It will be very useful both to you and me, that we should know exactly the state of our affairs, but I cannot acquire that knowledge by any comparison of accounts in my possession. You I think will be able to do it, and for your a.s.sistance I send the following information.
There have been issued from the several Loan Offices, bills, at thirty days" sight, for eight millions four hundred and thirtyone thousand seven hundred and fifty livres; bills at sixty days" sight, for one hundred and twentyfive thousand livres; and bills at ninety days"
sight, for one million three hundred and sixtyfour thousand one hundred and ninetyone livres, thirteen sous, and four deniers. An examination of your books will show at once how much of these sums remains unpaid. There have been issued bills on Mr Laurens and Mr Adams in Holland, for five hundred and fortyseven thousand three hundred and sixtyfour guilders and two thirds; and there have been issued on Mr Jay, for four hundred and fiftyeight thousand eight hundred and twentysix dollars. A proper inquiry will, I suppose, obtain the amount of payments on all these bills, and then you will be possessed of the state of things so fully, that you can apprize me of facts sufficient for my information.
From the best information I have been able to collect on the subject, my bills have very considerably exceeded your funds, but I trust that you have been possessed of additional funds for the acquittal of them in due season. I do everything that I can, and shall expect that you will exert yourself, to aid Dr Franklin. On those exertions I place much reliance; being with sincere esteem, Sir, your most obedient, &c.
ROBERT MORRIS.
TO M. DE LA LUZERNE.
Office of Finance, January 13th, 1783.
Sir,
In the close of our conversation on the 11th instant, your Excellency did me the honor to request that I would recapitulate to you in writing, the reasons why my bills had exceeded the funds in possession of Mr Grand, by about three millions and a half of livres. I undertake this task with pleasure, but I will premise, that in the course of this letter (seeking clearness more than precision) I will not trouble you with an attention to fractional sums, but rather to round numbers.
You will remember, Sir, that shortly after your arrival in this country, the Congress, while they continued their drafts for interest, added a number of other bills on Dr Franklin, at a long sight, which they directed to be sold; and urged by their necessities, and relying on the success of measures then just undertaken, they drew other bills at a long sight on their Ministers in Spain and Holland. Before this they had drawn bills on Dr Franklin, in favor of M. de Beaumarchais, for nearly three millions, of which two millions and a half were payable in June, 1782. The amount of all these bills, exclusive of those to M. de Beaumarchais, was between thirteen and fourteen millions. How great a proportion of this sum had been paid, and how much remained due, it was impossible for me to determine with precision, because I had not received the accounts, but the best estimate in my power was made.
Your Excellency will also remember, that from the sketch which you did me the honor to deliver from the Count de Vergennes, there was due on the Dutch loan of 1781 about four millions, or three and a half after deducting the supposed expenses of that loan. I considered this balance as sufficient to liquidate what I estimated to remain due of the several bills drawn by order of Congress as above mentioned, excepting the two millions and a half payable in June last. I perceive, however, from Mr Grand"s accounts, that although his Majesty, among other acts of his royal generosity, remitted the expenses of the loan, yet the balance actually touched by the banker, amounted only to about two and a half millions. Thus there was a deficiency of a million in what I had relied upon to acquit former engagements. It is necessary for me to mention here, that I had allowed also for a supposed deduction on account of the Virginia goods, but as I had also supposed, that fewer of the Congress bills remained unpaid than appeared afterwards to have been, so one error eventually corrected the other, and left the deficiency still at a million. It is proper also to observe further, that although the loans and subsidies of 1781, amounting in the whole to twenty millions, had been princ.i.p.ally employed in the purchase of clothing and military stores, yet the continuance of those things in Europe by various delays and mischances obliged me to make provision for the same articles here, forming thereby a heavy deduction from the small means which were at my disposal.
Having said thus much of things previous to the year 1782, I must now take the liberty to remind your Excellency, that I had requested the sum of twelve millions for that year, on the principle, that after deducting two millions and a half for M. de Beaumarchais, the remaining nine and a half would be absolutely necessary, and I then did expect much more from the States than has been received. The Court, however, granted only six millions, but I had every reason to suppose, that this sum would be exclusively at my disposition; and therefore in consequence of your Excellency"s a.s.surances, and according to your advice, I drew twelve bills of half a million each on Mr Franklin, in favor of Mr Grand, and I appropriated this money to the payment of what bills I should draw on him; excepting a part which I desired him to ship during the last summer, when bills were not saleable, and which I expected here in November, or December; but as it did not arrive, I conjectured as the event has shown, that no shipment was made, and extended my bills accordingly. As to M. de Beaumarchais" bills, I expected that some arrangement might have been taken with relation to them, according to our conversations. For although you declared that you had no instructions on that subject, yet you saw with me that our funds would not bear such a deduction, and the line of conduct which you advised, was precisely that which I pursued, as I shall presently have occasion to mention.
