TO B. FRANKLIN.
Office of Finance, October 1st, 1782.
Sir,
In my letter of the 27th of September last I expressed my wish, "that the Court of Spain should give orders for the shipment of a million of dollars at the Havana, free of duties, and to be convoyed by one or more ships of the line to an American port," &c. Upon further reflection, I am induced to believe that the Court of Spain will not go into the whole of this arrangement; for although they may, and probably will, agree to so much of it as will procure them an equivalent in France for the one million dollars, to be shipped from the Havana, yet there are reasons to doubt whether they will convoy the Washington hither. I wish, therefore, (should you meet with difficulties in that quarter) to apply to the Court for such convoy. I wish it may consist of a ship of the line, because none but frigates will cruise on this coast during the winter, and therefore a ship of the line will afford more protection than two or three frigates.
However, this will depend entirely on the convenience or inconvenience which may attend the business. I shall communicate both this letter and that of the 27th, to the Chevalier de la Luzerne, on whose representations I rely much, as well for procuring the aid asked for, as for accomplishing the necessary arrangements after it is procured.
I am, Sir, &c.
ROBERT MORRIS.
TO M. DE LA LUZERNE.
Office of Finance, October 2d, 1782.
Sir,
I have the honor to enclose for your Excellency"s perusal, the copies of letters from this office to Dr Franklin, of the 27th of last month and the 1st instant. I am to entreat, Sir, that you will represent to your Court the necessity of the application, which Congress have directed their Minister to make for four millions of dollars. The resolutions on the subject have, I suppose, been communicated to you by the Secretary of Foreign Affairs. I have, also, to request that you will facilitate the arrangements proposed in my letters already mentioned, the advantages of which are so well known to you that I shall not dwell on them.
With real esteem and respect, &c.
ROBERT MORRIS.
TO ALEXANDER HAMILTON.
Office of Finance, October 5th, 1782.
Sir,
I have now before me your letters of the 14th and 21st of last month.
I am sorry to find that you are less sanguine in your pecuniary expectations than the Governor appears to be; for I have always found that the worst forebodings on this subject are the truest.
I am not surprised to find that the contractors apply with their paper, in the first instance, to the receivers and collectors. This I expected, because much of that paper is not fit for other purposes.
Some of it, however, which is payable to the bearer, is calculated for circulation, which you observe, is not so general as otherwise it might have been, by reason of the largeness of the sums in the notes.
Mr Duer"s letters contain the same sentiment.
In issuing this paper, one princ.i.p.al view was to facilitate the payment of taxes, by obviating the too general, though unjust, complaint of the want of a circulating medium. In subst.i.tuting paper for specie, the first obstacle to be encountered, was the difference which has arisen from the late profusion of it. Had a considerable quant.i.ty been thrown into the hands of that cla.s.s of people, whose ideas on the subject of money are more the offspring of habit than of reason, it must have depreciated. That this apprehension was just, is clear from this fact, that the paper I first issued, and the bank paper which came out after it, did depreciate from ten to fifteen per cent in the Eastern States, notwithstanding all the precautions which were used. If I had not taken immediate measures to create a demand for it on the spot, and to stop issues to that quarter, its credit would have been totally lost for a time, and not easily restored.
Besides that the quant.i.ties, which were pouring in from thence would have done mischief here. Confidence is a plant of slow growth, and our political situation is not too favorable to it. I am, therefore, very unwilling to hazard the germ of a credit, which will in its greater maturity become very useful. If my notes circulate only among mercantile people, I do not regret it, but rather wish that the circulation may be for the present confined to them and to the wealthier members of the professions.
It is nothing but the greater convenience, which will induce people to prefer any kind of paper to the precious metals, and this convenience is princ.i.p.ally felt in large sums. Whenever the shop-keepers in general discover that my paper will answer as a remittance to the princ.i.p.al ports, and will be readily exchanged by the receivers, they will as readily exchange it for other people. When the people in general, find that the shop-keepers receive it freely, they will begin to look after it, and not before. For you must know, whatever fine plausible speeches may be made on this subject, the farmers will not give full credit to money merely because it will pay taxes, for that is an object they are not very violently devoted to; but that money that goes freely at the store and the tavern, will be sought after as greedily as those things which the store and the tavern contain.
