Founding America: Documents from the Revolution to the Bill of Rights (38 page)

I shall now Sir take the Liberty to Suppose, that the Revenues I have mentioned, or some others to the Amount of at least two Millions net annual Produce, were asked for and obtained, as a Pledge to the public Creditors; to continue untill the Principal and Interest of the Debts contracted, or to be contracted, should be finally paid. This Supposition is made that I may have an Opportunity (thus early) to express my Sentiments on the Mode of Appropriation. It would be as follows. Any one of the Revenues, being estimated, a Loan should be opened on the Credit of it, by Subscription, to a certain Amount and public Debts of a particular Description (or Specie) be received in Payment of the Subscriptions. This funded Debt should be transferable, under particular Forms, calculated for the Prevention of fraudulent, and facilitating of honest Negotiations. In like Manner on each of these Revenues should Subscriptions be opened, proceeding by Degrees so as to prevent any sudden Revolutions in Money Matters; such Revolutions being always more or less injurious. I should farther propose, that the Surplus of each of these Revenues (and Care should be taken that there would be a Surplus) should be carried to a Sinking Fund, on the Credit of which, and of the general Promises of Government new Loans should be opened, when necessary. The Interest should be paid half yearly; which would be convenient to the Creditors and to the Government, as well as useful to the People at large: because by this Means, if four different Loans were opened at different Times, the Interest would be payable eight Times in the Year, and thus the Money would be paid out of the Treasury as fast as it came in, which would require fewer Officers to manage the Business, keep them in more constant and regular Employment, dispense the Interest so as to command the Confidence and facilitate the Views of the Creditors, and return speedily the Wealth obtained by Taxes into the Common Stock. I know it will be objected, that such a Mode of Administration would enable Speculators to perform their Operations. A general Answer to this would be, that any other Mode would be more favorable to them. But farther, I conceive, first, that it is much beneath the Dignity of Government to intermeddle in such Considerations. Secondly, that Speculators always do least Mischief where they are left most at Liberty. Thirdly, that it is not in human Prudence to counteract their Operations by Laws; whereas when left alone they invariably counteract each other. And fourthly, that even if it were possible to prevent Speculation, it is precisely the Thing which ought not to be prevented; because he who wants Money to commence, pursue or extend his Business, is more benefited by selling Stock of any Kind (even at a considerable Discount) than he could be by the Rise of it at a future Period; Every Man being able to judge better of his own Business and Situation, than the Government can for him. So much would not, perhaps, have been said on the Head of this Objection, if it did not naturally lead to a Position which has been ruinous and might prove fatal. There are many Men (and some of them honest Men) whose Zeal against Speculation leads them to be sometimes unmindful, not only of sound Policy, but even of Moral Justice. It is not uncommon to hear, that those who have bought the public Debts for small Sums, ought only to be paid their purchase Money. The Reasons given are, that they have taken Advantage of the distressed Creditor, and shewn a Diffidence in the public Faith. As to the first, it must be remembered that in giving the Creditor Money for his Debt, they have at least afforded him some Relief, which he could not obtain elsewhere; and if they are deprived of the expected Benefit, they never will afford such Relief again. As to the Second, those who buy up the public Debts shew at least as much Confidence, in the public faith, as those who sell them; but allowing (for Argument’s sake) that they have exhibited the Dif fidence complained of, it would certainly be wiser to remove than to Justify it. The one Mode tends to create, establish and secure public Credit; and the other to sap, overturn and destroy it. Policy is therefore on this (as I believe it to be on every other occasion) upon the same Side of the Question with Honesty. Honesty tells us, that the Duty of the Public to pay is like the same Duty in an Individual. Having benefited by the Advances, they are bound to replace them to the Party, or to his Representatives. The Debt is a Species of Property, and whether disposed of for the whole nominal Value, or the half, for something or for Nothing, is totally immaterial. The Right of receiving, and the Duty of paying, must always continue the same. In a word, that Government which can (thro’ the Intervention of its Courts) compel Payment of private Debts, and Performance of private Contracts, on Principles of distributive Justice, but refuse to be guided by those Principles, as to their own Contracts and Debts, merely because they are not amenable to human Laws, shews a flagitious Contempt of moral Obligations, which must necessarily weaken, as it ought to do, their Authority over the People.

