American History Told by Contemporaries/Volume 2/Chapter 33
CHAPTER XXXIII — CRISIS IN DOMESTIC AFFAIRS, 1779-1782
205. The Confederation Incomplete (1779)
BY THE ASSEMBLY OF MARYLAND
This remonstrance, drawn up December 15, 1778, was presented to Congress by the Maryland delegates on May 21, 1779; and the state continued to stand out till January 30, 1781. The issue was upon the lands acquired by the Rogers Clark expedition (No. 201 above), and resulted in the cession of the disputed territory by Virginia to the United States, a step which prepared the way for a national public domain. — Bibliography: Winsor, Narrative and Critical History, VI, 527; Curtis, History of the Constitution, I, 131-141; Roosevelt, Winning of the West, III; Hinsdale, Old Northwest, II, 213-214 (with maps); Channing and Hart, Guide, §§ 142, 150. — See No. 209 below.
. . . WE think it our duty to instruct as followeth on the subject of the confederation, a subject in which, unfortunately, a supposed difference of interest has produced an almost equal division of sentiments among the several states composing the union. We say a supposed difference of interests ; for if local attachments and prejudices, and the avarice and ambition of individuals, would give way to the dictates of a sound policy, founded on the principles of justice (and no other policy but what is founded on those immutable principles deserves to be called sound) we flatter ourselves, this apparent diversity of interests would soon vanish, and all the states would confederate on terms mutually advantageous to all ; for they would then perceive that no other confederation than one so formed can be lasting. Although the pressure of immediate calamities, the dread of their continuance from the appearance of disunion, and some other peculiar circumstances, may have induced some states to accede to the present confederation, contrary to their own interests and judgments, it requires no great share of foresight to predict, that when those causes cease to operate, the states which have thus acceded to the confederation will consider it as no longer binding, and will eagerly embrace the first occasion of asserting their hist rights, and securing their independence. Is it possible that those states who are ambitiously grasping at territories, to which in our judgment they have not the least shadow of exclusive right, will use with greater moderation the increase of wealth and power derived from those territories, when acquired, than what they have displayed in their endeavours to acquire them? We think not. We are convinced the same spirit which hath prompted them to insist on a claim so extravagant, so repugnant to every principle of justice, so incompatible with the general welfare of all the states, will urge them on to add oppression to injustice. If they should not be incited by a superiority of wealth and strength to oppress by open force their less wealthy and less powerful neighbours ; yet depopulation and consequently the impoverishment of those states will necessarily follow, which, by an unfair construction of the confederation, may be stripped of a common interest, and the common benefits derivable from the western country. Suppose, for instance, Virginia indisputably possessed of the extensive and fertile country to which she has set up a claim, what would be the probable consequences to Maryland of such an undisturbed and undisputed possession? They cannot escape the least discerning.
Virginia, by selling on the most moderate terms a small proportion of the lands in question, would draw into her treasury vast sums of money ; and in proportion to the sums arising from such sales, would be enabled to lessen her taxes. Lands comparatively cheap, and taxes comparatively low, with the lands and taxes of an adjacent state, would quickly drain the state thus disadvantageously circumstanced of its most useful inhabitants ; its wealth and its consequence in the scale of the confederated states would sink of course. A claim so injurious to more than one half, if not to the whole of the United States, ought to be supported by the clearest evidence of the right. Yet what evidences of that right have been produced? What arguments alleged in support either of the evidence or the right? None that we have heard of deserving a serious refutation.
