ROBERT MORRIS.
_P. S._ Upon a more exact calculation of the sale of bills, a few of which were sold a little higher than the rest, I find that nine hundred one thousand and eighteen livres, four sous, eight deniers, produced fiftytwo thousand two hundred and eleven pounds, ten shillings and ninepence, Pennsylvania currency; which is equal to one hundred twentyfive thousand three hundred and seven French crowns, and seven tenths of a crown, at eight shillings four-pence, Pennsylvania currency, for a crown; and the same number of livres reduced into crowns at six livres each crown, is one hundred fifty thousand one hundred sixty-nine and four sixths crowns. Consequently the discount is little more than sixteen and a half per cent.
TO THE SPEAKER OF THE a.s.sEMBLY OF PENNSYLVANIA.
Office of Finance, September 28th, 1781.
Sir,
As the Honorable House of a.s.sembly are now sitting, and have before them the several letters which I had the honor to write during their recess to his Excellency the President in Council, I shall now endeavor to state, in a short manner, the situation of accounts depending between Pennsylvania and the United States, and propose such measures, as, I think, will lead to a speedy and satisfactory settlement of them.
In the treasury books of the United States, there is an account current open for transactions commencing with the revolution, and continuing to the 18th of March, 1780, wherein the State of Pennsylvania stands charged with advances, made at different periods during that time, to the amount of four millions four hundred and fortyfour thousand and seven hundred dollars, and has credit to the amount of one hundred and thirtysix thousand and ninetyeight dollars.
Most of these advances were made whilst money was valuable; but I expect that the expenditures of the State on behalf of the United States kept pace with the advances made, and that, probably, when this account comes to be settled, there may be no great balance either way; but in this respect, I do not pretend to speak with certainty.
However, I must here observe, that every State in the Union has an account of the same sort depending; wherefore, I propose that Congress should fix such general principles as will tend to do justice on the settlement of the whole, and appoint immediately Auditors to go through the whole; so that when the balance of each shall be justly ascertained, it may be paid or received, according as the same shall happen to be due, to or from the United States, and this will put every State on an equal footing so far.
You will find by the resolution of Congress of the 22d of November, 1777, Pennsylvania is called on to pay, in four quarterly payments, commencing on the 1st day of January, 1778, the sum of six hundred and twenty thousand dollars. By the resolutions of the 3d and 5th of January, 1779, Pennsylvania is called on to pay, during that year, the sum of one million nine hundred thousand dollars. By the resolution of the 21st of May, 1779, Pennsylvania was called on to pay, by the 1st of January, 1780, the sum of five millions seven hundred thousand dollars. By the resolutions of the 6th and 7th of October, 1779, a monthly tax of fifteen millions is called for, of which the proportion of Pennsylvania is two millions three hundred thousand dollars, making for the two months payable the 1st of February and the 1st of March four millions and six hundred thousand dollars. Thus the whole of these requisitions appears to have amounted to twelve millions eight hundred and twenty thousand dollars, of which there appears to have been paid on different drafts to the amount of six millions four hundred and fifty four thousand one hundred and fourteen dollars and two thirds, leaving a balance still due of six millions three hundred and sixtyfive thousand eight hundred and eightyfive dollars and one third, of the old emissions.
By the resolution of the 10th of March, 1780, the fifteen millions of monthly taxes is continued so as to include thirteen months, making for the proportion of Pennsylvania twenty nine millions nine hundred thousand dollars; of which sum ten millions six hundred thousand dollars have been paid into the Loan Office; of consequence, there remains due nineteen millions three hundred thousand dollars.
By the resolutions last mentioned, new money was to be issued, at the rate of one for every twenty of the old; of which new money Congress had reserved four tenths to their disposal, and the Treasury Board have already issued warrants to the amount thereof. The State paper being of equal value with the new emission, and the former not bearing interest, I have thought it most for the benefit of this State and of the United States, to draw from the treasurer a sum of the new State paper equal to the balance of those four tenths, and have accordingly done so.
By the resolution of the 26th of August, 1780, the States are called on to pay into the treasury by the last day of December then next ensuing, three millions of dollars, of which the quota of Pennsylvania is four hundred and sixty thousand dollars.
