Yale University Library

YALE UNIVERSITY
LIBRARY

THE FINANCIER

AND THE

Finances of the American Revolution

BY

WILLIAM GRAHAM SUMNER %• •
PROFESSOR OF POLITICAL AND SOCIAL SCIENCE IN YALE UNIVERSITY

'* It is of the nature of expedients to increase the evils which they
postpone" Report of 1785
" Experience has taught me to be cautious, even in doing good "
R. Morris

IN TWO VOLUMES
Vol. II,

NEW YORK
DODD, MEAD, AND COMPANY
18,92

Copyright, 1891,
By Dodd, Mead, and Company.

John Wilson and Son, Cambridge.

CONTENTS TO VOLUME II.

CHAPTER XVI. page
Loan by Spain ; Attempt to get Specie from Ha
vana ; Remonstrances of France against undue
Dependence on her ; Jay's Distress ; Gillon and
THE Supplies from Holland ; the End of 1781 . . i
CHAPTER XVII.
The Bank of Pennsylvania and the Bank of North
America  21
CHAPTER XVIII.
Exchange, Mint, and Coinage  36
CHAPTER XIX.
1782: Peremptory Refusal of Aid by France: Morris's
Discontent ; Charges against him ; Arthur Lee's
Accounts ; Morris expected to Default ; the
Loan of 1782 in Holland; State Borrowing;
Contracts  48
CHAPTER XX.
The Impost ; Taxation until 1789  64-

iv Contents.

CHAPTER XXL page
Morris's Unpopularity in the Southern States ; More
Heterogeneous Tasks ; the Memorial of the
Army Officers; the Overdraft of January, 1783;
More Appeals to France  81
CHAPTER XXII.
Morris Resigns; Consents to continue in order to
PAY off the Army ; Issues Notes for that Pur
pose ; Fault-finding with him ; Last Vain Appeals
to France ; the Loan in Holland ; the Over
draft OF 1784; Morris quits Office; the Subse
quent Organization of the Treasury  94
CHAPTER XXIII.
Review and Summary of Morris's Administration ; the
Cost of the War  125
CHAPTER XXIV.
The Burden of the War upon the People  135
CHAPTER XXV.
The Notes of Robert Morris  ,.„
CHAPTER XXVI.
Morris's Business Enterprises and Lawsuits 178^-
'793  '. . . 162
CHAPTER XXVII.
The Bank War of 1785-1786 . . o
 170
CHAPTER XXVIII.
The Commercial Convention and the Constitutional
Convention . . .  193

Contents. v
CHAPTER XXIX. PAGE
The Accounts of Robert Morris as Agent of the
State of Pennsylvania, as Superintendent of Fi
nance, AND with the Old Committee of Commerce 205
CHAPTER XXX.
Mqrris's Social Position and Relations  221
CHAPTER XXXI.
Morris in the Senate of the United States .... 230
CHAPTER XXXII.
The Federal Capital  235
CHAPTER XXXIII.
Morris's Land Speculations  251
CHAPTER XXXIV.
Was Robert Morris ever Rich?  271
CHAPTER XXXV.
" Confidence has furled her banners, which no longer
WAVE over the heads OF M. AND N."  279
CHAPTER XXXVI.
Morris's Account of his Property; his Wife's Pen
sion; HIS Death; his Family; his Estate .... 293
List of Authorities  307
Index  3i9

THE FINANCIER

and the

FINANCES OF THE AMERICAN REVOLUTION

THE FINANCIER

and the

FINANCES OF THE AMERICAN REVOLUTION.

CHAPTER XVI.
loan by SPAIN ; attempt to get specie from HAVANA ;
remonstrances of FRANCE AGAINST UNDUE DEPENDENCE
ON HER ; jay's distress ; gillon AND THE SUPPLIES FROM
HOLLAND; THE END OF 1 78 1.
WHEN Morris took office, he had eager hopes of
loans from Spain. In July, 1781, he wrote a long
letter to Jay to stimulate him to apply for such loan, and
to provide him with arguments by which he might per
suade the Spanish Minister.^ He proposed that the United
States should help Spain to conquer Florida, the Bahamas,
and perhaps Jamaica. Then he suggested that Nova Sco
tia might be conquered, thus depriving Great Britain of
ship timber, and obtaining a cheap supply of it for Spain.
This would destroy the fisheries of Great Britain, on which
she relied as a " nursery for seamen." England could be
driven out of the Gulf of Mexico, and Spain could open a
port in East Florida for trade with the United States. He
wanted a loan of five million dollars. If more could be
got, more could be done. The United States "do not
mean to beg gratuities, but to make rational requests."
1 Dip. Corr. Rev. vii. 423.
VOL. II. — I

The Financier and the

In a republic, time is sure to be lost before a revenue can
be established. He cannot even reform the expenditure
without money, because he cannot make contracts, and the
people resent taxes while they see the administration loose
and wasteful. Paper money has been used too much;
hence loans are necessary. He was trying to provide Jay
with answers to the reproach that the Americans would
not pay taxes, and to the question why they did not tax
rather than borrow.
In his eagerness to get resources, Morris even suggested
that a loan might be obtained of Portugal. " No chance
ought to be neglected." ^
Jay thought Morris's despatch so good a plea that he
had it translated and submitted in full to the Spanish Min
ister. The latter thought that Morris's requests were very
serious, and called for mature consideration. In fact, the
despatch contained American arguments and American
ideas of what motives ought to influence Spain ; but it did
not contain any offer to Spain which could really act as an
inducement to her. General arguments about the advance
ment of the purposes of the alliance and about weakening
England, although not foreign to her interests and wishes,
did not call out her zeal. She wanted Gibraltar, she
wanted to close the Mississippi, and she wanted to secure
the Gulf of Mexico as a Spanish sea. She wanted to hear
some proposition which would bear upon these definite
desires.^ One of Morris's enterprises, on which he entered with
great zeal as soon as he had taken office, was the importa
tion of specie from Havana. The scheme was that this
specie should be paid for by bills on Paris drawn against
the French loan.
In May, 1781, John Laurens wrote from Paris that the
1 Dip. Corr. Rev. vii. 442. ^ Cf. vol. i. pp. 249, 256.

Finances of the A7nerican Revolution. . 3
Spanish agent was at first very willing to send specie from
Mexico to the United States and give it for bills on Paris ;
but when he heard that the specie had been safely trans
ported to Havana, he refused to furnish the United States
with money which would have to be charged against the
Spanish loan otherwise than by a bill on the treasury of
Spain at six months' sight.^ This accorded with the reso
lution of the Spanish government, which they had stated
at that time, to pay the subsidy to the United States in six
months.^ Before Laurens's letter reached Morris, however,
the latter had entered upon his plan. We have seen above
that he wanted five million dollars or more in a loan from
Spain. He wanted it sent from Havana in kegs.^ July
II , he asked Congress to give him control of the frigate
"Trumbull."* On the 13th he wrote to Franklin about
this plan, and argued earnestly to show how much strength
would be given to America as a member of the alliance, if
this specie could be obtained.^ On the 17th he applied to
the Governor of Havana for ^400,000 in silver, and stated
his reasons for wanting it, which show what he hoped to
gain by this importation of specie when specie was abun
dant and was coming in by way of commerce.® He wanted
to deposit the dollars in the bank which he proposed to
found, thereby doubling its capital and adding to its
power. He goes on to say that Robert Smith has been
appointed agent of the United States at Havana. To him
a bill on France has been sent that he may negotiate it
and ship the money to Morris. Bills on Jay for ^120,381
are also sent to Smith to be deposited with the Governor,
in the hope that he will advance that sum, in confidence
that the court of Spain will give a subsidy of that amount;
1 Dip. Corr. Rev. ix. 231. = See vol. i. p. 225.
8 Dip. Corr. Rev. vii. 434- * State Dep. MSS. 137 , i. 177-
6 Dip. Corr. Rev. xi. 379. ^ See voi. i. p, 98. fg.

The Financier and the

if not, Smith is to contract to repay the Governor in flour.
All this is sent in one of the continental frigates, which also
carries flour to be sold for dollars; Morris also begs that
the usual duties on the exportation of specie may be re
mitted in this case.i On the same day he wrote to Robert
Smith, who had, it appears, been appointed without his
own knowledge or consent, and without salary, — because,
as Morris says, the United States cannot afford to pay any,
and are engaged in reducing salaries, not in making new
ones. He asks him to undertake the negotiation. He
adds a warning with respect to the frigate itself He has
forbidden the captain to cruise ; but if he should fall in
with a good prize on the way, half of it belongs to the con
tinent, and must be remitted in dollars. Finally, he gives
Smith an earnest and anxious warning: "Whatever sup
plies the frigate is absolutely in need of, you must let her
have ; but I entreat that the expenses may be as moderate
as possible, and the best way to secure this is to despatch
her quickly, for the moment they get clear of the salt
water air and feel their land tacks on board, every soul of
them will try to get his hands into your pockets."^
All this project, so eagerly planned, came to naught.
In August there was reason to fear that the " Trumbull "
had been captured, but Morris hoped that the bills had
been thrown overboard in time. He wrote to Paris and
Madrid to stop payment of them.^ This letter was cap
tured by the English and published by Rivingtbn. There
upon several Congressmen called upon Morris to ask why
he had stopped payment of bills drawn by order of Con
gress,* and this was the chief result of his enterprise.
In November another effort was made to import specie
from Havana on the same plan, and in 1782 still another.^
1 Dip. Corr. Rev. vii. 387. ¦>¦ Ibid. 395. 3 iby. ^35
< Ibid. 468. 6 Ibid. vii. 510; xii. 261.

Finances of the American Revolution. 5
Morris desisted from his effort in 1 781, on account of the
arrival of specie obtained by Laurens.^
In the Report of 1785, Morris, referring to his attempts
to sell bills in Havana, says : " At that time there was a
loss of ten per cent on bills sold here ; whereas the demand
for money in Cadiz was such, and such the desire to remit
it thither from Havana, as to promise a considerable gain.
In fact, it appeared by Mr. Brown's report that bills of
indisputable credit might have been negotiated at Havana
for an advance of twenty to thirty per cent, and the ac
counts will show that there was also an advance on the
negotiations from Cadiz to Paris, and from thence to Am
sterdam. If, therefore, the plan had succeeded in all its
parts, ;^400,ooo in Europe would have produced near
^600,000 here, instead of ;^ 3 60,000, — the most which could
otherwise be obtained. But, unfortunately, the credit of
the United States was not so well established at the Havana
as that merchants would hazard the purchase of American
public bills to any considerable amount or at the usual
price." In the same Report the loss of this adventure in 1781 is
stated at ^2,509. In the -quarter ending March 31, 1783,
Brown exported from Havana specie obtained for flour to
the amount of ^72,247, the export duty on which was nine
and a half per cent.
Probably in October Morris received a long despatch
of July 26- from Franklin, about Laurens's visit and the
money recalled from Holland. All of the six millions had
been taken in specie to America, or had been spent in
Europe, and the ten million loan had failed. " By these
means you have really at present no funds here to draw
upon." But, as we have seen, Congress had authorized
Morris on June 4 to use the six millions, whether we are to
1 Dip. Corr. Rev. xii. 44.

6 The Financier and the
understand that Washington drew the bills or that Morris
drew them. The arrival of the specie had been hailed as a
great piece of good fortune; but it was now learned that
iLhad come out of Franklin's six millions, and that the rest
of that had been spent, while many bills had no douJ)t
already been drawn against it. In this month the strain
of the Yorktown campaign was at its greatest. Franklin
ended his despatch by begging Morris to remit to him
before December, when his acceptances would fall due,
" otherwise I shall be ruined with the American credit in
Europe." ^
This last demand was painfully ludicrous, in view of the
situation here. Instead of taking any steps to comply
with it, Morris and Livingston wrote long despatches in
November, urging that France must lend more money .^
Morris's despatch covers thirty pages, and gives a descrip
tion of the situation, a review of the year, and a statement
of the needs of the next year. Bills for two and a half mil
lion livres, which had been given to Beaumarchais in 1779,
drawn for three years, would have to be met in the next
year. Livingston argued eagerly to Franklin that France
must advance more money. " The total abolition of paper,
the length of the war, the restricted commerce we have
carried on for the first five years of it, the arrears of debt,
and the slender thread by which public credit hangs, put
It totally out of our power to make any great exertions
without the immediate supply of money. Taxation will
be earned as far as it can go, but this will fall very far
short of our wants. The richest nations in Europe, unable
to carry on a war by taxation only, are compelled to bor
row. How then will it be expected that a nation which
has had every difficulty to struggle with, - an enemy in the
heart ofits country, and all its considerable towns at one
^ Dip. Corr. Rev, xi. 407. •¦= Ibid. xii. 27, 52.

Finances of the American Revolution. 7
time or another in their possession, a superior navy on its
coast, and the consequent ruin of agriculture and com
merce, — how, I say, can it be expected that such a nation
should find resources within itself for so long and bloody
a war? . . . Surely it is not possible that France, after hav
ing done so much for us, after having brought us within
view of the desired haven, should oblige us to lose the ad
vantage of all she has done. And yet, be assured that the
most serious consequence may attend her stopping her
hand at this critical time. Public credit, which is growing
very fast, will drop to the ground. . . . You are perfectly
acquainted, sir, with the natural resources of the country.
You know the value of our exports and the security they
afford for any debts that we may contract. . . . Congress
are preparing for an active campaign. They have directed
eight millions of dollars to be raised by a tax. There is
not, however, the least idea that this, or even one half of
it, will be collected in the time specified. You will not,
therefore, suffer the court to deceive themselves by hopes
of exertions founded on this measure, but urge again and
again the absolute necessity of supplying money." '
In November Morris and Luzerne were engaged in a
controversy as to whether Morris had drawn bills beyond
the limit allowed him by the Minister. Morris was in the
utmost financial necessity. The best answer he could
make was : " I shall not dwell on the consequences of my
efforts: enough of them are known to speak for them
selves, and I leave to your knowledge and observation
the comparison of our public affairs now with what they
were exactly six months ago.^
In September Jay wrote to Franklin that he was sure
that Morris would abandon " the singular policy of draw
ing bills without previous funds." ^ Morris did not aban-
1 Dip. Corr. Rev. iii. 200. = Ibid. xii. 23. ' Ibid. viii. 23.

8 The Financier and the
don it, however, because he had no other resource than
his hopes of what might be obtained in Europe. The
whole cause thus came to hang upon the European aid,
and that meant upon Franklin's influence with the French
court. There had been a promise that no more bills
should be drawn without previous funds after April I,
1781 ; but, in January, 1782, Franklin wrote that they con
tinued to come, drawn on Jay, Adams, Laurens, and him
self He suspected that they were antedated to conceal
a breach of the promise.' Were these drawn by Morris?
Were Ihey really old bills? How did the bills which were
put in Morris's hands in June stand related to this promise?
As late as May, 1783, Morris wrote: "The bills drawn by
order of Congress at a long sight on their ministers, as
well in Spain and Holland as in France, have involved the
affairs of my department in a labyrinth of confusion, from
which I cannot extricate them, and I very much fear that
many of these bills will have been twice paid." ^
November 5, 1781, the King of France borrowed for
the United States, on his own credit, the ten millions
which he had agreed in February that he would guar
antee, but which, for political and other reasons, it had not
been possible for the United States to borrow.
December 31, Vergennes wrote to Franklin: "I shall
not enter into an examination of the successive variations
and augmentations of your demands on me for funds to
meet your payments." He promises to put a million at
Franklin's disposal. " But I think it my duty, sir, to in
form you that if Mr. Morris issues drafts on this same
million, I shall not be able to provide for the payment
of them, and shall leave them to be protested." He tells
1 Franklin in France, ii. 30.
"^ Dip. Corr. Rev. xii. 359. Barclay wrote to Morris, October 23, 1783,
that he found in John Adams's bill-book that one bill had apparently been
paid twice (Dip. Corr. Rev. i. 494).

Finances of the American Revolution. g
him also flatly that, if he has accepted drafts for more
than that sum, he must look to himself how he meets
them. VergennQS will only meet those of Morris, pro
vided they do not exceed the remainder of the Dutch loan,
after taking out this million.'
On the 1st of August previous, Luzerne had written to
Vergennes^ that, Congress had neglected to provide finan
cial resources, because there were rumours of another loan
from France. Perhaps this letter caused the peremptory
tone of the French minister at the end of the year. Mor
ris and Hamilton thought that the States had been made
negligent by relying on France.^
In October, 1781, Jay reported the Spanish Minister as
saying that " the good disposition of Congress toward
Spain had not as yet been evinced in a manner the king
expected, and that no one advantage had hitherto been
proposed by America to Spain to induce the latter to
come into the measures we desire." *
In November, 1781, Jay wrote another begging letter,
on account of ^31,809 bills to be paid the next month.
To this he never received any answer. He therefore
turned to Franklin, writing: " It seems as if my chief busi
ness here was to fatigue you and our good allies with
incessant solicitations on the subj'ect of the ill-timed bills
drawn upon me by Congress. It is happy for me that you
are a philosopher, and for our country, that our allies
are indeed our friends."^ January 19, 1782, Franklin an
swered, telling the story of Gillon and the ships in Hol
land, but promising Jay part of the million livres which
he had just obtained. " What I am to do afterwards, God
knows." ^
1 Dip. Corr. Rev. viii. 54. ' ^ Durand, 251.
8 Dip. Corr. Rev. xii. 52 ; Hamilton's Works, i. 245.
* Johnston's Jay, ii. 81. ' Dip. Corr. Rev. viii. 42.
« Ibid. 57.

10 The Financier and the
During the winter of 1781-82 the Spanish Minister ex
pressed the king's displeasure at the silence of Congress
about returns for this kindness, especially about the ships
building in New England. Jay could only refer to the con
cession which he had made under the orders of Congress,
about the navigation of the Mississippi ; but Spain now
treated this as a mere recognition of right, to which she
allowed no value. March 2, 1782, Jay declared that he
had nothing more to offer.^ The French Minister at
Madrid tried to persuade Florida Bianca to yield to the
requests of the Americans. He wrote to Vergennes,
March 30, 1782, that the American envoy was then in
great distress on account of bills to the amount of ;^40,000
or ^50,000, which had been protested. He thought that
Florida Bianca was hostile to American independence.
Florida Bianca, in fact, entertained the deepest dread
and suspicion of the United States. In 1787 he prepared
a secret memorial for the Council of State, which was in
fact a program of Spanish policy for the immediate future.
It covered all points of internal and external policy, and
was, in many respects, remarkably enlightened. As to
the United States, however, he bitterly refers to the claim
to navigate the Mississippi, based on a treaty with Eng
land ; expresses apprehension at the possible growth of a
powerful neighbour to the Spanish possessions, and specu
lates on the chances of internal discord in the United
States, which he thinks very great. It should be the
policy of Spain to watch and foster this discord and profit
by it. He never had a disposition to help the United
States.^ In April, 1782, Livingston wrote to Jay that the reasons
ofthe Americans for sending a minister to Spain were "to
solicit the favourable attention of his Catholic Majesty to
1 Johnston's Jay, ii. 182. 2 Obras de Florida Bianca, 228.

Finances of the American Revolution. 1 1

a people who were struggling with oppression, and whose
success or miscarriage could not but be important to a sov
ereign who held extensive dominions in their vicinity." ^
These reasons weighed very little at Madrid.
April 30, 1782, Congress resolved that they were sur
prised that their offer about the Mississippi had been fruit
less, and directed Jay to urge a speedy concession of an
equivalent by Spain.^ August 7, they resolved to make no
treaty with Spain, — that is, they withdrew this offer .^
In June Jay went to Paris, as one of the Commissioners
to negotiate the peace. This chapter of the attempt to
get aid in Europe was then closed. Unfortunately, the
payment ofthe ;^ 150,000, which was obtained through this
humiliating negotiation, was in default for several years,
which was more humiliating still.
January 25, 1782, Luzerne informed Congress of the
tenour of despatches to him dated September 7.* There
fore it was probably about the same date that Morris re
ceived Franklin's despatch of September 12, containing
better news. Franklin had a promise of money with which
to pay the bills for the purchases in Holland, so that he
would not need the remittances for that purpose. " I shall
finish the year with honour, but it is as much as I can do,
with the aid of the sum I stopped in Holland, the drafts on
Mr. Jay and on Mr. Adams much exceeding what I had
been made to expect. I had been informed that the Con
gress had promised to draw no more bills on Europe after
the month of March last till they should know they had
funds here ; but I learn from Mr. Adams that some bills
have been lately presented to him, drawn June 22, on Mr.
Laurens, who is in the Tower, which makes the proceed
ing seem extraordinary." He sees by the minutes of
1 Dip. Corr. Rev. viii. 15. ^ Secret Journ. iii. 98.
8 Thomson Papers. * Secret Journ. iii. 85.

12 The Financier and the
Congress that they have stopped drawing on the other
ministers, but not on him ; which he says terrifies him, for
he has promised Vergennes to accept no more unless he
has funds, or that he does it at his peril. So he fears that
the bills must go back protested. Gillon has sailed from
Holland without taking under convoy the two vessels that
were freighted to carry the goods purchased by Captain
Jackson in Holland. " There has been terrible manage
ment there, and from the confusion in the ship before
and when she sailed, it is a question if she ever arrives
in America." *
The two ships under convoy returned. In November
Franklin wrote further about this affair, which had wasted
the help which he had begged with such pertinacity. His
last aids have all been used up by the drafts on Jay and
Adams, for Adams did not get any loan in Holland ; and
also by the enormous unexpected purchases in Holland by
Jackson, which were to have gone in Captain Gillon's ship,
but were left behind. He now hears from Amsterdam
that the two ships which were to carry the goods have not
yet sailed, because their contract was to sail under convoy
of the " South Carolina" which left them. Now the owners
demand higher freight, or that Congress should buy the
ships. He expresses his distrust of Gillon. He had
promised to pay for ten thousand pounds' sterling worth
of goods, said to be shipped on Gillon's ship, and after
ward allowed five thousand pounds more. Bills were sent
in to him for fifty thousand pounds. He refused to pay ;
but Jackson finally persuaded him to do it, and he was
obliged to go to the Minister to beg for more, and for
goods bought in another country. At length he succeeded
in getting it. Then the officers of the ship declared her
overloaded, and the goods were put into two other ships,
1 Dip. Corr. Rev. xi. 469.

Finances of the American Revolution. 13
Then these were left behind, and now he must buy them
or pay increased freight, and he does not see how to make
a new demand on France for this. " The very friendly dis
position of this court toward us still continues, and will, I
hope, continue forever. From my own inclination, as well
as in obedience to the orders of Congress, everything in
my power shall be done to cultivate that disposition ; but
I trust it will be remembered that the best friends may be
overburdened, — that by too frequent, too large, and too
importunate demands upon it, the most cordial friend
ship may be wearied ; and as nothing is more teasing
than repeated, unexpected large demands for money, I
hope the Congress will absolutely put an end to the
practice of drawing on their ministers, and thereby oblig
ing them to worry their respective courts for the means
of payment." '
In a letter to Jay in January, he complains of the waste
in Holland and the abuse of French generosity to wliich
he is driven. " I had worried this friendly and generous
court with often-repeated after-clap demands, occasioned
by these unadvised (as well as ill-advised), and therefore
unexpected, drafts, and was ashamed to show my face to
the Minister. . . . We have been assisted with nearly
twenty millions since the beginning of last year, besides
a fleet and army ; and yet I am obliged to worry them
with my solicitations for more, which make us appear
insatiable." ^
It was a common complaint against Franklin in America,
that he was timid about asking aid of France.
December 4, 1 781, Adams wrote from Amsterdam to
the President of Congress that the goods left behind by
Commodore Gillon were detained for freight and damages.
He was trying to get them free and send them over. " This
1 Dip. Corr. Rev. iii. 246. ^ Ibid. viii. S7-

14 The Financier and the
piece of business has been managed as ill as any that
has ever been done for Congress in Europe, whether it
is owing to misfortune, want of skill, or anything more
disagreeable." '
In the accounts of the banker Grand, there is an entry
for the purchase made in Holland by Jackson, " which was
detained there," $227,635.
The painter Trumbull, Major Jackson, and several other
Americans took passage in the " South Carolina." She
met with a storm, and was obliged tp go around Scotland.
Trumbull says that the ship was saved by Captain Barney,
who assumed command of her.
We next hear of Gillon, after he left Holland, in the
public documents, at Corunna, in October. The Spanish
Minister called on Jay to account for two men on board
the ship, who were alleged to be Spanish deserters. After
that a quarrel arose between Gillon and Colonel Searle,
which Jay was called on to settle, but he could not quit his
post.^ At Corunna, Trumbull and some of the other pas
sengers left the ship, " tired of the management of the
"South Carolina."*
April 18, 1782, the Governor of South Carolina had news
from Philadelphia that Gillon had arrived at Havana with
five prizes, worth one hundred and fifty thousand hard dol
lars.* In May, Gillon, with his ship, helped the Spaniards
to conquer the Bahamas, from which action there arose
a claim against Spain.®
In June Franklin wrote to Morris a long recapitulation
of this misconduct, and of the trouble and expense to
which he had been subjected by it. The charges alone
were nearly forty thousand florins. He asks where Gillon
' Dip. Corr, Rev. vi. 205. 2 Ibid. viii. 26.
3 Trumbull. 83. 4 Gibbes, 168.
6 Dip. Corr. U S. iii. 132; vi. 330; Journ. Cong. ix. 134.

Finances of the American Revolution. 15

can now be found. "Perhaps, since his success in the
West Indies, he may venture into an American port, in
which case it would be well to secure him and make him
account for the ;^io,ooo sterling he received of me in con
sequence of his agreement with Colonel Laurens."' At
about the same time Morris was writing to Franklin, in
equal anxiety and dissatisfaction, about the same affair.
If the cargo of the "Lafayette," he says, was like some
that had been received, the capture of it was no great loss,
for the clothing was too small. " The goods from Holland
we still most anxiously expect. Would to God that they
never had been purchased ! Mr. Gillon, however, is at length
arrived, and I hope we shall have those matters in which
he was concerned brought to some kind of settlement." ^
These goods now, which were left behind by Gillon, on
which Franklin's and Morris's money had been spent,
reached the United States in September, 1782, — nearly a
year after Yorktown, and within a few weeks of the pre
liminary treaty of peace.^ The only explanation ever
suggested why Gillon escaped trial is by Chastellux's
translator: "The universal esteem in which Mrs. Gillon,
his wife, was held by every person in Carolina."* Novem
ber I, 1782, a committee appointed by Congress to inquire
into the causes of the detention of the goods purchased
in Holland, reported. On motion of the delegates from
South Carolina, the report was referred to Morris. If he
should find that the United States had cause of action for
damages against Gillon as representing South Carolina, he
was to submit to arbitration the dispute between the United
States and South Carolina.®
1 Franklin in France, ii. 35, . ^ Dip. Corr. Rev. xii, 203,
' Ibid. viii. iig. * Chai5tellux, i. 192.
5 Gillon was in Congress in 1793-94, and died in 1794 (Lannian). The
" South Carolina " was captured off the capes of Delaware at the end of 1782
(Almon, 1783, Part i. 227).

1 6 The Financier and the
The total receipts of the year 1781 were $1,030,084.
They consisted of the following items, fractions of a dollar
being omitted : ' —
Bills of exchange sold  $294,165
Specie from France ....  4^2,597
Paper money negotiations  62,001
Yorktown booty  7')439
Specific supplies of Pennsylvania  101,054
Prizes  34,717
Sundries  4,106
The expenditures were $723,459. The heaviest expen
ditures were : —
Salaries and expenses of civil officers  $15,302
Marine  87,608
Paymaster  140,965
Military and ordnance stores  39-573
Quartermaster-general  110,330
Army subsistence  114,997
Army clothing  60,560
Medical department  10,090
Payment of old accounts  115,196
Under the expenses we find : —
Household of the President of Congress  $4ii97
OfScers of Congress  3.291
Expenses of Congress  840
OfBcers of the Treasury department . . ... 2,053
Expenses of the Treasury department  1,038
Household of the Commander-in-chief  2,780 2
Of the receipts, the bills of exchange consisted of $52,720
of bills used by Morris out of those put at his disposal by
the Resolution of June 4, 1781,^ and $19,425 in bills on
France received for flour sold to the French army agents, —
together, $72,145. The rest consisted of bills drawn on
1 Reports of 1785 and 1790. 2 Including $260 for silverware.
' See vol. i. p. 280,

Finances of the American Revolution. 17
the bankers, Le Couteulx and Grand, in the hope that they
would have funds obtained from the French government.
The total of bills drawn was $367,516, on which the loss
below five livres and eight sous per dollar was $42,785,
leaving a net product of $324,731. Of this, Morris spent
$30,565 in buying paper money in his operation of " ap
preciation," so that the money for that was borrowed of
France. Ofthe total of bills, $295,371 were drawn on the
bankers. Of this, $221,296 fell on Le Couteulx. It ex
ceeded the loans and subsidies from France put in his
hands by $141,953; so that the United States had over
drawn their account with him by that amount. $74,075
were drawn on Grand in the shape of 400,000 livres in
" conditional orders." The debt to Grand, however, at
the end of 1781 was $1,158,895 ; whereas, at the beginning
of that year, it had been $1,576,591; — a reduction of
$417,696. This was because of the large amount of the
French loans and subsidies deposited with him. The net
reduction of the debt to the bankers for the year was
$275,743; and the debt to both, January i, 1782, was
$1,300,848. Of the old accounts paid, the largest amounts were to
John Ross $79,399, and to William Bingham $18,518. Of
pensions, the largest amount was $2,452 to the children of
General Warren. Five hundred and twelve dollars were
paid for educating three Indian youths at Princeton
College by order of Congress. The delegates from the
three southern invaded States were paid $7,813 from
the federal treasury. The expenses of bringing the
specie from Boston were $5,853. Sixteen dollars were
paid to John Dolly for ringing bells on the surrender of
York. The following are the only criticisms' on Morris which
we have found belonging to the year 1781. The first is

i8 The Financier and the
by Varnum of Rhode Island : ' " Mr. Morris's personal
credit here, as well as in Europe, is very extensive, and no
other man could effect as much as Mr. Morris. We have
already experienced the happy consequences of his ap
pointment in a great retrenchment of expenses. He is
now taking effectual measures to simplify the various de-
pa-rtments, and calling to account those who have basely
wasted the public funds. . . . The evils have been so mul
tipUed, and the indemnities so certain, in the estimation
of public servants, that sporting with public property has
become familiar, and the multiplication of dependents in
every department has been so enormous, the feeling as
well as views of many individuals will be greatly affected
by the necessary alterations." He goes on to speak of
the difficulty of reform, and the vested interest in abuses
which makes reformers unpopular. " From these reforms
alone I can take on me to affirm that the public will an
nually gain several millions of specie dollars, — an impor
tant consideration, when we reflect what relief it will afford
the people already groaning under the burden of enormous
taxes. I must now take the liberty of subjoining that from
the knowledge, integrity, and credit of the Financier, we
may expect the most beneficial effects from his administra
tion ; but he must be supported by the States."
In November President Reed wrote to General Greene:
Congress have lost authority by the failure of public
credit. It was necessary to appoint a pecuniary dictator.
" Mr. Morris, who had been long pursuing a gainful traffic
from which others were excluded by embargo and restric
tions, naturally presented himself as combining the neces
sary qualities ; but his terms were high, and, at first blush,
inadmissible. He claimed a right of continuing in private
trade, of dismissing all continental officers, handhng public
1 To Governor Greene, July 2 ; Staples, 346.

Finances of the American Revolution. 19

money at pleasure, with many lesser privileges amounting
to little less than an engrossment of all those powers of
Congress which had been deemed incommunicable, and
which we had sometimes thought they exercised with
rather too much hauteur. However, Mr. Morris was in
exorable. Congress at his mercy, and finally the appoint
ment was made with little relaxation from the original
conditions ; since which the business of that august body
has been extremely simplified, Mr. Morris having relieved
them from all business of deliberation, and of executive
difficulty with which money is in any respect connected,
and they are now very much at leisure to read despatches,
return thanks, pay and receive compliments, etc. For
form's sake some things go thither to receive a sanction,
but it is the general opinion that it is form only. But it
would not be doing justice not to acknowledge that, humil
iating as this power is, it has been exercised with much
advantage for the immediate relief of our distresses, and
that the public have received a real benefit from Mr.
Morris's exertions. At the same time, those who know
him will also acknowledge that he ,is too much a man of
the world to overlook certain private interests which his
command of the paper and occasional speculations in that
currency will enable him to promote. It seems to have
ever been a ruling principle with him to connect the pub
lic service with private interests, and he certainly has not
departed from it at this time of day. His influence is also
great, not to say irresistible, in the appointment of other
officers not connected with his own department, of which
we have had recent proof in the appointment of a minister
for foreign affairs and that of the war department ; Mr. R.
Livingston having, after much opposition, been appointed
to the former, and General Schuyler standing fairest for
the latter." After speaking of the hostility to Schuyler,

20 The Financier and the
he adds : " This is Mr. Morris's doing, and it is wondrous
in our eyes. ... I say nothing of the whole appointment's
wearing so much the appearance of cabal, when at the
same time you consider that Mr. Gouvemeur Morris is
the Financier's assistant, and, censorious people say, his
director." '
In December the Rhode Island delegates, in their re
port to the Governor,''^ wrote : " The established character of
the Superintendent of Finance, his abilities, numerous cor
respondents in different parts of the world, and permanent
property, give great advantages in the execution of the
important trusts he is honoured with. The public debts
that have accumulated previous to his coming into office
were numerous, and the public creditors exceeding clam
orous. They now think that the debts of the longest
standing should be paid first. It appears to be justice,
but policy forbids the measure, when our very existence
as a people calls aloud that the wheels of the present
movement be kept in motion."
1 Reed's Reed, ii, 374, ^ Staples, 359.

Finances of the American Revolution. 21

CHAPTER XVII.
THE BANK OF PENNSYLVANIA AND THE BANK OF NORTH AMERICA.
TN a speech in the Pennsylvania Assembly, in 1786, on
¦^ the Act to Charter the Bank of North America, Morris
said that although the proprietary government " had no
idea of a bank, the commercial men of the Province had,
and I, as a merchant, laid the foundation of one, and es
tablished a credit in Europe for the purpose. From the
execution of this design I was prevented only by the Revo
lution." ^ Silas Deane submitted to Congress a plan for a
bank, with a capital of a million and a half sterling.^ Jt
was suggested in the scheme of reconciliation which the
Carlisle commission brought to America that a bank might
be formed to provide for the continental paper currency.*
Hamilton had a bank scheme in mind, probably in 1779.*
The first real step toward an institution of that kind was
independent of all these plans.
On the 4th of June, 1780, Paine wrote to Joseph Reed,
urging that a subscription should be raised to obtain re
cruits and supplies.^ The idea took root. Paine was then
Clerk of the Assembly of Pennsylvania. It was expected
that Charleston would be taken, and many members of the
Pennsylvania Assembly brought petitions from their con
stituents against taxation. A letter from the General set
forth the sad state of the army. It produced great gloom.
Paine says that he subscribed $500, and the next day
1 Carey's Debates, 37. 2 Djp. Corr. Rev. i. 160. * Stevens, 440.
* Hamilton, 107. ^ Reed's Reed, ii. 218.

22 The Financier and the
M'Clenahan and Morris subscribed each ;^200 in hard
money. On the 14th came the news of the loss of Charles
ton. On the 17th a meeting was held, at which it was re
solved to open a security subscription to the amount of
;^300,ooo of Pennsylvania currency, but in real money, the
subscribers to execute bonds for their subscriptions and to
form a bank thereon for supplying the army.^ June 21,
the Board of War informed Congress that a number of
patriotic persons had formed a bank, whose object is the<
public service. They ask for a committee of Congress to
confer with them. The committee was appointed, and
next day reported the plan of the bank. The offer of the
persons who formed it was to provide on their own credit,
and by their own exertions, three million rations and three
hundred hogsheads of rum, without profit to themselves,
but asking security for their payment. The faith of the
United States was pledged to them, and the Board of
Treasury was directed to deliver to them bills of exchange
drawn in their favour on the envoys in Europe, for a sum
not exceeding a hundred and fifty thousand pounds ster
ling, as a guarantee of payment within six months.^
Morris described the bank, in a letter several years later,
as " in fact nothing more than a patriotic subscription of
continental money . . . for the purpose of purchasing pro
visions for a starving army." * A notice was issued by the
bank : " All persons who have already lent money are de
sired to apply for bank-notes, and the directors request the
favour of those who may hereafter lodge their cash in the
bank, that they would tie it up in bundles of bills of one
denomination, with labels, their names endorsed, as the
business will thereby be done with less trouble and greater
despatch." * Hamilton criticised this bank because its pur-
J Paine's Works, i. 372. 2 Journ. Cong. vi. 66.
8 Ford MSS. * Lewis, 22.

Finances of the American Revolution. 23
chases were made with its " stock," that is, its capital, and
not with its notes ; so that it was only a particular subscrip
tion for a particular purpose, and not an institution.^
From these remarks about the bank we may infer what
its plan of operation was. Continental or State paper was
brought into it as a subscription, for which the subscriber
obtained the (no doubt interest-bearing) notes of the bank,
payable in six months. The supplies were bought with the
currency which the subscribers had brought in. The bills
drawn on the envoys were held as collateral security until
Congress paid for the supplies. The bills might be nego
tiated ; but it was the understanding that they would not be,
for it was well understood that they were not drawn for value
legitimately at the disposal ofthe drawer, but on the chances
that the envoys could borrow or beg funds with which to
pay them, if they should be negotiated and presented.
Reed belittled this bank enterprise, as he was bound to
do from his party position. He said that he would sup
port the bank, although there were secondary views and
party spirit in it. The bank consisted of opponents of the
Pennsylvania Constitution.^ That the bank was a political
engine is evident from the fact that when Washington tried
to spur President Reed to greater energy, in July, 1780, he
put the argument to him that the bank was in the hands
of his political enemies and would be used against him.*
In May just previously, the ladies of Philadelphia had
collected by subscription $300,000 in paper currency, of
the value of $7,500. Reed compared this disparagingly
with the bank subscription, which amounted to only
$315,000 in paper. The subscription of the ladies in
cluded coloured women, the Marchioness de Lafayette, and
the Countess de Luzerne.*
1 Hamilton's Works, i. 223. ^ Reed's Reed, ii. 216.
s Ibid. 220. * Ibid. 261.

24 The Financier and the
The bank was called the Bank of Pennsylvania, and
began operations July 17, 1780, on Front Street, two doors
above Walnut. The last instalment of the subscription
was called up November 15, and the bank was wound up
at the end of the year 1784.^ November 29, the Pennsyl
vania Assembly appointed a committee to confer with the
directors of the Bank of Pennsylvania on the practicability
of an immediate supply of ten thousand bushels of corn
and forage for the federal army on three or six months'
credit, to be paid for in current money of that State, equal
in value to gold and silver.^ In May, 1781, Reed wrote to
Washington that the notes of the bank would no longer
circulate ; that they soon lost credit, but that the bank
ruined the paper money of the State.*
In May, 1781, before he had assumed the office of Finan
cier, Morris submitted to Congress his plan of a bank.*
" Anticipation of taxes and funds," he wrote, " is all that
ought to be expected from any system of paper credit." ^
He proposed that Congress should apply to the States for
power to incorporate the bank. In his use of language,
''funds" meant separate forms or branches of revenue.
By " anticipations " he meant paper evidences of debt is
sued for obligations of the government, with the intention
that they should be cancelled by the revenue when it came
in. His doctrine, therefore, was that paper ought not to be
used except to anticipate taxes. His plan was to borrow
of the bank. This loan he would obtain in bank-notes.
He could pay out the notes for his obligations. The notes
would be receivable (as he hoped) by the States and the
1 Lewis, 22 ; see page 29. ^ Penn. Journ. i. 542.
' Reed's Reed, ii. 300.
* Gouvemeur Morris claimed that he planned the bank (Morris's Morris,
i 15), Hamilton made suggestions for it. These three men very often
acted together.
* Dip. Corr. Rev. xi. 364.

Finances of the American Revolution. 25
United States for taxes. Thus, either in taxes or requisi
tions, they would return to him, and he could return them
to the bank in payment of the loan.
May 26, 1 78 1, Congress approved of the plan of the
bank as follows : There were to be four hundred shares of
$400 each, with liberty to increase the capital. The state
of the cash account and circulation was to be made known
to the Superintendent of Finance every evening except
Sunday ; the States were to make the notes, if payable on
demand, receivable in duties and taxes ; the Superintend
ent of Finance was to have access to all books and papers;
the States were to make laws to punish embezzlement in
the bank as felony; no director was to be paid for his ser
vices. On the question to incorporate the bank, Massa
chusetts voted no ; Pennsylvania was divided. Madison
voted no. The States were asked not to charter any other
bank during the war, and to pass the other votes called for
by the plan.^
On the same day Morris wrote to Hamilton, in answer
to Hamilton's suggestions of April 30, " 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." *
The next thing he had to do was to overcome prejudice
and opposition and secure subscriptions. A writer over
the signature of " Walsingham " had apparently already
begun to break the way for him.* He started from the
1 Journ. Cong, vii, 87.
2 That is, some ofthe evidences of the public debt.
« Dip. Corr. Rev. xi. 366. * Moore's Diary, ii. 422.

26 The Financier and the
evils of depreciation and the causes of it. He attributed
it chiefly to the quantity of the notes and to the measures
which had been taken to prevent it. He denied that it
was attributable to the tories, speculators, etc., and pro
posed a bank " where specie may be lodged in safety.
Let bills be issued, signed by the Financier-general, sub
ject to be exchanged at the pleasure of the holder for
specie at this bank. One million of Spanish dollars, under
the management of a gentleman of established credit and
ample fortune, would serve as a fund for ten millions of
paper dollars." As an alternative he proposes that the
government should issue bills, and lay taxes to cancel
them within twelve months. In the " Packet " of May 29,
the plan of the bank was published, with the resolutions of
Congress and an explanatory letter by Morris. In the
last he said : " To ask the end which it is proposed to
answer by this institution of a bank is merely to call the
public attention to the situation of our affairs. A depre
ciating paper currency has unhappily been the source of
infinite private mischief, numberless frauds, and the great
est di-stress. The national calamities have moved with an
equal pace, and the public credit has received the deepest
injury. This is a circumstance so unusual in a republican
government that we may boldly affirm it cannot continue
a moment after the several legislatures have determined
to take those vigorous and effectual measures to which the
public voice now loudly commands their attention. In
the mean time the exigencies of the United States require
an anticipation of our revenues, while at the same time
there is not such confidence established as will call out for
that purpose the funds of individual citizens. The use,
then, of a bank is to aid the government by their moneys
and credit, for which they will have every proper reward
and security; to gain from individuals that credit which

Finances of the American Revolution. 27

property, abilities, and integrity never fail to command;
to supply the loss of that paper money which, becoming
more and more useless, calls every day more loudly for its
final redemption ; and to give a new spring to commerce
in a moment when, by the removal of all restrictions, the
citizens of America shall enjoy and possess that freedom
for which they contend."
On the nth of June, 1781, he issued a circular explain
ing and recommending the bank.^ In that and the follow
ing month he wrote long letters to Franklin, Jay, and
Robert Smith, dilating upon his hopes and plans in regard
to this, which was now his pet project. "This country by
relying too much on paper is in a condition of peculiar
disorder and debility. To rescue and restore her is an
object equal to my warmest wishes, though probably be
yond the strength of my abilities. Success will greatly
depend on the pecuniary aid we may obtain from abroad,
because money is necessary to introduce economy, while
at the same time economy is necessary to obtain money."
He then mentions the national bank. "I mean to render
this a principal pillar of American credit, so as to obtain
the money of individuals for the benefit of the Union, and
thereby bind those individuals more strongly to the gen
eral cause by the ties of private interest." '^ " When once
by punctual payment the notes of the bank have obtained
full credit, the sum in specie which will be deposited will
be such that the bank will have the interest of a stock two
or three times larger than that which it really possesses."*
A reason for establishing the 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 collective mass of
1 Dip, Corr. Rev, xi, 374, ^ ibid, 378, » Ibid 392.

28 The Financier and the
private credit between the lenders and borrowers, supply
at once the want of ability in the one and of credit in the
other." He expects to supply the place of the other paper,
which he intends to absorb as soon as possible, " and there
by to relieve the people from those doubts and anxieties
which have weakened our efforts, relaxed our industry,
and impaired our wealth." He hopes by the bank " to
unite the several States more closely together in one gen
eral money connection, 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. ... I am determined that the bank shall
bewell supported until it can support itself, and then it will
support us. I mean that the stock, instead of $400,000,
shall be ;^400,ooo, and perhaps more. How soon it will
rise to that amount, it is impossible to foresee; but this we
may venture to assert, 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." '
He wrote to Franklin that the bank must control the
exchanges by having control of all the bills, and he asked
him to tell the bankers that he, Morris, intended to make
the capital ten times what it was.
In 1786 he said that the subscriptions to the bank had
not, up to September i, exceeded $70,000.^ In September
the " Magicienne " arrived at Boston with the silver which
John Laurens brought. The amount was $462,862. Mor
ris put this in the bank ; but half of it was drawn out and
expended before the bank started.
In June, 1781, he reported to Congress that the non
payment of the sums due to the Bank of Pennsylvania by
Congress hindered the subscriptions to the new bank.
Congress were not willing to sell the bills lodged as secu-
1 Dip. Corr, Rev, vii. 439. 2 Carey's Debates, 48.

Finances of the American Revolution. 29
rity, lest the minister at Madrid should be incommoded.
Morris proposed that the bills be put at his disposal ; he
thinks he can pay the debt and cause the money to be
subscribed to the national bank, and at the same time use
the bills so that they will not be presented for a long time,
or not at all. In the diary of July 4, he mentions that he
met the directors of the Pennsylvania Bank, and proposed
that they should transfer their subscriptions from the
Pennsylvania to the national bank, and deliver up to him
the bills of exchange which they held as security, while he
would pay to the commissioners of the national bank what
remained due to the old bank from Congress. They all
agreed.^ Morris paid to the Pennsylvania Bank, in January, 1782,
$20,572; in April, $7,081 ; in November, $5,929; in July,
1784, a fraction of a cent, which seems to be entered to
mark that the account was closed.^
A meeting was held November i to organize the new
bank. It consisted of the members of the Bank of Penn
sylvania, and nine others.* December 31, the Act of
incorporation was passed by Congress.* The bank com
menced business January 7, 1782. Thomas WilHng was
President. The largest subscribers were: William Bing
ham, 95 shares ; John Carter, 98 ; Robert Morris, 98 ; John
Swanwick, 71; William Smith, 50; Jeremiah Wadsworth,
104.® Morris was never a director or other officer. The
day that the bank went into operation he noted in his diary
that he paid to it $200,000 for the subscription ofthe United
States.** There was much doubt about the power of Congress to
pass an Act of incorporation.'' The Virginia delegates
1 Dip. Corr. Rev. xi. 376; Journ. Cong. vii. 107. '^ Report of 1785.
8 Lewis. 33, * Journ. Cong, vii, 197. ^ Lewis, 133.
6 Dip. Corr. Rev. xii. 26. ' Madison Papers, i. 105.

30 The Financier and the
reported to the Governor that they had consented to the Act
on account of the utility of the bank, but that the States
ought to ratify the Act of Congress.' The bank deter
mined to seek a charter from Pennsylvania. Objections
were made in the Assembly that the charter was perpetual,
that the bank had power to hold real estate, and that Mr.
Willing had encouraged negotiations with General Howe.^
Nevertheless the Act was passed April i, 1782.
March 9, Franklin congratulated Morris on the success
of the bank. He had directed Bache to take a share for
him.* In May, 1782, a proposition was made to Morris to found
a bank in New Hampshire, to which he replied : " From
what .you propose with respect to the establishment of a
bank in New Hampshire, as well as from the ideas which
you say are entertained of the increase of my private for
tune, I am convinced that you and other gentlemen are
alike mistaken as to the nature of the national bank and
my official connections and transactions. . . . By accept
ing the office I now hold, I was obliged to neglect my own
private affairs. I have made no speculations in conse
quence of my office, and instead of being enriched, I am
poorer this day than I was a year ago. You will from
what I have said see two sufficient reasons against adopt
ing the plan you have proposed, — that I have not money,
and that I have totally quitted commerce and commercial
projects to attach myself wholly to a business which
requires my whole attention." *
In the Report of 1785, Morris said, with regard to the
Bank of North America, or, as he calls it, the national
bank, that the event alone could determine whether the
measure was rash or not. " To judge of an Act, the cir-
1 Va. Papers, iii. 11, ^ Lewis, 45 ; see vol. i. p. 2U.
8 Franklin in France, ii. 44. * Dip. Corr. Rev. xii. 142.

Finances of the American Revolution. 31
cumstances of the time must be considered. Public credit
was at an end. No means were afforded adequate to the
public expense. Credit, therefore, was necessary. Vari
ous expedients had been used, and with considerable
success, during the course of the year 1781. But it is of
the nature of expedients to increase the evils which they
postpone. The autumn of that year found America in the
situation of that part of the federal army which then re
turned through Philadelphia from the capture of York-
town, — crowned with laurels, but distressed by want. The
plan of a bank had been long proposed ; but out of a thou
sand shares two hundred had not been subscribed. And
it was some time after the business of the bank was fairly
set a going before the sum received upon all subscriptions
put together amounted to $70,000.
" On the first day of the year 1782 there remained in
the treasury, being part of those moneys shipped in the
'Magicienne,' about $300,000. A considerable sum was
then due for past transactions, and Congress had not re
quired the States to pay anything for the service of the
coming year before the first day of April. One quarter's
expense was therefore to be provided from other sources,
even if the States should punctually comply with the re
quisitions made upon them. The treasury was $1,600,000
in arrears, as the state of anticipations will show,^ and
therefore bills of exchange could not be hazarded. Yet
the expense which was unavoidable could not but exceed
the sum in hand. These were the circumstances under
which something more than $250,000 of the public money
was invested in bank stock. It was principally upon this
fund that the operations of that in.stitution were com
menced, and the accounts which end on the last day of
March will show that the public obtained before that
1 See the table, page 129.

32 The Financier and the
day a loan of $300,000, being the total amount of their
then capital.^
" This loan was shortly after increased to $400,000, as will
appear from the accounts of the succeeding quarter, which
accounts will also show the necessity of that increase,
the sum total brought into the treasury from the several
States not am.ounting to $30,000 upon the last day of
June. But the direct loans of the bank were not the only
aid which it afforded. Considerable facilities were obtained
by discounting the notes of individuals, and thereby anti
cipating the receipt of public money. Besides which, the
persons who had contracted for furnishing rations to the
army were also aided with discounts upon the public
credit. And in addition to all this, it must be acknowl
edged that the credit and confidence which were revived
by means of this institution formed the basis of that sys
tem through which the anticipations made within the
bounds of the United States had, upon the first day of
July, 1783, exceeded $820,000. There was due also upon
that day to the bank directly near $ 1 30,000. If, therefore,
the sums due indirectly for notes for individuals discounted
and the like be taken into consideration, the total will ex
ceed one million. It may then be not only asserted, but
demonstrated, that without the establishment ofthe national
1 The account in the table on page 129 does not show the transactions of
Morris with the bank during the quarter. They were as follows : —

Quarter ending.

Borrowed.

Paid.

Bal. d-ue.

1782. March 31 . . ,

, $300,000

$300,000

June 30 . .

1 1 2,000

$12,000
400,000
September 30 ,
300,000
300,000
400,000
December 31 ,
200,000
shares
200,000
cash
300,000
100,000
1783. March 31 . .
200,000
200,000
100,000
June 30 . . .
83,194
shares
• 53.394
129,800
September 30 .
54-781
29,800
154,781
December 31 .
balance paid.
Finances of the American Revolution. 33
bank the business of the department of finance could not
have been performed. The officer who was at the head of
that department would be guilty both of ingratitude and
injustice if he did not acknowledge his obligations to them,
and he trusts that it will neither dishonour them nor him
that their confidence was as extensive as prudence could
possibly admit, and only confined by their duty and their
means." In 1784 he wrote in a private letter: "The bank has
created a punctuality here in such [business] matters as to
render it a pleasure to trust safe people in the course of
dealings, and everybody feels the benefit of it." ^
Morris borrowed of the bank during his administration
$1,249,975. He repaid this in cash, except $253,394, which
was paid by surrendering the stock owned by the United
States. The bank paid in dividends to the United States,
$22,867. The United States paid to the bank for interest
on loans, $29,719.^
Livingston gave a somewhat highly coloured statement
of the new arrangement in a despatch to Jay, February 2,
1782: "Order and economy have taken place in our
finances. The troops are regularly clothed and fed at
West Point and most of the other posts, at the moderate
rate of ninepence a ration when issued ; so that the innu
merable band of purchasing and issuing commissaries is
discharged. The hospitals are well supplied in the same
^rway, and small advances of pay are made to the officers
" and men. Upon the whole, they were never in so com
fortable a situation as they are at present. Our civil list,
formed upon plans of the strictest economy, after having
been many years in arrear, is now regularly paid off, and
the departments in consequence of it filled with men of
integrity and ability. Embargoes and other restrictions
1 Ford MSS. ^ Report of 1790.
VOL. IL — 3

34 The Financier and the
being removed, our commerce begins to revive, and with
it the spirit of industry and enterprise. And what will
astonish you still more is that public credit has again
reared its head. Our bank paper is in equal estimation
with specie. Nothing can be more agreeable than to see
the satisfaction with which people bring their money to
the bank and take out paper, or the joy, mixed with sur
prise, with which some who have hesitatingly taken bank-
bills for the first time, see that they can turn them into
specie at their option." ^
To Dana he wrote, March 2: " The only money now in
general circulation is specie, and notes from the American
bank, which have the same credit as silver. Our taxes are
collected in these ; and by removing the restrictions on our
commerce, together with the small loans we have made
in Europe, we find not the least want of a circulating
medium,"^ From a full statement of the history of the bank, the
derogatory and abusive statements about it cannot be
omitted. Gouge says that, when people went to the bank to get
silver, " they found a display of silver on the counter, and
men employed in raising boxes containing silver, or sup
posed to contain silver, from the cellar into the banking
room, or lowering them from the banking room into the
cellar. By contrivances like these, the bank obtained the
reputation of possessing immense wealth ; but its hollow
ness was several times nearly made apparent, especially on
one occasion when one of the copartners withdrew a de
posit of some five or six thousand dollars, when the whole
specie stock of the bank did not exceed twenty thousand."*
Bancroft gives a tradition that the bank was accustomed
to buy up its own notes, at a distance from Philadelphia, at
' Dip. Corr. Rev, viii. 5. 2 jtij. ^29. s Gouge, 13.

Finances of the American Revohition. 35
ten or fifteen per cent discount.^ This, however, is not
necessarily a fact injurious to its reputation. In view of
the difficulty of transportation and communication in those
days, the notes of a bank, at a distance from the place of
issue, must have been at a discount equal to the important
expense of sending them home for redemption; and if the
bank bought them up, it would limit this depreciation and
control it in a beneficial manner.
The following is only worth quoting because it is, once
for all, a part of the record which we are not at liberty to
omit, and because it shows how party animosity in those
days could distort facts : —
" The Bank of North America was set up with the King
of France's dollars, sent here to pay the revolutionary
army when they were on the point of a mutiny; yet Mr.
Robert Morris, with the assistance of his advisers, had the
address to satisfy the soldiers with his own six months'
notes, without ever allowing the honest fellows to palm
a sixpence of the cash. The money was made into a
bank, and the soldiers were paid with notes, with which
they purchased shoes at ten dollars the pair, hats, etc., on
the same reasonable terms, at various stores set up by
this Robert Morris and his agents, in every quarter of the
United States; so that in the end the soldiers never
touched the money, although he made the profit." ^
1 Bancroft, x. 567. ^ CaUender, Letters to Hamilton, 78 (1802).

36 The Financier and the

CHAPTER XVIIL

EXCHANGE, MINT, AND COINAGE.

/^NE great cause of perplexity in studying the financial
^-^ operations of the period of the Revolution arises
from the changes which took place in the currency of
different countries. This affected particularly the foreign
exchanges ; and as the relations between the United States
and France were very important for the finances of the
period, the rates and quotations of exchange often have
great significance. The exchange between the United
States and France was very complicated. The dollar was
a Spanish coin. It was used by the Americans as the
metallic unit, while they had a money of account in pounds,
shillings, and pence. In France the dollar needed to be
converted into livres and sous. The money of account in
the different colonies did not rate the dollar at the same
number of shillings and pence. Moreover, the old rela
tions with England had established a habit, which was only
partially suspended during the war, of regarding the rela
tion between the doHar and sterling money as the one
which was of the most interest and importance to the
colonies. In this period the English currency actually went over
from silver to gold. The Spanish dollar underwent a de
terioration by fraud or bad workmanship in the mint, and
the American currencies underwent depreciation by exces
sive paper issues. All these elements entered into the

Finances of the American Revolution. 2i7

quotation of the exchange. Even the merchants who were
using the quotations do not seem to have understood them.
They used them by habit and tradition, and by empirical
rules. They were, however, perplexed and tormented by
them when new elements entered in, which required varia
tion in the customary rules.
We therefore find that the leading public men, and
Morris perhaps first of all, early turned their attention to
the project of a mint for the United States.
We can find a guiding thread through the perplexities of
the coinage and exchange of the period only by establish
ing, as nearly as it is possible to do it, the par of the
metals between the Spanish dollar, the French hvre, and
the English shilling.
The proclamation of Queen Anne of June i8, 1704, was
based upon assays of the Spanish coins which had been
made at the mint, under the direction of Sir Isaac Newton.
The Seville piece of eight, or dollar, was rated at four shil
lings and sixpence sterling ; the Mexico piece of eight, at
the same ; and the pillar piece of eight, at four shillings
sixpence and three farthings. These pieces were said to
weigh seventeen pennyweight and a half when of full
weight, and it was forbidden to take them in the colonies
at more than six shillings current money. Hence the cur
rency in which a dollar was estimated at six shillings was
called " proclamation money," or lawful money. The
parity with sterlThg was, therefore, £\ equals $4.44^.
Wright says that four shillings eightpence for one dollar
was the rate at which the British forces in America
were paid in the Seven Years' War. At this rate, the
New York currency, being eight shillings to the dol
lar, gave I7if as the par of exchange; and the Penn
sylvania currency, being seven and a half shillings to
the dollar, gave i6of as par of exchange. This pro-

38 The Financier and the
duced an extremely complicated and mysterious method
of quotation.^
In April, 1776, Morris bought bills for Congress at the
rate of $4.93^ for a pound sterling.^
If the piastre which Sir Isaac Newton had before him
was worth exactly four shillings and sixpence, the pure
contents of it must have been 386.709 grains troy. If its
gross weight was I7|- pwts., then the fineness was .9207.
De Veyrac, writing in 17 19, stated the gross weight of the
piastre at 549 Spanish grains, which would be equal to
419.3597 grains troy. He says that the fineness was eleven
twelfths. This would give pure contents 384.4. The
parity with sterling would then be: one piastre equals
four shillings five and a half pence. It is probable that
Sir Isaac adopted a round number, and that the pure con
tents of the Spanish dollar never exceeded 384.5 grains
troy. In the course of the eighteenth century it deterio
rated. The assays which were made under the direction
of Robert Morris, in 1782, showed that the pure contents
were 373 grains.* The parity for that dollar with English
silver would have been four shillings and fourpence.
Hamilton, in his mint Report of 1791, said that the aver
age weight of the dollars then in circulation was 416
grains. The assays varied greatly. The one which he
thought best gave 370.933 grains fine contents. The
Spanish standard, he says, was, in 176 1, .906J, at which
ratio of fineness, a coin of 416 grains should have had 377
grains fine contents. The actual price of dollars in Lon
don and Amsterdam was adjusted to pure contents 36B
grains. The most important information, however, which
he gives is, that the actual unit of account in America had
been, as a means of escaping these changes, 24^ grains of
1 Wright, 324 (1765). 2 Journ. Cong, ii. 130.
8 Dip. Corr. Rev. xii. 93.

Finances of the American Revolution. 39
fine gold. In the mean time the English standard had
become gold. The parity of this imaginary gold dollar
with gold sterling was : one dollar equals four shiUings
four and a half pence.
Sir James Steuart, in 1760,^ stated the pure contents of
the French crown of six livres at 409.94 grains troy.
Morris found the pure contents to be 414 or 415 grains.
This would allow for a variation in the livre from 68 and a
third to 69 and a sixth troy grains. Sixty-nine and a
half grains, the weight of the modern silver full-weight
franc, was nearest correct. The equality with the silver
dollar assayed by Morris would be : one dollar equals five
livres eight and a third sous.
The currency in which the transactions of the Revolu
tion were chiefly carried on was the Pennsylvania cur
rency, in which seven shillings and sixpence were rated
at a dollar. In practice this currency offered especial
facilities, because one ninetieth of a dollar was a penny.
Hence the accounts were kept in dollars and ninetieths,
which made it easy to pass from one denomination to the
other. If now seven shiUings and sixpence were equal
to five livres eight sous, five livres were worth six shillings
eleven and one third pence. A crown of six livres was
worth one hundred pence, and a livre was sixteen and
two third pence. This was the metallic par.
Morris once stated that sixteen millions of livres would
sell in this country for $2,962,962, which would be at the
rate of 5.4 livres to the dollar, or six shillings eleven and a
fourth pence Pennsylvania currency for five francs. But
the same sixteen million livres would be reckoned in
France worth $3,047,619, which would be at the rate of
5.25 livres for a dollar, or seven shillings one and two
thirds pence Pennsylvania currency for five francs.^ This
1 Political Economy, i. ad fin. ^ Dip. Corr, Rev, xi. 497-

40 The Financier and the
statement shows a margin of 2.75 per cent at that time for
expenses of transmission. In other calculations he uses
sixteen and two-thirds pence Pennsylvania currency for
a French livre as par.^
In May, 1782, he urged Grand to ship coin to America.
The new efforts of the English to blockade the coast had
cut off commerce ; therefore bills were not salable. He
wanted six hundred thousand livres sent over in coin, pre
ferably in gold. Four crowns are worth here only four
hundred pence, but a louis is worth four hundred and
fourteen pence, both being the same number of livres.
English guineas are worth four huudred and twenty pence;
a half Johannes, seven hundred and twenty pence; a moi-
dore, five hundred and forty pence ; and a Spanish pistole,
three hundred and thirty-six pence.^
The quotation for the crowns and the louis d'ors shows
that gold was to silver in the United States at the time as
fifteen and a quarter to one.
In an ordinance of Congress, of October 18, 1782, for
the regulation of the post-office, it was stated that the cur
rent custom was to rate a pennyweight of silver at five
ninetieths of a dollar Penn.sylvania currency. This would
give four hundred and thirty-two grains gross weight for a
dollar. If it was eleven twelfths fine, three hundred and
ninety-six grains of pure silver would be the dollar, which
is a very high and exceptional rating.*
The committee on the debt, in 1783, converted the
foreign debt into dollars at five livres and eight sous to
•^he dollar.* At about the same time the salaries of the
agents in Europe were ordered to be paid in bills on
France or Holland, at five livres and five sous to the
^ Dip. Corr, Rev. xi. 477 ; xii. 23. The statement, Ibid. xi. 422, is some
what enigmatical,
^ Ibid, xii, 159. ^ Journ, Cong, vii, 386. " Ibid, viii, 151.

Finances of the American Revolution. 41
dollar, or four shillings and sixpence to the dollar.' This
was an old rating for the French money, which we find to
have been used just before the war.^ At this rating five
livres would be worth seven shillings one and five sevenths
pence Penn.sylvania currency. Livingston declared that a
buyer at six and a quarter shillings Pennsylvania currency
gained nearly five and a half per cent.* This would make
the par, five livres equals six shillings seven and a half
pence Pennsylvania currency.
When we compare these historical statements of the
usage of trade with a metallic computation, we see how
various and perplexing the transactions were.
In Morris's administration of the treasury, we find that,
in 178 1, he sold bills of exchange at rates varying from
five shillings and threepence to six shillings and seven-
pence for five livres. Six shillings eleven and one-third
pence being metallic par, he incurred a very heavy loss.
We have seen that he tried to lessen this loss by under
taking to negotiate both his own bills and those of the
French army agent ; and he appears to have succeeded to
some extent in his object, for he sold the bills which he
bought ofthe French agent at six shillings and threepence.
He made a profit on some bills which he bought of Holker,
the French consul, of $327 by this rate. In 1782 he sold
his bills at rates from six shiUings and threepence to seven
shillings. The loss for the year, as compared with the
par, was $92,372. In 1783 he sold at about the same rate,
and the loss was $54,491. In 1784 he sold at rates vary
ing from five shillings and fivepence to seven shiUings and
sixpence, the result being a gain of $7,001.*
In his accounts he converted livres tournois, or of
France, at five livres eight sous for a dollar; livres of
1 Journ. Cong. viii. 112. ^ Franklin, ii. 425.
» Dip, Corr. Rev. ix. 128. * Report of 1790.

42 The Financier and the
Martinique and Hispaniola, at eight livres five sous to the
dollar; florins, at thirty-four and three-fourths ninetieths
each; bank guilders, at thirty-six ninetieths each.
January 15, 1782, Morris submitted to the President of
Congress a report on the coinage of the United States, as
he proposed that it should be, with a discussion of the ex
isting currency. It was actually prepared by Gouvemeur
Morris.' Spanish dollars passed in Georgia at five shiUings, in
North Carolina and New York at eight shillings, Virginia
and New England at six shillings. South Carolina at thirty-
two shillings and sixpence, and in the other States at seven
shillings and sixpence. In a paper written by Franklin,
probably in 1764 or 1765, it is stated that the Spanish
dollar had been rated at eight shillings in New York, and
seven and a half shillings in Pennsylvania, for forty years.^
The common denominator for all the fractions of shil
lings and pence put equal to a Spanish dollar was fourteen
hundred and forty. One of these parts would be equal to
the sixteen hundredth part of a French crown. Twenty-
four of them would be a penny in Georgia, fifteen in North
Carolina or New York, twenty in Virginia and New Eng
land,* and sixteen in the other States, except in South
Carolina, where forty-eight would be thirteen pence. The
author of the report considered it a matter of the first
importance to find a common unit into which all the vary-
1 Sparks's Morris, i. 273, 281, ^ Franklin, ii. 351,
8 In the report ofthe proceedings of the Price Convention at Providence,
in 1776, which is given in the New York Journals, ii. 329, it is stated that the
prices are set at five shillings for a Spanish dollar. This specification is not
found in the corresponding report in the Rhode Island Colonial Records,
The New York report came from the Secretary of Congress, and not directly
from the Convention, The prices set for Massachusetts and Connecticut are
the same as for Rhode Island, In those States the quotation was certainly
six shillings for a dollar.

Finances of the American Revolution. 43
ing currencies could be converted. He proposed two
copper coins, to be called an " eight" and a " five," and to
contain that number of the unit. Two of the " eighths "
would be a penny of Pennsylvania currency, and three a
penny of Georgia currency. Three of the " fives " would
be a penny of New York currency, and four a penny of
lawful, or Virginia and New England currency. The
money unit would be equal to a quarter of a grain of fine
silver in coined money. One hundred units would be the
lowest silver coin, and might be called a cent. Since the
unit would be equal to a quarter of a grain, the number of
units in a troy pound would be 23,040. The mint price of
a pound was to be 22,237 iinits. The difference, — 803
units, — being the charge for coinage, was assumed to be
about equal to the cost of coinage. According to the best
assays that Morris had been able to get, a dollar contained
about 373 grains of fine silver, or, at the mint price, 1,440
units; and if crowns contained from 414 to 415 grains of
fine silver, they would, at the mint price, be worth 1,600
linits.^ When the dollar was divided into ninetieths, twenty
ninetieths were equal to a shilling sterling, fifteen to a
shiUing New England, twelve to a shilling Pennsylvania,
eleven and a quarter to a shilling New York, and sixteen
and two thirds to a livre.
The accounts show payments to Benjamin Dudley, "em
ployed in preparing a mint" during the year 1781. The
total of them, however, for that year is only $177. Similar
entries occur of payments to him during 1782. In Octo
ber of that year, Samuel Wheeler provided sundries for
the mint. Jacob Ekfield furnished dies for the " mint of
North America," at an expense of five dollars and eighteen
ninetieths. In March, 1783, Nathan Sellers delivered a
1 Dip. Corr. Rev. xii. 91.

44 The Financier and the
pair of moulds and a box to Mark Wilcox for the use of
the United States, at a cost of a hundred and three dollars
and thirty ninetieths. In April, John Swanwick provided
dies, and in May there was a payment to A. Du Bois for
sinking and case-hardening the same.
December 12, 1782, Morris informed Congress that dol
lars were rapidly going over to the enemy in exchange for
light gold, which was causing a scarcity and loss of silver.
He proposed a rating for foreign coin, English silver to
pass at one dollar and sixteen ninetieths per ounce, Dutch
silver at one dollar and fifteen ninetieths, French silver at
one dollar and fourteen ninetieths, and Portuguese silver at
one dollar and thirteen ninetieths. English, Spanish, and
Portuguese gold coin he rated at seventeen dollars per
ounce, and French gold coin at sixteen dollars and sixty-
eight ninetieths.^ The English at New York were clipping
the foreign gold coins, which is the fact referred to here
bythe "light gold." 2
The clipping was attributed to Robertson, the English
Barrack-Master. The Chamber of Commerce ordered
that the coins should pass by weight.* The gold coins sent
by the English found their way into the American part of
the continent, " where they circulated in a variety of muti
lated forms. The moidores and six-and-thirties had all of
them holes punched in them, or were otherwise diminished
at New York, before they were suffered to pass the lines,
from whence they obtained the name of ' Robertsons ' in
the rebel country; but the profits, if any, of that com
mander on this new edition of the coin remain a secret.
In the country almost aU the specie of every denomination
was cut by individuals, and appeared under the forms of
half, quarter, and eighth parts, the latter of which received
1 Dip. Corr. Rev. xii. 307. '^ State Dep. MSS, 137, ii. 191, 195.
* Jones's New York, i. 163.

