The Diplomatic Correspondence of the American Revolution Volume XI Part 67

CIRCULAR TO THE GOVERNORS OF THE SEVERAL STATES.

Office of Finance, October 19th, 1781.

Sir,

I am now to address you on a subject of very great importance. I have to detail some facts, which will demand the most serious attention from every Legislature, and from every public officer in the United States. It is my determination to administer the affairs intrusted to my care according to plans, which are founded in sincerity and truth.

Convinced of the folly of our enemy, in supposing that any considerable body of men in the United States are opposed to the Revolution, I am persuaded that, in order to remove the greater part of our difficulties, the first proper step is to state them fully to the people through their representatives. It shall, therefore, be a part of my study to prepare every transaction for the public eye, so that the meanest individual may be in due time informed of those affairs, in which, as a free citizen, he is interested. The various reports, which have been circulated, the publications in the several gazettes, and even letters from some who ought to have known better, all these things have conspired to infuse an opinion, that every power in Europe is favorable to us; that great sums of money are already advanced to us, and that still greater may be obtained. Whatever may be the fate of my administration, I will never be subjected to the reproach of falsehood or insincerity. I, therefore, take the earliest moment, in which I am permitted, to make those communications, which will give an insight into our real situation.

With respect to the situation and politics of Europe, it is neither my business to detail them, nor am I in a capacity to do it with certainty. But this, at least, is certain, that the disposition of the European powers, however friendly, has been too much relied upon. As a proof I need only observe, that not a single State has acknowledged our independence except France, although our alliance with that respectable monarchy has now subsisted nearly four years. Yet that monarchy is certainly the first in the world. It is in the closest connexion with Spain. Spain has long been engaged in the war, and still longer solicited to form a union upon the basis of the treaty with France. The armed neutrality, which gave such splendid hopes to many, has not yet produced the benefits expected. I will not proceed on the ground of conjecture, nor is it necessary for me to dwell longer on our political state with respect to foreign powers. But as there is little reason to expect, so I hope there is no American, who would wish an alliance with any empire on earth, until they shall be so sensible of our importance, as to treat on principles of equality.

The public opinion, as to the conduct of other Princes and States, has greatly injured us by relaxing our exertions. But the opinion as to pecuniary aid has been still more pernicious. People have flattered themselves with a visionary idea, that nothing more was necessary, than for Congress to send a Minister abroad, and that immediately he would obtain as much money as he chose to ask for. That, when he opened a loan, hundreds would run to see who should have the honor of subscribing to it, and the like. But surely a moment's reflection should have convinced every reasonable man, that, without the clear prospect of repayment, people will not part with their property. Have the efforts in this country been so successful as to ground any hopes from abroad? Or, is it to be supposed, that foreigners will interest themselves more in our prosperity or safety, than our citizens? Or, can it be believed, that credit will be given abroad before solid funds are provided at home? Or, could it be imagined, that the disorders necessarily incident to a great revolution, would be considered as a better source of trust and confidence, than the regularity and consistency of ancient establishments?

The Congress, conformably to the public wish, have appointed Ministers, requested grants, and opened loans. In Holland they have got nothing, and in Spain but very little. Loans were expected from individuals in Holland, but nothing of that sort has been, or probably will be, obtained. Loans were not expected in Spain, unless from the King, and from him they have been solicited with but little success.

The distressed situation of public affairs forced the Congress to draw bills of exchange on their Ministers. Some were drawn on France, some on Spain, and some on Holland. The first were honored and paid, the others were accepted, but recourse was finally had to the Court of France for the payment of those also. They were drawn at long sight.

The sales were slow. They were remitted from time to time, and every opportunity afforded the Ministers of the United States to obtain the moneys for discharging them, but in vain. Of consequence, these bills have been regularly referred to the Court of France for payment; and this has done us injury, by antic.i.p.ating the aid, which France has been disposed to afford us, and at the same time has justly alarmed and greatly embarra.s.sed the French Ministry.