Before I conclude this long Letter, it would be unpardonable not to mention a Fund which has long since been suggested, and dwells still in the Minds of many. You Doubtless Sir anticipate my naming of what are called the back Lands. The question as to the Property of those Lands, I confess myself utterly incompetent to decide, and shall not, for that Reason, presume to enter on it. But it is my Duty to mention, that the offer of a Pledge the Right to which is contested, would have ill Consequences, and could have no Good ones. It could not strengthen our Credit because no one would rely on such a Pledge, and the Recurrence to it would give unfavorable Impressions of our political Sagacity. But admitting that the Right of Congress is clear, we must remember also, that it is disputed by some considerable Members of the Confederacy. Dissentions might arise from hasty Decissions on this Subject, and a Government torne by intestine Commotions, is not likely to acquire or maintain Credit, at Home or abroad. I am not however the less clear in my Opinion, that it would be alike useful to the whole Nation, and to those very constituent Parts of it, that the entire Disposition of these Lands should be in Congress. Without entering therefore into the litigated Points, I am induced to beleive, and for that Reason to suggest the proposing this Matter to the States as an amicable Arrangement. I hope to be pardoned when I add, that considering the Situation of South Carolina and Georgia, it might be proper to ask their Consent to Matters of the clearest Right. But that, supposing the Right to be doubtful, urging a Decision in the present Moment might have a harsh and ungenerous Appearance. But if we suppose this matter to be arranged, either in the one Mode or in the Other, so that the Right of Congress be rendered indisputable (for that is a previous Point of indispensible Necessity) the remaining Question will be as to the Appropriation of that Fund. And I confess it does not appear to me, that the Benefits resulting from it are such as many are led to beleive. When the Imagination is heated in Pursuit of an Object, it is generally overrated. If these Lands were now in the Hands of Congress, and they were willing to mortgage them to their present Creditors, unless this were accompanied with a due Provision for the Interest, it would bring no Relief. If these Lands were to be sold for the public Debts, they would go off for almost nothing. Those who want Money could not afford to buy Land. Their Certificates would be bought up for a Trifle. Very few moneyed Men would become possessed of them, because very little money would be invested in so remote a Speculation. The small Number of Purchasers would easily and readily combine. Of Consequence they would acquire the Lands for almost Nothing, and effectually defeat the Intentions of Government, leaving it still under the Necessity of making farther Provision; after having needlessly squandered an immense Property. This Reasoning is not new. It has been advanced on similar Occasions before, and the Experience which all America has had of the Sales of confiscated Estates, and the like, will now shew that it was well founded. The back Lands, then, will not answer our Purpose without the necessary Revenues. But those Revenues will alone produce the desired effect. The back Lands may afterwards be formed into a Fund, for opening new Loans in Europe on a low Interest, redeemable within a future Period (for Instance twenty Years) with a right reserved to the Creditors of taking Portions of those Lands, on the Non Payment of their Debts, at the Expiration of that Term. Two Modes would offer for Liquidation of those Debts. First to tender Payment during the Term, to those who would not consent to alter the Nature of the Debt; which (if our Credit be well established) would place it on the general Footing of national Faith. And Secondly, to sell Portions of the Land (during the Term) sufficient to discharge the Mortgage. I perswade myself that the Consent of the reluctant States might be obtained, and that this Fund might hereafter be converted to useful Purposes. But I hope that, in a Moment when the Joint Effort of all is indispensible, no Causes of Altercation may be mingled, unnecessarily, in a question of such infinite Magnitude as the Restoration of public Credit. Let me add, Sir, that unless the Money of Foreigners be brought in for the Purpose, Sales of public Land would only absorp that Surplus Wealth, which might have been exhaled by Taxes, so that in Fact no new Resource is produced. And that, while (as at present) the Demand for Money is so great as to raise Interest to five per Cent per Month, public Lands must sell extremely low were the Title ever so clear; what then can be expected when the Validity of that Title, is one Object of the War? I have the Honor to be with great Respect your Excellency’s most obedient Servant

Robt Morris

His Excellency The President of Congress

RESOLVED, BY NINE STATES, That it be recommended to the several states, as indispensably necessary to the restoration of public credit, and to the punctual and honorable discharge of the public debts, to invest the United States in Congress assembled with a power to levy for the use of the United States the following duties upon goods imported into the said states from any foreign port, island or plantation:

Provided, that none of the said duties shall be applied to any other purpose than the discharge of the interest or principal of the debts contracted on the faith of the United States, for supporting the war, agreeably to the resolution of the 16 day of December last, nor be continued for a longer term than twenty-five years: and provided, that the collectors of the said duties shall be appointed by the states, within which their offices are to be respectively exercised, but when so appointed, shall be amenable to, and removable by the United States in Congress assembled, alone; and in case any State shall not make such appointment within one month after notice given for that purpose, the appointment may be made by the United States in Congress assembled:

That it be further recommended to the several states, to establish for a term limited to twenty-five years, and to appropriate to the discharge of the interest and principal of the debts contracted on the faith of the United States for supporting the war, substantial and ef fectual revenues of such nature as they may judge most convenient, for supplying their respective proportions of one million five hundred thousand dollars annually, exclusive of the aforementioned duties, which proportion shall be fixed and equalized, from time to time, according to the rule which is or may be prescribed by the Articles of Confederation; and in case the revenues established by any State shall at any time yield a sum exceeding its actual proportion, the excess shall be refunded to it; and in case the revenues of any State shall be found to be deficient, the immediate deficiency shall be made up by such State with as little delay as possible, and a future deficiency guarded against by an enlargement of the revenues established : provided that until the rule of the Confederation can be carried into practice, the proportions of the said 1,500,000 dollars shall be as follows, viz.

The said last mentioned revenues to be collected by persons appointed as aforesaid, but to be carried to the seperate credit of the states within which they shall be collected.

That an annual account of the proceeds and application of all the aforementioned revenues, shall be made out and transmitted to the several states, distinguishing the proceeds of each of the specified articles, and the amount of the whole revenue received from each State, together with the allowances made to the several officers employed in the collection of the said revenues.