Finances of the American Revolution. 45
the name of ' sharp shins.' By this arbitrary division of
the money, which was never weighed, great frauds were
inevitable." ^
The exchange of silver for the light coin of gold which
the English at New York had clipped produced trouble
for the Quartermaster-general of the army, Morris charged
him for all the full-weight gold coins which he sent to him
a premium representing the excess of their value above
the clipped ones which were in circulation. This com
pelled the Quartermaster-general to become a coin clipper,
to which that officer answered : " 'T is a shameful business
and an unreasonable hardship on a public officer. I am
not certain that I will receive any more bank gold on such
odious conditions. Send a pair of good shears, a couple
of punches, and a leaden anvil of two or three pounds
weight. Will you inquire how the goldsmiths put in their
plugs? "2
Morris believed that it was because there was no proper
regulation of the coin at the peace, by a mint or otherwise,
that a great part of the coin was exported.
January 7, 1783, Morris proposed that there should be a
mint, to which Congress agreed. April 2, Dudley, the
mechanic who was at work under his direction, brought
him a silver coin, " being the first that has been struck as
an American coin." April 22, Dudley sent in several pat
tern coins, to be submitted to Congress.* It appears that
these coins were for a thousand units and five hundred
units, according to Morris's scheme ; and that specimens of
them are still extant, for it is recorded that such specimens
1 Chastellux's Trans, i. 328.
2 Pickering's Pickering, i. 387, December 24, 1782,
* Hist, Mag., January, 1867. Extract from Morris's Diary. There are
letters printed by Robert Morris about this man Dudley and his wife, which
show Morris exerting himself for the comfort of humble people.

46 The Financier and the
were shown to the Massachusetts Historical Society in
1869.' Another report on the mint was submitted by the Board
of Treasury, April 8, 1786. They proposed that there
should be a mint charge sufficient to make a difference of
two per cent between coin and buUion, and therefore that
the mint price in the United States should be ^3 y. id.
sterling, or £0^ /^. \d. lawful, for one troy pound of stan
dard silver. The unit coin was to contain 375.64 grains
of fine silver. There was to be a half dollar, a double
dime, and a dime. Two pounds and a quarter avoirdupois
of copper were to be a hundred cents. There was to be
a gold eagle containing 246.268 grains of fine gold, and
a half eagle in proportion. The mint price of a troy
pound of standard silver was to be $9.92, and the mint
price of a troy pound of standard gold $209.77. They
found that the ratio of coined gold and coined silver in
the United States was nearly i to 15.6. In England it was
I to 15.21; in France, i to 14.458; in Spain, i to 14.85.
The standard which they used throughout for both metals
was eleven twelfths. They say that one hundred and
twenty-six grains of the standard gold of Great Britain
passes in the United States for two hundred and fifty-two
pence sterling, and that gold is received at the banks in
the United States at the rate of ^^48 sterling for a pound
troy. They made a careful table of the value of coined
and uncoined silver and gold in sterling and in New York
currency.2 If the best specification of a dollar was twenty-four and
three fourths grains of fine gold, then the true par with
sterling was, ;^i equals $4,5657; which would be 102,73,
if the old assumed par, $4.44^, was one hundred. The
1 Mass, Hist. Soc, Proc, 1869-70, 295.
2 State Dep. MSS. ; Rep. Bd. Treas. No. 139, 131.

Finances of the American Revolution. 47
English mint value of a troy pound of standard gold was
;^46.725. This multiplied by 102.73 gives ;^48. The
" pounds sterling " in America meant pounds in exchange.
This report of 1786 shows much closer study ofthe sub
ject, and better mastery of it, than the report of Hamilton
on the same subject. He thought, as above stated, that
the actual unit during the revolutionary period had been
24.75 grains of pure gold for a dollar. His investigation
of the ratio of gold to silver is so superficial and imperfect
as to create a doubt whether he had before him the report
of 1786, although the computations ofthe Board of Treas
ury were printed in a form for distribution. He thinks
that the ratio in America is fifteen to one. Therefore the
silver dollar should be sornething between three hundred
and sixty-eight and three hundred and seventy-four grains
of pure silver. He arrived at 371.75 grains of pure silver
for the dollar by taking the average of the last two Span
ish coinages. Evidently this average was nothing. The
law of August 8, 1786, had determined that one half of
one per cent should be taken on gold and two per cent on
silver for coining. This 'entered into Hamilton's com
putation of the relative weight of the coins of the two
metals. Jefferson's plan was to make a silver dollar with
three hundred and sixty-five grains pure contents, and to
derive from it the gold dollar at the ratio of fifteen to
one.' 1 Folio State Papers, Finance, i. 91.

48 The Financier and the

CHAPTER XIX.
1782: PEREMPTORY REFUSAL OF AID BY FRANCE; MORRIS'S DIS
CONTENT; CHARGES AGAINSr HIM; ARTHUR LEE'S ACCOUNTS;
MORRIS EXPECTED TO DEFAULT; THE LOAN OF 1 782 IN HOL
LAND ; STATE BORROWING ; CONTRACTS.
WRITING to Nathan Appleton, January 22, 1782,
Morris refused to make any more promises or to
put out new scrip to pay the interest on old debts. He
blamed Massachusetts for not passing the impost, although
a great part of the debt was owned in that State. He
refused to divert revenues to other purposes than those for
which they were intended, and threw the responsibility on
the States.' If he was wearied out, so was Franklin at
that time. He had never had any orders to pay the biUs
drawn on other people. " Thus I stand charged with vast
sums which I have disbursed for the public service without
authority." February 12 he writes to Adams in regard to
the bills : " This has, among other things, made me quite
sick of my Gibeonite ofifice, — that of drawing water for
the whole congregation of Israel."'-^
Jay, however, sympathized with him, and recognized his
services to the cause : " It seems as if trouble finds its way
to you from every quarter. Our credit in Holland leans
upon you on the one hand, and in Spain on the other.
Thus you continue, like a keystone of an arch, — pressed
1 Hist, Mag. vi, 169,
* Franklin in France, ii, 31, 33.

Finances of the American Revolution. 49
by both sides, and yet sustaining each. How grateful
ought we to be to France for enabling you to do it ! " ^
January 25, 1782, the French minister transmitted to
Congress despatches, addressed to himself, which he had
just received, dated September 7. Vergennes assumed that
Morris had stopped drawing, and he expressed his orders
to the French Minister in the following plain language:
" We have peremptorily declared to Dr. FrankUn that we
will not in future discharge any bills that have not been
drawn with your consent As to you, sir, we cannot but
repeat our former instructions on this subject; and we
direct you to authorize no drafts, even for a small sum."
On the 28th of January the French Minister asked Con
gress to send power to Franklin to make a contract with
the King of France for the repayment of the loans.
On the 8th of February, 1782, Congress resolved that
they could not, "without injustice to themselves and their
ally, withhold from him a knowledge of their present cir
cumstances, or neglect to mention the ruinous conse
quences that may attend a refusal of those aids " which
they still require ; and they directed the Secretary of For
eign Affairs and Superintendent of Finance to explain to
the American Minister in France the " extensive advan
tages which have resulted from money supplied by his
Most Christian Majesty to these United States," and their
need of at least twelve mUlion livres for 1782. They
directed Franklin to borrow that amount at an interest not
exceeding that allowed on national security in Europe.^
Morris had expected this sum of twelve millions when
he issued notes to the officers of the army with which to
buy clothing. In the spring he learned that France would
advance but six millions. He also learned that the ten-
miUion loan in Holland, which he had expected to have
1 Dip. Corr, Rev. viii. 55. 2 Secret Journ. iii, 85 fg.
VOL. IL — 4

50 The Financier and the
almost entirely at his disposal, had been largely cut
into.' We may suppose that the instructions just quoted
reached Franklin in May ; but in April he had written to
Adams, urging him to push the loan in Holland, because
there was rising enthusiasm for America there, and it was
reported that bankers were willing to undertake it. Mor
ris had sent to Franklin advice of large drafts, not knowing
that nearly all of the last loan had been consumed in pur
chasing goods. May 2, Adams replied that there was
great eagerness to become the American banker, but he
could not find that any one of the persons who came for
ward could really command the money. Loanable capital
is not plentiful, and there are many loans in the market.^
On the 25th Franklin wrote to Laurens, expressing the
hope that he would obtain a loan in Holland. He says :
"We have pressed rather too hard on this court, and we
still want more than they can conveniently spare us." *
In April, 1782, the Prussian Charge d'Affalres at Paris
informed Frederick II. of an intere.s,ting incident. The
Controleur-general, at the council table, made the states
ment that the expense of supporting the army in Amer
ica was sixty miUion livres per annum. The King, who
had not seemed to be paying attention, woke up at this
and said : " It is a big price to pay for succouring people
from whom we cannot expect to gain either fidelity or
reimbursement." *
May 16, 1782, Morris made another strenuous appeal to
the States : ^ " I write sir, to apprise you of the public
danger, and to tell you I shall endeavour to fulfil engage
ments which I have entered into already, that I may quit
1 Franklin in France, ii. 34. ^ Dip. Corr, Rev, iii, 39S.
* Ibid. 431. * Circourt, iii. 159. .
5 Dip. Corr. Rev. xii, 152.

Finances of the American Revolution. 51
my station like an honest man ; but I will make no new
engagements, so that the public service must necessarily
stand StiU. What the consequences may be I know not;
but the fault is in the States. They have not complied
with the requisitions of Congress ; they have not enabled
me to go on ; they have not given me one shilling for the
service of the year 1782, excepting only the State of New
Jersey, from which I received $5,500 a few days ago, and
this is all that has come to my hands out of two millions
which were asked for. Now, should the army disband, and
should scenes of distress and horror be reiterated and
accumulated, I again repeat, that I am guiltless; the
fault is in the States. They have been deaf to the calls
of Congress, to the clamours of the public creditor, to the
just demands of a suffering army, and even to the re
proaches of the enemy, who scoffingly declare that the
American army is fed, paid, and clothed by France. That
assertion, so dishonourable to America, was true; but the
kindness of France has its bounds, and our army — unfed,
unpaid, and unclothed — will have to subsist itself or dis
band itself. This language may appear extraordinary, but
at a future day, when my transactions shall be laid bare to
public view, it will be justified. This language may not
consist with the ideas of dignity which some men enter
tain ; but, sir, dignity is in duty and in virtue, not in the
sound of sweUing expressions. ... I have borne with de
lays and disappointments as long as I could, and nothing
but hard necessity would have wrung from me the senti
ments which I have now expressed."
This circular was submitted to a committee of Congress.
They were disinclined to send it. Morris proposed sending
members of Congress to visit the States.' May 22, Con
gress voted to send two members to the South and two to
1 Dip. Corr. Rev. xii. 161.

52 The Financier and the
the East, to urge the States to comply with the requisi
tions.' However, the circular was sent off; but it seems
to have produced nothing but irritation. June i6, Morris
wrote to Lovell : " I find the publications of ' No Receipts '
are by no means very pleasing. Men are less ashamed to
do wrong than vexed to be told of it."^
On the 24th of May, 1782, the Financier made a report on
the state of the finances. In connection with this, a motion
was made in Congress hostile to Morris, for a committee
to inquire into the authority under which the appropria
tion of the loans and subsidies in Europe had been made;
but it was lost, and the Financier was only called upon to
report the general purposes to which those resources had
been applied.* The charges which were current in Vir
ginia against Morris had, at this time, reached such defi
niteness that they could be enumerated under six heads:
first, that he had robbed the Eastern States of their specie;
second, that he was partial to Pennsylvania, being com
mercially connected with half the merchants of Philadel
phia ; third, that he was partial to the disaffected ; fourth,
that he had established a bank for sinister purposes ; fifth,
that his plan and the plan of Pennsylvania was to keep
Virginia poor; sixth, that he and the Secretary of Con
gress, with others, were engaged in speculation in tobacco
under the Yorktown license. He wrote a long letter at
the end of May to Daniel Clark, refuting each of these
charges in detail.*
In June Madison wrote to Edmund Randolph that he
saw malice was entertained against Morris, for which he
knew of no reason. " I am persuaded that he accepted his
office from motives which are honourable and patriotic.'*- I
have seen no proofs of misfeasance ; I have heard of many
1 Journ. Cong. vii. 295, 2 Dip, Corr, Rev, xii. 195.
^ Secretjourn, i, 237, * Dip. Corr. Rev. xii. 169.

Finances of the American Revolution. 53
charges which were palpably erroneous; I have known^
others somewhat suspicious vanish on examination ; every
member in Congress must be sensible of the benefit which
has accrued to the public from his administration. No
inteUigent man out of Congress can be altogether insensi
ble of it. The court of France has testified its satisfaction
at his appointment, which, I really believe, lessened its
repugnance to lend us money." ^ The prime mover in these
attacks in Congress was Arthur Lee. We have notes of a
debate which took place July 25.^ Lee said that more
money was reserved in France for certain purposes than
was necessary. He moved for a committee on the report
of the Financier. It was then proposed to stop drawing
bills ; but this alarmed those who expected bills for their
interest. In the midst of this Arthur Lee interposed a request
that he might be paid by bills of exchange the balance
which had been found due him, instead of by the loan-
office certificate which he had received. By a vote of
May 29, 1 78 1, he had been allowed to present invoices
and receipts as vouchers, also bankers' accounts showing
cash deposited; and if he could not give these, it was
ordered that the accounts should be kept open for later
' completion. The accounts were to be stated as ordinary
and extraordinary, and no other voucher was to be re
quired for either than the word of Mr. Lee.* If poor
Deane had found such treatment as this, he would no
doubt have come to stand as one of the heroes of the
Revolution. Lee had not rendered an account of 68,853
livres expended for Virginia, but turned over to the United
States. Mprris demanded this account.*. Lee, however,
was allowed to include that sum in his settlement. Morris
' Madison Papers, i. 137. ^ Thorason Papers, 65,
' Journ. Cong. vii. 91. ^ Dip, Corr. Rev. xii, 139.

54 The Financier and the
said that there were no funds on whicii the bills could be
drawn; but in spite of the state of the finances and aU
other considerations, it was voted that Lee should have
biUs of exchange for £,2,2^% ; and Morris was forced to
incur either the odium ofthe public creditors, by drawing
the bills for Lee which he could not give to others, or the
enmity of Lee, by refusing to pay him. In October, Mor
ris alleged that all loan-office certificates must be treated
alike; therefore that he could not convert those held by
Lee without a special order of Congress.' The original
order for the payment to Lee, among the papers in the
State Department, is a scrawl without date. There are
many interlineations and changes in the amount ordered
to be paid. The words : " And that the certificates given
to Mr. Lee for that balance be cancelled," are in a different
ink, and perhaps in a different handwriting.^ Lee charged
for three months that he served the country at London
before his appointment. According to the Thomson
Papers he put in that item in 1782 ; but a vote of Congress
appears, March 4, 1785, allowing him $1,977 for services
and expenses at London, in addition to ;£^20O sterling
which the Committee of Secret Correspondence allowed
him at the time.*
The entry in Morris's accounts shows the payment tp
Lee, who is called " Agent at Vienna," of $10,746, De
cember 10, 1782. The payment came out of money
begged in France.*
It was asserted that Lee's enmity to Morris caused him
to persuade Virginia to repeal her consent to the impost.^
That enmity certainly pursued Morris and cost him much
harm. Its personal and political consequences force the
causes of it upon our attention.
1 State Dep, MSS, 137, ii. 19. 2 Ibid. 5.
' Journ, Cong, x. 50, * Elliot, v.. 29. ^ See page 65.

Finances of the American Revolution. 55

August 22, 1782, Clark, Osgood, and Duane came as a
committee to pester Morris with questions as to why he
had done certain things. The attitude of that entire party
was, not to do anything to help or to support the efforts
which were made ; but if the officer was forced to do what
no one wanted to do, but what could not be helped, to take
the highest grounds of strict correctness for the purpose of
criticising him.^
In a communication to Congress, August i, 1783, Morris
stated that the States had paid on the requisition of 1782
as foUows : South Carolina, the whole, by means of sup
plies to the troops serving there ; Rhode Island, nearly a
quarter; Pennsylvania, above a fifth; Connecticut and
New Jersey, each about a seventh ; Massachusetts, about
an eighth ; Virginia, about a twelfth ; New York and Mary
land, each about a twentieth ; New Hampshire, about one
one hundred and twenty-first; North Carolina, Delaware,
and Georgia, nothing at all.^
On the 1st of August Morris notes in his diary that
people expected him to default that day on the notes given
to the officers in the previous February. When he gave
them out he expected that four miUions of dollars would
be paid in on requisitions in April and July. Instead of
that, he had not received fifty thousand. He was com
pelled to raise the money by seUing bills on France. The
amount was $140,266. Thirty-nine thousand dollars he
redeemed, paying part and getting an extension on the
rest. The remainder he was ready to pay. " So that the
hopes and expectations of the malicious and disaffected
will in this instance be disappointed." * His bills on
France, however, had simply adjourned the difficulty and
thrown the burden over on the agents in Europe, as we
shall soon see.
1 Dip. Corr. Rev. xii. 253. 2 ibid, 395. ' Ibid. 241.

56 The Financier and the
We may suppose that the despatch was received in Sep
tember, which Franklin wrote June 25, on receipt of the
orders of Congress to borrow twelve millions. " I had
already received the promise of six millions, together with
the clearest and most positive assurances that it was all
the King could spare to us, that we must not expect more;
that if drafts and demands came upon me beyond that sum,
it behooved me to take care how I accepted them, or where
I should find funds for the payment, since I could cer
tainly not be further assisted out of the royal treasury.
Under this declaration, with what face could I ask for
another six miUions? It would be saying. You are not to
be believed ; you can spare more ; you are able to lend
me twice the sum, if you were but willing. If you read
my letter to Mr. Morris of this date, I think you will be
convinced how improper language capable of such a
construction would be to such a friend." '
About June, 1782, a despatch was received from Frank
lin, dated March 4, in which he said: " The accounts we
have of the economy introduced by Mr. Morris begin to
be of service to us here, and will by degrees obviate the
inconvenience that an opinion of our disorders and mis
management had occasioned." ^ In a despatch of August
12, to Morris, he says: "Your conduct, activity, and ad
dress as a Financier and provider for the exigencies of the
State are much admired and praised here ; their good con
sequences being so evident, particularly with regard to the
rising credit of our country and the value of bills. No one
but yourself can enjoy your growing reputation more than
I do." * In this despatch he transmits the treaty which he
had made on the i6th of July for a settlement ofthe debt
to France. It was probably received in October, and was
ratified by Congress January 2, 1783.
> Dip. Corr. Rev. iii, 368. 2 jbid. 311. a Ibid. 49&

Finances of the American Revolution. 57
In this treaty were summed up the monetary obligations
of the United States to France up to that time, leaving out
of account three million livres given before the treaty of
alliance, and the six million livres which were a gift in 1781.
The total was eighteen million livres. It was promised
that this sum should be repaid in twelve equal annual pay
ments, beginning, the third year after the peace, with five
per cent interest from the date of this treaty. Arrears of
interest to this time were forgiven. In another article,
however, it was said that the five per cent interest should
commence upon the signing ofthe treaty of peace. The ten
million livres borrowed in Holland were to be paid in ten
equal annual payments, beginning on the 5th of Novem
ber, 1 78 1, with interest at four per cent, to begin from the
date that the loan was contracted ; but the King assumed
the expense of all the commissions and bank charges of
contracting the loan.^
At home, however, during this summer, there was little
improvement. The people were utterly weary of the war,
anticipated peace, and could not be stimulated to any
interest or activity. The requisitions of 1782 were for
$8,000,000, of which only $125,000 had been paid up to
September i.^ On the 27th of June Morris submitted to
Congress a draft of a resolution that loan-office interest
should be paid out of the five per cent impost, and not by
bills on Europe ; because such bills, " without producing a
full value to the parties, are very injurious to the finances."*
As there was no impost, this could not be adopted.
In September Livingston wrote to Franklin : " The mel
ancholy tale of our necessities is sufficiently known to you.
It has been too often repeated to need repetition. Mr.
Morris, who writes from an empty treasury, amidst per-
1 Treaties and Conventions, 254. 2 Dip. Corr. Rev, xii. 267.
8 State Dep. MSS. 137, i. 639.

58 The Financier and the
petual duns, will speak more feelingly. In short, money
must be obtained for us at any rate, whether we have peace
or war. France having already done much for us, and it
not being probable that we shall extend our demands be
yond the present, she may think it wise not to let us open
account with a new banker, since the debtor is always more
or less under obligations to the creditor." '
On the 27th of that month Morris wrote to Franklin,
urging him to get another loan from France. " The people
are undoubtedly able to pay; but they have easily per
suaded themselves into a conviction of their own inabil
ity, and in a government like ours the belief creates the
thing." In October he also addressed the governors again: "Our
enemies hold up to contempt and derision the contrast be
tween resolutions to carry on the war at every expense and
the receipts of nothing in some States, and very htde in aU
of them put together." ^
In June, 1782, the second American loan was started in
Holland, this time without an indorsement by France.'
August 18, Adams wrote that he had obtained 1,300,000 or
1,400,000 guilders.* This may be regarded as the turning-
point in the finances of the Revolution, for the United
States now began to borrow as an independent nation;
and although its credit fluctuated greatly in the next few
years, yet it was this power to borrow in Holland which,
as we shall see, enabled Morris to finish his administration
with a certain measure of dignity and success. We may
suppose that he knew of the success of the Dutch loan in
November. In the autumn, however, new demands were directed to
France. Lafayette told Fleury, the French Finance Min-
1 Dip. Corr. Rev, iv. i8, 2 Ibid. 289.
' Franklin in France, ii. 26. ? Dip. Corr. Rev. vi. 372.

Finances of the American Revolution. 59
ister, that he must let America have twenty million livres
that year. He said that he would not.' Franklin also
wrote to Vergennes, under the instructions of Congress,
asking for another loan, because another campaign would
probably be necessary.^ In October, however, Vergennes
wrote to Luzerne, approving of his firmness against Mor
ris's demands : The more exacting the Americans are, the
less they will get. If peace comes the King will cease to
pay the American army, " which will then be as useless as
it has habitually been inactive. But it will be dangerous,
I think, to announce this to Congress in the present state of
things. If they ask you for aid for the next year, say only
that you are ignorant of the King's intentions ; but do not
conceal from Mr. Morris that we are astonished at the
demands which they continue to make on us, while the
Americans obstinately refuse to pay taxes, and that it
seems to us much more natural to levy on them than on
the subjects of the King the taxes necessary for the de
fence of their cause. As to the payment of interest [on
the American loans], you may declare peremptorily that
the King will not undertake it, and that any dissatisfaction
which may result from this determination will serve only
to measure at their just value the gratitude and attachment
of the Americans for France." * Franklin also wrote on the
5th of December: "It is in vain for me to repeat again,
what I have so often written and find taken so little notice
of that there are bounds to everything ; and that the facul
ties of this nation are limited, like those of all other nations.
Some of you seem to have established as maxims the sup
position that France has money enough for all her occa
sions and all ours besides, and that if she does not supply
us, it is owing to her want of will or to my negligence." *
1 Dip. Corr. Rev. vi. 480, ^ Franklin in France, ii, 39.
« Circourt, iii. 288, * Dip. Corr. Rev. iv. 48.

6o The Financier and the
Another source of trouble and vexation was the con
tinued attempts of several of the States to obtain supplies,
CTTcontract loans, or obtain subsidies in Europe. April
27, 1782, Morris wrote to the Governor of Virginia in
regard to a loan which Virginia had obtained from the
King of France. Franklin asked Morris that the United
States should assume this as a part of its own debt to
France. Morris refused, and complained of these appU
cations by the separate States abroad.' In June the dele
gates of Virginia reported to the Governor that the French
Minister said that the means of transportation at the dis
posal of France were so occupied that it was doubtful if
they could be used to bring out the supplies purchased for
Virginia.^ They also reported that, out of the loan made
by France to the United States for this year, a deduction
of seven hundred thousand livres had been made on ac
count of stores purchased for Virginia by the French Min
ister; so that Virginia had become indebted to the federal
government to that amount* In September David Ross
informed the Governor that he had received from Europe
clothing for fifteen hundred or two thousand troops.* The
Governor wrote to Morris, asking him to buy these goods.^
October 23, Morris informed the Governor that Barclay,
the agent of the United States in France, had been in
structed to ship the military supplies in France which
belonged to Virginia, and that the United States would
take them. Congress having authorized this.^ November
29, he wrote again to the Governor, and expressed a hope
that any opinion which he had uttered on this matter would
not be misconstrued.'^ From this it appears that more of
the fault-finding had been developed in this connection.
In November Vergennes declared to Barclay that there
1 Dip. Corr. Rev. xii, 138. 2 Va. Papers, iii. 185. ^ i^id, 202.
« Ibid. 312. '¦ Ibid. 328. 6 Ibid, 353. ' Ibid. 384.

Finances of the American Revolution. 6 1
was great inconvenience in furnishing articles for the
States, to -be paid for by the United States. The States
ought to negotiate with Mr. Morris.' Franklin informed
Morris, in December, that Penet, the agent of Virginia for
borrowing money, was bankrupt and had absconded. His
creditors were worrying Franklin, whb had nothing to do
with his affairs. The States, by attempting to borrow
money in Europe, have hurt our credit and produced
nothing. "We have put our faith in every adventurer
who pretended to have influence here, and who, when he
arrived, had none but what our appointment gave him." ^
The general failure of all resources in the autumn of
1782 affected Morris's contracts for the support of the
army. He had a contract with Comfort Sands, made in
February, 1782, to supply the clothing which was lacking
on account of the loss of the " Lafayette." * Writing to
Oliver Phelps in March, Morris said that other nations had
adopted contracts as the best method of supplying armies.
" The experience of other countries could not satisfy Amer-'
ica. We must have it of our own acquiring. We have at
length bought it; but the purchase has nearly been our
ruin."* Contracts were used in 1776 at New York, both
in the State and continental service. There was some
clashing.^ May 6, the Superintendent of Finance was
directed to appoint inspectors for the two chief armies to
oversee the contracts of supplies, and report fraud, negli
gence, or waste of public property, in order that those who
were guilty might be subjected to court-martial.^
This system of contracts was employed, therefore, during
the summer for the Northern army. We shall see that
jealousy was occasioned in the Southern army. Septem-
1 Va. Papers, iii, 383. ^ N, J. Corr. 330.
" 5th Series Mass, Hist. Soc, Coll. iv. 243.
* Dip. Corr, Rev, xii, 127. « jj. y. Journ. i. 352, 387.
^ Journ, Cong, vii, 284.

62 The Financier and the
ber II, the contractors wrote to Morris that the sub-con
tractors would hold them liable for the difference between
specie ^nd Morris's notes. The taxes do not come in fast
enough to provide the receivers with funds to meet Mor
ris's drafts. These drafts being given out to all the agents
of the government, quartermasters, clothiers, etc., as well
as contractors, are paid out below specie par. When they
made their contract, they placed more dependence on
Morris's personal than on his official character. They
cannot be responsible for the supply of the army on their
contract. They must have monthly payments in specie,
or a guarantee against loss on the drafts. He refused to
give the guarantee, for the reason that the contracts would
then be useless.'
On the 23d of September he wrote to Ezek Cornell, who
was the inspector of the Northern army, as follows : " This
day's post has brought me a state [statement] of receipts
for the week [that is, what the receivers of taxes had
received on account of the Confederation]. The whole
amount is short of seven thousand dollars; and of that
which is received, I do not touch one thousand in specie.
The rest is paid in paper, which was an anticipation. My
engagements are very numerous and weighty ; and although
I have determined to incur no new expense, not even the
slightest, yet those already incurred are sufficient to ruin
the credit I had taken so much pains to establish, unless I
can procure a respite." He declares that he wiU have to
cancel the contracts and leave the army to impress sup-
plies.2 On the 5th of October Cornell replied that Colonel
Wadsworth had taken up the contract. The writer has
also adjusted the accounts of Sands, and he advises Morris
to accept the settlement agreed upon, lest the sub-contrac
tors should sue Sands, and make trouble on account of
1 State Dep. MSS. 137, i. 833 and fg. 2 lyd. 847.

Finances of the American Revolution. 63
Sands's due bills not being paid. If the settlement is
accepted, Sands will pay his due bills and close everything
up. Cornell also urges Morris to give the soldiers two
months' pay, and to direct a quarter of a dollar per week
to be paid to privates, and a half dollar to non-commis
sioned officers, that they may have something to amuse
themselves with. Being well clothed and fed, they wiU
then be very comfortable.' Morris sent a circular to the
governors, informing them of this trouble with the con
tractors. He thought the contractors had a right to de
mand indemnification ; but he did not dare give it, because
they would no longer be under any restraint. His new
contracts were made at an advance of one third,^
It appears that there was an arbitration between the
treasury and the contractors, for the expense of it — sixty-
three dollars — appears in the accounts.
October 18, 1782, Congress adopted an ordinance regu
lating the post-office. The postage was set in pennyweights
and grains of silver, each pennyweight to be five ninetieths
of a dollar " as at present." For a distance not exceeding
sixty miles the postage was to be one pennyweight eight
grains; between sixty and a hundred miles, two penny
weights; between one hundred and two hundred miles,
two pennyweights sixteen grains ; and so on, increasing
sixteen grains for every hundred miles. An ounce was
four letters.*
In December, 1782, Joseph Reed wrote in reference to
Morris that he was a Colossus, who bestrode not only all
the other officers in Congress, but even Congress itself.*
1 State Dep. MSS. 137, i. 854,
2 Dip. Corr. Rev, xii. 287 ; Madison Papers, i. 186.
» Journ. Cong, vii, 386. * Reed's Reed, ii, 390.

64 The Financier and the

CHAPTER XX.
THE impost; TAXATION UNTIL 1 789.
THE one point to which the financial difficulties must
constantly return was taxation. Without that there
was no finance, but only paper-mongering and bill-kiting.
An import duty was also the tax called for by the situa
tion. No one, in fact, disputed these assertions as abstract
propositions. The first proposition for an impost — that is to say, for
an uniform import duty — came from the Price Convention
at Hartford, Connecticut.' February 3, 1781, Congress
recommended the States to vest the power in Congress
to levy five per cent on all imports, after May i, 1781, ex
cept arms, ammunition, and clothing, or other articles im
ported for the United States or any State ; also excepting
wool cards and cotton cards and wire for making them.
and salt during the war.^ This was as far as they dared
go, although there was a proposition to ask for a general
power to regulate commerce and lay duties on imports.
The Articles of Confederation had not yet been adopted.
This was a proposition to amend them. There was a
sanguine expectation on the part of Morris and those who
sympathized with his views that the States would soon, in
spite of some reluctance, accept and consent to this propo
sition. The result put them in the position of having
quite misjudged the situation. It will be noticed that the
1 Hamilton's Republic, i. 553, 2 journ. Cong. vii. 72.

Finances of the American Revolution. 65
plan was proposed just before Morris was appointed.
That it would be adopted was one of the most important
and essential assumptions on which he founded his pro
jects for the administration of the finances. His disap
pointment in respect to it frustrated his plans, and gave to
his career as Financier a direction and character totally
dift'erent from what he had expected.
Virginia immediately assented to the impost. Massa
chusetts remonstrated against it.' Rhode Island also
objected. January 3, 1782, Morris sent to the governors a copy
of a letter addressed especially to Massachusetts, Rhode
Island, and Maryland, which had not consented to the five
per cent impost. He throv/s on them the responsibility
for the failure of the public credit and all the disasters to
be expected. " The hope of our enemy is in the derange
ment of our finances."'^ Virginia, however, withdrew her
assent to the impost. Madison, writing to Edmund Ran
dolph, said that many held the opinion that Arthur Lee's
enmity to Morris caused him to induce Virginia to take
this action.* Arguing on the necessity of the impost,
Morris wrote to the President of Congress, February 11,
1782: "Let us apply to borrow wherever we may, our
mouths will always be stopped by the one word ' security.'
The States will not give revenue for the purpose, and the
United States have nothing to give but a general national
piomise, of which their enemies loudly charge them with
the violation." * The subject now went over until the next
December. In August, 1782, Morris replied to the Rhode
Island objections, which were immediately afterward re
peated in more elaborate and emphatic form to Congress."
1 Secret Journ. i. 215. = Va. Papers, iii, 5,
« Madison Papers, i. m. " Dip. Corr. Rev, xii. 100,
6 Staples, 387,
VOL, II. — 5

66 The Financier and the
Hamilton came into Congress in November, 1782, and
during that winter an earnest attempt was made to carry
the impost. December 6, the Superintendent of Finance
was ordered to represent to the States the necessity of
their paying in $1,200,000 to meet the interest on the
debt, and $2,000,000 for current expenses. It was also
voted to send a deputation to Rhode Island to ask that
State to consent to the five per cent impost. A letter was
adopted to be sent to Rhode Island, On the 12th of De
cember a letter from the Speaker of the lower House of
Assembly of Rhode Island was read, stating the reasons of
that State for refusing, namely, First, that the tax would
bear hardest on the most commercial States ; second, that
it would introduce officers into the State unknown to, and
unaccountable to, the State; third, that it would give Con
gress power to collect money from the commerce of the
State indefinitely as to time and quantity, and for the ex
penditure of which Congress would not be accountable to
the State.'
It is noteworthy that these objections were the complete
echo of those made against the English taxes before the
war. Reports were published in the Rhode Island newspapers
that letters had been received from Adams to the effect
that his loan was being rapidly taken, that the credit of
the United States was very high, and that the only danger
was of borrowing too much. A committee of Congress
having been appointed to consider this statement, they re
ported that it was untrue ; as it was, in so far as it stated
that the Dutch loan was providing enough money to meet
the necessities. The committee declared that they sus
pected some member of Congress of being responsible for
the publication. They were instructed to go to Providence
1 Journ, Cong viii. 25.

Finances of the American Revolution. 6'J
and find out who it was. On the 17th Mr. Howell of
Rhode Island declared that he was the man, and proposed
the revocation of the vote of investigation. This motion
was lost, no one but the Rhode Island men voting for it'
It appears that the committee went to Rhode Island,
for an entry of their expenses appears in the accounts, —
$ 1 ,000.
The answer of Congress to the Rhode Island objections
is understood to have been written by Hamilton. In it, it is
asserted very positively that, under the Articles of Confed
eration, Congress has " an absolute discretion in determin
ing the quantum of revenue requisite for the national
expenditure. When this is done, nothing remains for the
States separately but the mode of raising it. No State can
dispute the obligation to pay the sum demanded, without a
breach df the Confederation ; and when the money comes
into the treasury, the appropriation is the exclusive prov
ince of the federal government." Congress has a right to
appoint officers in the States for the collection of taxes.^
These doctrines were rather high for the States-rights
party, even the moderate members of it, especially in
Virginia,* In this connection, however, Hamilton made a proposi
tion which showed that he had clearly perceived one of
the mistakes which Congress had made. He proposed to
revise the requisitions and lower them to the point where
the States could meet them. He said that they produced
despair and apathy when they were too large.* It is certain
that they were unnecessarily large; and in the retrospect,
a few years later, people might have argued with very
great reason that the expenditures had been restricted by
the neglect or refusal to provide Congress with money.
1 Journ. Cong. viii. 29; Staples, 412. 2 Elliot's Debates, i. 135.
» Jones's Letters, 116, * Madison Papers, i. 233.

68 The Financier and the
The perversity of the Rhode Island delegates, in oppo
sition to all the rest, and their method of pursuing their
purpose, gave great effence, and exposed them to formal
censure. The anarchical, anti-federal. States-rights doc
trines cropped out in distinct form, as a premonition ofthe
form under which, in an independent union, the old colo
nial fallacies would present themselves.' Hamilton was in
the thick of the fight with these elements from the very
first. February 19, 1783, he made a speech in which he
said that it was useless to answer the points put forward by
Rhode Island, because they were not the real motive of her
opposition. Under existing arrangements she was taxing
Connecticut, and she did not want to be disturbed.^
January 30, 1783, a committee of Congress presented a
report on the finances, which was probably prepared by
Hamilton. The five per cent impost recommended Feb
ruary 3, 1 78 1, had been rejected by one State, another had
withdrawn its assent, and a third had made no answer.
Of the eight millions demanded for the service of 1782,
only four hundred and twenty thousand doUars had been
received. The loans obtained in Europe had produced, as
available for that year, only $833,000, so that the total
available resources were only a little over a million and a
half The estimated expenditure was $5,713,000, without
counting interest on former debts, which would alone
exceed all the money at their disposal.
In the spring of 1783 the Legislature of South Caro
lina reconsidered the vote on the impost. While it was
pending, on the 8th of March, General Greene wrote a
letter to the Legislature, as he had often done before during
the war. In it he maintained nationalist doctrines, which
were then unpopular in the State, and he urged that some
thing should be done for public credit and the support of
1 Staples, 393 1 Madison Papers, i. 220, 232. 2 Mad. Papers, i. 342.

Finances of the American Revolution. 69
the army. This made the Legislature very angry. They
construed it as congressional and military dictation. They
repealed the five per cent tax.^
On the 1 8th of April the project of revenue was
adopted in Congress by nine States, Rhode Island alone
voting no, and NewYork being divided, because Hamilton
voted no.^ This project provided definitely for only a part
of the revenue which would be necessary to pay the inter
est on the debt. The States were left to provide the re
maining part that would be necessary in any way they saw
fit. Hamilton and Morris were both greatly discontented
with it. It required still the ratification of the States ; and
Hamilton wrote to Governor Clinton that he voted against
the plan because it had little more chance of success than
a better one, and, if adopted, would fail in execution.* In
March, when that plan was pending before Congress,
Morris submitted a plan, in which there was not a uniform
five per cent rate, but a classified tariff, and some export
taxes, a land tax, a house tax, and an excise. The collect
ors were to be appointed by Congress. The plan sounds
as if it must have been at least inspired by Hamilton.
In response to the project of taxation of April 1 8, Massa
chusetts addressed Congress, September 25, 1783. The
half-pay for the officers and the large salaries caused dissat
isfaction to the people of that State. They think it necessary
to expressly inform Congress that the things complained
of " are extremely opposite and irritating to the principles
and feeUngs which the people of some Eastern States, and
of this in particular, inherit from their ancestry." This is
why Massachusetts has not been able to grant the impost,
although she saw the necessity of sustaining the public
credit. A committee of Congress reported on this, that, at
1 Johnson's Greene, ii. 386. ''' Journ, Cong, viii. 139.
8 Hamilton's Works, viii. 117.

70 The Financier and the
the time the half-pay was adopted. Congress was extremely
anxious to retain officers, and did not know how else to do
it; that the position taken by Massachusetts would lead to
a dissolution of the Union ; and that the commutation was
fixed and now irrevocable on principles of justice.'
If each State was to rejoin to the requisitions of Con
gress by this sort of remonstrance and argument, according
to local views and prejudices, it was evidently all over with
the Union.
We have seen that when Morris came into office he had
a rational plan of action, which of course rested on taxa
tion. Therefore, from the very beginning, he had insisted
on that policy, not only with respect to the impost, but by
the use of other taxes.
In August, 1 78 1, he sent a communication to Congress,
in which he urged a plan of taxation. He wanted not
only import duties, but a poll-tax, a land tax, and an excise
on spirits.^ He wrote to Jay that people resist taxes while
the expenditure is wasteful. He counted on his reforms
in the expenditure to make taxation more productive.*
In February, 1782, he made to Congress another propo
sition for taxation. He proposed a dollar on each hun
dred acres of land, a poll-tax of a dollar on each freeman
and male slave between sixteen and fifty, except " such as
are in the federal army, and such as are by wounds or
otherwise unfit for service." His language leaves it ambig
uous whether this exception applies to slaves. He also
proposed an eighth of a dollar per gallon tax on spirits.*
In April he wrote to General Greene : the States at present
" content themselves with the assertion that each has done
most, and that the people are not able to pay taxes."
June II, 1782, he wrote to Jenifer of Maryland: "The
1 Journ. Cong. viii. 275, 2 state Dep, MSS, 137, i. I2i.
' Dip. Corr. Rev. vii, 423, * State Dep. MSS, 137, i. 347.

Finances of the American Revolution. /i
taxes required are very moderate when compared either
with the real wealth of the people or the former expenses
which they have borne." Every State thinks its own quota
the largest, " and would be very happy to apologize to the
world for doing nothing, with the thin and flimsy pretext
that it has been asked to do too much. ... It is a vain
thing to suppose that wars can be carried on by quibbles
and puns ; and yet laying taxes payable in specific articles
amounts to no more, for with a great sound they put little
or nothing in the treasury." ' Addressing the President of
Congress, July 29, he made the assertion that in America
three days' labour would produce sustenance for a week. It
would not be unreasonable to ask two days in a year as a
contribution for the payment of the public debt, especially
with an exemption for inability. He proposed to get this
contribution by a poll-tax. " Labour is in such demand
among us that the tax will fall on the consumer. An able-
bodied man who demands a hundred dollars to go into mil
itary service for three years cannot be oppressed by the
annual payment of one dollar while not in that service."^
¦July 30, he addressed the governors, calling their attention
to the fact that Congress had ordered the continental and
State taxes to be collected separately. If they were col
lected together, the same person would be collector of
both, and the executions to enforce both would issue from
the Treasurer of the State. Therefore a preference would
be given to State taxes ; and if there was no occasion for
an execution for the State taxes, none would issue for the
continental ; also, if the collector was in arrears on differ
ent taxes, he would apply all his coUections to that one
which was demanded most sharply of him, and let the
other wait the longest time. He quotes a letter which he
has received from one of his agents [probably Hamilton],
» Dip. Corr, Rev. xii 192, "^ Ibid. 230.

72 The Financier and the
that the collectors are in arrears for every State tax since
1776 in the State where the writer is, and are using the
njoney coUected on continental taxes to pay the arrears of
the old State tax.' In January, 1783, Morris wrote to
President Dickinson of Pennsylvania, that the quota of
' Pennsylvania for 1782 was $1,120,794, of which there had
been paid only $107,925. " Laws not executed only sub
stitute deception for denial." ^
The first appearance of receipts from taxes in Morris's
accounts is in June, 1782. In the quarter ending at that
time, Rhode Island paid in $9,645 ; New Jersey, $15,912;
Pennsylvania, $4,657.
November 3, Morris wrote tc Luzerne : " Whatever may
be the wealth of the inhabitants of America, and however
capable they may be of bearing heavy taxes, this at least
is certain, that they have neither been accustomed to them,
nor have the Legislatures hitherto adopted the proper
modes of laying and levying them with convenience to the
people. Taxation requires time in all governments, and is
to be perfected only by long experience in any country.
America, divided as it is into a variety of free States, pos
sessing sovereign power for all domestic purposes, cannot
therefore be suddenly brought to pay all which might be
spared from the wealth of her citizens. The amount even
of that wealth is very disputable. Our extensive forests,
though they are valuable as property, are by no means
productive to the revenue ; and many of our people have
endured such losses that they require alleviation, instead of
being able to bear burdens. Besides this, the use of many
articles not strictly necessary are become so even by that
use, and therefore the mode of living, being habitually
more expensive than in other countries, requires greater
wealth. A good prince would not suddenly render the lot
1 N. J. Corr. 321. 2 Penn. Archives, ix, 740.

Finances of the American Revolution. 73

of his subjects worse ; how then are we to expect that the
people themselves wiU do so ? " When we remember that
this argumentation was addressed to the nation which was
paying the bUls, we can hardly suppose that it would be
found very conclusive. Since the paper has been put out,
he says, a large part of the revenue must consist in paper;
and there is no other way but to take the paper in taxes and
destroy it. He goes on to argue that the war will be fatal
to Great Britain, but that it wiU give commerce to France,
and the King's honour is pledged. The subjects of France
will for ages obtain advantages in commerce for the money
now spent'
In 1782 Hamilton made a report on the tax system of
New York to Morris, and gave at the same time an intelli
gent criticism of it. He took the office of Receiver of con
tinental taxes in New York, in order to help Morris in his
plans. He is the only subordinate Morris ever had at his
disposal who was capable of responding, or did respond,
to the demands which the Financier found it necessary
to make on State officers for information or intelligent
co-operation. On account of the predominance of the rural interest,
the city of New York was made to bear about one third of
the State taxes. It ought not to have been over a quarter.
The general aim of the tax system was, by means of Com
missioners, to apportion taxes " according to circumstances
and abilities, collectively considered." That is to say, they
made an experiment of those notions about taxation which
always present themselves easily to inexperienced persons,
whatever may be their professional or political position.
They wanted to reach " equality of sacrifice," taking into
account aU a man's circumstances and abilities. The con
sequence was, as Hamilton says, that a man's mode of life
1 Dip, Corr. Rev. xii. 4

74 The Financier and the
and the impression which he made on his neighbours by
his bearing and mode of business told more than anything
else. In the Legislature there were constant cabals of the
members from the different counties to try to evade the
burden, for the tax in the first place was apportioned in
quotas on the counties. There were on an average sixteen
supervisors in a county. They apportioned the county
quota on the smaller districts, under a similar system of
special combination. The assessors were officers in the
townships, whb apportioned the taxes on individuals ac
cording to their judgment, as above stated. At this point,
therefore, special advantages and exemptions were won by
those who were in friendship with the assessors, so that the
system was one of favouritism, as any system of apportion
ment of social burdens by a commission endowed with dis
cretion must always be. In all this there was no haste.
The collectors were another set of officers whose functions
began when those of the assessors were completed. They
did their work nominally under the oversight of the super
visors, but really under no oversight. It depended on the
zeal ofthe collector, and the good-wiU ofthe people in his
district, what amount of taxes was collected. The collectors
paid to the county treasurers, and they to the State trea
surers. There was no responsibility and no coercion in the
system.' We may here add what seems necessary with regard to
the history of taxation during the latter part of the period
which we are studying.
June lO, 1782, Luzerne made a report from Philadelphia:
" No influence can persuade the people to tax themselves.
We had great hopes before the recent disasters to com
merce ; but almost all the legislatures without exception
allege their inability, which they say results from this cause.
1 Hamilton's Works, viii. 63,

Finances of the American Revolution. 75
. . . Mr. Morris is obliged to have recourse to dangerous
expedients for the execution of the engagements which he
has contracted. He had reduced the pay of the officers of
the army, and they had consented, in the hope of being
paid regularly ; but he is forced to suspend certain pay
ments, and the result is trouble in the army." He refers
to the revolt of the Connecticut Une. The anticipation of
peace prevents new levies. An ex-Governor of Virginia
has proposed that no taxes be laid till the middle of
next year. It met much support, but has been rejected.
The army of the South is even worse off than that of
Washington.' Livingston wrote to Adams, December 19, 1782: "It is
extremely difficult in a country so little used to taxes as
ours is to lay them directly, and almost impossible to im
pose them so equally as not to render them too oppressive
on some members of the community, while others contri
bute little or nothing. This difficulty is increased by the
continual change of property in this country, and by the
small proportion the income bears to the value of land." ^
He wrote again to the same, February 13, 1783 : " Our
distress for money has rather increased than diminished.
This object will demand your attention full as much if the
war should be terminated as if it should continue. The
army and the other public creditors begin to grow very
uneasy, and our present exhausted situation will not admit
of internal loans or such taxes as will suffice to give them
relief" *
Morris wrote to the governors, July 11, 1783, that he
had anticipations out for more than a miUion. It is
another exhortation to raise taxes. He combats the no
tion that we have funds in Europe, or that there is no
hurry about taxes, because the notes which he has issued
1 Circourt, iii, 286. ^ Dip, Corr. Rev. vii. 5. ^ Ibid, 24.

^6 The Financier and the
are at six months, and refers to his reports to answer
the question what becomes of the money paid in taxes.'
To Gerry he wrote, August 26, 1783: "The ability of
the States . . . has never been put to the proof by pru
dent and vigorous taxation, because other countries not
so wealthy bear much heavier taxes without inconven
ience, and because these very States have borne it, though
under another name; for the depreciation of the paper
money, which wiped away not less than twelve millions
annually, was in effect a tax to that amount."^
To Franklin he wrote, September 30, 1783 : " Our
people still continue as remiss as ever in the payment of
taxes. Much of this, as you justly observe, arises from
the difficulties of collection; but those difficulties are
much owing to an ignorance of proper modes and an
unwillingness to adopt them." They all admit that there
must be taxes, but each wants to shift them on his
neighbour.* Hamilton wrote that in Massachusetts, in 1780, taxes
were so heavy that there were real signs of distress. The
Legislature stated them at ;£6oo,ooo, and they reduced
them, although they were contracting a loan.*
In 1785 Massachusetts had a debt of over ;^I, 400,000
currency, and a tax of ;^iOO,ooo. The population was
363,000. The debt amounted to £Af ^s. 2d. per capita, —
that is, $13.97; and the tax amounted to five shillings and
sevenpence, or ninety-three cents per capita.®
In 1796 Gallatin wrote: "During the war Pennsylvania
raised some enormous taxes, far beyond her abilities, the
arrearages of which are not yet finally paid." ^ From
1 Dip, Corr. Rev. xii, 376, ' Ibid. 403. ' Ibid. 417.
* Hamilton's Works, iii. 92.
5 Hist. Mag., March, 187 1 ; from Chickering's Statistics of Mass.
' Gallatin's Writings, iii. 166.

Finances of the American Revolution. yy
March 20, 1778, to March 21, 1783, Pennsylvania under
took to raise by taxation ;£'20.9 millions in continental,
^367,281 in State currency, and .£745,297 in specie.
These amounts were distributed in quotas on the counties.
The amounts due August i, 1784, were ;^3.i milUons con
tinental, ;^ 1 36,68 1 State, and ;^476,239 specie. It was
stated that the counties had contributed very unequally.'
The specie value of what they had paid could not be put
higher than two million dollars. This amount had been
paid in five years by a State in which there were sixty
thousand adult males. We have a later statement that
between 1782 and 1787 the amount of taxes paid into the
State was £74.,719, and that the amount due and unpaid
for the same period was ;^25 1,379.^
May 6, 1784, the Legislature of New York laid a tax
of ;^io,ooo on Suffolk County, ;^i3,ooo on King's, and
;^i4,ooo on Queen's, which was caUed the "back tax," as
compensation to the rest ofthe State, because those counties
had not shared the burdens ofthe war from 1776 to 1783.*
June 10, 1784, Benjamin Hawkins of North Carolina wrote
to Washington that a tax laid by that State amounted to
only sixpence on every hundred acres of land, and a poll-
tax of one shiUing and sixpence on all white males over
twenty-one years of age and on all slaves from twelve
years old to fifty.*
In Virginia in 1784 begins a series of judgments awarded
against the sheriffs of the different counties for balances of
taxes due on previous years, with interest.® By a report
of the SoUcitor-general in February, 1785, it appears that
the deUnquencies of taxes for 1783 were nearly $200,000.
Many of the largest and wealthiest counties were most
' 9th Assembly, 49. ^ Lloyd's Debates, i. 69.
3 Onderdonk's Suffolk & Kings, no. ^ Letters to Washington, iv. 69.
6 Va, Papers, iii. 591.

78 The Financier and the
delinquent, and those which had been occupied by the
enemy during the war were less delinquent.' In Decem
ber, 1785, the sheriffs of twenty-eight counties pray for
relief and remission of taxes. They have not been able
to collect the taxes, on account of the poverty of the
people and the scarcity of money .^ If they distrain the
property and try to sell it, there are no bidders for it.*
In October, 1786, the Solicitor of the State reported to
the Governor that, on account of the errors in the returns
of taxable property, he could not get judgment against
the sheriffs for the taxes of 1785.* In that year the dele
gates of that State in Congress made a plan for new taxes
to supply a deficiency of $434,582. They make an enu
meration of the subjects of taxation. They propose to
tax carriages, and also to take a fraction of the fees of
various court officers; also to tax physicians, surgeons,
and apothecaries, improved lots of land, retail merchants
in large cities and small towns at different rates, and to lay
a two per cent duty on imports, and six shillings per hogs
head of tobacco. With all this they do not, by their own
calculation, provide one half the deficiency.®
All through 1786 the sheriffs in Virginia were complain
ing of the impossibility of coUecting taxes, and petitioning
to be relieved from their responsibilities. In 1787 a report
of David Ross to the Governor showed that many counties
were in arrears of taxes since 1782, and that in some cases
the coUectors had speculated in paper money, buying it
up at a discount and paying the arrears therewith,^ At
the end of 1787 the sheriffs of nine counties were stiU pe
titioning for relief from back taxes.' In April, 1789, the
Solicitor of the State reported to the Governor a list of
1 Va. Papers, iv. lo,
2 Chastellux first found a class of poor persons in Virginia. He attributed
the existence of this class to the system of great estates (Chastellux, ii. 190).
» Va. Papers, iv. 77. « Ibid. 178. 6 ibid, iv, 215.
6 Ibid. 230. 7 Ibid. 377.

Finances of the American Revolution. 79
the sheriffs, with their deficiencies in the collection of
taxes, for the years since 1782.' In March, 1790, a State
agent reported that he found in several counties consider
able sums of money in the sheriffs' hands, collected from
delinquents on the specific tax of 1782, which they had not
paid over.2
If any one has doubts of the intimate connection between
finance and politics, and about the constant influence of the
former on the latter, he should study the Virginia Papers.
They throw a very important and most unedifying light
on the political position of the Virginia anti-federalists.
We have seen in the preceding pages ample proof that
the distress and havoc of the war was perhaps greater in
Virginia than anywhere else, while the inefficiency of the
war efforts was perhaps more striking in that State than
anywhere else ; and we have seen that the reason of this
great cost on the one side, and small result on the other,
was the faults of the administration. After the war was
over this same inefficiency of administration produced the
result that little or nothing was done to bring the finances
into order, or to discharge the obligations ofthe war, while
some other States were rapidly and easily regulating their
finances and paying their debts.
On account of the maladministration through this period,
the persons who had suffered hardship by impressments
and damages had in some cases received no vouchers for
the loss, while in other cases they had received extrava
gant and undue compensation. Confusion, loss, and in
justice prevailed on all sides. Then, when it was proposed
to adjust the accounts between the States and the Union,
Colonel Davies, the agent of Virginia, set to work to col
lect vouchers ; and, as that was possible only in very few
cases, to collect secondary and incidental evidence of the
expenditures in the State ; that is, he had to try to remedy
» Va. Papers, iv. 595. ^ Ibid. v. 121.

8o The Financier and the
the negligence and waste of the past. This he was called
upon to do, not on behalf of the individual sufferers, but
on behalf of the State ; and his task resolved itself into an
attempt, not to simply set in order and present the true
facts of the case, but to inflate to the greatest possible
degree the claims and charges which the State might
make against the Union. Those States which had man
aged their affairs with comparative order and regularity
were, therefore, to suffer doubly by the misbehaviour of
those which had allowed everything financial to fall into
chaos ; for they all Vied with one another in making their
claims against the Union as big as possible, when it came to
the settlement, just as they had all vied with one another,
during the war, in their efforts to make their contributions to
the common cause as small as possible. Those which had
the fewest books and vouchers were the freest in swelling
the figures of accounts made up by construction out of
secondary and incidental evidence. In view of all these
facts, we see that the Virginia anti-federalists were trying
either to obliterate all the accounts, in order that nobody
might be paid, or else, if all were to be paid, to create ques
tionable accounts on behalf of their own State. We have
here, therefore, very strong evidence indeed in favour of
the fact which Hamilton alleged as his controlling motive
in assumption, and a strong reinforcement of his argument
that the different States had behaved very differently in
keeping accounts and in their methods of charging expen
diture; and that it was hopeless to do justice between
them, if each was left to act for itself We have also a
strong justification of his plan of allotting an assumed sum
between the States, in order to cut off the operation by '
which, while each vied with the others in swelling its de
mands, the aggregate of their demands against the Union
was being increased beyond all limit.'
1 Hamilton, 154.

Finances of the Americatt Revolution.

CHAPTER XXI.
MORRIS'S UNPOPULARITY IN THE SOUTHERN SIATES ; MORE HETERO
GENEOUS TASKS ; THE MEMORIAL OF THE ARMY OFFICERS ; THE
OVERDRAFT OF JANUARY, 1 783 ; MORE APPEALS TO FRANCE.
THE States from Virginia southward became greatly
irritated against Morris during 1781 and 1782. The
causes and consequences of this fact were important.
General Greene wrote to Reed, May 4, 1781, that the
power of the Southern States to support war was not nearly
so great as had been supposed. The whigs and tories were
butchering each other, and the whigs would do nothing
unless the tories were forced to do as much. He com
plained of the lack of energy. The people would do noth
ing when the enemy had passed away from the immediate
neighbourhood.' After the downfall of the continental paper in May,
1781, at Philadelphia, specie came into general circulation
there. Inasmuch as the paper remained in use south of
the Potomac, specie did not come in there. The Southern
ers took into their heads an ineradicable notion that Mor
ris had obtained large amounts of specie from France,
which belonged to all, ought to have been shared among
all, but had been kept at Philadelphia unfairly. This opin
ion and the ill-humour produced by it are fully expressed
by Johnson, who indeed seems to be not free from the
same state of mind.^ The Southern States also thought
i Reed's Reed, ii. 351. ^ Johnson's Greene, ii, 253, 360, 373,
VOL, II, — 6

82 The Financier and the
themselves abandoned by the rest when it came their turn
to be overrun. In this they were not peculiar, for each
State, when it was the seat of war, thought the same.
When Morris took office Congress recalled and turned
over to him all the bills which they had drawn and placed
in the hands of various agents. This step was essential
to the new system, and to correct the abuses of the old.
Among the rest were some bills on Franklin, which- had
been appropriated to the use of the Southern army, and
put in the hands of Burnet, the purchasing agent there.'
Johnson says that Burnet spent $20,000 of them in defi
ance of Morris. The latter treated these bills as generally
available, and disregarded the previous appropriation of
them. Johnson finds a grievance in the fact that Morris de
manded that the Southern army should wait for the goods
which John Laurens had brought to Boston. It was no
doubt long to wait, especially for men who were in the
direst necessity; but if the bills had been sold in order to
buy clothing here, and the clothing which had been bought
in Europe with the money borrowed there had been left
unused, there would have been a double expenditure of
the slender resources which Morris was striving so hard to
economize. When every dollar was needed five or six
times for separate and great necessities, he could not allow
two of them to be spent in supplying one necessity.
Perhaps Morris meant sympathy and condolence when
he wrote to Greene: "The Superintendent of Finance in
particular, circumstanced as the American Superintendent
is, must give the fuUest applause to an officer who finds in
his own genius an ample resource for the want of men,
money, clothes, arms, and supplies." He did not leave
Greene entirely neglected, for he sent an agent to be with
I See vol. i. p, 282,

Finances of the American Revolution. 83
the army, with a small sum, to intervene in the direst
extremity,' — which was reached and passed.
Speaking of this agent. Hall, Johnson relates the matter
as follows: "If the money at this time deposited in his
hands was intended for the occasional use of the army, he
certainly did great injustice to the views of Mr. Morris ;
for his having money of the United States or of Mr. Mor
ris in his hands for the use of the army, appears to have
come accidentally to the knowledge of General Greene,
and when the latter, on the 6th of November, required of
him an advance of 1,200 guineas, he intimates in his an
swer of the Sth ' that the money had been confided to him
by Mr. Morris to take up his notes or those of his bank;'
we presume at their depreciated value, for he says: 'Should
I part with it, I shall be exceedingly censurable, partic
ularly after Mr, Morris's instructions to me, wherein he
says that every shilling of it to him is worth pounds.' He
admits, however, ' that he was authorized to let General
Greene have small sums upon the most pressing occa-
.sions.' General Greene conceived that this most pressing
occasion had arrived, and notwithstanding Mr, Hall de
clared that he should be bankrupted by the demand, in
sisted upon and obtained the 1,200 guineas."
When Morris began to supply the army by contract, at
the beginning of 1782, he did not extend the system to the
Southern States. This led to new dissatisfaction. Gov
ernor Harrison of Virginia, in a letter to the Council, in
January, 1782, after complaining of the State laws which
had robbed the executive of all necessary power, went on
to say: " It has long been matter of wonder and indignant
surprise to me that Congress and its ministers have not
taken the measures for supplying your army that they
have taken in every State to the north of us ; that is, by
1 Marshall's Washington, iv 557 n.

84- The Financier and the
contract. With us, they depend on this State for every
thing, though they know it can only be obtained by force ;
and when their wants are supplied, they even refuse to
give us credit for what they have obtained, but insist on
our full quota of money being paid into their treasury.
It is this kind of partial conduct that is the true cause of
our distress, and that will in the end, if not amended, be
attended with ruin both to you and us." ' In the Virginia
Papers there are several instances to be found in which
this gentleman was over-hasty in assuming that he had a
grievance against somebody. It is not true that credit
was refused to Virginia ; but her own State documents
show that through the faults of her own administrative
system she had no vouchers upon which to make claim in
proper form. Morris replied to this complaint of Gover
nor Harrison, repelling the strictures on Congress and him
self, and urging the Governor to perform the duty of Vir
ginia in supplying the Southern army,'^ In February the
Virginia delegates, having conferred with Morris, reported
to the Governor that he would provide for the Southern
States by contracts as soon as taxes were laid there. This
was his ground from which he would not swerve.* June
21, Congress asked him to report why he had not supplied
the Southern army by contract.* The answer is not at
hand, but it no doubt was to this effect, for contracts were
not introduced there. .
In February, 1782, Greene said of Virginia and North
Carolina; "They both appear like two great overgrown
babies who have got out of temper, and who have been
accustomed to great indulgence,"®
In the same month the Deputy Quartermaster, Clai
borne, having written to Pickering what complaints were
1 Johnson's Greene, ii. 311, 2 va. Papers, iii. 77. 8 ibid. 76.
1 Journ. Cong, vii 302. 5 Rfed's Reed, ii 378.

Finances of the American Revolution. 85
current in Virginia, the latter was provoked to this indig
nant outburst: "That your government, too, should com
plain, as you suggest, is to me a matter of astonishment.
Good God ! from what sources are public moneys to be
derived? Is it imagined that the Financier has the power
of creation, that the appointment of that officer was to rid
the State of all further trouble and expense ; that it was
to receive moneys from, instead of supplying the public
treasury?" The Quartermaster goes on to say that the
state of things everywhere else is the same as in Virginia ;
that he has carried on his department almost wholly by
persuasion and impresses. The States have furnished the
Financier no funds.'
In April Colonel Carrington declared : '' Nothing but
the most criminal negligence in the different States can
frustrate Mr. Morris's views of giving our finances the firm
est basis. Of this I am a little fearful. The jealousies
and the intolerable indolence which prevail are really
alarming." ^
Another matter which produced new cause of dissatis
faction and suspicion was the exportation of tobacco from
Virginia under the capitulation of Yorktown. Morris was
authorized to buy for the United States the goods of the
storekeepers in Yorktown, paying for them with tobacco,
and giving a special license to the storekeepers to carry
the tobacco to New York. The federal government thus
made gain out of its own restrictions, as sovereigns have
done for centuries. The citizens who were debarred from
the same enterprise, and whose exclusion created the profit
of the special licenses, although they thought the restric
tion a proper and necessary war-measure, watched the
transaction with suspicion. The possibility of course sug
gested itself that those who were charged with the execu-
i Va. Papers, iii. 63. ^ Ibid. 144.

86 The Financier and the
tion of the transaction might easily enlarge it somewhat
for their own benefit. This possibility soon grew into a
suspicion, and then into an allegation. It seems that Mor
ris, in his great necessity for money, having found the
profit which he could win by this transaction, may have
carried it further for the account of the Union. In July,
1782, the Virginia Assembly voted that the Governor
should forward the views of Congress and the Financier
in regard to the exportation of a specified amount of to
bacco, the Assembly being satisfied with the explanations
given.' Further complaint seems to have been made,
however, for an investigation was made by Congress in
February, 1783. It resulted in a report that the amount
of tobacco shipped had never surpassed the limit set in
the original resolution allowing it.^
Greene, in his eagerness to provide clothing for his sol
diers, who were almost naked, made a contract for a sup
ply. He had the same fate as others who were led by
zeal to take personal risks. He fell under suspicion of
illegal trading and collusion with contractors, and never
cleared himself while he lived. His transaction was partly
carried out by bills on Morris. This matter became mixed
up with Virginia affairs,* and contributed to the Virginia
hatred of Morris. The report spread far and wide that
" the American general, employing the funds of the pub
lic, had, through the agency of Banks, opened a lucrative
commerce with Charleston ; and in a short time it was
superadded that Mr. Robert Morris, particeps in the ini
quity, had given him an unlimited right of drawing, in or
der to furnish a capital for speculation." * We have seen
above that complaint was made of Morris, at the time of
' Va. Papers, iii. 193. ' Journ. Cong. viii. 92.
3 Va. Papers, iii. 363, 396, 402, 428, 435.
* Johnson, ii. 365.

Finances of the American Revolution. 87
the Yorktown expedition, that he did not provide for the
officers taken prisoners at Charleston. In 1783 Greene
wrote to Washington : " The people of this State [South
Carolina] are much prejudiced against Congress and the
Financier. Those who came from the northward think
they have been amazingly neglected by both in their dis
tresses. . . . This State has contributed more than any
other State, it is true, towards the continental expenses;
but necessity obliged them." '
In May, 1782, Morris was ordered by Congress to pre
pare a report on the state of commerce of the United
States, together with a plan for the protection thereof; and
it was ordered that he, as Agent of Marine, should apply
to the commanders of the fleets of France and Spain for
protection to commerce ; also that he should prepare a
draft of an application to France for the protection of the
trade of the United States,^ May 14, he made these re
ports, which were ordered to be transmitted to Franklin.
In his statement of commerce, after stating what it might
be, he says that none of it exists except the export of pro
visions to the West Indies and tobacco to Europe. The
trade cannot be carried on without convoys. With con
voys, tobacco would be cheaper in Europe, and European
goods in America. The enemy, by depressing American
commerce, gain two things : they obtain resources, and
they carry on contraband trade, " The history of human
affairs demonstrates the inefficacy of penal laws to pre
vent such a commerce when the temptation is great ; and
therefore, although the dispositions of the several Legisla
tures cannot be questioned, yet as long as the enemy can
send their goods from New York, Charleston, and Halifax
cheaper than the fair trader can import them, that contra
band will subsist." He puts the insurance at forty per
1 Letters to Washington, iv. 5. ^ Secret Journ. iii. 102.

88 The Financier and the
cent, which makes a loss on the exportation of tobacco.
The profits must aU be sought on the importation from
France. With convoy, he showed a profit of ten per cent
on the exportation. The reason for this subject being
taken up at this time was that the trade had suffered
greatly from the English cruisers in the spring of 1782.'
In August he informed Congress that the fourth class
of the lottery had been drawn. He asks how the prizes
are to be paid. He refused when he took office to have
anything to do with the lottery, and he now leaves it to
Congress to give directions in the matter. He is too busy
to attend to it, to say nothing of other reasons. The letter
implies disapproval of the lottery.^
In September the " Magnifique," a seventy-four gun
ship of the French navy, having been lost in Boston Har
bour, Morris proposed that Congress should make a pres
ent to the King of France of the seventy-four gun ship
" America." His chief reason was that there was no money
in the treasury with which to fit out that ship for the
United States.*
In September the goods at last arrived which had been
purchased in Holland in the previous year, at the time
of John Laurens's embassy. Morris wrote to Franklin,
complaining of the wasteful purchases in Europe: "The
purchase of unnecessary things because they are cheap
appears to be very great extravagance. We want the
money as much as anything else ; and the world must form
a strange idea of our management if, while w^e are trying
to borrow, we leave vast magazines of clothing to rot at
Brest, and purchase others to be shipped from Holland. . . .
The detention of our goods has obliged me to purchase
clothing and other articles at a great expense, while those
I Dip. Corr. Rev. iii. 355. 2 state Dep. MSS. 137, i, 725.
5 Dip. Corr. Rev. xii. 254,

Finances of the American Revolution. 89
very things were lying about at different places in
Europe." ^
Morris wrote to Washington about this clothing, that it
was unfit for soldiers' use. He was selUng it to pay debts
incurred for clothing, including $12,000 for needlework
due to people in extreme indigence.^ In January, 1783,
he wrote to Franklin that he had been obliged to sell
part of the goods which arrived from Holland to save
his credit. Thus the purchase of these goods had in
the first place subjected Franklin to extreme distress,
and then Morris was obliged to sell them, to save himself
from bankruptcy.
On the 6th of January, 1783, a committee of officers
arrived from the army, at Philadelphia, with a memorial to
Congress. Anticipating peace, they feared that the dis
position would be to get rid of the army as soon as possi
ble, and having once got rid of them, to pay no attention to
any of their subsequent remonstrances or complaints. The
committee of Congress to whom their memoria! was re
ferred held a conference with Morris. Instead of being in
a position to undertake any new burden, he was obliged to
tell them that his department had reached such a crisis
that he had been on the point of asking for a confidential
committee to whom he might intrust the facts.*
On the 8th of January, 1783, Morris had a conference
with such a confidential Committee of Congress. He told
them that he had overdrawn on France three and a half
miUion livres, and must draw more, relying on Adams's
loan. This was the result of his operations ofthe last two
years, and especiaUy of the loan issued in the previous
February, to provide the officers with clothing. By draw
ing and redrawing he had secured extensions, which had
1 Dip. Corr. Rev. xii. 271. ^ Ibid. 279,
s Elliot's Debates, v, 21.