By the resolution of the 4th of November, 1780, Pennsylvania is called upon to pay two hundred and seventythree thousand eight hundred and thirtytwo dollars and two thirds, in quarterly payments, commencing the 1st day of May last; and by the resolution of the 16th of March, 1781, Pennsylvania is called upon to pay one million and fiftynine thousand eight hundred and sixtythree dollars, in quarterly payments, commencing the 1st day of June last. All these are payable in the new emission, or specie. Thus the whole of the requisitions will, on the 1st day of March next, amount to one million seven hundred and ninetythree thousand six hundred and ninetyfive dollars and two thirds. Of this sum there appears to have been paid seventeen thousand seven hundred and forty dollars; wherefore, there will still remain a balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds.
By a note from David Rittenhouse, I find that he has in his hands one hundred and thirtyeight thousand nine hundred dollars of the new emission, and fourteen millions one hundred and fortyfive thousand six hundred dollars of the old, in which latter sum, nevertheless, is included some State money received at seventyfive for one, the amount of which cannot be determined until it is sorted and counted; wherefore, the old emission may be estimated at about fourteen millions.
On this state of things, I take the liberty of proposing to the honorable House, that all the old money be immediately paid in, and the new taken out, which will be about seven hundred thousand dollars, and that, with what is now in the Treasurer"s hands, will make eight hundred and thirtyeight thousand nine hundred dollars. I further propose, that this be paid to me, as Superintendent of Finance, on account of the above balance of one million seven hundred and seventyfive thousand nine hundred and fiftyfive dollars and two thirds, which will then be reduced to nine hundred and thirtyseven thousand and fiftyfive dollars and two thirds. I further propose, that the remaining sums of old continental, due from the State, be collected and paid as soon as possible, which, besides discharging that demand, will also enable the State to receive the further sum of two hundred and sixty thousand dollars of the new emission, and that, being paid in as before, will still further reduce the balance against the State to six hundred and seventytwo thousand and fiftyfive dollars and two thirds. There are at present in circulation of the new emission three hundred and ninetyone thousand one hundred dollars, which ought certainly to be brought in as soon as possible, and applied to the same purposes already specified; by which means the eventual balance payable in specie, would be two hundred and eighty thousand nine hundred and fiftyfive dollars and two thirds; to which must be added, thirteen thousand three hundred and thirtyfour dollars, required by Congress on the 8th day of January last to be paid in specie; being together one hundred and ten thousand three hundred and fiftyeight pounds, twelve shillings and sixpence. To explain all which more fully, I enclose the accounts, number one, two, and three, to which I pray leave to have reference.
The specific supplies will still remain to be provided for, in order that all the demands of Congress may be fully answered; but I hope that the specie tax now collecting will go a great way towards the accomplishment of this necessary object, and at any rate, as the state of paper, notwithstanding every effort, has not yet appreciated to par, I would propose that no more of it be issued from the treasury, except as equal to gold and silver, and then the collection of the present, taxes will at least prevent any depreciation, and in the meantime, the fund on which it was emitted, become more productive. The next a.s.sembly will be able to take such additional measures as may be necessary, further to raise the value of it. This can only be done by holding it up from circulation, on the one hand, and on the other, by raising taxes, in which the public receive it as equivalent to the precious metals.
It is my determination, as Superintendent, to deposit all the money of the new emission, which shall be received from the several States, in the Continental Treasury, and not to issue one shilling of it, unless compelled by absolute necessity; which, I hope, will not be the case, if the States take measures to pay in the eventual balances.
Whether the House will find it consistent with the situation of their const.i.tuents to lay an additional tax this session, is for them to determine; but it is my duty to mention it, which I do from a conviction that it is necessary. They will perceive, that very great arrearages are due, and they must be sensible, that taxation alone can support the public credit, or enable government to carry on the war.
With the greatest respect, I have the honor to be, &c.
ROBERT MORRIS.
TO THE COUNT DE ROCHAMBEAU.
Office of Finance, October 1st, 1781.
Sir,
This being the day agreed upon for repayment of the moneys your Excellency was so kind as to advance me, I do myself the honor of a.s.signing to you the reasons why it is not done. I had determined to make every effort and every sacrifice for the sake of complying with my engagements. But his Excellency, the Minister of France, perceiving that it would be very inconvenient to me, and being convinced that you were not in immediate want of it, was so kind as to a.s.sure me, that he would write to you on the subject, and that, in the meantime, I might delay the payment until the arrival of money from the eastward. I shall then take care to have your advance replaced.