It has been said, that some of the delegates of a neighbouring state have declared their opinion of the impracticability of governing the extensive dominion claimed by that state. Hence also the necessity was admitted of dividing its territory, and erecting a new state under the auspicies and direction of the elder, from whom no doubt it would receive its form of government, to whom it would be bound by some alliance or confederacy, and by whose councils it would be influenced. Such a measure, if ever attempted, would certainly be opposed by the other states as inconsistent with the letter and spirit of the proposed confederation. Should it take place by establishing a sub confederacy, imperium in imperio, the state possessed of this extensive dominion must then either submit to all the inconveniences of an overgrown and unwieldly government, or suffer the authority of Congress to interpose at a future time, and to lop off a part of its territory to be erected into a new and free state, and admitted into a confederation on such conditions as shall be settled by nine states. If it is necessary for the happiness and tranquillity of a state thus overgrown, that Congress should hereafter interfere and divide its territory, why is the claim to that territory now made, and so pertinaciously insisted on? We can suggest to ourselves but two motives ; either the declaration of relinquishing at some future period a proportion of the country now contended for, was made to lull suspicion asleep, and to cover the designs of a secret ambition, or, if the thought was seriously entertained, the lands are now claimed to reap an immediate profit from the sale. We are convinced, policy and justice require, that a country unsettled at the commencement of this war, claimed by the British crown, and ceded to it by the treaty of Paris, if wrested from the common enemy by the blood and treasure of the thirteen states, should be considered as a common property, subject to be parcelled out by Congress into free, convenient and independent governments, in such manner and at such times as the wisdom of that assembly shall hereafter direct.
Thus convinced, we should betray the trust reposed in us by our constituents, were we to authorize you to ratify on their behalf the confederation, unless it be farther explained. We have coolly and dispassionately considered the subject ; we have weighed probable inconveniences and hardships against the sacrifice of just and essential rights ; and do instruct you not to agree to the confederation, unless an article or articles be added thereto in conformity with our declaration. Should we succeed in obtaining such article or articles, then you are hereby fully empowered to accede to the confederation. . . .
We have spoken with freedom, as becomes free men ; and we sincerely wish that these our representations may make such an impression on that assembly as to induce them to make such addition to the articles of confederation as may bring about a permanent union.
Secret Journals of the Acts and Proceedings of Congress (Boston, 1821), I, 434-438 passim.
206. Revolutionary Finance (1781)
This letter was sent to John Laurens, as a basis of information for his mission abroad. For Washington, see No. 195 above. — Bibliography of Revolutionary finance : Winsor, Narrative and Critical History, VII, 81 ; W. G. Sumner, Financier [Morris] and Finances of the American Revolution ; Bolles, Financial History of the United States, I, 1-332; Channing and Hart, Guide, § 151.
New Windsor, 15 January, 1781. . . .
IN compliance with your request I shall commit to writing the result of our conferences on the present state of American affairs, in which I have given you my ideas with that freedom and explicitness, which the objects of your commission, my entire confidence in you, and the exigency demand. To me it appears evident :
1st. That, considering the diffused population of these States, the consequent difficulty of drawing together its resources, the composition and temper of a part of the inhabitants, the want of a sufficient stock of national wealth as a foundation for revenue, and the almost total extinction of commerce, the efforts we have been compelled to make for carrying on the war have exceeded the natural abilities of this country, and by degrees brought it to a crisis, which renders immediate and efficacious succors from abroad indispensable to its safety.
2dly. That, notwithstanding, from the confusion always attendant on a revolution, from our having had governments to frame and every species of civil and military institutions to create, from that inexperience in affairs necessarily incident to a nation in its commencement, some errors may have been committed in the administration of our finances, to which a part of our embarrassments are to be attributed ; yet they are principally to be ascribed to an essential defect of means, to the want of a sufficient stock of wealth, as mentioned in the first article, which, continuing to operate, will make it impossible by any merely interior exertions to extricate ourselves from those embarrassments, restore public credit, and furnish the funds requisite for the support of the war.
3dly. That experience has demonstrated the impracticability long to maintain a paper credit without funds for its redemption. The depreciation of our currency was in the main a necessary effect of the want of those funds ; and its restoration is impossible for the same reason, to which the general diffidence that has taken place among the people is an additional and, in the present state of things, an insuperable obstacle.
