The Diplomatic Correspondence of the American Revolution Volume XI Part 53

I beg leave to submit the enclosed plan for establishing a National Bank in these United States, and the Observations on it, to the perusal and consideration of Congress.

Antic.i.p.ation of taxes and funds is all that ought to be expected from any system of paper credit. This seems as likely to rise into a fabric equal to the weight, as any I have yet seen or thought of; and I submit whether it may not be necessary and proper, that Congress should make immediate application to the several States, to invest them with the powers of incorporating a bank, and for prohibiting all other banks, or bankers, in these States, at least during the war.[32]

I have the honor to be, &c.

ROBERT MORRIS.

FOOTNOTES:

[32] See the _Plan of the National Bank_ here mentioned, and also the _Observations_ on it, in _John Jay's Correspondence_, Vol. VII. p.

444.

TO THE PRESIDENT OF CONGRESS.

Philadelphia, May 23d, 1781.

Sir,

As I have heard in times past, that the treasury has frequently been in want of hard money, to comply with engagements made with the approbation of Congress, and sometimes obliged to obtain it on terms inconsistent with the dignity of government, and not very consonant to the public interest, I would wish to guard against the like inconveniences by importing from foreign countries a supply at least sufficient to pay rents of the houses and offices necessarily employed for the Continental service; also to answer, as far as may be, the calls for secret service. And even if I could devise the means of obtaining it, I should suppose it would be agreeable to bring such sums as may answer other valuable purposes; but as it cannot be imported but at the risk of being captured by the enemy, and the danger of the elements, you will perceive the necessity of my being authorised by Congress to enter on and execute this business at the risk, and for account of the Continent, on the best terms in my power.

The sum may be limited if thought needful; although I should suppose it is not possible in our circ.u.mstances to obtain too much; yet the sum to be risked in any one bottom may very properly not exceed a certain amount in a line of battle ship or frigate, and a smaller in any one merchant vessel. Should Congress think proper to authorise these measures, as I hope they will, the private journals will be most proper to insert the proceedings in; as a want of secrecy may endanger the money.

I have the honor to be, &c.

ROBERT MORRIS.

TO ALEXANDER HAMILTON.

Philadelphia, May 26th, 1781.

Sir,

It is some time since I received your performance, dated the 30th of April last. I have read it with that attention, which it justly deserves, and finding many parts of it to coincide with my own opinions on the subject, it naturally strengthened that confidence, which every man ought to possess to a certain degree in his own judgment.

You will very soon see the plan of a bank published, and subscriptions opened for its establishment, having already met with the approbation of Congress. It only remains for individuals to do their part, and a foundation will be laid for the antic.i.p.ation of taxes and funds, by a paper credit that cannot depreciate. The capital proposed fell far short of your idea; and, indeed, far short of what it ought to be; but I am confident if this is once accomplished, the capital may afterwards be increased to almost any amount. To propose a large sum in the outset, and fail in the attempt to raise it, would be fatal. To begin with what is clearly within our power to accomplish, and on that beginning to establish the credit, that will inevitably command the future increase of capital, seems the most certain road to success.

I have thought much about interweaving a security with the capital of this bank, but am apprehensive it would convey to the public mind an idea of paper being circulated on that credit, and that the bank in consequence must fail in its payments, in case of any considerable run on it; and we must expect, that its ruin will be attempted by external and internal foes. I have, therefore, left that point to the future deliberations of the Directors of this bank, to whom in due time, I shall communicate your address.

I esteem myself much your debtor for this piece, not merely on account of the personal respect you have been pleased to express, but chiefly on account of your good intentions; and for these, and the pains you have taken, I not only think, but on all proper occasions shall say, the public are also indebted to you.

My office is new, and I am young in the execution of it.

Communications from men of genius and abilities, will always be acceptable, and yours will ever command the attention of, Sir, your obedient humble servant,

ROBERT MORRIS.

TO MAJOR GENERAL PHILIP SCHUYLER.

Philadelphia, May 29th, 1781.

