The Diplomatic Correspondence of the American Revolution Volume VII Part 42

In every point of view, therefore, that we can consider the subject, the advance I have mentioned must appear alike beneficial. If the Governor of Cuba, or any other person, were duly authorised, stipulations might even now be entered into for furnishing all necessary supplies of provisions to the fleets and armies of his Catholic Majesty, which would certainly facilitate their operations.

The advance of money also by Spain would enable the fleets and troops of France to subsist cheaper than at present, because it would tend to raise the exchange here, which is now too low.

Your own good sense will suggest to you many other most forcible arguments, as well as the proper time and manner of applying them. It is necessary to mention, that the sum of five million dollars may, perhaps, be sufficient for our present emergencies; but if a greater sum can be obtained, we shall thereby become more extensively useful.

Whatever the grant may be, it will be proper that it be sent hither in some Spanish ships of war from the Havana, or advanced to us there; in which latter case, we will devise the means of bringing it away.

Whether to ask for subsidies, or loans, as well as the terms on which either are to be obtained, these, Sir, are objects, which you are fully competent to determine upon. I have only to wish that your applications may meet with that success, which I am confident you will not fail to merit. As the means of facilitating your views, I shall apply to the Minister of his Most Christian Majesty here, to write on the same subject to the French Amba.s.sador at Madrid. The generous conduct of France gives just ground of reliance on her friendly a.s.sistance; and you are too well convinced of this, not to act in the most perfect harmony with the servants of that Court, especially on an occasion so important as the present. I need not stimulate your activity, by observing how precious is every moment of time in those affairs, on which the fate of Empires depends; nor need I suggest the importance of a treaty, and particularly a subsidiary treaty with Spain, in that moment, when the judgment of Europe is to be pa.s.sed on the fate of America. For, however impracticable it may be to subdue us, it is undoubtedly of moment to hasten the approach of that period, when the acknowledgment of our independence shall give the blessings of peace to so many contending nations. To spare the present lavish effusion of blood and treasure, is a serious object with those, who feel, as you do, the emotions of benevolence; and I am confident, that the patriotism, which has inspired your conduct, will prompt you to obtain a peace honorable for your country and advantageous to her friends. The only probable method to effect these things, is a thorough union of forces and resources, to reduce the pride and power of that aspiring nation, whose ambition embroils the universe.

With all possible respect, I have the honor to be, &c.

ROBERT MORRIS.

ROBERT MORRIS TO JOHN JAY.

Philadelphia, July 7th, 1781.

Dear Sir,

This will accompany my former letter of the 4th instant, which you will perceive to be so written, as that it may be shown, if necessary, to the Spanish Minister. You will make such use of it as prudence may dictate. I would gladly now give you details of our situation and plans for reforming it, but I have not yet sufficiently obtained the one, nor matured the other. Whenever I am in capacity to apprize you fully of these things, you shall hear from me at large on the subject. At present I can only inform you that a sum of hard money will, from particular circ.u.mstances, afford us relief and turn to our advantage far beyond what might be supposed from the amount. Although I have stated the demand at five millions, yet I beg you will take as much as you can obtain, though it be far short of that sum. But at the same time, I repeat, that a very small one is not worth the acceptance. Knowing our wants to be great, you will judge properly as to what we can accept consistently with our dignity.

I enclose you a cypher, and with the duplicate of my letters I will send you another. Should both arrive safe, you will be so kind as to hand one to Mr Carmichael, letting me know which you keep and write by.

I have the honor to be your Excellency's most obedient and humble servant,

ROBERT MORRIS.

ROBERT MORRIS TO JOHN JAY.

Office of Finance, July 9th, 1781.

Dear Sir,

Observing by your correspondence with Congress, that you are put to a good deal of expense by American seamen arriving from captivity at Cadiz, where they also grow very troublesome, I offer the following proposal to your consideration. Authorise Mr Harrison, or whoever may be your agent at Cadiz, to enter into contracts with such Americans as present themselves for the bounty of their country, to proceed from Cadiz, in such ship or vessel as he may provide for the purpose, for such port within the United States as he may appoint, at the monthly wages of six or eight Spanish dollars, to be paid as soon after their arrival in America as the cargo of the vessel shall be landed. After they sign such contract, he is to supply their wants sparingly, until he collects a sufficient number to man a suitable vessel, which he may procure either by charter or purchase, whichever may be in his power, and shall appear most eligible at the time. If he charter, it should be on such terms that the owners risk their vessel, putting in their own master, and, if they choose it, part of the seamen. The vessel to be loaded with salt for account and risk of the United States; freight so much per bushel or so much per ton to America and back. But in that case, let it be always a condition, that the vessel may be ordered from the first place she arrives, to any one other port in America; because, it may happen that she will arrive where there cannot be got a cargo to load her back, or where the salt would be of no use.