4thly. That the mode, which for want of money has been substituted for supplying the army, by assessing a proportion of the productions of the earth, has hitherto been found ineffectual, has frequently exposed the army to the most calamitous distress, and, from its novelty and incompatibility with ancient habits, is regarded by the people as burthensome and oppressive, has excited serious discontents, and in some places alarming symptoms of opposition. This mode has, besides, many particular inconveniences, which contribute to make it inadequate to our wants, and ineligible but as an auxiliary.
5thly. That, from the best estimates of the annual expense of the war and the annual revenues which these States are capable of affording, there is a large balance to be supplied by public credit. The resource of domestic loans is inconsiderable, because there are properly speak ing few moneyed men, and the few there are can employ their money more profitably otherwise ; added to which, the instability of the currency and the deficiency of funds have impaired the public credit.
6thly. That the patience of the army, from an almost uninterrupted series of complicated distress, is now nearly exhausted, and their discontents matured to an extremity, which has recently had very disagreeable consequences, and which demonstrates the absolute necessity of speedy relief, a relief not within the compass of our means. You are too well acquainted with all their sufferings for want of clothing, for want of provisions, for want of pay.
7thly. That, the people being dissatisfied with the mode of supporting the war, there is cause to apprehend, that evils actually felt in the prosecution may weaken those sentiments which began it, founded, not on immediate sufferings, but on a speculative apprehension of future sufferings from the loss of their liberties. There is danger, that a commercial and free people, little accustomed to heavy burthens, pressed by impositions of a new and odious kind, may not make a proper allowance for the necessity of the conjuncture, and may imagine they have only exchanged one tyranny for another.
8thly. That, from all the foregoing considerations result, 1st, absolute necessity of an immediate, ample, and efficacious succor in money, large enough to be a foundation for substantial arrangements of finance, to revive public credit, and give vigor to future operations ; 2dly, the vast importance of a decided effort of the allied arms on this continent, the ensuing campaign, to effectuate once for all the great objects of the alliance, the liberty and independence of these States. Without the first we may make a feeble and expiring effort the next campaign, in all probability the period to our opposition. With it, we should be in a condition to continue the war, as long as the obstinacy of the enemy might require. The former is essential to the latter; both combined would bring the contest to a glorious issue, crown the obligations, which America already feels to the magnanimity and generosity of her ally, and perpetuate the union by all the ties of gratitude and affection, as well as mutual advantage, which alone can render it solid and indissoluble.
9thly. That, next to a loan of money, a constant naval superiority on these coasts is the object most interesting. This would instantly reduce the enemy to a difficult defensive, and, by removing all prospect of extending their acquisitions, would take away the motives for prosecuting the war. Indeed, it is not to be conceived how they could subsist a large force in this country, if we had the command of the seas, to interrupt the regular transmission of supplies from Europe. This superiority, (with an aid in money,) would enable us to convert the war into a vigorous offensive. I say nothing of the advantages to the trade of both nations, nor how infinitely it would facilitate our supplies. With respect to us, it seems to be one of two deciding points ; and it appears, too, to be the interest of our allies, abstracted from the immediate benefits to this country, to transfer the naval war to America. The number of ports friendly to them, hostile to the British, the materials for repairing their disabled ships, the extensive supplies towards the subsistence of their fleet, are circumstances which would give them a palpable advantage in the contest of these seas.
10thly. That an additional succor in troops would be extremely desirable. Besides a reinforcement of numbers, the excellence of French troops, that perfect discipline and order in the corps already sent, which have so happily tended to improve the respect and confidence of the people for our allies, the conciliating disposition and the zeal for the service, which distinguish every rank, sure indications of lasting harmony, — all these considerations evince the immense utility of an accession of force to the corps now here. Correspondent with these motives, the enclosed minutes of a conference between their Excellencies the Count de Rochambeau, the Chevalier de Ternay, and myself will inform you, that an augmentation to fifteen thousand men was judged expedient for the next campaign ; and it has been signified to me, that an application has been made to the court of France to this effect. But if the sending so large a succor in troops should necessarily diminish the pecuniary aid, which our allies may be disposed to grant, it were preferable to diminish the aid in men ; for the same sum of money, which would transport from France and maintain here a body of troops with all the necessary apparatus, being put into our hands to be employed by us, would serve to give activity to a larger force within ourselves, and its influence would pervade the whole administration.