I relied then on the loan of six millions, and on three millions which Mr Adams had obtained in Holland, so long ago as in September last. My appropriation of these sums was as follows. Bills drawn on Mr Grand in 1782 for six millions, being the amount of the loan made by his Majesty; one million negotiated through the Havana; half a million which I directed for payment of interest on the Dutch loan of 1781; and a million and a half drawn for in 1783, at the time I had the honor to speak to your Excellency, formed the amount of three millions in Holland, which by the Acts of Congress were exclusively at my disposition.
It was not, therefore, until the investigation of Mr Grand"s accounts, that I was struck with the deficiency above mentioned, and which arose from the difference of one million due on the former transactions more than I had calculated, and two millions and a half to M. de Beaumarchais. The moneys which I supposed to be at my sole disposal were, I found, subject to Dr Franklin"s order, and therefore Mr Grand instead of six millions possessed only two and a half towards answering my bills drawn in 1782. I had written to Dr Franklin in the manner agreed between us as to M. de Beaumarchais. But the money was paid before the letter arrived. I should not, however, do that justice to Dr Franklin which I ought, if I did not observe, that I think he was perfectly right in causing those bills to be paid. You will consider, Sir, that they had been drawn in 1779, and negotiated for three years, through different parts of Europe and America, on the public faith and credit of the United States. It is a very moderate calculation to suppose, that a thousand different people were interested in the sum of three and a half millions. Protesting the bills, therefore, would have sent them back again from one person to another, affixing a stigma on our character wherever they went. The necessary consequence would have been, not only a total loss of credit in Europe, but that no person here would have bought my bills. The funds, therefore, which I could command would have been useless, and the difference between not having money and not being able to use it is immaterial.
Having said thus much, Sir, on the reason of the deficiency, I find it proper to add, that the bills drawn in December and November amount to two millions; which being at thirty days" sight will not be payable until February or March next. One million negotiated through the Havana on Cadiz, thence to Paris, &c. will not finally be payable until March and April. And one million drawn the beginning of this month at one hundred days" sight, will not fall due until some time in April and May. On the other hand, any further success of Mr Adams"s loan will apply for the payment.
I trust from the whole state of these things your Excellency will see, that nothing has introduced any disorder into these transactions, but the appropriation without my authority of moneys intended to be at my disposition, and that this again has arisen from the utter incapacity of Dr Franklin any otherwise to acquit the demands on him, arising from expenditures made some years before my administration. If I might venture, therefore, to advise, it should be that three and a half or four millions were paid to Mr Grand as an addition to the loan of 1782, and then the sum which the Court may think proper to advance for 1783, being clear of preceding transactions, I will pledge myself that no act of mine shall exceed the limits to be prescribed by your Court.
You see, Sir, that I rely on aid for the current year; and this brings me to the resolution of Congress, which I had also the honor to communicate. You observed on it with great propriety, as a Minister of France, that you advised me not to comply with it; and as a Minister of the United States I might reply, that I should certainly obey the order of my masters. At the bottom I believe we are both agreed. I would not put my name to a bill if I doubted the payment, and you must be convinced that it is necessary to draw. Not to mention those critical circ.u.mstances of the army, which you are perfectly apprized of, it must be remembered how important an effect it might have on the negotiations for peace, if we should now neglect to prepare for war, and much more if we should suffer any serious misfortune. To keep the army together, in good humor and prepared for action, is a duty which we owe alike to ourselves, to our allies, and to our a.s.sociates in the war.
I shall I believe draw within a month for at least a million. You know, Sir, that the funds given by the States are incompetent, and I am sure you will do me the justice to believe, that I have done all in my power to husband our means and to increase them. That I have not talents equal to this task must be lamented and forgiven. It is not my fault but my misfortune. The share of abilities which I possess, be it what it may, has been faithfully exerted. If, however, I have incurred censure on the present occasion, it must be because I was ignorant of what I could not know, and did not perform what was not in my power.
I am, Sir, with respect and esteem, &c.
ROBERT MORRIS.
TO JOHN ADAMS.
Office of Finance, January 19th, 1783.