90 The Financier and the
now produced this result. He wanted the support of a
Committee of Congress for the new drafts which must now
be made. The Committee agreed to obtain this authori
zation under the seal of secrecy. Only one member
doubted if it was right to do this ; but the others told him
that it was unavoidable, for credit abroad and the public
service at home. They felt the evil of it when negotiating
for peace.^ On the nth Morris wrote to Frankhn: "Im
agine the situation of a man who is to direct the finances
of a country almost without revenue (for such you will
perceive this to be), surrounded by creditors whose dis
tresses, while they increase their clamour, render it
more difficult to appease them ; an army ready to dis
band or mutiny; a government whose sole authority con
sists in the power of framing recommendations. Surely
it is not necessary to add any colouring to such a
piece, and yet truth would justify more than fancy could
paint." '^
Morris therefore knew early in January, 1783, that his
account with Grand was overdrawn. Luzerne asked him
to explain the reasons. He said that it was due to two
millions and a half of bills on behalf of Beaumarchais,
which were due in June, 1782. He had hoped that the
French government would make some provision for these
bills. As they had been running three years, and had
been sold over and over again, it was necessary to provide
for them. The Dutch loan also produced a million less
than he expected, and he had been forced to buy things
in America in the place of those which had been left in
Europe.* On the 13th he wrote to Franklin: "If one bill
should be protested, I could no longer serve the United
States." * In Livingston's despatches of January to Frank-
1 Madison Papers, i. 251. 2 Dip. Corr. Rev. xii, 310.
3 Ibid, 316, * Ibid. 313.

Finances of the American Revolution. 91
lin, he urges the necessities of the United States. He
uses the revolt in the army as an argument that more help
must be obtained from France, and he expresses fears
of disorder in the United States. " I do not pretend
to justify the negligence of the States in not providing
greater supplies : some of them might do more than they
have done; none of them all that is required. It is my
duty to confide to you that if the war is continued in this
country it must be in a great measure at the expense of
France. If peace is made, a loan will be absolutely neces
sary to enable us to discharge the army, that will not
easily separate without pay." ' He also wrote to Lafayette :
" If the war continues, we shaU lean heavier upon France
than we have done. If peace is made, she must add one
obligation more to those she has already imposed, — she
must enable us to pay off our army, or we may find the
reward of her exertions and ours suspended longer than
we could wish." ^
Before these letters could have been received in Europe,
on the 25th of February, 1783, Vergennes and FrankUn
entered into a supplementary treaty by which France lent
the United States six million livres more, at the rate of a
half a miUion per month during the year 1783, with interest
at five per cent. In the treaty the substance of the treaty
of July 16, 1782, was repeated. The present loan was to
be repaid in six equal annual instalments, beginning at
1797, and the interest was to run from the ist of January,
1784.* In 1788 a statement was drawn up at the French trea
sury to show when and at what rates the payments would
faU due. It is as follows, in millions of livres : * —
1 Dip. Corr. Rev. iv, 462. ^ Ibid, x, 21.
8 Treaties and Conventions, 258.
< Dip. Corr. U. S. iii. 390.

92

The Financier and the

Insialmenis

qf ike principal.
Interest.
Total.
1787 .
. . 2.5
1.6
4.1
1788 .
. . 2,5
1,485
3985
1789 .
• 2,5
1,370
3,870
1790 .
• 2-5
I-25S
3755
I79I .
• 2.5
1. 140
3.640
1792 .
• 2-5
1.025
3-525
1793 •
• 2.5
.910
3.410
1794 .
. 2.S
•79S
3-295
179s •
• 2,5
.680
3.180
1796 .
. 2.5
¦565
3.065
1797
• 2,5
.450
2,950
1798 .
• 2,5
¦325
2.825
1799 .
I.
.200
1.200
1800 .
. I.
,150
1-150
I80I .
. I.
.100
I. IOO
1802 . .
. I.
.05
1,050
.•^4.
12.1
46,100
This loan of February, 1783, passes as an unnoticed
incident in the midst of the new appeal which was being
made. On the I oth of March Vergennes wrote to Luzerne:
Franklin informs him that he is ordered to borrow four
million dollars, and to ask the continued favours of the
King ; it is the last request of the kind he would have to
make ; he said that without this assistance the continental
army could neither be kept together, nor disbanded with
out danger. " I informed His Majesty of the embarrass
ments of Congress, and of their inabiUty to provide for
their necessities by means of taxes, which the imperfections
or the weakness of a rising administration did not permit
them to levy. . . . Since the nation has reached the period
of maturity consecrated by its emancipation and political
independence, it seems that it ought to be sufficient for
itself, and not to require new efforts of the generosity of
its allies. . . . Notwithstanding the difficulties which His
Majesty experienced in his own finances, he determined
Finances of the American Revolution. 93
... to grant to Congress a new loan of six millions of
livres." 1
This letter could not have been received here until May,
but in March Luzerne informed Morris that he had re
ported during the last year the reforms introduced by
Morris into his department; also that he thought a public
revenue was about to be established, and had encouraged
the extension of a loan for the next year. These assur
ances had brought about a new loan. He now finds him
self deceived in the opinions he had expressed, and must
report now that he was mistaken. " The King has not
been able to make this last effort without great difficulties.
. . . With regard to the resources which you may seek in
other places besides France, the letters which I have had
the honour to read to you do not allow any success to be
looked for until the United States shall have established a
permanent public revenue ; and the delay and repugnance
with which they proceed in doing this being known in
Europe, the inclination for lending money to Congress
which may have existed has disappeared. . . . Without
the speedy establishment of a substantial public revenue,
and without the vigorous execution of the engagements
entered into by Congress, the hope of obtaining loans in
Europe must be given up." '
1 Dip. Corr, Rev. xi, 171. ^ Ibid. 125.

94 The Financier and the

CHAPTER XXII.
MORRIS RESIGNS ; CONSENTS TO CONTINUE IN ORDER TO PAY
OFF THE army; ISSUES NOTES FOR THAT PURPOSE; FAULT
FINDING WITH HIM ; LAST VAIN APPEALS TO FRANCE ; THE
LOAN IN HOLLAND ; THE OVERDRAFT OF I 784 ; MORRIS QUITS
OFFICE ; THE SUBSEQUENT ORGANIZATION OF THE TREASURY.
AT TE are now in a position to see what had been the
* ' course of things during Morris's administration.
The year 1781 constitutes the grand crisis of the Revolu
tion. At the beginning of that year the Americans were
on the verge of failure. France was obliged to put her
assistance, both pecuniary and military, on a new plane.
Morris took charge of the finances. France provided
loans and gifts . on a far greater scale than before. The
sliip " Lafayette " was fitted out with a large cargo of the
most essential supplies. She was unfortunately captured,
and these goods had to be replaced from the subsidy.
Then came the enormous waste by the bad proceedings
in HoUand and the abandonment of the goods which had
been obtained at great expense. In America the expenses
of the Yorktown campaign had to be met, and the bills
drawn upon Europe fell upon Franklin when his subsidy
was exhausted. Morris was also struggling to extricate
himself from the mischiefs entailed upon him bythe paper
system, and engaged in a dangerous system of drawing and
redrawing. He had also ventured on large expenses for
the payments to the officers. This all depended upon a
hope that at last definite and trustworthy resources would

Finances of the American Revolution. 95
be obtained from taxation. At the beginning of the year
1783 the effect of aU these measures ha'd accumulated, while
the hope of the impost was destroyed by the opposition of
Rhode Island. Every plan which he had had when he
undertook the office had therefore failed. Every belief
and expectation which had justified him in the measures
which he had adopted had come to naught. He could
not see that Congress or the States were willing to view
the situation as it was, or to take the steps which were
imperatively necessary. Nor did anybody else have
any proposition which was adequate for meeting the
situation. On the 24th of January, 1783, he sent his resignation to
the President of Congress. " To increase our debts whUe
the prospect of paying them diminishes, does not consist
with my ideas of integrity. I must therefore quit a situa
tion which becomes utterly unsupportable." An injunction
of secrecy was put on his letter and on the fact of his
resignation.' Madison says : " This letter made a deep
and solemn impression on Congress. It was considered as
the effect of despondence in Mr. Morris of seeing justice
done to the public creditors or the pubUc finances placed
on an honourable establishment; as a source of fresh hopes
to the enemy when known ; as ruinous both to domestic and
foreign credit ; and as producing a vacancy which none knew
how to fill, and which no fit man would venture to ac
cept." ^ February 26, Morris asked that the injunction of
secrecy should be raised from his resignation, because he
must inform certain persons whose interests would be af
fected by it. Congress complied. The next day he wrote
to Washington that Congress wished to do justice, but
" they will not adopt the necessary measures, because they
are afraid of offending their States." March 5, Congress
1 Dip, Corr. Rev. xii. 326. 2 Madison Papers, i. 274.

96 The Financier and the
appointed a committee to devise the steps to be taken in
view of Morris's resignation.
His resignation brought out very diverse criticisms.
Madison shows that he thought Morris's letter abrupt,
and calculated to give an opportunity to his enemies.'
Arthur Lee and Bland, in commenting upon it, disparaged
his administration, and threw " oblique censure " on his
character. Lee blamed him for his revelations of the state
of the finances. Wilson and Hamilton defended him. In
general, his letters were considered reprehensible in Con
gress,^ " as in general, also, a conviction prevailed of the
personal merit and public importance of Mr. Morris."*
On the 1 2th of March Morris noted in his diary that a
ship had arrived with six hundred thousand livres in specie,
ordered in October, 1782: "And this day also appeared
a virulent attack on my public and private character, signed
' Lucius,' in the ' Freeman's Journal,' replete with false
hoods."* These articles in the "Freeman's Journal" ran
through March and AprU. Morris was abused especially
for his resignation, which was said to reflect on the honesty
of the States and of Congress. It was said that he had
stabbed credit. " So much has a sudden and enormous
acquisition of wealth by speculating on the distresses of
the war pampered your pride and inebriated your under
standing. Remember, sir, what you were, and think what
you may be." He is charged with ruining the citizens of
Boston, and with buying certificates from distressed owners.
The letters of " Junius " had stimulated a large number of
1 Madison Papers, i. 513.
2 Charles Biddle (128) tells a story that the Board of War once wanted to
remove Morris from-the ofifice of Financier. Colonel Grayson asked Richard
Peters to help. Peters said that he would, if they would change one word in
their memorial. It was said in it that the Board complained. " Strike out
the word ' Board,' " said he, " and put in the word ' shingle,' and I will sign
it directly." 3 Ibid. 371. * Dip. Corr. Rev, xii. 337.

Finances of the American Revolutioji. 97
imitators in England and America. These letters are one
of the best examples of the style of the provincial imitator
of "Junius." Arthur Lee, when younger, had affected
this style. If he did not write these letters he must have
inspired them.
March 17, Morris wrote to the President of Congress:
" I must observe on the misconstruction which men totally
ignorant of our affairs have put on that conduct whicli
severe necessity compels me to pursue. Such men, affect
ing an intimate knowledge of things, have charged the de
struction of public credit to me, and interpreted the terms
of my resignation into reflections upon Congress. . . . On
the day on which I was publicly charged with ruining
your credit, those despatches arrived from Europe which
tell you it was already at an end. The circumstances
which I alluded to in my letter of resignation were not
yet known in Europe. It was not yet known that Rhode
Island had unanimously refused to pass the impost law,
and that Virginia had repealed it." '
When this letter from Morris was read, in which he said
that the credit of the United States was at an end, Bland
said that, if Morris thought that, then it was absurd for
him to be Superintendent of Finance.
On the 29th of March Lee made a motion in Congress
for an investigation of Morris's department ; but it was re
jected, on the ground that such an investigation would be
unsuited to the modes of business in Congress, that the
subject-matter was already partly before Congress, and that
the measure was unsuitable in other respects.^ In the same
nionth Joseph Reed wrote to a correspondent in England :
" Mr. Morris has been for a long time the domirtus factotum
whose dictates none dare oppose, and from whose deci
sions lay no appeal ; he has, in fact, exercised the power
1 Dip. Corr, Rev. xii. 343. '^ Madison Papers, i. 425.
VOL. II. — 7

98 The Financier and the
really of the three great departments, and Congress has
only had to give their fiat to his mandates. I believe things
have gone better, they certainly could not go worse, than
before ; but we are like to be at sea again shortly. The
newspapers, which I presume Burnett will carry, contain
his [Morris's] letters to Congress, which will probably be
the subject of as much speculation with you as with us." '
Hamilton, although he was very friendly to Morris and
sympathized deeply with him, did not approve of his letter
of resignation. He wrote to Washington, April ii: "As
to Mr. Morris, I will give your Excellency a true explana
tion of his conduct. He has been for some time pressing
Congress to endeavour to obtain funds, and has found a
great backwardness in the business. He found the taxes
unproductive in the different States; he found the loans
in Europe making a very slow progress ; he found himself
pressed on all hands for supplies; he found himself, in
short, reduced to this alternative, either of making engage
ments which he could not fulfil, or declaring his resigna
tion in case funds were not established by a given time.
Had he followed the first course, the bubble must soon
have burst; he must have sacrificed his credit and his
character, and public credit, already in a ruined condition,
must have lost its last support. He wisely judged it better
to resign. This might increase the embarrassments of the
moment, but the necessity of the case, it was to be hoped,
would produce the proper measures, and he might then
resume the direction of the machine with advantage and
success. He also had some hope that his resignation
would prove a stimulus to Congress. He was, however,
ill advised in the publication of a letter of resignation.
This was an imprudent step, and has given a handle to his
personal enemies, who, by playing upon the passions of
1 Reed's Reed, ii, 393,

Finances of the American Revolution. 99
others, have drawn some well-meaning men into the cry
against him. But Mr. Morris certainly deserves a great
deal from his country. I believe no man in this country
but himself could have kept the money machine a-going
during the period he has been in office. From everything
that appears, his administration has been upright, as well
as able. The truth is, the old leaven of Deane and Lee is
at this day working against Mr. Morris. He happened in
that dispute to have been on the side of Deane, and certain
men can never forgive him. A man whom I once esteemed,
and whom-I will rather suppose duped than wicked, is the
second actor in this business." '
The two Morrises and Hamilton had a project in March
to unite the army interest with that ofthe public cre^ditors,
in order to bring pressure to bear on Congress which
should force them to do justice to both. This project
easily bore the appearance from the outside of a con
spiracy to overawe Congress by the army. Washington
also wrote to Hamilton that it might be construed by the
army as a conspiracy to defeat the claims of the army
until those of the certificate holders were satisfied.^ Ham
ilton refuted these misconstructions of the enterprise. He
said that there were two parties in Congress, — a national
and a State-rights party. " The advocates for continental
funds have blended the interests of the army with other
creditors, from a conviction that no funds [taxes] for partial
purposes will go through those States to whose citizens
the United States are largely indebted." *
In April Congress appointed a committee, of which
Hamilton, Madison, and Peters were members, to confer
with Morris about his continuance in office. They reported
as his statement : " That his continuance in office was
1 Letters to Washington, iv. 20. 2 Washington, viii, 418.
' Letters to Washington, iv. 17.

100 The Financier and the
highly injurious to his private affairs, and contrary to his
private inclinations, but that he felt the importance of
the exertions necessary to be made at the present juncture
toward the reduction of the army in a manner satisfactory
to them and convenient to the public ; that therefore, if
Congress should think his services toward effecting that
object of importance, and should desire them, he would be
ready to continue them till arrangements for that purpose
could be made, and the engagements taken by him in con
sequence, as well as those already entered into, could be
finally completed ; that in this case he should hope for the
support of Congress. Whereupon, resolved that the Su
perintendent of Finance be informed that Congress are of
opinion the public service requires his continuance in office
till arrangements for the reduction of the army can be
made, and the engagements that shall be taken by him in
consequence, as well as those already entered into, shall
be finally completed." ' He told them that the amount of
three months' pay which was stated by the General to be
indispensable was $750,000. No important part of this
can be provided. The most which can be done is to risk
a large paper anticipation. He would have to become
personaUy liable on leaving the office for about half a mil
lion, and depend on his successor to save him from ruin,
and risk his integrity, by which he seems to mean here, as
elsewhere, his commercial credit.^
In the manuscript of this report in the Department of
State a paragraph is struck out, in which the committee
quote Morris as saying that he thought it essential, if he re
mained in office, that Congress should stimulate the States
to supply money, and should get a further loan from
France.* The conference of the committee with Morris
1 Journ. Cong. viii. 184, 2 Dip Corr. Rev, xii, 346.
8 State Dep. MSS. Reports, iv. 387.

Finances of the American Revolution. loi
does not seem to have resulted in a clear understanding.
In a letter of the ist of May, he restated the conditions of
his continuance in office. They were that Congress should
explicitly ask him to go on, and should pledge themselves
to support him ; also that the purpose of his continuance
should be distinctly expressed, namely, to issue the paper
notes for disbanding the army and to redeem the same.
He expressly withheld his approbation from their plan of
providing for the debt by the Act of April i8, by which
they laid an impost for $900,000 and left the States to pro
vide a miUion and a half more by unspecified supplement
ary taxes. ^
Congress passed a resolution. May 2, that the Superin
tendent of Finance be directed to take the necessary
arrangements for carrying the views of Congress into exe
cution, and that he be assured of their firm support to
ward fulfilling the engagements he has already taken, or
may take, on the public account, during his continuance in
office.2 On the same day they put on the Secret Journal
a resolution proposed by Hamilton, that the payment of
the army and other obligations made it necessary to raise
taxes. They urged the States to lay taxes. They pro
posed a further application to France for three million
livres in addition . to the six miUion already obtained for
this year.*
This is the point at which Robert Morris performed his
greatest public service. It was known that the army would
rebel if an attempt was made to disband it without pay.
No one knew how to make any pretence of paying it,
unless Robert Morris would do it. This also was what en
raged his enemies and brought them to silence for a time,
until they had used him for public services which no one
1 Dip. Corr. Rev. xii, 353. "^ Journ. Cong, viii. 189.
8 Secret Journ. iii. 341.

102 The Financier and the
else could render. Then, as will be seen, they began to
yelp and snarl again. Magnanimity never was a colonial
virtue. For the moment he was indispensable. We can
not tell in what way or form Morris put his name upon the
notes which he issued to pay the army.' If those notes
had been simple certificates of indebtedness of the United
States, it appears that nothing could have been done with
them. In effect he indorsed them, and it was his name
and credit which made them available.
In January Morris had argued to Luzerne that it was
very important, in order to bring the peace negotiations to
a favourable conclusion, to keep the army up to a good
state of efficiency.^ In the conference between him and
the Committee of Congress, in the middle of May, the
committee maintained that it was desirable, for economic
reasons, to disband the army, but that for political reasons
it ought to be kept up. The Secretary of War said that
the men would not continue in the field, under their pres
ent enlistment, if the war should break out again.* Morris
then urged that they be disbanded at once, so as to reduce
expenses. " We are keeping up an army at great expense,
and very much against their inclination, for a mere punc
tilio." He thought it foolish to doubt of the sincerity of
Great Britain, as it was the fashion to do.*
On the 3d of May he consented to go on for the partic
ular purpose of paying off the army. On the I2th he
issued a circular to the governors of the States, explaining
the new state of things, and calling on them for the neces
sary support. " Nothing would have induced me to con
tinue in office but a view of the public distresses. These
distresses are much greater than can easily be conceived.
I am not ignorant that attempts are made to infuse the
1 See chapter xxv. 2 Dip Corr. Rev. xii. 321.
' Ibid. 367 ; Morris's Diary. * Ibid, 364.

Finances of the American Revolution. 103
pernicious idea that foreign aid is easily attainable, and that
ofthe moneys already obtained, a considerable part remains
unappropriated." The only reliance is on the States.'
Although he had consented to go on, he was under no
delusion as to the probable course vvhich things would
take. He had not been at the centre of political activity
for eight years without acquiring a just estimate of con
gressional promises. May 29, he wrote to Washington
that some designing men had construed his resignation as
a factious desire to raise civil commotion. Unless he is
greatly mistaken, the interests of the army and of the pub
lic creditors will be given up. The expenses have been
kept on in spite of his remonstrance, and the revenue
lessened, the States growing more remiss. If he now issues
notes for the amount, it must be at six months. He would
have been quit of his office long ago but for his desire to
procure relief for the army.^
At the end of May he wrote to Franklin about his con
tinuance in office. " In what country of the world," he
asks, "shall we find a nation willing to tax themselves?"*
" The distresses we experience arise from our own miscon
duct. If the resources of this country were drawn forth,
they would be amply sufficient; but this is not the case.
Congress has not authority equal to the object, and their
influence is greatly lessened by their evident incapacity to
do justice. . . . Nothing should induce me in my private
character to make such applications for money as I am
obliged to in my public character. ... If these notes are
not satisfied when they become due, the little credit which
remains to this country must faU, and the little authority
dependent on it must faU too." lie urges Franklin to get
another loan from France and to ship 1,800,000 livres.
At the time of the mutiny in Philadelphia, in June,
1 Dip. Corr, Rev xii. 357. "^ Ibid, 373, » Ibid, 370.

I04 The Financier and the
Morris received orders from the President of Congress to
go to Princeton, from which place he wrote on the 30th :
" In obedience to the orders of Congress, signified by your
Excellency, I left Philadelphia on Tuesday evening, and
proceeded to this place, having previously, according to
your advice and opinion, put a stop to the business of my
department until further orders. I am now waiting such
orders as Congress may think proper to give, and must
pray leave to suggest that the public service may be mate
rially injured unless I should speedily return to Philadel
phia and resume the business committed to my care." ' It
seems that there must have been some misunderstanding;
for Boudinot, the President of Congress, wrote to Morris on
the same day, giving him permission to return to Phila
delphia, and saying there is " no entry on our Journals
relating to your leaving the city."^
June 5, Morris wrote to Governor Livingston that he
had issued notes to pay the army. They must be paid
when due. His only dependence is on the requisitions of
last year and this year." On the 6th Washington wrote to
General Heath, and quoted Morris that he could not make
the notes for the army at two, four, and six months, but
must make them for six months, on account of the remiss
ness of the States, and that he added : " I must entreat, sir,
that every influence be used with the States to absorb them,
together with my other engagements, by taxation." * On
the nth Morris wrote to Governor Livingston a circular
letter, in which he says : " On the States I am to rely for
payment of the anticipation, amounting, as you will see, to
more than a million ; and you will observe that this great
1 State Dep. MSS. 137, ii. 593.
2 State Dep, MSS., Letters of President of Congress, xvi. 221. The ac
counts show an entry of j!5i for the expenses of the two Morrises on this
journey. 2 N. J. Corr. 332. * Ibid. 339.

Finances of the American Revolution. 105
anticipation has been made for that service which aU affect
to have so much at heart, — a payment to the American
army." But for this payment to the army the revenues of
1783, even as they are collected, might have absorbed the
notes which he must issue. He argues eagerly against
those who say that since the notes have six' months to run,
there is no hurry about providing for them. Provision
should be made to pay them at their maturity.^ On the
28th of July he wrote to the governors again. On the
30th of June last his payments exceeded his receipts by
more than a miUion of doUars, All the taxes since 1781
did not amount to $750,000. The paper will lose its value
unless punctually redeemed. The receivers of taxes have
been instructed to exchange it, but must be provided with
specie for that purpose by taxes. " I might also appeal to
the clamours against me for opposing claims I could not
properly comply with. Long have I been the object of
enmities derived from that origin. I have therefore the
right to consider such clamours and such enmities as the
confession and the evidence of my care and attention." *
There is a slanderous report that he has speculated in the
paper. Those who discount it are covered with infamy,
but he shows that they make a market for the paper
which would not otherwise exist.
On the nth of July the Superintendent of Finance was
ordered to direct all the receivers of continental taxes to
receive the notes issued in payment of the army, and also
to report the reasons why the troops lately furloughed did
not receive part of their pay previous thereto, according
to the intentions of Congress. They also asked him to
state the means by which he expected to redeem the notes
issued by him in payment of the army.* July 15, he re-
1 In the N, J. Corr. it is printed twelve. 2 n. J. Corr. 341.
' Ibid. 343, * Journ, Cong, viii. 214.

io6 The Financier and the
ported that the non-commissioned officers and privates had
been paid one month's pay in specie and three months' pay
in notes, and that the oficers had been paid four months'
pay in notes.^ He construed the inquiries of the nth as
censure on him. He replied with a history of the last few
months, and, in answer to their last inquiry, said that he
relied on their promise, when they induced him to con
tinue in office, for the means to redeem the notes.^ On
the 30th he informed them, in answer to other resolutions,
that the receivers of taxes had been long since notified to
accept all notes signed by him. They now ordered him
vo publish that fact.* They then asked him why the settle
ment certificates were not made payable to bearer. He
answered that they would become paper money and de
preciate, if payable to bearer; but being transferable on
the books, they were bought and sold as debt.*
From these proceedings we perceive that Congress, the
immediate exigency being passed and Morris having
shouldered the burden, returned to their role - of strict
supervisors and exacting masters. It will'.'speedily appear
that they did not take up the task of providing for the
postponed difficulty any more than they had provided for
the difficulty before.
June 17, a committee to examine the department of
finance made a report to Congress. " It appears to them
the business of that office has been conducted with great
ability and assiduity, in a manner highly advantageous to
the United States, and in conformity with the system laid
down by Congress." Accounts have been punctually kept.
Accountability has been enforced. States have been called
upon for accounts of specific supplies furnished ; but an
swers have not been obtained, and persons intrusted with
1 Dip. Corr. Rev, xii. 379. 2 \\,\^, 380.
' Journ. Cong. viii. 230. * Dip. Corr. Rev. xii. 393.

Finances of the American Revolution. 107
public money neglect or refuse to settle their accounts,
and there is no means of compelling them. Order and
economy have been introduced into the office. No less
than two hundred and fifty persons whose pay amounted to
$126,300 per annum have been discharged from the de
partment of commissary of issues. The whole amount
brought into the public treasury from the 14th of May,
1781, to the 1st of January, 1783, amounts to $2,726,334,
and the total expenditure to $3,131,046. In 1782 .the
expenditures exceeded the receipts by $404,713, which
was supplied by the notes of Morris.'
In a letter to the Governor of Virginia in July, 1783,
Morris had occasion to describe the system of adminis
tration of the treasury under him. He informed the Gov
ernor^ that the expense of feeding the troops in Carolina
would 'be borne by the United States; but a regular ac
count, with vouchers, must be transmitted to him. He
will send it to the ComptroUer of the Treasury, who will
certify the amount due by the United States to the party.
For this amount Morris will issue a warrant, and the pay
ment will be made in paper, which being delivered to the
Receiver for Virginia, will be acknowledged by him, and
remitted on account of the State quota. It will then be
paid to the Treasurer on Morris's warrant in his favour ; and
as all the warrants are recorded by the Register, as well as
the receipts on them, the treasury books contain the evi
dence of all the receipts and payments in the simplest
form, "and, being accessible to every citizen of the
United States, must furnish incontestable proof of the
verity of my accounts as exhibited."^
In the same month he wrote to the President of Con
gress that the States show no disposition to respond to
the call of Congress ; therefore he urges that expenses be
1 Journ. Cong. viii. 202. "'' Va. Papers, iii, 510.

loB The Financier and the
greatly reduced.^ From this we learn that in midsummer,
1783, he already foresaw that none of the assurances under
which he had continued in office would be made good.
August 19, in a letter to the Governor of Virginia, he
refers to some resolutions of the Virginia Assembly which
were intended to refer to himself and his contractors,
endeavouring to investigate frauds, which he says are
extremely difficult to trace out under the old system.
" This is one of the many evils which arise from a defec
tive and unmethodical system ; and the evils of such sys
tem are (I am sorry to say it) the reasons why many are
desirous of seeing it re-established. So long as I con
tinue in office, your Excellency may rely upon my most
zealous aid in the investigation which the Assembly of
Virginia have instituted. If I had met with that support
which, though unmerited by my abilities, was due to my
zeal for the public service, I believe that I should have
continued in office until, all accounts being settled and
all debts provided for, I could have left to my successor
the pleasing prospect of future wealth, unclouded by any
dismal retrospect of past poverty. But all other things
out of the question, there is such a disposition among men
to traduce and vilify, that no prudent man will risk a fair
reputation by holding an office so important as mine." ^
In August he wrote to the Paymaster, refusing to make
more anticipations. He will have great difficulty to honour
those already made, which have already exposed him to
groundless clamours. " It becomes impossible to serve a
people who convert everything into a ground for calumny.
. . . My desire to relieve the army has been greatly cooled
from the information that many of them have joined in
the reproaches I have incurred for their benefit." *
1 Dip. Corr, Rev, xii. 387. 2 Va. Papers, iii. 524.
' Dip, Corr. Rev. xii, 399,

Finances of the American Revolution. 109
In September he sent a communication to Congress, in
which he stated that the account sent to him by the banker
Grand, on the 20th of July, 1782, afforded the only knowl
edge he had of the bills paid by Grand, and that this
account shows why the foreign obligations of the United
States cannot be stated. He was surprised to find that
" the bills drawn before my administration had not been
so advised of as that even the amounts could be known."
He cannot tell the expenses for clothing, as he did not
order it, and does not know the expenses for loading,
unloading, etc. " It is very painful to me, sir, that I am
obliged also to inform Congress of my utter inability to
render account of the goods I have received." Invoices
of clothing had not been received, partly on account
of reshipment, changes, etc. " No clothing fit for sol
diers (or at least very little, if any), except linen, arrived
here before the preliminary of peace. The linen was
immediately issued. The greater part of the clothing
having arrived after the peace, and it being then evident
that the greater part if not the whole of the troops would
be disbanded, no measures were taken for making up and
issuing clothes for the army." The purpose was to avoid
expense. The cloth was sold, and soldiers were allowed
for the clothing due them. The money was used to pay
the anticipations. Thus he defends himself from blame in
not giving clothing to the Massachusetts troops. He did
it as soon as he knew of their distress.'
September 10, Arthur Lee made a motion, which was
carried, that Morris should be called upon to state an
account of aU notes issued on the credit of the United
States and the amount outstanding.^ He answered this on
the loth of November, giving the daily issues and redemp
tions. This account shows the method in which the paper
1 State Dep. MSS. 137, iii. 61. ^ Journ. Cong, viii, 250.

IIO The Financier and the
money book-keeping was carried on. First stands an
account ofthe United States with the Treasurer. On the
credit side are receipts of notes delivered to the Treasurer
from December 26, 1782, to January 11, 1783. They are
called subsistence notes, and the amount is $163,720; on
the debtor side stand the notes paid out, and the balance
is made by the notes on hand, $33,560. Then there is
another account, on the creditor side of which is put that
which was the debtor side of the former one, namely, the
notes issued for subsistence ; and on the debtor side the
notes redeemed by the Treasurer appear. The issues are
brought down to October i, 1783, and the redemptions to
September i. Out of the net issue of $130,160, there
remained $34,028 outstanding and to be redeemed.' Sep
tember 20, Madison wrote to Jefferson: "The department
of finance is an object of almost daily attack, and will be
reduced to its crisis on the final resignation of Mr. Morris,
which will take place in a few months." ^
In November Morris wrote to Jay that the members of
Congress, instead of supporting him, as they promised to
do, were trying to frustrate his plans so as to ruin him
personally.* He was then preparing a report to Congress
on an extract from the Journal of the Assembly of Penn
sylvania, November 5, which implied inattention on his
part to the orders of Congress and an assumption of
powers.* In this report he said : " Congress have before
them full evidence that many persons, late officers in the
civil department, refuse to account at all."^
In May, 1783, Grand made a complaint to the Com
missioners for Peace. The last account which he sent to
Morris had shown a balance due to himself of 413,892
livres, which would have put him in great perplexity but
1 State Dep. MSS. 137, iii. 291. 2 Madison Papers, i, 573.
° Jay's Jay, ii, 135, * Dip, Corr. Rev. xii. 424, ^ YtAdi. 430.

Finances of the American Revolution. in
for aid obtained from the royal treasury. He was liable to
pay a million livres more than he had to receive. The
bearers of Morris's biUs were becoming very urgent upon
him. The Commissioners answered : " We see the diffi
culties you are in, and are sorry to say that it is not in our
power to afford you any relief" ^ On the 28th of June
Franklin and Jay sent Grand's statement to Vergennes.
" Before the peace was known in America, and while Mr.
Morris had hopes of obtaining the five per cent duty and
a larger loan from his Majesty, the immediate, urgent ne
cessities ofthe army obliged him to draw bills and sell them
to the merchants to raise money for the purchase of pro
visions to prevent their starving or disbanding." They say
that the loan in Holland is going on well; but it would be
a great calamity that Morris's bills should be protested.
They asked the counsel of the Minister, and begged for
this one more loan.^
The applications to France for another loan failed.
France was in earnest financial distress. In April, 1783,
Franklin had written to Livingston : " The finances here
are embarrassed, and a new loan is proposed by way of
lottery, in which it is said by some calculators the King
will pay at the rate of seven per cent. I mention this to
furnish you with a fresh, convincing proof against cavillers
of the King's generosity toward us in lending us six mil
lions this year at five per cent, and of his concern for our
credit in saving by that sum the honour of Mr. Morris's
biUs, while those drawn by his own officers abroad have
their payment suspended for a year after they became due.
You have been told that France might help us more liber
ally if she would ; this last transaction is a demonstration
to the contrary."*
In November he wrote again on the same subject. He
1 Dip. Corr. Rev. x, 139, 148. 2 ibid. 177. * Ibid. iv. 103.

112 The Financier and the
spoke ofthe late failure ofthe Caisse d'escompte, occasioned
partly by its having gone too far in assisting the govern
ment with money, and by the inability of the government
to support the credit of the institution, though extremely
desirous of doing it, — a fresh proof that their refusal to
lend more to America was due to a real want of means.'
Jay wrote to Morris, July 20, that the French Minister
said : " It was easy to be a Financier, and draw bills, when
others provided the funds to pay them. ... He intimated
that his court was not treated with a proper degree of deli
cacy, and said that ' you treated them as your cashiers.' " ^
Luzerne and Marbois were not pleased with Morris's appli
cations for money. Morris was not surprised that France
would not lend any more, much as he desired it ; " for we
certainly ought to do more for ourselves before we ask the
aid of others." * It is easy to imagine how cutting the sar
casm of the French Minister must have been to him, for it
stated just the light in which his career as Financier might
be construed by enemies or irritated friends.
In November the Peace Commissioners wrote that they
were depending for their support on the bounty of a sub
ject of France, the banker Grand, — " a bounty to which he
tells us in his letter that he will be forced to set limits." *
The United States had then been independent for two
months. In August, 1784, we find another complaint by Grand,
that, although the account of the United States is over
drawn fifty thousand livres, and he has letters from Morris,
yet no notice is taken of the fact, and no provision made
for it.^
In July, 1783, Adams wrote to Livingston that there was
a great scarcity of money at Amsterdam. The agio of the
1 Dip. Corr, Rev, iv, 174, 2 jay's Jay, ii, 125,
3 Dip, Corr, Rev, xii, 417, * Dip, Corr. U. S. ii. 246, ^ Ibid. 35.

Finances of the American Revolution. 113
bank had fallen to one and a half per cent, and the bank
had been closed. No other loan was in as good credit or
sold as well as the American. " In short, there is not one
power in Europe whose credit is so good here as ours."
On the same day he wrote to Morris that the arrival of
a few cargoes of American produce for the payment of
interest would have the best effect on American credit.'
Before this letter could have been received, Morris wrote
to WilUnk, August 6, that, the exchange on Amsterdam
being high, and the need of money great, on account of
the disbanding of the army, he proposed to draw on Wil
link at ninety days, intending to ship tobacco, and expect
ing that the loan would bring in money .^ October 23, he
wrote again that he had drawn for 750,000 guilders, at one
hundred and fifty days' sight, to take advantage of the high
exchange, and trusting to the success of the loan.* The
notes which he had given out to the army when it was dis
banded were now pressing upon him ; and as nothing had
been done at home to provide for them, he was driven to
rely upon the loan in Holland.
The fluctuations of American credit in Holland are well
shown by the amount of bonds .sold in different months of
1783 : in July, 195,000 florins; in August, 70,000 ; in Sep
tember, 25,000 (news ofthe mutiny); in October, 10,000;
in December, 18,000.*
December 31, he wrote to WilUnk again, apparently hav
ing received disquieting news with regard to the Dutch
loan. His advices from there were down to September,
, when it appeared that the news of the mutiny at Philadel-
' phia, in June, had acted unfavourably on the loan. Morris
made light of the mutiny, and urged the bankers to sup
port the bills." In December there was great complaint of
1 Dip, Corr. Rev. vii, 113. "^ Ibid. xii. 396. = Ibid, 421.
? Report of 1785, * Dip- Corr, Rev. xii. 437-
VOL, II,— 8

114 The Financier and the
Morris's bills on the part ofthe Dutch bankers.' The bills
continued to come, however, and as late as February 13,
1784, Adams wrote to Jay, begging him to make Morris
stop, as he, Adams, was borrowing at usurious rates.^
Adams, who had gone over to England, was growling
because he had to return to Holland to borrow money
to meet Morris's bills.* In a letter to the President of Con
gress, March 9, 1784, he says that he has raised money to
prevent Morris's bills from being sent back. March 27,
he wrote that this money was raised at a very dear rate.*
A certain number of bonds of a thousand guilders each,
and bearing four per cent interest, were to be divided by
lottery among the subscribers to the loan. The lottery
bonds were to be drawn every other year from 1785 to
1797.5 In the mean time Morris had become extremely alarmed,
and well assured that the bills would go to protest. On
the 13th of January, 1784, he wrote to Le Couteulx, urging
him to take up one of the bills which had been drawn on
Holland, in case the loan there should leave a deficiency.^
On the 1 2th of February he wrote to FrankUn, urging him
to make a series of drawing and redrawings, in order to
protract payment beyond June or July, and promising to
ship tobacco at once. He thanks God that the taxes npw
exceed the expenditures, which last are reduced almost to
nothing. The next day he wrote to Franklin again, stating
the whole financial situation. It included a debt to the
bank of $340,000. He sold his bills of exchange for notes
of individuals, which he discounted at the bank. He now
proposes an elaborate scheme of drawing and redrawing
between Amsterdam, London, and Paris, in order to win
1 Adams, viii, 163, 166, 2 ibj^ jg^ a i^id. i, 408.
4 Dip, Corr. U. S, ii, 104. 5 journ. Cong, x. 163,
8 Dip, Corr. Rev. xii, 443.

Finances of the American Revolution. 115
an extension of time.^ At the same time he wrote again
to Le Couteulx, urging him to help Franklin sustain the
bills drawn on Holland, and stating that he was forwarding
tobacco to sustain the bills.-
On the same day he wrote to Grand, calling on him like
wise to help sustain the Dutch bills with any funds he had ;
and also to Willink, who had evidently reproached him for
drawing these bills. The deficiency was 600,000 guilders;
or, deducting the tobacco, 500,000. He makes excuses
for this overdraft. He says that by a circuitous negotia
tion the payment might have been prolonged, and he re
proaches the Dutch bankers for not having made it. He
had himself bought 400,000 guilders out of the miUion.
As it was, stated in the letter of October 23 that he had
drawn 750,000, we now see that there had been further
drafts, bringing it up to a miUion. The reason why he
bought the bills himself was because the London exchange
was higher than that on Amsterdam, so he bought Amster
dam and sold London. He had also drawn another bill
at six months' sight for 1,400,319 guilders, to replace biUs
drawn more than two years before at six months' sight on
Jay and protested, involving twenty per cent damages.
On this same 12th of February he wrote another letter to
WiUink, dilating on the magnitude of American resources,
and quoting Lord Sheffield's pamphlet as the highest testi
mony to those resources.*
From these letters we see that on that date he was well
aware that his account in Europe was heavily overdrawn,
and we also have here a clear revelation of the disastrous
system of running bills against time, in which he had been
engaged. It is impossible to resist the conviction that his
subsequent errors and misfortunes must be attributed in a
large degree to the bad habits and desperate methods to
1 Dip. Corr. Rev. xii. 461. 2 ibid. 452. ' Ibid. 454.

Ii6 The Financier and the
which he was habituated in the administration of a bank
rupt treasury. In a private letter to Tench Tilghman, in
March, he refers to this operation between the English and
Dutch exchanges, on his own account, and gives as a rea
son for it that his own name and his private credit were
threatened.' John Adams ahvays gave himself credit for having saved
Morris and the credit of the United States in January,
1784. In a letter to the President of Congress, a year
later, he refers back to the hard journey which he made to
raise money to pay Morris's bills.^ In a letter to Arthur
Lee, January 31, 1785, he wrote: "I am not well enough
acquainted with the history of the late Financier to know
whether I agree with you in opinion of him or not. Has
he produced his accounts of his administration as Fi
nancier? I cannot guess the reason why he should be
so attached to the French and Franklinian interests as
you think he is. He certainly has received little or no
aid from either. The bills he drew upon Mr. Grand would
have gone back protested if I had not procured the money
to pay them. More than ;^6oo,000 sterling have I fur
nished him inthe most profitable manner possible, not in sol
diers' clothes, or arms, but in dollars from the Havana, and
in cash received in Philadelphia for bills of exchange sold
at a handsome profit, and another ;^I00,000 is ready for
him, if he has not already drawn for it, as it is probable
he has. In short, his whole operations for two years past
have been supported by me, and nothing at all has been
done toward it by French or Franklin." *
As soon as the overdraft was known in America, Con
gress resumed its usual function of finding fault with the
Financier and asking him why he had done so. March 17,
» Ford Collection. 2 Dip, Corr. U, S, ii. 154,
8 Lee's A, Lee, ii. 252.

Finances of the American Revolution. wj
1784, he reported that he was compelled to draw on Hol
land in order to meet the notes which he had issued to pay
off the army ; but the Dutch loan failed, and bills to the
amount of $530,000 were protested for non-acceptance.
" Should they come back protested for non-payment, the
consequences will be easily imagined. Besides this, there
are $400,000 and the salaries of all the foreign ministers to
be paid in Europe during the current year." ^
On the 30th Congress issued a circular to the States.
When the army was furloughed, the soldiers were promised
three months' pay. The Financier issued his notes to dis
charge this promise. These notes were partly redeemed
by money supplied by the States. For the rest, he drew
on Holland. Some of these bills have now gone to pro
test, amounting, with the damages, to $636,000. The
States are called upon to provide this amount at once,
in the usual proportion of the requisitions.^
Things were, however, about to turn for the better. The
failure of Morris's bills did not hurt the credit of the United
States, because it was justly perceived that the country,
having now won its independence, was in a position to
establish its finances, and that this default was really the
climax ofthe preceding trouble. In April, 1784, Franklin
received news from the Dutch bankers that they were in a
situation to honour every draft of Morris of which they
had advice.* All through this year the Dutch loan was
advancing. January 10, 1785, Adams reported to the
President of Congress that his two loans were almost full,
and he drew the contrast between the situation then and a
year earlier.* It was the success of this loan which enabled
Morris to pay off his notes in the course of 1784, and close
up his administration.
1 Dip. Corr, Rev. xii. 478. 2 Secret Journ, i. 263.
8 Franklin in France, ii. 43. * Dip, Corr, U, S. ii, 154.

II 8 The Financier and the
AprU 9, 1784, Luzerne addressed a communication to
the President of Congress, asking what measures had been
taken to pay France and the guaranteed loan in Holland.'
In August Marbois wrote to Vergennes : " I do not con
sider Mr. Morris capable of aversion or affection for any
foreign power; but I have sufficient reason to beUeve that
his eagerness for resources may render him capable of
very reprehensible irregularities, and that if he is not bound
by the instructions of Congress, he will trouble himself
very little about his obligations to His Majesty." ^
The following incidents in the last months of Morris's
administration may be noticed.
In the spring of 1784 Schweighauser, who had been
agent of the United States at Nantes, caused an attach
ment to be levied on guns and arms, in order to recover a
debt due him by the United States. Morris protested
against this to Marbois and also to Franklin, saying that
it was astonishing to find a subject countenanced in arrest
ing the property of a sovereign power in this enlightened
age.* In 1786 Jefferson, then Minister to France, ex
amined these arms. There were thirty thousand bayonets,
fifty thousand gunlocks, thirty cases of arms, and twenty-
two cases of sabres. They had been under water on ac
count of an overflow of the river, and were said to be a
solid mass of rust; but on examination he found them
better than the report. There were also eighteen hogs
heads of gun-flints and ten anchors. They are too good to
be abandoned, if they could be withdrawn by consent of
the parties, without any notice of their having been in the
hands of justice. These were a part of the goods bought
with money when it was so hard to beg or borrow it, and
1 Dip. Corr. U. S. i. 99. _
2 Lomenie, ii. 187.
2 Dip, Corr, Rev. xii. 495.

Finances of the American Revolution. 119
when the financial administration of the United States was
reduced to the most humiliating straits for want of it.'
In a letter to Reed, March 30, 1784, Morris condemns
the loan offices, and wants to get rid of them.^ Writing to
the President of Congress, April 29, he enlarges on this
point. The officers have not conformed to the rules pre
scribed for them. " It is an expensive and a pernicious
establishment, without being attended with a single good
effect to compensate the mischief" May 6, at Morris's
request, three Commissioners were appointed to superin
tend the treasury, and were permitted to inspect it.*
Subsequent developments only too fully justified his
opinion about the loan offices. The Committee of Con
gress on Finances reported, in 1788, with respect to the
loan offices of the Revolution, that those of New Hamp
shire and Massachusetts had closed their accounts. From
Rhode Island no account had been received nor return of
any settlement. Connecticut had settled by commissioners,
but the settlement had not yet been inspected. New York
was substantiaUy in the same position. The offices in New
Jersey had been examined by the Commissioners, but the
settlement was not finished. Those in Pennsylvania had
not been examined at all. Delaware and Maryland were
in the same position as New York. The papers of the
first loan officer in Virginia were said to be lost. No set
tlement had been reached. The second had settled his
accounts with the State Commissioner. In North Caro
hna, South Carolina, and Georgia, no settlement had been
reached. In the last two the State was said to have ap
propriated the amount. The Commissioners had returns
of books and papers only from New York, New Jersey,
Maryland, Georgia, and Pennsylvania. The liquidated
1 Dip. Corr. U, S. iii, 117, 250. ^ Dip. Corr. Rev. xii. 483.
3 Wain, 352,

I20 The Financier and the
certificates were not cancelled in Nevv York. It was said
that a lot of them had been stolen and negotiated by one
of the clerks. Whether others had been taken in a similar
manner was unknown.'
June I, the statue of General Montgomery, supposed
to be in the care of Mr. Hughes of North Carolina or his
executors, was ordered to be delivered to the Superintend
ent of Finance, to be transported to New York, and set up
wherever the Legislature of New York should order, at the
expense of the United States. Congress had ordered it
early in the war. The ship that brought it over was forced
to run into North Carolina, and it had lain there since. It
was set up on the wall of St. Paul's Church, New York
City,2 June 3, the Superintendent of Finance was ordered to
provide goods for presents to the Indians, in connection
with Indian treaties.*
October n, 1784, Morris published an advertisement,
giving notice that all his notes would be duly paid at ma
turity.* On the ISt of November he returned his com
mission to Congress. " It gives me great pleasure to reflect
that the situation of public affairs is more prosperous than
when that commission issued. The sovereignty and inde
pendence of America are acknowledged. May they be
firmly established and effectually secured ! This can only
be done by a just and vigorous government. That these
States, therefore, may be soon and long united under such
a government is my ardent wish and constant prayer." ^
We may now turn our attention to the personal aspects
of the last year of Morris's administration. The most
reasonable explanation of the animosities which he had
aroused lies in the fact, to which incidental reference has
1 Journ. Cong, xiii, 114. 2 Ibid. ix. 199. ^ ibij. 225.
* Dip. Corr, Rev. xii, 502. ^ State Dep, MSS, 137, iii. 753,

Finances of the American Revolution. 121
been made many times in the above extracts, that he held
a predominant position at Philadelphia ; but we also meet
at every step with evidences of the narrow and stupid pre
judices entertained by many public men of the period.
Mr. Howell of Rhode Island wrote to Governor Greene,
December 24, 1783, that he looks to the land as the re
source with which to pay the debt. He is alarmed that
Massachusetts should have consented to the impost, and
thinks that Morris will stick to office until funds, that is,
revenue, are provided to pay the evidences of the debt
which are in his hands and those of his friends.' Febru
ary 2, 1784, Samuel Osgood wrote a long letter to Samuel
Higginson, comparing opinions with him about the seat of
the federal government and the administration of the
treasury. He favoured an alternate residence of Congress,
because otherwise the single residence would be placed at
PhUadelphia. Opinions differed, however, as to the force
of the argument which was deduced from this as affecting
Morris. Some argued that it would force his resignation,
or reduce his influence, if the residence was not at Phila
delphia; but Osgood seems to argue that Morris would
have more influence if he was at a distance from Congress.
Higginson had said that people objected to the impost
" from want of confidence in the person who is at the head
of the treasury, and from a belief that his plans are art
fully laid to subvert the liberties of the people." To this
Osgood rejoined that the treasury is " a department that
ought to have the most vigilant eye exercised over it. It
is at best a very dangerous affair to the liberties of the
people." Osgood goes onto say: " I wiU tell you very
freely that I am clearly in opinion that in mere money
transactions he has saved the United States a very large
sum." The annual expense is only half as much under
1 Staples, 461.

122 The Financier and the
him as before. He has also introduced regularity of ac
counts. This should be fairly admitted, because it is im
politic, " when a person is to be attacked," to depreciate
his real merit. " His notions of government, of finance,
and of commerce, are incompatible with liberty. ... I
hope it will be generally agreed that if it was necessary to
create an omnipotent Financier in 1781, that necessity does
not exist now." He has a plan that the Confederation
shall assume the State debts, but then reapportion them
among the States, and let each of them pay its share as
it sees fit. " What a field will be open if the ravages oc
casioned by the enemy are to be liquidated ! Yet this is
set on foot by the Superintendent of Finance, probably to
balance the claims of some States ; and will it not have its
effect?"' William Lee recorded on the cover of his letter-book,
apparently about 1783, the following opinion : " Mr. Robert
Morris seems to be the most dangerous man in America,
from the particular attention that is paid to every creature,
dependent, and connection of his that appears in Europe,
by Franklin and John Adams, — two men that are rivals in
all the low cunning and tricks of politics. This conduct
puts one in mind of the theology of the native Indians of
North America on the first discovery of that continent.
They never worshipped an all-powerful, good, and gracious
divinity, but they paid their adoration and erected temples
to a wicked, malignant, artful, and malicious being, such as
the devil is painted to be by the European ; because they
said that a good being would not, nor could he from his
nature, do them any harm, but it was necessary by adora
tion, sacrifices, etc., to appease the malignant spirit of the
wicked demon." ^
^ Mass, Hist. Soc, Proc, March, 1862, p. 467.
2 See page 272.

Finances of the American Revolution. 123
On the 5th of April, 1784, a report was made to Con
gress on the state of the debts, and a budget was presented
for the current year, which was the first effort of that kind.
It was stated also in decimals of a dollar, and not in nine
tieths. The budget called for six millions of dollars, — one
half to be paid in cash, and one half in indents or certifi
cates of interest due. On the 12th of April Congress
changed the amount demanded from six millions to four.'
Very naturally the tax-payers inferred that if they did not
pay any taxes, probably it could be reduced to two. It
was such proceedings as this which gave point to the com
plaints out of doors, that a party wanted to organize a fed
eral government on a grand scale, with many officers, large
salaries, a great establishment, etc.
In fact, the later developments literally justified such a
view of the case. In the budget of 1787 the expenses
were estimated at only a half million doUars. Congress
had cut down the whole establishment to dimensions more
conformable to the popular taste, and, in fact, much more
fitted to the circumstances of the country.^ In a treasury
report of 1788 it was said that the requisition in 1784 ex
ceeded what was needed, and that in 1786, by mistake,
^333.000 were called for more than was needed.*
A committee had reported a new organization of the
treasury department March 30, but nothing was done
about it until late in May.* May 28, a committee re
ported a new plan for that department. In their report
they say : " The committee are of opinion that the United
States have derived very great advantages from the ar
rangement and management of their finances under the ad
ministration of the Hon. Robert Morris as Superintendent
thereof; but as he has signified his resolution to retire from
1 Journ. Cong. ix. 71, ^ Ibid. xii. 129,
2 Ibid, xiii. 79. ^ Ibid, ix. 68.

124 The Financier and the
the said office, your committee are of opinion that it will
be expedient to make seasonable provision for such event,
and they propose a Board of Commissioners." They fixed
the salary of these at $2,500 each. There were to be three,
and they were to take up the business on the loth of No
vember, or sooner if Morris was ready to surrender it. No
Commissioner might engage, directly or indirectly, in com
merce. The term of the Commissioners was to be three
years.' Congress found great difficulty in electing a Board
which would serve. Samuel Osgood and Walter Living
ston were elected on the 25th of January, 1785,^ and
Arthur Lee was elected as the third member, July 27,
1785.* Thus there was no Board of Treasury or other
head of that department at all from November i, 1784, to
January 25, 1785 ; and it does not appear that Osgood and
Livingston proceeded to act as a Board, for Jay wrote to
the President of Congress, April i, 1785, urging that the
Commissioners of the Treasury ought to convene and pro
ceed to business.* In 1788 the Committee on the Finances
fixed the date upon which the new Board of Treasury
took office after Morris's resignation as the 21st of April,
1785.5 1 Journ. Cong, ix. 179. ' 2 ibid. x. 7.
" Ibid, 175, 4 Dip, Corr, U. S. ii. 156.
5 Journ. Cong, xiii, 107.

Finances of the American Revolution. 125

CHAPTER XXIII.
REVIEW AND SUMMARY OF MORRIS'S ADMINISTRATION ; THE
COST OF THE WAR.
THE authorities for the business of the treasury under
the administration of Robert Morris are the two
Reports constantly referred to in the present volume as
the Reports of 1785 and 1790. The latter is an abbrevi
ated and compendious statement, prepared by Joseph
Nourse, under an order of the federal House of Repre
sentatives. It adds some information and puts some
things in a clearer light.
November 2, 1781, Congress passed an Act for appoint
ing receivers, in the several States, of the continental
revenue. February 12, 1782, Morris issued instructions to
these receivers. They were to report at the end of each
month the sums received by them, and to publish this re
port in the newspapers of the State, " to the end that every
citizen may know how much of the moneys collected from
him in taxes is transmitted to the treasury of the United
States for the support of the war, and also that it may be
known what moneys have been at the order of the Super
intendent of Finance." It was intended that the federal
department of finance should pubUsh a report of receipts
and expenditures quarterly. In explaining why this was not
done, Morris said : " It wiU be sufficient to observe that in
the end of July, 1783, the anticipations upon the pubUc
funds by a paper circulation, and other auxiliary achieve
ments, exceeded $800,000. This anticipation was founded

126 The Financier and the
on credit, that is, on opinion. It is a misfortune that
secrecy should be necessary for the support of public
credit. The officer who withholds a true state of affairs
subjects himself to blame ; but there are moments when he
ought to withhold that state, and in such cases he must
bear the blame and leave his justification in the hands of
time." In 1785 he published the Report of that year, which
presents the quarterly reports which should have been
regularly published under the plan described in the aboye
paragraph.' The sums which came into the treasury during Morris's
administration — February 20, 1 781, to November i, 1784
— were as follows :2 From taxes, gross, $2,050,590; net,
$2,025,099, which was paid by the States as follows: —
New Hampshire  $3,000
Massachusetts  332,677
Rhode Island  74>555
Connecticut  132,403
New York  52,657

New Jersey  124,348
Pennsylvania  43i>773

Delaware

2,140

Maryland  129,413
Virginia  352,113
North Carolina  o
South Carolina, supplies . . 373,598
cash . . . 41,916
Georgia  o
n T. -j',. „ , . ,, ^^2,050,590 Net .... 12,025,099
Cash paid by Pennsylvania to Morns with which to buy specific
supplies, and which was spent for the United States ... i c-j %-m
Supplies and vessels sold  346 2^4
Bills of exchange sold, including Havana bills and bills forflour" 3,26c;' Jo
Specie imported, French loans  1:74 C2i
Borrowed of the Bank of North America  . . i 249975
Loans and advances from individuals  ' al-ia/i
Booty of Yorktown  ' ic'oS
Prizes  . '. 76 74Q
Commercial transactions, gross sales  \ \ 2-'o'oi c
Contingencies  .'.".' ^i'qo6
Sundry sums due the treasury on balance of account .... 83,224
, ^ , „ S8,i77,43iS
1 On that Report see further, page 208.
2 Report of 1790. a gee note, vol, i. p. 281.

Finances of the American Revolution.

127

The expenditures were : —
For the civil establishment  $484,552
For the military establishment  5>233,3i'i
For the marine establishment  746,514
For loans and advances repaid, including Bank of North America 1,336,009
Cost of merchandise, ships, etc  236,305
Sundries  118,752
Cash balance  21,986
$8,177,431
The sum received for biUs sold, to draw funds from
Europe, was : —

In 1781 .

8294,165

In 1781 .

30,565 specie value of Penn. paper to the am't of 1111,828

In 1782 .

1,077,490

In 1782 .

213 " " " " " 534

In 1783 .

1,692,021

In 1784 .

129,739

$3,224,196
By the Report of 1790 the total amount of expenditures
and advances at the treasury of the United States, during
the war, in specie value, was estimated as follows : —

775 and 1776

$20,064,666

1777

24,986,646
1778
24,289,438
1779
10,794,620
1780
3,000,000
1781
1,942,465
1782
3-632.745
1783
3.226,583
1784
548,525 to November i.
$92,485,693
This table shows how the country lapsed into depen
dence on France after the alliance was formed. The round
number opposite 1780 is very eloquent. It means anarchy
and guesswork.
Ofthe goods purchased in France with money loaned to
the United States, Morris sold $334,420 worth to reahze.
What these goods cost is not known.
128 The Financier and the
Morris's commercial transactions for the account of
the United States produced a profit, on a part, of $21,881 ;
and a loss, on a part, of $10,915. Net gain, $10,966 on
transactions to the amount of $99,027. The tobacco
transactions, chiefly in connection with the capitula
tion of Yorktown, were kept separate from the other
commercial transactions. They produced a gain of
$13,109.1 Morris's transactions in the attempt to appreciate the
Pennsylvania paper covered $233,117 in paper, on which
the profit which he won for the United States was
$32,998.2 From a letter of Morris to Washington, August 29, 1782,
we learn that it cost $3j per month to feed a soldier.^
We have compiled the adjoining table from the Reports
of 1785 and 1790, in order to show the movement of the
treasury during Morris's administration. He uses the
word " Anticipation " in a peculiar way. In column i is
given the floating debt, to which he gives that name. In
column 2 is given the surplus or deficiency of the account
of receipts and expenditures. The deficiencies in this
were met by printing and issuing his notes. They were,
therefore, " Anticipations."
The floating debt included the current deficiencies in
column 2, the overdrafts on the two bankers (3 and 4),
the excess of the borrowings from the Bank of North
America over the stock in that bank owned by the United
States (5), the bills drawn on envoys without funds (6 and
7), the old debts assumed and paid (8), the bills payable,
so far as they exceeded the bills receivable, if at all (9),
and the overdrafts on Willink & Co. (lo).* When any of
these accounts presents a surplus, it diminishes the antici-
1 Report of 1790. 2 lyj
' Dip. Corr. Rev, xii. 253.

^ ^&^
^

^
^
^

1 8
3
4
5
6
1
8
9
10
11
18
13
14
" Anticipations."
B'k of N. Amer,
j:
c
i
DATE.
Floating Debt,
CurrentDeficit,
M's Notes.
Grand.
Le Cou
teulx,
Debt to.
Stock in.
Bills on
Holland,
Bills on
Jay,
Old
Debts paid
Receiv able in
excess, -|- ;
payable, —
Willink &Co.
i
•g"
T3 O'O
¦Bo
1 u
a 0
H
Feb. 20, 1 78 1
**2,536
-
Overd. 1,576
—
—
—
2l3
376
378
—
—
_
_


Jan. I, 1782
1,606
Surplus 306
" I1158
Overd,
141
-
-
21S
60
263
— 74
—
—
1.356
—
747
Apr, I, 1782
1,728
11
" 1,012
((
41
300
252
218
51
232
-136
—
—
28s
—
643
July I, 1782
1,264
M's Notes 20
" 1,096
-
400
253
218
-
205
— 80
Dep.
484
30
215
484
467
Oct, I, 1782
159
" 2l8
205
-
400
2S3
-
-
197
+ 2
"
606
154
774
123
965
Jan. I, 1783
692
" 380
" 947
Dep.
395
100
53
-
-
74
-I-230
tc
130
tS43
555
56
1.555
Apr. I, 1783
793
" 577
" 686
tt
393
IOO
S3
-
-
74
+ 72
(t
122
205
555
74
1,290
July I, 1783
5S2
" 824
" 289
tt
188
129
-
-
-
30
-f'38
((
392
218
555
346
1,021
Oct, 1, 1783
643
" 602
Deposit, 81
It
81
154
-
—
—
23
-1-6.
Overd,
88
172
—
106
505
Jan, r, 1784
677
" 230
10
"
16
-
-
-
-
23
-f-i28
"
579
201
—
10
409
Apr. I, 1784
213
" .83
" 10
Cl
16
-
-
—
-
23
-Fi23
((
157
162
—
402
118
July I, 1784
Surplus, 174
" 118
"
Overd.
I
-
-
—
—
9
+233
Dep,
59
306
—
276
224
Nov. I, 1784
Antic, 40 Surplus 21
28
(C
18
( Antic,
on taxes
on funds
in Europ
1531
e 88)
-I-178
Overd.
7
56
-
35
20s
* In all cases the three figures for thousands of dollars are omitted.
t This figure is very misleading; $343,000 ofit were supplies credited to South Carolina on her taxes.
130 The Financier and the
pations. It will therefore be found that column i is the
balance of aU the columns down to 10.
Columns 11, 12, and 13 are entirely different.
One chief purpose of the table is to ascertain and show
how Morris extricated the department from the position
in which he found it. To this end the quarterly payments
of taxes, the French loans, and the bond sales are given.
The figure for the taxes here given is the total amount
paid by the States in the period. In Morris's accounts
only the amounts received at the treasury were put into
the receipts where they acted on column 2. All the taxes
paid were a resource. This column, as here given, there
fore has no book-keeping connection with columns i to 10.
In column 12 it is shown at what rate the French court
paid over to the American bankers, during the period, the
loans and subsidies granted. We take account only of
the sums paid to the bankers. Other sums were spent for
supplies, and are not in the books at aU. Others were
sent in specie, and are already included in columns 5 or 9.
Column 12 therefore especially shows how the French
loans paid the overdrafts on the French bankers of the
United States. In column 13 the sales of bonds are given
by quarters to show at what rate and at what points of
time they became available to carry the load.
Finally, column 14 is added, giving the total expendi
tures ; because it was by diminishing them, while winning
the resources in columns 11, 12, and 13, that he performed
his task.
It is plain that the operations in columns 12 and 13 con
sisted in funding the floating debt. No account was kept
in the books of the loans thus contracted, or of the inter
est on them, or on any other part of the debt. The " an
ticipations on funds in Europe," left by Morris when he
went out, were a provision by him to pay the first interest

Finances of the American Revolution. 131
on the loan obtained for the United States by France in
Holland in 1781.
He also gave out " anticipations on the taxes " in settle
ment of the Quartermaster-general's accounts. The arrears
of taxes in the hands of the receivers were then only
$16,636. The large plus balances in column 9 consist
almost entirely of ships and cargoes bought and not yet
sold. Therefore it was only for a moment, and by special
manipulation, that Morris got in his notes, and made a fa
vourable situation which enabled him to escape. A care
ful study of this table, however, will excite wonder at what
he succeeded in doing. Modern men are satisfied to see
a man do well, even with reasonable means. The men
of his time expected a man to do much with nothing.
Hence they made light of what he had done.
Morris's detractors argued that he deserved no great
credit for his management of the finances as compared
with his predecessors, because in his time everything turned
in his favour. It is true that if things had remained as
before, he could not have restored the finances ; for the
miracle of carrying on a war without means has never yet
been performed by anybody. The events which gave him
an opportunity to restore the finances, by intelligent and
energetic action, were as follows.
The first was the collapse of the paper currency and its
absolute removal from circulation, in May, 1 781, just be
fore he took office. As soon as it was out of the way,
specie came in. He was able to throw aside all the tram
mels in which the treasury operations had been entangled
by the paper system. It is true that he did not succeed in
his attempt to relieve himself entirely from these anticipa
tions, which, inasmuch as they were anticipations, would
have used up the revenues of his time ; but it was a great
gain for him to be able to conduct his current operations

132 The Financier and the
at least in terms of specie. The second thing in his
favour was the great help granted by France in 1781, and
especially the importation of a part of this in specie. This
enabled him to found the bank, from which he borrowed
six times what he put into it. The chief use of the bank
to him, however, was to discount the notes which he took
for bills of exchange. Then also it was possible for him
to reduce the expenses in a way which his predecessors
had not had the courage or the opportunity to accom
plish, because in their time the abuses of the old method
had not gone far enough to force acquiescence in the
reforms. In Morris's time, and chiefly, as it appears, by
his exertions and merit, the expenditures were greatly
reduced for an army of a given size. When the war came
to an end, it was possible for him to reduce the entire
establishment to a very low scale. Next we notice that
the efforts to introduce taxation bore fruit which, although
it was trivial in one point of view, was large enough to be
very important to him in his desperate circumstances.
Finally, when his need was the greatest, and these advan
tages and opportunities proved inadequate, the rise of
American credit made the loan in Holland possible, and
this carried him through to the result. This also explains
what colour of truth there was in John Adams's claim that
he enabled Robert Morris to extricate himself frqm his
office with credit. It belonged to Adams's idiosyncrasies
always to think of that point in a public transaction in
which he had stood, as the centre of it, and of that activity
in it which he had executed, as the leading one.
According to the best records we possess, the cost of
the war to the United States, reduced to specie value
year by year at the official scale of depreciation, which,
being always below the truth, makes these figures too
high, was, as above stated, $92,485,693, at the treasury.

Finances of the American Revolution. 133
There were also certificates of indebtedness out for
$16,708,009. There had been expended in Europe, which
never went through the treasury, $5,000,000. The States
were estimated to have expended $21,000,000. Total,
$135,000,000. Jefferson calculated it at $140,000,000, by
adding the debts incurred and the continental currency.^
The debt contracted by England during the war was
;^ 1 1 5,000,000, for which ;£9i, 000,000 were realized.^ The
Comptroller of the Treasury of France said that it cost
60,000,000 livres a year to support the army in America.^
Vergennes told Lafayette, in November, 1782, that France
had expended 250,000,000 livres in the war.* There
is an often-repeated statement that the war cost France
1,200,000,000 livres,^ or 1,280,000,000,^ or 1,500,000,000.^
Arthur Young put it at ,;^50,ooo,ooo sterling.^ Probably
if 60,000,000 a year for five years, or $60,000,000, was
taken as the amount directly expended for and in Amer
ica by France, it would be as fair a computation as could
be made of her contribution to American independence.
She had large expenditures elsewhere in the prosecution
of her war against Great Britain, and her incidental losses
of ships, etc., were great.
When England abandoned the effort to subdue the
colonies, she was in a fai better position for continuing it
than either of her adversaries. George III. was by no
means stupid in his comments and suggestions about the
war. No Englishman of the period said things which now
seem wiser in the retrospect. As early as September,
1780, he said: "America is distressed to the greatest
degree. The finances of France, as well as Spain, are in
1 Jefferson, i. 401. 2 Elliott's Funding, 1236.
* Circourt, iii, 159. * Dip, Corr, Rev. vi. 470.
6 Circourt, iii. 260, Editor's note. ^ Durand, Preface.
' Steuben, 93. ^ Pinkerton's Voyages, iv. 350.

134 The Financier and the
no good situation. This war, like the last, will prove
one of credit."-^ This opinion was fully justified in 1782.
French finances were then hastening toward bankruptcy,
so that France could not continue the war expenses or the
loans and subsidies to America. English credit was high.
October 2, 1782, Vergennes wrote to Montmorin,^ that the
English fleet was stronger than at the beginning of the
war, while the fleets of France and Spain were weaker ;
that French finances were greatly weakened, while English
credit was high ; that England had recovered influence in
Russia, and through Russia on Prussia and Austria. He
wanted peace and reconciliation with England in order to
act with her in eastern Europe. If England had chosen to
persevere in the war, the matter of credit would have been
the most important element in her chances of success,
aside from the natural difficulties of the enterprise.
1 George III, ii. 336. 2 Circourt, iii. 331.

Finances of the American Revolution. 135

CHAPTER XXIV.
THE BURDEN OF THE WAR UPON THE PEOPLE.
IN view of the pitiful story of weakness and failure dur
ing this period, the question naturaUy arises whether
it was due to the exhaustion ofthe country by the distress
of the war and the calamities of the times. We have
ample material with which to answer this question.
From the very beginning of the contest it was difficult
to enlist soldiers, because of the attractions of other enter
prises. Rush wrote to R. H. Lee, December 21, 1776,
that the Eastern States had great difficulty in filling their
quotas, on account of the rage for privateering. The con
tinental soldiers were eager to serve their time out in order
to go to sea. Ten thousand men of New England were
then so engaged.^ We have heard Morris complaining at
the same time of the same thing,^ and we have seen in
stances of embargoes on ships and men.^
An interesting specimen of the life of one of these
soldiers and sailors is given in the " Adventures of Ebene
zer Fox." He served a tour of militia duty for a few
months. Charles Biddle's memoirs show how a man of
superior position spent the time of the war. He did a
few weeks of military duty on an excursion to New Jersey.
The rest of the time he was pursuing gainful voyages be
tween the West Indies and North Carolina.
In the summer of 1777 the last-named gentleman i-ode
through New Jersey. " Nothing in the country at this
^ Lee's R. H. Lee, ii. i6l. ^ See vol. i. p. 204. ° Ibid. 133.

