Chapter V

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CHAPTER V.

A PLAN TO FORCE A STRONGER GOVERNMENT.

January -- March, 1783.

 

Page 76

In the fall of 1782 the main army was moved for winter quarters to the wooded hills in the rear of Newburg. No part of the community had undergone equal hardships or borne them with equal fortitude. In the leisure of the camp they brooded over their wrongs and their chances of redress, and at the close of the year the officers sent to Philadelphia as their committee Major-General Macdougall and Colonels Ogden and Brooks, who, on the sixth of January, 1783, presented the following address: [1]

"To the United States in congress assembled: We, the officers of the army of the United States, in behalf of ourselves and our brethren the soldiers, beg leave freely to state to the supreme power, our head and sovereign, the distress under which we labor. Our embarrassments thicken so fast that many of us are unable to go further. Shadows have been offered to us, while the substance has been gleaned by others.

Chap.
V.
1782.

 

 

 

1783.
Jan.
6.


1.  Journals of Congress, iv. 206.


The citizens murmur at the greatness of their taxes, and no part reaches the army. We have borne all that men can bear. Our property is expended; our private resources are at an end. We therefore beg that a supply of money may be forwarded to the army as soon as possible.

"The uneasiness of the soldiers for want of pay is great and dangerous; further experiments on their patience may have fatal effects. There is a balance due upon the account for retained rations, forage, and arrearages on the score of clothing. Whenever there has been a want of means, defect in system, or neglect in execution, we have invariably been the sufferers by hunger and nakenness and languishing in a hospital. We beg leave to urge an immediate adjustment of all dues.

"We see with chagrin the odious point of view in which too many of the states endeavor to place men entitled to half-pay. For the honor of human nature we hope that there are none so hardened in the sin of ingratitude as to deny the justice of the reward. To prevent altercations, we are willing to commute the half-pay pledged. And in this we pray that the disabled officers and soldiers, with the widows and orphans of those who have expended, or may expend, their lives in the service of their country, may be fully comprehended.

"General dissatisfaction is gaining ground in the army, from evils and injuries which, in the course of seven long years, have made their condition in many instances wretched. They therefore entreat that congress, to convince the army and the world that the


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1783.
Jan.
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independence of America shall not be placed on the ruin of any particular class of her citizens, will point out a mode for immediate redress."

The grand committee to whome the memorial was referred held a conference with the superintendent of finance. He declared peremptorily that it was impossible, in the present state of the finances, to make any payment to the army, and that it would be imprudent to give assurances with regard to future pay until funds that could be relied upon should be established. [1] Not only had he no money in hand, but he had overdrawn his account in Europe to the amount of three and a half millions of livres. [2] He therefore asked a decision on teh expediency of staking the public credit on further drafts to be met by the contingent proceeds of a loan from the Dutch and by the friendship of France. On the tenth of January, [3] congress, under an injunction of secrecy, authorized the superintendent to draw bills on the credit of applications for loans in Europe. Dyer of Connecticut alone opposed the measure as unwarranted and dishonorable, but allowed the resolution to be entered as unanimous. [4]

In an interview with the grand committee on the evening of the thirteenth, [5] the deputies from the army explained that, without an immediate payment of some part of the overdue pay, the discontent alike of officers and soldiers could not be soothed; that a mutiny might ensue; and that it would be hard to punish soldiers for a breach of engagements to the

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1783.
Jan.

 

 

 

 

 

 

10.

 

 

 

13.

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1.  Gilpin, 248, 249; Elliot, 21.
2.  Gilpin, 251; Elliot, 21.
3.  Secret Journals of Congress, i. 253.