If your funds will admit of it, and vessels can be furnished cheap, this would be the more eligible mode of doing the business, because I could then either send the vessels back, or sell, as might suit best.

In case of purchase, they should be fast sailers, with good sails and rigging, well found and fitted, and if armed, so much the better.

Honest, active, industrious, and faithful masters must be provided for these vessels, and they must all come addressed to my order, directed for this port, with liberty however to get into any safe port they can. The master to give me immediate notice of his arrival, when I shall give proper orders, or probably have them previously ready. An account of the moneys advanced to each person on board these vessels, as well as the cost and outfit of the ship and cost of the cargo, must be sent me by each vessel, in order that proper deductions may be made from the people, and proper credits be given for the costs. You will observe, I am duly empowered by Congress to export and import for account and risk of the United States; and I think this plan so likely to benefit the public, that I very freely give my sanction to it, provided you can find the money. Your agent must give me regular advice of every expedition, and inform you also whenever he commences them. When a ship is provided and a master appointed, all the men should sign articles for the voyage in the common form.

I am, Dear Sir, &c.

ROBERT MORRIS.

ROBERT MORRIS TO JOHN JAY.

Philadelphia, July 13th, 1781.

Dear Sir,

I enclose you in this packet the plan of a national bank, which I have been induced to adopt for the following reasons. The issuing of a large paper medium converted the coin of the country into a commodity, so that much of it was exported and the remainder concealed. The depreciation of our paper has so lessened our currency, that there is not a sufficiency for commerce and taxation, without creating by the latter such distress in the former, as must injure every order of men in the community. It is necessary, therefore, to fill up the deficiency in such proportion as it may be called, and with such medium as may preserve its value.

I have already in my letter of the 4th instant stated the want of ability in the people to lend, and of credit in the government to borrow. An additional reason, therefore, for establishing a bank is, that the small sums advanced by the holders of bank stock may be multiplied in the usual manner by means of their credit, so as to increase the resource, which government can draw from it, and at the same time, by placing the collected ma.s.s of private credit between the lenders and borrowers, supply at once the want of ability in the one, and of credit in the other.

An additional reason for this inst.i.tution is, to supply the place of all our other paper, which it is my design to absorb as soon as possible, and thereby to relieve the people from those doubts and anxieties, which have weakened our efforts, relaxed our industry, and impaired our wealth. But this must not be done, without the subst.i.tution of other paper, for reasons which I have already a.s.signed, and because that our commerce would suffer for the want of that facility in money transactions, which paper alone can give.

Finally, one very strong motive, which has impelled my conduct on this occasion, is to unite the several States more closely together, in one general money connexion, and indissolubly to attach many powerful individuals to the cause of our country, by the strong principle of self-love, and the immediate sense of private interest. It may not be, perhaps, improper to show and explain this plan to the Spanish Ministry. They will then perceive how, by an advance of money, they may in this instance increase our resources and our efforts in a degree much superior to the immediate sum, and they may be a.s.sured, that on a variety of other occasions, similar benefits will result from it. I take this opportunity, however, to observe to you, that I do not mean this, or any other communication, should be absolutely made. It is, on the contrary, my unalterable opinion, that a prudent Minister on the spot should be left to act with large discretionary power, being always furnished with such details, as will enable him to judge with propriety, and act with decision.

It will undoubtedly strike your observation, that the sum of four hundred thousand dollars is very small, considering the object which it is my design to effect. I acknowledge that it is so, and when I tell you, that I was very apprehensive that we should be unable to fill a larger subscription, and when I add, that it is far from certain we shall get all of this moderate sum, you will see still more clearly the force of those observations which I have already made. But it is weakness to be deterred by difficulties from a proper pursuit. I am, therefore, determined that the bank shall be well supported, until it can support itself, and then it will support us. I mean that the stock, instead of four hundred thousand dollars, shall be four hundred thousand pounds, and perhaps more. How soon it will rise to that amount, it is impossible to foresee. But this we may venture to a.s.sert, that if a considerable sum of specie can be speedily thrown into it, the period when its force and utility will be felt and known is not far off.