136 The Financier and the
time had the appearance of distress. The people every
where as we passed appeared cheerful and contented." ^
Graydon says that, fortunately, at the beginning of the
war, few were aware of the price at which independence
was to be acquired.- If they had been, it would not have
been achieved. If there had been as much disaffection to
independence in 1776 as there was in 1777, it would never
have been begun. " StUl, it may be observed that as
whigism declined among the higher classes, it increased
in the inferior, because they who composed them thereby
obtained power and consequence." They got military
rank and public occupation, instead of agricultural and
mechanical work.^
In 1779 Franklin wrote to his daughter that when she
told him how dear everything was, he thought she was
going to say that everybody was economizing; but she
said, " There never was so much pleasure and dressing
going on." She had written to ask him for black pins and
feathers from France. After preaching frugality, he de
cUned to furnish her with any such stuff. " If you wear
your cambric ruffles as I do, and take care not to mend
the holes, they wiU come in time to be lace; and feathers,
my dear girl, may be had in America from every cock's
tail." 3 He also wrote to the President of Congress, in
October, 1779: "The extravagant luxury of our country,
in the midst of all its distresses, is to me amazing. When
the difficulties are so great to find remittances to pay for
the arms and ammunition necessary for our defence, I am
astonished and vexed to .find upon inquiry that much the
greatest part of the Congress interest bills come to pay for
tea, and a great part of the remainder is ordered to be laid
out in gewgaws and superfluities."*
1 Biddle, 100. 2 Graydon, 285.
8 Franlilin, viii, 375, 4 Dip. Corr. Rev. iii. n6.

Finances of the American Revolution. 137
In June, 1779, Pickering was having the regulations
printed which Steuben had prepared for the army. He
writes to excuse delay : " We expected to send you more
copies ofthe regulations, of which the bookbinder gave us
encouragement; but his workmen failed him. It is not so
easy to get work executed in America as in Europe. Here,
under the present scarcity of hands, you can place no de
pendence on your workmen, — to-day they are with you,
and to-morrow on board of a privateer, with hopes of mak
ing their fortunes." -^
A French officer wrote, in 1779, that New Hampshire
had not suffered from the war. Her people were enriched
by privateering. " Patriotism is null at Philadelphia. It
has become almost farcical. Fortune is the idol in every
State. All who are well off are corrupt at heart, and so
athirst for peace that this would be welcome at any
price." 2 The thirst for gain was noted by many ob
servers, both foreign and domestic. They often spend
their rhetoric in denunciation of it. The chief value of
their observations is in the proof they furnish that there
were new chances of gain offered, not only in privateering,
but also in more legitimate enterprises. The chances of
gain, especially when presented to people who had not
previously enjoyed them, awakened the appetite for gain.
In June, 1780, Joseph Reed wrote to Washington : " In
my opinion we have miscalculated the abilities of the
country, and entirely the disposition of the people to
bear taxes in the necessary extent. The country not im
mediately the seat of either army is richer than when the
war began, but the long disuse of taxes and their natural
unpalatableness have embarrassed the business exceed
ingly; and tories, grumbling whigs, and party have all
thrown in their aid to increase the discontent. . . . Our
1 Steuben, 217. ^ Durand, 17.

138 The Financier and the
country friends find their patriotism abate as their interests
are affected by duties or taxes. I am inclined to think
some stroke of adverse fortune necessary, and that lasting
good may flow from it; for pretend what we may, the
country is much recovered from the distress of the war,
and really has the three great requisites of war, — men,
provisions, and iron, if not in abundance, in sufficiency for
all our wants. Our only difficulty is to draw them forth ;
and for this two things are essentially necessary, — namely,
union among the States, generally and particularly." Party
divisions in Congress have greatly weakened its influence,
encouraged the tories, and discouraged the whigs.-'
At the same time MarshaU noted that there were great
murmurings among the people on account of depreciation,
heavy taxes, militia fines, enlistment, and dearness. Great
importations had raised prices. " Wonder of wonders,
never known before." ^ Grayson wrote to Smallwood :
" America is full of resources, if properly called forth. If
we fail in the present contest, it will not be for want of
means. In fact, we shall die of the doctor." ^ We find in
Jones's letters the following paragraph written in Novem
ber, 1780: "The States never were blessed with greater
plenty, or had it more in their power to lay up ample
stores of provisions for the army than at present; and if
the people will not lend them to the public and wait for
future payment, they must be taken. But they should be
so taken as to occasion as little disgust as possible, which
a regular apportionment of specific articles may effect.
Some vent should be found for the surplus of the earth's
production, or I fear the collection of heavy taxes will be
found oppressive and produce clamour and discontent, if
their collection shall be found practicable at any rate.
1 Reed's Reed, ii. 210. 2 Marshall's Diary, 248.
8 Maryland Papers, no.

Finances of the American Revolution. 139
Whether this can be effected by internal demand and con
sumption I doubt; and if it cannot, no other mode will
answer but opening the ports." ^
At the same time Pownall was telling the sovereigns of
Europe : " North America has advanced, and is every day
advancing to growth of state, with a steady and continually
accelerating motion, of which there has never yet been
any example in Europe." ^ In 1780 Peletiah Webster
said that although the United States might borrow abroad
to pay for importations, it was absurd to borrow abroad to
pay for their own products. We are not weak in supply.
Our country " is full of everything we want, clothing and
military stores excepted ; but the weakness of our councils
and administrations, and that our domestic economy should
be so bad that we should not be able to call into public
use the very supplies in which the country abounds, is
shameful." It will destroy our credit in Europe. He
ridicules the plan of drawing bills when there are no funds,
and they may come back " to the utter ruin and most
laughable contempt of the credit of the States. They
would doubtless have to be sold at twenty or thirty per
cent discount. . . . Our country is richer, more full of men
and stores necessary in war, than those of Europe in gen
eral. . . . Our country is not exhausted ; it is full of sup
plies of every kind which are needed for public service." ^
In December, 1780, Glover wrote that wheat was seventy-
five cents a bushel in New York, and the army was starv
ing.* Heath's Memoirs give a representation of comfort
and plenty in the seaport towns in January, 1781.^ In the
spring of 1781 Reed wrote that trade was very flourishing
in Philadelphia and New England.^ In a letter to Jay,
1 Jones's Letters, 41. ^ Pownall's Memorial, 56.
, 8 Webster, 63, 106, 153. * Bancroft, x. 415.
6 Heath's Memoirs, 271. ^ Reed's Reed, ii. 296.

140 The Financier and the
George Clinton said : " Our resources as a nation are, how
ever, yet great. We abound in provision, and the prices
in specie are nearly the same as at the commencement of
the war." ^ Reed wrote to Washington in May that there
was no scarcity, but abundance of flour in Philadelphia.
Morris wrote the same thing, and attributed it to the repeal
of the embargo.^ Reed, however, asked Congress to lay
an embargo, in order to get this flour into the govern
ment magazines.^ In July Pickering wrote to his deputy
in Virginia, from New York State : " All public credit is at
an end here, as well as with you. Money is the universal
cry. With that I can get anything, and at a cheap rate." *
In the year 1781 Virginia was the seat of War, and es
pecial value attaches to the state of things there. Febru
ary 12, 1781, Benjamin Harrison, being on a mission for
the State at Philadelphia, reported to Governor Jefferson :
" There is great abundance of clothing in this town, but
it can't be procured without money or tobacco ; nor will
the latter do, unless the enemy leave our country [Vir
ginia]." A week later he wrote again: "This town
abounds with cloth, but the only way Congress can obtain
it is on credit, and as I said before, theirs is at but a low
ebb."® In June a deputy quartermaster wrote to the
Speaker of the Assembly of Virginia, from Stanton, de
scribing in strong terms the distress, and especially the
need of wagons. " You must be well informed, sir, that
there are wagons, provisions, and forage to be had in the
country in the greatest plenty, so that nothing is wanted
but ways and means to obtain them."^ September 7,
Colonel Carrington wrote to the Governor that Lafayette
was in great distress for want of provisions. He had been
I Johnston's Jay, ii. 15, April 6, 1781. "^ See vol. i. p. 272.
3 Reed's Reed, ii. 300. * Va. Papers, ii. 194.
6 Ibid. i. 509, 527, 6 Ibid. ii. 17J.

Finances of the American Revolution. 141
obliged to borrow bread of the French army since it
landed. " Amidst the most plentiful resources, our army
is like to starve." ^ At the same time it was reported from
Amherst County, Virginia : " Flour and grain are abun
dant; but unless the people are assured of payment, these
articles cannot be procured ; " ^ and from Prince William
County, that it " can easily supply sixty thousand bushels
of wheat." ^ Another quartermaster reports to the Gover
nor that there are large quantities of beef in North Caro
lina, but it is mostly in the hands of individuals. He
could not obtain it for the State.* Liquors and salt, which
were especially wanted for the public service, were abun
dant on the eastern shore of Virginia.® Another officer
in command of a detachment writes from Cumberland Old
Court-House, that he does nvot know how to get provisions,
although there are plenty in that county alone to support
the post.® Another writes in October : " The resources of
the State are ample, if effectual measures are pursued for
obtaining them."'^ In December Colonel Armand, who
was posted with his legion at Charlottesville, wrote that
there was plenty of forage in that county, yet he was in
the greatest necessity for want of it,^ Colonel Febiger
wrote, January 4, 1782, that he could not get suppUes, and
feared his troops would starve, " Although there is plenty
of wheat in Amelia, Bedford, and Prince Edward Coun
ties, it cannot be gotten except by impressment." ^ Feb
ruary 16, the head of the State War Department reported
to the Governor : " The troops are entirely without food,
although there is an abundance in the country." There is
no one to collect and distribute the public beeves scattered
over the counties.^"
1 Va, Papers, ii. 401. ^ jbid. 406, ' Ibid, 451.
* Ibid. 479. ^ Ibid, 454. " Ibid. 486.
7 Ibid, 514. 8 Ibid. 648. 9 Ibid. iii. 7- " I^i'd, 65,

142 The Financier and the
Not only were these supplies in existence in the country
in ample amount, but they could be obtained without diffi
culty if money was offered for them. In fact, this period
proves, what is proved by so many others, that the time
when people take into their heads the most extravagant
superstition about gold is when they are forced to use
paper. The French in 1780 began to buy supplies with specie.
This gave them command of the market, which Congress
seemed to resent. June 5, 1780, they resolved that the
public service would be best promoted if the same cur
rency was used in obtaining supplies for the French army
as for the American.^
In the next year, during the Yorktown campaign, this
competition became most distinct. The State agent of
Virginia reported to the Governor, that the French were
buying supplies through the State. " The hard cash draws
supplies to them from great distances." He thought that
if the consul would employ an American agent, he could
save twenty-five per cent. The agent evidently wanted
to finger the specie. Another agent reported that the
French agents were purchasing supplies with specie.
" That infatuating metal will immediately have such in
fluence that not an ounce of any kind of supplies will be
furnished to the State agents. The people will go through
thick and thin to get the crowns and louis d'or. I fore
see the most dangerous consequences arising from these
separate interests. The American army must infallibly
suffer." The same day he writes again that there should
be an understanding between the agents of the two armies.
He has written to all the public officers : but it " all will
avail nothing; the gold and silver wiU overset aU." Quar
termaster Young writes that the agents of the French
1 Journ, Cong. vi. 58.

Finances of the American Revolution. 143
army buy with hard money; hence supphes cannot be ob
tained for certificates. All the supplies ought to pass
through the Quartermaster's and Commissioner's hands.
[This would mean that the French must buy provisions
for both armies.] Major Claiborne complains of the
fascination of the French crowns. Lieutenant-Governor
Jameson writes to Governor Nelson that the agents can
obtain no provision, because the French buy for specie.
Colonel Davies reports to Governor Nelson that the hard
money of the French engrosses the supplies. " It would
be of great advantage could the purchases be made jointly.
The hard money of the one would give credit to the other,
as most people will readily receive certificates for one half,
perhaps two thirds of their provisions, if they could have
the remainder in hard money." Evidently they were aU
anxious to get the handling of the French money. M. de
Tarle, the French agent, replied to Governor Nelson, that
he would buy supplies for the French army of the Gov
ernor's agents when they had them, but would not consent
to be restrained. " Experience has taught, and the world
are convinced, that open markets and free liberty to indi
viduals to sell, are the only sure means of supplying the
army; and though temporary regulations may be at some
times useful, in general, restraining the subject and pre
venting his disposing of his property in his own way
causes a withholding, and often real scarcity. I am con
vinced that the markets will be weU supplied when your
Excellency shall make it known that the army of France
will purchase with ready money such things as they want
of those who bring them to market, and that no interrup
tion will be given to them by impress or seizure." ^
There is very little evidence of distress from the war.
In Rhode Island, in 1776, we find it stated that women
1 Va. Papers, ii. 450-565, September and October, 1781.

144 "^^^ Financier and the
worked in the fields, which is supposed to mean that the
men were absent in the army in such large numbers that
the women had to do the work.^ Anburey noted evidence
of poverty and distress in central Massachusetts, in 1777,
on the line of march of the Burgoyne prisoners from
Albany to Cambridge.^ That region, however, never was
the seat of war at all, and the people there probably in the
best of times might have made the same impression on
him. In July, 1778, just after the English evacuated Phila
delphia, Gerard wrote that that town was reduced to a
third of its inhabitants, three quarters of whom were
tories ; and that there was a similar state of things in New
York, Boston, and other maritime cities.^ The population
of Philadelphia, in 1770, was, of whites, 39,765, and in
1779, 54,683.* During the British occupation it was, ac
cording to a census taken by Galloway, including all the
territory within the British lines, 25,000.® The occupation
produced only a temporary, although serious, interruption
in the growth of the city. The same was true in other
places. In 1781 Philadelphia was very prosperous.® In
1782 the English made their blockade very stringent, and
succeeded in restricting commerce.^ Reed said that the
trade of Philadelphia was ruined.^
In his Report of 1785 Morris said: "The needy can
never economize." The Americans of the Revolution,
however, did not prove this proposition. Their case was
one in which, by overwhelming evidence, ample means
were unavailable, or were wasted because there was no
system of administration. They proved another propo-
' Vernon's Diary, 34, 44. 2 Anburey, ii. 37.
2 Doniol, iii, 272. * Poll lists cited by Brissot, ii, 92.
^ Galloway's Examination, 25. 6 gee page 274,
' See pages 40, 74, 88. ^ Reed's Reed, ii. 380.

Finances of- the American Revolution. 145
sition, perhaps generally more true than that of Morris :
Without method and discipline economy is impossible.
It must be noticed, however, that the strength and thej
weakness of the Americans lay in the same fact. It wasj
because of the lack of social organization that it was im
possible to conquer them. There was nothing which could
be struck, a blow on which would be felt throughout the
pohtical body. The blows which were struck passed like
those of a sword drawn through water.
If we turn to ask the question what was the military
burden of the war upon the people, the following facts
may be collected as bearing upon it: There was a current
assertion that the colonies, in the Seven Years War, had
25,000 men on foot, and the assertion is met with that
England had only 15,000 men in America.^ In his ex
amination before the House of Commons, on the repeal of
the Stamp Act, Franklin put the number of white men in
North America between sixteen and sixty years of age, at
300,000.^ Kalb, in 1768, reported that there were reckoned
to be 200,000 young men capable of bearing arms between
Nova Scotia and South Carolina, without depriving agri
culture of necessary labour.^ Governor Penn, before the
House of Commons in 1775, said that Pennsylvania had
60,000 militia, of whom 20,000 before he left had armed
themselves at their own expense, and were receiving no
pay; and Congress were making their own arms and can
non adequately for present and future needs. This state
ment was extremely exaggerated and incorrect in some
points, and possibly in all.* Franklin put the white popu
lation of Pennsylvania at 160,000; of whom he thought
one third were Quakers, and perhaps a third Germans.
An anonymous writer, in a letter to Lord George Germain,
1 Moore's Diary, i 231 ; Dip. Corr, Rev, ix. 257 ; Marshall's Washington,
i. 403, 427.
2 Franklin, iv. 165. " Kalb, 290, * Stedman, i, 161.
VOL, II. — 10

146 The Financier and the

said that an American had calculated for him the fighting
strength of America at 428,400 ; and he asserted that' in
the Seven Years War New York alone sent to sea forty-
eight ships, with 675 guns and 5,530 men. Governor
Tryon, in his report on New York in 1774, put the white
population at 161,102. "The militia may be supposed to
consist of about 32,000." ^ He evidently found the militia
by dividing the population by five. Hamilton, in orie of
his youthful essays, taking the population as 3,000,000,
calculated that there were 500,000 fighting men.^ In 1781
he took the population as two and a half millions. The
European rate was, he said, one soldier for a hundred
souls. This would give 20,000 soldiers ; but the United
States had raised 30,000.^ Galloway put the white men
•capable of bearing arms at half a million.*
The best calculation of the population at the beginning
of the war is two million and a half Upon the usual
methods of calculation, this would give 450,000 adult
males at least ; and, if the bottom limit were taken at six
teen years, which was the custom for militia purposes,
there must have been 500,000. These were not, of course,
all able-bodied, and we have met with no calculation from
that period in which the attempt is made to determine the
proportion of able-bodied. Also an agricultural com
munity, such as the United States then was, could not
spare a large proportion of the adult male population for
a standing army, unless it was under some militia system,
allowing them to serve for limited periods at certain times
of the year. Yet, certainly, a nation struggling for its in
dependence might have put from one quarter to one third
of its adult males under arms, as the maximum number,
at a single period of greatest strain, before the mUitary
service could be said to be very heavy.
From all the statements made at the time, and from this
1 Doc, Hist, N, Y. i. 517, 2 Hamilton's Works, i. 158.
3 Ibid, iii, 95. 4 Galloway's Examination, 19.

Finances of the American Revolution.

147

general calculation, we are bound to infer that the United
States should have raised an army of 100,000 men before
the point of distress was approached.
In the Revolutionary army the numbers on paper were
very different from the numbers in the field. In Febru
ary, 1776, Washington wrote that, instead of 20,000 men,
he had not half that, all included.^ In July Reed wrote
that the strength of the army was exaggerated in every
way.^ In June General Greene wrote : " I can assure you
it is necessary to make great aUowances in the calculation
of our strength from the establishment, or else you will be
greatly deceived." And in July he wrote: "The whole
force we have does not amount to much above 9,000, if
any. . . . Congress has never furnished the number of men
voted by near one half, certainly by above a third." ^ This
was just at the time of the battle of Long Island, and the
preparation for it, when the English were obtaining a
foothold on the continent. The Adjutant-general's return
shows at that battle 7,389 men fit for duty.*
An official statement of the War Department in 1790
gives the following table, from which some indefinite re
duction must be made for the difference between the paper
returns and the facts:® —

No. of men in
Contin. pay.

Militia

Estimated militia
for a few months.

Quotas called for.

1775 • •

27.443

27,443

IO,l8o

1776

46,891
26,060
16,700
1777
34,820
10,100
23,800
75,760
1778
32.899
4.353
13,800
44,892
1779
27,699
5. 135
12,350
41,760
1780
21,015
5,811
16,250
41,760
1781
13,292
7,298
8.750
33.408
1782
14,256
3,75°
33.408
1 Reed's Reed, i, 157.
* Greene against Bancroft, 16, 20, 21.
* 5th Series Am. Archives, vii. 1119.
2 Ibid. 208.
5 Report of 1790, 26.
148 The Financier and the
It is certain that the military service never reached any
excessive or distressing demand upon the population. In
December, 1776, Washington had only about 3,000 sol
diers left. At Valley Forge he had only about 5,000. It
is very improbable that the number under arms at any one
time ever reached 40,000, and much more Ukely that it
never exceeded 30,000. If it is true that the colonies pro
vided 25,000 for the Seven Years War, when their population
was much under two million, the strain of the war of inde
pendence seems by comparison to have been very small.
Such statements as are met with in respect to the quality
of the rank and file of the army forbid us to believe that
it was recruited from the body of the independent class of
the population.! j(. ^^,^ made up of the social waste of
the period, which, in an agricultural community, is always
large in proportion to the total.
On the whole, ifwe compare the American war of inde
pendence with the struggle of the Dutch for independence,
or with that of the Southern States in 1861, the sacrifices
of the Revolutionary war must be considered trivial. It
was not on account of either exhaustion of their resources,
or general lack of means, or on account of the burden of
military duty, that the people were not able to meet the
financial demands which were made upon them.
The case was, as Hamilton expressed it with regard to
New York : " There is no doubt that the State might have
rendered more benefit to the common cause with less in
convenience to itself than by all its forced efforts ; but
there, as everywhere else, we have wanted experience and
knowledge ; " ^ and as Washington said : " The country
does not lack resources, but we the means of drawing
them forth.""
1 See vol, i, p. 306. ^ Hamilton's Works, viii, 64.
^ Washington, vii. 338.

Finances of the American Revolution.

149

CHAPTER XXV.

THE NOTES OF ROBERT MORRIS.

WE have not been able to find a specimen of any note
issued by Robert Morris, nor a citation anywhere
of the tenour of those notes. The foUowing is an attempt
to learn from the incidental mention of these notes, which
occurs in the printed record, what their character was.
In the Report of 1790 is given the following table,
under the heading " Receipts and Expenditures of Public
Moneys," " stated to show the annual or quarterly antici
pation on the revenue which was supplied by Mr. Morris's
notes issued on the public credit " : ^ —

Receipts,

Expenditures.

Balance in
treasury.

Anticipations.

Feb. 20 to Dec. 31, 1781

1,054,215

747,590

306,624

Quarter to Mar. 31, 1782

348,136

643,758

11,002

June 30,

436,208

467,824

20,613
Sept, 30,
767,497
965.524
218,640
Dec. 31,
i,393>9i8
1,555.638
380,360
Mar. 31, 1783
1,092,882
1,290,153
577,630
June 30,
774,725
1,021,709
824,614
" Sept, 30,
727,861
505,408
602,161
Dec. 31,
781,470
409,312
230,002
Mar, 31, 1784
164,838
118,505
183,670
June 30,
290,215
224,890
"8,345
Nov. I,
345.460
205,128
21,986
8,177,431
8,155.445
Balance in the treasury
21,986
8,177,431
1 An abbreviation of the last two columns of this table constitutes the
second column of the table on page 129.
150 The Financier and the
This table is a table of the receipts and expenditures;
and the deficiency, when there was one, is represented as
having been met by an issue of notes, caUed " Morris's
notes," but " issued on the public credit." How much are
these last words meant to affirm? Were they used with
care and set intention or not? The current receipts and
expenditures showed a surplus in this account in 1781,
although there was a large floating debt. What, then,
were the notes said to have been used in the Yorktown
campaign? According to the representation here, there
was a surplus at the beginning of 1782. It was cash, and
would consist of the paper and specie which were current
at that time. In the second quarter of 1782 there was a
deficiency, which we understand was met by printing notes
and paying them out to such an extent as was necessary to
supply current demands. When things turned better and
the deficiency decreased, it was by the in-payment of these
notes which could be destroyed, or of other currency with
which these notes could be bought. When a surplus ap
peared again, it must have consisted of other currency
again; but it would not be possible that so large an
amount of paper, put afloat in that way, could be brought
in to the la.st note. The table is not, strictly speaking, an
account of the outstanding notes. It is an account of the
cash on hand or wanting.
Chastellux's translator saj'-s : " On the strength of his
office as Financier-general he [Morris] circulated his own
notes of Robert Morris as cash throughout the continent,
and even had the address to get some Assemblies, that of
Virginia in particular, to pass Acts to make them current
in payment of taxes. What purchases of tobacco, what
profits of every kind, might not a man of Mr, Morris's
abilities make with such powerful advantages ?" ^ It can
^ Chastellux, i. 200, note.

Finances of the American Revolution. 151
hardly be understood that he refers to notes bearing the
signature of Robert Morris as Superintendent of Finance,
and issued as evidences of indebtedness of the United
States. Upon the authority of a person who was a clerk
of Morris, it is stated that his private notes were called
" Long Bobs " and " Short Bobs," according to the periods
of their maturity.-^ We infer, therefore, that they were
post notes or " anticipations," as he called them, having
different lengths of time to run. When Washington was
preparing for the Yorktown expedition, a supply of guns
and munitions is said to have been obtained for him by
Morris's notes to the amount of ^1,400,000.^ We have
not been able to find proof of an issue so large as that at
any time in any kind of notes ; but if the statement is cor
rect with regard to the character of the paper, we must
suppose that the notes were signed by Morris in his public
and not in his private capacity. We note that this was
in August, 1 78 1. The report made by Morris of the
issues of the notes on the credit of the United States in
November, 1783, began no further back than Decem
ber 26, 1782.3
In May, 1782, Timothy Pickering wrote to Washington
with regard to the purchase of ox-teams with which he
had been charged : " The sum I received for those pur
chases was in Mr. Morris's notes, and amounted only to
about three fifths of the sum requisite for that service ;
and whether any purchases could be made with them at
the eastward was a matter of uncertainty, from which no
information from my deputies there has relieved me. But
if they have succeeded, it is in such a way as forbids the
Financier giving any more of them ; for these notes are not
received there as cash, but only as pledges, which are
1 Phelps and Gorham Purchase, 242. ^ gee vol. i. p. 308.
3 See pages 107, no.

152 The Financier and the
bought up by speculators who make a run upon the funds
assigned for their redemption." ^
On the 8th of July, 1782, Comfort Sands wrote to Ham
ilton, who was the Receiver of continental taxes in New
York, that he was buying flour with drafts on Philadel
phia; that the farmers would not take bank-notes.^
In July, 1782, General Greene wrote to Governor Har
rison of Virginia: " Nothing has given me more pain than
the opposition I hear was given in your House of Assem
bly to the plans of the Financier to give credit to public
measures with the people. Upon what principle the cir
culation of his notes was opposed, I cannot imagine." ^
In October, however, he wrote again: "It affords me
the highest satisfaction to hear Mr. Morris's notes are in
such demand with you, as I consider the business of
finance the first object of the consideration of the United
States, and their establishment inseparably connected
with it."*
In the accounts we find an entry, February 11, 1782, of
a payment to Hall and Sellers for printing " Cash Notes ; "
and December 16, a payment to Mark Wilcox for " Sub
sistence Paper."
March 2, 1782, Livingston wrote that taxes were being
collected in notes of the bank. Whether this remark is
entitled to any special weight, it is impossible to say. It
is not probable that he meant to testify, of his own knowl
edge, on a controverted point, that that was the currency
in which taxes were paid and in no other.®
The agent of Morris with the Southern army said that he
had specie with which to redeem Morris's " notes or those
1 Letters to Washington, iii, 512.
2 State Dep. MSS., Hamilton Papers, xix. 33.
5 Va. Papers, iii. 23c. < Ibid, 354.
^ Dip, Corr. Rev. viii. 329.

Finances of the American Revolution. 153

of his bank." ^ This again is evidently inaccurate. Mor
ris never had any responsibility for redeeming the notes
of the bank, and surely never provided for it. What weight
then can be given to the rest ofthe statement?
September 11, 1782, the contractors for the Northern'
army wrote to Morris a long memorial. The sub-con
tractors will hold them liable for the difference between
specie and Morris's notes. The receivers do not receive
money from taxes in sufficient amount to pay Morris's
drafts. Those drafts are given out to quartermasters and
commissaries as well as to contractors, and are paid out
by the former below par. When the writers made their
contract, they placed more dependence on Morris's per
sonal than on his official character. They throw up their
contract unless they can have monthly payments in specie
or a guarantee against loss.^
In his bank speech of 1786 Morris said that he had been
obliged to indorse notes given to contractors before they
could get them discounted.'
October 5, 1782, Morris wrote to Hamilton that his
notes, when first issued, depreciated ten to fifteen per cent
in the Eastern States. If he had not stopped issuance in
that quarter, they would have totally lost credit, at least
for a time. From, his mode of speaking here, as' well as
from the passage in Pickering's letter just quoted, we get
the impression that the notes he is speaking of had been
issued shortly before the time of writing (perhaps in the
spring of 1782), and not that they were notes which he had
i.ssued from the time of taking office, a year before. The
following passage from the same letter shows that the
notes were receivable for taxes : " Whatever fine, plausi-
* Johnson's Greene, ii. 371.
2 State Dep. MSS. 137, i. 834, See page 62.
8 Carey's Debates, 50.

154 The Financier and the

ble speeches may be made on this subject, the farmers
will not give full credit to money merely because it wiU
pay taxes, for that is an object they are not very violently
devoted to ; but that money that goes freely at the store
and the tavern will be sought after as greedily as those
things which the store and the tavern contain."
These notes were given to the contractors for the supply
of the army, and they were to be redeemed by the receiv
ers of taxes. The contractors presented them forjedemp-
tion at once ; in regard to which Morris writes : " This I
expected, because much of that paper is not fit for other
purposes. Some of it, however, which is payable to the
bearer, is calculated for circulation, which you observe is
not so general as otherwise it might have been by reason
of the largeness of the sums expressed in the note." The
motive of this paper was to provide currency for the pay
ment of taxes to those who complained, though wrongly,
that there was not currency enough, and therefore that
taxation was unduly oppressive. Moreover there was a
disUke of paper to be overcome. He prefers that his
notes should be confined to merchants and large dealers.
If they can use them for remittance, they will change them
for other people. People do not generaUy trade for as
large sums as ^20. There is less danger of counterfeiting
in the case of large notes used only by merchants.^
October 9, Hamilton wrote to Morris that he had re
ceived Morris's bills on Swanwick in favour of Sands &
Co., half of them due in the next February. Sands ex
changed them with the county treasurers for specie [that
is, made the exchange of Morris's drafts for specie in the
hands of the county treasurers before it had been paid
over to Hamilton, and the Treasurer paid the taxes which
had been collected in the Morris paper]. Hamilton tries
1 State Dep. MSS,, Hamilton Papers, xxii. 173.

Finances of the American Revolution. 155
to discourage this. He fears that people will discount
Morris's biUs and notes with the treasurers, and hurt the
credit of them. Bank notes pass as cash, " with a mani
fest preference to your notes." ^
It seems to have been expected that these notes and
drafts, although only payable after a certain number of
months, could circulate at par with specie. Hamilton
wondered that Morris did not issue his notes for smaller
sums, but he acknowledged the force of the reasons given
by Morris in his letter of October 5.^ From that letter we
infer that the lowest denomination of these notes .or drafts
was ^20.
When the Board of Treasury, in 1787, made contracts
for supplying the army, they proposed a form of note in
which payments should be made to the contractors, as
follows : " Out of any moneys in your hands arising from
requisitions of the United States in Congress assembled,
passed previous to the first day of September last, pay to
A. B. or bearer the sum of specie dollars." Signed
by the Board of Treasury and directed to the Receiver of
taxes in some State. The Receivers were to take these at
par. The contractors were to have five per cent allowance
on all these notes, and six per cent interest for a year from
the date ofthe note, the return ofthe Receivers to be the
evidence of the negotiation.^ We may infer that Morris's
"drafts" in favour ofthe contractors in 1782 were of this
general character; but there appear to have been notes
besides, payable at a fixed limit of time, and each for a
definite sum.
According to the report of a committee of Congress on
the Department of Finance, June 17, 1783, the expenses of
1 State Dep. MSS,, Hamilton Papers, i. 130.
2 Ibid., Hamilton Papers, xix. 37.
8 Ibid., Reports of the Board of Treasury, 140, ii. 371.

156 The Financier and the
the department exceeded its income, in 1782, by ^404,713,
which was supplied by Morris's notes.
In the summer of 1783 the United States notes, as they
are called, were forged. Morris wrote to the governors,
giving notice of this. " It happens weU," he says, " that
the true notes are struck upon paper made on purpose,
and contain, in water mark, ' United States National Debt.'"
He speaks of them as " these anticipations, which form our
only support." These forgeries were committed at New
York by a man from Massachusetts, named William May,
who had been arrested with six others, against whom he
informed, by the aid of Sir Guy Carleton. They had made
preparations for counterfeiting notes of the different States.
Nothing here shows whether these were the so-caUed Mor
ris's notes or treasury notes, to be distinguished from them ;
but the Virginia delegates in Congress, reporting to the
Governor the affair of the forgery, say that the men were
arrested " on suspicion of forging the notes issued by the
Superintendent of Finance." ^ Forgeries were also com
mitted on the " United States notes " in Virginia.^
These notes were used as remittances. Rubsamen writes
to Bland, in August, 1782, that if money can be got, it
should be sent in Morris's notes, as the State Treasurer
takes those for taxes.^ Another case where they are used
as a remittance occurs in April, 1783.* In December, 1782,
Hamilton, applying to the Governor of New York for a
remittance on his salary as member of Congress, asks for
Morris's notes, if they have not more than a fortnight to
run. He would like them s*-ill better if they were due.®
Here again we see that these notes were post notes or ex
chequer bills, not bearing interest, so that they would be
worth par at their maturity.
1 Va. Paper.s, iii, 512, 515. 2 jbid. 519,
8 Bland Papers, ii. 91. * Ibid. 97. * Hamilton's Works, viii, 92.

Finances of the American Revolution. 157

In the spring of 1783, when Morris agreed to issue notes
for the payment of the army, we find mention in his diary
which shows that the paper on which his notes were printed
was of a special kind. In May he was trying to hasten the
manufacture of this paper. There was a special mould for
it, which was marked " U. S.," which he kept with care ;
and he speaks of intrusting it to Dudley, with a written
commission to supervise the making of the paper, and to
take precautions that none of it should fall into other
hands. This Dudley was the expert coiner whom Morris
hoped to employ if Congress should pass a law for the
mint.^ In September, 1783, A. Lee moved for a return of aU
notes issued by Morris on the credit ofthe United States.
Morris replied by a table of " Subsistence Notes," begin
ning in December, 1782, and coming down to October,
1783. The grand total is only ^163,720.2 We do not find
notice of any cavil or objection by Lee, and he would have
made cavil if he could. How is this return to be under
stood in connection with the table at the head of this
chapter? Wain says that, besides the notes of the Bank of North
America, Morris issued his own notes, being treasury
notes, payable out of the revenues of the United States
and foreign subsidies.^ The notes of the Bank of North
America cannot have borne the name of Morris at all, as
he never was an officer of the bank, nor connected with it
otherwise than as a stockholder and borrower, either in his
public or private capacity. Wain says that he set up " a
kind of private bank," under the care of Mr. John Swan
wick, to bolster up his first emission of notes. Swanwick
had all the specie which could be borrowed from all his
1 See page 43; Hist. Mag. for Jan, 1867. ^ See page no.
3 Wain, 301.

158 The Financier and the
and Morris's friends set out in piles, where it could be seen.
With this he redeemed the notes, and so produced a credit
which brought the silver in again on deposit. Then it was
returned to its owners.^ There is an entry in the accounts,
under date of June 30, 1784, of $225, expenses of the office
of John Swanwick, " an appendage ofthe finance office." ^
That bureau was therefore in operation in 1783-84.
Morris wrote to Tilghman, April 30, 1784, that he was
easy about all his private and public notes?
Still there were notes of Morris's outstanding, when he
left the treasury, which carried his personal responsibility ;
and in his advertisement of October 11, 1784, he pledged
'\\\-a\s€\.{ personally to the holders that the notes should be
paid at maturity.^ There seems good reason to believe
that these notes, perhaps to an important amount, con
tinued in circulation.
In the foUowing March the money market became very
stringent at Philadelphia. Morris wrote to Tilghman at
Baltimore, with whom he had business relations, that there
were big shipments of money, and that the managers of
the Bank of North America seemed inclined to stop dis
count ; also that the attack on the bank had caused it to
curtail discounts. In April he wrote that discounts had
been stopped at Boston, Philadelphia, and New York.®
April 19, he wrote again to the same correspondent that
he had a contract with the Farmers-general to provide
tobacco. He thinks that raw adventurers have kept up
the price of tobacco. He has a scheme to bear exchange,
and so to prevent shipments of that commodity by remit
ters. The Farmers-general will not buy in Europe. He
has prepared notes, with which he hopes to pay for tobacco
1 Wain, 274.
2 Cf. the story about the Bank of North America, page 34,
8 Ford MSS. * Dip. Corr. Rev. xii, 502. ^ pord MSS.

Finances of the American Revolution. 159
better than he could do so with coin. The notes are to be
payable on demand in coin, or in sixty-day biUs on Europe.
The first thing to do is to give the notes a circulation. He
will deposit money with Tilghman in order that he may
redeem the notes, and wiU sell bills against gold for the
current rates. Tilghman is to indorse the notes in blank,
which wiU make them payable to bearer. The paper is to
be manufactured for the purpose. The word " Commerce"
is to be water-lined in it.
We therefore find that when he left office, in November,
1784, he had notes outstanding which in some way involved
his personal credit, and that in April following he began
to issue notes for his tobacco enterprise. It seems impos
sible to resist the conviction that he passed over from one
of these issues to the other without any break ; and if that
is true, or if he could immediately float notes of his own, it
seems that the notes issued by him while in office must
some of them have been his personal notes, and not those
of the Superintendent of Finance.
In a letter of January 19, 1786, we find the fuUest ex
planation of what these later notes were, for he seems to be
reorganizing the system of them. There are two kinds of
them, as before, and Tilghman is to have money with which
to redeem them, if people want it. He reissued them.
The denominations mentioned are ^100, ^40, ^20, ^16, ;^I5,
;^io, and $8. Morris drew promissory notes in favour of
Tilghman, who endorsed them in blank. Notes redeem
able in bills were to pass at " not less than five per cent
advance." Virginia passed an act to prevent the circula
tion of private bank notes, and Maryland was considering
the same plan. Thereupon, February 4, Morris wrote to his
correspondent Tilghman : " I am unwiUing to place myself
in opposition to the laws of any country ; and as I imagine
these measures are levelled at me, I will be beforehand

l6o The Financier atid the
with them, and therefore request that you will not pass any
of the notes you have by you, but send me an exact
amount of them, and perhaps, after I have seen the Vir
ginia law, I may order the whole to be returned to me.
At any rate, you shall then hear from me fully respecting
them." On the 15th, however, he wrote again that, on re
flection, he did not see how the law could hinder him
from giving his note to any one who would take it, and
that he would go on using notes. July 9th was written the
last letter which we possess in this series. Tilghman was
dead, and a new firm was to be formed. Morris's notes
are referred to as out and to be out.^
In 1796 "bills" or "notes" of Morris were mentioned
as selling at a very low rate. Could these have been still
some kind of circulating notes? ^
The latest mention we have found of the use of Morris's
notes as a remittance is from Virginia, April 23, 1787.^
The results of this investigation as to the kind and char
acter of the notes issued bearing Morris's name are ex
tremely unsatisfactory. It seems probable that he issued
two kinds of paper. One of them, probably the earlier,
which he began to issue in 1781, were certificates of in
debtedness for irregular amounts, signed by the Superin
tendent of Finance, and binding the United States, not
himself The other kind he was probably led to issue later.
In the state of public credit, his endorsement would add to
the value of a note issued by the United States. The notes,
if manufactured for regular and round sums, would have
great advantages for purposes of circulation. The same
would be true if they were made to fall due at a date. We
still find it difficult to understand, however, in what way
or to what extent he put his own name and credit into
them. 1 These letters to Tilghman are all in the Ford Collection.
2 See pages 229, 282. 8 Va. Papers, iv. 273.

Finances of the American Revolution. i6i
The extreme difficulty of finding a specimen of any of
Morris's notes of the period of the Revolution is a proof
that they were all redeemed. Still they could not escape
the accidents to which all paper issues are liable, and it is
to be hoped that if attention is directed to the matter, a
specimen may be found.
It seems very clear that Morris was seduced into the
issue of notes in 1785 for the purchase of tobacco by the
experience which he had had as a public financier. It
must have given him a great sense of personal power and
prestige to find that Robert Morris was really a greater
personage than the Superintendent of Finance, and the
suggestion lay near at hand : If he could circulate his per
sonal notes for the purposes of the United States govern
ment, why should he not circulate them for the purposes
_of Robert Morris? If he controlled the commerce in the
most important export staple of the United States as Su
perintendent of Finance, in order to win profits for the
United States, why should he not do it likewise to win
profits for Robert Morris? If he had demeaned himself
as Superintendent of Finance to the vulgar devices of
paper-mongering and bill-kiting, why should he not do it
for Robert Morris? We have seen ample evidence that he
was a sanguine, enterprising, and energetic man. The
species of flattery to which he had been subjected for
years, when he was told that he was the one man in Amer
ica whb understood the mysteries of finance, was calculated
to turn his head. It is sad to believe that the services he
rendered his country should have had such a disastrous
moral reaction upon himself, but it seems to be forced
upon us as the most reasonable explanation of his career.
VOL. II. — II

l62 The Financier and the

CHAPTER XXVI.
morris's business enterprises AND LAWSUITS, 1783-1793.
"XT THEN Morris obtained leave of absence from Con-
' ^ gress in November, 1778, he said that the house of
Willing and Morris was about to be dissolved. In a letter
to Jay, President of Congress, January 28, 1779, he speaks
of the late house of Willing and Morris.^ In a letter to
Tilghman, September 15, 1783, he announces the death of
Mr. Inglis. The house of WiUing, Inglis, and Morris
seems to have lasted from 1778 to 1783. In the same
letter he says that Swanwick has been taken in, and the
firm is to be Willing, Morris, and Swanwick.^ In Apple-
ton's Encyclopedia of Biography, it is stated that the
firm of Willing and Morris was dissolved in 1793. In
his "Account" of his own property, Morris stated his
partnership account with Thomas Willing as still open.
There had been no settlement for years. It appears
that there were debts due to the firm which they could
not settle.
Wain says that Morris despatched the ship " Empress,"
Captain Greene, from New York to Canton in 1784, "the
first American vessel that ever appeared there, — and that
he made the first attempt to effect an out of season pas
sage to China by going around the southern cape of New
Holland, so as to avoid the adverse winds of that period in
1 State Dep, MSS. 137, App, 245.
2 Ford Collection.

Finances of the American Revolution. 163
the China Sea.-^ In a letter to Tilghman, June 28, 1785,
Morris says that he is going to try the China trade.
Holker was, according to Chastellux's translator, the
son of an Englishman who was implicated in the rebellion
of 1745, but escaped from prison and fled to France, where
he was induced by the French court to establish the cotton
manufacture. He busied himself very early with contracts,
etc., for America.^ He came to America with Deane, and
with a verbal commission to report on the state of things in
America.^ On the 21st of June, 1778, the Committee of
Foreign Affairs asked the Commissioners at Paris to find
out what Holker's status and authority were. The answer
was that he had nothing beyond a verbal authorization to
report any information which would be useful. He was,
however, afterward made Consul-general of France in
America. Chastellux's translator asserts that " by means
of his situation as consul, he had many opportunities of
shipping flour, etc. under permission, for the French fleet,
in the time of a general and strict embargo. He specu
lated largely too in paper money, with which he purchased
for almost nothing a very handsome house at Philadelphia,
and an elegant country house and estate a few miles from
that city. . . . He had a difference with Mr. Morris
(Robert, his partner), on settling their accounts, to a very
large amount, which has detained him in America since
the peace."*
In a letter to Tilghman, April 30, 1784, Morris com
plains that Holker has treated him ill. They have a quar
rel about the depreciation of continental money. Morris
has in consequence withdrawn from TurnbuU, Marmie, &
Co., and has insisted that Holker shall withdraw from Har
rison, Jr., & Co., of Richmond. He wiU not deal with any
1 Wain, 368. '^ Stevens, 162, etc., in 1777,
' Ford's W. Lee, 352. * Chastellux, i. 318-320, note.

164 The Finaficier and the
one who has acted so. AprU 5, 1785, he writes, in connec
tion with the attack on the bank and the suspension of
discounting by the bank: "The party malevolence has
been aimed at me personally, in one 'of their laws calcu
lated to give Holker an unjust advantage over me." This
refers to an act of the Pennsylvania Assembly, April i,
1785, entitled " An Act to enable the agent or agents of
His Most Christian Majesty to sue for and recover in a
more speedy way any debt or demand that may be due to
them in this State." It provided for a trial " without the
usual delay or imparlances." Fourteen members signed a
protest against it because it was unconstitutional, was
aimed at an individual, and was passed at the request of
the French Minister, although he made no aUegation that
justice was likely to be defeated or delayed.^
In July Morris writes that the suit of Wharton v. Wil
ling, IngUs, and Morris has been decided. For some
reason the plaintiff did not use the law which had been
passed in his favour. Morris exulted in the decision in
that case as a victory over Holker's lawyer, although
Holker does not appear as a party in the suit.
The suit of Wharton and others against Morris and
others is in i Dallas, 124. WiUing, Morris, and Inglis
gave a guarantee of a contract of Pleasants, Shore, & Co.,
of Virginia, to buy tobacco ofthe plaintiff, in March, 1778.
The bond was payable September 30, 1782, in " lawful cur
rent money of Pennsylvania." The question was as to the
depreciation. Judge McKean said that he did not know
what " lawful current money of Pennsylvania " was, be
cause the Legislature had defined none, but that Congress
had made the continental paper lawful and current for the
whole country. Therefore the contract must be referred
to that currency, to be reduced by the jury to gold or
1 Ninth Assembly, 269.

Finances of the American Revolution. 165
silver at the scale of depreciation, or that they might
find for the value of the tobacco, with interest from the
day of sale. They adopted the latter course, and found
£1,600 damages, with sixpence costs. The plaintiff
had demanded ;^I2,000 Pennsylvania currency, in hard
money, with interest. The decision adopted the pro
positions in regard to depreciation which Morris had
made. In October, 1785, Morris wrote that the suit brought
against him by Holker in the name of the King of France
had been decided in Morris's favour. He now wants to
settle with Holker.
In the "Account" of 1800 Morris makes this entry:
" Joseph Fauchet, minister of France ; the balance of
this account is ^49,822, 33, It is due by Mr. Nichol
son and me jointly to the French Republic. Notes were
given for it, and judgment has been obtained. We often
lamented our inability to satisfy this debt, and that its
amount had not been retained in France out of the cargoes
we sent thither."
There is a letter from Morris to Nicholson in the Ford
CoUection, dated December 17, 1797, in which he men
tions a suit between himself and the French Republic.
We have not been able to find any record of such a suit,
or of the suit with Holker.
In January, 1786, Holker closed with a proposition
which Morris had made to him eighteen months before,
and the proposition was sent to a referee appointed by the
court. In April Morris was .still so occupied with this
affair with Holker that he could not go to Baltimore, al
though his correspondent and partner there. Tench Tilgh
man, was dead.^
Holker remained in America, married there, and died
- 1 These letters to Tilghman are all in the Ford Collection.

1 66 The Financier and the
in Virginia in 1822. ^ In his "Account" of his prop
erty, Morris says of him : " This gentleman took it into
his head, after I had rendered him very essential and
faithful services, that he could recover large sums of
money of me, under pretence of depreciation of con
tinental money, etc., and after contests in the law and
arbitration, protracted by his obstinacy for several years,
an award was finaUy given in my favour for ;^i,570 12s.
i\d. Pennsylvania currency, for which judgment was given
me against him, which judgment I have since assigned to
Thomas Fitzsimmons, Esq., who is to credit what he has
received or may receive from this source in deduction of
his claim on me."
Some letters of Carter Braxton were intercepted in
1778, published at New York, and again in the " Penn
sylvania Packet" of March 18, 1779.- They were written
to John Ross. Carter Braxton, Robert Morris, and Sam
uel Beall of Williamsburg, Virginia, are mentioned as part
ners. The commodity in which they are interested is
tobacco, which it is said has not risen as other things
have. We find Morris writing from Richmond, June 10,
1786, in reference to a suit of Carter Braxton against him
self, complaining that he is kept in Richmond by Braxton's
neglect to file papers. Braxton claimed that his answer
was filed, and charged that Morris had wronged him.^
We have a few domestic letters of Morris to his wife
while he was in Virginia in 1787 and 1788.* He seems to
¦ imply that Gouvemeur Morris was there with him.
We learn the facts of the business relations of Braxton
and Morris and of their quarrel from a report of the case
in 1795.
There was an agreement between Carter Braxton on the
1 Boogher, March, 1883, 2 ggg vol, i, p, 129,
2 Hist, Mag., November, i868, * Penn, Mag. ii. 170.

Finances of the American Revolution. 167
one hand, and Willing, Morris, & Co., on the other, dated
March 9, 1785. Distinct accounts were to be made out by
date, and a tobacco account was to be made out showing
purchases and sales and investments of money or other
property in tobacco. As to the depreciation, it was stipu
lated that when moneys were paid or received for any of
the parties in Virginia, the Virginia scale was to be used,
and in like manner as to any other scale. When bills were
drawn between Virginia and Pennsylvania, if the bill was
for moneys of the drawer, in the hands of the drawee, the
depreciation should be estimated at the time when the bill
was paid ; but when bills were drawn to raise money for
the use of the drawer, he not having moneys in the hands
of the drawee, the depreciation should be estimated at the
time when the bill was drawn. " But a reasonable allow
ance of time shall be made for the investiture of money
according to the circumstances of the case." Robert Mor
ris was to stand charged on the ist of January, 1780, with
half of what Braxton then owed to Webb & Co. for mili
tary stores bought of them, in whicii adventure Morris
agreed to be one half concerned. The commissioners to
settle all these accounts closed the account of Braxton with
Willing, Morris, & Co. and carried the balance into the
account of Robert Morris. There were, however, several
matters left unsettled. Braxton had a claim against Mor
ris for half the purchase money and charges of an estate in
England, which Braxton had undertaken to buy, but to
which he had not obtained a complete title.
Braxton took a long list of exceptions, and obtained a
decree in the county court, from which WiUing, Morris, &
Co. appealed to the High Court of Chancery. This court,
after hearing statements from the Commissioner, in 1793,
reversed the decree of the county court, and ordered Brax
ton to pay Morris £,g,62j, giving orders, however, how

1 68 The Financier and the
certain matters yet pending should be reckoned and de
cided. Braxton appealed to the Court of Appeals, where
the case came on in 1795. This court went over the
points in Braxton's exceptions to the report of the Com
missioner, allowing some and disallowing others, and giv
ing orders for the treatment of still others, and remanded
the case to the Court of Chancery to have the proper
inquiries made and proceedings executed, according to the
principles now laid down. As this put the whole case
back to its beginning, it is safe to assume that it was all
lost in the flood of Morris's bankruptcy. Aniong the rest,
however, it is worth noticing that the Court of Appeals
disagreed with the Court of Chancery as to the applica
tion of depreciation, and ordered two different scales of
depreciation to be applied to two items which the other
court had paired together.^
Morris's note on this matter in iSoowas: " Carter Brax
ton : After a lawsuit of twelve years, I got judgment for
upward of ^20,000, Virginia money, although he, like
Holker, claimed a large sum from me, and tried hard
to get it, by pretence of depreciation, etc. He died
insolvent." ^
Morris seems to have been led by the transactions in
tobacco which he made on behalf of the United States to
a determination to enter into that commerce on his own
account. Therefore, about a year before his resignation,
he made a contract to provide the Farmers-general of
France with tobacco. According to the statement of the
matter which is given in the report of the subsequent law
suit, however, the first overtures were made to Robert
Morris, in 1783, by the Farmers-general of France, for a
contract for tobacco. Delicacy prevented him from pur
suing the subject, because he received information that
1 Call's Reports, iv, 288. 2 Account of Property, 63.

Finances of the American Revolution. 169
Jonathan Williams and his father-in-law, William Alex
ander, had made such a contract with the same persons.
This information was not correct to its full extent, but it
led Morris to associate himself with Williams and Alex
ander in a contract to deliver fifteen thousand hogsheads
per annum for three years. Morris joined the partnership
in March, 1784. He was to have one third of the gain or
bear one third of the loss, but have nothing for labour or
services. He now made a new contract with Le Normand,
Receiver-general of the finances of France, to deliver
sixty thousand hogsheads of tobacco in the years 1785,
1786, and 1787. He was to receive thirty-six livres per
hundred weight, which was to be paid to the bankers Le
Couteulx, two livres per hundred weight being retained up
to the reimbursement of a million livres, which were to be
advanced to Morris immediately.-'
The full text of the contract is given elsewhere,^ from
which we learn that the Farmers-general also promised to
make no purchases in America, and undertook to pay all
taxes either of export or import.
Sometime during 1785 a loss was sustained on a ship
ment of two thousand hogsheads, on account of the high
price in Virginia. On account of this, Le Normand allowed
Morris an option of shipping twenty thousand hogsheads
more than the sixty thousand within the three years.
July 6, 1786, Morris and Alexander entered into a new
agreement, under which Morris took the position of prin
cipal and Alexander that of agent, to whom Morris al
lowed, for his abilities in the conduct of the business, a
dollar per hogshead for every hogshead which had been
or should be shipped to France, in consequence of the con
tract. He also allowed him two and a half per cent on all
tobacco purchased and not sent to France. Morris did not
1 Call's Rep. iii. 79. 2 Djp. Corr. U, S, iii, 64.

170 The Financier and the
exercise his option upon the twenty thousand hogsheads.
The sixty thousand were shipped by the end of 1787. Mor
ris tried to have the option extended into 1788, but did not
succeed. The business is spoken of as having been carried
on almost entirely by " facUities " and not by specie. " In
the few instances where specie was required and sent for,
it was furnished. The detention of the messengers a few
days only proves the difficulty of procuring, and Morris's
anxiety to furnish, the specie. . . . The true cause of dis
appointment appears in Alexander's letters to have been
at first the high price of tobacco, and afterward the scar
city of that commodity, of which his strong expressions,
that it could not be procured by the aid of the best funds
of heaven and earth, are the most conclusive evidence." ^
From the very first this contract produced a clamour in
Virginia, for which there was perhaps some justification.
Writing to Tilghman, April 20, 1784, Morris says : " I can
not help smiling at the idea of a remonstrance against
Alexander's contract. To whom is it to be addressed? To
the Farmers-general? they are interested to support it.
If to the King, he must support the Farmers, for they
support him. If to the tobacco-planters, they will seU to
those who want to buy and can pay. It will not do." In
September he asked Tilghman to have a cargo of samples
prepared, to be sent to France. He had hopes of a big
contract for annual supplies.^ In January, 1786, Morris
writes to Tilghman that complaints have come back of the
quality ofthe tobacco. This hurts Morris, both in pocket
and reputation. In February there were complaints in
Virginia ofthe low price of tobacco. " Some think this is
owing to a contract with the Farmers-general, the fulfil
ment of which, we are told, rests with Robert Morris." ^
1 Call's Rep, iii. 79. 2 pord Collection.
' Jones's Letters, 148.

Finances of the American Revolution. 171

Jefferson wrote to the Governor of Virginia from Paris,
in January of that year : " I have duly received the propo
sitions of Messrs. Ross, Pleasants, & Co. for furnishing
tobacco to the Farmers-general, but Mr. Morris had in the
mean time obtained the contract. I have been fully sensi
ble of the baneful influence on the commerce of France
and America which this double monopoly wiU have. I
have struck at its root here, and spared no pains to have
the farm itself demolished, but it has been in vain. The
persons interested in it are too powerful to be opposed, even
by the interests of the whole country." ^
In May Jefferson wrote to Jay that there was great com
plaint of the monopoly of tobacco in the farm. Jefferson
was trying to get it abolished, and a committee had been
formed by the French government to consider the case.
Jefferson calls it the double monopoly, — one of the pur
chase in America in the hands of Morris, the other of the
sale in France. The committee resolved that the contract
with Morris could not be annuUed, but no similar one
should be made thereafter. While it lasted the Farmers
should be obliged to buy twelve or fifteen thousand hogs
heads in a year, besides what they buy of Morris, on the
same terms as his contract.^
In July Jefferson wrote to Adams : " The monopoly of
the purchase of tobacco for this country [France] which
had been obtained by Robert Morris, had thrown the com
merce of that article into agony. He had been able to
reduce the price in America from forty shillings tC twenty-
two shillings and sixpence lawful a hundred weight; and
all other merchants being deprived of that medium of re
mittance, the commerce between America and this country,
so far as it depended on that article, which was very cap
itally, too, was absolutely ceasing. An order has been
1 Va. Papers, iv. 84. = Dip. Corr. U. S. iii. 61, 69.

172 The Financier and the
issued obliging the Farmers-general to purchase from such
other merchants as shall offer, fifteen thousand hogsheads
of tobacco at thirty-four, thirty-six, and thirty-eight livres
the hundred, according to the quality, and to grant to the
sellers in other respects the same terms as they have' granted
to Robert Morris. As the agreement with Morris is the
basis of this order, I send you two copies of it, which I
will thank you to give to any American (not British) mer
chants in London who may be in that line. During the year
this contract has subsisted, Virginia and Maryland have lost
;^ 400,000 by the reduction of the price of their tobacco." •'•
We have seen above that the tobacco enterprise was not
a success, because the price rose and the article became
exceedingly scarce. Here, now, Morris is charged with
depressing the price. What was the fact? Did tobacco
rise or fall?
According to the quotations of Virginia tobacco in the
official record, the price in May, 1784, ranged from thirty-
eight to twenty-four shillings. In January, 1787, it was
from twenty-three to eighteen, and in December, 1789, it
was from twenty to thirteen and a half ^
These quotations would seem to indicate that there was
a great and steady decline in tobacco which went on stead
ily after the time when Morris was said to have interfered
with it. Gouvemeur Morris said that Morris's tobacco
contract was the only means of destroying the monopoly
of tobacco in Virginia, which was in fact held by the Scotch
factors.^ In 1789 there were great complaints of the
quality of the tobacco sent by Robert Morris. The Farm
ers-general were so dissatisfied that a suit at law resulted.*
In explanation, then, of the fact that Morris did not
make profits on his tobacco contract although the price
1 Adams, viii. 409. 2 Va. Papers, iii, 589 ; iv. 229; v, 94.
8 Morris's Morris, i, 352, ^ Ibid, 89, 92.

Finances of the American Revolution. 173
fell, we think that it is necessary to recur to the fact that
he issued notes,"6r, as the court called them, "facilities; "
and that, by the plan of those notes, he involved himself in
speculations on the exchange, and in attempts to control
the exchange.' It was another of the miserable delusions
in which his experience as Financier had educated him, to
believe that he had power to do this. His enterprise was
a singular anticipation of the cotton speculation of Nicholas
Biddle. In his letters to Tilghman we find some traces of
his difficulties. April 19, 1785, he wrote that he would
exchange his notes for bills of exchange at i66f, which he
calls par,^ although they were sixty-day bills. He expects
to win on the price -of tobacco what he loses on exchange.
He will sell bills for gold only, at the current rates, — 1762-
for ninety days, 177^ for sixty days, and 180 for thirty
days. June 29, he mentions that the bills with which he
redeemed his notes were drawn on Paris payable in Lon
don. He evidently hoped to control the great export, and
thereby to control exchange, and by holding his rate for
gold higher than for his own notes to put the latter at a
premium over specie in the purchase of tobacco. There
fore he writes in May : " The higher the exchange, the
more valuable my notes are."
In November he wrote that there was a great demand
on himfor bills. 'In February, 1786, he ordered Tilghman
to pay out specie notes and return to him notes redeemable
in bills of exchange. This was a retreat from the enter
prise so far as it involved control of the exchange.
The relations of Morris and Alexander were complicated
by the fact that in' March, 1786, Morris directed Alexander
to lend to Griffin money of Morris which he held, on a
security of certificates. On the 3d of May, 1788, Morris
wrote to Alexander that Griffin's debt was discharged, and
1 See page 157, 2 See page 37.

174 The Financier and the
he directed Alexander to surrender the collateral. This
Alexander did not do, alleging that he retained the certifi
cates to cover certain accrued or equitable charges which
he had against Morris. Thereupon proceedings ensued,
in which Morris was successful. The court rejected all of
Alexander's charges. In all, five suits grew out of these
transactions, in all of which, in the Virginia High Court of
Chancery, Morris was successful; but they were all ap
pealed, and being regarded as interwoven, or all parts of
one case, they were tried together before the Court of
Appeals in 1801, when the result below was substantially
reaffirmed.! In November, 1786, Knox, the Secretary of War, tried
to negotiate with Robert Morris and Jeremiah Wadsworth
a contract to supply the army. He submitted to the Board
of Treasury a contract which he thought they would agree
to. Wadsworth would not make the contract without con
ferring with Morris. The Board, therefore, submitted the
contract to Morris, subject to the approval of Congress.
To this he replied that the contract offered too much profit.
He is sorry that the United States must submit to such
hard terms, and he is afraid to accept them. " Experience
has taught me to be cautious, even in doing good." He
proposes that the United States shall reserve the right to
cancel the contract at any time if, on account of obtaining
money from the States, they shall be able to do better.
He will accept, if no one else can be found to undertake it.^
An account with him as " contractor," in 1785, appears on
the treasury books.^
In 1786 it is said that he offered to the State of Penn
sylvania to farm the excise in that State. He offered
1 Call's Reports, iii, 79. See further below, page 282.
2 State Dep. MSS., Reports of Board Treas. 140, ii, 343, 355.
^ See page 220.

Finances of the American Revolution. 175
;£^70,ooo per annum for it. There was a great prejudice
against the system of farming the revenue, and the propo
sition was rejected. The excise was sca4-cely collected at
all under the system in use.^
In 1789 Gouvemeur Morris went out to France as agent
and partner of Robert Morris. April i, 1789, he proposed
to Castries that he would furnish France with tobacco,
flour, rice, and provisions, to be paid for partly in money
and partly in the debt of the United States to France.^
Later in the year he did make a contract to import 30,000
barrels of flour from America. He said that everything
was falling to pieces in France, and subsistence was neces
sary first of all.^ He also disc-ussed grand operations with
Necker on the American debt. Necker wanted 10,000,000
livres a year for three years. Morris offered 300,000 a
month, to go on until 24,000,000 were paid.* He also
offered Necker as much French debt as would produce
1,600,000 francs, in return for the American debt, —
that being the interest overdue on the latter. Necker
wanted part in money, and the bargain was not made.®
These attempts to speculate on the debt fell through
in 1790, because it appeared that the Americans were
about to pay, which Necker said would be the best
way.^ In all these propositions, we must no doubt un
derstand that Gouvemeur Morris expected to carry them
out^with the assistance and co-operation of Robert
Morris. Morris had a large property on the Delaware, exactly
opposite Trenton, to which the name "Morrisville" was
given. The earliest mention of his ownership there which
we have found is in 1787; but the place was then well de
veloped. The conjecture offers itself that he may have
1 Findley, 30. 2 Morris's Morris, ii, 47. ^ Ibid. 197.
* Ibid. 206. 6 Ibid. 239. ' Ibid, 293.

176 The Financier and the
bought the property in connection with the earliest propo
sitions to erect the federal city near there.^
Manasseh Cutler mentions seeing at Morrisville, near
the falls of the Delaware, " several long buildings in the
form of barracks, occupied by nailmakers," in 1787.^ In
1794 Morris wrote to his son William, who was then in
London, directing him to visit a Mr. Wood, who is said to
be able to build a steam-engine. If he is competent to
do so, William Morris is to urge him to come to America,
and to advance him money, if necessary. An engine is
wanted at the Delaware works. William is to be cau
tious, lest he attract the notice of government.^ In a
letter to Nicholson, Morris mentions a man named Patter
son, who says that he can and will finish the steam-engine
for Morris. In the "Account" of his property Morris
mentions a quantity of materials intended for the steam-
engine. " John Patterson attempted to steal them ; and
on being recovered, I think they were sent to the buUding
erected for the steam-engine. Whether they have been
kept together in preservation or suffered to be lost, stolen,
or decayed to ruin, I do not know." In the same docu
ment he speaks very ill of Patterson, who, he says, com
mitted murder and then hanged himself
The Due de Liancourt gives a description of Morrisville.
Robert Morris owns the whole of it. He has iron works
there. He tried other manufactures, but they failed. If
he was not so absorbed in speculation, and if his affairs
were not so embarrassed, he could give more attention to
these things and make them pay.* In a schedule of the
property of the Pennsylvania Property Co., Morrisville is
described as containing twenty-five hundred acres. There
are fourteen farms, a grist-mUl, a slitting-mill, a roUing-miU,
1 See page 237, 2 Cutler's Cutler, i. 249.
* Mag, Amer. Hist. xiii. 580. * Liancourt, iii. 270, in 1795.

Finances of the American Revolution. 177
a wire-mill, a snuff-miU, a plaster-mill, an iron-forge, a saw
miU, and a brewery. There is also a fine dwelling-house
of Robert Morris, with outbuildings, and a stone-quarry.
It is estimated to be worth 1^250,000. In the "Account"
Morris says that it was subject to a first and second
mortgage, and was sold by the sheriff.

VOL, II. — 12

178 The Financier and the

CHAPTER XXVII.
THE BANK WAR OF 1785-1786.
WE have seen that specie came into the United States
in large amounts in 1780 and 1781 ;i but the State
issues of paper continued, and the notes of the Bank of
North America and Morris's notes were also filling the cir
culation. It was impossible that the specie and paper
could both be retained. Webster tells us that although
the public treasury was so distressed, there was abundance
of cash, and that bills on Europe were at from twenty
to forty per cent discount.^ Of course this produced
large importations of merchandise and exportation of
specie. According to the notions of the time this was a
great public calamity, and those who handled the specie
were held to blame for it, as if they had done a mischie
vous thing out of private greed. Webster thought that
an import duty on the merchandise would be a remedy;
and most people agreed with him.
On the return of peace there were great fluctuations and
much confusion, as the inevitable consequence of all the
follies and mishaps of the previous years. We may quote
a summary description of the state of things from Ham
ilton : ^ " The general devastation of personal property
occasioned by the late war naturally produced on the one
hand a great demand for money, and on the other a great
deficiency of it to answer the demand. Some injudicious
1 See vol. i. p. 99. 2 Webster, 267,
' Report on the United States Bank, December 13, 1790 : Folio State
Papers, Finance, i. 71.

Finances of the American Revolution. 179
laws which grew out of the public distresses, by impairing
confidence, and causing a part of the inadequate sum in the
country to be locked up, aggravated the evil. The dissi
pated habits contracted by many individuals during the war
which, after the peace, plunged them into expenses beyond
their income; the number of adventurers without capita!,
and in many instances without information, who at that
epoch rushed into trade, and were obliged to make any
sacrifices to support a transient credit; the employment
of considerable sums in speculation upon the public debt,
which from its unsettled state was incapable of becoming
itself a substitute, — all these circumstances concurring,
necessarily led to usurious borrowing, produced most of
the inconveniences and were the true causes of most of
the appearances which, where banks were established, have
been by some erroneously placed to their account ; a mis
take which they might easily have avoided by turning their
eyes toward places where there were none, and where,
nevertheless, the same evils would have been perceived to
exist, even in a greater degree than where those institutions
had obtained."
There certainly are points in this paragraph, where the
writer attempts to account for and criticise the situation,
which cannot be accepted as correct; but the situation
which he describes and the notions about the explanation
of it, were matters of the greatest public interest at the
time. We have seen above reason to believe that the
Revolutionary War did not bear with any great severity
on the people, and that the distress which was occasioned
was due to inexperience, perversity, and folly in adminis
tration ; but the social changes brought about by the war
were very great. All who had remained loyal to Great
Britain had suffered severely. Thousands of them had
been banished or had emigrated.

i8o The Findn'cier and the
On the other hand, whigs had suffered in the districts
which had been occupied by the English.^ Many persons
who had been in affluent circumstances before the war
were impoverished.^ On the other hand, large fortunes
had been made by privateering and what was called specu
lation.^ There had not, however, been any great destruc
tion of capital, and the destruction of capital which had
taken place had been very generally distributed over the
country. One State had had its period of distress as the
seat of war in one year, and another in another year.
Each thought that it had suffered the most, but it is re
markable how evenly the loss had been distributed.
There had certainly been no impoverishment of the
people, or exhaustion ofthe country; but there had been
great changes in the position of classes, and many indi
viduals had been either enriched or impoverished. These
changes, so far as they were bad, were chiefly due, not to
the war itself, but to the mistaken methods adopted for
carrying it on, and to the lack of method, of which we
have seen so much above. As early as 1777, John Adams
observed that prize cases and controversies had made the
barrister's profession more lucrative than ever before.*
Pelatiah Webster asserted, in 1785, that forty or fifty per
cent more could be obtained for labour and country pro-
1 Many whigs of Suffolk County, Long Island, who had abandoned their
farms, became involved in debt, and at the peace returned poor, " They
found their farms out of order, buildings dilapidated, fences gone, stock car
ried off, woodland cut off, churches deserted or torn down " (Onderdonk,
Suffolk, and Kings, no).
2 Mrs. Livingston wrote to Jay : " You can have no idea of the sufferings
of many who from affluence are reduced to the most abject poverty, and
others who die in obscurity " (Johnston's Jay, ii. 299).
3 Chastellux (ii, 246) mentions Tracy, of Newburyport, who at the end of
1777 had lost forty-one ships. In 1782 he was worth ;f 120,000 sterling by
privateering, * Adams, iii. 89.