4. Gilpin, 252; and compare Wilson, ibid., 299. Elliot, 22, 38.
5.  Gilpin, 256, 257; Elliot, 23.

public which the public itself had already flagrantly broken. "The army," said Macdougall, "is verging to that state which, we are told, will make a wise man mad." It was a source of irritation that the members of the legislatures never adjourned till they had paid themselves fully, that all on the civil lists regularly received their salaries, and that all on the military lists were as regularly left unpaid. [1]

The deputies animadverted with surprise and even indignation on the repugnance of some of the states to establish a federal revenue for discharging federal engagements, while the affluence of the people indicated adequate resources. Speaking with peculiar emphasis and making a strong impression by his manner, general Macdougall declared "that the most intelligent part of the army were deeply touched by the debility of the federal government and the unwillingness of the states to invigorate it; in case of its dissolution, the benefits expected from the revolution would be greatly impaired; and the contests which might ensue among the states would be sure to embroil their respective officers." [2] As to the half-pay for life, they complained that men who had not received a shilling of emoluments were artfully called pensioners.

Hamilton had for himself renounced the half-pay. [3] The grand committee, in their report which he drafted, advised some payment to the army as soon as possible; for the rest, they were to have no priority


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1783.
Jan.
13.


Page 79


1.  Gilpin, 258; Elliot, 24; and compare Washington to Joseph Jones, 14 Dec., 1782, Sparks, viii. 370.

2.  Gilpin, 258, 259; Elliot, 24.
3.  Hamilton to Washington, 1 March, 1782. Hamilton, i. 274.

over other creditors; all were to wait alike for the funding of the whole debt of the United States by general revenues. The officers were to have the option of preserving their claim to half-pay as it then stood, or accepting a commutation. [1]

"A great majority of the members of congress," avowed Robert Morris, "will not adopt the necessary measures because they are afraid of offending their states;" [2] and he undertook to drive them to decisive action. Accordingly, on the twenty-fourth, the day on which the report was taken up, he sent to them his resignation of office in these words: "The funding the public debts on solid revenues, I fear, will never be made. If before the end of May effectual measures to make permanent provision for the public debts of every kind are not taken, congress will be pleased to appoint some other man to be the superintendent of their finances: I will never be the minister of injustice." [3] The design of Robert Morris required the immediate publication of his letter, that, by uniting the army with all other creditors, congress and the states might be coerced into an efficient system; but congress reasoned that this authoritative statement of the financial ruin of the country would encourage the enemy, annihilate foreign and domestic credit, and provoke the army to mutiny. They therefore placed the communication under the injunction of secrecy. [4]

Resuming the consideration of the report of their


Chap.
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1783.
Jan.

 

 

  
24.

 

 

 

 

 

 

 

 

 

25.


Page 80


1.  Gilpin, 276, 277; Elliot, 29. 30.
2.  Morris to Washington, 27 Feb., 1783. Dip. Cor., xii. 328.

3.  Morris to Washington, 27 Feb., 1783. Dip. Cor., xii. 326.
4.  Dip. Cor., xii. 325, 327, 328. Gilpin, 274, 275; Elliot, 29.
grand committee on the memorial from the army, they referred a present payment to the discretion of the superintendent of finance; [1] and, on the fifth of February, he issued a warrant, out of which the officers received one month's pay in notes and the private soldiers one month's pay in weekly instalments of half a dollar. [2]

The annual amount of the half-pay promised to the officers for life was nearly five hundred thousand dollars. The validity of the engagement was questioned. The grant was disliked by the common soldiers; it found no favor in the legislature of Massachusetts; the delegates of Connecticut and Rhode Island were instructed to oppose it altogether. To avoid defeat, this article was laid over till there should be a fuller representation. [3] Delegates from the states in which the domestic debt was chiefly held, hoped for efficient co-operation from the army. [4] Here came to light a great difference of interests. Pennsylvania was the largest creditor; Massachusetts ranked next; Georgia and South Carolina were the lowest; Virginia was but the ninth, holding less than New Hampshire and not half so much as Rhode Island. The zeal for the equal support of all classes of public creditors culminated in those states whose citizens originally owned nearly four times as much as those of all the six southern states, and by transfers were constantly acquiring more. [5]

Chap.
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1783.

