That the receivers in the several States have long since been instructed, to take all notes signed by the Superintendent of Finance in payment of the taxes, and also, take up all such notes whenever tendered, if they have public money in their hands.
That when it was in contemplation to make a payment to the army, the committee who conferred with the Superintendent on that subject were informed, that it could only be done in notes, and that in order to support the credit of such notes, it would not be sufficient that they should only be receivable in taxes in some particular State, but that the receivers throughout the States must receive and exchange them, in like manner with other notes issued from the Office of Finance.
That the instruction to the receivers is generally known to all those who are concerned in the business they relate to, and in consequence thereof the receivers are in the constant practice of receiving and exchanging notes signed by the Superintendent of Finance, which they duly remit to the treasury.
That whenever they shall find it difficult to obtain such notes for the purpose of making their remittances (which is not likely to be the case in any short period,) they will naturally advertise to obtain them. Wherefore, any general notification, such as is contained in the extract committed, will be unnecessary.
That if such publication as is recommended were confined (as seems to have been the idea,) to those notes which have been issued for payment of the army, it would destroy what little credit is at present reposed in the public servants, and by bringing home immediately all other notes which have been issued, render it impracticable to discharge them; in which case the notes issued to the army could be of no use, because n.o.body would take them. The importance of preserving credit in this respect, will appear from the preamble to an Act of Congress of the 2d of May last.
That if (as is most probable) the publication were intended to relate alike to all notes, it is a thing which is already well known, and therefore the expense of printing may be spared.
With respect to the measures taken relative to paying the army, he begs leave to report, that upon an estimate from the War Office, he signed warrants for four months" pay of the present year, whereof one month"s pay has been made to the noncommissioned officers and privates in specie, and to the officers in notes, and three months" pay to both officers and soldiers in notes. That the Paymaster has not yet received all the notes necessary for the purpose, but has in his hands as many as he wants for the present.
All which is humbly submitted.
ROBERT MORRIS.
TO THE PRESIDENT OF CONGRESS.
Office of Finance, July 18th, 1783.
Sir,
I would sooner have replied to the Act of Congress of the 11th instant, if I had not been prevented by other business, which required immediate attention. The Act recites a representation to Congress, that certain parts of the army retired on furlough have not received the pay, &c. I will not contest the truth of this representation. But when I come to state such facts as are within my knowledge, I shall appeal to the candor of Congress how far that representation will warrant a censure against me.
I am directed to complete without delay the same payment to the officers and soldiers of the Ma.s.sachusetts line which were ordered to be paid to the army at large. Congress will be pleased to observe, that they have pa.s.sed no particular order to which the above resolution can refer. The general Acts which relate to paying our army from the _authority_ on which the payment alluded to was made.
Supposing, however, that by the resolution is meant three months" pay, in notes payable at six months from the date; I must take liberty to remind Congress, that completing the payment to any part of the army is not the business of my department, but of the Paymaster General.
All which can depend on me, is to put those notes into his hands when called for, and this has been done as fast as was possible.
I am directed to report the reasons why the troops lately furloughed did not receive a part of their pay previous thereto. Not being able, Sir, to make so full report on this subject as I could wish, I have written a letter to the Paymaster General, of which the enclosure, number one, is a copy. The answer to this letter shall be transmitted as soon as received. The facts relating to that matter which are within my knowledge are the following.
On the 9th day of April last, a committee of Congress did me the honor to call, for the purpose of consulting on certain propositions contained in a letter from the Commander in Chief to an honorable member from Virginia. One of these propositions was to make the army three months" pay previous to their disbandment. My reply was, an acknowledgement that the claim was very reasonable, a declaration that I doubted of the practicability, and a prayer to be indulged with time for consideration. On the 14th of April I wrote a letter to that committee, in which I had the honor to inform them, that three months"
pay amounted, according to the estimates, to seven hundred and fifty thousand dollars. That to supply so large a sum was utterly impracticable, or indeed to obtain any considerable part. That the most which could be done was to risk a large paper antic.i.p.ation. That to render the arrangements for that purpose effectual in an official point of view would be a work of time. That the period of my official existence was nearly arrived; that disbanding the army in a manner satisfactory to them and the country was doubtless desirable. That I believed it to be practicable, although extremely difficult, and that I should be ready at all times to give my advice and a.s.sistance to those who might be charged with that delicate and perilous undertaking.
On the 22d of April, Congress were pleased to appoint a committee to confer with me relative to my continuance in office. I told that honorable committee, that the late advices from Europe gave a new complexion to our affairs, and prayed some further time for the receipt of intelligence. On the 24th of April, I had the honor to inform the committee, that if Congress thought my a.s.sistance essential toward completing such payment to the army as might be agreed on, &c.
I would consent to a further continuance in office for that purpose; but prayed to be excused from that service if Congress could otherwise accomplish their views.
