Details
MORRIS, ROBERT, Signer (Pennsylvania). Letter signed ("Robt Morris") as Superintendent of Finance TO BENJAMIN FRANKLIN, Minister Plenipotentiary to France; Office of Finance, [philadelphia?], 27 September 1782. 5 pages, large folio, integral blank leaf, small hole to first leaf from acidic ink, slightly affecting one letter of signature.
A NEW NATION APPEALS FOR FRENCH AID: "IF THE WAR IS TO BE CARRIED ON THIS AID IS INDISPENSABLE"
An eloquent and important letter, written during the period of uncertainty that followed the American victory at Yorktown, when the prospect of peace with Britain seemed remote and the nation's finances were on the verge of complete collapse. Morris asks Franklin to request, on behalf of Congress, a large loan from France. He emphasizes the warm feelings toward France presently reigning in the United States, touches on the delicate diplomacy required of Franklin, and deplores the inefficiency of the existing system of taxation, while frankly acknowledging the difficulty of imposing taxes on citizens of a nation whose very existence remains to be firmly established and whose very birth arose from a tax revolt.
"... you are...instructed to communicate the resolution for borrowing four millions of Dollars to his most Christian Majesty and first to assure his Majesty of the high Sense which the United States... entertain of his friendship and generous Exertions....You (of all Men in the World) are not now to learn that the sower English Prejudice against every thing French had taken deep root in the minds of America. It could not have been expected that this should be obliterated in a moment. But by Degrees almost every Trace of it has been effaced. The Conduct of Britain has weaned us from our Attachments....Whatever remains of monarchical Disposition exist are disposing themselves fast to a Connection with the French Monarchy...."
"Congress have directed you further to express to the King their reliance on a Continuance of his Friendship and Exertions....I rather apprehend that we shall be considered as relying too much on France or in other words doing too little for ourselves....[and] a mighty good Argument may be raised...that the nation which will not help itself does not merit the Aid of others and it would be easy to tell us that we must put our own Shoulder to the Wheel before we call upon Hercules....Twenty years hence when Time and Habit have settled and compleated the federal Constitution of America Congress will not think of relying on any other than that Being to whose Justice they appealed at the commencement of their Opposition. But there is a Period in the Progress of Things, a Crisis between the Ardor of Enthusiasm and the Authority of Laws, when much skill and management are necessary to those who are charged with administering the Affairs of a nation..." Morris stresses the urgency of the America's need: "...I might write volumes on our necessities...."The requisitions of last October for Eight Millions had produced...only one hundred and twenty five thousand Dollars... The smallness of the sum which has been paid will doubtless astonish you... The People are undoubtedly able to pay but they have easily persuaded themselves into a conviction of their own Inability and in a Government like ours the Belief creates the Thing. The modes of laying and levying Taxes are vicious in the extreme... When the People have had dear Experience of the consequences of not being taxed they will probably work the proper amendment but our necessities in the Interim are not the less severe...." The immediate necessity, he asserts, "arises from the necessity of... establishing the Power of Government over a People impatient of control, and confirming the federal Union of the several States by correcting Defects in the general Constitution. In a word it arises from the necessity of doing that infinite variety of Things which are to be done in an infant Government placed in such delicate Circumstances that the People must be wooed and won to do their Duty to themselves....If the War is to be carried on this aid is indispensable and when obtained will enable us to act powerfully in the Prosecution of it. If a Peace takes place it is still necessary and as it is the last request which we shall then have occasion to make I cannot think that it will be refused".
As Superintendent of Finances, an office created for him by a desperate Congress in early 1781, Morris took rigorous measures to control the fiscal administration by drastic economy and a reorganization of the chaotic monetary system (the Continental currency had collapsed in 1779-80). In July 1781 Morris had secured from France one of the most substantial foreign loans of the period, amounting to about $200,000, with which he financed the Battle of Yorktown, using the remainder to organize the Bank of North America, to which he himself contributed generously. Thanks largely to the Bank, the nation's improved public credit made it possible to continue borrowing from France, Spain and Holland. "Between 1778 and 1782 France made twenty-one separate loans to the United States, totaling 18 million livres tournois"--about 3.4 million dollars (W. G. Anderson, The Price of Liberty, Charlottesville 1983, p. 5). In July 1782, Morris estimated the total public debt (including the internal debt) to have reached $30 million, but he "did not believe the debt would have to be paid in the near future. Provision only had to made for the payment of interest..." (op. cit., p. 15). The loan that is the subject of this letter was granted, at an interest rate of approximately 5 percent. In 1785 the United States defaulted on repayment of its debt to France.
