray your indulgence while I make a few observations. Perhaps this letter may contain too much of egotism, but your candor will excuse me when the motive is known. If I have rendered any services to the United States, they have been derived from the generous confidence of my countrymen. This confidence must not be abused, and if it be lost my utility is at an end.
The accounts will show to any informed and reflecting mind, that the public moneys were economically applied; and if farther proof were necessary I could appeal to the honorable Delegates in Congress, who have every opportunity of investigation. I might also appeal to the clamors against me for opposing claims I could not properly comply with. Long have I been the object of enmities derived from that origin. I have, therefore, the right to consider such clamors and such enmities as the confession and the evidence of my care and attention.
But, Sir, from the same accounts it will appear, that on the 30th day of June last, my payments had exceeded the amount of my receipts by more than a million of dollars. How, indeed, could it be otherwise, when all the taxes brought into the treasury since 1781 did not amount to seven hundred and fifty thousand dollars? I have been impelled to this heavy antic.i.p.ation by an earnest desire to relieve our army, by the General"s warm representations on the subject, and above all, by the directions of Congress and their a.s.surance of support. The enclosed letter to them will show my desire to reduce our expenses.
But while I urge the reduction of expense it is equally my duty to urge an increase of revenue. If I have been a faithful steward of what was intrusted to me, if more became necessary than I ever received, and if urged by that necessity I have antic.i.p.ated the receipts, surely I am in the strictest line of propriety when I loudly call for relief.
Every one must know, that the paper I have circulated will lose its value, unless punctually redeemed. The several receivers are indeed instructed to exchange it; but what can that instruction avail, if specie be not placed in their hands for the purpose? And how can that be effected but by a vigorous collection of taxes?
I know that my solicitude on this subject will be charged to improper motives. When I urge a reduction of expense it will be said, that I wish to impair the strength and lessen the respectability of our country. Far other wishes swell my bosom. But I have been driven into a conviction, that the necessity of strength, and the advantage of reputation, are not yet sufficiently felt and understood by all the members of our federal Union.
My present call for taxes has also been antic.i.p.ated by a slanderous report, that I have speculated on this very paper which I urge the redemption of. Most solemnly I declare, that I have never been concerned, directly or indirectly in any such speculation. If there be a man in the world who knows any instance to disprove what I say, let him step forth with the accusation. No, Sir, the object is in nowise a personal one to me; I only advocate the interest and reputation of America. If, with a view to injure me, the attempt is made to violate my engagements, the malice will be defeated; but at the same time let it be remembered, that the country, which will not support faithful servants, can never be faithfully served. Guilt and desperation will ever pant for scenes of tumult and disorder, office will ever excite envy, and malevolence delight in slanderous tales. Is it then to be wondered at if my foes are numerous? Believe me, Sir, if their attempts had only affected me and mine, they should have been received in the same silence, which has buried many other wrongs. But on the present occasion, it becomes my duty to delineate their baneful influence.
Pains are taken to cover with infamy all those who discount the public paper. The natural effect of this measure is to prevent those men from meddling with it, who, from a regard to their own reputation, would do the business on moderate terms. Hence it follows, that the holders cannot obtain so much for their paper as they otherwise might. Hence again an additional clamor and of course an additional loss to the possessors. On the basis of the depreciation is founded an argument to prevent the redemption. By these means the public credit is totally ruined, and the government becomes chargeable with flagrant injustice.
No future antic.i.p.ations can be made to supply the most urgent wants; and in the whole proceeding, they are made the victims, who confided in the faith of government. The attempt, therefore, by this slander to injure me is an injury to those, who have received my paper; and in every instance where they have joined in propagating the report, they have joined their enemies to plunder themselves.
Let me no longer intrude on your Excellency"s patience, than to declare my conviction, that the States might easily fulfil far more extensive engagements than those which I have made on their account.
Notwithstanding every insinuation I will continue my efforts for the purpose, and though base minds should reiterate their charges, I will persist in my duty and defy their malice.
With perfect respect, I have the honor to be, &c.
ROBERT MORRIS.
REPORT TO CONGRESS RESPECTING TRANSFERABLE CERTIFICATES.
Office of Finance, July 31st, 1783.
The debts which have been found due to persons by settlements at the Treasury Office, have not been evidenced by transferable certificates for the following reasons.
1st. All such certificates have by experience been found to be only another kind of paper money, continually depreciating both by increase of quant.i.ty and defect of funds.