Finances of the American Revolution. i8i
duce than in 1774.^ HamUton said that labour was much
dearer in 1782 than before the war.^ When Franklin
came home, although he heard complaints of hard times,
dulness of trade, scarcity of money, etc., he was astonished
at the changes. " If we enter the cities we find that since
the Revolution the owners of houses and lots of ground
have had their interest vastly augmented in value ; rents
have risen to an astonishing height, and thence encourage
ment to increase building, which gives employment to an
abundance of workmen, as does also the increased luxury
and splendour of living of the inhabitants, thus made richer.
These workmen all demand and obtain much higher wages
than any other part of the world would afford them, and
are paid in ready money." ^ He wrote to Jefferson : " I do
not remember ever to have seen, during my long life, more
signs of public felicity than appear at present throughout
these States." The crops were good, the prices high, the
wages high, real estate was advancing. The merchants com
plained ; but it was because there were too many of them.*
On the other hand Webster, enumerating the woes of
war, mentioned the effect of depreciation on debts, salaries,
fees, etc. ; " also the distresses and losses arising from the
limitations of the market, the ruinous effects of which were
innumerable, and in many instances shocking and almost
tragical. . . . While we rejoice in the riches and strength
of our country, we have reason to lament with tears of the
deepest regret the most pernicious shift of property which
the above-mentioned irregularities of our finances intro
duced, and the many thousands of fortunes which were
ruined. The generous patriotic spirits suffered the injury;
the avaricious and idle derived benefit from the said con-
1 Webster, 293.
2 Hamilton's Works, viii, 64 ; Letter to R, Morris,
' Franklin, ii, 462. *- Dip, Corr, U. S. iii. 75.

1 82 The Financier and the
fusion." ^ He said that some bad men rose to positions of
influence, as they do in all revolutions.
It was exactly this contrast, and especially the effect on
debtors of the collapse of the paper currency, which pro
duced the riots and rebellion in New Hampshire, Massa
chusetts, and elsewhere, and the almost universal demand
for more paper money. Creditors suffered far more than
debtors during the period of the Revolution, but they are
not the class which makes riots.
We have had occasion also to comment on the doctrines
of political philosophy and constitutiojnal law which were
popularly entertained. A conservative party had been
formed, which embraced the men of education and wider
knowledge of the world, who were struggling for union,
public credit, and the dominion of law. They found them
selves opposed to the great drift of popular opinion and
feeling. The mass of the people were still, as in the colo
nial days, turbulent, self-willed, and lawless. " The fruits
of our peace and independence do not at present wear so
promising an appearance as I had fondly painted to my
mind. The jealousies, the prejudices, and the turbulence
of the people at times, almost stagger my confidence in
our political establishment, and almost occasion me to
think that they will show themselves unworthy the noble
prize for which we have contended, and which I had
pleased myself was so near our enjoyment." ^ " Among
the extravagances with which these prolific times abound,
we hear it often said that the Constitution, being the crea
ture of the people, their sense with respect to any mea
sure, if it even stand in opposition to the Constitution, wiU
sanctify and make it right." ^
' Webster, 93 fg.
^ Governor Trumbull to Washington ; April 20, 1784: Letters to Washing
ton, iv. 68,
' Hamilton's Works, iii. 495.

Finances of the American Revolution. 183
The conservative party, in their exhortations and argu
ments, spoke a language which was hardly intelligible to
the popular party. By what arguments will you convince
a man of the value of a thing like public credit, the value
of which is never understood by anybody except through
knowledge of the world and experience of affairs? The
leaders of the popular party never had anything to do but
glide along with the course of things, encouraging the peo
ple in all their prejudices, and faUing in with all their wishes.
The conservative party had to struggle for union, for ade
quate constitutional institutions, for taxation and provision
for the public debt, for the restriction of paper currency,
and for an adequate federal establishment in order to give
Americans security on the sea and in all international rela
tions. They could only accomplish these ends by persist
ent and careful effort to bring about one step after another.
As soon as the war was really ended and its results in
effect achieved, the union feU to pieces. The army was
brushed aside as quickly as possible, and the popular tem
per showed itself in a warfare on the money power. The
Bank of North America was the institution which repre
sented the money power. In 1784 and 1785 it earned
fourteen per cent. If it was judged by modern standards,
its methods of banking would be open to severe animadver
sions, but the criticisms which were made upon it at the
time were almost altogether social and political. In 1784
it enlarged its capital by issuing a thousand more shares
at ^500 each. This led to the foundation of a rival in
stitution, which was on the point of being chartered,
when the new subscription was extended to four thousand
shares at $400 a share, and those who had already paid
in 1^500 received ^100 back with interest. On June 13
the capital amounted to ^830,000.1 In the list of sub-
1 Hazard's Register, iv, 136,

1 84 The Financier and the
scribers at this time appears the firm of Willing, Morris,
and Swanwick.
Joseph Reed wrote from London, in regard to the pro
posed new bank, that the whig representation in it was not
large enough, but that he hoped it would check the influ
ence which was predominant. " Mr. Morris has had all
the effective powers of government in his own hands, as it
was easy to foresee he would have. It was the misfortune
of the times, and even good men were obliged to concur in
it as the lesser evil." ^
We obtain some insight into the situation of things from
a letter of William Seton, cashier of the Bank of NewYork,
to HamUton, written from Philadelphia, March 27, 1784.
The bank, he says, is in great confusion. On account of
the opposition of the new bank they were obliged to ex
tend their loans and issues until they put themselves in a
dangerous position. For the safety of the community,
therefore, " it became absolutely necessary to drop the
idea of a new bank, and to join hand in hand to relieve the
old bank from the shock it had received. Gold and silver
had been extracted in such amounts that discounting was
stopped, and for this fortnight past not any business has
been done at the bank in this way. The distress it has
occasioned to those dependent on circulation and engaged
in large speculations, is severe; and as if their crop of
misery must overflow, by the last arrival from Europe
intelligence is received that no less a sum than ;£'6o,ooo
sterling of Mr. Morris's bills, drawn for the Dutch loan, are
under protest. It is well known that the bank, by some
means , or other, must provide for this sum. The child
must not desert its parent in distress; and such is their
connection that whatever is fatal to the one must be so to
the other. ... I have had several interviews with our
^ Reed's Reed, ii. 413.

Finances of the American Revolution. 185
friend Gouvemeur Morris. He is for making the Bank of
New York a branch of the Bank of North America; but
we differ widely in our ideas of the benefit that would
result frora the connection." ^
In April Hamilton wrote to Gouvemeur Morris: "Dis
crimination bills, partial taxes, schemes to engross public
property in the hands of those who have present power,
to banish the real wealth of the State and to substitute
paper bubbles, are the only dishes that suit the public
palate at this time." ^
In March, 1785, "petitions from a considerable number
of the inhabitants of Chester County were read, represent
ing that the bank established at Philadelphia has fatal
effects upon the community; that whilst men are enabled
by means of the bank to receive near three times the rate
of common interest, and at the same time to receive their
money at very short warning whenever they have occasion
for it, it wUl be impossible for the husbandman or me
chanic to borrow on the former terms of legal interest and
distant payment of the principal ; that the best security
will not enable the person to borrow; that experience
clearly demonstrates the mischievous consequences of the
institution to the fair trader; that impostors have been
able to support themselves in a fictitious credit by means
of a temporary punctuality at the bank, until they have
drawn in their honest neighbours to trust them with their
property or to pledge their credit as sureties, and have
been finally involved in ruin and distress ; that they have
repeatedly seen the stopping of discounts at the bank
operate on the trading part of the community with a de
gree of violence scarcely inferior to that of a stagnation of
the blood in the human body, hurrying the wretched mer
chants who have debts to pay into the hands of griping
1 Hamilton's Works, i. 417. ^ Ibid. 418.

1 86 The Financier and the
usurers; that the directors of the bank may give such
preference in trade by advances in money to their particu
lar favourites as to destroy that equality which ought to
prevail in a commercial country; that paper money has
often proved beneficial to the State, but the bank forbids
it, and the people must acquiesce. Therefore, and in order
to restore public confidence and private security, they pray
that a bill may be brought in and passed into a law for re
pealing the law for incorporating the bank.''^
A committee was raised "to inquire whether the bank
established at Philadelphia was compatible with the public
safety, and that equality which ought ever to prevail be
tween the individuals of a republic." The committee re
ported that the bank as then managed was in every way
inconsistent with the public safety, and recommended that
its charter be repealed.
The bill for the repeal went over the session, but was
taken up on the first day of the autumn session of the
same Assembly. Counsel of the bank were allowed to
argue before the House; but on the 13th of September,
1785, the charter was repealed.
The bank now feU back on its federal charter, but there
were so many doubts of its validity that the attempt was
made to get another State charter. February 2, 1786,
Delaware gave one, which was accepted ; and it was deter
mined, if necessary, to move to some city in Delaware.
A popular agitation of the question, bank or no bank,
was however begun in Pennsylvania, in the course of
which Gouvemeur Morris wrote an address on behalf of
the bank, which, considering the time at which it was writ
ten, contained some very strong and clear writing on cur
rency and banking. On the above charges he commented
as follows ! " If it be true that the bank enables men to
1 Ninth Assembly, 233.

Finances of the American Revolution. 187
overtrade themselves by the use of money at an easy rate,
it cannot be true that it throws men into the hands of usu
rers who exact for the use of money an exorbitant rate.
If it be true that foreigners will buy out the stockholders,
even as is said, at fifty per cent advance, so as to become
proprietors of the whole, it cannot be true that the money
of our rich citizens will be vested in bank stock and none
remain for loans. If it be true that the use of money ob
tained by discount at the bank ruins the trader, it cannot
be true that the directors and their friends would gain any
advantage by it. If it be true that the bank has a ten
dency to lock up in its vaults the itioney of rich citizens,
it cannot be true that it facilitates the exportation of
coin. If it be true that foreigners will continually bring in
money to buy the principal of the stock, it cannot be true
that the country will be continually drained of specie by
paying the dividend on that principal. If it be true that
the funds of the bank must finally vest in foreigners, it
cannot be true that it is destructive of equality among the
citizens." ^
Nearly the only element in the popular discussion
which could be called financial was that which grew out of
the notion that there was not money enough. On this
Gouvemeur Morris wrote ; " The surest way to render
money plenty is to bear the evils of scarcity. To make
it plenty, according to the desire of some, would be, as in
the continental time, to make it no money at all. For
when it can be obtained without labour and found without
search, it is of no use to the possessor. Those nice poli
ticians, therefore, who try to make money so plenty that
people may get it for nothing, will find that their money
is good for nothing. The scarcity constitutes the value,
and when that scarcity is such that men will do a great
1 Sparks's Morris, iii. 440.

1 88 The Financier and the
deal for a little it will become plenty ; for those will always
have most money who will give most for it. The com
plaint that money is scarce is generally made by the idle
or unfortunate, — by those who wiU not, or by those who
cannot give anything in exchange for money, except bare
promises, which they cannot or will not perform.
" Now, such men would suffer more from the want of cash
in Amsterdam or London, where it is most plenty, than in
any part of the State of Pennsylvania. If folks are idle,
they must be relieved by labour; and if poor, by charity.
Till this be done, the complaint that money is scarce will
continue, and though loud will not be very just. There
was, for instance, a grievous complaint of the want of
money at the close of the war, and yet every man who
had a bushel of wheat could get eight or nine shiUings for
it. People in general plunged into extravagance, and laid
out their coins for foreign fripperies, and the merchants,
unable to remit for payment of these things in produce,
except on ruinous terms, sent away the coin ; so that in
two years there has been mdre money exported from this
country, in which a scarcity was then complained of, than
is necessary for a circulating medium. The several States
are now issuing paper, that what little specie is left may
also be exported, instead of the wheat, corn, rice, and to
bacco. Flour has long been cheaper in London than in
Philadelphia. We buy fine coats and handsome buckles
and a thousand other handsome fine things in London, and
then, when called on to pay, though our barns be full of
wheat, we will not sell it as formerly, for five shillings a
bushel, but sit down and cry because money is scarce." ^
He very nearly reached the two great doctrines of
currency: (i) that there never can be a scarcity of cur
rency except when there is too much of it ; (2) that if the
1 Sparks's Morris, iii, 448.

Finances of the American Revolution. 189
currency is perfectly good, it has no effect whatever on
contracts; hence, if contracts are affected by currency,
the remedy is to make the currency better. Considering
the present state of opinion on currency, including bi
metallism, we must give Gouvemeur Morris great credit for
his attainments in monetary science. He must have been
much more than a mere assistant to Robert Morris.
Thomas Paine was hired by Morris and other friends of
the bank to write for it. Callender, in 1802, said that strat
agems were practised on Paine, and that he was ruined
with his friends. He added that the bankers in that bank
knew nothing about banking; that all European banks,
except the Bank of England, limit themselves to buying
and seUing buUion.^
In October, 1785, Robert Morris was elected a represen
tative in the General Assembly of Pennsylvania. His ob
ject was to join in the battle about the Bank of North
America, but he was very diligent in his attendance
throughout the year. His name is in almost every division,
and he was on all the most important committees. He was
chairman of the Committee of Ways and Means ; on a com
mittee for revising the road system of the State, which was
said to be very bad; also on a committee to revise the test
laws of the State, and to extend to free male whites the
privileges of citizenship, although they had not taken the
test oath, if they now swear allegiance (which was carried) ;
and on the committee for a bill to pardon the Connecticut
settlers in Wyoming, if they give surety for good behav
iour. He voted with the majority against a law forbidding
all theatricals, voted to table a bill for licensing a regular
theatre, and tried in vain to improve the tax system.
The Committee of Ways and Means reported a long and
careful plan for reforming the finances of the State, which
1 Letters to Hamilton, 36,

igo The Financier and the
was adopted and acted on; but in February, 1786, the
part of it which provided for paying the State's quota of
interest on the federal debt was repealed, against Morris's
urgent opposition. This was no doubt one of the parts
of it which interested him the most. The measure for ad
mitting the tories to citizenship aroused great opposition ;
and a remonstrance against it by the citizens of Dauphin
County was handed in, couched in the strongest rhetoric
of the pre-revolutionary period. They threatened to de
fend their liberties by force. The House refused to allow
the remonstrance to lie on the table. Another similar re
monstrance they refused to hear read.'' The bill contained
a limitation that the tories must take oath that they had
not voluntarily aided the English since the Declaration of
Independence. Morris tried in vain to have this stricken
out.^ He also signed a protest of the dissenting minority
against a bill to redeem the bills of credit of 1781 by col
lecting the arrears of unpatented lands, located before
1776. The grounds of dissent were that it was a favour to
the landholders whose quit-rents had been abolished, and
who also had enjoyed other favours ; that it would produce
uncertainty and speculation, and would deprive the State
of taxes.^ He favoured a proposition that no one should
vote who did not pay taxes ; which was lost, sixty to ten,*
The great question, however, was the one of rechartering
the bank. March 3, 1786, a memorial from six hundred
and twenty-four citizens of PhUadelphia in favour of the
bank was presented, in order to bring the matter up again.
The debates on this occasion were published by Matthew
Carey, at the expense, it is said,® of Robert Morris, who
took a prominent part in the debate.
LoUar, arguing against the bank, said : " The learned
1 Tenth Assembly, 177. 2 jbid, 189. 3 Ibid. 195.
< Ibid. 253. 5 Mease, 237.

Finances of the American Revolution. 191

counsel who have pleaded the cause of the bank before the
late Assembly have candidly and ingenuously admitted
that when the balance of trade was against the country a
bank was injurious," SmUie said that bank paper money
and State paper money could not exist together, and that
the question was which should prevail. Pelatiah Webster,
in an essay on the " Bank of North America," explained
this notion by saying that the State paper money men
thought that they could not circulate such paper unless
the bank would give it currency .^ Findley expressed the
fear of the democrats, — that in America no other institu
tion existed or could exist to offset the bank. In fact,
the whole debate is a strange anticipation in miniature of
the war between the Jackson party and the Bank of the
United States, as respects both the political and the finan
cial ideas involved in it.
Morris, in his speech, said that the stockholders voted to
try at law whether the charter could be repealed. He rep
resented the action then going on as resting on outside
petition, and not on the petition of the bank. He said that
trade was not good, that exports were less than before the
war. He had heard that opposition to the bank was oppo
sition to himself, but he was quite indifferent whether the
bank was abolished or not. If it was, he would set up a
bank of his own, with or without partners, and he was sure
that his enemies " wUl deal with me and trust me ; not that
I expect that they may like me better than now, but they
have confidence in me, and for the sake of their own in
terests and convenience they will deal with me." He gave
a history of the bank and of the assistance which it ren
dered to him during his administration of the treasury.
He argued that the bank brought capital into the country ;
which was an advantage, because it was loaned here at six or
1 Webster, 448.

1 92 The Financier and the
eight per cent, and the borrower could make fifteen or twenty.
Therefore the more was imported, the better. He compared
the amount of the government stock in the bank with the
amount of the government debts to the bank, and spoke of
the merchants as borrowing from the bank the amount of
their stock in it. This gives us an insight into the mode
of the business. The stockholders of the bank were re
garded as warranted in borrowing from it to the extent of
their -stock, which was regarded as the security. He spoke
of the deposits in it as the loanable funds. He said that
people were afraid to lend on bond and mortgage on ac
count of the paper money and the tender laws. His speech
is a good one, and shows that he was a good debater.
The proposed recharter of the bank was defeated in
April. Morris was re-elected to the eleventh General Assembly
for the year 1786-87. At the opening of the November
session a committee reported that some amendments in the
charter of the bank would make it free from objection ; and
the bank was rechartered March 17, 1787, for fourteen
years. Its capital was limited to two miUions of dollars.
Morris was re-elected to the eleventh General Assembly
for 1786-87; but in March, 1786, he had been appointed on
the committee to whom was referred the proposition of Vir
ginia for a Convention to regulate commerce. He was
appointed delegate to that Convention, which met in 1786,
and also a member of the Constitutional Convention which
met in May, 1787, so that he took very little part in the
proceedings of the General Assembly of that year.

Finances of the Americati Revolution. 193

CHAPTER XXVIII.
THE COMMERCIAL CONVENTION AND THE CONSTITUTIONAL
CONVENTION.
JUNE 14, 1782, the Virginia Assembly passed resolu
tions to co-operate with Maryland in the defence of
the Chesapeake Bay. Joint action was proppsed in regard
to duties, etc.^ This was the earliest attempt to deal with
a difficulty, which increased during the following years and
became the immediate moving cause of the adoption of the
federal Constitution. The different elements which com
bined in this connection were the limitation of jurisdiction
over waters which lay between two States, the regulation of
commerce by navigation laws, the impost for federal reve
nue, and the attempt to act upon the development of in
dustry by import duties.
January 4, 1786, the Secretary of Congress made a report
on the action of the States with respect to the revenue
system, which was adopted by Congress April 18, 1783.
The proposed impost had been adopted by all but Rhode
Island, Delaware, Maryland, New York, and Georgia. In
1785 Rhode Island enacted that the State should appoint
the collectors by its General Assembly, and that they
should be amenable to it. Congress had proposed that the
States should appoint, but that they should be amenable to
Congress. Hamilton, in his answer to the Rhode Island
objections to the impost in December, 1782, had main-
1 Va. Papers, iii. 192.
VOL. II. — 13

194 The Financier and the
tained " that no federal Constitution can exist without
powers that, in their exercise, affect the internal police of
the component members. It is equally true that no gov.
ernment can exist without a right to appoint officers for
those purposes which proceed from and concentre in it
self." ^ We now know well that these propositions were
strictly correct. They belong to the very foundation of
our existing federal system. They therefore raised, in a
very distinct form at that time, the issue of Union or no
Union. The Rhode Island Act further provided that the
State should retain from the revenue ;^8,ooo to pay its
share of the interest on the foreign debt, and that the
remainder should be paid on the interest of the domestic
debt held in that State. Maryland had complied with all
but the provision about the appointment and amenability
of the collectors. There was no official report for Dela
ware; but it was said to have complied. As to providing
other revenues to make up the million and a half required,
besides the impost, New Jersey, Pennsylvania, and North
Carolina had complied. Rhode Island had laid a tax of
one dollar in silver on every hundred acres, and on every
male poll over twenty-one, and on every horse or mare
two years old, in order to pay the interest on the domestic
debt held in Rhode Island.
New York, New Jersey, Pennsylvania, Maryland, Vir
ginia, North Carolina, and Connecticut had complied in
full with the Act of April 26, 1784, giving Congress power
to regulate commerce. New Hampshire, Massachusetts,
and Rhode Island had complied with it in effect.
A proposition had also been submitted for amending the
Articles of Confederation, so that the basis of apportion
ment of requisitions should be population, and not the
assessed value of houses and land. To this New Hamp-
1 Journ. Cong. viii. 153.

Finances of the American Revolution. 195
shire, Rhode Island, Delaware, South Carolina, and Georgia
had not consented.-'
A month later the Committee on Finance reported :
Over fifteen millions and a half had been caUed for within
the last four years, on which there had been paid less than
two millions and a half They speak of the country as
" having in a great measure recovered from the calamities
of the late war, being in possession of a free and extensive
commerce, at peace with all nations, and the economy of
our own government, thus circumstanced, only to attend
to." Hence they think it would not raise their credit to
ask for any more loans abroad. They therefore recur to
the plan of April 18, 1783, the impost and the State taxes
for a miUion and a half of doUars. It was proposed to urge
Georgia and New York to come into the plan.
On the 15th of February, 1786, a committee reported on
the acts passed by the several States to comply with that
plan. Some had put in one restriction or condition, and
some another. Seven had agreed in such a way that if
the other six would agree, the plan would go into opera
tion. Only two had accepted the system in all its parts,
and four had not decided in favour of any part of it ; yet
the committee cannot find that any objections have been
made to it. They say that the requisitions are not to be
depended on as a resource. The interest to be paid in
Europe in 1787 will exceed half a million of doUars, and
from that time until 1797 the average annual sum of a
million dollars will be necessary to meet the contracts for
interest and instalments of the principal in Europe. From
the ISt of November, 1781, to the ist of January, 1786, the
amount brought into the federal treasury was not quite
two millions and a half of dollars, and during the last four
teen months the income had been at the rate of ^371,052
1 Dip. Corr, U S. iv, 409, ^

196 The Financier and the
per annum, — that is, less than the current expenses of the
government itself.^
Perhaps nothing more distinctly proves the low position
to which the treasury had sunk in 1786, than the fact that
the Board of Treasury wrote to the loan officer of Massa
chusetts, hearing that he had ^67,197 of the old notes, of
March, 1780, in his hands, to ask him to sell ;^25,ooo of
those notes for specie, on the best terms possible, and send
the proceeds to them.^
As time went on in the years after the peace, the chances
of obtaining the impost, instead of improving, declined ; for
as the pressure of necessity passed away, all the wild and
impracticable notions were brought forward without re
straint. R. H. Lee would not agree that Congress should
fix the mode of taxation or the manner of collecting it.
He wanted to discourage large importations, lest the bal
ance of trade should become unfavourable.^ Osgood fa
voured an impost by the States, coUected by officers
appointed bythe State, and accountable only to the State;
the proceeds to be placed to the credit ofthe State.*
The States also became more and more jealous of each
other. The Governor of Massachusetts, in 1785, sent a
circular to the governors explaining a resolution of the
Massachusetts Legislature. One State had levied duties
on goods im.ported from any of the United States, espe
cially on the products of Massachusetts ; while the same
goods imported from foreign countries were free. He refers,
without naming the State, to New York, which was trying
to prevent an importation through Massachusetts which
had become customary while New York City was occupied
by the EngUsh. Massachusetts expostulated, and asked
for the support of the other States.®
1 Journ. Cong. xi. i8, 2 Phillips, ii. 234,
8 Lee's R. H, Lee, ii. 62. * Mass. Hist, Soc, Proc. March, 1862.
^ Va. Papers, iv, 60,

Finances of the American Revolution. 197
Virginia, however, was more interested in her own case
with Maryland. January 13, 1786, the House of Delegates
of Virginia passed resolutions concerning the joint com
merce of Maryland and Virginia. Among the rest, they
provided that duties on imports and exports, if laid, should
be the same in both States, and that each State should ap
point Commissioners to meet once a year to confer on the
commercial policy of the two States. This contemplated
joint action.^ Virginia proposed a Convention of the States,
to which the Pennsylvania Assembly responded by an Act
of March 31, 1786. Five Commissioners were to be ap
pointed, any three of whom might act, to meet Commission
ers ofthe other States at a time and place to be agreed upon ;
to take into consideration the trade of the United States,
and to report propositions for a uniform system of com
mercial regulation, which, if unanimously ratified, will enable
Congress to provide for trade; also especially to confer
with the Commissioners of Virginia and Maryland about
the regulations of commerce and the duties proposed by
each State.^ April 11, Pennsylvania appointed Robert
Morris, George Clymer, John Armstrong, Jr., Thomas
Fitzsimmons, and Tench Coxe, Commissioners.^
The Act of the State of New York with regard to the
impost called out special action by Congress. The Act
was passed May 4, 1786. A committee of Congress re
ported on it July 27, 1786. They said that this act of New
York reserves to that State the sole power of levying and
collecting the same, according to an Act of that State of
November 18, 1784, so that the other States which have
passed the Act on condition of its being passed by all,
would not be bound; that the State has retained jurisdic
tion of the collectors, and that the duties would be payable
in bills of credit of New York. Hence they report a reso-
1 Va. Papers, iv. 80. 2 itid. 117. s Penn. Archives, xi. 522.

198 The Financier and the
lution that this is not a compliance with the request of Con
gress, and it was voted to appoint a committee who should
draft an ordinance to carry the impost into effect as soon
as it had been complied with by New York, and as soon as
Pennsylvania and Delaware had amended their acts.^
August II, 1786, it was resolved to request Pennsylvania
to amend her Act so as to grant an impost without the
condition that aU the States should grant the supple
mentary funds; also to urge New York to convene the
Legislature, so as to grant the impost. This was passed
unanimously, except New York. On the 23d of August
Congress took up the answer of the Governor of New York,
saying that he declined to convene the Legislature for this
purpose. The delegates from New York made this letter
the basis of a motion that there should be no further appeal
to NewYork; which Congress rejected, and reiterated their
appeal.^ This brought the matter of the impost to a crisis. It
seemed to be demonstrated that a unanimous action of the
thirteen States could not be obtained. On the other hand,
the fact had been developed with great distinctness that an
import duty was by far the best system of revenue pos
sible for the federal government. It was the only one
which could be made to produce revenue consistently with
the industrial organization and the prejudices and customs
of the people. It has often been asserted that the chief
reason why the federal Constitution was required was in
order to provide for the regulation of commerce and the
protection of home industry. Webster and Clay had a
great debate on this point in 1824,
The desire of certain interests, and among the rest, of
the shipbuilding interest and the carrying trade, to secure
special advantages by the adjustment of import taxes, pro-
1 Journ, Cong, xi, in, 2 lyd. 123.

Finances of the American Revolution. 199
duced an attempt to effect an entrance here for protective
taxes under cover of the necessity of revenue. In the end
that attempt succeeded, and this has been the position of
protective taxes ever since ; but the necessity of the situa
tion in 1786 was for an adequate revenue for the support of
the federal Union, and there was no other necessity, either
political, industrial, or financial.
The geography of the Atlantic coast had a very impor
tant and perhaps a decisive influence in bringing about the
Union, for if the geography had not presented exactly the
features which do appear, subordinate groups of States
would have made local arrangements with each other. The
reason why Maryland and Virginia could not agree as to
the control of the waters between them was that each of
them touched on the other side upon other waters, which
they held in common with other States, — North Carolina
on the one side, and Pennsylvania and Delaware on the
other ; or, if the waters did not exactly touch the lerri'tory,
they approached near enough for commercial purposes. If
Pennsylvania and Delaware had joined Virginia and Mary
land, they would have found difficulty with New Jersey, with
which they shared the Delaware River and Bay. If New
Jersey had joined them, she would have found new diffi
culty with New York and Connecticut. Then through
Long Island Sound and Narragansett Bay, Rhode Island
and Massachusetts must have been taken in. On the
other side, the sounds and bays of North CaroUna con
nected with those of South Carolina and Georgia in such
a way that, with the possible exception of New Hamp
shire, the thirteen colonies were forced to have one sys
tem of duty and one line of policy for the regulation
of commerce.
The Convention met at Annapolis in September. Vir
ginia, New Jersey, Delaware, Pennsylvania, and New York

200 The Financier and the
were the only States represented. Those who were pres
ent determined to report to the Legislatures which ap
pointed them that it was desirable that a Convention of all
the States should be called. John Dickinson was the
chairman of this meeting. The Address, however, was
written by Hamilton. ^
The Commissioners considered the federal government
inefficient, and that further provisions should be devised to
render it adequate to the exigencies of the Union. Hence
they recommended to the States to send delegates to Phil
adelphia on the second Monday in May. New York inter
posed with a proposition for a Convention to propose
amendments to Congress, which was defeated. New York
had sent instructions to its delegates to this effect. Then,
on the proposition of Massachusetts, that proposition was
in effect agreed to. The Convention was to report to Con
gress and the several Legislatures such alterations as, when
agreed to by Congress and confirmed by the States, should
render the federal Constitution adequate to the exigencies
of government,^
At the same time with this Address, Tench Coxe, Com
missioner for Pennsylvania, addressed a communication to
the Commissioners of Virginia. Before Virginia proposed
a general Convention of the States, Pennsylvania was con
sidering the assimilation of the commercial systems of the
States. An examination of facts showed that some States
had discriminating tonnage taxes against the ships of other
States, sometimes as great as the tax on foreign ships, and
discriminating taxes on goods imported in ships of other
States. The import taxes in some cases were as high
on goods from other States as if they came from foreign
countries. He asks the Commissioners of Virginia to ob
tain power to deal with these matters. Pennsylvania treats
1 Madison Papers, ii, 698. 2 journ, Cong. xii. 12.

Finances of the American Revolution. 201
the ships of other States as she does the ships of Pennsyl
vania, and puts the same taxes on goods imported in the
ships of other States as on those imported in her own, and
taxes no goods which are the gross product or manufacture
of the United States.^
April 2, 1787, Edward Carrington, delegate from Vir
ginia, wrote to Governor Randolph from New York, that
the late law of Virginia had had a bad effect on trade.
" This circumstance evinces the impossibility of managing
the trade of America by State arrangement, and the neces
sity of vesting the federal head with full authority over that
and every interest of like general nature. Until this is
the case, State schemes will be pursued, with surreptitious
views against each other, which must eventually destroy a
source of revenue that might be immensely valuable to the
whole Union ; and every effort prohibiting of foreign arti
cles will also be vain." ^
In May one of the Commissioners to establish a basis of
trade between Virginia and Maryland reported that the ex
isting arrangement between those two States for the con
trol of the waters was not feasible or expedient. " Some
system of a general nature should pervade the whole
Confederation." ^
There had already been two cases of riot and mob inter
ference with the administration of the joint law of Mary
land and Virginia. In 1782 a Maryland schooner at
Fredericksburg violated the Virginia duties. The sheriff
seized it ; but a mob was raised, which carried away the salt
of which the cargo consisted, and frustrated his efforts.
Another officer reported to the Governor the name of the
person in whose warehouse the salt lay. Edmund Ran
dolph, the Attorney-General, seemed afraid of the case,
1 Va. Papers, iv. 168. 2 jbid, 264.
8 Ibid. 280.

202 The Financier and the
but said that he would inquire into the particulars of the
riot.i In June, 1787, a searcher in the customs service of Vir
ginia reported to the Governor from Alexandria that an
attempt had been made to land rum contrary to law. The
officer was resisted by the captain and crew, and when the
vessel was seized, citizens helped the captain to rescue it
and make sail. They refused to help the officer on his de
mand, " and appeared more ready to assist the violators
than the executor of the law." A fortnight later he re
ported that steps had been taken to fine the persons who
refused him their assistance. He expected that the vessel
would pass Alexandria in the night, which she did. A
poor labourer, who was suspected of having given informa
tion against the vessel, was taken out of his house at night
bythe mob, beaten, cut,, and stabbed so that he would prob
ably not be able to earn his living any more. Another
under like suspicion was also abused a few nights later.
Both were innocent of giving information.^ This story is
exactly like the stories of resistance to the custom-house
officers in the last years before the Revolution.^
In the attempt to prosecute the second case, the imprac
ticability of the joint arrangement then existing between
Virginia and Maryland was distinctly shown. The local
officer, in a report to the Governor, stated that the ship
owners considered that if they entered in one State, they
were only bound to take care that they did not violate the
commercial regulations of that State, and that the Potomac
was free to both. The laws of Maryland allowed retail
trade to small boats over the side, and it was impossible to
tell to which State they belonged. As he quotes the com
pact, it provided both that the river should be free to both
1 Va. Papers, iii, 247, 257. 2 ii,;j, i^, ^qj fg.
8 See, for instance, Biddle, 64, 72.

Finances of the American Revolution. 203
parties, and that each should make its own regulations.
He says that every ship ought to obey the laws of both
States, which would mean that it must obey the laws of the
one which was more rigid. Referring to the outrage on
the two supposed informers, he says that they were further
compelled by threats to leave town, lest they be murdered.^
In August, 1787, the Attorney-general of Virginia main
tained that Virginia had power to enforce her laws over
the whole breadth of the Potomac.'^
In June, 1787, a new complaint was raised at PhUadel
phia that Virginia exacted a discriminating tonnage duty
on Dutch vessels contrary to the treaty of commerce with
the Netherlands.^
In Washington's diary of his journey to Philadelphia to
attend the Convention of 1787, he says that he was pressed
by Mr. and Mrs. Morris to lodge with them, and that he did
so. On the 14th of May he says that he " dined in a
family way at Mr. Morris's." The diary does not give the
impression that he made his home with them.* It speaks
frequently of visits at Morris's, which, however, may refer
to the occasions on which he dined with them. Morris
wrote to his son that Washington was his guest during the
Convention.® Morris was a member of the Convention. He had from
the first been of the little group who had struggled to bring
about a better union. In 1782 he wrote to Hamilton : " A
firm, wise, manly system of federal government is what I
once wished, what I now hope, what I dare not expect, but
what I will not despair of." ®
He did not, however, take any active part in the debates
or on the committees of the Convention. It fell to his
1 Va. Papers, iv. 317. 2 ibid, 326.
8 Ibid. 298. * Washington, ix. 539,
^ Penn, Mag. ii. 170, s pip. Corr. Rev, xii. 250.

204 The Financier and the
duty as leader of the Pennsylvania delegation to nominate
Washington for President of the body, because the other
prominent candidate was Franklin, from Pennsylvania.
Madison mentions that Morris was called in to a confer
ence with Gouvemeur Morris and Washington in the crisis
of the strife between the large and small State interests ^
He acted so completely in unison with Gouvemeur Morris
that he left the public activity to the latter.
The Federal Farmer [R. H. Lee] declared that there was
a strong tendency to aristocracy in every part of the Con
stitution which was adopted. Pennsylvania appointed aris
tocrats, who seized the chance to change the government.^
There is at least some colour of truth in this. Robert
undoubtedly cherished all the views which were uttered by
Gouvemeur in his speech on the Senate. He thought that
the House would be democratic, changeable, extravagant,
and precipitate. The Senate should be based on property,
and constitute an aristocratic body as a check to the House.
Senators should be chosen for life. This plan would also
prevent the danger to be apprehended from rich men, who
are likely to favour tyranny. Any attempt to check the due
influence of wealth only leads to its corrupt influence. He
favoured a strong government, but the influence of the rich
should be duly guarded against.^
Washington offered the position of Secretary of the
Treasury to Morris, who declined it and recommended
HamUton.* 1 Elliot's Debates, i, 508. "^ Ford's Pamphlets, 285.
8 Elliot's Debates, i. 475, ' * Custis, 349.

Finances of the American Revolution. 205

CHAPTER XXIX.
THE ACCOUNTS OF ROBERT MORRIS AS AGENT OF THE STATE OF
PENNSYLVANIA, AS SUPERINTENDENT OF FINANCE, AND WITH
THE OLD COMMITTEE OF COMMERCE.
I. The Accounts of Robert Morris as Agent of the State
of Pennsylvania}
TN 1782 Morris rendered to the State of Pennsylvania the
-*- account of his transactions as agent of that State in
1 78 1, and he made a proposition to the State that the
Comptroller-general and some other person to be appointed
on behalf of the United States by the Superintendent of
Finance should be a committee to commute the money of
the State, which he had expended for the general service
of the United States, into specific supplies due from the
State, so that the State might have credit for the articles,
instead of the money. Giving an account of this affair in
a private letter to Tilghman in 1785, Morris said: "I
named Mr. Milligan to this service. He and the Comp
troller-general could not agree, and after my resignation
Mr. Milligan declined to act longer, supposing his powers
to end with mine. And now Mr. Nicholson [Comptroller
of the State], instead of applying to Congress or the Treas
ury Board for a new arbitrator, has found that it wUl an
swer the purposes of his party to have me rather than the
United States for the debtor. This malicious attack will
1 See vol. i. pp, 270, 282.

2o6 The Financier and the
appear in its true colours, and in the end wUl serve where it
is intended to injure. We shall have it tried next month,
and at any rate the United States must bear me harmless,
as they have had the money." ^ The amount at issue was
;^36,ooo. Process had issued against Morris for this sum.
In the Report of 1785 he made the foUowing statement
of the transaction in question : —
" The Superintendent of Finance made sundry purchases
of, and formed some contracts for supplies. The articles
obtained and issued are charged to the State at the prices
they cost and at the times of delivery. The moneys re
ceived from the State are credited in the treasury books at
the times of the several receipts, and as the supplies were
furnished before the moneys were obtained from the State
Treasurer, the State is charged in the treasury of the
United States with the interest arising on the balances,
being the excess of the cost of those supplies beyond the
moneys received from the State. And this is done because
that excess was partly supplied by the moneys of the
United States, and partly by the credit of their officer.
But although the State stands charged only with the actual
cost in the account of the purchase, she has credit for the
supplies at the rates fixed by the resolutions of Congress,
which are much higher; and as this credit .is also given
upon the times of delivery, she of course has credit for an
interest greater than that which she is charged in propor
tion as the prices credited are higher. So far the State
seems to have derived th^ sole advantage. But, as part of
these supplies were obtained by contracts for rations, the
United States gain by saving the expense of issue, and as an
other part was obtained by purchases on the spot where the
articles were wanted, the United States also gain by saving
the expense of transportation. Indeed, in this latter case,
1 Ford Collection.

Finances of the American Revolution. 207
the State of Pennsylvania have likewise gained from this
circumstance, that the purchases were made on cheaper
terms than they could have been within the State. And
with respect to the rations, the component articles were
obtained as cheaply, perhaps more so, than they could have
been purchased by Commissioners ; with this advantage,
also, that the State paid for no transportation, and the
moneys and articles being both expended on the spot,
facilitated the operations of taxing, and contributed to the
convenience of her citizens. From this, which is the true
state of that transaction, an argument might be drawn to
show that an union of measures and views between the
several States and the Union must prove beneficial to all
and to every one of them."
In June, 1785, Morris wrote to the Board of Treasury,
asking them to appoint a Commissioner to meet the Comp
troller of the State and adjust this account. He also peti
tioned Congress to the same effect.^ July 6, he took an
appeal under the State from the settlement of his accounts
by the Comptroller-general. The Council ordered the ac
counts and papers with reference to the purchase of specific
supplies to be sent to the Protonotary of the Supreme
Court.^ In September, on a report of the Board of Treasury,
Congress appointed Commissioners, according to the peti
tion of Robert Morris, to act with Commissioners of Penn
sylvania, in commuting the cash received from their agent
into specific supplies, in order to adjust the accounts of
that State.^ As the matter disappears from the records,
we suppose that they succeeded in settling it.
1 State Dep, MSS,, Memorials, 41, 341,
2 Col. Rec. Penn. xiv. 482, 488, 495. ' Journ. Cong, xi. 155.

208 The Financier and the
II. The Accounts of the Superintendent of Finance.
March 26, 1785, Morris sent to Congress a statement of
the accounts during his administration of the Treasury.
He had caused five hundred copies of it to be printed, ap
parently at his own expense ; and he offered to Congress as
many copies thereof as they might deem necessary for dis
tribution. This is the "Report of 1785." A committee
of Congress reported on this letter that the accounts had
not been examined and adjusted by any person duly author
ized, which step is necessary. They therefore propose that
Commissioners be appointed to "examine and adjust."^
June 20, such Commissioners were appointed to inquire
into the receipts and expenditures of public money during
the administration of Morris, and to settle the accounts
between him and the United States.^ June 28, he wrote
to Congress that he was very glad of the step they had
taken, and wished that it had been done when he resigned,
for he then had the papers at hand and could have ex
plained.^ June 27, he wrote to Tilghman : " You will see
that Congress have appointed Commissioners to examine
the receipts and expenditures during my adrainistration.
This is a very proper measure, and ought to have been
adopted at the time I resigned. I am, however, very glad
it is now done, as by this means I shall have an opportunity
of stopping the malicious and envious who are fond of in
sinuating suspicions which they dare not charge. But I
shall get the better of all these sons of darkness in the end,
and oblige them to acknowledge the services they try to
traduce." *
The raatter now rested until after the federal government
1 State Dep. MSS, 137, App, 381, and Reports of Committees, iv, 442,
2 Journ. Cong, x, 151, » State Dep. MSS. 137, App. 385,
* Ford Collection,

Finances of the American Revolution. 209
was organized under the new Constitution. Morris then
presented a meraorial to Congress, in which he complained
ofthe resolution of June 20, 1785, as giving the impression
that he had some accounts outstanding which were intri
cate and confused, yet that no action was taken. The
accounts of Willing, Morris, & Co. with the United States
before he was Financier are another thing. Imputations had
been raade against hira on account of the delay. He said
that in October, 1788, he went to New York to try to get
a settlement, but there was no quorura of Congress. Feb
ruary, 1 789, he went again, and raade a beginning toward a
settleraent of the old accounts of WiUing and Morris ; but
the new government coming in, the Commissioners were
not wUling to go on. He now asked for Commissioners to
settle the account.^ We may without hesitation suppose
that the presence of Arthur Lee and Samuel Osgood in the
Board of Treasury made it extremely disagreeable for him
to do any business with that body, for we have seen what
their personal feeling was toward him.^ Coraraissioners
were appointed, as he requested.
His coUeague, Maclay, made the following comments on
these accounts, and on Morris's behaviour in regard to thera,
while they were in the Senate together.
January 28, 1790, Morris told him that he was engaged
in settling his accounts, and should not be regular in his
attendance. "The business is a necessary one ; indeed, I
think it is highly so to him, if he regards his reputation,
and in my opinion, he has left it too long at stake al
ready." The next day Morris told him that he found
HamUton "damned sharp," with a keen eye.
February 8, Morris's petition for Commissioners to ex
araine his accounts was handed in. "I am really puzzled
with this conduct of my honourable coUeague. The charges
1 Annals of Congress, ii. 2, 168,
VOL, II. — 14

2IO The Financier and the
against him are not as Financier, but as chairman of the
Secret Committee of Congress, and for money received as a
merchant in the beginning of the business. It seems ad
mitted that he rendered important service as a Financier,
and if I can penetrate his design, it is to cloak his faults in
the Secret Committee with his meritorious conduct as Fi
nancier." Next day this memorial was referred to Izard,
Henry, and Ellsworth as a committee. " I am still more
and more at a loss to know what he would be at. It seems
as if he wanted to make a noise, to get Commissioners
appointed on that part of his conduct which he can defend,
and thus mislead the public. I find the old resolve of Con
gress, the 20th of June, 1785, was brought in by a commit
tee appointed on a letter of his own. He represented this
resolve of Congress to have been the act of his malevolent
enemies and persecutors."
February 23, " Mr. Morris got on the subject of the diffi
culties he laboured under in the settlement of his account ;
told me that he had to send again to Philadelphia for a re
ceipt book, in which were some trifling accounts for money
paid to the extent of forty shillings and such small sums ;
but concluded, ' I will have everything settled, and the
most ample receipt and certificate for the account being
closed.' "
May 15, " Mr. Morris entertained me with a long detail
of the difficulties he met with in the settlement of his
accounts. I believe the clamours against him make the
officers inspect everything with a jealous eye. ... I must
be on my guard with respect to my coUeague. Hamilton,
unhappily, has him in his power with respect to these old
accounts, which are still before the treasury." ^
We have not been able to find any report of the Com
missioners, or any record of the closing of this account, or
^ Maclay, 188, 193, 203, 265, 302.

Finances of the American Revolution. 211
any later reference to it. We raust assume that it was
settled as it appears in Nourse's Report.^
III. Robert Morris's Accounts with the Committee of
Commerce of the old Congress.
From references which have just been cited from Maclay
it will be noticed that these were the accounts upon which
his enemies attacked hira. It will be seen by the dates at
the end of this section, when compared with the date of
Maclay's remarks, that he had in mind the charges of
" Centinel." In a public letter, in January, 1779, in answer to Paine's
reflections on him, Morris said that he had twice settled
the accounts of Willing, Morris, & Co. with the Comraittee .
of Comraerce. The last time was in May, 1778. The
accounts outstanding were still open, on account of various
matters, which it was not yet possible to liquidate.^ On the
1 2th of August, 1783, Morris wrote to Congress that it was
very important that the accounts of the Secret Committee
should be settled. They were entangled with other ac
counts, especially with those of the Marine Committee.^
In October he sent to a coramittee of Congress the copy
of the contract under which Deane was sent to Europe.
He stated that he had himself had advances of money, for
which he exported cargoes on public account, "andhave
long since accounted for." Money was advanced to others
in New York and Connecticut, whose accounts had not yet
been closed. The risks becoming great, that plan was
abandoned.* In September, 1783, he sent to a committee of Congress
a statement about the Secret Committee, in which he said
1 Report of 1790. See page 128. 2 gee vol. i, pp. 209, 223-225, 229.
3 State Dep, MSS. 137, ii. 780.
* Ibid. 54, Papers and Accounts of S. Deane, etc., 13.

212 The Financier and the
that the members were often changed, and the accounts
were unsettled. " Nor can they (from their number and
intricacy) be settled but by sorae person specially author
ized for the purpose, who must seek information from the
minutes and papers of the Committee." As he was a mem
ber of the Committee, he refrained from saying anything
about their transactions.^ There is a letter of the same
month to Arthur Lee about the transactions of the Secret
Committee. "Money was granted to various persons to
ship cargoes to Europe, the accounts of which are not yet
settled, under the old Secret and Commercial Committees.
Sorae shipments arrived, some were taken, some were de
tained by the enemy's naval power, so that the plan had to
be abandoned. Deane was sent to Europe under this plan ;
but when it was abandoned he carried the amount of those
remittances into his general account. Deane must pro
duce the contract to which he refers to support his claim.
Barclay is trying to settle those old accounts."^
Morris wrote also to the President of Congress, January
13, 1784: An investigation of some of the accounts of the
old Commercial and Secret Committee "has not only dis
covered some balances due to the United States, but
has reported other matters which show in a strange point
of light the necessity of examining and settling those
accounts." ^
May 25, 1784, Joseph PenneU, Commissioner of Accounts
for the Marine Department, reported that there were ;^5, 307
unaccounted for in the accounts of the Naval Committee of
Congress. It was impossible to tell what member of the
Committee was responsible, as they had all handled money
on public account, more or less. On the next day Morris
transmitted this report to Congress, and pointed out the
1 State Dep, MSS, 137, iii. 411. 2 Dip. Corr. Rev. xii. 418.
» Ibid. 442,

Finances of the American Revolution. 213
danger of doing business by executive committees, and the
need of investigation.^
We find no further mention of this raatter until 1787;
but Arthur Lee, who was one of Morris's raost pertinacious
enemies, was now one of the members of the Board of
Treasury, and they had evidently taken this matter in hand,
July 12, 1787, the Board of Treasury informed Congress
that they were trying to settle the accounts of the Secret
Committee, and needed aU the resolutions there were in
the Secret Journal of Congress concerning that Committee.^
August 14, they addressed an inquiry to tbe Secretary of
Congress whether " previous to the 27th day of September,
1775, there is among the papers of your office any trace of
a contract made by Congress or any of their members with
Messrs. Willing and Morris." 3 June 25, 1788, in connection
with a memorial of Col. Samuel Nicholson, they reported
that Thomas Morris's papers had been given to Robert
Morris, and that he had not yet settled Thoraas's accounts
with the United States. They urged that these accounts
should be settled, and proposed that Congress pass a reso
lution " requiring " Robert Morris to transrait to the trea
sury all accounts and vouchers of the public transactions of
the deceased.* ' Such a resolution was passed July 2.®
The books and papers of Thoraas Morris are mentioned
in the inventory of the things which were in Robert Mor
ris's roora in the debtor's prison in 1800.®
A coraraittee of Congress reported on the unsettled ac
counts in 1788, that during the late war, and especially in
the early periods of it, raany mUlions of dollars were ad
vanced by the United States to sundry persons, of the ex-
1 State Dep. MSS, 137, iii. 655, 651.
2 Ibid., Reports Board Treas 140, ii, 427. ' Ibid. 443.
* Ibid. 138, ii. 207. * Journ. Cong. xiii. 38.
6 Account of Morris's Property, 25.

214 The Financier and the
penditure of which proper accounts had not been rendered,
nor had vouchers been offered, although often called for.
Sorae accounts have been partially settled, and in some
cases payments made, although it does not appear that the
proper statements were made, or vouchers made of the
articles which composed those accounts. " That from a
general view of this subject the Committee are induced to
think and believe that the United States have already suf
fered very great inconveniences by inexcusable negligence
and unauthorized delays in persons entrusted with public
money, in not rendering and settling their accounts, and
that it has become highly expedient that decisive measures
be speedily adopted for closing aU the unsettled accounts
of the late war." They therefore propose that suits
be brought against all persons who do not within three
months comply with the requirement to settle their
accounts.^ September 30, 1788, a fuller report was raade by the
Committee of Finance: "No less a sum than $2,102,600
has been advanced to the Secret Coramittee of Congress
before the 2d of August, 1777, and a considerable part of
this money remains to be accounted for otherwise than by
contracts made with individuals of their own body, while
those individuals neglect to account. . . . Considerable sums
have been paid out of the treasury, of which no appropria
tion is to be found on the public journal of Congress. . Sev
eral of them remain to be accounted for. Of the accounts
which have been partially settled or settled without authority
or without proper vouchers, two or three, by reason of their
magnitude, have claimed the particular attention of your
Committee. Their amount is little short of a half a miUion
of dollars specie; and though bythe Acts of June 14th and
lOth, 1781, and April loth, 1783, those accounts appear to
1 Journ. Cong. xiii. 22.

Finances of the American Revolution. 215
have claimed the attention of Congress, your Committee
find that it remains very doubtful to this day whether many
of the charges against the United States which are stated
in those accounts have any solid foundation. . . . The total
amount received in France was 47,111,859 livres. Of this
there was drawn and spent in America 26,246,727 livres ;
salaries of foreign ministers, 1,160,183 livres; leaving
19,704,949 livres unaccounted for, so far as docuraents have
been presented at the treasury. If such docuraents exist,
they must be in France." ^
This report fell in the midst of the contest over the rati
fication of the federal Constitution, which was exceedingly
bitter in Pennsylvania, being complicated there with the
contest of the old parties in Pennsylvania about the State
Constitution. The supporters of the State Constitution
were the popular party, and the opponents of the new fed
eral Constitution. The leading writer on the side of the
opponents was "Centinel," who called Morris: "Robert
the Cofferer." He~Heclared that Morris wanted the new
Constitution adopted in the hope that debts to the old
government would be cancelled.^ The earlier letters of
" Centinel " were dignified in manner and argument, so
that they raight even rank with the Federalist; but in the
course of the writing, they became more virulent and per
sonal, and Morris was singled out for a personal attack.
" There were several members [of the Constitutional Con
vention of 1787] in the deputation from the State of Penn
sylvania, who have long standing and immense accounts
to settle, and millions perhaps to refund. The late Finan
cier alone, in the capacity of chairraan of the Commercial
Coramittee of Congress early in the late war, was entrusted
' Journ, Cong xiii. in, 113.
2 McMaster and Stone, xii. 631. " Centinel " was Samuel Bryan. Ibid, 6,
note.

2i6 The Financier and the
with miUions of public money which to this day remain un
accounted for. Nor has he settled his accounts as Finan
cier. The others may also find it a convenient method to
balance accounts with the public. They are sufficiently
known, and therefore need not be designated. This wiU
account for the zealous attachment of such characters to
the new Constitution, and their dread of investigation and
discussion." ^
In the next number he returned to the charge that
the Constitution was wanted in order to cancel old debts
of " defaulters " to the United States. It has been as
serted, he says, that Morris's accounts were settled in
November, 1784, although, June 20, 1785, Congress ap
pointed three Commissioners to settle them." [This referred
to his accounts as Financier.] " When we consider the
immense sums of money taken up by Mr. M  s as com
mercial agent to import military supplies, and even to trade
in behalf of the United States, at a time when the risk was
so great that individuals would not venture their property;
that all these transactions were conducted under the private
firm of W  g and M  s, which afforded unrestrained
scope to peculation and embezzlement of the public prop
erty, by enabling Mr. M  s to throw the loss of all
captures by the enemy at that hazardous period on the pub
lic, and converting most of the safe arrivals (which were
consequently very valuable) into his private property; and
when we add to these considerations the principles of the
"Man, his bankrupt situation at the commencement of the
late war, and the immense wealth he has dazzled the world
with since, can it be thought unreasonable to conclude that
the principal source of his affluence was the commercial
agency of the United States during the war ? — not that I
1 McMaster and Stone, xii, 658 ; no. xvi. of " Centinel," February 26,
1788.

Finances of the American Revolution. 217
would derogate from his successful ingenuity in his numer
ous speculations in the paper moneys, Havana monopoly
and job, or in the sphere of financiering."
Morris replied to these attacks in the " Independent Ga
zetteer" of April 8, 1788, the letter being dated at Rich
mond, March 21. He says that neither in the Committee
of Comraerce nor as F'inancier did he touch a penny of
public raoney. He received raoney as a contractor to ex
port commodities and put funds in Europe, and that he did
it ; but that the accounts are unsettled. Some of the
papers were lost at sea. No duplicates have yet been ob
tained, and receipts are lacking for goods delivered at vari
ous places in America. He thinks that there is a balance
due him. As Financier he touched no money. It went
out from the treasury by warrant, of which there are fuU ac
counts on the treasury books. The statement which he
prepared in 1785, about his administration, was intended
for Congress to send to the States if they saw fit. A news
paper is no place to settle accounts.
"Centinel," however, continued his attacks. The tender
laws are said to be disastrous and cruel. In order to re
criminate, he would begin with the " Cofferer," the head of
the other party, and trace his character through the numer
ous speculations on the public, from his appointment to the
, C  1 A  y of the United States, to his resignation
as F  r." He says that Morris admits, in his letter
of AprU 8, that his accounts with the Comraittee of Com
merce are not settled. " Centinel " now had before him the
report above quoted, of the 30th of September, 1788, from
which he quotes the part about two raUlion dollars unac
counted for. By a report of a committee of February 11,
1779, it appears that the Secret Committee charged Robert
Morris with all business of commerce and exchange.
" Centinel," therefore, asks as to the two million dollars :

2i8 The Financier and the
" Is it not more than probable that he has converted the
public money to his own property, and that, fearful of de
tection and reluctant to refund, he has and wih, as long as
he is able, avoid an investigation and settlement of these
long-standing accounts .-' " ^
In the " Independent Gazetteer " of November 22, Morris
responds again. He has lately been in New York and put
his accounts in train of settlement. The large sums handled
by him only prove his zeal for the public, and the confidence
which is felt in him. " Centinel's " No. 24 and final paper
is almost entirely about Morris, in reply to this letter of
November 22. It refers to Morris's retirement to Manheim
to con the accounts of the Secret Committee in 1777 and
1778, and affirms that Morris has prevented any commis
sion from being appointed under the resolution of June 21,
1785. He now proraises to settle the accounts because the
election is coming on.
In the "Accountof Robert Morris's Property," prepared
by himself in 1800, is a series of notes on all the open
accounts in his books, One of these is with John Ross,
upon which he comments as follows : " Mr. Ross and Wil
ling, Morris, & Co., raade certain contracts, and the latter
transacted much business for the old Congress, and upon
the settlement of the accounts by officers who meant fair
ness, but who, I ever thought, did not truly understand
mercantile method and principle, and who, by charging
depreciation which I objected to, upon principles that I
thought right, although overruled by them, brought a bal
ance in favour of the United States, to which at last I sub
mitted and gave security on land which, proving deficient,
I have now assigned all my claims on Mr. Ross to the
Comptroller of the Treasury and his successor in office, in
additional security for the debt that may be ultimately
' McMaster and Stone, 693.

Finances of the American Revolution. 219
found due, for the forraer balance will be considerably re
duced by objects of credit I have discovered that were not
at the forraer settleraent brought into view. As this debt
to the United States, whatever it may prove to be, is in
fact due in part by John Ross, and after that part shall be
ascertained, the remainder is equally due by Thomas Wil
ling, Esq., and rayself, that is, each one half, I have there
fore assigned also all my claira on the said Thoraas WiUing
to the ComptroUer of the Treasury, and his successor in
office, in additional security for the balance that ultiraately
may be due to the United States, reserving in both cases
any surplus that may arise in my favour to ray heirs and
assigns. From the examinations I have lately made into
the state of matters between Mr. Willing and me, and with
Mr. Ross, I expect there will, frora these two sources, be
sufficient to extinguish that debt to the United States, ray
part as well as theirs." ^
On the books of the United States Treasury Depart
raent there is an account, dated June 29, 1796, on the
debtor side of which is a suraraary of three accounts, Mor
ris, Deane, & Co.,^ Willing, Morris, & Co., and Morris &
Ross. It is balanced on the credit side by two accounts
of Willing, Morris, & Co., and by a new account of Rob
ert Morris. Then follows another account bearing the
same date. The entry on the debtor side is Robert
Morris, Old Account, balanced on the other side, July 13,
by Robert Morris Ya of bonds. Then follows a third ac
count, July 13, of "Robert Morris, Esquire, of PhUa
delphia, Ya of bonds." On the debtor side of this stands
an entry of $93,312.63, being the balance of the first of
1 Account of Morris's Property, 29.
2 No firm of this name is met with elsewhere. The connection of Deane
and Morris here is interesting and important.

220 The Financier and the
the three accounts described. There is no entry on the
credit side.''
Here, therefore, after all, his enemies triumphed over him,
or raight have done so if they had known the facts, at the
end of his life; and, as he alleges, it was all a matter of
depreciation. ^ Other accounts with Robert Morris on the treasury books, which are
closed, are as follows : In October, 1776, an account with him, James Wil
son, and George Ross ; two items, aggregating $1,500, In 1781 there is an
account for bills of exchange. In 1785 there is an account with him, in which
he is called the contractor. In 1787 an account of specie was settled, which
has entries of 1778 and 1779, In 1788 there is an account with him as late
Superintendent of Finance, in which he is debtor to sundries, closed and
paid. In October, 1795, is an account of receipts and expenditures by Robert
Morris, admitted and certified by Tench Coxe, Commissioner of the Revenue,
and R. Harrison, Auditor of the Treasury, The sum is over $75,000. The
account is balanced and closed on the same day, and it is said to be " for
transactions with the late Commercial Committees of Congress."

Finances of the American Revolution. 221

CHAPTER XXX.
morris's social POSITION AND REL.4TI0NS.
IN 1780, on account of the British raids in New Jersey,
Mrs. Morris invited- Miss Catherine Livingston, daugh
ter of the Governor of New Jersey, and younger sister of
Mrs. John Jay, to take refuge with her.^
In 1 78 1 Robert Morris sent his two sons, Robert and
Thomas, then twelve and ten years of age, to Europe for
their education, because education here was then broken
up by the war. They were under the care of Mr. Matthew
Ridley, who went to France as coraraercial agent of Mary-
land.2 He afterward raarried the Miss Livingston just
raentioned. The boys were at Geneva five years and at
Leipsic two years, and returned in 1788.^
Morris wrote to Jay upon this occasion, as follows : " Many
considerations which it is needless to enumerate induce me
to this measure, which my judgment approves, but which,
now that it is to be carried into execution, awakens all the
tender feelings of a father. Your and Mrs. Jay's sensibility
will disclose the situation of Mrs. Morris and myself when
I tell you that these two good and well-beloved boys leave
us to-morrow. They are tractable, good boys. I hope
they will make good men, for that is essential. Perhaps
they may become useful to their country, which is very de
sirable ; and if they have genius and judgment, the educa-
1 Boogher, March, 1883, 2 Va. Papers, ii. 552.
8 Boogher, March, 1883 ; Penn. Mag. ii. 168.

222 The Financier and the
tion they will receive may be the foundation for thera to be
come learned or great men ; but this is of most consequence
to themselves. Should it faU in your way to notice them, I
am sure you will do it. I expect they will be fixed at the
schools in Geneva. This parting reminds me, my good
friend, that we are but too much the slaves of ambition
and vanity to permit the enjoyment of that happiness
which is in our power. I need not part with my children,
but— "1
Jay replied that he disapproved of educating the boys of
a free country in Europe.
Mrs. Jay, writing to Mrs. Morris on this occasion, pays a
very high compUment to Robert Morris. She says that
when things go wrong with Robert, Jr., she asks him what
his father would say upon such an occasion, telling him
that that would be sure to be right.^
In Morris's books appears an entry of the expenses of
these boys in Europe : £9,766 Penn.
Chastellux, describing a ball at the house of the French
Ambassador, says : " On passing into the dining-room, the
Chevalier de la Luzerne presented his hand to Mrs, Morris,
and gave her the precedence, — an honour pretty generaUy
bestowed upon her, as she is the richest woman in the
city ; and, all ranks here being equal, men follow their
natural bent by giving the preference to riches.^ . . . Mr.
Morris is a large man, very simple in his manners ; but his
mind is subtle and acute, his head perfectly well organized,
and he is as well versed in public affairs as in his own.
He was a member of Congress in 1776, and ought to be
reckoned among those personages who have had the
' Johnston's Jay, ii. 134, 2 Boogher, March, 1883.
' Chastellux, i. 278, In Smith's "Historical Curiosities," ii. pl. Ivii., is a
facsimile ofa dinner invitation card issued by Robert Morris to Mr. Jenifer,
November 12, 1781.

Finances of the American Revolution. 223
greatest influence in the Revolution of Araerica. He is
the friend of Dr. Franklin, and the decided enemy of Mr.
Reed. His house is handsome, resembling perfectly the
houses in London. He lives there without ostentation,
but not without expense; for he spares nothing which can
contribute to his happiness and that of Mrs. Morris, to
whom he is much attached. A zealous republican and an
epicurean philosopher, he has always played a distinguished
part at table and in business." ^
On this passage the translator remarks : " The house
the Marquis speaks of, in which Mr. Morris lives, belonged
formerly to Mr. Richard Penn. The Financier has made
great additions to it, and is the first who has introduced
the luxury of hot-houses and ice-houses on the continent.
He has likewise purchased the elegant country-house for
merly occupied by the traitor Arnold ; nor is his luxury
to be outdone by any coraraercial voluptuary of London.
This gentleraan is a native of Manchester in England, is
at the head of the aristocratical party in Pennsylvania, and
has eventuaUy been instrumental in the Revolution. In
private life he is much esteemed by a very numerous
acquaintance," ^
On the 19th of May, 1782, the Prince de Broglie sailed,
with a company of young nobles and officers, on board of
" La Gloire " from Brest, but was forced to return on ac
count of a storm. They were delayed until July 15, and
then had to stop at the Azores. The excursion seems to
have been a frolic, or an excursion of pleasure rather than
one of war. On the 13th of September the gentlemen
were put on shore on the banks of the Delaware ; fortu
nately, for the ships were captured by the English imme
diately afterward. The Prince, in his diary, says that he
reached Philadelphia August 13 ; but the other dates in
1 Chastellux, i. 199, ^ Ibid, 200.

224 The Financier and the
the context would make it September. He writes : " This
is the capital, already celebrated, of a new State. M. de la
Luzerne conducted me to the house of Mrs. Morris to take
tea. She is the wife of the Financier of the United States.
The house is simple, but neat and proper. The doors and
tables are of superb mahogany, carefully treated. The
locks and trimmings are of copper, charmingly neat.
The cups were arranged symmetrically. The mistress
of the house appeared well. Her costume was largely
of white. I got some excellent tea, and I think that I
should still have taken more, if the ambassador had not
charitably warned me, when I had taken the twelfth cup,
that I must put my spoon across my cup whenever I
wanted this species of torture by hot water to stop ; ' since,'
said he to me, ' it is almost as bad manners to refuse a cup
of tea when it is offered to you as it would be indiscreet
for the master of the house to offer you some more when
the ceremony of the spoon has shown what your inten
tions are in respect to this matter.' Mr. Morris is a large
man, who has a reputation for honourableness and in
telligence. It is certain that he has great credit at least,
and that he has been clever enough, while appearing
often to make advances of his own funds for the service
of the Republic, to accumulate a great fortune, and to
gain several milUons since the Revolution began. He
appears to have much good sense. He talks well, so
far as I could judge ; and his large head seems as
well adapted for governing a great empire as that of
most men." ^
We have also a description of a visit to Morris in 1783,
by Mr. LoweU of Boston, and H. G. Otis, his attendant
who wrote the account. They dined with thirty persons
at Morris's, " in a style of sumptuous magnificence which
' Balch, Fran9ais en Amer, 199,

Finances of the American Revolution. 225
I have never seen equalled." He says that Morris was
esteemed next to Washington.^
In 1784, when the Chevalier de la Luzerne, who seems
to have been intimate at Morris's house, returned home,
the latter wrote : " Mr. and Mrs. Morris have more sincere
good wishes for the Chevalier de la Luzerne's health, hap
piness, and safe arrival than can be expressed on this
paper." Luzerne carried with hira a shoe of Mrs. Morris,
in order that he raight send from Paris " six pairs of fash
ionable shoes to the size of the old pair." ^
In the same year the Morrises extended hospitalities and
kindness to Jefferson's daughter, for which Jefferson made
hearty acknowledgment.^
In 1785 Morris becarae involved in a somewhat ridicu
lous quarrel with Marbois. The latter was about to leave
Philadelphia. He had in his posssesion portraits of the King
and Queen of France, which had been sent to Congress ;
but he had not been able to deliver thera, because Congress
had no abiding-place. He now asked Morris to take charge
of thera until they could be brought to New York. Morris
consented, but preparations were made to unpack them.
To this Marbois objected in writing. Morris wrote back
in some irritation, as if he resented the suspicion that he
was making an idle display of vanity by putting up the
portraits in his own house. He said that he meant to lock
them up. In a letter to Jay of the same date he shows
that he was not on good terms with Marbois. The latter,
however, replied courteously, repudiating the suspicion
which had been ascribed to him, and proposing to deliver
the pictures to Congress himself.*
In 1795 John Adams wrote to his wife that he had had
1 Hist. Mag, i, 262. = Boogher, March, 1883.
8 State Dep. MSS, Hamilton Papers, xx, 69,
4 Dip. Corr. U. S. i. 184.
VOL. II. — 15

226 The Financier and the
a big dinner with Robert Morris, " whose hospitality is
always precious," ^
Morris wrote to his wife from New York, April 22, 1790,
about the news of the death of Franklin. He said that
Franklin delighted to make as many people happy as he
could. 2
Through the Secret Comraittee and the Marine Com
mittee Morris became acquainted with Paul Jones, and in
terested in him.^ In 1777 the Marine Committee gave
Jones a coramission as captain. He was sent out in com
mand of the " Ranger," but expected to have " L'Indien."
This ship, however, belonged to the King of France. In
1780 Jones was in command of the "AUiance," and was
to bring her to America ; but Landais, with the approval
of Arthur Lee, ran away with that ship. On the voyage
Landais behaved in such a way as to raise doubts of his
sanity, and was deposed from the command. Jones ap
pealed to Morris, although he was not then in Congress or
in any office, probably because he thought him a powerful
friend. He attributed Lee's animosity to the fact that
Jones adhered to Franklin, and he said that stores had
been left behind which he, Jones, had obtained.* Landais
had a claim for money which Morris would not pay. In
April, 1782, in Morris's office, Landais threatened violence.®
In that year Jones was here, and was promised command
of the " America." That ship was given to the King of
France to replace the " Magnifique," sunk in Boston har
bour ; but really, at Morris's suggestion, because there were
no funds with which to finish her. It fell to Morris's lot
to inform Jones of this new disappointment. He bore it
so well that Morris wrote again to express his sympathy
1 Adams's Letters to his Wife, ii. 176, 2 j^ist. Majs Ort. 1858.
2 5th Ser. Am. Arch, ii, 172, 1105. * Franklin, viii. 484.
s State Dep, MSS, 1,37, i. 419.

Finances of the American Revolution. 227
and esteem.! j^jy j3^ 1792, at Paris, Jones was dying.
He sent for Gouvemeur Morris, who made his wUl for
him. Jones wanted the two Morrises to be his executors.
Gouvemeur excused hiraself, but Robert was naraed.^
Jones bequeathed to Robert Morris the sword which had
been given to hira by Louis XVI. Morris gave it to the
oldest coraraander in the navy in succession,^
Manasseh Cutler raentions Morris's country-seat on the
SchuylkUl ("The Hills") in 1787. Itwas then unfinished.
He said that it would be very grand.* This spot is now in
the Fairmount Park, just above the old water-works. When
it was in the country, it must have been an extreraely beau
tiful spot. Morris bought it in 1770. He called it "The
HiUs," but it was later called " Leraon Hill." It was after
ward owned by the second Bank of the United States,
and was bought by the city frora the assignees in 1844 for
^75,000, which was less than one third of the value at which
it was held by the bank.^ In the schedule of the Penn
sylvania Property Corapany an estate of Morris is raen
tioned caUed the Trout Springs estate, in Upper Merion,
in Montgomery County. It was about twenty miles from
Philadelphia, and two and a half frora Swede's Ford, on
the Schuylkill. In the " Account " of his property he men
tions an estate caUed Springetsbury.^ We are informed
that there were two manors of Springetsbury in Pennsyl
vania, — one in York County; the other lay between the
city of PhUadelphia and " The HiUs." '
During the Revolution Robert Morris lived on Front
Street, below Dock. In August, 1785, he bought some
land on High Street east of Sixth, with the ruins of the
1 Paul Jones, i, 289. "^ Morris's Morris, i. 555 ; ii. 45.
8 Homes's Sketch, 15. * Cutler's Cutler, i. 257.
6 Westcott, 380. ' See vol, i. p, 303.
' See Westcott, 367.