On the 28th of April, Congress were pleased to resolve, that the public service _required my continuance in office_ till arrangements for the reduction of the army could be made, and the engagements taken in consequence, as well as those already taken, should be completed.
On the 2d day of May Congress were pleased to pa.s.s some further resolutions on the same subject, which I shall shortly have occasion to mention. On the 3d of May I had the honor to entreat of your Excellency, that you would inform Congress that I entertained a proper sense of their a.s.surance of firm support, and _in reliance on them_ should continue my zealous exertions for the service of the United States.
On the 9th of May, having had a conference with the Minister of War, on the resolutions of the 7th and 28th of April and 2d of May, we took the liberty to request, that a committee might be appointed to confer with us on the subject of those resolutions. On the 15th of May, two gentlemen of that committee did us the honor of the conference requested. In which it was stated, _as impracticable to make any payment to the army, unless our expenditures were immediately and considerably reduced_. The committee, however, being desirous to have the situation of things stated to them in writing, I wrote them a letter on the same day, showing, that on the last day of April we were in advance of our resources, to the amount of six hundred thousand dollars; that our foreign resources were exhausted; that our domestic resources as far as they consisted in sales of public property, were considerably reduced; that as far as they consisted in the produce of taxes they were extremely slender and precarious; that the monthly consumption of the army was at least double the monthly produce of the taxes; that if they were kept longer in the field, they would consume every resource by which the payment could possibly be made or hazarded. And, therefore, that _unless the far greater part of our expenses was immediately curtailed, the object Congress had in view by their resolutions of the 2d of May could not possibly be accomplished_. This letter was accompanied with the necessary doc.u.ments to establish the positions contained in it.
On the 26th of May it was resolved, that the Commander in Chief should be instructed to grant furloughs, &c. And this resolution was communicated to me on the 27th. Thus, Sir, from the 9th day of April, when this matter was first proposed, until the 27th day of May, when the final determinations of Congress were made known, my conduct was of necessity suspended.
On the 29th of May I informed the Commander in Chief of my determination to issue notes payable in six months from the date, for three months pay, and explained to him the reasons why I could not make the payment in any other mode. In reply to this, I received on the 5th of June a letter from the General, dated the 3d, which was brought by express and urged the transmission of a part of those notes. I immediately wrote an answer, in which I informed him that on Sat.u.r.day evening, the 31st of May, the paper arrived from the maker; that on Monday, the 2d of June, it was delivered to the printer; that he had agreed to send the first parcel of notes to me on Friday, the 6th of June; and that as soon as I could sign them they should be delivered to the Paymaster, to be sent forward. On the 7th of June the Paymaster received fifty thousand dollars, on the 9th fifty thousand dollars, and on the 13th one hundred thousand; so that in six days I signed six thousand notes, besides the other business of my office.
That paper made on purpose for this business was necessary no man can doubt, or if it could have been doubted the recent attempt to counterfeit these notes is a sufficient proof. That the printing was to take place before the signing must be admitted. The only delay therefore with which I can be chargeable must be in the signing of them, and upon that subject I shall say nothing. If by any means a delay happened after the notes were delivered into the pay office, I presume that the Paymaster General will be able to account for it. I shall only add, that he has received half a million of these notes, as will appear by the enclosed note of the payments number two.
I am also directed, Sir, to report the manner in which I expect to redeem the notes in question. Congress will be pleased to recollect, that the issuing of those notes arose from a proposition made by the General and warmly adopted by them. That although I was very desirous of gratifying the wishes of the army, I had great apprehensions as to the ability of doing it. And that from a view of the scantiness of our resources I felt extreme reluctance in giving my consent. As to the means of redeeming the notes, permit me to refer Congress to the letters which I had the honor of writing to your Excellency on the 17th of March and 1st of May; to my correspondence with the honorable committee of Congress on the 14th and 16th of April, copies whereof are enclosed in the paper number three; and to a circular letter to the States of the 12th of May, of which a copy is enclosed in the paper number four.
Permit me also to refer to the various accounts which have been rendered to Congress of the state of my department; and to these let me add what appears on their own minutes. On the 2d of May they declared it to be their desire, when the reduction of the army should take place, to enable the officers and soldiers to return to their respective homes with convenience and satisfaction; _for which purpose it would be indispensable to advance them a part of their pay_. They declared further, that there were many other engagements for which the public faith was pledged, and _the punctual performance of which was essential to the credit of the United States_. And they further declared, that _neither of these important objects could be effected without the vigorous exertions of the several States in the collection of taxes_. From a conviction of these facts Congress were pleased to call upon the respective States in the most earnest manner, to forward the collection of taxes. As an additional means to accomplish the same end, they were pleased to apply for a further loan of three millions of livres to his Most Christian Majesty. And they resolved, that the Superintendent of Finance be directed to take the necessary arrangements for carrying the views of Congress into execution. And that he be a.s.sured of their firm support toward fulfilling the engagements he has already taken, or may take, on the public account during his continuance in office.