2dly. The consequence thereof is, that the same is daily brought into fewer hands and for less value, by which one of two things must happen, either that those few become very rich by their speculations, or, that being defrauded they become clamorous against the government.
3dly. If the certificates are transferable in the manner proposed by the motion, they are evidence of the debt as due to the bearer, and therefore whether obtained by accident, force, or fraud, vest him with a right, to the prejudice of the injured or unfortunate party.
4thly. Being, therefore, a precarious property, they become less valuable from that circ.u.mstance.
5thly. When the original proprietors become divested of them, some of the reasons in favor of revenues to redeem them lose their force, and the advocates for just measures being lessened, the probability of carrying them through is decreased.
6thly. While the evidence of such debts is in the treasury books and the stock transferable there, the public debt becomes a property, the object of purchase, instead of being as in the other case the means of making purchases as money.
But if there be powerful reasons in favor of the motion, which have escaped the Superintendent of Finance, he shall very readily comply with such order as to the wisdom of Congress may seem meet.
ROBERT MORRIS.
TO THE PRESIDENT OF CONGRESS.
Office of Finance, August 1st, 1783.
Sir,
I do myself the honor to enclose an account of payments, made by the States to the receivers, until the 1st day of July last, and with it I take the liberty also to enclose a note, containing nearly the proportions, in which the States have paid their quotas of the requisitions for 1782.[17]
[17] The proportions are as follows:
South Carolina 1-1 Rhode Island nearly 1-4 Pennsylvania above 1-5 Connecticut and} New Jersey } each about 1-7 Ma.s.sachusetts, about 1-8 Virginia about 1-12 New York and } Maryland } each about 1-20 New Hampshire, about 1-121 North Carolina,} Delaware and } nothing at all.
Georgia }
I take the liberty further to mention, that the State of South Carolina has (by means of the supplies to the troops serving there) paid the full amount of her quota for 1782, as I am informed by the Receiver, whose accounts and vouchers (though momently expected) are not yet come forward. The State of Georgia has I believe contributed something in the same way, but if not, the great ravages which she has endured will account for the defect, without supposing any defect of inclination. As for the other States, I pray leave to avoid any comments on the balances of their accounts.
I have the honor to be, &c.
ROBERT MORRIS.
TO MESSRS WILLINK & CO.
Office of Finance, August 6th, 1783.
Gentlemen,
I beg leave to acknowledge your favor of the 12th of April last, which came to hand two days ago. From the letters I had already written, and which I presume you will have received before this, you will easily see how much pleasure I derive from the prospect that your loan may speedily fill. Be a.s.sured, Gentlemen, that your endeavors on this occasion shall not be forgotten; and rely on it that you cannot render more acceptable service to the United States.
My former letters contained the disposition of your funds so far as to satisfy any demands which Mr Grand might have. These I suppose have been complied with, and I expect, that not only the sums which Mr Grand could possibly want must have come to your hands before this letter can arrive, but that you will still have a considerable balance.
Under these circ.u.mstances, the exchange on your city being now high, and the disbandment of our army having increased my need of money to make them a considerable payment, I have concluded to draw on you to the amount of two hundred thousand florins, as occasion may offer; and if exchange should not fall, nor any advices arrive to prevent the measure, I may perhaps extend my drafts on you to five hundred thousand florins. But as it might happen, notwithstanding my opinions, that you should not be considerably in cash beyond Mr Grand"s demands, I have determined on these two points; first, that I will not precipitate my sales here, but only dispose of bills as occasion may require; and secondly, that I will draw at ninety days" sight, because the demand for bills is such, that a difference in the sight will make none in the price. By these means it will happen, Gentlemen, that even if you are not in cash when the bills arrive, you can have no difficulty as to the acceptance, because the natural progress of the loan must put you in possession of money before they can fall due. And this is the more to be expected, as some of the tobacco will doubtless have arrived, which cannot but give a weight and solidity to your negotiations. If however these things should not so happen, you will, I expect, pay the bills at any rate, and for any excess beyond your immediate funds you will charge an interest to the United States. On the other hand, if it should happen according to my expectations, that you have unappropriated money in your hands when the bills are presented, I am then to request that you will pay them at sight, if agreeable to the parties, deducting the usual discount for prompt payment, which you will be so kind as to credit to the United States.
With every wish for your success and prosperity, I have the honor to be, &c.
ROBERT MORRIS.
GEORGE WASHINGTON TO ROBERT MORRIS.
Head Quarters, August 6th, 1783.