These things it appears necessary that you should know, and your Legislature will undoubtedly draw the proper inferences. They will see how much has been suffered by delaying to call forth the resources of our own country, and relying on the empty bubbles of hope, instead of the solid foundations of revenue. They will, I trust, clearly see, that all their hopes and expectations are narrowed down to what France may give or lend. But here, as in other cases, delusion takes place of reality. We flatter ourselves with ideal prospects, and are only convinced of our folly, by the fatal crisis of national distress. In order that you may clearly understand the succor afforded by France, I enclose an account extracted from a statement lately, furnished to Congress by the Minister Plenipotentiary of his Most Christian Majesty.

You will observe that his Majesty granted to the United States a subsidy for the current year of six millions of livres; and on a representation of our distresses, he was pleased to become security for a loan to be opened on our account in Holland. And when it appeared, that there was but little probability of obtaining any money there in season, he further agreed that the sum to be borrowed should be advanced for us, in the first instance, from the royal treasury.

Thus the gift and the loan together amount to sixteen millions of livres, which would, if in this country, be equal only to two millions nine hundred and sixtytwo thousand nine hundred and sixtytwo dollars, although at the rate of estimating dollars in France, it is there equal to three millions and fortyseven thousand six hundred and nineteen dollars. But at the highest rate of exchange, which has. .h.i.therto taken place, this sum if drawn for, would have amounted to no more than two millions five hundred and sixty thousand dollars. I have been thus particular with respect to the amount of this sum, because the difference of currencies very often tends to deceive those to whom their real value is not a familiar subject of attention.

The enclosed account is in livres, and the two first articles contain the total of the grant and loan, amounting to sixteen millions of livres. The remainder contains the deductions to be made; the two first articles whereof, amounting to two millions three hundred thousand livres is for the payment of the bills drawn on France, Spain, and Holland, which I have already mentioned, the produce of the sales whereof had been applied to the public service long before my appointment. The next article, being two millions of livres, is appropriated to the payment of the interest bills; wherefore, no part of it can be applied to other purposes. The fourth article, I need say nothing of here, as it has long been in the mouths of everybody. The fifth and sixth articles are for those stores, which were laden on board of four transports by order of Colonel Laurens, three of which have safely arrived, and the other put back in distress. The seventh article, is in consequence of the loss of that valuable ship, the Marquis de Lafayette, which contained a great number of public stores, the replacing of which is necessary for the army and its operations, and which will amount to that sum.

The last article contains the amount of moneys deposited to answer my drafts, which have been made from time to time, and the produce appropriated to the service of the current year. On the whole, there remains a balance of three millions and sixteen thousand four hundred and ninetynine livres. This, with the sum brought by Colonel Laurens, may be considered as of the value of about one million of dollars, which is the utmost; for it would exceed that only by twentyone thousand five hundred and seventyfour dollars, if it were now in this country.

Thus then you see the extent of that pecuniary succor, which has filled the minds of all with such teeming expectation, is narrowed down to one million of dollars. But by the best accounts and estimates I have been able to procure, this war has. .h.i.therto cost about twenty millions annually. I do indeed expect that the future expenditures will be greatly curtailed; but it must be remembered that the most rigid economy has its bounds, and that it cannot exist without the punctual performance of those engagements, on which the first steps towards it must depend. As soon as the proper estimates for the next year can be made out, the demands founded upon them will be stated, and I shall shortly advertise for contracts, as the most effectual mode of husbanding our resources. I feel it to be my duty, however, to observe, that a note this day sent to Congress, of some of my princ.i.p.al engagements for money, amounts to upwards of two hundred thousand dollars. Yet the calls for it from every quarter are incessant.

I would gladly quit the subject of foreign supplies and expectations here, but it is necessary that the States should know all, and I should not answer the views of Congress, if I did not add, that the Court of France place the aid now afforded us among the number of those extraordinary efforts, which cannot be repeated. The declaration, that no more pecuniary a.s.sistance can be afforded to us, is as plain as language will admit of; and although the applications may, and probably will, be made by our Ministers to the Court of Versailles, yet surely no prudent man would form any reliance on such applications, in the face of such a pointed and express a.s.surance to the contrary; and especially, when, to every request a short answer can be made, by asking what we have done for ourselves. Sir, I must speak to you most plainly. While we do nothing for ourselves, we cannot expect the a.s.sistance of others.