Having already so fully stated the situation of my department, I have only to say in answer to the order I have received, that I rely on the firm support of Congress, solemnly pledged to me (for the purpose of inducing my continuance in office) to redeem those notes issued to the army, as well as to fulfil all other engagements which I have taken or may take on the public account.
Before I close this letter, I beg leave to a.s.sign my reason for reducing my report to that form. It is because I had rather bear the censure contained in the acts of the 11th of July, however painful, than place on the minutes of Congress anything which may hold up the idea of precipitancy on their part.
With perfect respect, &c.
ROBERT MORRIS.
TO MR GRAND.
Office of Finance, July 25th, 1783.
Sir,
I have received your letter of the 15th of April, covering a statement of your accounts, by which it appears that my bills on you exceed the sum which you will have to receive from the Court on this year"s subsidy. This circ.u.mstance gives me great pain, for it would be very hard if after supporting our credit in Europe during the war, it should be fatally ruined on the establishment of peace. You will have learned by my former letters, that I had taken measures to throw into your hands all the moneys, which I could by any means command for that purpose. I am still in hopes, that the Court will make a further effort in our favor, but at any rate if your payments should exceed your funds, I must replace your advances by remittances from hence. I hope that our affairs will soon take such a form, solidity and establishment, as to render all things perfectly easy, and the conclusion of the definitive treaty, which will enable us to reduce our expenditures, added to the advantages of a general and lucrative commerce, cannot fail of absorbing what few engagements may be at present unprovided for. On the whole, my Dear Sir, I have only to say my bills must be honored, and your zeal in favor of America must be rewarded.
With sincere esteem, I am, &c.
ROBERT MORRIS.
TO THE PRESIDENT OF CONGRESS.
Office of Finance, July 28th, 1783.
Sir,
Conceiving it to be almost certain, that a definitive treaty of peace is concluded, I am bound to request the attention of Congress towards reducing the expenses. It is unnecessary to repeat, that our resources for absorbing the antic.i.p.ations, depend on the produce of taxation.
There is no hope of fulfilling the public engagements, but by a strict economy, for there is no evidence of that energy among the States, which the Act of Congress of the 2d of May was framed to inspire. Let me, therefore, repeat my request, _that the public expenses be greatly reduced_. The number of men which it may be necessary to keep in the field, I cannot presume to name, as it is a military question; but it would best consist with the present state of my department to disband the whole.
Your Excellency will easily conceive the situation to which I am driven when I am compelled to withhold a.s.sent to a moderate demand of the Secretary at War, for building magazines to preserve the public stores. It is certainly of importance, that a.r.s.enals should be erected in such proper places as to provide for the public defence, but reasons against advancing money are incontrovertible. Congress knew the extent of my engagements, for the discharging of which they have solemnly pledged themselves. Congress know also, that the States do not furnish means. They will perceive, therefore, that I should wantonly sacrifice their honor and dignity, should I form new engagements before the old are satisfied.
I know, Sir, that many of the stores may be wasted and destroyed for the want of magazines, and that if they are sold it will be to a considerable loss. But much loss must be added to the ma.s.s of injuries America has already sustained by not complying with the requisitions of Congress. It is a loss, which in its consequences must fall upon the States themselves, who are the immediate authors of it; but if the engagements already taken are violated by applying money to other purposes, then the honor of Congress will be sacrificed, together with the property of those who relied on it.
I should not, Sir, have dwelt so long on this small circ.u.mstance, if it did not serve to impress the true object of my letter, a _reduction of national expense_. And here let me notice what has often been mentioned, the expense of the civil list. If in this general term of civil list are comprehended the public servants abroad, I freely acknowledge my opinion, that it might be curtailed. But the foreign affairs not being within my line, this sentiment is expressed with all possible deference.
Our domestic civil list consists of two parts. First, that which is engaged in settling and adjusting old accounts; and secondly, that which is employed in present objects. The first is rendered necessary by the confusions which arose before regular systems were established; but it is of a temporary nature, and can never again take place, unless our affairs are suffered to relapse into that irregularity from which they are beginning to emerge. The second, I believe, consists of as few as were ever appointed to perform the business of a nation. For what relates to the expense of both, I must observe, that those who labor for the public are at least to be subsisted; and the proof that their salaries do not amount to more than a decent subsistence, is the difficulty with which men qualified to fill the several offices can be prevailed on to accept them. Shortly after my appointment, a special order was pa.s.sed to defray the expenses of the civil list; but should Congress think proper to repeal that order, I will suspend the payment, and apply the money to take up my notes. But whether the gentlemen of the civil list will continue their services after they know that their salaries are to be withheld, is a question which I shall not agitate.
I have the honor to be, &c.
ROBERT MORRIS.