Page 81


1.  Journals of Congress, iv. 152.
2.  Report of the deputies in Sparks, viii. 552. The amount of this one month's pay was 253,232.86 dollars. Old account-books in

Treasury dept. Wast-book D, Ledger B. MS.
3.  Gilpin, 281, 321; Elliot, 31, 45.
4.  Gilpin, 350; Elliot, 55.
5.  Gilpin, 364, note; Elliot, 60.
Adopting unanimously a resolution which Hamilton had prepared, congress pledged itself to consider immediately the most likely mode of obtaining revenues adequate to the funding of the whole debt of the United States. [1] Encouraged by this seeming heartiness, Wilson of Pennsylvania, on the twenty-seventh, spoke for something more than a "form of words," and proposed "the establishment of general funds to be collected by congress." [2] To the dismay of the friends of a general revenue, Theodorick Bland of Virginia interposed and officially presented the act of his state repealing the grant of the impost, and a resolution of both its houses declaring its present inability to pay more than fifty thousand punds Virginia currency toward the demands of congress for 1782. [3]

The debate, nevertheless, went on. Gorham of Massachusetts suggested polls and commerce as most proper objects of taxation. Hamilton, discussing the subject in a comprehensive manner, spoke for permanent sources of revenue which should extend uniformly throughout the United States, and be collected by the authority of congress. Dyer strongly disliked the appointment of collectors by congress; the states would never consent to it. Ramsay of South Carolina supported Gorham and Hamilton. Again Bland placed himself in the way, saying: "The states are so averse to a general revenue in the hands of congress that, even if it were proper, it is unattainable." He

Chap.
V.
1783.
Jan.
27.

Page 82


1.  Gilpin, 277, 280; Elliot, 30, 31.
2.  Gilpin, 282, 285; Elliot, 32.
3.  Resolution of 28 Dec.,

1782, in Journal of the House of Delegates, pp. 80, 90.

therefore advised congress to pursue the rule of the confederation and ground requisitions on an actual valuation of houses and lands in the several states.

At this stage of the discussion, an efficient reply could be made only by one who was of Virginia. To Randolph, then in Richmond, Madison had already written: "Virgina could never have cut off the impost at a more unlucky crisis than when she is protesting her inabililty to comply with the continental requisitions. Congress cannot abandon the plan as long as there is a spark of hope. Nay, other plans on a like principle must be added. Justice, gratitude, our reputation abroad and our tranquility at home, require provision for a debt of not less than fifty millions of dollars; and this provision will not be adequately met by separate acts of the states. If there are not revenue laws which operate at the same time through all the states, and are exempt from the control of each, mutual jealousies will assuredly defraud both our foreign and domestic creditors of their just claims." [1]

Madison, one the twenty-eighth, presented a milder form of the resolution for a general revenue. Arthur Lee lost no time in confronting his collegue: "The states will never consent to a uniform tax, because it will be unequal; is repugnant to the articles of confederation; and, by placing the purse in the same hands with the sword, subverts the fundamental principles of liberty." Wilson explained: The articles of confederation have expressly provided


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1783.
Jan.

 

 

 

 

 

 

 

 

  
28.


Page 83


1.  Madison to Randolph, 22 Jan., 1783, in Gilpin, 111. The date is

given as of 1782 by an obvious error.

for amendments; there is more of a centrifugal than centripetal force in the states; the funding of a common debt would invigorate the union. Ellsworth despaired of a continental revenue; condemned periodical requisitions from congress as inadequate; and inclined to the trial of permanent state funds. In reply, Hamilton showed that state funds would meet with even greater obstacles than a general revenue; but he lost the sympathy of the house by adding that the influence of federal collectors would assist in giving energy to the federal government. Rutledge thought that the prejudices of the people were opposed to a general tax, and seemed disinclined to it himself. Williamson was of opinion that continental funds, though desirable, were unattainable.

"The idea," said Madison, "of erecting our national independence on the ruins of public faith and national honor must be horrid to every mind which retains either honesty or pride. Is a continental revenue indispensably necessary for doing complete justice to the public creditors? This is the question.

"A punctual compliance by thirteen independent governments with periodical demands of money from congress can never be reckoned upon with certainty. The articles of confederation authorize congress to borrow money. To borrow money, permanent and certain provision is necessary; and, as this cannot be made in any other way, a general revenue is within the spirit of the confederation. Congress are already invested by the states with constitutional authority over the purse as well as the sword. A general reve-


Chap.
V.
1783.
Jan.
28.