Dear Sir,

You will probably have heard that Congress have done me the honor to bestow their confidence, by appointing me to the important station of Superintendent of Finance of North America; a station that makes me tremble when I think of it, and which nothing could tempt me to accept, but a gleam of hope, that my exertions may possibly retrieve this poor distressed country from the ruin with which it is now threatened, merely for want of system and economy in spending, and vigor in raising the public moneys. Pressed by all my friends, acquaintances, and fellow citizens, and still more pressed by _the necessity_, the _absolute necessity_, of a change in our monied system, to work salvation, I have yielded, and taken a load on my shoulders, which it is impossible to get clear of without the faithful support and a.s.sistance of those good citizens, who not only wish, but will promote the service of their country. In this light I now make application to you, Sir, whose abilities I know, and whose zeal I have every reason to believe. The object, however, before me, is not of such magnitude as to require any great exertion of either at present, although it is of sufficient importance to induce the invocation.

General Washington is distressed for want of an immediate supply of flour, and as I am not even yet fairly entered on the execution of my office, and when I do, have to meet an empty treasury, and a totally exhausted credit, it must be some time before funds can be created or money be commanded for any purpose whatsoever; and as I do not know any gentleman of such resources as General Schuyler, he seems the most likely of all men to give a.s.sistance under the present circ.u.mstances.

I must, therefore, request that you will take the most speedy and effectual measures to deliver to the order of his Excellency, General Washington, one thousand barrels of flour, which I am sure you will purchase and cause to be transported on the most reasonable terms that are practicable. No time must be lost, but the flour must be sent down in the parcels as fast as procured. The Pennsylvania Bank had all the flour they supplied to the army, secured with outside lining hoops on each head of every barrel, and the weight and tare marked on each cask. If you were to cause this to be done, and add to the mark your name, it would save a waste of flour, oblige the Issuing Commissary to take notice of an account for the weights as well as barrels, and teach the army to think that they are indebted to your exertions for a seasonable supply.

I have the means of raising hard money to pay for this flour, and the charges on it; but the longer time I am allowed to do it, the more I can consult the public interest. I take it for granted, that you can, upon your own credit and engagements, either borrow the money for a few months, necessary to accomplish this business; or that you can make the purchases on such credit, without giving higher prices; and for your reimburs.e.m.e.nt, you may either take me as a public or a private man, for I pledge myself to repay you with hard money wholly, if required, or part hard and part paper, if you so transact the business. In short, I promise, and you may rely that no consideration whatever, shall induce me to make a promise, that I do not see my capability to perform, that I will enable you to fulfil your engagements for this supply of flour, if you find it convenient, you may draw on me for hard money or paper, payable in such sums, and at such times, as you can conceive may not be inconvenient, judging by what I have said on this subject. Should good bills on France be wanted, at about ---- hard money your currency, for five livres tournois, I will furnish them, drawn or endorsed by myself, for the whole, or any part of this purchase.

I hope we shall hereafter supply our army by contracts, and your information and observations on this subject would be very obliging.

Perhaps if you are not fully employed otherwise, you might start some worthy man under your patronage, that might render essential service to the public, with proper advantage to himself and connexions in this line.

I am, Dear Sir, yours, &c.

ROBERT MORRIS.

_P. S._ Remember, that I put absolute dependence on you for this one thousand barrels of flour, and it must be sent to the army directly.

TO THE PRESIDENT OF CONGRESS.

Philadelphia, June 4th, 1781.

Sir,

Having been informed by several members of Congress, as also by his Excellency, the Chevalier de la Luzerne, that it was determined to put the management of the moneys lately granted by his Most Christian Majesty under my direction, in order that they might be punctually applied to the purposes for which the grant was made, viz. a vigorous prosecution of the present campaign; I had, in conjunction with the Minister of France, formed some arrangements for drawing part of this money into immediate use; but, on applying to the Secretary of Congress, I do not find that any act has been pa.s.sed giving me authority over the moneys so granted; consequently, all proceedings must stop until the previous steps are taken by Congress.

I have the honor to be, &c.

ROBERT MORRIS.

TO B. FRANKLIN.

Philadelphia, June 8th, 1781.

Dear Sir,

In a private letter, which I did myself the honor to write you on the 6th instant, I announced the appointment I have received from the honorable Congress, to the office of Superintendent of the Finances of the United States of North America; and I now beg leave to address you in my official character.