11thly. That no nation will have it more in its power to repay what it borrows than this. Our debts are hitherto small. The vast and valuable tracts of unlocated lands, the variety and fertility of climates and soils, the advantages of every kind which we possess for commerce, insure to this country a rapid advancement in population and prosperity, and a certainty, its independence being established, of redeeming in a short term of years the comparatively inconsiderable debts it may have occasion to contract.
That, notwithstanding the difficulties under which we labor, and the inquietudes prevailing among the people, there is still a fund of inclination and resource in the country, equal to great and continued exertions, provided we have it in our power to stop the progress of disgust, by changing the present system, and adopting another more consonant with the spirit of the nation, and more capable of activity and energy in public measures ; of which a powerful succor of money must be the basis. The people are discontented ; but it is with the feeble and oppressive mode of conducting the war, not with the war itself. They are not unwilling to contribute to its support, but they are unwilling to do it in a way that renders private property precarious ; a necessary consequence of the fluctuation of the national currency, and of the inability of government to perform its engagements oftentimes coercively made. A large majority are still firmly attached to the independence of these States, abhor a reunion with Great Britain, and are affectionate to the alliance with France ; but this disposition cannot supply the place of means customary and essential in war, nor can we rely on its duration amidst the perplexities, oppressions, and misfortunes, that attend the want of them.
George Washington, Writings (edited by Worthington Chauncey Ford, New York, etc., 1891), IX, 102-100
207. The State of the National Debt (1781)
This is a report made by a committee to Congress on April 18, 1781. It shows the bonded debt, French advances, certificates to contractors, outstanding claims, and the remnant of the paper money. The debt as here shown was honorably paid after 1789. The piece also illustrates the character of the records of Congress. — Bibliography as in Nos. 155, 185, 206 above.
THE committee, consisting of Mr. Duane, Mr. Sharpe, and Mr. Wolcott, appointed to estimate and state the amount of the debts due from the United States, with the necessary estimates for the current year, as near as can be done, in order that the same may be laid before the respective legislatures, report,
That they have attended to this business ; but from the unsettled condition of the publick accounts they can only give a general view of the publick debts.
By returns made to the board of treasury up to the 10th February, 1781, it appears that from the opening of the loan offices to the first day of March, 1778, there has been borrowed, the
| Dollars | Int. payable in bills on France | An. Interest. |
| sum of | 7,313,306 | 438, 7983910 |
| From last February, 1778, to dates of last returns, 53,245,130, valued at | 4,962,172 | 297,7302990 |
| Amount of the bills of exchange drawn on commissioners and ministers at the court of France, for payment of three years interest, | 1,316,394 | |
| Do. drawn on ministers at that and other courts for supplies, and to answer pressing emergencies on account of deficiency in the publick treasury | 2,165,578 | |
| Supplies by them purchased and sent over, for which |
| payment has not been made, and of which no exact returns have yet been obtained, together with expenses of commissioners and ministers abroad, estimated at | Dollars | An. Interest. | ||
| 1,518,028 | 6,000,000 | 360,000 | ||
| 18,275,478 | ||||
| Deduct for depreciation on money borrowed from 1st Sept. 1777, to 1st March, 1778 | 883,914 | |||
| Principal sum specie | 17,391,564 | An. Interest | 1,096,52823 | |
| Due to the army for pay and subsistence, up to the last of December, 1780, estimated | 1,000,000 | |||