Being convinced, Sir, that M. de la Luzerne has already made the proper representations to you upon the subject, I should not have troubled you with reading this letter, but that I feel a pleasure in seizing every opportunity to express my wishes for your success and glory, as well as to a.s.sure you, that I am, &c.
ROBERT MORRIS.
TO MAJOR GENERAL GREENE.
Office of Finance, October 3d, 1781.
Sir,
I have received your letter, dated the 18th of August last, at the high hills of Santee, and am now to thank you for it. Your observations on public affairs are, I fear, too just, but I hope that when our situation is thoroughly perceived by the people, they will adopt those effectual remedies, which every friend to his country ought to wish. That more power ought to be given to Congress is evident now to many, and will, probably, become soon very apparent to all. The disobedience of many States, and the partial obedience of others, discontents every one of them, and that will, in itself, be a reason for enabling the sovereign representative to exact a compliance with its requisitions; but, as you justly observe, all these things are in the womb of time, which can alone disclose the events we plague ourselves with guessing at.
From the latter part of your letter, I perceive that you greatly misunderstood me. When I requested you to draw on me, I meant to extend those drafts so far as might be necessary for secret service money, and the like small, but indispensable occasions. I well knew that you could not, by bills of exchange, supply the wants of your army, and, if I had thought it practicable, I should have been more explicit, for I could not then have paid the bills you would have drawn.
To give you an idea of my situation as to money, I think I need only inform you, that since I have been in office, I have only received the sum of seven thousand five hundred pounds, Pennsylvania money, from the Treasury of this State, and that was in part payment of advances made for them. This is all I have received from the funds of America.
It is true, that Colonel Laurens has lately arrived, and brought with him a sum of money from France. And it is also true, that I have made use of a very limited credit given me on France, by drawing bills of exchange; but both of these resources, taken together, are vastly short of what is necessary, though they have contributed to the present operations.
I have lost no occasion of showing to the several States their situation, but hitherto without success; and, unless some unforeseen event turns up very speedily, it is impossible to say what may be the consequences. However, it is our business to hope all things, and that Providence, who has. .h.i.therto carried us through our difficulties, will, I trust, continue his bountiful protection.
Your circ.u.mstances have long been arduous, but you have hitherto risen so superior to them, that we should be almost as much surprised now, if you should be unsuccessful, as we formerly were at your successes.
I wish I could contribute to render you more easy. As far as my abilities extend, I shall do it most cheerfully; but they unfortunately are very limited. Accept, I pray you, my good wishes, which are almost all I have to give, and believe me to be, &c.
ROBERT MORRIS.
TO THE COMMISSARY GENERAL OF PURCHASES.
Office of Finance, October 4th, 1781.
Sir,
I have received your letters, dated at Alexandria the 19th, and Williamsburgh the 23d of September last.
I am very glad that you push hard upon the States for supplies. It is, I find, necessary that you and I should understand each other on the subject. The General will, I dare say, take care to have as few unnecessary mouths as possible; but, after all, a certain quant.i.ty of provisions is indispensably necessary. Now this quant.i.ty must be furnished by the States of Virginia, Maryland, and Delaware. If you rely on my exertions, you will, probably, be disappointed. Should the operations against Cornwallis fail for want of supplies, the States must thank their own negligence. If they will not exert themselves on the present occasion, they never will. As to all that can be said about the failure of the one or of another kind of money, it is left to themselves. Let them tax in money which will not fail. It is their business to provide supplies and money too. If they neglect or omit this necessary duty, I again repeat, they must answer for the consequences.
I shall be glad at all times to hear from you very particularly, with all such information as you shall think necessary. But do not lean too hard upon me. Do not expect too much help from me. You will be deceived and disappointed if you do. Urge the States. Urge Delaware in particular. When I do furnish anything, it must be money. Let some of your people, therefore, apply when you intend applications. I cannot run about the city to purchase articles. That is the duty of an a.s.sistant Commissary; and my time is too much, and, I hope, too well employed, to permit it.
I am, Sir, &c.
ROBERT MORRIS.
TO MESSRS LE COUTEULX & CO.