228 The Financier and the
Penn house, which had been burned in 1780. He rebuUt
the house. It was the finest in Philadelphia at the tirae,
of brick, three stories high. The main part was forty-five
and one-half feet by fifty-two, and there was an addition
twenty by fifty-five. There was stabling for twelve horses,
and a garden around it. When the federal government
moved to Philadelphia, he gave up this house, which was
taken by the city of Philadelphia as a residence for General
Washington. Washington complained that it was not big
enough, and was very scrupulous not to accept anything in
the way of gift from the Morrises in the transfer.^
In 1 79 1 Morris took the house which formerly belonged
to Galloway, on the corner of Sixth and Market Streets.
In 1795 he bought the square of land bounded by Chest
nut, Walnut, Seventh, and Eighth Streets, except a lot
fifty by two hundred and fifty, on the corner of Seventh.
The land cost ^10,000.^ The ground was then ten or
fifteen feet above the present level. He employed Major
L'Enfant, one of the engineers then employed at the
city of Washington, to build him a large mansion on this
piece of ground. The house was begun in 1795, and work
was continued on it until 1800. There is a picture of it in
Watson's Annals, and in Westcott. The house is repre
sented with the roof finished and the windows boarded up.
It never was finished, but was torn down and the materials
were sold. The land was bought by William Sansora.
There are very many extravagant and contradictory
legends about this house, which came to be known as
" Morris's Folly." The account which seems most trust
worthy states that the house was of brick with window
and door trimmings of a pale blue stone. It was between
^ Penn. Mag. ii, 173 ; Rush's Washington, xvi. There is a cut of this house
in the Mag. Amer. Hist, xvii, 365,
2 Simpson, 711.

Finances of the American Revolution. 229
eighty and one hundred feet by between forty and sixty.
The total amount expended on it, according to Morris's
books, was ^6,138 5J. io<^., say ^16,369.^
In 1796 Callender published the foUowing reference to
the new house : " A person is just now building, at an
enorraous expense, a palace in Philadelphia. His bills have
long been in the market at eighteen pence or a shilling
per pound. This is the condition of our laws for the re
covery of millions. At the same time the prison at
Philadelphia is crowded with tenants, many of whora are
indebted only in petty sums."^ Lossing states, perhaps
on the sarae authority, that Morris went on seUing his
notes at twenty cents on the dollar, when building his
house.^ In the " Account " of his property, when speaking about
his Chestnut Street lot, Morris writes : " Upon which Ma
jor L'Enfant was erecting for me a much raore magnificent
house than I ever intended to have buUt." When he comes
to L'Enfant's account in the same document, he notes that
that gentleraan was a creditor for services rendered, al
though he had not rendered an account. " Various cir
cumstances render me little solicitous on the score of his
services, but he lent me thirteen shares of bank stock dis
interestedly, and on this point I feel the greatest anxiety
that he should get the same number of shares, with the
dividends, for want of which he has suffered great distress."
He is put into the Genesee assignment.
1 Westcott, 360. 2 Annual Register, 1796, 279,
' Am. Hist. Rec. ii. 305.

230 The Financier and the

CHAPTER XXXI.
MORRIS IN THE SENATE OF THE UNITED STATES.
MORRIS and Maclay were elected the first Senators
from Pennsylvania. Morris drew the long term,
from 1789 to 1795. He was present on the 4th of March,
1789. We are chiefly indebted to Maclay's diary for our
knowledge of him during the first two years of his service
in the Senate.- It is probable that he scarcely attended
during the last two or three years, when he became
occupied in building the city of Washington.
He objected to the title for the President of the United
States, " Highness and Protector ofthe Rights of America."
He opposed the discriminating duties against non-treaty
nations, but wanted a discriminating duty to favour our
own ships in the tea trade. He argued that a dollar sent
to Europe for East India goods would not import more
than half a dollar sent to the East Indies. He was by no
means bitten with the protectionist mania. He held that
the raanufacturers of Pennsylvania would be better off
under seven and a half per cent than under twelve and a
half. He said that the manufacture of paper was in the
most flourishing condition, and that paper was largely ex
ported. He seems to have defeated the proposition to
raise the whole seven and a half per cent class to ten
per cent ; but he favoured ten per cent on scythes, axes,
spades, and hardware. He gave great dissatisfaction to his
colleague, who held all the old notions in their narrowest
and most rigid form. Morris was only half emancipated

Finances of the American Revolution. 231
frora thera ; but that sufficed to irritate Maclay, who
said, " His weight in our Senate is great on commercial
subjects." There were very few of his colleagues, or of the executive
officers of the time, who succeeded in pleasing Maclay.
There were two things that he wanted, — protective taxes
on Pennsylvania industries, and the seat of the federal gov
ernment at Harrisburg, where he owned some land. The
only times when he was satisfied with the rest were when
they were supporting those measures. He was also sustain
ing the character of a "rigid repubUcan," which was no small
burden in those days. It forced him to be on his guard
against General Washington when that gentleraan invited
hira to dinner and treated him with courtesy. He was a
Jeffersonian before Jefferson.
Morris wanted the Senators paid ^8 a day. He " almost
raged ; and in his reply to rae, said he cared not for the arts
people used to ingratiate themselves with the public." He
" likewise paid himself some compliments on his manner
and conduct of life ; his disregard of money and the little
respect he paid to the common opinions of people. ... I
answered Mr. Morris in a way that gave him a bone to
chaw." In the debate on the pay of Senators, " the doctrine
seemed to be that aU worth was wealth, and all dignity of
character consisted in expensive living." He raentions
Morris as one who led in this view. Carroll of Maryland,
although the richest raan in the United States, did not
agree with it.
Maclay had' a horror of HaraUton, and of funding and
assuraption. He thought that it was all corrupt, and that
Morris was deep in it.
He thinks that HamUton's recommendation to fund the
certificates of the debt wUl " damn the character of Hamil-

232 The Financier and the
ton as a rainister forever. ... It appears that a systera
of speculation for the engrossing of certificates has been
carrying on for some time. Whispers of this kind come
from every quarter. Dr. Elmer told me that Mr. Morris
must be deep in it, for his partner, Mr. Constable, of this
place, had one contract for ^40,000 worth. The Speaker
hinted to me that General Heyster had brought over a sum
of money from Mr. Morris for this business. He said the
Boston people were concerned in it. Indeed, there is no
room to doubt but a connection is spread over the whole
continent on this villainous business. ... I call not at a
single house or go into any company but traces of specu
lation in certificates appear. Mr. Langdon, the old and
intimate friend of Mr. Morris, lodges with Mr. Hazard.
Mr. Hazard has followed buying certificates for some time
past. He told me he had made a business of it ; it is easy
to guess for whom. I told him 'You are, then, among the
happy few who have been let into the secret.' He seemed
abashed, and I checked by my forwardness much more
information which he seemed disposed to give."
A North Carolina member said that he met two ex
presses with money on the way to North Carolina, to specu
late in certificates. " Wadsworth has sent off two small
vessels for the Southern States, on the errand of buying up
certificates.'' Butler and Izard of South Carolina manifested antipathy
to Morris. January 21, 1790, Maclay reached the point
where all confidence between him and Morris was at an
end. " There never was any between me and any of the
Philadelphians." Morris was one of those who treated the
proposed amendments to the Constitution contemptuously.
He insisted on a rate of six per cent for the whole domestic
and assumed debt, otherwise he said that he would vote
against the whole. He thought the State boundaries in-

Finances of the American Revolution. 233
convenient, and favoured the proposition in the excise bill
to raake excise districts independent of State boundaries.
This also alarraed Maclay, who said: "AnnihUation of
State government is undoubtedly the object of these
people." Morris expressed himself very strongly against
the doctrine of instructions. " We were Senators of the
United States, and had nothing to do with one State
more than another."
He often talked with Maclay about the settlement of
his accounts, which led Maclay to this comraent : " Mr.
Morris chatted with great freedom with me to-day on his
private affairs, explained some of the difficulties he had
raet with in the settleraent of his accounts ; says the bal
ance will be in his favour ; declares he will soon have done,
and put to sUence his adversaries. Justice says plainly
this ought to be the case, if he has been injured. He is
very full of the affair between him and rae [about land
purchases in western Pennsylvania]. His countenance
speaks the language of sincerity and candour. Interest,
however, the great anchor to secure any raan, lies at the
bottora. Maclay detested New York. Although he does not seera
to have been fond of company, he cbmplained of inhospi-
tahty. "These Yorkers are the vUest of people; their
vices have not the palUation of being raanly." He men
tions their caricatures in ridicule of the Pennsylvanians,
no doubt referring to those against Morris. One of these
represented Bobby raarching off with the federal ark on his
shoulders, the devU being represented on the Jersey City
ferry-house, calling to hira, "This way, Bobby." ^
At a raeeting of the Pennsylvania delegation in 1790 the
question was raised who should be next Governor of Penn
sylvania. Morris was one of the chief candidates,^ Morris,
1 Mag, Amer, Hist. xvii. 370. * Maclay, 200, 255.

234 The Financier and the
as one of the leaders of the republicans, supported General
St. Clair against Mifflin ?¦
Maclay left all the social duties, especiaUy that of attend
ing levees, to Morris, but in Morris's absence was forced
to undertake it.^ Mrs. Morris went from PhUadelphia to
New York with Mrs. Washington.^ Maclay mentions a
dinner at the former's house. She talked a great deal after
dinner, but gracefully enough. She is considered the second
lady at court. As to taste, etiquette, etc., she is certainly
the first. She seemed to like New York ; but he disliked
it so much that he may have raisjudged. She told a story
of having some cream at the President's table which was
stale and rancid, but Mrs. Washington ate much of it. She
said that General Washington had declared in favour of
generous salaries. Maclay thought this might be the
effect of the high-toned manners of the pompous people
of New York.
I Biddle, 244. 2 Maclay, 227. = Penn. Mag. ii. 172.

Finances of the American Revolution. 235

CHAPTER XXXII.

THE FEDERAL CAPITAL.

APRIL 10, 1783, the delegates of Virginia inforraed the
Governor of that State that New York had offered
to Congress a tract of land in the township of Kingston,
or Esopus, with privileges of jurisdiction in civil raatters.
They propose that Virginia and Maryland shall offer a
sraall tract on the Potoraac, near Georgetown, granting
wider jurisdiction than that offered by New York. They
think that the position would be more central and more
agreeable.! June 4, Congress sent to the States the offer of Mary
land to cede Annapolis, and of New York to cede King
ston, for a federal capital, with notice that said offers
would be considered on the ist of October.^ On account
of the behaviour of the government of Pennsylvania dur
ing the rautiny in June, Congress raoved away frora
Philadelphia, under a strong feeling of resentraent and
unwiUingness to sit there again. They believed that the
rautiny had proved that Congress raight be overawed by a
mob in that place, and would have no protection. In Oc
tober they determined to take the question in what State
the public buildings should be erected, by beginning with
New Hampshire and voting through the list. The result
proved that there was no agreement at alj.^
1 Va. Papers, iii. 467. ^ Journ, Cong, viii. 199, ^ Ibid. 286.

236 The Financier and the
October 7, it was voted that the buildings for the use of
Congress should be erected near the falls of the Delaware
if a site could be obtained, and if the necessary jurisdiction
could be vested in Congress. A coraraittee was appointed,
to exaraine the site.^ This vote caused great dissatisfac
tion, and on the 20th they voted that a second federal city
should be built near the falls of the Potoraac, with an
araendment on the 21st that, until buildings were erected
on the Delaware and the Potomac, the residence should be
alternately, at equal periods of not more than a year, and
not less than six months, in Trenton and Annapolis.
At the beginning of 1784 Osgood, who represented well
the State rights party, was opposed to placing the capital
in a large city for fear of intrigues, and favoured two alter
nate capitals as a device to prevent intrigues.^
In April, 1784, various raotions to build buildings at the
two proposed federal capitals failed, and on the 26th' it was
voted that the President of Congress should convene that
body on the 30th of October foUowing at Trenton,^
In May the accounts show entries of the expenses of com
mittees who visited the proposed sites on the Delaware and
the Potomac, — ^46 for the forraer, and $6\ for the latter.
December 10, 1784, a motion was made that Congress
ought to adjourn from their present residence, — Tren
ton, — but it was lost. On the 20th they voted that it was
inexpedient to erect buUdings at more than one place. On
the 2 1st they resolved that it was expedient to determine
on one place at which they would sit until proper buildings
were erected. On the 23d the battle opened between the
site on the Potomac and the site on the Delaware ; but
Virginia alone voted to put it at Georgetown exclusively.
There was a great majority against continuing at Trenton.
^ Journ. Cong. viii. 295.
^ Mass. Hist. Soc. Proc. March, 1862, 466, ^ journ, Cong, ix. 115.

Finances of the American Revolution. 237
A raotion to go to Philadelphia was lost, — five to four.
Newport got only the vote of Rhode Island. They then
voted to go to New York, Pennsylvania alone in the nega
tive ; and they appointed a coramission to lay out a federal
town on the Delaware, purchase the land, and contract for
buUdings.^ February 10, 1785, Phihp Schuyler, Phileraon Dickinson,
and Robert Morris were elected Commissioners under the
resolution for building a federal city on the Delaware.
Schuyler declined, and John Brown was elected in March.''^
Morris accepted the position. On the 2d of May he wrote
to Congress frora New York that part of the Comraissioners
were there, but that Brown had not come. They were ar
ranging for buildings to accoraraodate Congress at New
York.3 May 10, 1787, a resolution to meet at PhUadelphia was
lost, and a proposition to erect buildings at Georgetown
was lost.*
HamUton wrote to WUliam Livingston, August 29, 1788,
that the Northern States did not want to strengthen Penn
sylvania by establishing the federal city at Philadelphia.
If the capital was placed there, it would stay there. It
raight be placed on the Delaware, in New Jersey, at least
teraporarily, if it could be kept away from Philadelphia.®
Maclay says that he and Dr. Rush brought Adams for
ward for Vice-President, and puffed hira in the newspapers,
in order to play on his vanity and use him among the
New England men, in their scheme of bringing Congress
to Philadelphia.^
On the 25th of August, 1789, in the new federal Con-
1 Journ. Cong. x. 14, 2 n^id. ^7^ 35^ jS.
2 State Dep. MSS. 137, App. 377 and 389.
* Journ. Cong. xii. 51. * Hamilton's Works, viii. 195.
6 Maclay, 86.

238 The Financier and the
gress, Morris proposed the falls of the Delaware for the
federal city. He owned a large tract of land at Morris
vUle, opposite Trenton.^ Maclay proposed Lancaster and
six other places in Pennsylvania, including Harrisburg,
near which place he owned two hundred acres.^ Morris
declared that he would not vote for a site on the Susque
hanna. August 29, Maclay heard a story that the Vir
ginians and Pennsylvanians had made a bargain to fix a
temporary residence at Philadelphia, and the permanent
one on the Potomac. His diary shows the intrigue and
dicker about the permanent capital. The Pennsylvanians
were dickering with the Virginians on the one side and the
New Englanders on the other, and they divided into two
sets, — one of which was trying to carry the Virginia bar
gain, and the other the New England bargain ; while
Morris was working for his own situation on the Dela
ware, and others for other places in which they were in
terested, Maclay says that the Virginia terms seemed to
be, " Give us the permanent residence, and we will give
PhUadelphia the temporary residence." September 3, 1789,
Goodhugh moved in the House that the city should be on
the Susquehanna, as the sense of the Eastern States with
out New York.^
September 3, 1789, Morris was working against the Sus
quehanna. He had said that the capital ought to be at
Philadelphia or New York, as Maclay thinks, on account
of commerce. September 4, Goodhugh's motion was car
ried, at which Morris was greatly chagrined. " It has long
been alleged in this place that Mr. Morris governed the
Pennsylvania delegation, and I believe this idea has pro
cured Mr. Morris uncommon attention. This delusion
must now vanish. . . . He mentions with apparent regret
some rich lands in the Conestoga Manor, which he
1 See page 175. 2 Maclay, 88, 134. 8 jbid. 145.

Finances of the American Revolution. 239
had exchanged with John Musser for lands on the
Delaware." ^
September 7, the Susquehanna site was carried in the
House. Maclay maintained that nothing would corae to
the Atlantic rivers frora the western waters. " If it should
the Susquehanna has the advantage in the double connec
tion by Juniata and the west branch." September 16, he
finds that Gerraantown is the place to be played against
the Susquehanna. The Marylanders now insisted, as a
condition, that Pennsylvania and Maryland should consent
to the satisfaction of the President, that the navigation of
the Susquehanna should be cleared. The Philadelphians
opposed this, believing that it would build up Baltimore.
Hence they opposed the capital on the Susquehanna.^
Septeraber 23, the Pennsylvania delegation had reached
the point of voting for the Susquehanna site, if they could
do it without agreeing that the navigation of the rivers
should be iraproved ; but if not, then they would abandon
the Susquehanna and try for the faUs of the Delaware and
Gerraantown. Morris was very angry against the proviso.
He said that Pennsylvania would allow the Susquehanna
to be opened if Maryland would agree to a canal between
the Chesapeake and Delaware bays, although Maclay
showed hira that there was a law of Pennsylvania for
opening the river, with no condition in it. Maclay now
becarae very angry with the Philadelphians. They never
have been earnest for the Susquehanna. " Thus bare
facedly to drive away Congress frora the State, rather than
a few barrels of flour shaU pass by the Philadelphia market,
in descending the Susquehanna; and rather than the in
habitants of this river should enjoy the natural advantages
of opening the navigation of it," On the 24th of Septem
ber Morris voted against the Susquehanna ; so did aU the
1 Maclay, 147. ^ Ibid, 150.

240 The Financier and the
New England raen except Johnson. " Mr. Morris's vote
alone would have fixed us on the Susquehanna forever."
Morris offered, in behalf of Pennsylvania, ^100,000 to fix
the capital at Gerraantown; and if the State would not
give the raoney, he would raise it hiraself. " A vacant
stare on this seemed to occupy the faces of the Senate."
This was a proposition for a district ten miles square, in
cluding Germantown. Maclay voted against Germantown,
on account of the unwarranted offer of money, which, he
says, "knocked down the Susquehanna." Germantown
was carried by the casting vote of the Vice-President in
the Senate. It passed the House, but with a little amend
ment which sent it back to the Senate; and so it went
over the session.^
Morris wrote to Peters, September 13, that he wanted
the federal city as near Philadelphia as possible, and that
if the State Convention had not excepted PhUadelphia, he
would have tried to raake that the capital. He is deter
mined to vote first for the Susquehanna, second for Ger
mantown, third for the faUs ofthe Delaware. If the mem
bers from North Carolina arrive, the Potomac wiU be
chosen. If those frora Rhode Island and Vermont arrive.
New York will be the capital.^
In November Madison visited Morris at PhUadelphia
and found him dissatisfied with the existing arrangement
about the federal capital. He did not want it at New
York.3 December 10, the House of Delegates of Virginia trans
mitted to the Legislature of Maryland a copy of an Act
to cede ten miles square on the Potomac to the United
States. Virginia proposed joint action with Maryland, if
land from both States would be more convenient, and
1 Maclay, 159. 2 peters Papers.
8 Letters to Washington, iv. 293.

Finances of the American Revolution. 241
declared that Virginia would give $120,000 for buildings,
if Maryland would give three fifths as rauch. ^
Morris carae to the next session prepared to vote for a
federal city on the Susquehanna.^ In May, 1790, Maclay
wrote that the PhUadelphians were very indifferent about
the question of perraanent residence. May 20, the New
England raen raade a proposition in favour of Trenton,
which pleased Morris ; but Maclay objected to the position
of Pennsylvania, which forced her to bargain either with
the East or with the South. On the 24th of May Morris
proposed that the next session should be held in Philadel
phia.^ Maclay told the Senate that " PhUadelphia was a
place they never could get as a permanent residence. The
government of Pennsylvania neither would nor could part
with it. It was nearly equal to one third of the State in
wealth and population. It was the only port belonging to
the State."* As soon as the proposition for a federal capital
took the shape of a cession of territory, to be held by the
United States, outside of any State jurisdiction, the large
cities, Philadelphia and New York, were both put out of
the question. May 30, the Pennsylvanians told the New
Englanders that they would agree to any other place what
soever, rather than stay in New York, May 31, the House
voted that the next session should be held in PhUadelphia.
Maclay complains that Morris was negligent and absent at
the crisis of this business. He gave as an excuse that his
accounts engaged him so closely. On June 8, 1790, this
question carae to a crisis in the Senate. Two sick men
were brought in, one on a bed and one in a sedan chair,
but all the motions were defeated without a result.®
June II, the House of Representatives voted to fix the
capital at Baltimore. On the 14th Tench Coxe, Assistant
1 Va. Papers, v. 75. 2 Maclay, 192. ' Ibid, 267, 269.
« Ibid. 274. ' Ibid. 277.
VOL. IL — 16

242 The Financier and the
Secretary of the Treasury, proposed to Maclay a bargain,
that Pennsylvania should have the permanent residence on
the Susquehanna, and vote for assumption. Morris told
Maclay of this same proposition ; but preferring to deal
with the principals, Morris had written to Hamilton that he
would walk in the morning on the Battery, and if Hamilton
had anything to propose to him, Morris, he might meet
him there, as if by accident. They met, and Hamilton
said that he wanted one vote in the Senate and five in the
House, and if he could get them, would agree to put the
residence at Germantown or the Delaware.' Morris agreed
to consult the Pennsylvania delegation, but proposed that
the temporary residence of Congress in Philadelphia should
be the price. Next day, however, Hamilton sent him word
that he could not negotiate about the teraporary residence.^
June 15, "Mr. Morris called me aside and told me that
he had a communication from Mr. Jefferson of a disposition
of having the temporary residence fifteen years in PhUa
delphia, and the permanent residence at Georgetown on
the Potomac, and that he, Mr. Morris, had called a meet
ing of the delegation at six o'clock this evening at our lodg
ing on the business. . . . The delegation raet at six. I
was called out. However, when I came in, what passed
was repeated to mg, Hamilton proposed to give the per
manent residence to Pennsylvania at Germantown or the
falls of the Delaware, on condition of their voting for the
assumption. In fact, it was the confidential story of yester
day all over again. Mr. Morris also repeated Mr. Jeffer
son's story ; but I certainly had misunderstood Mr. Morris
at the hall, for Jefferson vouched for nothing." '^
June 18, "Never had a man a greater propensity for
bargaining than Mr. Morris. Hamilton knows this, and is
labouring to make a tool of hira." ^
1 Maclay, 291. 2 il^id, 294, ' Ibid. 299.

Finances of the American Revolution. 243
June 25, Walker told Maclay that the Pennsylvania dele
gation had, in a general meeting, agreed to place the per
manent residence on the Potomac, with the agreement that
the temporary residence should reraain ten years at Phila
delphia. Morris said that he was satisfied with ten years.
June 28, in the Senate, a vote was carried for New York
for teraporary residence for ten years, but the whole reso
lution was defeated. On June 30 the temporary residence
at Philadelphia passed the Senate. Maclay says : " I am
fully convinced PhUadelphia could do no better. The
matter could not be longer delayed. It is, in fact, the
interest of the President of the United States that pushes
the Potoraac. He, Washington, by raeans of Jefferson,
Madison, CarroU, and others, urged the business; and if
we had not closed with these terms, a bargain would have
been made for the temporary residence in New York.
They have offered to support the Potomac for three years'
temporary residence, and I am very apprehensive they
would have succeeded, if it had not been for the Pennsyl
vania threats that were thrown out of stopping all business,
if an attempt was made to rob them of both temporary and
permanent residence." ^
Maclay is convinced that residence, assumption, and six
per cent rate were all bargained and contracted for on the
principle of rautual accommodation for private interest.
"The President of the United States has, in my opinion,
had a great influence in this business. The game was
played by him and his adherents of Virginia and Maryland
between New York and Philadelphia, to give one of those
places the temporary residence, but the permanent resi
dence on the Potomac. I found a demonstration that this
was the case, and that New York would have accepted of
the temporary residence if we did not ; but I did not then
I Maclay, 305.

244 The Financier and the
see so clearly that the abominations of the funding system
and the assumption were so intimately connected with it.
Alas that the affection, nay, almost adoration, of the people
should raeet so unworthy a return ! Here are their best
interests sacrificed to the vain whira of fixing Congress
and a great commercial town, so opposite to the genius of
the southern planter, on the Potoraac ; and the President
has become, in the hands of Hamilton, the dish-clout of
every dirty speculation, as his name goes to wipe away
blame and sUence all murmuring." ^
A letter from Ames to Minot, June 23, 1790, is quoted,
that a bargain was first made between the anti-assumption-
ists and the Philadelphians, that the capital should be at
Philadelphia for fifteen years and then on the Potomac;
but when the bill came up, this bargain being known,
Philadelphia was stricken out and Baltimore put in. By
the rules of the House, Philadelphia could not be again
inserted. Then assumption was defeated, whereupon the
New England men threatened to secede.^
July 16, the law was passed fixing the temporary resi
dence for ten years at Philadelphia, and then the perma
nent residence at the falls of the Potomac.
Morris was very angry because the full six per cent rate
was not provided on the whole domestic debt; but Maclay
told him that since Philadelphia had won the temporary
residence, they ought to " guard the Union and promote
the strength of the Union by every means in our power ;
otherwise our prize would be a blank." ^ Maclay said that
the '• effect must be sensibly felt in PhUadelphia should a
great commercial town arise on the Potomac." He thought
that the Philadelphians imagined that Congress would be
so pleased at Philadelphia as never to leave it ; but the
allurements of New York were ten times as great as those
1 Maclay, 328. 2 McMaster, i. 581. » Maclay, 329. ^

Finances of the American Revolution. 245
of Philadelphia. PhUadelphia is unsocial, and the Quakers
proscribe dress and amusements.^
Beckwith, the English agent, quotes some Araerican as
saying, in 1790, that the session just closed had lowered
Congress in public opinion, partly on account of the bar
gain connected with the residence and the assumption of
the debt. These bargains were well known at the time.^
In 1 791 the proprietors of the land on which the city of
Washington was to be laid out conveyed it to Thomas
Beall and John M. Gaunt in trust, to be laid out in a city
as the President should approve ; and said trustees were to
convey to the Comraissioners for the federal city all lands
laid out in streets, parks, etc., and such as were allotted to
the use of the United States. Other lands in the trust
were to be equitably shared, and a part was assigned to the
public. This latter part was to be sold as the President
should direct. The sura thus obtained was to be used,
first, to pay the original proprietors for all that part, ex
cept the streets, which was assigned to the United States,
at ;^25 per acre, and secondly, to be expended under the
direction of the President for the purposes of the federal
city.^ At the beginning of August, 1791, the Coraraissioners
for the federal city, Johnson, Stewart, and Carroll, wrote
to the Governor of Virginia that they were in erabarrass-
ment for want of money. The sum they needed was
;^6,ooo. During 1792 they were begging Virginia for
driblets of the money which that State had proraised for
the federal city.*
1 Maclay, 340. 2 Canadian Archives, i8go, 151.
' Report of 1800. A description of Washington City from the Maryland
" Journal " was given in the " New York Magazine " for November, 1791 ;
and a map of the city, as subsequently laid out, was given in the same maga
zine for June, 1792.
* Va. Papers, v, 353, 356, 465, 572.

246 The Financier and the
The Capitol was begun in September, 1792. On the
i8th Washington laid the corner-stone.^ Not raany lots
were sold until 1793, when Robert Morris and James
Greenleaf bought 6,000 lots, averaging 5,265 square feet
each, at eighty doUars each, payable in seven annual
instalments, without interest, beginning May i, 1794.
They agreed to build annually twenty brick houses,
two stories high, and covering 1,200 square feet each.
They also agreed to sell no lots before January i, 1796,
except upon condition that one such house should be
built on every third lot within four years from the time
of sale. In 1794 John Nicholson took a share in this
contract.^ The Due de Liancourt says that Morris and his partners
bought about as much more of private owners as frora the
Commissioners. The object ofthe Commissioners in the
large sales to Morris and his partners was to interest men
of large means ; but no other big lots were sold. Morris
and his partners sold half their lots to other rich specu
lators, obtaining at least $293 a lot, with obligation on the
purchaser to build. In the first eighteen months Morris
sold about 1,000 lots, of which Law bought 445. Law had
just returned frora India. Dickinson was another buyer
in similar circumstances. Others who bought were Lee
and Howard, and some Dutchmen. The land sold for
five, six, eight, and even ten pence, Maryland currency, per
foot, with a contract to build. Blodgett, of Philadelphia, was
another speculator in Washington lots. He got up two
lotteries. The first prize in the first was a tavern, valued
at $50,000; in the second lottery the first three prizes
were three houses, to be built near the Capitol, valued at
$25,000, $15,000, and $10,000. He made profits by these
lotteries. 1 Elliot, District, 97. 2 Report of 1800.

Finances of the American Revolution. 247
The speculators began to vie with each other in efforts
each to draw the city to his own section, because all saw
that it was too big. Morris, Nicholson, and Greenleaf
were forced to mortgage their lots, and could not go on
with the iraprovements. They tried to escape the building
obligation ; hence those who bought of them tried to do
the same. Law, who was very rich, engaged his fortune
in the enterprise.^
Greenleaf, Nicholson, and Morris held on equal shares.
The total number of lots owned by them was 7,234. They
sold 769 lots. On July 10, 1795, Morris and Nicholson
bought Greenleaf's share in the residue, and also bought
of him 1,316 lots, with a reservation to hira of 25. Thus
they had 7,756 lots. In 1800 Morris wrote: "On some
of these lots there were erected between forty and fifty
brick houses, some of which were finished and others
nearly so ; but raany of thera have suffered great damage
by neglect, pillage, etc., so as to be now in a most ruinous
situation. There were also several frame buildings, some
of which were sold, others pulled to pieces and plundered,
etc. It is not possible for me to delineate all the erabar-
ras.sments that hang over this property, because there are
several of which the particulars are not known to me." ^
He enumerates the mortgages which were placed on vari
ous portions of this land for the loans which he and
Nicholson contracted, although the total amount mort
gaged does not amount to half of what he says that they
ojvned. StUl he says that there were other incumbrances
c^n behalf of Nicholson, the details of which he does not
Ijinow, and also Nicholson and Morris conveyed all their
interest in Washington in 1 797 to the trustees of Greenleaf,
<o secure the payment of the obligations of Greenleaf,
pndorsed or accepted by Edward Fox to the araount of
1 Liancourt, vi. 128, 132, 164. ^ Account, 7.

248 The Financier and the

seven or eight hundred thousand dollars. 'J'o ej^yre the
same notes, Greenleaf had conveyed to the sam, trustees
property estimated at frora four to six hundred housand
doUars. All this property was to revert to Nicho ggj^ ^^j.,jj
Morris on payment of the notes for which Fox w^g Ji^ble
and also the trustees were to give them back their -,^jj obli
gations which they had paid to Greenleaf, to the a^^^^^ ^f
a million and a quarter. This bargain was made jjj ,\^®t
and this trust is called the " Aggregate Fund." ."^^^^
enumerates six " riders " on this agreement, secu.}j,„ ^g
payraent of about $145,000 to different persons oit of tbie
surplus, if there should be any. Still again Mo^j,j,g ^jj^j
Nicholson forraed a corapany having 300,000 shj^j-gg jj^
which each of them had an equal interest, for the rever
sion of the residuum in this trust. Out of his owp Vj,jjf of
these Robert Morris transferred to various per-sCjjgv ^g
security for debt 53,650 shares, "or thereabouts." gg.
sides the incumbrances on the Washington estate, ^Iriady
mentioned, there had been attachraents, executions, Sjgg
bills in chancery, etc., " the particulars of which I ^,^
not acquainted with, as verbal information is all I^iavg
had." 2
The Committee of Congress of 1 800 say that ini'i7Qt
the contractors failed to pay the instalments due,, and ((jg.
continued the buUding of the Capitol, on whichi so j,e
unimportant work had been done. In 1796 Congr^gg
authorized a loan of $300,000 for the building; but tl^t
amount could not be borrowed. Finally Marylar3| Itjj^
the Commissioners $200,000 in United States six per:ce,(-
stock, on the guarantee of Congress and the indi^
bond of the Commissioners. In 1798 Congress or^
$100,000 advanced to the Commissioners. In 1799
land lent $50,000 in stock of the United States, to bl;*re;"
' See page 285. 2 Account, 8.

Finances of the American Revolution. 249
paid in 1802, all unsold land being given as security.^ The
Coraraittee estiraated the property of the United States in
the district at $884,819. The debts due for land to the
Coraraissioners araounted to $144,125. The debts of the
Comraissioners were $360,881. In this account Morris and
Greenleaf stand debtors for $115,241, of which $80,000 is
stated to be " doubtful and not expected to be received."
It was due for lots purchased by thera. Many of these
lots had been sold by thera on credit, the proceeds of
which would be credited on the debt of Morris and
Greenleaf.^ A Committee on Expenditure at Washington, in 1801,
reported that the contract of Morris and Nicholson had
thrown titles into doubt. Congress ought to resolve these
doubts. The Comraissioners have estimated the lots too
highly, and the income from the sale of lots cannot be
relied on as a resource to build the buildings.^
Callender, in 1796, derided the federal city. " The
name of this city has produced more than half the patience
with which its expenditures have been endured." He
wanted the capital at Philadelphia. The monarchical
party, in 1787, put into the Constitution, he said, the pro
vision for exclusive jurisdiction over a district ten miles
square.* In 1804 the surveyor of public buildings reported that
the Capitol was very poorly built, and very rauch out of
1 It was stated in debate, in 1809, that the two loans of stock by Mary
land were repaid to her with a premium on the stock of $79,512, although
the stock had not been sold. (Amer. Reg, v. 73.)
2 Report of the Committee of 1800.
8 In the debate, in 1809, a Member of Congress said that a neighbour of
his bought a lot in Washington for over $400, There was a tax due on it of
ninety cents. It was sold for this, and brought sixty-five cents. (Amer.
Reg, V, 57,)
* Hist.- U. S,, 285.

250 The Financier and the
repair. Fifty thousand dollars had been spent on repairs.
Within that year $57,665 more were spent in repairs on
the Capitol and President's house. The latter was un
finished, and the roof was leaky.
In 1809 the "American Register" said that -inquiry
would show that the reason for the establishment of the
capital at Washington was " the authority acquired by a
single man. Among many reasons assigned for the situa
tion of the present metropolis, the chief were the wishes
of Washington. The name was intended as a monument
of his glory. These considerations are now found to be
of little or no weight with either side." ^
After the second war with England, Charles Biddle
wrote that Trenton would have been a much better place
for the capital of the United States. " Washington, not
withstanding all that can be said in favour of it, I believe
would never have been thought of for the seat of gov
ernment but for the great and good raan it was called
after." 2
In the first few years after the removal to Washington,
there was great complaint of the place, on account of dear
ness, dirt, over-size, expense, and inconvenience. Phila
delphia was eager to bring Congress back, and made offers
of all the necessary accommodations. In 1809 a proposi
tion to remove was brought forward, not so much by those
who wanted to go as by those who thought that an ex
pression should be drawn from Congress which would set
at rest all talk of removal. It was stated in the debate
that the population of Washington in 1804 was 4,000, and
in 1807, 6,000. 1 Amer, Reg. v, 34. 2 Biddle, 327.

Finances of the American Revolution. 251

CHAPTER XXXIII.
morris's land SPECULATIONS.
IN a letter to the President of Congress, July 29, 1782,
Morris said that a large part of America was held by
great land-owners, and that a land tax would have the salu
tary effect of an agrarian law, without the iniquity.^ At
that time he was not himself a great land-owner. In 1770
he and WiUing had bought a plantation in Louisiana, but
they abandoned it during the Revolution.^ In 1781 Morris
bought an eighty-fourth share in the IlUnois and Wabash
Company, which he stUl held in 1800.^
In 1785 he wrote to TUghman: "I ara no great friend
to the purchase of confiscated estates ; not that I think
confiscation was wrong, but there are certain parts of the
community who look with an evil eye at the possessors. I
have one or two such estates notwithstanding these senti
ments, but I should like thera better if they had not been
so circumstanced, and at any rate they ought to be pur
chased cheaper than other estates."
Morris appears to have taken a share in the Virginia
Yazoo Corapany, in 1794. In December of that year
Scott, the agent who was advocating the cause of the
Corapany before the Georgia Legislature, wrote to Fitz-
siraraons that if he succeeded, he should draw for money
to satisfy the conditions on Morris and the other share-
1 Dip. Corr. Rev. xii. 228.
2 Account of Morris's Property, ^ Ibid. 19.

252 The Financier and the
holders in PhUadelphia. In July, 1795, the Company was
about to begin suits against the holders under later sales
by the State, which had repudiated the grant to the Com
pany. Morris, " Nielson," Greenleaf, and Fitzsimmons are
called upon to subscribe to a fund for expenses.^
It appears that Morris did not pay the assessraent, and
forfeited his interest ; for in the " Account," in 1 800, he
said, in reference to that stock, that he supposed it lost
because he had not answered the calls.
Morris's name does not appear among the shareholders
in the Tennessee Company, in the public documents. In
the Henry MSS. is a letter of Watkins, in 1794, in which
it is stated that Morris and others have taken half that
Corapany's purchase.^
There are several lawsuits in the books which show that
Morris's methods of business in his land transactions in
volved loans, mortgages, and trusts in complicated and
mischievous reiteration. He piled one form of credit upon
another, and it is plain that he soon became entirely
lost, so that he did not know the amount or forms of his
liabilities.^ In 1 78 1 New York promised recruits, each, six hundred
acres of land. On the 25th of July, 1782, a district of
land was laid off to satisfy the warrants for this bounty
land, which included the present counties of Onondaga,
Cayuga, Seneca, Cortlandt. Tompkins, and parts of Oswego
and Wayne.*
June 3, 1784, Congress served notice on New York that
Massachusetts had petitioned for Commissioners to settle
the conflicting claims of those two States to land.^ De-
' Folio State Papers, Land, i, 200, 202.
2 Communicated by Professor Haskins,
' Yeates, ii. 518; iii. 104; Washington, Va. Cases, ii, 325.
' P, & G, Purchase, 119. 6 Journ, Cong, ix, 222,

Finances of the American Revolution. 253
 \ 
cember 8, the trial of)the controversy between the two
States was Opened.^ F(ir over a year efforts were made to
organize courts which had been appointed, without success.
Hence the States petitioned to be allowed to proceed by
negotiation with each other.^ This they did, and reported
their agreeraent to Congress. It was approved and filed,
and the commission for the court was revoked.
By the bargain raade between the Coraraissioners of the
two States at Hartford, December 16, 1786,^ New York
yielded to Massachusetts the pre-emption of aU the land
west of a hne drawn northerly, from the eighty-second
milestone westward on the boundary of Pennsylvania, to
Lake Ontario, except a strip one raile wide the length of
the Niagara River on its eastern side ; being about six
million acres. This line, which was known as the pre
emption line, was the western boundary of the soldiers'
land, and was the eastern boundary of the land in which
we are now to be interested. It was as nearly as might
be a north and south line through the Seneca Lake.
Massachusetts yielded the sovereignty and jurisdiction
over all the land in dispute to New York,
In April, 1788, Massachusetts sold all this land to Na
thaniel Gorham of Charlestown and Oliver Phelps of
Granville for a million dollars, to be paid in three annual
instalments in the scrip of Massachusetts known as con
solidated securities, which were then rauch below par.*
In 1787 a corapany was forraed caUed the New York
Genesee Land Company, with a branch in Canada. As
the law did not allow companies to buy of the Indians,
they took a lease for nine hundred and ninety-nine years
of all the lands of the Six Nations in the State of New
York, for $20,000, and $2,000 a year rent. The govern-
1 Journ. Cong. x. II. ^ Ibid. 254,
8 Ibid. xii. 117. * Turner, 326.

254 The Financier and the
ment of the State of New York denounced this bargain,
and the sheriff was ordered to di£,possess intruders under
it. The Company was granted a tract of land ten railes
square in the old miUtary reservation, by way of com
promise and settlement; but this Company made trouble
by its intrigues for many years afterward, ^ The Indians
were in great misery after the Revolution. The years
1789 and 1790 were years of scarcity, during which the
State had to feed them.^
Phelps was obliged to buy off the Canada Corapany be
fore the Indians could be induced to cancel the Indian
title. In July, 1788, Phelps and Gorham extinguished the In
dian title to the eastern part of their purchase, bounded
westerly by a north and south line from the Pennsylvania
boundary to the junction of the Canaseraga Creek with the
Genesee River, then to a point two mUes north of the
present village of Avon, then due west twelve miles, then
northeasterly so as to be twelve miles distant from the
Genesee River to Lake Ontario. The eastern part of the
original purchase between the pre-emption line and the line
just described is what has since been known as the Phelps
and Gorham purchase. They sold land, sometimes by
whole townships, during the next two years.^
Adam Hoops, who had been aide to General Sullivan on
his Genesee expedition, lived in Philadelphia and was inti
mate with Robert Morris. Phelps and Morris were also
intimately acquainted, as Phelps had been an army con
tractor. It is supposed that Hoops drew the attention of
Morris and Phelps to Genesee,* Behind Phelps and Gor
ham there was a syndicate of persons who had desired to
speculate in the lands, but who, in order not to corapete
1 P, & G, Purchase, 106. 2 jbid. 121,
8 Turner, 326, 372, ? P. & G, Purchase, 135.

Finances of the American Revolution. 255
with each other, had united and allowed those two to act
for all. It is believed that Morris was one of these, and
had an interest in the Phelps and Gorham purchase from
the beginning. 1
In 1788 the pre-emption line was surveyed, so that it
ran about a raile and a quarter west of the town of Geneva.
Doubts of the correctness of this survey having arisen, a
new one was made under the direction of Robert Morris.
The correct hne fell about the same distance east of
Geneva. The space between is the gore.^
In 1789, at the instance of Pennsylvania, the eastern
line of the cession of New York and Massachusetts to
the United States, that is, the western boundary of New
York, was surveyed. It required that a meridian should
be drawn through the western end of Lake Ontario. It
was found to pass some twenty miles east of Presqu'Isle,
the present city of Erie. Pennsylvania then bought the
Erie triangle of the United States, in order to have a port
on the Lake. The same old question about the claira of
Massachusetts or Connecticut to the land beyond the west
ern boundary of New York recurred. Maclay says that
Gorhara wanted to get the triangle away from Pennsyl
vania, or at least to settle New England men on it, and
make a second Wyoming of it. Maclay thought it a great
point for Pennsylvania that that State had purchased the
Indian title to this land.^
I Oliver Phelps was born in Windsor, Conn. He moved to Canandaigua
in March, 1802, aud died there in 1809. In 1795 he thought himself worth
a million, with debts of less than $85,000, He dosed his life in the midst of
great reverses, on account of investments in land in different parts of the
United States. He was in Congress from 1803 to 1805. The State of Con
necticut, being a creditor of his, had a mortgage on his land ; but it was finally
settled so that his heirs got a good estate. (P. & G. Purchase, 149 ; Turner,
328.) 2 Turner, 370 ; P. & G. Purchase, 247.
8 Maclay, 123.

256 The Finaticier and the
The assumption of the State debts by the United States
raised the Massachusetts notes to par. When Phelps and
Gorham made their contract, these notes were worth only
twenty cents on the dollar. As the price was now multi
plied by five, they reconveyed to Massachusetts all except
that of which they had extinguished the Indian title, and it
was agreed that they should pay for that, which was about
one third of their original contract, at the rate of their ori
ginal purchase, scaled down to its specie value, twenty cents
on the dollar.^
This left the Phelps and Gorhara purchase as above
stated ; namely, the district between the pre-emption line
and the line thrpugh the Genesee River. The date of this
reconveyance is variously stated. The contract to raake it
seems to have been settled in 1790. Morris states that as
the year in which he bought of Phelps and Gorham all which
they retained of their original purchase, except what they
had sold to others. "In the year 1790 I purchased of
Messrs. Gorham and Phelps a tract of country in the Genesee
district, warranted to contain not less than a miUion acres,
and sold the whole of that purchase in the year 1791 in
England to handsome profit, but which was reduced by dis
counts and other circumstances so as to close with less than
I had first expected."
He was to pay ^^^30,000 New York currency. His agent
in London was WiUiam Temple Franklin, grandson of
Benjamin Franklin, who negotiated the sale to Sir William
Pultney and others almost imraediately. The price was
;£'35,ooo sterling.^ At the time of this transaction Morris
wrote to Franklin : " All our public affairs go on weU.
This country is rushing into wealth and importance faster
than ever was expected by the raost sanguine of the san
guine." He speaks enthusiastically of the reports from
1 Turner, 371. 2 n,id, 243. See, however, page 259.

Finances of the American Revolution. 257
Genesee ; araong others frora Wadsworth, who had made
a settlement there.^ Liancourt says that when the Pultney
tract turned out to contain 120,000 acres more than was
supposed, Morris would not raake any deraand for it, saying
that he had sold all there was. " He certainly would have
had a fine chance to raake objections to this gratuitous
surrender if he had not had the liberality and generosity
which he has shown in all his transactions, and which
make one sincerely hope that he may extricate hiraself
happily frora the present erabarrassraent of his affairs."^
In 1795 Morris stated that the agent of Pultney had sold,
up to Deceraber 31, 1794, 463,017 acres, for $657,965.
The price at the tirae of writing was $3 per acre. Before
1804 it would produce over three milUon dollars.^
Thus Morris became the owner of the eastern part of the
original purchase, which Phelps and Gorham did not recon
vey to Massachusetts, and he iraraediately sold it again.
Turner says that Phelps and Gorham settled with Massa
chusetts, March 10, 1791. March 12, Massachusetts agreed
to sell to Samuel Ogden, acting for Robert Morris, all the
Massachusetts land except the Phelps and Gorham pur
chase. The sale was executed. May 11, by five deeds for
five sections of it, divided by meridians. One sixtieth was
reserved to satisfy a previous contract with John Butler,
but Morris afterward bought out Butler's right.*
Liancourt iraplies that Morris got the resolution to sell
hira the New York land at a low price, through the Massa
chusetts Legislature, by legislative finesse.
Morris's story of this purchase in the "Account" is:
In 1 791 he bought a tract of Massachusetts, for which he
paid at different periods a hundred thousand pounds lawful
money, equal to ^^125,000 Pennsylvania, with heavy interest,
1 Turner, 244. 2 Liancourt, i, 222,
' North Am. Land Co. 56. * Turner, 396.
VOL. n. — 17

258 The Financier and the
besides other sums connected therewith. Sarauel Ogden
was interested to the extent of 300,000 acres ; Gouvemeur
Morris, " who was expected to have assisted in making sales
in Europe," had an interest of 250,000 acres ; R. Soder-
strom, 100,000 acres; and William Constable, 50,000 acres.
The whole was estimated at 4,000,000 acres, and turned
out rather more. It was divided into five tracts, which he
here defines. In 1791 he borrowed of W. S. Smith of New
York, agent for Pultney and Horsby, $100,000 at six per
cent, and mortgaged Tract No. i. He also mortgaged
100,000 acres in this tract to Alexander Hamilton for
the use of John B. Church, to secure $81,679.44, which
mortgage is dated May 31, 1796.
He had now, therefore, bought all the rest of the tract
which Phelps and Gorham had undertaken to buy for the
syndicate in the first place.
Taking up the retrospect of his land transactions in
1800, Morris says : " I shall begin with the lands purchased
in the Genesee country, acknowledging that if I had con
tented myself with those purchases, and employed my time
and attention in disposing of the land to the best advantage,
I have every reason to believe that at this day I should have
been the wealthiest citizen of the United States. That things
have gone otherwise I lament, more on account of others
than on my own account, for God has blessed me with a
disposition of mind that enables me to submit with patient
resignation to His dispensations as they regard myself."
In the pamphlet on the North American Land Company,
in 1795, he wrote : "In order to give one instance out of
many of the advantages to be derived to the holders of
shares in this- land, it is not improper to state that one
of the parties of the first part to this plan [himself] did
actually seU in the year 1791, to certain capitalists in
Europe, one million of acres of uncultivated Araerican land

Finances of the American Revolution. 259
for ;^75,ooo sterhng, or $333,333^." Evidently when he
wrote this, he was much more enthusiastic and confident
about his Genesee transaction than in 1800. His old clerk,
James Reese, who settled in Geneva, said that Morris's re
verses were due to his great success, in the first place, in
the sale to Sir William Pultney, to which he refers in the
passage just quoted. ^ This is a very reasonable opinion.
When Jefferson heard of the Morris purchase from
Phelps and Gorham, he wrote to Washington : " In that
case the similarity of interests will produce an alliance with
the Yazoo Corapany." ^ In 1790 Maclay found Morris
averse to lowering the price of land in western Pennsyl
vania, Hewas for what the speculators call " dodging ; "
that is, selling lands in Europe before they were bought
in Araerica.^
The agent of the Pultney estate, Charles WiUiaras or
Williamson, was naturalized, and took up his residence in
the Genesee country in February, 1792.* In a report of
1794 he spoke of his great expenses and difficulties; said
that Morris knew the sacrifice he was making when he
sold the land, but that he will rejoice at the writer's suc
cess. He expressed himself greatly indebted for support
frora Morris and his son.^
The population of the entire Massachusetts cession in
1790 was one thousand and forty-seven, — consisting of
five hundred and twenty-three males over sixteen, one
hundred and ninety-two raales under sixteen, three hun
dred and eighteen feraales, two free negroes, and eleven
slaves.^ The Quaker settlement at Crooked Lake was not
included. The Quakers are put at two hundred and sixty
1 P. & G, Purchase, 240.
2 Letters to Washington, iv. 366, in 1791.
2 Maclay, 216. * P. & G, Purchase, 251.
5 North Am. Land Co. 82. « Dqc. Hist. N. Y. iii. 648.

26o The Financier and the
persons.^ The settlers were enduring great misery and
many privations. They were greatly afflicted with fever
and ague. Phelps wrote to Gorham that they were nearly
all sick.^
In 1792 and 1793 Morris sold to the HoUand Company
all the land owned by him in western New York west of
the transit line ; that is to say, west of the line drawn
due north from a point on the Pennsylvania boundary,
twelve miles west of the southwest corner of the Phelps
and Gorham purchase. This line began on the Pennsyl
vania boundary, between the present towns of Bolivar and
Alma. It ran between the towns of Elba and Byron and
Bethany and Pavilion, there being a jog in the town of
Stafford.^ To the north it comes out between Carleton
and KendaU.*
This left for Morris about half a million acres between
the Phelps and Gorham purchase and the land of the
HoUand Company, which was called " Morris's Reserve."
Morris was to extinguish the Indian title, in guarantee
of which he left ;£^3S,ooo sterling of the purchase money
in the hands of the buyers. The Indians did not want to
sell. August 25, 1796, Morris applied to Washington to
appoint a commission to treat with the Seneeas for their
title in this purchase, saying that it was no longer possible
to keep the squatters off.^ Washington consented, on
condition that the Indians must ask for the treaty.
Jeremiah Wadsworth was appointed Commissioner.^
Morris had established his son Thomas at Canandai
gua as his agent in 1791. In 1793 he gave him fifty-
1 Turner, 331. 2 p. & q. Purchase, 143, 259.
^ This statement is in accordance with the maps in Turner, although the
line is described as having been a meridian line.
^ Turner, 574, ^ Hist, Mag. June, 1869.
« P. & G. Purchase, 436.

Finances of the Americati Revolution. 261
one hundred and twenty acres, being half of Mount
Morris.^ Thomas Morris obtained the consent of the Indians to a
meeting which was held at Big Tree, now Geneseo. The
Indians were reluctant, and in fact broke up the meeting.
Thomas Morris then had recourse to the women, who were
said by the Indians to have control of the matter by their
customs. Morris told them that the money obtained for
the land would free them frora drudgery. The result was
that the council was reopened, and the bargain was raade.
The price was $100,000, to be invested in stock of the
Bank of the United States by the President of the United
States as trustee. Reservations of about three hundred and
fifty square miles were provided for.^
About 1793 or 1794 a colony of Germans was formed in
the city of Haraburg, to settle in America. There were
seventy families, but they were drawn frora the urban and
not from the rural population. They were consigned to
Robert Morris, and were set at work to make the road from
Northumberland to Genesee. In the days of the first set
tlement of Genesee, the connections with Philadelphia and
Baltiraore were far easier and more direct than those with
New York. These people could do no work. They were
settled on land with tools, stock, and provisions, but they
did not prosper at aU. The settleraent ended in a riot.
Many of the colonists were arrested and taken to Canan
daigua. The settlement appears to have broken up.^
In the " Account," Morris wrote that the HoUand Com-
1 Account 3. Thomas settled up his father's affairs, and assisted in
the contract with the Holland Company. He was the first Representative
in Congress from the region west of Seneca Lake. He shared his father's
reverses, and moved to New York City in 1803 or 1804. He died in 1848
(P. & G. Purchase, 173). An account of Robert Morris's affairs in western
New York, by Thomas, is in the " Historical Magazine " for June, 1869,
2 P & G. Purchase, 436, 3 ibid. 254.

262 The Financier and the
pany claimed that he owed them $53,000, but he had coun
ter claims. " I believe they have filed a bill in chancery, to
which I drew an answer and sent it to Mr. Fitzsimraons, but
I do not know that it has been filed. I believe not." ^
The interests of the Genesee region were deeply involved
in Jay's treaty. The settlers beUeved that the English
were aU the tirae stirring up the Indians. Oswego and
Niagara were in the hands of the English until that treaty
was made, and they objected to a settleraent which the
Americans had made at Sodus.
A search through the files of Niles's Register has pro
duced a number of stateraents about the Holland Company
or its lands. They are either plainly erroneous or so inac
curate that they have the character of hap-hazard state
ments, and are not worth citing here.
In 1890 a newspaper statement was afloat that the heirs
of Robert Morris intended to reopen a foreclosure which
was obtained by Willink and his associates of a mortgage
on land in Ontario, Steuben, and Erie Counties. In one of
these newspaper stateraents it is said that the Farraers'
Loan and Trust Company closed up the affairs of the Hol
land Company in 1845. In general, the statements contain
so many inaccuracies, and confuse the different parts of the
property in such a way, that it is irapossible to understand
from them what the issue is which is raised.^
John Nicholson, who was Comptroller of Pennsylvania
from 1782 to 1794, and who in that office produced the
trouble for Morris about the settlement of his accounts
with Pennsylvania,^ became engaged in land speculation,
and at one time owned 3,700,000 acres in Pennsylvania,
where his bankruptcy produced a great entanglement of
^ See pages 293, 300.
2 NewYork Times, October 15 and 22, 1890. The New York Herald
for June 27, 1891, contained a very remarkable story about Robert Morris.
' See page 205.

Finances of the American Revolution. 263
titles.^ We cannot tell just at what time he and Morris be
came associated with each other, but between 1792 and 1794
the latter raade large investments in land in Pennsylvania.^
Putting together the facts which have so far been
stated, we find that Morris had owned and sold the whole
of the State of New York west of Seneca Lake between
1790 and 1793, except a million acres in a strip north and
south nearly through the centre of that region. This he
retained ; but his contracts with the Holland Corapany kept
hira still interested in their part of it. In 1793 he also
engaged in his enterprise at Washington, and he had ira
mense land interests in a half-dozen States besides.
In 1794 Morris and Nicholson forraed the Asylura Cora
pany, to buy a raillion acres in Pennsylvania.^ Of this
enterprise, Liancourt, writing in 1795, says : Asylura is on
the right bank of the Susquehanna. MM. Talon and De
Noailles bought two hundred thousand acres in the Wyo
ming district. A part of their project was to provide for
fugitives from San Domingo. In 1793 they bought a tract
of Morris and Nicholson. The Frenchmen were obliged,
however, to annul this contract, because they could not
carry it out. Then they all joined in a Company which
was to own a million acres. The Company took over all
the buildings and improveraents. Nicholson bought out
the Frenchmen. At first the enterprise prospered, but
afterward declined. However, at the tirae of writing it
was by no means a failure. A town had been built with
important improvements, and clearings had been raade.
Robert Morris was out of the enterprise. Nicholson had
raade a joint stock corapany of it.*
This settlement was in Bradford County. It is evident
that its weakness came from the fact that there were too
1 Blackman's Susquehanna Co., 486. ^ Account.
* App to Maclay, 324. * Liancourt, i, 151.

264 The Financier and the
many gentlemen in the company, and not enough workers.
It does not seem to be a correct statement that Morris was
out of the Company in 1795. In the articles of agreement
and association of the Asylum Company, of 1801, it is re
cited that Robert Morris and the late John Nicholson
could not perforra their agreement of 1794 and 1795, so that
the subscribers have been forced to buy in the shares, and
have bought all but seven hundred and thirty-nine shares.
They now form a new Company. The seven hundred and
thirty-nine shares outstanding are to be exchanged for
shares of the new Company, of which there are two thou
sand in aU. In 1819 the lands and stock of the Asylum
Company were offered for sale under the articles of
association. 1
In 1793 a company of French emigrants came to New
York, in order to forra a colony in that State. They were,
however, persons entirely unfit for the work of colonization.
They visited Philadelphia; but state that Robert Morris
received them " without ceremony, seeing that there was
nothing to be raade out of us." Jefferson received them
still worse. They settled at Castorland, in the present
towns of New Bremen and Croghan, in New York.^
Priestley's son preceded him to America, and bought
land in Northumberland County, Pennsylvania, on which
it was intended that a colony of Unitarians should be set
tled. Land was bought of Robert Morris. When the
scheme failed, Morris " generously " took back the land.^
In February, 1795, Morris, Nicholson, and Greenleaf
forraed the North Araerican Land Corapany. They deeded
to this company land in Pennsylvania, Virginia, North
Carolina, South Carolina, Georgia, and Kentucky. There
were 6,000,000 acres in all, — of which 2,000,000 were in
' Document in possession of the Pennsylvania Historical Society.
2 Mass. Hist. Soc, Proc, February, 1864. 8 Liancourt, i. 129.

Finances of the American Revolution. 265
Georgia. There were 30,000 shares, — making a capital
of $3,000,000 ; the land being put in at fifty cents an acre.
The title was vested in trustees, who were to convey to
purchasers. The trustees were Thoraas Willing [later
Jared Ingersoll], John Nixon, and John Barclay. Morris
was naraed President of the Board of Managers.
They published a little book as an advertisement of the
Company, and to contradict misrepresentations of it which
had been raade in Europe. It contained several letters by
Robert Goodloe Harper, which presented nothing but glow
ing descriptions of the lands, climate, productions, etc. ;
especially of the Southern States. The book is more im
portant to show the ideas of the projectors at the time,
than for any inforraation about the lands. In the intro
duction, which was no doubt written by Morris, it is said
that land in America has doubled in value within five or
six years. Since interest is at six per cent and much of
the land will pay £6 per acre per annum, it ought to be
worth .^100 per acre. "The proprietor of back lands gives
hiraself no other trouble about thera than to pay the taxes,
which are inconsiderable. As Nature left them, so they
lie till circumstances give them value. The proprietor is
then sought out by the settler who has chanced to pitch
upon them, or who has raade any iraprovement thereon,
and receives from him a price which fully repays his
original advance, with great interest."
We have here, repeated in its most distinct form, the
fallacy which has possessed the minds of all those who,
from the first settlement of America, have tried to make
fortunes out of wild land. It is the pecuniary form of the
sarae faUacy about wild lands which we meet with in
political phUosophy and sociology, — namely, the idea that
wild lands, in a state of nature, are a coraraodity, or an
estate, or an asset, or a good presented to man as a

266 The Financier and the
" bounty of nature." Land in a state of nature is simply
a chance for a huraan beirig to win means of subsistence
by the expenditure of his labour. " The prairie value" of
land is alvvays zero, or a minus quantity. The difficulty of
clearing it and reducing it to use is an obstacle which
must be conquered by the human being who wants to win
food from it. If he is on the agricultural stage of life, this
difficulty is great, and constitutes the cost of the struggle
for existence in its very first and simplest form. Whenever,
therefore, we make abstraction of all the arts, sciences,
and established customs of civilization, in order to come
back to the position of a raan face to face with an unlimited
amount of land, untouched by human hands, we find that
man, not in possession of a boon or gratuitous good of any
kind whatever, but simply face to face with an enormous
task. If he is strong enough to conquer the difficulties
and execute the task, he will extort from Nature food,
clothing, and shelter. Whatever he gets from her he may
have and enjoy. Access to wild land is nothing more than
a chance to begin this enterprise and effort.
What, then, can the actual settler give to the State for a
title to the wUd land ? Certainly nothing more than a re
muneration for surveying it in order to define and secure
to the settler that land upon which he has spent his labour,
and also a remuneration for defence and protection in the
possession of it against others. What can he give, or why
should he give anything, to another man who has siraply
secured a paper title to the land under the civU institu
tions which norainally extend over the unsettled territory ?
There is no reason why he should give anything. As long
as the land is to be reached in unhraited amount, he can
always pass by that which has been taken up, and find
more. Why, then, should he pay for the' privilege of going
on that which has been covered by a paper title ? If he

Finances of the American Revolution. 267
finds that he has taken up land of which somebody else
owns the paper title, instead of coming forward to pay the
owner freely and cheerfuUy, as Morris expected, according
to the above paragraph, he refuses to do it, and resists as
long as he possibly can. Of this our history has given
abundant Ulustration.^
The proprietors and grantees in the colonial days had
made ample experience of the fallacy of the notion that a
thousand acres of wild land is an estate, or possession, or
useful thing in aijy sense whatever to the owner of the
paper title ; but they had never recognized the faUacy.
It had been more thoroughly exposed in Pennsylvania
than anywhere else. Charles II. was indebted to Wil
liam Penn. He gave him a grant of an empire of wild
land with which to repay himself the debt. Penn and his
descendants quarrelled all the tirae with the actual settlers
who took up the land and tilled it with their own hands.
The proprietor wanted to obtain a net revenue. The
settlers wanted him to invest capital for the defence and
developraent of the Coraraonwealth. He could see no
reason why the Coraraonwealth should exist under his
proprietorship, except that he raight recover an income
from it. They could see no reason why that relation
should exist, unless he did soraething for thera. The
historical forra of the contest was that the settlers had
the political organization in their hands, and tried to tax
the proprietor's land. If they had done so, even under
their claira that they were developing and protecting the
Comraonwealth and buUding it up for the future, the pro
prietor would never have obtained any income. The United
States government has inherited exactly the same contest
with the new States. If they could tax the land owned
by the United States, it would have to support them. The
1 See the case of Greene v. Biddle, Wheaton, viii. i.

268 The Financier and the
Penns undoubtedly made a very good bargain to sell out
their province for the amount they received in cash from
Pennsylvania and the English government.
Morris did propose that the North American Land Com
pany should do something for the land besides holding the
paper title until such time as the settlers chose to come
and buy it. The land was to be surveyed, an agent was to
go upon a tract, build houses, raills, outbuildings, and then
report to the Company, which was to advertise for settlers.
This would have been an investment of capital, and then
would have come the question whether it was a good in
vestment. In 1800 the Pultney Association had spent
$1,374,470, and had received $147,974, besides which they
owed $300,000.^ Jereraiah Wadsworth, of Hartford, bought
lands of Phelps and Gorham. Two young men, relatives
of his, settled on this land, cultivating it themselves. They
raised hemp and tobacco. In 1796 one of thera went to
Europe to try to sell land for himself and others who were
at that time embarrassed. He found a very bad market.
He adopted the plan of exchanging his new land for farms
in New England, — that is to say, he facilitated emigration.
It was not until the War of 1812 made a good demand for
his produce that he began to escape from his embarrass
ment ; but the Erie Canal finaUy brought him relief, —
that is to say, the development of the land and the advance
ment of value was a question of transportation.^ Robert
Morris had perceived this, and had tried to promote the
Erie Canal even in his time.^
Custis says that Morris asked Washington to go into the
North American Land Company, as Washington was then
buying land. He refused, and in his turn urged Morris
not to go into these speculations at his age. Morris re-
1 P. & G, Purchase, 274 ; but see page 257. 2 ibid. 324.
s Turner, 357.

Finances of the American Revolution. 269
plied : " I can never do things in the sraall ; I must be
either a raan or a raouse."^ In 1794 Morris declined a
proposition which Washington had raade to hira, that he
should buy the latter's lands. The price was too high.^
It should be understood that in the last decade of the
last century there was a very great disposition on the part
of raen of enterprise and capital to speculate in land. Mor
ris was only one of the most prominent and eager in the
enterprise, one of those who had the largest means and
went into it on the largest scale. The enterprise, how
ever, had never any solid business foundation, or any pros
pect or possibility of success. It was not an investment in
a productive enterprise, but an attempt to exploit the
raonopoly of land under conditions where that monopoly
had no value, because the amount of land in proportion to
the number of settlers was in unlimited excess.
The Minister of France to the United States, Fauchet,
published a letter in Paris, in 1794, warning Frenchraen
against the representations of land speculators in America.
Another letter was published, signed by Jonas Fauches,
who, Morris said, kept a tippling-house in one of the west
ern counties of Georgia. The letters were reprinted in
America. The general allegations were that the land titles
were not good, and that the lands were unfit to support
settlers. Fauches also asserted that fraudulent land claims
had been sold to Robert Morris. In the book about the
North American Land Corapany Morris denied these asser
tions, and said that he would take back any uncultivated
lands which he had sold, and give six per cent per annura
advance on the price from the time of sale. He wanted to
sue Fauches. Fauchet replied that Morris was raentioned
in the letters only as a victira of cheating speculators. His,
Fauchet's, business was only to transrait to France any
I Custis, 326. " Hist, Mag,, November, 1868.

270 The Financier and the
information which he obtained which he thought would be
useful to Frenchmen. His letter had in fact been directed
to the Foreign Minister of France.
In 1797 Morris formed the Pennsylvania Property Com
pany. He deeded to James Biddle and William Bell, as
tiustees, land, houses, etc., in the State of Pennsylvania,
which they were to reconvey to the Company when formed.
The plan of association is in the Pennsylvania Historical
Society Library.
In the " Account " Morris refers to the schedule of the
Pennsylvania Property Company to show what its assets
were, and mentions the " Hills " and the Trout Spring
estate as having been in it. " The destructive operation of
sheriff's sales has cut off the surpluses that were expected
to arise to the Company from those estates, which might
have been ensured under proper management." He says
that two persons formed designs of plundering that Com
pany, having made bargains with sorae of Morris's credi
tors. The property of the Pennsylvania Property Com
pany was divided into ten thousand shares, out of which
he transferred two thousand to the trustees, and twenty-
three hundred and sixty to various other persons, either as
payment or security for debt. From mention which is
made of incumbrances on different pieces of this property,
it is evident that the Company never owned anything but
equities in it. No evidence has been raet with that any
shares in this Company were ever sold to outside parties.
By means of the " shares " Morris tried to distribute the
equities among his creditors.

Finances of the American Revolution. 271

CHAPTER XXXIV.
WAS ROBERT MORRIS EVER RICH?
WE have seen that Robert Morris inherited from his
father nearly $7,000 in cash, besides real estate,
when he was seventeen years old. Therefore by the tirae
he was of age he was able to enter the firra of WiUing and
Morris with a very handsorae capital for a raan to begin
life with in Philadelphia in those days. His wife also in
herited property which Morris sold for $15,860.' When
John Adams said of him, " He rose frora nothing but a
naked boy by his industry, ingenuity, and fidelity, to great
business and credit as a raerchant,"^ he stated what was
incorrect. On the contrary, Morris started with very ex
ceptional advantages.
There is among the Peters papers a letter frora Robert
Morris, dated Noveraber 29, 1759, to some one who is
named only John. Morris says that a certain person, whom
he does not name, "has paid us a great deal of raoney,
which reprieves us frora jail one raonth raore. Our damned
creditors are hungry as the devU, and we tumble hogsheads
of sugar, bills of exchange, and paper money down their
throats every day. But all won't do unless a fresh supply
comes soon."
A story obtained currency during the Revolutionary
war that Morris had been on the verge of bankruptcy when
the war broke out. WiUiam Lee wrote to R. H. Lee,
1 See page 296. ^ Adams, ix. 609.

272 The Financier and the
March 25, 1779: "The critical situation of Mr. R. Morris
at the beginning of the American war was not only gener
ally known in London and Holland, but in other places.
What is it now.-""^ The argument, which was often re
peated by a certain class of Morris's enemies, was : He is
rich. How did he become so .'' We do not know. There
fore he has stolen public funds. On the inside of the cover
of William Lee's letter book is a note by the owner of the
book abusive of Morris. " Mr. Morris long before the war
between America and Great Britain, though supported by
the large property and still larger credit of his partner, Mr.
WiUing, had brought the house of Willing, Morris, & Co. to
a state that is called bankruptcy in every commercial coun
try in Europe; and when the American war commenced,
he had the address to get the direction of the expenditure
of the greatest part of the paper money issued by Congress,
till at length he brought the United States of America to
a public bankruptcy, while he, at the same time, amassed
an iramense fortune for himself; and even after this, when
the Congress paper money was driven out of circulation for
the want of payment, Mr. Morris had influence enough in
Congress to get himself appointed Financier-general of the
United States of America, when nothing but gold and sil
ver were allowed to be current ; by which manoeuvre Mr.
Morris could secure to himself the payment of the immense
quantity of the former Congress paper money that he had
coUected while it was current at a thousand and twelve
hundred per cent under value." ^
Whenever we raeet with the assertion, in later years,
that Morris was bankrupt in 1774, it seems to be clearly
traceable back to William Lee. We meet with it in " Cen-
1 Ford's W. Lee.
2 A copy of this entry, which is undated, but was evidently written
about 1783, has been communicated by Mr, W. C, Ford.