A NEW NATION APPEALS FOR FRENCH AID: "IF THE WAR IS TO BE CARRIED ON THIS AID IS INDISPENSABLE"
An eloquent and important letter, written during the period of uncertainty that followed the American victory at Yorktown, when the prospect of peace with Britain seemed remote and the nation's finances were on the verge of complete collapse. Morris asks Franklin to request, on behalf of Congress, a large loan from France. He emphasizes the warm feelings toward France presently reigning in the United States, touches on the delicate diplomacy required of Franklin, and deplores the inefficiency of the existing system of taxation, while frankly acknowledging the difficulty of imposing taxes on citizens of a nation whose very existence remains to be firmly established and whose very birth arose from a tax revolt.
"... you are...instructed to communicate the resolution for borrowing four millions of Dollars to his most Christian Majesty and first to assure his Majesty of the high Sense which the United States... entertain of his friendship and generous Exertions....You (of all Men in the World) are not now to learn that the sower English Prejudice against every thing French had taken deep root in the minds of America. It could not have been expected that this should be obliterated in a moment. But by Degrees almost every Trace of it has been effaced. The Conduct of Britain has weaned us from our Attachments....Whatever remains of monarchical Disposition exist are disposing themselves fast to a Connection with the French Monarchy...."
"Congress have directed you further to express to the King their reliance on a Continuance of his Friendship and Exertions....I rather apprehend that we shall be considered as relying too much on France or in other words doing too little for ourselves....[and] a mighty good Argument may be raised...that the nation which will not help itself does not merit the Aid of others and it would be easy to tell us that we must put our own Shoulder to the Wheel before we call upon Hercules....Twenty years hence when Time and Habit have settled and compleated the federal Constitution of America Congress will not think of relying on any other than that Being to whose Justice they appealed at the commencement of their Opposition. But there is a Period in the Progress of Things, a Crisis between the Ardor of Enthusiasm and the Authority of Laws, when much skill and management are necessary to those who are charged with administering the Affairs of a nation..." Morris stresses the urgency of the America's need: "...I might write volumes on our necessities...."The requisitions of last October for Eight Millions had produced...only one hundred and twenty five thousand Dollars... The smallness of the sum which has been paid will doubtless astonish you... The People are undoubtedly able to pay but they have easily persuaded themselves into a conviction of their own Inability and in a Government like ours the Belief creates the Thing. The modes of laying and levying Taxes are vicious in the extreme... When the People have had dear Experience of the consequences of not being taxed they will probably work the proper amendment but our necessities in the Interim are not the less severe...." The immediate necessity, he asserts, "arises from the necessity of... establishing the Power of Government over a People impatient of control, and confirming the federal Union of the several States by correcting Defects in the general Constitution. In a word it arises from the necessity of doing that infinite variety of Things which are to be done in an infant Government placed in such delicate Circumstances that the People must be wooed and won to do their Duty to themselves....If the War is to be carried on this aid is indispensable and when obtained will enable us to act powerfully in the Prosecution of it. If a Peace takes place it is still necessary and as it is the last request which we shall then have occasion to make I cannot think that it will be refused".
As Superintendent of Finances, an office created for him by a desperate Congress in early 1781, Morris took rigorous measures to control the fiscal administration by drastic economy and a reorganization of the chaotic monetary system (the Continental currency had collapsed in 1779-80). In July 1781 Morris had secured from France one of the most substantial foreign loans of the period, amounting to about $200,000, with which he financed the Battle of Yorktown, using the remainder to organize the Bank of North America, to which he himself contributed generously. Thanks largely to the Bank, the nation's improved public credit made it possible to continue borrowing from France, Spain and Holland. "Between 1778 and 1782 France made twenty-one separate loans to the United States, totaling 18 million livres tournois"--about 3.4 million dollars (W. G. Anderson, The Price of Liberty, Charlottesville 1983, p. 5). In July 1782, Morris estimated the total public debt (including the internal debt) to have reached $30 million, but he "did not believe the debt would have to be paid in the near future. Provision only had to made for the payment of interest..." (op. cit., p. 15). The loan that is the subject of this letter was granted, at an interest rate of approximately 5 percent. In 1785 the United States defaulted on repayment of its debt to France.