Still, however, your objection remains good, that the trafficking in which the greater part of the community engage, do not require sums so large as twenty dollars. This I shall readily acknowledge; but you will observe, that there is infinitely less danger that notes, which go only through the hands of intelligent people will be counterfeited, than small ones that come to the possession of illiterate men. When public credit is firmly established, the little shocks it receives from the counterfeiters of paper money, do not lead to material consequences; but in the present ticklish state of things, there is just ground of apprehension. Besides this, the value of paper will depend much upon the interchanges of it for specie; and these will not take place when there is a circulation of small paper. Lastly, I have to observe, that until more reliance can be placed on the revenues required, I dare not issue any very considerable amount of this paper, lest I should be run upon for more than I could answer; and as the circulation of what I dare issue, by increasing the general ma.s.s, enables people (as far as it goes) more easily to get hold of other money, it consequently produces, in its degree, that object of facilitating taxation, which I had in view.
I am, Sir, &c.
ROBERT MORRIS.
TO B. FRANKLIN.
Office of Finance, October 7th, 1782.
Sir,
Captain Barney having been detained until this day, and it being probable that he will not arrive in Europe so early as I expected, I am very doubtful whether it would be proper to send him to the Havana, but think it would be better he should return immediately hither, because it is likely that the negotiation I proposed will consume more time than he can spare. His ship is small, but she sails remarkably well, and will, therefore, give us a good chance of being well informed of the situation of our affairs.
If there is likely to be any delay or difficulty in the Havana plan, it will be best that you endeavor to obtain the shipment of a considerable sum in Europe on board some of the King"s frigates. At any rate, we must have money, and I think you may venture fifty thousand crowns by this vessel. You will see that Captain Barney is put under your directions, and is to wait your instructions; but I must at the same time inform you, that Congress have directed his ship to be purchased and sent to France, among other things, for the purpose of obtaining a better communication with their servants, and more frequent and accurate intelligence from Europe. You will see, therefore, the propriety of despatching her as speedily as possible, and I think we may, probably, fall upon ways and means to afford you frequent opportunities of writing with a great chance of security.
I am, Sir, &c.
ROBERT MORRIS.
TO GEORGE WASHINGTON.
Office of Finance, October 15th, 1782.
Sir,
I have received your letters of the 2d, 3d, and 7th instant. There is no man in America, more heartily disposed than I am to remove from the army and from all others who have claims on the public, every just ground of complaint. But with the means in my power, how is it possible? I have been obliged to submit to cancelling one contract and forming another, at one third advance on the former price, for the want of a mere trifle, compared with what we had a right to expect. I am in advance on credit to an amount, which you can scarcely form an idea of, although I have declined every expenditure not indispensable.
That part of the late arrival of clothing, which is unfit for soldier"s use, is now selling to pay debts contracted by the clothing department during my administration. Among these debts are twelve thousand dollars for needle work done by people in extreme indigence.
The clothing which arrived fit for the officers" wear, was inadequate to the purpose of clothing them all. The division must have created confusion and raised disputes. If this had not been the case, still it would have been liable to the inconveniencies attending partial payments, and we should have been justly reproached for having broken repeated promises, that no such payments should take place. Congress have done all in their power to procure money for the army. My own efforts I shall not dwell upon. If money is obtained, that will produce satisfaction; I am sure that nothing else will.
My credit has already been on the brink of ruin. If that goes, all is gone; but if it can be preserved, there will, in the last necessity, be some chance of making advances on credit to the army, as well as to others. Thus, Sir, you will see that I look forward as far as my distressed situation will admit; but after all, if the States cannot be prevailed on to make greater exertions, it is difficult to see where the thing is to terminate.
I have this day commissioned Major Turner as Marine Commissary of prisoners, and I trust he will soon be in capacity to prevent your Excellency from having any further trouble on that subject.
I am, Sir, with sincere respect and esteem, &c.
ROBERT MORRIS.
TO THE GOVERNOR OF NORTH CAROLINA.
Office of Finance, October 7th, 1782.
Sir,