Finances of the American Revolution. 273
tinel," ^ and in CaUender, in the direct line of Lee and the Lee
party tradition, constituting a part of their stock of vituper
ation. Having thus got into the literature, it obtained wider
circulation. We find John Adams repeating it in 1809:
" At the beginning of our Revolution his commerce was
stagnated, and as he had overtraded, he was rauch embar
rassed. He took advantage of the tiraes, joined the whigs,
carae into Congress and united his credit, supported by
my loans in Holland, and resources of the United States.
By this means he supported his credit for raany years, but
at last grew extravagant, as all conquerors and extraordi
nary characters do, and died as he had lived, as I believe,
aU his days, worth very little solid capital." ^
If he was bankrupt at that tirae, the suspicion at once
suggests itself that he took the whig side, as so raany
others did, in the hope that in political uproar he might
find pecuniary relief. That suspicion is, however, at once
refuted by the fact that he resisted the declaration of inde
pendence, and took very sober views about reconciliation,
if any reasonable grounds for it could be offered.^ It is
possible, of course, that he was embarrassed at the out
break ofthe war; but Adams is not a witness to the fact of
his own knowledge, and when we trace up any Revolution
ary tradition to the Lees, especially if it is derogatory to
FrankUn, Morris, and their friends, we raust reject it untU
it is corroborated by other evidence.
In 1777 or 1778 Wentworth understood that Morris had
becorae very rich.*
Frora the stateraents which were made when Morris took
office, by himself and others, it is evident that he was re
garded as a very rich man, and that he clairaed to be such.
The most definite stateraent on this point which we pos-
1 See page 216, ^ Adaras, ix. 609,
8 See vol, i, pp. 194-197. ¦* Stevens, 486.
VOL. II. — 18

274 The Financier and the
sess is in Chastellux, who also offers an explanation of the
chances of acquiring wealth at the time : " I could easily
form an idea of the comraerce of Philadelphia from seeing
above three hundred vessels in her harbour, though the Eng
lish had not left a single bark in it in 1778. Two years'
tranquillity and, above all, the diversion made by our squad
ron at Rhode Island, have sufficed to collect this great
nuraber of vessels, the success of which in privateering
as well as in trade has filled the warehouses with goods,
insomuch that purchasers alone are wanting." He says,
however, that Pennsylvania is not well governed, and is
more exposed to convulsions of credit and manoeuvres of
speculation than other parts of America.' "Very large
fortunes were made from nothing during this period
[1779-80], but this state of prosperity was not of long
duration. In 1781 and 1782 so numerous were the King's
cruisers and privateers that frequently not one vessel out
of seven that left the Delaware escaped their vigilance.
The profits on successful voyages were enormous, but it
was no uncommon thing to see a man one day worth forty
or fifty thousand pounds and the next day reduced to
nothing. Indeed, these rapid transitions were so frequent
that they alraost ceased to affect either the comfort or the
credit of the individual. Flour shipped on board at Phila
delphia cost $5, and produced frora $28 to $34 a barrel in
specie at the Havana, which is generally but a short run ;
and the arrival of one European cargo out of three amply
repaid the merchant. So that, notwithstanding the nu
merous captures, the stocks were continually full of new
vessels to supply such as were lost or taken. In short,
without having been upon the spot at that period, it is im
possible to conceive the activity and perseverance of the
Americans. There was scarcely a captain, or even com-
' Chastellux, i, 326,

Finances of the American Revolution. 275
mon sailor, who had not been taken six or seven tiraes
during the war, nor a merchant who had not been more
than once rich and ruined.^
" It is scarcely to be credited that amidst the disasters
of America Mr. Morris, the inhabitant of a town just
emancipated from the hands of the English, should pos
sess a fortune of a miUion and a half or two million doUars.
It is, however, in the most critical time that great fortunes
are acquired. The fortunate return of several ships, the
StUl more successful cruises of his privateers, have in
creased his riches beyond his expectation if not beyond
his wishes. He is in fact so accustomed to the success of
his privateers that when he is observed on a Sunday to be
raore serious than usual, the conclusion is that no prize has
arrived in the preceding week. This flourishing, state of
coramerce at Philadelphia, as well as in Massachusetts Bay,
is entirely owing to the arrival ofthe French squadron." ^
To this the translator, who is an inferior authority and
addicted to gossip, adds : " Mr. Morris has certainly en
riched hiraself greatly by the war, but the house of WiUing
and Morris did a great deal of business and was well known
in aU the considerable trading towns of Europe previous to
that period. Mr. Morris had various other means of ac
quiring wealth besides privateering; amongst others, by
his own interest and his connections with Mr. Holker,
then Consul-general of France at Philadelphia, he fre
quently obtained exclusive permission to ship cargoes of
flour, etc., in the time of general embargoes, by which he
gained imraense profit. His situation gave hira many
simUar opportunities, of which his capital, his credit, and
abilities always enabled him to take advantage. On the
strength of his office as Financier-general, he circulated
his own notes of Robert Morris as cash throughout the
1 Chastellux, 201, translator's note. "^ Ibid. 199.

2^6 The Financier and the
.continent, and even had the address to get some As
semblies,, that of Virginia in particular, to pass acts to
make them current in payment of taxes. What pur
chases of tobacco, what profits of every kind, might not
a raan of Mr. Morris's ability raake with such powerful
advantages .' " '
In May, 1782, Morris said that he was poorer than a
year before.^
We can see the following important chances of profit
which Morris possessed during the war. He made com
missions on the commercial transactions which he made on
behalf of Congress, and he no doubt had the best of that
business. He imported, on his own ventures, and sold to
Congress, goods on which the profits were immense. Pri
vateering was fiiU of risk. He may have been fortunate at
it. He had chances to win the information which was
most essential for profitable operations in the currency.
His control of the foreign exchange in 1781 must have
given him greart chances of profit.
If we ask the question in what Morris's wealth con
sisted after the peace, it is not easy to answer. He never
owned much real estate in the city of PhUadelphia, and
was not a very large stockholder in the Bank of North
America. At that time he did not own any great amount
of land. His property must have consisted in ships and
goods. The tobacco speculation and the China trade upon
which he entered, would call for a large capital in those forms.
In April, 1784, Morris, writing to TUghman, says that
the bank has refused discounts for three weeks past.
There is a terrible and general distress for want of money.
Three weeks later he writes that he thinks the bank will
resume discounts the next week. In July he wrote that
there were some great failures at Philadelphia ; and in No-
1 Chastellux, 200. 2 pjp Cq^]-. Rev xii. 142.

Finances of the American Revolution. 277
veraber he wrote again that the bank thought of making
discounts.' At the end of January, 1785, he said that the
bank was discounting at that time. He seems to have
had some disagreeable experiences during the financial
crisis; for after referring to the embarrassraent caused by
helping a raan, he says that he wUl do it no more, having
suffered frora it all his life.
In March, 1785, he teUs the same correspondent that he
is not at ease in raoney raatters. He was writing in refer
ence to a proposition by TUghraan that they should pur
chase sorae "works." He said that some large debts due
him kept him poor when he ought not to be so. This was
the tirae of the tobacco contract.
In 1788 Madison referred to Robert Morris's affairs as
stUl very rauch deranged.^ In the same year one of the
English agents in the United States reported to Lord
Dorchester: " GeneraUy speaking, the coraraercial charac
ter and credit are sunk to the lowest ebb. Bankruptcy
has ceased to be disgraceful. Even Mr. Morris of PhUa
delphia has biUs to a great amount returned protested
from Europe, the payments of which are suspended, and
his iraraediate prospedts of retrieving his affairs depended
upon the arrival of a laf'ge ship from China, which did
arrive about the middle of September." ^
In 1789 Gouvemeur Morris speaks of the trouble of
Robert Morris's affairs.* In 1790 he wrote that the last
and most difficult task he had in Europe was, " your
various debts and engagements. Here I have to perform
the task of the Israelites in Egypt, — make bricks without
straw." ^ April 4, 1790, Robert Morris wrote to HaraUton
that he wanted to raortgage his Ten (or Ton) Alley estate,
1 See page 184. ^ Madison's Works, i. 443.
3 Canadian Archives, 1890, 104. ¦• Morris's Morris, i, 146, 150.
5 Ibid, 342.

278 The Financier and the
and spoke of paying his debts as an object of effort, al
though at the same time he proposed a time contract for
a large purchase of bank shares.' Sirapson says that
Morris was in a whirlpool of trouble frora 1787 to 1798.^
The Due de Liancourt, in 1794 or 1795, spoke of Morris's
affairs as embarrassed.^ In the "Account," however,
Morris refers two or three times to gifts which he made
in 1792 as made at a tirae when he had as good a right
to give as any man.* There is great reason to believe,
although we have found no recorded evidence of it, that
he made great profits out of the rise in the public debt in
1790 and 1791.° We have found no evidence that he was
troubled at all by the financial crisis in 1792 in connection
with the failure of Duer.
In his petition in bankruptcy Morris dated his misfor
tunes from the failure of two houses in London and Dublin
in 1793.^ Simpson expresses the opinion that Morris was
carried away by the 6clat of his own reputation!^ Lossing
thinks that he became mad with speculation and ambition.^
We find ourselves driven to the same opinion. The habit
of dealing with large sums on paper when he was public
Financier, the glory of giving credit to the United States
by his personal endorseraent, the discovery that he could
with facility circulate his personal notes as currency, and
the prestige which he had enjoyed, were enough to turn
the head of any man. They led hira to that saddest of
all human delusions, to which the most able and most
fortunate are always most exposed, — namely, that although
other men are fools, one's self is wise ; that one is not sub
ject to the same follies and weaknesses as they, but can
with ease and confidence do what they dare not attempt.
1 State Dep, MSS,, Ham. Papers, xxii. 181. 2 Simpson, 713,
8 Liancourt, iii, 270. * Account, 15, 42, ^ geg p^gg 232.
6 Westcott, 364. f Simpson, 711. » Amer. Hist, Rec. ii, 305.

Finances of the American Revolution. 279

CHAPTER XXXV.
"confidence has furled her BANNERS, WHICH NO LONGER
WAVE OVER THE HEADS OF M. AND N."
THE Pennsylvania Historical Society owns five ac
count-books of Robert Morris, containing the rec
ord of his affairs between 1791 and 1801. We have not
been able to give to these books more than the most
superficial examination,. They are kept by a corapli
cated system of single entry which it would require time
to master, and they do not present any tests of the
state of his affairs at any moment which could be easily
applied. The accounts, indeed, are suspended or aban
doned at the end of 1796. He had spent all his capi
tal on land which produced him no income, and there
were no accounts to keep. When he was in prison he
undertook to post up the books, and the last entries
in them are in an aged and tremulous handwriting,
which is in consonance with the pathetic effect which
is produced by all the other evidence we have about his
last years.
During his prison days, probably in 1800, he also wrote
out a series of memoranda explaining his enterprises as
well as he could, and especially explaining his open ac
counts. This document was printed in two pamphlets,
probably in connection with the legal proceedings of i860;
but it bears no titlepage or date. It is often referred to
in this book as the " Account."

28o The Financier and the
In 1800 he referred to 1795 or 1796 as the beginning
of his troubles.' The whole " Account" of this property
shows that he had bought land all over the United States,
but had scarcely kept track of it himself, and had mort
gaged it and disposed of it in a reckless manner, without
any plan as to what he expected to do or where he ex
pected to corae out. He had apparently seized upon any
or every asset or chose in action, and mortgaged it to
raise money or put off creditors, and all the assets that
appear there are simply the equity, or contingent interest,
that might ultiraately be saved, if all the other transactions
could be liquidated. At the sarae time he had compli
cated these other transactions to such an extent that their
liquidation was impossible on account of the conflict of
interests that would certainly arise.
In 1795 we find him trying to put off Hamilton, who
was urging him to pay what he owed to Church, and it
appears from the letters that the contract for the bank
shares had been made, but that payment had not been
made in full by Morris ; still without the other half of the
correspondence we cannot be sure. Later we find that
Hamilton has written that Church wants a settlement and
will take land. Morris offered land in Washington County,
Pennsylvania, where cultivated land, he said, was worth
from $4 to $12 an acre, and uncultivated land $I to $3.
He called his own worth $2.^ In Hamilton's directions to
his executor, July 25, 1795, he states that he holds Morris's
note for $9,500, with bills of exchange as collateral for
$4,000 and for ;^500 sterling. These are for Church's
money, which Hamilton had lent to Morris. It was at
first $iO,ooo, but Morris had paid $500.^
March 13, 1795, Morris wrote to Nicholson that a storm
1 Account, 48, 2 State Dep. MSS,, Ham. Papers, xxii, 185, 190.
' Hamilton's Works, viii. 353,

Finances of the American Revolution. 281
was rising and they raust have a consultation. On the
24th he writes that there is " no end to trouble and dis
grace." April 13, he agreed that Greenleaf raight dis
count Morris's endorseraent at two and a half per cent per
month. May 22, he writes: "Remeraber poor Higby;
I am distressed for him beyond measure." July 20, he
wrote to Cranch, who was his agent at Washington, that
he and Nicholson had bought out Greenleafs share of
Washington. They made a contract of division, which is
in the Ford Collection. Morris and Nicholson each owed
Greenleaf $127,514, payable in 1796, 1797, 1798, and
1799. In the same coUection is an account of John
Nicholson with the three partners for land bought, being
an account of their joint land transaction. August 14,
Morris wrote to Cranch that he could not raise money.
Two and three per cent per month was the common rate.
On the 17th he wrote that he was deterrained to finish the
houses which had been begun in Washington. Noveraber
13, he writes to Cranch: "Hard, very hard is our fate,
to be starving in the midst of plenty, for we have abundant
property. Money, however, cannot be obtained for any
part of it at present, but it will come by and by." Other
letters to Cranch through 1795 repeat this coraplaint of
money distress. There was in fact a commercial crisis
in 1795 and 1796 coincident with that in England. In
March, 1796, Morris wrote to Nicholson: "We must see
General Stewart [one of the Commissioners for buUding
Washington] this day, and if you wiU not attend, the city
of Washington will go  ." April 9, he writes to
Nicholson: "You must squeeze out $500 for the bearer.
He has come far for it, and must not retum without."
May 28, 1796, Morris and Nicholson bought out Green
leafs share in the North American Land Company for
$1,150,000, one half in Robert Morriss drafts on Nicholson

282 The Financier and the
accepted by the latter, and one half in Nicholson's drafts
on Robert Morris accepted by hira, at one, two, three, and
four years.'
A suit between Alexander and Morris was mentioned
above,^ in which Morris obtained a decision in the Court
of Chancery which left Alexander indebted to hira. In
1796, when Morris and Nicholson made their cross-notes
and endorsements, Alexander bought some of them, and
tried to pay his debts to Morris with them at their face
value. With regard to the making of these notes, the
court say: "It is impossible to justify Morris, whether
his conduct proceeded from his distress or an insatiable
thirst for riches, in coining these millions of notes to circu
late under a promise to redeem them at full specie value,
which he must have known he would not be able to do,
and that the world would be thereby deceived. Accord
ing to his account, however, mankind was not wholly de
ceived. They got into circulation by his depositing them
in heaps for money borrowed, and their value to him was
what they would sell for, and those sales gave a tone to
their depreciation from time to time, as a rate at which
they were generally passed between individuals. Of these
deposits and sales we have no account till 1796." Some
were then used as collateral at ten cents on the dollar, and
were sold in February, 1797, at 3.6 cents on the dollar.
This was the rate at which Alexander obtained them, the
transaction having been proved in court. The court held
that he could deliver them in payment of a judgment
which had been obtained against him, after ten years'
litigation, only at the price at which he bought them.
" It is believed that the widows and orphans spoken of,
and all others holding Morris's notes would be glad to be
so paid for them." ^
1 Wright's Rep. vii. 23. 2 ggg page 174. » Call's Reports, iii. 91.

Finances, of the Americati Revolution. 283
These notes are also mentioned as having been used as
collateral in Petersen v. Willing et al}
At the end of the " Account " Morris wrote, in regard
to these notes : " It is well known that Mr. Nicholson and
rayself owe a very large debt by notes drawn and endorsed
by each. The issuing of these notes is the blamable part
of our conduct, which we have both felt and acknowledged.
But as no use can arise to the holders of such paper from
any reflection I can now raake, I will forbear any atterapt
to justify that business, although circumstances might be
adduced that would at least soften the disposition to cen
sure. I do not pretend to name the amount of notes out,
as I have not a correct account of what was issued, nor
what has been paid, or otherwise satisfied. Mr. Nicholson
was to have kept a register thereof; but when I entered
with him into an exaraination, it was found very inac
curate. Therefore the araount of these notes that are or
may be proved before the Commissioners must be taken
as the nominal araount that remained unsatisfied. As to
the value received for them, I must be silent."
In June, 1796, Morris and Nicholson conveyed part of
the Washington land to Greenleaf All through that year
Morris was in dire distress for raoney. In a letter to
Nicholson, Deceraber 19, 1796, he says: "I have a
dreadful time of it." ^ December 13, Chauncey Good
rich wrote to Oliver Wolcott, Sr. : " This place [Philadel
phia] furnishes indication of great depravity. Bankrupt
cies are frequently happening. Mr. Morris is greatly
embarrassed."^ In the same month Morris writes to Hamilton that
Talbot and Allen threaten suit against him as endorser on
a bill drawn in his favour by John Nicholson on Cazenove,
Nephew, & Co. Morris says that he is only endorser, and
1 Dallas, iii, 507. 2 Dreer Collection. ^ Gibbs, i. 410.

284 The Financier and the
wants to fight this claim. He employs Harailton as his
lawyer.' January 7, 1797, Morris had not fulfiUed a contract with
William Smith, and was under obligation to deliver to him
$50,000 in six per cent stock.^ He gave Smith's assignee
a mortgage on Genesee land as security. He has now
freed it by other securities. Succeeding letters show a
tangle in regard to this matter, which he is eager to break.^
January 13, 1797, Morris to Cranch : "The scenes of dis
tress are here so universal that it is hard to say who are
worst off." February 7, to Nicholson : " I am daily under
going the most mortifying and tormenting scenes that you
can imagine."* February 17, to Cranch, he writes that
his controversy with Greenleaf will be carried on in the
counting-house and not in the public prints. This referred
to a newspaper controversy which was going on. Morris
always claimed that Greenleaf was dishonorable or dishon
est, and chiefly to blame for Morris's calamities. April 27,
he wrote to Nicholson : " I have bad news from the city of
Washington, and wish to see you as soon as possible."
April 17, Morris and Nicholson made an offer to the hold
ers of their notes, who had been advertising them, of
twenty-five cents on the dollar in four annual instalments,
with land security. May 15, they prosecuted this negotia
tion with the assignees of Greenleaf, who were trying to
sell these notes as assets of his estate. His debts were
$720,000, Morris and Nicholson offered to pay this sum
in five annual instalments, in order to release their notes.
May 14, Morris wrote to Cranch that Washington City was
not good security in Philadelphia; that there was little
faith in it there. [It belonged to the creed of a good
Philadelphian at the time to believe that the city of Wash-
1 State Dep. MSS,, Hamilton Papers, xxii. 196, 2 gee page 278.
s Ibid. 202, * Dreer Collection.

Finances of the American Revolution. 285
ington never would be built, and that the capital would
stay at Philadelphia.] June 12, as the negotiation with
Greenleaf's assignees had not succeeded, Morris and Nich
olson gave notice that they should dispute the claim against
them, and they offered a comproraise. On the 15th they
explained that they had never received deeds from the trus
tees of the first owners of the site of the city of Washing
ton. In July they entered into further explanations of
the entanglement of their endorsements. The assignees
evidently found theraselves forced to corae to terras. All
the interests of Morris, Nicholson, and Greenleaf's as
signees were pooled in the "Aggregate Fund," of which the
assignees were raade the trustees.
May 20, Morris writes to HamUton that a man has not
answered a letter of his. " I have known the time when he
would have thought differently, and perhaps I may, not
withstanding present appearances, see that time again." ^
Three days later, " I ara not in a situation to answer off
hand, as was forraerly the case, every claim on my justice."
June 2, he writes to quiet Hamilton's uneasiness. He will
pay principal and interest. " The nature of your debt ties
me at aU events, and it shall be paid." He tries to re
assure Harailton also as to Church's security. No doubt
Harailton was exceedingly uneasy because he had loaned
Church's money, being Church's agent and lawyer. Mor
ris goes on : "I am, to be sure, disagreeably situated, but
my affairs are retrievable, if I could get the coraraon aid of
coramon times, and I will struggle hard. Keep all this to
yourself." ^
September 6, Morris wrote to Nicholson : " My Chest
nut Street house and lot, these grounds [the " HiUs"], and
sorae ground rents are advertised by Mr. Baker for sale on
the 15th instant." He cannot raise $500; feels great dis-
1 See p. 248. 2 State Dep. MSS, Ham, Papers, xii. 206. ^ Ibid. 210.

286 The Financier and the
tress for people who are petty creditors of his.' September
23, in writing to Nicholson, Morris speaks of a house in
which they spent two days in the " early stages of hide and
seek." ^ September 30, 'io the same, he writes that if their
afflictions are like those of Job, they must be patient. As
to his family, his "soul is wrung to the quick. Here I must
stop. This subject comes home to my feelings, which are
at this moment too strong to proceed, and I lay down the
pen." October 2, he wrote expressing chagrin at Hamil
ton's fears of losing what Morris owed him. He gives as
surance that he will pay.^ Noveraber i, he begs Hamilton
to intervene with Church. "I would fain hope that he
does not wish to take advantage of my necessities to obtain
my property at less than its worth." December 21, he has
heard that HamUton has attached his property, and he begs
Hamilton to explain what it is for.* There is in the State
Department a statement of this account, dated November
27> 'ijgj- The amount lent in the first place was $10,000.
The balance now due is $6,002, which is turned over to
Thomas Morris for the latter to pay.^
As this year 1797 draws to an end, Morris is sometimes
grimly facetious and humorous, and then again bursts into
these exclamations of grief and anxiety. October 25, to
Nicholson : " By heaven, there is no bearing with these
things. I believe I shall go mad. Every day brings forward
scenes and troubles almost insupportable, and they seem to
be accumulating so that at last they will like a torrent carry
everything before them. God help us, for raen will not."®
In spite of his troubles, in 1797, Morris found time to
congratulate Pickering on his spirited answer to Yrujo.''
1 Dreer Collection, All the letters which have been quoted from the
beginning of 1795 to this point, without reference, are in the Ford Collection.
2 Ford Coll. s State Dep., etc. 211. « Ibid. 213, 215.
' Ibid. 199. ' Dreer CoU, ' Pickering, iii. 408.

Finances of the American Revolution. 287
November 16, he wrote again to his partner about the
hopeless entanglement of their affairs. He wanted to pro
vide for those who had becorae entangled in his enterprises,
for whora he was greatly distressed. His dogs, by bark
ing, gave the alarra that there was soraebody on the prera
ises. He opened the window and found that it was a
sheriff's officer, to whora he answered : " Have patience,
and I will pay thee all." ' December 2, he wrote : " I
never stir out of the door." ^ December 5, to Cranch, he
speaks of " that painful distress of mind which has becorae
my constant companion."^ On the 15th he writes to
Nicholson that he has caused his gardeners to drive cred
itors off the premises. It appears that the creditors had
besieged his house at the " HUls," and lighted watch-fires
on the premises. Of one creditor he says : " I respect
him ; and I swear by aU that is sacred that he never shall
suffer one cent by R. Morris."*
The writ of arrest for Morris is given in full by Lossing.^
It was a ca. sa. writ to satisfy Blair McClenahan for a bill
of $16,017.71 and damages, on which judgraent had been
obtained. It was issued by Judge McKean on the 30th of
Deceraber, 1797. He was not, however, imprisoned imrae
diately. The first coraraitraent issued against hira was
January 17, 1798, at the suit of John Ely.® It is stated
elsewhere^ that one of the first creditors to sue Morris was
the Bank of Pennsylvania, which levied on a lot on Chest
nut .Street and sold it at a sacrifice.
Deceraber 21, Morris wrote to Nicholson that he wished
Nicholson was with hira. He has a good fire. " The night
is so cold that the devil hiraself would not turn out to
¦¦ Hist, Mag, August, 1870. ^ Dreer Collection.
3 Ford Collection. ^ Hist. Mag. July, 1864.
s Amer. Hist, Rec, ii. 229. ' Simpson, 713.
' App, to Maclay, 325.

The Financier and the

catch you ^oing home." His worst trouble is with Church
and Hamilton of New York. " Good heavens, what vul
tures men are in regard to each other ! " ' January ii, to
Nicholson : " Confidence has furled her banners, which no
longer wave over the heads of M. and N."^
January 17, 1798, writing to Hamilton, he mentions that
the latter has given indulgence to Thomas Morris for the
debt of Robert Morris. It appears also that HamUton's
action against Morris was in Church's interest. Morris now
writes : " I have frequently been without what was neces
sary for the market. ... I am a martyr to the times."
He complains of usury. No- loans are to be got. His
property has been " advertised, sold, sacrificed, and plun
dered." He has provided for Hamilton. "I am sensible
that I have lost the confidence of the world as to my pecu
niary abilities, but I believe not as to my honour or in
tegrity." ^ In the " Account " he says that his son Thomas
had satisfied his debt to Alexander Hamilton.
January 17, 1798, he writes to Nicholson that he expects
that his estate of the " Hills " will be taken from him in
March.* January 22 : " There is a Frenchman intends to
shoot me at the window if I do not pay a note he had
protested on Saturday." ^ January 29, he calls the " HUls"
"Castle Defiance."® January 31, he expresses great fear
of prison : "I detest Prune Street more than ever."''
February 3 : If he cannot raise money his house and lot
and the "HiUs" estate will be sacrificed on Monday.^
February 8 : The punishment of his imprudence in the use
of his name is, perhaps, just, — but his family ! " I wUl
try to see you before I go to prison." ^
^ Dreer Collection, 2 Ford Collection.
' State Dep., etc., 217. * Ford Collection,
6 Dreer Collection. 8 Ibid.
' Simpson, 713. The prison was in Prune Street,
8 Ford Collection. " Dreer Collection.

Finances of the American Revolution. 289
February 15, being under arrest, he sent back to Nich
olson forty dollars which he had received of him, saying,
" You want money as much if not more than I do," ' He
went to prison on the i6th. On the 24th he writes :
"Starvation stares me in the face." February 27: "I
have not money enough to buy bread for ray faraily." 2
February 20, he wrote to Nicholson that he had no place
in prison ; was trying to hire a roora at a high rent, and
make himself comfortable.^ Wood, an actor, who, when a
very young raan, was in prison at Philadelphia, reports that
he met Robert Morris there. " His person was neat,
although a little old-fashioned, adjusted with rauch care."
Pie was cheerful, but silent. He carried pebbles in his
hand, of which he dropped one at each round of the prison
yard. He spoke to the boy with great kindness, and gave
hira good counsel. Greenleaf was then in the prison also.*
In a letter of April 9, 1798, Morris "says that he walks
about the prison-yard fifty times every day. The pebbles
were to keep his count.*
March 13, we flnd a letter in which he begins to show a
certain grim and desperate reconciliation to facts. He
drops into the most atrocious poetry, — ^for the only time, so
far as we have found. The text of it, as it is given, would
require emendation as to capitals and punctuation before
it could be reprinted.® March 21, he tells Nicholson that
he disapproves of the conduct of Law, but will not consent
to a suit against him. " I think he has been a sufferer by
his transactions with us, and I cannot add thereto unless I
saw very strong and justifiable cause, which at present I
do not." "^ Thoraas Fitzsimraons stood by Robert Morris
to the last. To hira the latter wrote frora jail that he had
I Homes's Sketch, 16. 2 ibid. ^ Simpson, 713.
4 Wood's Recollections. ' Dreer Collection.
" Hist. Mag, July, 1864. 7 Ford Collection.
VOL. II. — 19

290 The Financier and the
been trying to get a room to himself, but that the rents
were high. He would soon get one, and be more corafort
able. "I feel like an intruder everywhere; sleeping in
other people's beds and sitting in other people's rooms. I
am writing on other people's paper, with other people's
ink, — the pen is my own ; that and the clothes I wear are
aU I can claim as mine here. If my creditors were wise
for their own sakes, they would not keep me idle here, when,
if I had my liberty, I might work efficiently for their bene
fit." ' May 15, he wrote to Nicholson: "I get frighted
as I go through my memorandums at the number and
amount of our notes. Then I leave off the work and lay the
papers aside, not for them to cool, but that my mind may
do it. I received your letter of yesterday, by which I see
the prison scene has made its impression on your mind.
You must come every Sunday; and it will grow so familiar
that you wiU think little of it, so long as you keep out on
weekdays."^ He sent to Nicholson a facetious invitation
to dine with him in the Prune Street prison on Sunday.
He calls it " the hotel with grated doors." ^
September 7, he wrote that his son Williara was Ul with
a slight cold. September 8, that William had a bilious
fever. October 10, he refers to the loss of William.* The
yellow fever was raging in the city at the time. Many of
the prisoners had it. Morris's wife and daughter visited
him daily. He said that he could not feel afraid of the
disease for himself. His son William died, not of the
epidemic, but of a bUious fever, at the age of twenty-
seven." October 15, Morris writes that the sick are aU
about him. He has no apprehension. On the i8th he
writes to the same effect, but that he will move to another
1 Lossing, Am. Hist, Rec, ii, 306.
2 Smith's Curiosities, xxx, facsimile. ^ Custis's Washington, 328.
* Dreer Collection. 6 Pgnn, Mag. ii. 178.

Finances of the American Revolution. 291
room, on account of Mrs. Morris's terror.' November 26,
he wrote to Charles Young : " I have just heard of an
estate of mine worth $100,000 being sold for $800 to pay
taxes. ' Such things are done.' " ^ December 15, evidently
in answer to an appeal frora Young, Morris says that he
cannot help hira to save his furniture ; " for that furniture
which was ray own is selling by pieceraeal, because I can
not raise raoney to save it." ^ Young was one of the
victiras of Morris's enterprise at Washington.
In 1798, when Washington was at Philadelphia as gen
eral of the array of the United States, he visited Robert
Morris in prison.* In 1799 General and Mrs. Washington
wrote a joint letter to Mrs. Morris, inviting her to Mount
Vernon, and assuring her of their "affectionate regard"
for her and her husband.* Custis says that Robert Morris
was the one man to whom Washington unbent.® Wash
ington certainly felt, to the end of his life, that Morris was
one of the few who had given him essential aid and un
swerving support to the best of their abilities, in the hardest
crises which he had been obliged to meet. He therefore
showed warm personal affection and regard for him.
January 30, 1799, Morris writes to Nicholson: "I am
looking forward with fear and trembling to the i8th day of
February, when another quarter's rent will be due and must
be paid, or ray sponsor will be called upon ; and that would
be worse than to be turned into the street. I am now lay
ing plans to provide for the payment."'^ February 6, he
writes that he has made a push for prison bounds; but if
not obtained, " I wiU quit all and begin again, being now
determined not to spend my life here for the sake of any
property whatever." » April 24, he wrote that Gouvemeur
Morris had come to see hira.^ Of this visit Gouvemeur
1 Dreer Coll. 2 pgn,, jjigt. goe. Coll. » Ibid.
* Custis, 327. 6 Simpson, 717. g Custis, 325.
t Ford Coll. 8 Hist. Mag. Nov. 1868. 9 Dreer CoU.

292 The Financier and the
Morris writes : " I am strongly affected by the situation
of my poor friend, and he seeras equally so. Mrs. Morris,
who is with him, puts on an air of firmness which she can
not support, and was wrong to assume." Next day he dined
with them in prison. " Morris and his family are in high
spirits, and I keep them so by a very lively strain of
conversation; but see, with infinite concern, that his
mind is more made up to his situation than I could have
believed. Mr. Ross speaks to me of Robert Morris's sit
uation, and says he behaved very ill. Mr. Fitzsimmons
teUs me that he is completely ruined by advances to Robert
Morris. Another man has sunk his $80,000 in the vortex.
Mr. Morris tells me that my share of the Genesee lands
has swept off what I owed to him, without which I should
have been considerably in his debt." '
April 29, Morris wrote to Nicholson again : " I enclose
herein two pitiable letters, — one from poor Swanzey, dated
the 30th of March, and the other frora Robert James, dated
15th instant. I wish we could raise some money for the
North American Land Company to pay these poor fel
lows." ^ AprU 2, he wrote a letter to the Trustees of the
Aggregate Fund, on brown wrapping-paper.^ In a letter
of December 11, 1800, he asks his correspondent: "If
you should find it necessary to write again, be good enough
to pay the postage of your letters, for I have not a cent to
spare from means of subsistence." * He mentions a broker
in Boston who owed him $47,70, balance of account. " I
wrote to request he would remit it, to help out subsistence,
but got no answer."^
March 14, i8or, Gouvemeur Morris visited him again.®
Morris was in jail from February 16, 1798, until August
26, i8or, — three years six months and ten days.^
1 Morris's Morris, ii, 378. ^ Penn, Hist, Soc, Coll, 8 pord Coll.
* Turner, 357. ^ Account, 40. ' Morris's Morris, i. 406.
' Penn. Mag, ii, 176.

Finances of the American Revolution. 293

CHAPTER XXXVI.
morris's account of HIS property; HIS wife's PENSION; HIS
DEATH; HIS family; HIS ESTATE.
FROM Morris's Account of his Property we select the
statements which are of the raost general interest.
The oldest judgment against Morris in New York was
by Talbot and Allen, " under which, as is said, aU my
rights and claims in the Genesee country have been ex
ecuted and sold by the sheriff." Colonel Burr, as attorney
for Levi Hollingsworth & Son, obtained a judgraent for out
lawry, " under which it was meditated, as I have been told,
to seU the whole of my purchase," meaning the Genesee
purchase. The Holland Company bought all the rights
and claims in the Genesee tract of Robert Morris, "it is
said," under the judgment of Talbot and Allen, as well as
under that obtained by Colonel Burr.
Morris constituted a special trust of 110,000 acres, in the
easternmost tract of the Genesee country, which he gave
to Fitzsimraons, Higby, and R. Morris, Jr., " in trust to
secure the payraent of sundry debts in that deed enuraerated,
being debts arising from disinterested loans of money or
narae, or attended with circumstances that rendered them
of superior claim upon my justice or integrity. This con
veyance is dated February 14, 1798." He made the list of
beneficiaries and their credits in round numbers, not hav
ing the books, " If any of my creditors are omitted, that

294 The Financier and the
upon the same principles ought to have been included, it is
attributable to the absence of books and papers, and not to
any desire to discriminate iraproperly."
He often mentions, in his notes on the open accounts,
persons who had lent hira money on endorsements, having
great confidence in him, and sometimes persons to whom
he had given assurances which had not been fulfilled, the
means being swept away in the current of his disasters.
Such a case was Jaraes Carey, of Baltiraore. " The bal
ance due to hira appears to be $3,718, exclusive of interest.
This debt is of the first class. It was a disinterested
assumption to relieve me from distress, and is included in
the Genesee security."
Thomas Fitzsimraons was a creditor for over $ r 50,000,
chiefly indorseraents. Hence he was one of the trustees
of the Genesee assignraent.
Richard Soderstrom, Swedish consul, is Morris's debtor
for more than $18,000, sums advanced for his subsistence,
assuraption of his debts, and loss on a ship which he
sold to Morris, as it appears, fraudulently, not being the
owner. Morris gave hira 100,000 acres of Genesee land,
in payment for services rendered, although he rendered
none, being well intentioned, but incompetent. Morris
credited him with the gain on this tract, leaving a balance as
above. " Under all these circumstances, this man, in imi
tation probably of some others, circulated among his cred
itors that I had caused his ruin ; and one of them actually
called upon me last summer to ask if what Mr. Soderstrom
said was really true, ' that he had lent me 100,000 guineas
in cash.' My answer was that he never had had a guinea
of his own to lend since I knew hira."
Nicholson and Morris contracted Vi^ith Charles Young
for $100,000 worth of goods; and besides notes for that
amount, they deposited notes to eight times the amount.

Finances of the American Revolution. 295
with power to sell if they failed to pay. He did sell to a
considerable amount, " but the notes having depreciated,
at his request a loan to a large amount of notes was raade,
which he was to replace. These accounts have not been
settled." "James Greenleaf. This is an unsettled account, and I
suppose ever will be so. Here comraenced that ruin which
has killed poor Nicholson, and brought me to the necessity
of giving an account of ray affairs. But I wUl forbear to
say more, lest I should not know where or when to stop." '
George Harrison is a creditor ; " but he has taken such
araple satisfaction by unbounded abuse that I feel less on
that score than otherwise I should."
" Gouvemeur Morris, Esq. These accounts show that I
ara in his debt nearly $24,000, exclusive of what he paid
in Europe on my account, the araount of which I do not
exactly know."
John Nicholson, deceased. "A heavy balance will be
found due to me on the accounts depending between this
my fellow-sufferer and rayself, probably upward of $600,000
specie, when all entries are raade that the transactions re
quire. With the purest intentions, he unfortunately laid a
train that ended as it hath done. I here say he laid the
train, because there are living witnesses that I opposed as
soon as I knew it, although from infatuation, madness, or
weakness, I gave way afterward."^
Gen. Henry Lee was a creditor for protested bills,
$39,466, besides damages and interest. " I have greatly
regretted that it has not been in my power to relieve the
General in this affair."
1 Nicholson died in 1800. Greenleaf lived until 1836.
^ Upon the settlement of his accounts, in 1796, with the State of Penn
sylvania, Nicholson was a debtor for $58,429. (Yeates, iv, 6; Smith wj.
Nicholson.)

296 The Financier and the
The following entries concem his family and his personal
affairs. There is an inventory of the articles found in his posses
sion in the debtor's prison. The furniture was nearly all
borrowed. Besides this there was a mass of papers, books,
and letters.
In 1797 he conveyed his household furniture to Thomas
Fitzsiriimons. It was sold at pubhc auction. "What is
now in Mrs. Morris's use has been lent to her by Mr.
Fitzsiraraons principally, and some few articles by Mr.
MarshaU [his son-in-law], so that I do not recoUect any
thing, and believe there is nothing in that house of my
property except bedding, clothing, part of a quarter cask
of wine, part of a barrel of flour, some coffee, a little sugar,
etc., in the family use. There is some bottled wine which
I do not consider as mine, but I choose to mention it that I
may avoid suspicion or reproach. This wine is what remained
in a quarter cask which I gave to ray daughter Maria, at
the same time that I gave one to her sister some years ago,
destined to be used on a particular occasion. The cask
leaked, and the remainder was bottled, put up in boxes,
and Mrs. Morris has possession of it for her daughter."
" Mrs. Mary Morris, my wife. The sum at the credit
of this account, $15,860.16, arose from the sale of two or
three tracts of land or farms in Maryland, left to her by her
father, the late Col, Thomas White, which I sold with great
reluctance when necessity pressed and she urged me to it.
I consider this as a sacred debt, but have made no provi
sion for it (an assignment I made upon the Genesee prop
erty intended as a compensation for relinquishment of
dower, being invalid and of no effect). Therefore it
depends on my creditors whether any is to be raade or
not." " Esther Morris, ray daughter. In this account wUl be

Finances of the American Revolution. ' 297
found a credit for a legacy of a hundred pounds, left to her
by her grandraother and received by rae. As I gave her
nothing on h^' raarriage except clothes and sorae old wine,
I thought it a duty to pay this legacy, and for that purpose
I have assigned to her two quarter chests of tea which I
sent to Alexandria for sale. I fear, however, that this will
not amount to principal and interest." In his books there
stands an entry of a debt to her of a balance for which he
promised to buy her a share of bank stock. Her poor little
legacy was lost no doubt in the great deluge of calamity.
His son-in-law, James M. Marshall, husband of Esther,
just raentioned, was his creditor for raore than .^20,000
sterling, advanced to Robert Morris, Jr., in London, to
take up Morris's biUs. Morris tried to secure hira by an
assignment of North American Land Company's stock,
and other things of the sarae sort.
Bishop White, his brother-in-law, was one of his cred
itors for some amount exceeding $3,000.
His son Robert was a debtor for sums of money spent
in Europe, which his father considered large. Robert had
presented no vouchers that these expenditures were for his
father's account,
A tailor's bill for $144.94 "'s for an account against ray
son Charles, when under age, contracted without ray knowl
edge. It was owing to the facUity of such credits that this
son Charles of mine contracted habits I never could break
him of afterward." Charles's shoemaker's biU, $24.50,
follows. " I have an old, worn-out gold watch that was my father's.
He died in 175 1. I have had it ever since, and do not
want to part with it even now, if I can avoid it. I believe
it will sell for very little." At his death he gave this watch
to Robert, Jr.' 1 Westcott, 375.

298 The Financier and the
The "Account " is the product of an attempt on Morris's
part to inforra his creditors about his affairs, to save trouble
to his chUdren after his death, and, by setting off debts
against credits and assets, to distribute the remnants of his
property among his creditors as equitably as possible.
It is a pathetic attempt, and awakens the pity of the reader.
He still had faith in the big figures at which he had valued
his land, when others had lost that faith ; and he went on
putting " riders " on the assignments already made so as to
distribute a " surplus " which would never be realized.
Morris retained many of his friends ; but, after 1796, his
credit was gone. From the time that he and Nicholson
issued their cross-bills, he was in the position of a wUd and
desperate bankrupt.
Those who have written about Morris and his career have
almost always contrasted the end of his life with his services
to the United States, and have expressed or implied blame
on the country for neglect or ingratitude. A little reflec
tion will show that there is no ground whatever for any
imputation of the kind. Morris's enterprises were under
taken entirely on his own judgment and responsibiUty.
He engaged in the ones which immediately caused his ruin
ten years after he left office. He had a large salary and
good opportunities, which he used while in office. He
never gave anything to the public, nor lost anything by the
public service. He died indebted to the United States for
nearly $100,000. It cannot be said that the United States
were bound to guarantee him against his own speculations
for the rest of his life.
In 1800 Callender wrote, with reference to him: "It is
likely that Morris cannot tell within five milUons of dollars
the extent of the sums for which he is indebted. They
have been variously guessed at, from twelve millions of
dollars to thirty millions. His biUs would hardly bring

. Finances of the American Revolution. 299
fourpence per pound at auction, and perhaps nothing ; yet
he hves in all the splendour that a prison can afford. It is
supposed that he will transfer an ample fortune to some of
his descendants. To this perfection has a federal Congress
improved the laws of bankruptcy." ' Morris was released
under the federal bankruptcy law.
In the " Account " Morris gives the facts of one of his
transactions to the following effect : He sold to Cazenove a
million and a half of acres, with an option to the purchasers
to make it a sale or a mortgage at a time fixed. They
elected to make it a purchase, and later wanted deeds of
confirmation. When these were subraitted to lawyers, they
informed Morris that he had an equal right with the pur
chasers to elect whether it be a sale or a mortgage, upon
repayment of the consideration, — namely, ;£i 12,500 ster
ling. " And it was urged that as my affairs were then
so deranged that I was obUged to keep close house, it be
carae my duty to reserve this right to my creditors, and
not to sign the deeds of confirmation. To this reasoning
I subraitted reluctantly; because I thought the sale a fair
one, intended at the tirae by me to be positive, and which,
if my affairs had been in such a situation as that no cred
itors could have been affected, I certainly would have signed
a new deed*without hesitation. That I did not do it was
to me a raatter of regret, under which I have never felt
perfectly satisfied. By this detail ray creditors are inforraed
of this claim."
February 10, 1801, T. L. Ogden and Gouvemeur Morris,
the latter holding all the right which Robert Morris had in
the year 1797 or subsequently under this transaction, made
a conveyance to the purchasers or lenders, it being in con
troversy which they were. By these deeds all the en
tanglements of buyers from Robert Morris with his affairs
1 CaUender, Prospect before Us, 21.

300 ' The Financier and the
were dissolved.' We have not been able to learn certainly
whether it was in connection with this transaction or an
other that Gouvemeur Morris obtained for Mrs. Morris from
the HoUand Company an annuity of $1,500 per annum.
The statement which is made about it is that it was her
dower right which had not been cancelled in some of the
transactions.^ When Robert Morris came out of prison he went to live
with his wife, in the home which she was enabled to pro
vide by means of this annuity. It was in Twelfth Street,
between Market and Chestnut. There he ended his days.^
January 14, 1803, Gouvemeur Morris wrote in his diary
that Robert Morris, in the last suramer, " came to me lean,
low-spirited, and as poor as a commission of bankruptcy can
make a man whose effects will, it is said, not pay a shilling
in the pound. Indeed, the assignees will not take the
trouble of looking after them. I sent him home fat, sleek,
in good spirits, and possessed of the means of living com
fortably the rest of his days." *
Robert Morris died May 8, 1806. He was buried
behind Christ Church, on Second Street, Philadelphia.
The entrance to the vault is enclosed in an old-fashioned
rectangular brick enclosure, with a slab lying horizontally
upon it. The inscription on it reads : " The family vault
of WiUiam White and Robert Morris. The latter, who
was Financier of the United States during the Revolu
tion, died the 8th of May, 1806, aged 73 years." Prob
ably when he was buried there the vault was in the grass
of the churchyard, with the blue sky and the bright sun
above, even though there was a city about. Now the whole
churchyard is covered with a brick pavement, and a school-
I O'Reilly, 148.
2 Amer. Review, vi. 79 ; Penn, Mag, ii. 180, Cf. page 296.
8 Simpson, 713, * Morris's Morris, ii, 432.

Finances of the American Revolution. 301
roora addition to the church has been built at the height
of the second story above the grave. His resting-place is
now, therefore, a darap and dark corner.
Sullivan wrote of hira : " In his person (as now recol
lected) he was of nearly six feet in stature ; of large, full,
well-forraed, vigorous frame ; with clear, sraooth, florid
complexion. His loose, gray hair was unpowdered ; his
eyes were gray, of middle size, and uncommonly brUliant.
He wore, as was coraraon at that day, a full suit of broad
cloth of the sarae color, and of light raixture. His manners
were gracious and siraple, and free from the formality
which generally prevails. He was very affable, and raingled
in coraraon conversation, even with the young." ' Hart
says that he was a patron of the arts.^ There are four por
traits of him, one of which was engraved for the ten-dollar
silver certificates of 1880.
Morris was rather a modern than an eighteenth-century
man. John Adaras said that he was a " frank, generous,
and raanly mortal." ^ He was energetic, enterprising, and
sanguine. If he had lived in our day, it would have suited
him far better than the tirae in which he lived. His por
traits show that he had a sanguine teraperament, and could
sleep well even under heavy anxieties and responsibilities.
In all his public career, and in the best part of his life, we
find hira constantly tugging against the sluggish habits of
his conteraporaries, and the slow and shiftless methods
which then prevailed. Evidently his habit was to take the
best and most hopeful view of things, and this led him
soraetiraes to put a better face on them to other people
than the facts would strictly warrant. He had the specu
lator's zeal, and the enthusiasm of an enterprising man to
fire others with his own faith in what he had undertaken.
1 Sullivan, Public Men, 141. 2 Penn, Mag, ii. 182.
' Adams, ix, 609,

302 The Financier and the
This sometimes makes him appear plausible and disin
genuous. He showed this as much when these enterprises
were in the discharge of public duty as when they were
private. This gave people occasion sometimes to charge
that he had misled thera ; and we can often see now, when
we read what he wrote, that he went beyond the facts.
In foUowing his career we have repeatedly noticed that
he entered upon a new undertaking with fire and enthusi
asm, but seemed to tire of it later. The greatest virtue of
that period was fortitude. By force of that virtue a man
could bear up and persist against the disappointments,
delays, shiftlessness, and negligence which were universal.
It was this virtue which made George Washington great.
Franklin and Hamilton also possessed it in a less degree.
Morris did not possess it. He broke impatiently with the
bonds he could not endure.
He had seven children, — five boys and two girls. Three
boys and two girls survived him.
When Lafayette visited Philadelphia in 1824, the first
private call which he made in that city was on Mrs. Morris.
She died January 16, 1827.'
In the spring of 1801 sales of Morris's lands in eastern
Pennsylvania were being raade under execution,^
July 28, 1801, a commission in bankruptcy was issued
against him in the eastern district of Pennsylvania, under
the Act of Congress of April 4, 1800. Debts were proved
to the amount of three miUion doUars. The Commission
ers in bankruptcy assigned the assets to the assignees of
the creditors. No action was taken untU 1825, when Henry
Morris, son of Robert, petitioned the district court to
supersede the commission in bankruptcy, on the ground
that Morris was dead and his estate was being wasted. In
1830 this petition was granted without opposition. After
1 Penn, Mag, ii. 182. 2 Wallace, Cire, Ct. Rep, 118,

Finances of the American Revolution. 303
due proceedings, land in Schuylkill County was sold to
satisfy a judgraent obtained in 1797, by Joshua Bond. In
1836 and 1838 atterapts were made to revoke the super
sedeas of the coraraission in bankruptcy, but without
success.' Robert Morris raade a will June 13, 1804, by which he
left all his property to his wife. She raade a will, October
22, 1824, by which she left all her property to her daugh
ter, Mary Nixon. The latter died Septeraber 11, 1852,
having left all her property by will to her four daughters.
June 13, 1853, the heirs of Robert Morris united in a deed
to Robert PaschaU. January 31, 1854, he conveyed it aU
to John Moss.^
Only two thirds of the six million acres which it was at
first intended to put into the North American Company
were transferred to the trustees. The best lands, being
those in Pennsylvania, were kept out of it. Therefore only
22,365 shares were issued, of which each partner had one
third. May 28, 1796, as above stated, Morris and Nichol
son bought Greenleaf's interest, or made a contract to do
so. Greenleaf was to keep the shares until they were paid
for, and also the cross notes and indorsements which the
other two gave him. The three had agreed to guarantee
six per cent dividends on the stock, and had put one third
of the shares issued in pledge to secure this guarantee.
September 30, 1796, Greenleaf created the "381 Trust"
by transferring to George Simpson as trustee the shares
and notes of the other two held by him. Morris and
Nicholson paid the guaranteed dividend for two years.^
October 23, 1807, the shares which had been deposited
to establish the guarantee were sold at seven cents each,
1 Crabbe, 72.
2 Pamphlet in the possession of the Pennsylvania Historical Society.
' Wright's Rep, vii, 23; P, F. Smith's Rep, a. 250,

304 The Financier and the
and bought in by the managers. In 1856 the trustees of
the North American Company held $92,071.87 to distrib
ute. The auditor of this account made a report upon the
distribution which was proposed, frora which an appeal
was taken. In 1862 the Supreme Court decided that the
guarantee of the dividends was enduring, and barred out
the Morris and Nicholson interest from any share in the
amount,' In 1 862 and the following years, however, other proceed
ings took place upon the second accounting of the trustees,
and in 1869 the previous decision was reversed. It was
established that the shares were sold in 1807, not in order
to pay dividends, but to buy in the shares and get control,
and it was held that the guarantee was waived. A recon
struction of the Company took place at that tirae, to which
the guarantors never assented.^
In 1870 the Auditor-general of the State issued a com
mission to the Deputy Escheator in the matter of an
alleged escheat of the "381 Trust" and the "Aggregate
Fund." The Pennsylvania Company for the Assurance of
Lives applied for an injunction against the Escheator, that
Company being the trustee of the money which was on
hand for somebody, if it could be found out to whom it
properly belonged. It was claimed by the State as the
property of persons unknown for seven years or more,
January 14, 1871, the Supreme Court in banc made the
injunction perpetual, on the ground that the property was
not a waif or stray, but in the hands of a trustee untU the
question of its ownership should be properly decided.^
An Auditor's report of 1880, on the administration of
this estate, says that litigation in the affairs of the North
American Land Company has been phenomenal. The
1 Wright's Rep. vii. 23, 2 p f. Smith's, Rep, x. 247,
' Ibid, xiv. 195.

Finances of the American Revolution. 305
counsel for the Morris and Nicholson interests have pur
sued the funds for twenty-five years, seeking to obtain them
from the trustees of the North Araerican Company, the
" 381 Trust," and the " Aggregate Fund." After all coun
sel fees and expenses, the amount available for division
to the Morris interest was $9,692.49,

VOL. II. — 20

LIST OF AUTHORITIES.

[p-u/t titles of books referred to in this volume, in the alphabetical order of the
short designations by which they have been cited \
Account. Account of Robert Morris's Property, without titlepage
or date, but apparently printed in connection with the legal pro
ceedings of i860.
Adams. Works of John Adains, with a Life and Notes by Charles
Francis Adams. Boston, 1856.
Adams's Letters to his Wife. Letters of John Adams, Addressed to
his Wife. Edited by C. F. Adams. Boston, 1841.
Almon. The Remembrancer; or. Impartial Repository of Public
Events. J. Almon, London, Period of the Revolution.
Amer. Arch. American Archives, published by M. St. C. Clarke
and Peter Force. 4th and 5th series. 9 vols. Washington,
1837-1853-
Amer. Reg. The American Register ; or. General Repository of His
tory, Politics, and Science. 1806-18 12.
Amer. Rev. The American Review. A Whig Journal of Politics,
Literature, Art, and Science. New York. From 1845.
Anburey. Journal d'un Voyage fait dans I'intdrieur de I'Amerique
septentrionale traduit de I'Anglais. [By Thomas Anburey.]
Paris, 1793.
Anonym. Biog. of 1841. A Life of Robert Morris, the great
Financier. With an engraving and description of the celebrated
house partly erected in Chestnut Street, between 7th and Sth,
south side. 1841.
Arnold's Court-Martial. Proceedings of a General Court-Martial
for the Trial of Major-General Arnold. Privately printed. New
York, 1865.

3o8 List of Authorities.
Balch's Frangais, etc. Les Frangais en Amdrique pendant la Guerre
de rind^pendance des Etats Unis. 1773-17S3. Par Thomas
Balch. Paris, 1872.
Bancroft. Bancroft's History of the United States. Boston, 1874.
Bayley. The National Loans of the United States from July 4,
1776, to June 30, 1880. By R. A. Bayley, Treasury Depart
ment, loth Census. Washington, 1882.
Belknap Papers. Collections of the Massachusetts Historical So
ciety. Sixth series, vol, ix. 1891.
Biddle. Autobiography of Charles Biddle. Edited by J. S. Biddle.
Privately printed. Philadelphia, 1883.
Blackman. History of Susquehanna County, Pennsylvania. By
Emily C. Blackman. Philadelphia, 1873.
Bland Papers. The Bland Papers, being a selection from the MSS.
of Col. Theodoric Bland, Jr. Edited by C. Campbell. Peters
burg, Va., 1840.
Boogher. Boogher's Repository. Edited by H. W. Smith. Philadel
phia, 1883.
Breck. Historical Sketch of Continental Paper Money. By Samuel
Breck. Philadelphia, 1863.
Brissot. Nouveau Voyage dans les Etats Unis de I'Amerique septen
trionale en 1788. Par J. P. Brissot [de Warville]. Paris,
1791.
Call. Reports of Cases Argued and Adjudged in the Court of Ap
peals of Virginia. By Daniel Call. Richmond, 1823.
Callender's History, A History of the United States for 1796. By
J. T. Callender. Philadelphia, 1797.
Callender's Letters. Letters to Alexander Hamilton, King of the
Feds. New York. Printed for the Hamilton Club. 1866.
Callender's Prospect. The Prospect before Us. By J. T. Callender.
Richmond, 1890.
Canadian Archives. Report on Canadian Archives. 1890. By
Douglas Brymner. Ottawa, 1891.
Carey's Debates. Debates and Proceedings of the General Assem
bly of Pennsylvania on the Memorials, Praying a Repeal or Sus
pension of the Law Annulling the Charter of the Bank. Edited
by Matthew Carey. Philadelphia, 1786.
Chalmers' Opinions. Opinions on Interesting Subjects of Public
Law and Commercial Policy arising from American Independence.
By George Chalmers. London, 1784.
Chalmers' Revolt. An Introduction to the History of the Revolt of
the American Colonies. By George Chalmers. Boston, 1845.

List of Authorities. 309
Chastellux. Travels in North America in the Years 1780, 1781, and
1782, by the Marquis de Chastellux. Translated from the French.
London, 1787.
Cheetham's Narrative. A Narrative of the Suppression by Colonel
Burr of the History of the Administration of John Adams, late
President of the United States, written by John Wood. [By
James Cheetham.] New York, 1802.
Circourt. Histoire de 1' Action Commune de la France et de I'Ame
rique pour I'lnddpendance des Etats Unis par George Bancroft ;
traduit et annott par le Comte de Circourt. Paris, 1876.
The Civil War in America. The History of the Civil War in
America, from 1 775-1 777. By an Officer of the Army. London,-
1780.
Coll. State Papers. A Collection of State Papers relative to the
First Acknowledgment of the Sovereignty of the United States of
America and the Reception of their Minister Plenipotentiary by
their High Mightinesses, the States-General of the United Neth
erlands, at the Hague, 1782.
Crabbe. Eeports of Cases Argued and Adjudged in the District
Court of the United States for the Eastern District of Pennsyl
vania. By William H. Crabbe. Philadelphia, 1853.
Custis. Recollections and Private Memoirs of Washington. By
G. W. P, Custis. New York, i860.
Cutler's Cutler. Life, Journals, and Correspondence of the Rev.
Manasseh Cutler. Edited by W. P. and J. P. Cutler. Cincin
nati, 1888.
Dallas. Reports of Cases Ruled and Adjudged in the Courts of Penn
sylvania before and since the Revolution. By A. J. Dallas.
Philadelphia, 1806.
Delaplaine, Delaplaine's Repository of the Lives and Portraits of
Distinguished Americans. Philadelphia, 1818.
Deane's Address. An Address to the Free and Independent Citizens
of the United States of North America. By Silas Deane. Hart
ford, 1784.
Deane's Narrative. In the Volume of Papers published for the
Seventy-Six Society. Philadelphia, 1855.
Deane Papers. Papers in relation to the Case of Silas Deane.
Printed for the Seventy-Six Society. Philadelphia, 1855.
Dialogue, etc. A Dialogue between a Southern Delegate and his
Spouse, on his Return from the Grand Continental Congress.
By Mary V. V. 1774.
Diary of the Rev. Diary of the American Revolution. By Frank
Moore. New York, i860.

3 ID List of Authorities.

Dip. Corr. Rev. The Diplomatic Correspondence of the American
Revolution. Editedby Jared Sparks. Boston andNew York, 1829,
Dip. Corr. U. S. The Diplomatic Correspondence of the United
States, 1783-1789. [Edited by Jared Sparks.] Boston and New
York. 1832, 1833.
Doc. Hist. N, Y. The Documentary History bf the State of New
York, Arranged under the Direction of C. Morgan, Secretary of
State. By E. B. O'Callaghan. Albany, 1850.
Durand. New Materials for the History of the American Revolution.
By John Durand. New York, 1889.
Billot's Debates. The Debates in the Several State Conventions
on the Adoption of the Federal Constitution. Collected and Re
vised by Jonathan Elliot, Philadelphia, 1866.
BUiot's District. Historical Sketches of the Ten Mile Square. By
Jonathan Elliot. Washington, 1830.
Elliot's Funding. The Funding System of the United States and
Great Britain. By Jonathan Elliot. Washington, Blair and Rives,
1845. 28th Congress, ist Session, Executive Documents, Vol. II.
BUis and Evans. History of Lancaster County, Pennsylvania. By
F. Ellis and S. Evans. Philadelphia, 1883.
Findley. History of the Insurrection in the Four Western Counties
of Pennsylvania in the Year 1 794. By William Findley. Phila
delphia, 1796.
Ford's Pamphlets. Pamphlets on the Constitution of the United
States, Published during its Discussion by the People. 1787 and
1788, Edited wilh Notes and a Bibliography by P. L. Ford.
Brooklyn, 1888.
Fox's Adventures. The Adventures of Ebenezer Fox in the Revo
lutionary War. Boston, 1838.
Franklin. The Works of Benjamin Franklin. By Jared Sparks.
Boston, 1836.
FrankUn in France. Franklin in France. By E. E. Hale and E. E.
Hale, Jr. Boston, 1887.
Friendly Address. A Friendly Address to all Reasonable Ameri
cans on the Subjectof our Political Confusions. [By Dr. Cooper.]
New York, 1 774.
Futhey and Cope. History of Chester County, Pennsylvania. By
J. S. Futhey and Gilbert Cope. Philadelphia, 1881.
Gallatin's Writings. The Writings of Albert Gallatin. Edited by
Henry Adams. Philadelphia, 1879.
Gallow^ay's Bxam. The Examination of Joseph Galloway, Esq., by
a Committee of the House of Commons, Edited by Thomas
Balch, Philadelphia. Printed for the Seventy-Six Society. 1855.

List of Authorities. 311
George III. The Correspondence of King George the Third with
Lord North from 1768 to 1783. Edited by W. B. Donne. Lon
don, 1867.
Gibbes. Documentary History of the American Revolution, consist
ing of Letters and Papers relating to the Contest for Liberty,
chiefly in South Carolina. 1776-1782. By R. W. Gibbes. New
York, 1857.
Gordon. History of the Rise, Progress, and Establishment of Inde
pendence by the United States. By William Gordon. London,
1788.
Gouge. A Short History of Paper Money and Banking in the United
States. By William M. Gouge. New York, 1835.
Graydon. Memoirs of his own Time, with Reminiscences of the Men
and Events of the Revolution. By Alexander Graydon. Edited
by J. S. Littell. Philadelphia, 1846. [First published in 181 1.]
Greene against Bancroft. Nathaniel Greene : An Examination of
some Statements concerning Major-General Greene, in the Ninth
Volume of Bancroft's History of the United States. By G. W.
Greene. Boston, 1866.
Hamilton. Alexander Hamilton. By W. G. Sumner. Makers of
America Series. New York, 1890.
Hamilton's Republic. History of the Republic of the United States
of America, as traced in the Writings of Alexander Hamilton and
his Contemporaries. By J. C. Hamilton. NewYork, 1858.
Hamilton's Works. The Works of Alexander Hamilton. Edited
by H. C. Lodge. New York, 1885.
Hazard's Annals. Annals of Philadelphia and Pennsylvania in the
Olden Time. By W. P. Hazard. Philadelphia, 1879. [The
3d Volume of Watson's Annals.]
Hazard's Register. The Register of Pennsylvania. Edited by
Samuel Hazard, from 1828. Philadelphia.
Heath's Memoirs. Memoirs of Major-General Heath. By himself.
Boston, 1798.
Hinman. A Historical Collection from Official Records, Files, etc., of
the Part sustained by Connecticut during the War of the Revo
lution. Compiled by Royal R. Hinman. Hartford, 1842.
Homes, Description and Analysis of the Remarkable Collection ot
Unpublished Manuscripts of Robert Morris. By H. A. Homes,
Albany, 1876.
Hopkinson. Hopkinson's Judgments, in the Supplement to the Re
ports of Cases Adjudged in the District of South Carolina. By
the Hon, Thomas Bee. Philadelphia, 1810.

3 1 2 List of Authorities.
Hough. Proceedings of a Convention of Delegates from several of
the New England States,, held at Boston, August 3-9, 1780.
Edited by F. B. Hough. Albany, 1867.
Hutchinson's Letters. The Letters of Governor Hutchinson and
Lieutenant-Governor Oliver, printed at Boston, and Remarks
thereon, with the Assembly's Address and the Proceedings of the
Lords Committee of Council, together with the Substance of Mr.
Wedderburn's Speech. London, 1774.
Impartial History. An Impartial History of the War in America,
between Great Britain and her Colonies, from its Commencement
to the End of the Year 1779. London, 1780.
The Independent Gazetteer, or the Chronicle of Freedom. Phila
delphia.
Jay's Jay. The Life of John Jay. By William Jay. New York,
1833-
Jefferson. The Writings of Thomas JefEerson. Edited by H. A.
Washington. Washington, 1854. '
Johnson's Greene. Sketches jof the Life and Correspondence of
Nathaniel Greene. By William Johnson, Charleston, 1822.
Johnston's Jay. Correspondence and Public Papers of John Jay.
Edited by H. T. Johnston. New York, 1890.
Jones's Letters. Letters of Joseph Jones, of Virginia. Department
of State, Washington. 1889.
Jones's New York. History of New York during the Revolution
ary War. By Thomas Jones. Edited by E. F. De Lancey.
Printed for the New York Historical Society. 1879.
Journ, Cong. Journals of Congress from Folwell's Press. Philadel
phia, 1800.
Journal of the General Assembly of the Colony of New York,
1691-1743. New York, 1766.
Journal of the Legislative Council of the Colony of New ifork,
1743-1775- Albany, 1 861.
Kalb, The Life of John Kalb. By F. Kapp, New York, 1884.
Laurens's Corr. In Materials for History, which see.
Leake's Lamb. Memoir of the Life and Times of General John
Lamb. By Isaac Q. Leake. Albany, 1850.
Lee's A, Lee, Life of Arthur Lee. By R. H. Lee. Boston, 1829.
Lee's R, H. Lee. Life of Richard Henry Lee. By R. H. Lee.
Philadelphia, 1825.
Lee on the Friendly Address. Strictures on a Pamphlet entitled
"A Friendly Address to All Reasonable Americans, on the Sub
ject of our Political Confusion," addressed to the People of
America. [By Gen. Chas, Lee.] Philadelphia, 1774.

List of Authorities. 313
Lee Papers. Collections of the New York Historical Society, 1871-
1874.
Letter to Lord G. Germain. A Letter to Lord George Germain.
London, 1776.
Letters to R, Morris. In the Collections of the New York Historical
Society for 1878.
Letters to Washington. Correspondence of the Revolution. Edited
by- Jared Sparks. Boston, 1853.
Lewis. A History of the Bank of North America. By Lawrence
Lewis. Philadelphia, 1882.
Liancourt. Voyage dans les Etats Unis d'Amerique fait en 1795-
1797. Par la Rochefoucauld-Liancourt. Paris, 1799.
Livingston and Smith. Laws of New York, 1752-1762. Editedby
William Livingston and William Smith. New York, 1762.
Lloyd's Debates. Proceedings and Debates of the General Assem
bly of Pennsylvania, taken in Shorthand by Thomas Lloyd. 1787.
Lomenie. Beaumarchais et 'son Temps. Par Louis de Lomenie.
Paris, 1873.
Loasing's Hist. Rec. The American Historical Record and Reper
tory of Notes and Queries. Edited by B. J. Lossing. Philadel
phia, 1873.
Macaulay's Chatham. The Earl of Chatham. By Lord Macaulay.
London, 1890.
Maclay. Journal of William Maclay. Edited by E. S. Maclay.
Second Edition. New York, 1890.
Madison Papers. The Papers of James Madison. Edited by H. D.
Gilpin. Washington, 1840.
Madison's Writings. Letters and other Writings of James Madison.
Philadelphia, 1865.
Mag. Amer. Hist. The Magazine of American History. New York.
From 1877.
Marshall's Diary. Extracts from the Diary of Christopher Marshall,
kept in Philadelphia and Lancaster during the American Revolu
tion, 1774-1781. Edited by William Duane. Albany, 1877.
Marshall's Washington, The Life of George Washington. By
John Marshall. Philadelphia, 1805.
The Massachusetts Historical Society Collections.
Mass.- Journ. The Journals of each Provincial Congress of Massa
chusetts in 1774 and 1775, and of the Committee of Safety.
Boston, 1838.
Mass, Papers. Papers relating to Public Events in Massachusetts
preceding the American Revolution, Printed for the Seventy-Six
Society. Philadelphia, 1856.

314 List of Authorities.
Materials for History. By Frank Moore. Printed for the Zenger
Club. New York, 1861.
McMaster and Stone. Pennsylvania and the Federal Constitution.
By J. B. McMaster and F. D. Stoue. Published by the Pennsyl
vania Historical Society. 1888.
Mease's Life of Morris, In the Portfolio, vol. xxix. 177, Hazard's
Register, ii. 234, and the American Edition of the Edinburgh En
cyclopedia, Philadelphia, 1832,
Morris's Morris. The Diary and Letters of Gouvemeur Morris.
Edited by A. C. Morris. New York, 1888.
N. Hamp, Prov, Papers. Documents and Records relating to the
Province of New Hampshire, 1692 to 1722. Manchester, 1869.
Nassau la Teck, Brieven over de Noord Americaansche Onlusten,
door Yonkheer Lodewijk Theodorus Grave van Nassau la Teck.
Utrecht, 1777.
New Haven Historical Society Papers.
N, J. Corr. Selections from the Correspondence of the Executive
of New Jersey, from 1776 to 1786. Newark, 1848,
N, J. Council of Safety. Minutes of the Council of Safety of the
State of New Jersey. Jersey City, 1872.
N, J. Prov, Cong, Minutes of the Provincial Congress and the
Commiu'ee of Safety of the State of New Jersey. Trenton, 1879.
N. Y, Journ. Journals of the Provincial Congress, Provincial Con
vention, Committee of Safety, and Council of Safety of the State
of New York. Albany, 1842.
North Am, Co. Observations on the North American Land Com
pany, lately Instituted in Philadelphia, to which are added Re
marks on American Lands in General, in two Letters from Robert
G. Harper, Esq., to a Gentleman in Philadelphia. [R. Morris,]
London, 1796.
Nourse. Twentieth Congress, First Session, State Papers, No. 107.
Obras de Florida Bianca, Ed. Ferrer del Rio. Madrid, 1867.
Biblioteca de Autores Espafioles.
Onderdonk, Suffolk, and Kings. Revolutionary Incidents of Suf
folk and Kings Counties. By H. Onderdonk. New York, 1849
Onderdonk, Queens. Documents and Letters intended to illustrate
the Revolutionary Incidents of Queens County. By H. Onder
donk. New York, 1846.
O'F.eilly. Sketches of Rochester. By H. O'Reilly. Rochester, 1838.
Paine's Works. The Political Writings of Thomas Paine. Boston,
1859,
Paris Papers; or, Mr. Silas Deane's Late Intercepted Letters to his
Brother and other Intimate Friends in America. New York.