After I had determined to make the application to the Court of Madrid, which is contained in my letters, it was my next object to obtain for you such support as might materially favor your operations. For this purpose I have written to Dr Franklin, and have told him, that you would receive by this conveyance, and forward to him, copies of those resolutions and letters, which may be necessary to explain my appointment and powers. I lay this task on your Secretaries, because the want of clerks in my office, and the many things to be done, together with the short time allowed me by the departure of the vessel, prevent me from having duplicates made out. I have written to the Doctor to apply to the Court of Versailles, to further your negotiations with their influence. I am confident his application will not be unsuccessful; but how you may derive most benefit from the cooperation of the French Court, you best can tell. Major Franks, therefore, is instructed to take your orders for Pa.s.sy, and return thence to Philadelphia; so that you will have an opportunity of communicating fully with the Doctor on any subject you think proper.

You may write to me by any opportunity, if this should arrive safe, because our cypher will prevent you from being exposed to interested or impertinent curiosity.

To obtain for you still further a.s.sistance, I have applied (in the absence of M. de la Luzerne, who is gone to camp,) to M. de Marbois for letters to their Amba.s.sador at the Court of Madrid. I have stated my views, my hopes, and wishes, with that candor which is proper on such occasions, and which I wish to preserve on all occasions. M. de Marbois has, in consequence, written a letter on the subject, in which he informs the Amba.s.sador of our conversation, states the disorders of our finances, and makes polite mention of my operations, my designs, and abilities, as well as the confidence reposed in me by Congress, and by the people at large. He details the proposed plans, and particularly that of the Bank, and shows forcibly the advantages, which would result from a considerable advance of money by Spain. He a.s.signs also very proper reasons to show why it ought to be considerable, if it be made at all. The great interest of France in this business, as well as the open and candid manner, which has marked all transactions I have hitherto had with the Minister of that nation, induces me to believe that this letter is more than a compliment, and that as it is intended, so it will operate to produce the desired effect.

That nothing in my power might be wanting to the success of a business, which you must be convinced I have very much at heart, I have also applied to Don Francisco Rendon, who at present acts here for Spain, and I have every reason to believe that he will write to the Spanish Court such a letter as I wish. But after all, much, my Dear Sir, must depend on your prudence, your activity, and your attentions to incline, to stimulate, to lead the Ministry into our views, to remove the obstacles, surmount the difficulties, and crush the procrastinations, which r.e.t.a.r.d the completion of an object so essential to your country. I am happy to add, that I have the utmost confidence in your abilities, your industry, and integrity.

There is a possibility that money may be obtained from Portugal, and though I confess there is not a very solid ground to build on, and though it must be owned that appearances are against us, yet I think it best not too much to trust appearances, either favorable or unfavorable, and to leave nothing unattempted which may be useful. It was for reasons of this sort that my letter of the 9th instant, which I enclose you a copy of, was written to Congress. In consequence of it, on the 11th they pa.s.sed a resolution, of which I also enclose you a copy, and have only to add, that you will act entirely according to your own discretion on this occasion. I cannot pretend to know the situation of the Court of Lisbon, and therefore I will not attempt to measure out a line of conduct to be pursued there. You are, for every reason, more competent to this business than I am, and therefore I submit it to your management entirely.

You will observe that a material part of my letter of the 9th remains unnoticed by Congress. The Committee had not yesterday reported upon it. Should anything be done previous to the departure of this vessel, you shall know it. But you are so well acquainted with the delays incident to public a.s.semblies, that you will not be surprised if you hear nothing further on the subject.

It is unnecessary for me to make any other mention of Major Franks, except to inform you, that after a critical examination into his conduct by a court of inquiry, he was honorably acquitted of all improper connexion with his late General.[29] For the rest, you are perfectly acquainted with him, and will therefore take that notice of him which he deserves.

I am, Dear Sir, your most obedient and humble servant,

ROBERT MORRIS.

FOOTNOTE:

[29] Major Franks was Aid to General Arnold at the time his treachery was discovered, but he was honorably acquitted from all suspicion of having any knowledge of Arnold's designs.

_Plan of a Bank, referred to in the preceding Letter._

1. That a subscription be opened for four hundred thousand dollars, in shares of four hundred dollars each, to be paid in gold or silver.

2. That the subscription be paid into the hands of George Clymer and John Nixon, or their agents.

3. That any subscriber of less than five shares, pay the whole sum on the day of his subscription.

4. That every subscriber of five shares or upwards, pay one half the sum on the day of his subscription, and the other half within three months of that day.

5. That every holder of a share shall be ent.i.tled to vote by himself, his agent, or proxy, properly appointed, at all elections for directors, and that he have as many votes as he holds shares. And that every subscriber may sell and transfer his share or shares at his pleasure, the transfer being made in the bank book, in presence and with the approbation of the proprietor or his lawful attorney, the purchaser then to become ent.i.tled to the right of voting, &c.

6. That there be twelve directors chosen from among those ent.i.tled to vote, who at this first meeting shall choose one as president.