| 18,391,564 | ||||
| Due to the civil officers of government | 98,927 | |||
| Besides the above, there are large debts contracted by the quartermaster and commissary, for part of which they have settled with the persons who have furnished the supplies, and given them certificates, bearing interest, viz: | ||||
| The late quartermaster has returned debts settled | 20,758,850 | |||
| Unsettled, (exchanging those contracted in North Carolina, South Carolina and Georgia) estimated at | 87,148,870 | |||
| The present quartermaster has not made returns ; but as it is well known that he has not been supplied with money, whatever exertions have been made or supplies furnished in that department must have been on credit. It is to be presumed that the debts by him contracted up to 1st Jan. 1781, amount in specie to | Dollars | 500,000 | ||||
| The commissary of purchases has made returns of debts due in his department amounting to | 11,3888,903 | |||||
| To this is to be added what yet remains of the old currency unredeemed, suppose | 160,000,000 | |||||
| To which maybe added for navy debts, &c., for debts due in the departments of the board, of the commissary general of military stores and the clothier general, estimated at | 10,702,377 | |||||
| Total in continental at 75 | ||||||
| for 1 | 230,000,000 is 3,066,66623 | |||||
| To which added the new money issued in lieu of the old which is called in and destroyed | 2,000,000 | |||||
| Total debts in specie | 24,057,15723 | |||||
Secret Journals of the Acts and Proceedings of Congress (Boston, 1821), I 189-194.
208. Not worth a Continental (1781)
BY WILLIAM PYNCHON
Pynchon was a Salem gentleman, a conspicuous member of the Essex bar, and not disposed to favor the Revolution. His diary gives an interesting picture of social and business life during the war. — Bibliography of Pynchon : Introduction to the Diary. — Bibliography of paper money: Henry Phillips, Paper Currency ; Winsor, Narrative and Critical History, VII, 13-15; Channing and Hart, Guide, §§ 142, 151.
[May, 1781] 18. FRIDAY. Cloudy. The continental currency, old emission, passeth no more here.
19. Saturday. Some take the old emission on pretence of patriotism. . . .
24. Thursday. Fair and cool. Exchange between old emission and silver is at 150 for one ; at Boston at 120 to 140 for one. The jurymen in the Maritime Court here yesterday refused to give in any more verdicts to the Court without an assurance that they shall be paid in new emission. So ! so ! so ! members of Congress, whither is your credit going? Down hill surely ; but they will bring it up with a heavy tax.
26. Saturday. Cloudy, but less cold than yesterday. It is said that Morris, the financier, hath reported to Congress in favour of hard-money currency.
27. Sunday. Clear, and wind S. and moderate. Soh ! soh ! The register, Pickering, says he is not at liberty to record Mr. Robie's mortgage deeds of his house and land, which he made for securing his creditors in England. Johnson comes in and says that Gibraltar is relieved by the English fleet. What ailed ye Powers and ye Fleets of the House of Bourbon that ye have been so often driven back by the English, — that all your attempts against Gibraltar have hitherto failed?
28. Monday. Fine, clear, and warm day. Exchange is now at 3 for one between hard money and new emission, and at . . . . for one between hard money and old emission.
29. Tuesday. A fine, warm day ; So. W. wind. Trade in Boston in great confusion, almost stagnated ; the credit of the new emission sunk 30 per ct. upon failure of the old in its credit ; all growl ; some rave and stamp ; others curse and swear, some at Congress, some at the General Court, some at Whiggs, others at Tories, — all at the French. The moderate Whiggs express their joy that Gibraltar is relieved and the siege raised ; they who trouble the waters first have seldom the benefit of fishing. 30. Wednesday. Election Day ; very dark and cloudy ; wind S. W. No public dinner, no parade; the most miserable procession ever seen. . . .