List of Authorities. 315
Farliam, Hist. The Parliamentary History of England from the
Earliest Period to the Year 1803. London, 1814.
Paul Jones. Memoirs of Paul Jones. [Mackenzie.] London, 1843.
Pellew's Jay. John Jay. By George Pellew. Boston, i8go.
Pennsylvania Archives, Philadelphia, 1854. Second Series. Har
risburg, 1876.
Penn. Col. Rec. Minutes of the Supreme Executive Council of
Pennsylvania. Harrisburg, 1852.
Pennsylvania Historical Society Collections. Vol. I. Philadel
phia, 1853.
Penn. Journ. Journals of the House of Representatives Of the Com
monwealth of Pennsylvania, beginning the 28th day of November,
1776, and ending the 2d day of October, 1781, with the Proceed
ings of the several Committees and Conventions before and at the
Commencement of the American Revolution. Philadelphia, 1782^
The Pennsylvania Magazine of History and Biography.
The Pennsylvania Packet.
Penn. Papers. Letters and Papers relating chiefly to the Provincial
History of Pennsylvania, with some Notice of the Writers.
[Thomas Balch.] Philadelphia, 1855.
P. and G. Purchase. The History of the Pioneer Settlement of
Phelps and Gorham's Purchase and Morris's Reserve. By O.
Turner. Rochester, 1851.
Phillips. Historical Sketches of American Paper Currency. By
Henry Phillips, Jr. Roxbury, Mass., 1866.
Pickering's Pickering. Life of Timothy Pickering. By O. Pick
ering and C. W. Upham. Boston, 1867-1873.
Pinkerton. A General Collection of the Best and most Entertaining
Voyages and Travels in all Parts of the World. By John Pinker
ton, Arthur Young in France, in Vol, IV.
Pownall, Admin. The Administration of the Colonies. By Thomas
Pownall, London, 1766.
Pownall, Memoir. A Memorial most humbly Addressed to the Sov
ereigns of Europe, on the Present State of Affairs between the
Old and New World. [Thomas Pownall.] London, 1780.
Prior Documents. A Collection of Papers relative to the Dispute
between Great Britain and America. London, 1775,
Reed's Reed. Life and Correspondence of Joseph Reed. By Wil
liam B. Reed. Philadelphia, 1847.
Report of 1785. A Statement of the Accounts of the United States
during the Administration of the Superintendent of Finance, from
February 20, 1781, to November i, 1784. Philadelphia, 1785.

3i6 List of Authorities.
Report of 1790. Statements of the Receipts and Expenditures of
Public Moneys during the Administration of the Finances by
Robert Morri.s, Esquire, late Superintendent, with other Extracts
and Accounts from the Public Records made out by the Register
of the Treasury [Joseph Nourse] by Direction of the Committee of
the House of Representatives, appointed by an Order of the House
on the 19th of March, 1790, upon the Memorial ofthe late Super
intendent of Finance. This Report is reprinted in the Bankers'
Magazine, vol. xiv. p. 577.
Report of 1801. Report of the Committee appointed to inquire into
the Expenditure of Money made by the Commissioners of the
City of Washington, February 27, 1801.
Report of 1804. Message from the President of the United States,
transmitting a Report of the Surveyor of the Public Buildings at
the City of Washington, February 22, 1804.
R. I, Coll. Rec. Records of the Colony of Rhode Island and the
Providence Plantations in New England. Edited by J. R. Bart
lett. Providence, 1862.
Rogers's Smith. An Inquiry into the Nature and Causes of the
Wealth of Nations. By Adam Smith. Edited by J. E. Thorold
Rogers. Oxford, 1880.
Sabine. Loyalists of the American Revolution. By Lorenzo Sabine.
Boston, 1864.
St. Clair Papers. The St. Clair Papers. Edited by William H.
Smith. Cincinnati, 1882.
Schwab. History of the New York Property Tax. By J. C. Schwab.
Baltimore, 1890.
Secret Journ, The Secret Journals of Acts and Proceedings of Con
gress, 1 775-1 788.
Sheffield. Observations on the Commerce of the American States.
By John, Lord Sheffield. London, 1784.
Simpson. The Lives of Eminent Philadelphians. By Henry Simpson.
Philadelphia, 1859. The Life of Robert Morris is by Brother-
head.
Smith's Curiosities. American Historical and Literary Curiosities.
By J. J. Smith and J. F. Watson. Two Series, i860 and 1861.
South Carolina Historical Society Collections. Charleston, 1857-
Sparks's Morris, The Life of Gouvemeur Morris, with Selections
from his Correspondence and Miscellaneous Papers. By Jared
Sparks. Boston, 1832,
Staples. Rhode Island in the Continental Congress, 1 765-1790. By
W. R. Staples. Edited by R. A. Guild. Providence, 1870.

List of Authorities. 317
State Dep. MSS. The Manuscripts in the State Department about
Robert Morris are No. 137, three volumes and an Appendix.
Steuart. An Inquiry into the Principles of Political Economy, being
an Essay on the Science of Domestic Policy in Free Nations. By
Sir James Steuart. London, 1767. Written in 1760.
Steuben. The Life of Frederick William von Steuben, by F. Kapp.
New York, 1859.
Stevens. B. F. Stevens's Facsimiles of Manuscripts in European
Archives relating to America, 1 773-1 783. To Subscribers.
London.
Stifle's Dickinson. The Life and Times of John Dickinson. By
C. J. Stille. Philadelphia, 1891.
Sullivan. The Public Men of the Revolution. By W. Sullivan. Phil
adelphia, 1847.
Thomson Papers. The Papers of Charles Thomson, in the Col
lection of the New York Historical Society for 1878.
Treaties and Conventions concluded between the United States
of America and other Powers since July 4, 1776. Washing
ton, 1873.
Trumbull. Autobiography, Reminiscences, and Letters of John
Trumbull from 1756 to 1841. New York, 1841.
Turner, Pioneer History of the Holland Purchase of Western New
York. By O. Turner. Buffalo, 1850.
De Vayrac. Etat Present de I'Espagne. Par Jean de Vayrac. Am
sterdam, 1719.
Va. Papers. Calendar of Virginia State Papers and, other Manu
scripts preserved in the Capitol at Richmond. Richmond, 1875-
1885.
Vernon. The Diary of Thomas Vernon, 1776. Rhode Island
Historical Tracts, No. 13. Edited by Sidney S. Rider. Provi
dence, 1 88 1.
Votes and Proc. Votes and Proceedings of the House of Repre
sentatives of the Province of Pennsylvania, 1 767-1 776.
Van Sohaacli's Van Schaack, The Life of Peter Van Schaack, by
his son, H. C. Van Schaack. New York, 1842.
Wallace. Reports of Cases Adjudged in the Circuit Court of the
United States for the Third Circuit. Philadelphia, 1838.
Wain. Biography of the Signers of the Declaration of I ndependence.
By John Sanderson. Philadelphia, 1823. Vol. V., the Life of
Robert Morris, was written by Robert Wain, Jr. See Mass. Hist.
Soc. Proceedings for 1876-77, p. 393.

3i8 List of Authorities.
Walpole's George III. Memoirs of the Reign of King George the
Third. By Horace Walpole. Edited by Sir Denis le Marchant.
Philadelphia, 1845.
Walpole's Last Journ. Journal of the Reign of King George the
Third from 1771 to 1783, by Horace Walpole, edited by Dr. Doran.
London, 1859,
Washington. The Writings of George Washington. By Jared
Sparks. Boston, 1837.
Washington's Va. Cases. Reports of Cases Argued and Deter
mined in the Court of Appeals of Virginia. By Bushrod Wash
ington. Philadelphia, 1823.
Webster's Essays. Political Essays on the Nature and Operation
of Money, Public Finances, and other Subjects. By Pelatiah
Webster, Philadelphia, 1791.
Wells's S. Adams. The Life and Public Services of Samuel Adams.
By William V. Wells. Boston, 1865.
Westcott, The Historic Mansions and Buildings of Philadelphia.
By Thompson Westcott. Philadelphia, 1877.
W^ilkinson's Memoirs. Memoirs of my own Time. By Gen. James
Wilkinson. Philadelphia, 18 16.
Wood. Personal Recollections of the Stage. By William B. Wood.
Philadelphia, 1855.
Woodbury's Rep. 27th Congress, 3d Session, Senate Documents,
vol. iv. no. 229.
Wright. The American Negotiator ; or. The Various Currencies of
the British Colonies in America. By J. Wright, London, 1765.
Yeates. Reports of Cases Adjudged in the Supreme Court of Penn
sylvania. By the Honorable Jasper Yeates. Philadelphia, 181 8.

INDEX.

Accountability, i, 6, 7; ii. 105, 106,
no, Z14.
Accounts, lack of, i. 283. Publication of,
i. 287. Of tlie Financier, i. 267 ; ii. 1 16,
126-131 ; table, ii. 130,208-211, 233, 241.
Of the Committee ot" Commerce, i. 206,
209, 214, 223-225, 229 ; ii. 210, 216-220.
Of the Agent of Pennsylvania, ii. 205 -
207, 262.
Act, of March 18, 1780 (on currency), i, 85,
286, 298, 307. Of April 18, 1783 (rev
enue project), ii. 66, 101, 193, 191;.
Of April 26, 1784 (regulation of com
merce), ii. 194, Tiie English Naviga
tion, i, no, 114, Tlie American Navi
gation, ii. 193, 198-203. The Englisli
Restraining, i. 114, 115, 125.
Adams, John, i, 25, 87-91, 105, 176, i8r,
186, 188, 194, 222, 250, 252, 274; ii. 13,
112, 117, 122, 130, 225, 237, 271, 273, 291.
And tlie Lees, i. 177. His memorial,
i. 253, 300. He helps Morris, ii. 114,
116, 132.
Adams, Sam., i. 261, 262, 266.
Administration, inefficient, i. 164, 170, 245,
289, 306; ii. 79, 144, 179.
Adventurers, i. 157, 176.
Agio, ii. 112.
Agitation, pre-Revolutionary, i. no.
Aggregate Fund, li. 285, 292, 304, 305.
Aid, sanguine hopes of, i. 287 ; ii, 103.
Alexander, Wm., ii. 169, 170, 173, 174,
2S2.
Allegiance, i. 208, 235.
" Alliance," the, ii. 226.
Alma, ii. 260.
Ambassador, the English, i. 164, 183,
" America," the, i. 277; ii. 88, 226.
American Almanac, i. 98.
American character, i. 210, 217.
American history, i. 235.
American Register, ii. 250.
Ames, F-., ii. 244.
'• Amphitrite," the, i. 165, 171, 174,
Amsterdam, i, 187, 248 j ii, 5, 33.
Anarchy, i. 306.
Anburey,T., ii. 144. |

Annapolis, ii. 235.
" Anticipations," i. 42, 272, 273, 286 ; ii, 24,
31,62, 75, 100, 104, 105, 108, 125, 128,
130, 131, 149, 151.
Appleton, N., ii, 48,
Appleton's Encyclopaedia, ii. 162.
Appointments, i. 265, 266.
Appreciation of currency, i. 83, 282, 283 ;
ii. 17, 128.
Arms, scarce or abundant, i, ro6, 107, 142.
Levied on, ii, 118.
Army, the, committee from, ii. 89. Debt
to, i. 272. Description of, i. 306. Dis
bandment of, ii. 102, in. Disintegrat
ing, i. 204. Discontent of, i. 303.
Distress of, ii. 21, 51, 75, 102, 109. Pay
of, i. 301, 303, 305 ; ii. 63, 75, 91, IOI,
104, 105. Mutiny in, i. 272; li. 75, 90,
103, 113, 235. Unpopular, i. 154; ii.
183. Useless, ii. 59. And the public
creditors, ii. 99, 103. The French, sup
plies for, i. 295, 296, 304.
Arnold, B., i. 146, 233 ; ii. 223.
Association, the American, i. 23, 104, 108,
115, 142, 188. Articles of, i. 112.
Assumption, ii. 80, 122, 244, 245, 256,
Asylum Company, ii. 263.
Auctions, i. 77.
Avon, ii, 254,
Azores, ii, 223.
Bache, R., ii. 30.
Bahamas, ii. 1, 14.
Baldwin, J., i. 51.
Baltimore, Congress at, i. 169, 199, 200.
Bancroft, Dr., i. 160.
Bancroft, G., i, 245 ; ii. 34.
Bank, ii, 21. Proposed in New Hamp
shire, ii. 30. Of Amsterdam, ii. 112.
Of North America, i. 275 ; ii. 23-35, 157,
158, 164, 178, 183-192, 276, Of Penn
sylvania, ii. 22-24, 29, 287. First, of the
United States, ii, 261, Second, of the
United States, ii. 191, 227.
Bankers of the United States, i. 168, 177,
256, 281, 282 ; ii. 16, 28.
Banking, ii. 185-189.

320

Index,

Baiik-notes, ii, 22, 24, 34, 35, 152, 153, 15^,
157, 178. Private, ii. 159. Versus'6t2Xt
paper, ii. 191.
Bankruptcy, national, i. 87.
Barclay, i. 1S7; ii. 60.
Barney, Capt., ii. 14.
Bayard, i. 93.
Beall, S., ii. 166.
Beall, T., ii. 245.
Beaumarchais, i. 158, 160-221, see Hor-
tales.
Beckwith, ii. 245.
Begging, i. 293, 294; ii. 9, 12, 49, 91, 11 1.
Bell, Wm., ii. 270.
Berkeley, Dr., i. 119.
Biddle, Chas., i. 97, 120; ii. 135.
Biddle, Jas., ii. 270.
Biddle, N., ii. 173.
Big Tree, ii. 261.
Bill-kiting, i. 2S2-284; ii. 74, 95, 114, J15.
Bills of credit, i. 18, 20, 21, 22, 26, see
Currency and Paper money.
Bills of exchange, i. 43, 194, 304; ii. 31,
126, 159. Antedatea, ii. 8. For Beau
marchais, i. 178 ; ii. 6, 90. On Congress,
i. 295. On the Envoys, i. 173, 216, 247-
257, 280-282, 287, 295, 299, 300; ii. 3,
4, 8, IT, 13, 16, 22, 23, 29, 53, 55, 57,
82, 109. For the French army, i. 304 ;
ii. 41. Without funds, i. 249, 252, 296;
ii. 7. For Gen. Lee, i. 203-205. On
Philadelphia, ii. 152. Protested, ii. 90,
114, 115,117,184,277. On the "Pump,"
i. 216, 281. On Willink, ii. 113-117,
184. Paid twice, ii. 8.
Bingham, Wm., ii. 17.
Black pins, li. 136.
Bland, T., ii. 95, 97.
Blankets, i. 106, 127. Impressed, i. 144,
145.
Blockade, 1. 169, 170, 240.
Blodgett, ii. 246.
BoUvar, ii. 260.
Bond, J., ii. 303.
Bonvoulotr, i. 157.
Bounty, i. 204, 289.
Borrowing provisions of the French, i. 14S,
152; ii. 141. Usurious, ii. 114.
Boston, broadside, i. 73. Meetings at,
i. 74, 75. Distress at, i. 61, 75, 77, 84.
Braxton, C, i. 129 ; ii. 166-168.
Brest, il. 223.
Bristol, i. 3.
Broglie, Prince de, ii. 223.
Bronson, i. 31, 98.
Brown, J., i. 21T.
Brown, T., ii. 237.
Bryan, G., i. 147.
Bryan, S., ii. 215.
Budget, ii. 123.
Buenos Ayres, i. 250.

Bull, Col., i. 5r.
Bunker HiU, 1. 16.
Burnet, Col., ii. 82, 98.
Burr, A., ii. 293.
Butler of S. C, ii. 232.
Butler, J., ii. 257.
Cadiz, i. 250; ii. 4.
Cadwallader, J., i. 199, 230.
Caisse d'Escompte, ii. T12.
Callender, T., ii. 189, 229, 249, 272, 298.
Canada, expedition, i. 107, 194. Plan to
reduce, i. 184. Effect of conquest of,
i. 156.
Canandaigua, ii. 260, 261,
Canaseraga Creek, ii. 254.
Cannon, i. 206.
Capital, ii. 180, 191.
Capital of the United States, see Federal
City. __
Capitol, ii. 246, 249.
Carey, J., ii. 294.
Carey, M., ii. igo.
Carleton, Sir Guy, i. 107; ii. 156, 277.
Carlisle, Lord, i. 226,
Carmichael, i. 221.
Carrington, E., i. 152 j ii. 85, 201.
Carroll, C, ii. 231,
Casenove, ii. 283, 299.
Cash notes, ii. 152.
Castorland, ii. 264.
Cattle, i. 242, 243, 245.
Census, i. 6, 13,
"Centinel," ii. 211, 215-218, 272.
Certificates, i. 272, 273, 279, 286, 287, 304 ;
il. 20, see Loan-office.
Chalmers, G., i. 124.
Charg6, the Prussian, ii. 50.
Charles II., i. 15 j ii. 267.
Charleston, ii. 21, 22, see Refugees.
Chastellux, Marquis de, i. 78, 240, 303;
ii. 222, 274. His translator, i. 79, 231 j
ii. 150, 163, 223, 275.
Chaumont, Le Ray de, i. 87, 162, 183.
Chesapeake, i. 240.
Chevaux de frise, i. 145.
China, ii. 162, 277.
Choiseul, Marquis de, i. 156.
Church, J. B., ii. 258, 280, 285, 286, 288.
"Cibelle," the,i. 298.
Civil servants, i. 276.
Claiborne, Major, i. 150, 151, 155 ; ii. 84.
Clark, Lt.-Gov., i. 20.
Clark, D., ii. 52.
Classes, ii. 180.
Clay, H., ii. 198.
Clinton, G., i. 100 ; ii. 140.
Clinton, Sir H., i, 305.
Clipping, ii. 44, 45
Cloth, impressed, i. 147, 272.
Cockades of paper money, i. 95.

Index.

321

Coercion of workmen, i. 142.
Coinage, ii. 42-47.
College, the, at Providence, i. 46.
Colonial system, i. 104, 109, 254.
Colony, German, ii. 261. French, ii. 264.
Of Unitarians, ii. 264.
Commerce, freedom of, ii. 87. Protection
of, ii. 87. Regulation of, ii. 64, 193, 194,
201. State of, ii. 87. As engine, 1. 103-
132, 159, 198, 200, 201 ; ii. 72. For sup
ply, i. 103-132, 159, 161, 162, 167, 1S9,
190, 192, 193, 224,277. &« Trade.
Commercial relations, i. 265. Transactions,
i. 103, 131; ii. 212, 214-218.
Commissioners, see Envoys.
Committees,!. 122.
Committee tyranny, i. 230.
Commonwealth, i, 12.
Commutation of supplies, i. 239.
Compact, the social, i. 88.
Compensation,!. 117-119.
Concord, i. 107.
Confederation, the, i. 93 ; ii. 64, 194,
Confiscation, i. 8, 28. >
Congress, of 1774, i. 15. Continental, i.
25, 28, 41, 93, 198, 199, 202, 210, 2'58,
260 i ii. 95 ; journal of the, i. 223 ; fac
tions in, i. 71, 175, 177, 210, 218, 220,
248, 258 ; ii, 99, The Stamp Act, 14,
108.
Connecticut, i. 18, 19, 29, 31, 39, 40, 127.
Consideration, i. 256.
Constable, Wm., ii. 232, 258.
Constitution, State, ii. 182. The, of 1787,
ii, 204, 215, 216. The English, 1. 8.
"Conti," i. 43.
Contractors,!. 143; ii, 63,153-155.
Contracts, i. 237, 288; ii. 61-63, 83, 153,
174, 210, 213. 
Convention, Commercial, 1. 93; u. 192-
201. Constitutional, i. 93; ii. 192, 200,
203, 249. Price, i, 25, 26, 52-61, 76, 84,
93, 134, 137. At Boston, i. 92. At
Concord, i. 74, 75. At East Greenwich,
i. 75. At Harttord, i. 53, 76, 84; ii.
64. At New Haven, i. 65, 66, 76. At
Philadelphia, i. 84, 137. At Provi
dence, i. 55. At Springfield, i. 60. At
Yorktown, i. 59, 129.
Convoy, i. 240 ; ii. 87.
Conyngham,!. 177.
Cooper, Dr., i, 119, 307.
Co-operation, !. 260, 307.
Cornell, E., ii. 62.
Cornering, i. 231.
Cornwallis, Lord, i. 305, 306, 307.
Correspondence interrupted, i. 165, 169,
202, 203.
Corunna, ii. 14.
Cosby, Gov., !. 19.
Counterfeiting, i. 68, 69, 98 ; ii. 154, 156.
VOL. II. — 21

Coxe, Tench, ii. 200, 241.
Cranch, ii. 2S1, 284, 287.
Credit, i. 172, 199, 248, 249, 252, 268, 269,
272, 278, 284, 285, 288 ; ii. 5, 6, 7, 22,
24, 26, z7> 3ij 48, 5». 62, 65, 96, 97, 98,
113, 117, 125, 134, 140, 153, 157, 183,
252, 273, 298-
" Crisis," the, i. 30.
Crisis, commercial, ii. 277, 278,281.
Croghan, ii. 264.
Crooked Lake, ii. 259.
Cruisers, i. 167 ; ii. 274.
Currency, of iUaryland, i. 2, 43. Of Ma'!-
sachusetts, i. 45 ; ii. 256. Of New
York, i. 47. Of Pennsylvania, i. 237,
271, 282, 283 ; ii. 24 ; Council to rate,
i. 236. Of Rhode Island, i. 46 ; rate in
silver, i. 45, 46, Of the Revolution, ii,
39. Of the States, i. 45, Continental,
i. 26, 28, 31, 35, 37, 38-99, 173, 189, 194,
211, 239, 242, 269, 273, 275 i 11. 21, 163,
164, 166, 272 ; amount of, i, 97 ; derision
of, 95 ; evils of, 78, 80 ; funded, 98.
Currency doctrines, i. 39, 41-44, 70, 79, 80,
81-83, 88; ii. 24, 26, 188, see Paper-
money, Bills of credit.
Currency and taxes, i. 14, 88, 97.
Currency legislation, i. 236.
Cushing, Thos., i. 65.
Custis, G., ii. 268, 291.
Cutler, Manasseh, ii. 176, 227.
Dallas, A. J., ii. 164.
Davies, Col.,i. 149, 151, 152,241, 243, 244;
ii. 79.
Dawson, H., i. 20.
Deane, Silas, i. 43, 159-166, 170-186, 193,
207, 212, 213, 217-224, 232-234, 237,
247; ii. 21, 53. 99i 163,211,219.
Deane, Simeon, i. 129, 215.
Debt, public, i. 44, 47, 234, 268, 273, 275,
276, 279 ; ii. 20, 48, 121, 123. Floating,
i. 263 ; ii. 128, 129.
Debts, i. 118.
Decimals, ii. 123.
Defencelessness, i. 106, 107.
De Grasse, i, 303.
DeLancey, Gov,, i, 20.
DeLancey, S., i. 93.
Delap, i. 160.
" Delaware," the, i. 207.
Delay, i. 261.
De Noailles, ii. 263.
Denunciations, i. 143.
Depravity, i. 143.
Depreciation, i. 30, 42, 43, 47, 48, 62, 65-
96, 180, 200, 203, 228, 231 ; ii. 25, 106,
163-168, 218-220. Scale of, i. 91, 98,
238 ; ii. 167, 168. And taxation, i. 79-
82, 83, 88, 95 ; ii. 76.
Deserters, i. 191.

322

Index.

Despatch vessels, i. 176, 193, 199.
Despatches, the stolen, i. 176, 223.
Despondency, i. 258, 259.
D'Estaing, i. 184.
De Veyrac, ii, 38.
Dexter, S., i. 5.
Diary of a French officer, i. 306. Of De
Broglie, ii. 223. Of Maclay, ii, 230. Of
G. Morris, ii. 300. Of Washington, ii.
203.
Dickinson, J ., i. 194; ii. 72,200.
Dickinson, P., i. 62 ; ii. 237, 246.
Dictation, ii. 69.
Dictator, i. 297.
Dinner invitation, ii. 222.
Disaffection, i, 203, 228.
Discord, i, no, 113, 115, 116, 125, 210,
see Union,
Discount, ii. 32, 35, 114, 158, 164.
Distress, i. 153, 275, 293, 295 ; ii. 135-
148; 179, 180, iSi, 195.
Dodging, ii. 259.
Dollar, ii. 36-39, 42, 46, 63.
Dolly, J., ii. 17.
Doniol, i. 177, 185.
Dorchester, Lord, see Carleton.
Drafted men, i. 207.
Drayton, W. H,, i, 115, 123.
Duane, J., i. 121.
DuBois, A., ii. 44.
Dublin, ii. 278.
Dubourg, Dr., i. 157, 158, 159, 161, 177,
Du Coudray, i. 159, 174.
Dudley, B., ii, 3,43, 45, 157.
Duer, W., ii. 278.
Dumas, i. 105, 219, 235.
Duponceau, i. 210.
Duportail, i. 209.
Economy, ii. 145.
Ekfield, J,, ii.43.
Eliot, J., i. 61, 84.
Ellery, W., i, 51.
Elliott, A., i. 226.
Elmer, Dr., ii. 232.
Ely, J. ,11.287.
Embargo, 1. 92, 132-140, 231, 237, 271,
272 ; n.33, 140, 163, 275.
England, i. 249, 259. Kingof, j^^ George
I III. Sincerity of, doubted, i. 309 ; ii.
102.
Engrossing, i. 26, 50, 53, 54, 56-63, 70,
73-75> 77, 134, 228, 231.
Enlistments, short, i, 203. Difficulty of,
ii, 135.
Envoys m France, i. 30, 37, 67, 164, 167-
171, 173, 176, 185, 186,202, Quarrels
of the, i. 180-186. Salary of the, i. 187.
Paid by France, i. 254.
Erie, ii. 255.
Erie Canal, ii. 268.

Escheat, ii. 304.
Exchange, foreign, i. 301, 304; ii. 28, 36,
ri3i ^73' Loss on, i. 304; ii. 16, 41.
Pounds sterling in, ii. 47.
Exchequer bills, i. 42, 47.
Excise, i. 13, 19, 21, 23 ; ii. 174, 233.
Executive, single, i. 202, 203,260, 261 ; ii.
213. ' Independence of the, i. 267.
Expedients, ii. 31.
Expenses of the Colonies, i. 25. Of the
United States, i. 31.
Exports,!. 109, 116.
Extortion, i. 143.
Facilities, ii. 170, 173.
Factory materials impressed, i. ia6.
Fairmount Park, ii. 227.
" Farmer," the, i. 225.
Farmers-general, i. 164, 166, 170 ; ii, 168-
Farmers' Loan and Trust Co., 11, 262.
Fauches, J., ii'. 269.
Fauchet, J,, ii. 165, 270.
Favouritism, ii. 74.
Federal City, ii, 121, 175, 228, 230, 235-
250, 2S1, 284.
Finance, public, i. 5 ; and politics, ii. 79.
Finances of the Revolution, i. 5, 30, 67,
184, 260, 263. State of the, ii. 68, 195.
Findley, W., ii. 191.
Fines, i. 191. Militia, i. 23, 26, 31, 33.
Firewood impressed, i. 145.
Fitzpatrick, i. 126.
Fitzsimmons, T., ii. 166, 251, 252, 262,
289, 292, 293, 294, 296.
" Flammand," the, i. 173.
Flax seed, i. 128,
Fleet, the French, i. 90, i56, 245, 300,
The plate, i. 249.
Florence, i. 185.
Florida, i. 250, 310.
Florida Bianca, i. 249, 254 ; ii. 10.
Flour, i. 229, 230, 239, 241, 242, 244, 278,
304, 308 ; ii. 3, 16, 163, 274.
Forced circulation, i. 45-99, 236, 237, 269 j
repealed, 238, 269.
Forced sale, i, 139.
Fort Wilson, i. 232.
Fortifications, i. 194.
Fox, Ebenezer, ii. 135.
Fox, Edward, ii. 247.
France, i, 37. Aid from, unacknowledged,
i, 170, 174, 175, 198, 222 ; ii. 94 ; acknowl
edged, i. 200, 248, 275, 288, 291, 293,
294, 299; refused, ii. 49, 56, 89. Al
liance with, i. 27, 87, 90, 105, 156, 164,
178, 193, 249. Alliance, who benefici
ary of the, i. 91, 297. Complaints by,
i. 298, Contract to repay, ii, 49, 56, 57,
91, Dependence on, i. 252, 258, 259,
306 ; ii, 6, 9, 51, 57, 58, 90, 127, see Beg-

Index.

l^l

ging. Distress in, i. 159. Eager for
peace, i. 260. Expenditures in, ii. 215,
Finances of, i. 27, 296; ii. 111, 134.
King of, see Louis XVI. Loans by, i.
158, 167,170, 171, 178, 291-296, 297;
ii. 6, 50, 56, 59, gi, g2, 100, 101, 103,
111. Loan guaranteed by, ii. 8, 57,
130.
Francis, Tench, i. 43.
Francey, i. 178.
/^Franklin, B., i, 4, 27, 43, 67, 80, 8g, 105,
I i56-25g, -292-300; ii, 13, 48-122, 136,
180, 226, 302. Daughter of, ii. 136.
Izard and, i. 184. A. Lee and, i, 185.
Morris and, i. 213. Recall of, i. 186, 187.
Sole minister, i. 184.
Franklin, W. T., ii. 256.
Frauds, i. 130 ; ii. 108.
Frederick II,, ii. 50.
" Freeman's Journal," ii. 96.
Frigates, i, 199, 207. For Spain, i. 255.
Fund, ii. 24.
Gadsden, i. 115, 223.
Gage, Gen., 106, 107.
Gain, thirst for, ii. 137.
Gallatin, A., ii. 77.
Galloway, J., ii. 144, 146, 228.
Gates, Gen., i. 96, 194, 209.
Gaunt, J. M,, ii. 245.
Gautier, A., i. 49.
Genesee Land Co., ii. 253.
Genesee River, ii, 244, 256.
Genesee Trust, ii. 293.
Geneva, N. Y., ii. 255.
Geneva, Switzerland, ii. 221.
Genoa, i. 252.
Geography, ii. igg,
George IIL, i. g4, 133, 233, 258 ; ii. 134,
Georgetown, ii. 235, 242.
Georgia, i, 120.
Gerard de Rayneval, i. 8, 162, i6g, 221 ;
ii. 144.
Germain, Lord G., 11. 155.
Germantown, i. 232.
Gibeonite office, ii. 48.
Gibraltar, i. 250, 255 ; ii. 2.
Gillon, Com,, i. 2g8, 300 ; ii. 9, 12-15, 88.
Gillon, Mrs,, ii, 15.
Glover, Col,, ii. 139.
Gold, ii. 142.
Goodhugh, ii. 238.
Goodrich, C, ii. 283.
Gorham, N. , ii. 253-260, 26S.
Gouge, Wm., ii, 34.
Government, the Federal, i. i6g, 258.
To be grand, ii. 123.
Grain sold, i. 243.
Grand, i. 219, 281; ii. 14, 40,90, 109-115,
see Bankers.
Graydon, A., i. 232 ; ii. 136.

Grayson, Col., ii. 96, 138.
Greene, Gen., i. 43, 67 ; ii. 66, 81, 83, 84,
86, 147, 152.
Greenleaf, J., ii. 246-249, 252, 264, 281,
283, 284, 295, 304.
Greenway, R., i. 2.
Griffin, ii, 173,
Grimaldi, i. 158.
Gunpowder, i. 6, 107, 122, 125-128.
Gunsmiths, i. 142.
Half Johannes, i. 199.
Half-pay, ii. 69.
Halifax, i. 184.
Hall, ii. 83.
Hamilton, A,, i. 29, 42, 83, 93, gg, 259,
260, 261, 274, 289 ; ii. 21, 24, 25, 38,66-
7g, 96, 98, 146, 148, 154-156, 180, 1S5,
193, 200, 209, 231, 242, 244, 258, 280,
283-286, 288, 302.
Hare, Col., i. 51.
Harper, R. G., ii. 265.
Harriott, T., i. 49.
Harrisburg, ii. 231, 238.
Harrison, Geo., ii. 2g5.
Harrison, Gov,, ii. 83, 140.
Harrison, Jr., & Co., ii. 163.
Havana, i. 254; ii. 2-5, 274.
Hazard, ii. 232.
Head of Elk, i. 302-305.
Hendricks, Col., i. 152, 241.
Henry MSS,, ii. 252.
K'iyster, Gen,, ii, 232.
Higby, ii. 281, 2g3.
Higginson, Sam., ii. 121.
" Hills," the, ii. 227, 270, 285-288.
Hodge, i. 183.
Holker, i. 229, 230, 231, 304 ; ii. 42, 163,
165, 168, 278.
Holland Company, ii. 260, 261-263, 293,
300.
Holland, loans in, i. 185, 248-252, 291-
293, 297, 30°; ii- 8, 12, 49, 57, 58, 66, 90,
in-114, 117. Purchases in, i. 298, J««
Gillon. Trade with, i. 124,125, 129.
Hollingsworth, i. 2 ; ii. 293.
Hoops, A., ii. 254.
Hopkins, Capt,, i. 206.
Hopkins, S., i. 60.
Hopkinson, F., i. 236.
Horse teams, i. 141.
Horses imported, i. 122. Impressed, i. 148,
151, 152, Costof, i. 149.
Hortaler & Co., i. 158, 163, 178, 198.
Hospital service, i. 150, 244, 277.
Hospital supplies impressed, i. 150.
Wasted, i. 244.
Howe, Gen., i. 194, 203, 211.
Howe, Lord, i. 194.
Howell, ii. 67, 121.
Hudson River, i. 133.

324

Index.

Hughes, J., i. 4.
Hughes of N. C, ii. 120.
Hynson, i. 176.
Illinois and Wabash Co., ii. 251.
Impost, the, i. 274, 285 ; ii.48, 54, 57,97,
121, 192, 196, 198.
Impressment, i. 141-155, 242, 244, 287,
289; ii. 62, 85, 13S. Abuse of, i. 146,
147. Effects of, i. 154, Evils of, i. 148,
I4g. Exemption from, i. 145, 147.
Indents, ii, 123.
Independence, i. 115, 156, 164, 172, igi-
197, 210, 211, 219,254, 260, 267, 285,
307; ii. 112,117, 136.
" Independent Gazetteer," ii. 217.
Indian title, ii, 260.
Indian treaty, ii, 260, 261.
Indians, ii. 120, 254, 262.
Inexperience,!. 274; ii. 148.
Inglis, ii. 162.
Ink, invisible, i, 163.
Instructions, i. igi.
Interdependence of the colonies, i. 133,
, 135. 137,. 138- . ,
Interest, bills for, 1. 167, 173, 247, see
Bills on the Envoys. Exports for, i.
252,
Intrigues, French, i. 156, 164.
Invoice, i. 171, 172; ii. 109.
Ireland, i. 3.
Iron, i, 106.
Irregularities, i. 242, 244.
Island money, i, 94, g7.
Izard, R,, i. 123, 168, 181-187, 213 ; ii.
232.
Jackson, Major, i. 298, 300 ; ii. 12.
Jamaica, ii, i.
James, R., ii. 292.
Jay, J., i. 21, 164, 166, 171, 227, 233, 250,
254-256; ii. 2, 7, 9, II, 48, III, 112,
222.
Jay, Mrs., i. 259, 262 ; ii. 221, 222.
Jealousy, colonial and State, i. 117, 123,
133 ; ii. 85, 196, see Independence.
Jefferson, T., i, 14, 78, 95, 164, 258, 293 ;
ii. 118, 140, 171, 225, 231, 242,259, 264.
Johnson of Conn,, i. 119 ; ii. 240.
'Johnson, W., i. 305; ii. 81-83.
Johnston, H. T., i. 215.
Jones, Paul, ii. 226-227.
Juniata, ii. 239.
*' Junius," ii. 96.
Jurisdiction over water, ii. 193, 197, 201,
202.
Kalb, Gen., !. 94, 156, 174 ; ii. 145.
" King Cong." i, 210.
Kingston, N. Y., ii. 235.
Knox, Gen., ii. 174.

Labour, reward of, ii. 71, 180.
Labourers, scarcity of, i. 83; ii. 137, 144.
Lace, ii. 136.
Lafayette, Gen., i. 151, 152 ; ii. 302.
Lafayette, Marchioness, etc., ii. 23.
" Lafayette," the, i. 298, 300 ; ii. 15, 61,
94.
" La Gloire," ii, 223.
Lancaster, Penn,, i, 211.
Land, i. 80,^218; ii. 121, 190, 233, 251-
270. Value of, ii. 265-268.
Landais, Capt., ii. 226.
Langdon, ii. 232,
Laurens, H., i. 185, 222, 225, 247, 250-
253, 294. 297.
Laurens, J., 1. 130, 171, 186, 259, 294, 295,
297, 298-301, 308 ; u. 2, 5, 14, 28, 82,
88.
Law, Mr., ii. 246, 247, 289.
Lawful money, ii, 37.
Lawlessness, ii. 182.
Lawrence, Mrs. J., i. 50.
Lawyers, ii. 180.
Lead, i. 106.
Leaven of Deane and Lee, ii. gg.
Le Couteulx, i. 281 ; ii. 114, 115, i6g, see
Bankers.
Lee, A., i. i58-i6g, 174, 175, 177, 180, 181,
183, 185-187, 198, 218, 219, 222, 223,
232, 292 ; ii. 53, 96, g7, log, 124, 157,
2og, 226.
Lee, Chas., i. 193, 194, 197, ig8, igg, 203,
204, 25c).
Lee, H.,ii. 2g5.
Lee, R. H., j. 15, 52, 62, 78, 7g, 240 ; ii.
ig6, 204.
Lee, W., i. 168, 174, 181, 182, 213, 214,
252, 253, 292 ; ii. 122, 271, 272.
Legal tender, see Forced circulation.
Leipsic, ii. 221.
L'Enfant, ii. 228, 229.
Le Normand, ii. 169.
Letter in dictionary, i. 219.
Letters, the Hutciiinson, i. 109. The in
tercepted, i. 233.
Lexington, i. 106.
Liancourt, Due de, ii. 176, 246, 257, 263,
278.
Liberty, i. 88, 144 ; ii. 121. Civil, i. 8.
Nightmare of, i. 37.
License to export, ii. 125, 126, 128. At
Yorktown, i. 309 ; ii. 52, 85, 86, 128.
To transport, i. 135.
"L'Indien," i. 298; ii. 226.
List, the grand, i. 13, 18.
Liverpool, i. i, 2, 3.
Livingston, Catherine, ii. 221.
Livingston, R., i. 125, 234, 306.
Livingston, Wm., i. 148.
Livingston, Mrs,, ii. 180.
Livingston, Walter, ii. 124.

Index.

325

Loan, foreign, i. 83, 84, 164, 168, i6g, 172,
'73i 253, 270, 281, 288 ; ii. ig5. From
the French military chest, i. 303, 307,
308. Public, i. 216 ; ii. 130. See Holland.
Loan office, i, 7, 86; ii. 119. Certificates,
i.68, 81, 83, 91, 102, 288'; ii, 53, 54, 96,
105, 231, 232.
Lollar, ii. 190.
London, ii. 278.
" Long Bobs," ii. 151.
Losses, i. 130.
Lossing, B.,ii. 22g, 278, 287.
Lottery,!. 100-102; ii. 88, in, 114, 246.
Louis XVI,, i. 15S, 231, 248, 251, 2g3,
295, 298 ; ii, 8, 35, 50, 165, 225-227.
Louisiana, ii, 251.
Lovell, J., i. 66.
Lowell, ii. 224.
" Lucius," ii. g6.
Luxembourg, Prince of, i. 298-
Luxury, ii. 136. War on, i. 112, 129.
Maclay, W., ii. 209, 211, 230-234, 237,
,2351-250, 255, 259.
Madison, J., 1. 93 ; ii. 52, 65, g5, 96, 240,
277.
Madrid, i. 187, 250.
Magic, i. 262, 300, 305 ; ii. 27.
" Magicienne," the, li. 28, 31.
Magnanimity, ii. 102.
" Magnifique," the, il, 88, 226.
Mail, i. 28g, 290.
Maine, distress in, i. 122, 133.
Malversation, i. 242, 243.
Manheim, i. 2og, 211, 213, 220.
Manning, Miss, i. 2g4.
Marbois, i. 186; ii. 112, 225.
Marshall, C, i. 29, 69, 148; ii, 138.
Marshall, John, i. 308.
Marshall, J. M.,ii. 2g6, 2g7.
Maryland, i. 43, 23g. Loan by, ii. 248,
249. _
Mason, 1. 258.
Massachusetts, i. 5, 16, 31. Debt and
taxes in, ii. 76. Land cession, ii. 253.
The plan of revenue, ii. 6g.
Massachusetts Historical Society, ii. 46.
Matlack, Col., i. 51.
May, W., ii. 156.
Mazzei, i. 293.
M'Clenalhan, B.,ii.22, 287.
McDougal, i. 21.
McKean, Judge, ii. 287.
Medicine, imported, i. 128, 135, 189.
Merchant, pretended, i. 158, 159-162, 174.
Merchants' Magazine, i. 98.
" Mercure," the, i. 174.
Mexico, Gulf of, i. 250 ; ii. i, 2.
Mifflin, i. 224.
Miles, Col., i. 303.
Military service, ii. 148.

Militia, i. 232, 306.
Milligan, ii. 205.
Minott, ii. 244.
Mint, ii. 37, 43-47, 157.
Mississippi, the, 1,250, 255, 256; ii. g, 11,
Mob, i. 121, 122, 230, 231; ii.2oi.
Mock funeral, i. g5.
Money, i. 14. Hard, i. 98, 204, 277, 278,
301, 303. Power of hard, h. 142, 143.
Money market, ii. 158, 276.
Monopoly, ii. 171, see Engrossing.
Montandoin, i. 158.
Montgomery, Gen,, ii. 120.
Moody, Capt,, i, 26.
Morris, Mr., i. 188.
Morris, Chas., ii. 297,
Morris, Esther, ii. 296.
Morris, Gouvemeur, i. 22, 40, 233, 270;
ii. 19, 24, 42, 172, 175, 185, 1S6, 189,
204, 257, 277, 291, 292, 295, 299, 300.
Morris, Henry, ii. 302.
Morris, Lewis,!. 208.
Morris, Maria, ii. 296.
Morris, Robert (1st), i. 1-3.
Morris, Robert (2d), supports the cur
rency, i. 86. Unpopular in the South,
i. 97; ii. 52, 60, 81-87, 108. Acts for
the continent, !. 169, igg, 200. Whether
a whig, !. 188 ; ii. 273. Charged with
toryism,!, 212. Banker, i. ig3, ig4, ig7,
204, 205, 206, 216. His opportunities
of gain, i. ig3, ig4, 205, 206, 217, 227,
304; ii. 18, 150, 167, 275, 276. His
views on independence, !, 194-197. Ad
vances by, i. 204, 308. Considered rich,
i. 208, 264. False position of, i. 205,
230, 231, 271, 282. Is offered the presi
dency, i. 206. Has leave of absence, i.
2og, 211, 223; ii. 162. And Deane, i.
223; ii. 2ig. Merchant and statesman,
i. 205. 230, 231. His privateers, i. 236;
ii. 275. Superintendent of Finance, i.
261. His motives for accepting the of
fice, i. 263, 264, 268, 269. His salary,
i. 261. His diary, i. 263, 269, 301; ii.
55, g6, 157, 466, Conditions of accept
ing, !. 264-267 ; ii. 8. His commercial re
lations, i. 266, 267, 268; ii. 30. His
"integrity," i. 268; ii. 95, 100, 116,
288. His energy and enterprise, i. 270.
His business methods, i, 270; ii, 252,
280. His economies, i. 270, 275, 289;
ii. 18, 107. Agent of Pennsylvania, i.
270, 271, 282, 283. Reorganizes the
treasury, i. 270. His plans, i. 275 ; ii. 65.
His heterogeneous tasks, i. 276, 278.
Agent of the Marine, i. 277 ; ii, 87.
His resources, i. 279, 282 ; ii. 82. His
appeals to the States, i, 2S4, 287, 289;
ii. 50, 58, 65, 75, 105. Calls for infor
mation, i. 285, 2S9. Arouses enmity,

326

Index.

i. 235, 28g ; ii, 52, 105, 120. Fruitless-
nessof his efforts, i. 28g ; ii. 52. Qualifi
cations for Financier, i. 301. Enter
tains Washington, i. 303 ; ii. 203. And
Washington, ii, 291. His art of multi
plying coin, i. 305 ; ii. 26, 27, see
Magic. Negotiates bills for the French,
i. 304 i ii. 41. Issues notes for cloth
ing, i. 291; ii, 49, 55, 89; to pay the
army, etc, i. 308 ; ii. 75, 83, 100, 102-
log, 113, 117, 120, 128, I4g-i6i, 170,
173, 178, 229, 275, 282-284, 290, 295,
298. His drafts, ii, 62, 153, 155,281,
Is called to account, ii. 42, 55, 105, 106,
116, His doctrine of iDanking, ii. 26-
28. Proposes a coinage, ii. 42. Pres
tige of his name, ii. 53. And A. Lee, ii.
53i 541.65. Is expected to default, ii.
55. His administration-raises credit, ii.
56. Influence of his character, ii. 62,
153. His influence, i. 208 ; ii, 19,
121, 184, 231, His plans for revenue,
ii. 69, 70. His views on the lot
tery, ii. 88. His overdrafts, ii, 89, in,
112-116, 1S4. Describes his situation,
Jan, 1781, ii. go. His resignation, ii.
95,96-98, 103, no. Condttions of go
ing on, ii. 100, 101. His motives for
going on, ii. 102. Goes to Princeton,
ii. 104. His Report, ii. 106. He is
traduced, ii. 108, 215-218. His admin
istration, ii. 6j, g4, 117, 125-132. Sar
casm on it, ii, 112, Is indifferent to
France, ii, 118. His views on the
Union, ii. 120, 203, 232. His quarterly
reports, ii. 125. His commercial opera
tions, ii. 127. How he accomplished his
task, ii. 130-132. His Account of his
Property, ii. 162, 165, 166, 177, 218,
227, 22g, 252, 257, 261, 270, 278-280,
283, 293, 298, 299. He buys an estate
in England, ii. 167. His tobacco con
tract, li. 168-173. An army contractor,
ii. 174. Offers to farm the excise, ii.
174. His speculations in France, ii.
175. His aristocratic notions, ii. 204,
231. Is offered the Secretaryship ofthe
treasury, ii. 204. Is indebted to the
United States, ii. 218-220. Sends his
sons to Europe, ii, 221. His quarrel
with Marbois, ii, 225. His hospital
ity, ii. 224, 226. On Franklin's death,
ii, 226, Is caricatured, ii, 233. Can
didate for governor, ii. 233. His re
trospect, ii. 218. He "must be a
man or a mouse," ii. 269. His wealth,
ii, 276. His account books, ii. 279.
His watch, ii. 297. Was his coun
try ungrateful, ii. 298. His death and
burial-place, ii. 300. His bankrupt
cy, ii. 302. His will, ii. 303. His

estate, ii. 304. Personal description
of, ii. 222, 291. His residences, ii.
223, 227, 229, 300. Criticisms on, 1.
194, 205, 208, 224, 262, 263 ; ii. 19-20,
52, 63, g7, 116, 121, 122, 123, 222-224,
242, 257, 2g2, 298, 301. His oppo
nents, 1. 215, 227, 235, 289; ii.g8, IOI,
121, 131, 191. Charges against, i. 3og ;
ii, 52, 60,85, g6, log, no, i2i,2og-2n,
215, 216, 218. His votes, i, 216, 235-
237; ii. 189, 190, 230. See Bill-kiting,
Appreciation, Accounts.
Morris, Mrs,, i. 1. 259, 262 ; ii. 166, 221,
224, 225, 234, 271, 2gi, 2^2, 2g6, 300,
302. On independence, i, ig4, 206.
Her shoes, ii. 225.
Morris, Robert (3d), ii. 221, 222, 293,
297.
Morris, Thomas (ist), i. 207, 212-215.
His accounts, i, 214 ; ii, 213.
Monis, Thomas (2d), ii. 221, 260, 261,
286, 288.
Morris, William, ii. 176, 290,291.
Morris, Deane, & Co., ii. 219.
Morris's Folly, ii. 22S.
Morris's Reserve, ii. 260.
Morrisville, ii, 238.
Obligations, neglect of, i. 172.
Office, refusing, i. 28.
Officers, pay of, i. 96, igg. Memorial of,
i. 242. Sent over, i. 163, 170, 175,
217.
Ogden, S,, ii. 257, 258.
Ogden, T., ii. 299.
" Olimpe," the, i. 298.
One man power, i. 262.
Orders, neglect of, i. 251.
Orne, A,, i, 75.
Osgood, S,, ii. 121, 124, 196, 209, 236.
Ostracism, i. 221.
Otis, H.G., i. 224.
Outlook, the, in 1781, i, 263,
Outrages, i, 26; ii, 202.
Overdraft, ii. 17, 89, 111-114, 128.
Ox teams, i. 141.
Oxford, Md,, i. i.
Packet, the Penn., i. 79, 95, gg, 138,
222, 229, 236 ; ii. 26, 166.
Paine, T., i, 30, 34, 47, 93, 203, 206, 220,
222-225, 228, 233, 234, 295, 306 ; ii. 21,
189.
Papers, Laurens's, i. 253.
Paper-money, i. 14 ; ii. 182, see Currency,
Bills of Credit.
Paper-mongering, i. 282, 283 ; ii. 64,
Par, ii, 37-39, 46.
Paris,!. 187.
Parliament, !. 25.
Party, ii. 35, 55, 137, 164, 205, see Con-

Index.

327

gress. The Conservative, ii. 182, 183.
The Popular, ii. 183.
PaschaU, R,, ii, 303.
Passy, i. 182, 219.
Patriotism, ii. 137, 138.
Patterson, J., ii. 176.
Peace commission (1778), i. 215; ii. 21 ;
(1782), ii. no, 112.
Peace expected, i. 256, 258, 259 ; ii. 57,
Negotiations, ii. 11. Propositions, i.
260 ; ii. 178.
Peddling, i, 77.
Penalties, i. 28.
Penet, i, 157, 158, 175, 293; ii. 61.
Pennell, J., ii, 212,
Penn, Gov., ii. 145, 223.
Penn, Wm., ii. 267.
Pennsylvania, i. 22, 23, 32, 33, 36. As
sembly of, i. 237, 238. Constitution of
1776, i, igi. Invasion of,i, iqi. Law
against Morris, ii. 164. Lawful money
of, ii. 164. Morris partial to, i. 271 ; ii.
52. Parties in, i. 91, 197, 217, 230 ; ii.
23, 164, 205,. 215, 223. And the pro
prietors, ii. 267. Revolution in, i. igo,
192. Taxes in, ii. 76.
Pennsylvania Company for the Insurance
of Lives, ii. 304.
Pennsylvania Historical Society, ii. 279.
Pennsylvania Property Company, ii. ^76,
227, 270.
People, the, always right, i. 123. Alien
ated, i. 154, 239, 258.
Peters, R., i. 213, 301 ; ii. 96, 271.
Petersburg, i. 240. ¦
Petersen vs. Willing, ii. 283.
Phelps, O., ii. 61, 253-260, 264, 266, 268.
Philadelphia, i. 187, 188. . Abandoned, i,
igg, 200. The Artillery Company of, i.
73, The Committee of- (1779), i. 72,
Character of the people of, ii. 245.
Ladies of, ii. 23. Meeting at, i. 227,
228, 230, 231. Occupation of, i. 167,
209. Panic at, i. 305. Population of,
ii, 144. Prison at, ii. 229, 288-2g2,
Rental of, i. 34.
Pickering, T,,i. 78, 148; ii. 84, 136, 140,
151, 153, 286.
Pillage, 1. 148.
Pilots, i, 184.
Plate, amount of, i, gg,
Pleasants, Shore, & Co., ii. 164.
Pliarne, i. 157.
Pontleroy, i. 156.
Poor, class of, ii. 78.
Popularity, i. 274.
Population of the colonies, ii. 146, Of
the Mass. cession, ii. 259.
Portraits, ii, 225.
Portugal, i, 168; ii. 2.
Postage, inability to pay, i. 305 ; ii. 292.

Post-Office, i. igg; ii, 40, 63.
Powers, delegated, i. 261.
Pownall, T,, i. 99 ; ii. 139,
Pre-emption line, ii. 253, 255, 256.
Price, i. 194.
Price, Dr., i. 260.
Prices, i. 137; ii. 140.
Price tariff, i. 115, 137, 228, 231, 232, see
Conventions.
Priestley, ii. 264.
Princeton, i, 200.
Princeton College, ii. 17.
Prisoners, Burgoyne, ii. 144.
Privateering, ii. 135-139. Embargo on, i.
„ ?3^' '35- .. „
Prize cases, n, 180.
Prize decisions, i. 236.
Proclamation, the King's, i. 114.
Proclamation money, ii, -t,-].
Profits of colonial trade, 1. 83, 104.
Profligacy, i. 208.
Promises, i. 173, 231, 278.
Property, rights of, i, 231.
Prosperity, ii. 256, 274.
Protest, ii. 164.
Providence, i. 17.
" Providence," the, i. 144.
Provisions, t. 148, 154, 229, 241, 271; ii,
140, 141. Magazines of, i. 280,
Prune Street, see Philadelphia, prison at.
Pryor, Major, i. 151.
Publicity, i. 289,
Pultney, Sir Wm., ii. 256-259.
Pultney Association, ii. 267.
Punctuality, ii. 32.
Putnam, Gen., i. 51, 52, 200.
Quakers, i. 49, 79, 200, 278 ; ii. 259.
Quebec,!, 1S4.
Quotas, i. 40.
" Ranger," the, ii, 226.
Ratio of silver to gold, ii, 40, 47.
Rations, ii. 33, 128.
Receipt, see Invoice.
Receipts and expenditures, 1781, ii, 16.
Recklessness, i. 106.
Reconciliation, i. 194, 195, 212, 215, 233.
Redemption of paper, i. 83,
Reed, Jos,, i. 32, 33, 70, 71, 148, 215, 220,
274; ii. 18, 21, 23, 24, 63, g7, 137, 140,
147, 184.
Reese, J., ii. 25g,
Refugees, i, 278, 308 ; ii. 87, 263.
Remittances, i. 158-164, 167, 173, 178,
203, 247 ; ii. 6, II.
Replevin, i. 147.
Report of 1785, i. 283 ; ii. 4, 125, 206, 208.
Report of i7go, ii. 125, 126, 149, 211.
Report, Hamilton's Mint, ii. 38, 47.
Republic, the French, ii, 165.

328

Index.

Republicanism, i. 262 ; ii. 231.
Requisitions, i. g, 28, 32, 33, 37, 239, 272,
273, 275, 279, 280, 285; ii. 31, 52, 55,
57, 67, 104, 117, 194, 196. Excessive,
li, 67, 123.
Rescue from impressment, i, 146.
Resolutions, mock, i. in.
Responsibility, i, 261, 2b6 ; ii. 74,
Retaliation, i. 137.
Revenue, from America, i. 15. Of New
York, i, 2c Of Pennsylvania, i. 23.
Plan of, ii.''6g, 70. Required by the
United States, ii. 66.
Review, the American, i. 2.
Revolution, crisis of the, i. 200. Enthu
siasm for the, i. 211.
Rhetoric, ii, 137, igo.
Rhode Island," i. 16, 17, 36, 66. And the
impost, ii. 65, 6g, 97, 193, 194.
Rice exception, the, i. 113, 115.
Ridley, M,, ii. 221.
Riot, i. 122, 127, 232; ii. 201, 261.
Rivers, i. 141.
Kivington, i, 233.
Robardeau, i, 227.
" Robert the Cofferer," ii, 215.
Robertson, ii, 44.
Robinson and Price, i. 48.
Rochambeau, Count de, 1. 99, 303, 305.
Ross, D., ii. 60, 78.
Ross, G., ii. 220.
Ross, J,, i. 183; ii. 17, 166, 218, 219,292,
Ross, Pleasants, & Co., u. 171.
Rubsamen, ii, 156.
Ruggles, S., i, 75.
Rum impressed, i. 244.
Rush B., i. 52 ; ii. 135, 237.
Rutlef* '-E., i, 122.
Rutle.. -J., i. 116.
Sacrifice, equality of, ii, 73.
St, Clair Papers, i. 232,
St. Eustatius, i. 128, 129.
Salaries, i. 277 ; ii, 4, 40, 69, 231.
Salt, i. 50, 54, 76, 106, 126, 127, 132, 134,
136, 137. 140, 153, 203, 243; ii. 64,
201
Salt-works, i. 207. 1
San Domingo, ii. 263,
Sands, Comfort, i, 128, 130; ii. 61, 62,
^ 63, 152.
bansom, W., ii, 228.
Sayre, i. 219.
Schuyler, Gen., i. 107, 278; ii. 20, 237.
Schwab, J. C, i, 20.
Schweighauser, i, 118.
Scott, ii, 251.
Seamen impressed, i. 144.
Searle, Col,, i. 293; ii. 14.
Secrecy, need of, ii. 125. Lack of, i. 198,
220, 303.

Secret service, i. 204, 234, 301, 305.
Secret sessions, i, 223.
Sellers, N., ii. 43.
Seneca Lake, ii. 253.
Seton, W., ii. 184.
Sharp shins, ii. 45.
Shemeld, Lord, i. 100, 130; ii, 115.
Shelburne, Lord, i. 309.
Shingle, ii. 96.
Shipments, private, i. 184, 217, 218, 223,
224, 231.
Shippen, J., i. 4.
Ship timber, ii. i.
Ships for Spain, ii. 9.
Silver, rating of, ii, 63.
Silver vs. gold, i, 204.
Silverware, ii. 16.
Simpson, G., ii. 303.
Simpson, H. ii. 278.
Six Nations, li. 253.
Slave trade, i. 112.
Slaves, ii. 70.
Smilie, ii. 191.
Smith, A., i. 25, 120, 124.
Smith, R,, ii. 3.
Smith, W. S., ii. 258, 284.
Social changes, ii. 180.
Social organization, ii, 145.
Soderstrom, R,, ii. 258, 2g4.
Sodus, ii, 262.
South, weakness of the, ii. 81.
South Carolina, i, 24,
" South Carolina," the, i. 2g8 ; ii. 12, 14,
15-
Spam, appeals to, i. 168. Alliance with
France, i. 250. Loans by, i. 164, 169,
249, 250, 255, 256; ii. I, 3,9, n. Posi
tion of, i. 249.
Specie, ii. 170. Comes int,, circulation, i.
98 ; ii. 3, 34, 81, 178. False display of,
ii. 157. Imported, i, 277, 298-300; ii,
3-5, 17, 40, 96, Loaned to New York,
i, IOO. Plentiful, i. t^O), 100; ii. 34.
Requirement, i. 42, 43, Used by the
French, ii. 142, 143.
Speculations, ii. 176, 232. Commercial,
i. 184, 217, 218, 223, 224, 231.
Spies, English,!. 164, 176, 177, 207, 212,
213,
Springetsbury, i. 303 ; li, 227.
Stamp Act, the, i. 4.
State, growth of the American, !. 3S.
States, the, accounts of, with the Union, i.
285, 286. Behaviour of, i. 273, 285, 286 ;
"¦ 5') 55i 58, 85. Borrowing by, i. 248,
252, 292 ; ii. 60. Committees sent to,
i. 51. Debts of, ii. 122. Reply of, i.
286. Supplies by, i. 285. Small vs.
large, ii. 204,
State rights, i. 138, 218; ii. 67, 68, 236.
Steam-engine, li, 176.

Index.

329

stedman, i. 2og.
Steuart, Sir J., ii. 30.
Steuben, Gen,, i. 150, 210, 211 ; ii. 137.
Stiegel, Baron, i. 211.
Stormont, Lord, see Ambassador.
Story, T., i. 158, 166, 167, 198.
Subsistence, i. 142.
Subsistence, notes, ii. no, 152, 157.
Suffolk, Lord, i. 207.
Sullivan, Gen., i. 145, 262 ; ii. 254.
Sullivan, W., ii. 291.
Supineness, English, i. 209. American,
i. 286. __
Supplies, ii. 22, 94. Specjiic, i. 19, 23g-
246, 258, 271, 278, 280, 282-284, 296,
302, 304, 307; ii. 71, 7g, 126, 206. Lett
inthe West Indies, i. 171, 172 ; ii. 88.
Magazines of, i. 260, 2g6. Monopolized,
i. 171. Quality of, i. 166, 174, 175 ; ii.
15, 89. bale of, ii. 89, 127.
Subsidies, see France, loans by. Drawn by
Washington, i. 2g7.
Susquehanna, improvement of the, ii. 239.
Swanwick, J,, ii. 44, 154, 157, 158, 162.
Swanzey, ii. 292.
Swords, silver-mounted, i. 295.
Talbot and Allen, ii. 283, 293.
Talon, ii. 263.
Tarleton, Gen., i. 150.
"Tartar," the, i, 201.
Tax, auction,!. 20. Collectors,!. 82, 240,
241, 244, 245. Export, ii. 3, 169. Im
port, i, 15, 20; ii. 64, 169, 198. In
come, i, 13. In kind, i. 2g, 240. Land,
i. 13; ii. 251. On non-associators, i.
23, 191. Old man's, i. 29. Poll, i. 12,
13, 19. Property, i. 13, ig. On rents,
i, 34, 306, On sales, i. 34, 125. Sinking
Fund, i. iS, ig. Stamp, i. 14, 19, 20.
On Suffolk County, etc., ii. 77.
Taxes, i. 81, 92, 173, 234, 272, 274, 275,
284, 285-287 ; ii. 2, 18, 34, 59, 62, 66,
67. 92, g9, IOI, 103, "4, 126, 129, 137,
150, 152, 154. Ability to pay, ii. 58,
71, 72, 76, 103, 137-140. Arrears of;
i. 34; ii. 131. And contracts, ii. 85.
Excuses for not paying, ii. 72, 75.
Protective, ii. 178, igg, 230, 231. State
vs. federal, ii, 71,
Taxation,!. 6, 11-34, 41, 56, 60, 62, 65,
72, 172, 273, 289; ii. 6, 21,64-80, 104,
ig5. Dogmas of, i. 18, 2g. Hardship
of, i. 33. Inequality of, i. 2g. And
representation, i. 17. And slave-own
ers, i. 84. Why unproductive, i. 32,
Tea, i, 49, 50, 54, no, 112, 115, 125, 126,
127 ; ii. 136.
Ten Alley, ii. 278.
Tenants, i. 236.
Tennessee Company, ii. 252.

Tenor, new, i, 85.
Terrorization, i. 120, 121, see Forced cir
culation.
Theatricals, ii. 189.
" Three-eighty-one Trust," ii, 303-305.
Tilghman, Tench, ii. 116, 158, 160,
277.
Tobacco, i. 129, 163, 165, 167, 197, 239,
309; ii. 52, 85, 86, 113-115, 128, 150,
158, 164, 166-173, 268, 276, 277.
Tom's River, i. 207.
Tools impressed, i. 151, 15 j,
Tories, i, 8, 26, 28, 4g, 52, 62, 65, 6g, 75,
79, 121, 142, 232, 235 ; ii. 138, 179, i8g,
igo.
Tower of London, i. 251, 281, 2g4 ; ii. n.
Tracy, ii. 180.
Trade, balance of, ii. igi, ig6. Colonial,
i. 105. With theenemy, i. gg, 132, Good
or bad, ii. 40, 74, 88. Of New York, i.
gg. Notions about, i. 104, ig3, 254,
Protection of, i, 193, Of the United
States and Great Britain, i. 130, 254.
Ofthe United States and France, i. 235.
Violating the Association, i. 120, 124,
126, 128.
Trading company, i. 207, 226.
Transportation, i, 92, 141, 142-144, 242,
243, 278, 301, 308; ii. 35, 140. Rates,
i. 141.
Treasury, philosophy of a, i. 35.
Treasury, the, i. 5, 6. Board of, i. 34,
51; ii. 22, 46, 196. Book-keeping, ii.
log. Commissioners of, ii, 119. Re
organization of, ii. 123, 124. State of,
i. 307. System of, ii. 107.
Trenton, i. 200; ii." 236, 250.
Troops, number of, il. 147, 14? Quotas
of, i. 190. Quality of, ii. 14;
Trout springs, ii. 227, 270.
Trumbull, Gov,, i. 35.
Trumbull, J., i. 2g3; ii, 14.
" Trumbull," the, i, 281 ; ii. 3, 4.
Tryon, Gov,, i. 20; ii. 146.
Turnbull, Marmie, & Co., ii. 163.
Turner, O., ii, 257,
Tuscany, i. 2g3.
Union, i. 2g, 41, g2, 108, 116-119, 196,
285. 286, 2g2; ii. 67, 70, 120, 138, 183,
ig4, igg, 200, 207, 244.
Unit of account, ii. 38.
Valley Forge, i. 7, 2og ; ii. 148.
Value, i, 237.
Van Berkel, i. 253,
Varnum, J,,ii. 17.
Vergennes, Count de, i. 87, 88, gi, 158,
ig8, 25g, 2g5, 297-2gg; ii. 8, 49, 92.
Vessels impressed, i. 143-145.
Violence, i. 120.

330

Index.

Virginia, i. 24, 33, 36. Accounts of with
the Union, ii. 79. Arms imported by,
i. 175, 180. "A Farmer of," i. 79,
Law on trade, ii. 201 . And Maryland,
ii. 192-igg, 240. Papers, i. i4g, 155,
240; ii. 7g, 84. Taxes in, ii. 57, 78.
Yazoo company, ii. 251, 259.
Wadsworth, Col., ii. 62, 174, 232, 257,
260, 268.
Wagon service, i. 146-150.
Wagons, broken, i. 151, 153.
Walker, ii, 243.
Wain, ii, 157, 162.
" Walsingham," i. 80; ii. 25.
War, the Seven Years', i, 3; ii. 145. Of
1812, ii. 268. Commercial, i. 62, 104,
112,130. The Board of, ii. 22, 97, Of
the Revolution, to be short, i. 41 ; ex
pected end of, i. 71, 258 ; offensive, i.
^log; cost of, i. 270, 287; ii. 50, 132-
134 ; cost of, to France, i. 2g5, 2g6 ;
weariness of, i, 85, 148, 154, 258, 307 ;
ii, 57; English view of the, i, 160;
the strength of the United States for,
ii. 145-147. Between France and Eng
land, i, 201, 207. Between England
and Holland, i. 252, 253,
Ward, A., i, 261.
Wardens of Philadelphia, i, 26, 189,
" Warren," the, i. 144.
Washington, G,, i. 7, 26, 36, 70, 74, 130,
¦33, 147, 148, 153, 200, 215, 218, 234,
239, 241, 258, 259, 266, 297, 301, 303,
305 ; n, 21, 23, 99, 148, 203, 228, 221,
260, 268, 269, 291, 302. Influence on
Washington City, ii. 243, 249, 250. ¦
Washington, Mrs., ii. 234, 291.
Washington City, see Federal City.
Waste, i. 240-244, 275.
Watkins, ii. 252.
Wayne, Gen,, i. 148.
Webb & Co., ii. 167.
Webster, D,, ii. 198.
Webster, P., i. 28, 30, 42, 43, 83, 86, 98,
154, 260 ; ii. 139, 178, 180, 181, igi.
Weeden, i. 13.
Wentworth, P., i. 100, 207, 208, 218, 233;
ii.'273.
Wertz, Major, i, 94.

Western boundary, i. 250.
Westham, i, 241.
West India planters, i. 113.
Wharton vs. Willing et ai., ii, 164,
Wheeler, S., ii. 43.
Whigism, ii, 136.
Whigs, ii. 179.
White, Bp., i. 3 ; ii. 297.
White, Mary, see Mrs, R. Morris.
White, T., i. 3 ; ii, 2g6.
White Marsh, i, i.
Wilcox, M., ii, 44.
Wilkinson, Gen., i. igg.
William III., i. 108,
Williams or Williamson, C, ii. 25g.
Williams, J., i. iSi, 183, 185, 212; ii.
i6g.
Willing, C, i. 3.
Willing, T. (1st), i. 3.
Willing, T. (2d), i. 188, 211; ii. 30, 162,
2ig,
Willing and Morris, i. ig2, ig4, 205, 207,
2og, 212, 215, 223, 225-227; ii. 162,
167, 184, 2og, 211, 213,218, 2ig, 271,
272, 275.
Willings, the, i. 3.
Willink, ii. 113, 115, 262.
Wilson, J,, i. 232 ; ii. 96.
Wise, Sarah, i. 2.
Women in the'fields, ii, 143.
Wood, ii. 176.
Woodbury, L., i. g8.
Workmen, impressed, i. 142, 151.
Wounded suffer, i. 150, 244,
Wright, ii. 37.
Wyoming, li. 255, 263,
Yellow fever, ii, 2go.
Yorktown, Penn,, i. 25,167, 210, 215.
YorktowHj Va,, i. 34, 242 ; ii. 31. Cam
paign, 1. i4g, 151, 153, 241, 244, 301-
jog; u. 5, g4, 142, 150, 151. Forces at,
1- 3°6, 3°7.
Young, Arthur, i. 27; ii. 133.
Young, C, ii. 291, 294.
Yrujo, Marquis de, ii, 286.
Zeal, i. 300. Penalty of, i, 155, 205,
2i8;ii. 86.

YALE UNIVERSITY

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