This is a very painful subject to dwell upon, but a consideration of great magnitude remains behind, and sooner or later it must come forward. Prudence, therefore, bids us examine it now, and provide for it in season. The neglect in funding the public debt, has introduced a practice of issuing Loan Office certificates, for the interest due on other Loan Office certificates. This I have absolutely forbidden, nor will I ever consent to it. Such acc.u.mulation of debt, while it distresses the public, and destroys its credit, by no means relieves the unfortunate individual, who is a public creditor; for if revenue is not provided, increasing the certificates would only lessen their value. This would be such a fraud as would stamp our national character with indelible marks of infamy, and render us the reproach and contempt of all mankind. It is high time to relieve ourselves from the ignominy we have already sustained, and to rescue and restore the national credit. This can only be done by solid revenue.

Disdaining, therefore, those little timid artifices, which, while they postpone the moment of difficulty, only increase the danger and confirm the ruin, I prefer the open declaration to all, of what is to be expected, and whence it is to be drawn. To the public creditors, therefore, I say, that until the States provide revenues for liquidating the princ.i.p.al and interest of the public debt, they cannot be paid; and to the States, I say, that they are bound by every principle held sacred among men to make that provision.

I have gone through the task, which I proposed to myself in writing to your Excellency this letter, which I pray you to communicate to the Legislature of your State. I hope the Congress will soon be able to transmit their requisitions, and I shall endeavor that those be as moderate as possible. But I must pray that every man, whether in public or private life, will seriously consider the importance of complying with these requisitions. It is not by the brilliant successes of war, the splendor of conquest, or the shouts of victory, that a wise ministry are to be affected. The superiority of national resources is the sure ground on which to hope for success, and that superior resource steadily and perseveringly applied, must eventually attain its objects. It is for these reasons, that the enemy have hoped everything from the derangement of our finances; and on the other hand, as I am well informed, it is from the establishment of a national bank, and the forming of contracts to supply our armies, that they have the greatest apprehensions. By the bounty of the Almighty, we are placed in a situation where our future fate depends upon our present conduct. We may be happy or miserable, as we please. If we do our duty now, the war will soon be brought to a close; if not, it may last for many years, and what will then be its termination, it is not in human wisdom to foresee. Thoroughly convinced that the enemy must ask for peace, when we are in a condition vigorously to prosecute the war, and that we shall be in that condition, whenever our affairs are reduced to order, and our credit restored, and that for these purposes, nothing more is necessary than a proper system of taxation; I cannot avoid expressing my sentiments on the subject in all the warmth with which they flow from my heart. I hope and pray that the facts, which I have stated, may meet that calm attention, which is due to their importance, and that such measures may be taken as shall redound to the honor and interest of our country.

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

ROBERT MORRIS.

TO MAJOR GENERAL GREENE.

Office of Finance, November 2d, 1781.

Sir,

Your favor of the 17th of September last has been delivered to me by your Aid, Captain Pierce. Your recommendations and his own character, give him a double t.i.tle to every mark of attention.

I hope it is unnecessary to make a.s.surances of my disposition to render your situation both easy and respectable. I am sure it is unnecessary to remark, how inadequate the provisions have been, which the States have hitherto made. At least, it is unnecessary to you.

Much less need I display the detail of expenditures, which have been requisite for the accomplishment of that happy event, which has taken place in Virginia.

I have neither forgotten nor neglected your department. I have done the utmost to provide clothing, arms, accoutrements, medicines, hospital stores, &c.; and I flatter myself that you will, through the different departments, receive both benefit and relief from my exertions. I have detained Captain Pierce a day, in order to make up with infinite difficulty, one thousand pounds Pennsylvania currency in gold, which he is the bearer of, and which will, I hope, be agreeable and useful. You have done so much with so little, that my wishes to increase your activity have every possible stimulus. I hope soon to hear that you have gathered fresh laurels; and that you may wear them as long and as happily as they have been speedily and worthily acquired, is the earnest wish of yours, &c.

ROBERT MORRIS.

END OF THE ELEVENTH VOLUME.