June 2. Saturday. Cloudy and moderate. The marketmen refuse bills of the old emission for provisions ; the jurymen refused it at the Maritime Court, here in open Court; the Judge declined to take it: and yet this is our established currency, established by law ! O Congress ! O legislators! O money-makers all! what ails ye? This day Sheriff Chandler took Carlton on a warrant from the Inferior Court against him for a riot in breaking windows, etc., at the rejoicings at the taking of Burgoyne ; he was carried to the town house, and a justice was sent for to bail him, but he departed, and left justice, sheriff, and all in the lurch ; threats were given out at the jail that if he was to be com mitted the jail would not stand long. Mark the end ! . . .
9. Saturday. A fine, pleasant day. We have a letter from Jno. at Cambridge ; his chum ill, and he unwell. Mr. Goodale and [Mr.] Ward from the G. Court. The Court had written to the Congress respecting the currency, and can do nothing about it before they have an answer. A few weeks ago, who even held paper money not to be as good as silver were called Tories, enemies to the country. . . .
July 1. Sunday. A fine, warm day. Mr. Winthrop and Stewart and co. here. The General Court sit all this day, as we hear, upon matters of great importance, and relating to congress at Vienna, proceedings as to peace, etc. Last evening Mr. Ford was buried in the churchyard. Mr. Barnard prayed at his house and attended at the funeral ; the bearers were all dissenters, as I remember. . . .
8. Sunday. Very hot last night ; slept all hands with windows open, my honoured self on the floor. Mr. Higginson from Boston says that the bills of the new emission are to pass in payment of taxes at 178 paper for one silver dollar, or 11s. 3d. paper for six shillings in silver, and that the old emission passeth no more, not even for payment of taxes. . . .
16. Monday. Town meeting to raise more men, about ninety in all. Rumour that Gen'l Lee of Virginia is gone over to the Regulars. Church meeting adjourned to September 17th. . . .
20. Friday. We return to Salem with Mrs. Mason, and find neighbour Satchel greatly disturbed about his new chaise, which he lent me, Foster not having procured him one to ride with in my absence ; neither money nor concessions appease his piratical ire. From purse-pride, good Lord, deliver me, — and my prayer is answered. 21. Saturday. Fair day. A wine prize to Grand Turk comes in; paper money, new emission, goes fast down hill. . . .
24. Tuesday. A fine day. The market people will not take any paper money for provisions. . . .
31. Tuesday. Cloudy morning. I return by half past eight o'clock from Maiden, and breakfast at Salem. Continental bills, whither is your credit flown? And where the credit of your makers and creators? "Oh !" says Dr. C., "they have answered well the purposes of their creation : they have supported the army for some years, and it is time for them to rest, being of no more service." O pious doctor, rare Dr. C. ! when fraud and deceit can no longer prevail, let them be laid aside as useless. . . .
[August] 9. Thursday. A fine, cool morning ; very warm at noon. Dine at the Fort on turtle, — about four persons ; Professor Williams, Mr. Barnard, Mr. Hopkins, and Dr. Whitaker, the latter by far the strongest man ; he seized Esquire Blaney and took him up on his shoulders and laid him flat on his back in a masterly manner, to the entertainment of his parishioners. "Aye," says T. Mason, "the doctor is fit for anything ; he would have made as stout a sailor as any in the town of Salem ; he is a smart man, and fit for any business ; he made as good an agent for the privateers as ever was." At about five o'clock we sit down to dinner.
10. Friday. A fine, cool morning. I returned to Mr. Oliver the dollar which I borrowed of him at the Fort.
12. Sunday. Fair and warm. Mrs. Orne and her maid Landor come.
13. Monday. Fair and cool. News that Mrs. Fairfield's son died in the prison ship at New York. Three more privateers are taken and carried to Halifax. Mrs. Cabot makes her will ; in it gives Titus, her negro, ₤40 and his freedom in case he shall continue in her service henceforth till her death. Titus cares not, as he gets money apace, being one of the agents for some of the privateersmen, and wears cloth shoes, ruffled shirts, silk breeches and stockings, and dances minuets at Commencement ; it is said he has made more profits as agent than Mr. Ansil Alcock or Dr. Whitaker by their agencies. A plentiful rain last night.