Sir,
Although I have not yet been honored with any letters from your Excellency, I cannot omit the occasion of writing, which offers itself by Mr Jefferson. Having already congratulated you on the acknowledgement of our independence by the States-General, and on the rapid success of your labors equally splendid and useful, I hope when this letter shall have reached your hands I may have the additional cause of congratulation, that the loan you have opened in Holland shall have been completed. This is a circ.u.mstance of great importance to our country, and most particularly so to the department, which I have the honor to fill. Whatever may be the success of it, whether general or partial, I pray your Excellency to favor me by every conveyance with every minute detail, which can lend to form my judgment or enlighten my mind.
For the more perfect security of our correspondence I do myself the honor to enclose the counterpart of a cypher, to the use of which you will soon become familiarised, and I hope you will be convinced, that any confidence with which you may honor me shall be safely reposed and usefully employed for the public benefit.
I have the honor to be, &c.
ROBERT MORRIS.
TO THE PRESIDENT OF PENNSYLVANIA.
Office of Finance, January 20th, 1783.
Sir,
I had the honor to receive your Excellency"s favor of the 18th of last evening. In answer, it becomes my duty to convey to your Excellency, the painful information, that those affairs of Congress, which relate to the public revenue, are reduced to the most critical situation.
They are now under contemplation of that honorable body, and I shall take the earliest opportunity of communicating to the several States the result of their deliberations.
It is also my duty, Sir, on this occasion, to remind your Excellency, that on the 2d day of November, 1781, the Congress required of the State of Pennsylvania, one million one hundred and twenty thousand seven hundred and ninetyfour dollars, as the quota of that State, for the expenditure of the year 1782. This sum was to have been paid in equal quarterly proportions, commencing on the 1st day of April last.
I am extremely sorry to mention, that during the whole of the year, 1782, there has been received towards the payment of this quota, only the sum of one hundred and seven thousand nine hundred and twentyfive dollars and twentyfour ninetieths, being less than a tenth of the sum required. It is of little avail, Sir, that the army who are the immediate sufferers, or the people of America whose national existence is so imminently hazarded, should be told, that a law has been enacted for raising the sum required. Laws not executed, or which from their nature are not to be executed, only subst.i.tute deception in the place of denial. Congress can never believe, that a State seriously means a compliance with the demands made on it, unless the laws be such, that responsible officers be sufficiently empowered to collect the taxes by certain specified periods, and that the Continental Receiver of taxes be empowered after such periods shall have elapsed, to issue executions against the persons and estates of those officers for any deficiency, which may remain of the sums payable by them respectively.
I have the honor to be, &c.
ROBERT MORRIS.
TO GEORGE WASHINGTON.
Office of Finance, January 21st, 1783.
Sir,
I have received your Excellency"s favor of the 6th and 8th instants. I have directed the Commissary of Marine Prisoners to appoint a proper agent at Dobbs" Ferry, and I hope for your Excellency"s advice to him on that occasion, which he will be desired to apply for. Without wishing to incur the blame of too great suspicion, I take the liberty to suggest, (as an additional reason for caution;) that moneys intended for commercial pursuits, might be transmitted under the idea of relieving prisoners. Mr Skinner has never yet communicated his returns or accounts.
It was with very great pleasure, Sir, that I paid the money you desired, to Mr Adams, and I beg you to believe, that I shall at all times be happy to facilitate your views. At present, the negotiation happens by good luck to minister alike to your convenience and mine. I am very sorry, that you did not make an earlier mention to me of your demands for secret service. I would have antic.i.p.ated your views, had it not escaped my attention, for be the distresses of my department what they may, this is of too much importance ever to be neglected. I think it best in future, that a solid arrangement should be taken, and for this purpose I will give directions to the Paymaster General always to keep some money in the hands of his deputy, to answer your drafts for contingencies and secret service. I have, as you will see, taken methods to put the deputy in cash, and then your Excellency will be relieved from any further care than the due application. I am, however, to pray for the sake of regularity in accounts, that your Excellency in the warrants would be so kind as to specify the particular service when on the contingent account, and draw in favor of one of your family on account of secret services, mentioning that it is for secret service. I shall direct Mr Swanwick to endorse the bills on you in favor of Mr Adams to the Paymaster General, whose deputy will receive from your Excellency the amount.
I have the honor to be, &c.
ROBERT MORRIS.
TO THE PRESIDENT OF CONGRESS.
Office of Finance, January 24th, 1783.
Sir,
As nothing but the public danger would have induced me to accept my office, so I was determined to hold it until the danger was past, or else to meet my ruin in the common wreck. Under greater difficulties than were apprehended by the most timid, and with less support than was expected by the least sanguine, the generous confidence of the public has accomplished more than I presumed to hope.