William Pynchon, Diary (edited by Fitch Edward Oliver, Boston, etc., 1890), 95-103 passim.
209. The Federal Arch Completed (1781)
This brief newspaper item sets forth the completion of the Articles of Confederation by the signature of Maryland on March I, 1781. — For the formation of the Articles, see above, Nos. 189, 205.
MARCH 1 [1781]. — This day will be memorable in the annals of America to the last posterity, for the final ratification in Congress of the articles of confederation and perpetual union between the States. This great event, which will confound our enemies, fortify us against their arts of seduction, and frustrate their plans of division, was announced to the public at twelve o'clock, under the discharge of the artillery on the land and the cannon of the shipping in the Delaware. The bells were rung, and every manifestation of joy shown on this occasion. The Ariel frigate, commanded by the gallant Paul Jones, fired a feu de joie, and was beautifully decorated with a variety of streamers in the day, and ornamented with a brilliant appearance of lights in the night.
At two o'clock in the afternoon his Excellency the president of Congress received the congratulations of the legislative and executive bodies of Pennsylvania, of the civil and military officers, and many of the principal citizens, who partook of a collation provided on this happy occasion. The evening was ushered in by an elegant exhibition of fireworks.
Thus has the union, began by necessity, been indissolubly cemented. Thus America, (like a well-constructed arch, whose parts harmonizing and mutually supporting each other, are the more closely united the greater the pressure upon them,) is growing up in war into greatness and consequence among the nations. But Britain s boasted wealth and grandeur are crumbling to pieces, never to be again united. Her empire of the ocean is dividing among her insulted neighbors ; and if she persists in her present self-destroying system, there will be a time when scarcely a monument of her former glory will remain. The fragments of her empire, and its history, will then be of little other use to mankind, but like a landmark to warn against the shoals and rocks on which her political navigators had shipwrecked that infatuated nation.
Pennsylvania Packet, March 3, 1781 ; reprinted in Frank Moore, Diary of the American Revolution (New York, etc., 1860), II, 390-391.
210. The Bank of North America (1782)
This piece is a circular sent out by the head of the treasury to the governors of the states. The bank was one of Morris s favorite devices for strengthening the credit of the United States.— For Morris, see No. 194 above. — Bibliography of the bank : Winsor, Narrative and Critical History, VII, 81; W. G. Sumner, Financier and Finances ; Channing and Hart, Guide, § 142.
Office of Finance, January 8th, 1782. . . .
I HAVE the honor to transmit herewith an ordinance passed by the United States in Congress assembled the 31st day of December, 1781, incorporating the subscribers of the Bank of North America, together with sundry resolutions recommending to the several States to pass such laws as they may judge necessary for giving the said ordinance its full operation. The resolutions of the 26th of May last speak so clearly to the points necessary to be established by those laws, that I need not enlarge on them. Should anything more be found necessary upon experience, the President and Directors will no doubt make suitable applications to Congress, or to the States respectively, as the case may require.
It affords me great satisfaction to inform you that this Bank commenced its operations yesterday, and I am confident that with proper management, it will answer the most sanguine expectations of those who befriend the institution. It will facilitate the management of the finances of the United States. The several States may, when their respective necessities require, and the abilities of the bank will permit, derive occasional advantages and accommodations from it. It will afford to the individuals of all the States a medium for their intercourse with each other, and for the payment of taxes more convenient than the precious metals, and equally safe. It will have a tendency to increase both the internal and external commerce of North America, and undoubtedly will be infinitely useful to all the traders of every State in the Union, provided, as I have already said, it is conducted on principles of equity, justice, prudence, and economy. The present directors bear characters, which cannot fail to inspire confidence, and as the corporation is amenable to the laws, power can neither sanctify any improper conduct, nor protect the guilty. . . .
Jared Sparks, editor, The Diplomatic Correspondence of the American Revolution (Boston, 1830), XII, 76-77.