Page 84

nue would only give this authority a more certain and equal efficacy.

"The necessity and reasonableness of a general revenue have been gaining ground among the states. I am aware that one exception ought to be made. The state of Virginia, as appears by an act yesterday laid before congress, has withdrawn its assent once given to the scheme. This circumstance cannot but embarrass a representative of that state advocating it; one, too, whose principles are extremely unfavorable to a disregard of the sense of constituents. But, though the delegates who compose congress more immediately represent and are amenable to the states from which they come, yet they owe a fidelity to the collective interests of the whole. The part I take is the more fully justified to my own mind by my thorough persuasion that, with the same knowledge of public affairs which my station commands, the legislature of Virginia would not have repealed the law in favor of the impost, and would even now rescind the repeal."

On the following day, the proposition of Wilson and Madison, with slight amendments, passed the committee of the whole without opposition. On the twelfth of February, it was adopted in congress by seven states in the affirmative, and without the negative of any state.

For methods of revenue, the choice of Madison [1] was an impost, a poll-tax which should rate blacks somewhat lower than whites, and a moderate land-tax. To these, Wilson wished to add a duty on salt

Chap.
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1783.
Jan.
28.

 

 

 

 

 

 

 

 

  
29.

Page 85


1.  Gilpin, 300; Elliot, 38.


and an excise on wine, imported spirits, and coffee. [1] Hamilton, who held the attempt at a land-tax to be futile and impossible, suggested a house- and window- tax. [2] Wolcott [3] of Connecticut thought requisitions should be in proportion to the population of each state; but was willing to include in the enumeration those only of the blacks who were within sixteen and sixty years of age.

The public mind was ripening for a transition from a confederation to a real government. Just at this time Pelatiah Webster, a graduate of Yale college, in a dissertation published at Philadelphia, [4] proposed for the legislature of the United States a congress of two houses which should have ample authority for making laws "of general necessity and utility," and enforcing them as well on individuals as on states. he further suggested not only heads of executive departments, but judges of law and chancery. The tract awakened so much attention that it was reprinted in hartford, and called forth a reply.

These speculations offered only a remote solution of the difficulties under which the confederation was sinking. How the united demand of all public creditors could wrest immediately from congress and the states the grant of a general revenue and power for its collection employed the thoughts of Robert Morris and his friends. On Christmas eve, 1781, Gouverneur Morris, the assistant financier, had written to


Chap.
V.
1783.
Feb.


Page 86


1.  Gilpin, 304-306; Elliot, 39, 40.
2.  Gilpin, 300; Elliot, 38.
3.  Gilpin, 331; Elliot, 48.
4.  A Dissertation on the Political Union and Constitution of the

thirteen United States of North America, written 16 Feb., 1783. In Pelatiah Webster's Political Essays, p. 228.

Greene: "I have no expectation that the government will acquire force; and no hope that our union can subsist, except in the form of an absolute monarchy, and this does not seem to consist with the taste and temper of the people." [1] To Jay, in January, 1783, [2] he wrote: "The army have swords in their hands. Good will arise from the situation to which we are hastening; much cnvulsion will probably ensue, yet it must terminate in giving to government that power without which government is but a name."

Hamilton held it as certain that the army had secretly determined not to lay down their arms until due provision and a satisfactory prospect should be afforded on the subject of their pay; that the commander was already become extremely unpopular among all ranks from his known dislike to every unlawful proceeding; but, as from his virtue, his patriotism, and firmness, he would sooner suffer himself to be cut in pieces than yield to disloyal plans, Hamilton wished him to be the "conductor of the army in their plans for redress," to the exclusion of a leader like Horatio Gates. [3]

With these convictions and with exceeding caution, he, on the seventh of February, addressed himself directly to Washington in a letter, of which Brooks, on his return to the camp, was the bearer. "Congress," so he wrote, "is a body not governed by reason or foresight, but by circumstances. Appearances afford too much ground for a prevailing opinion


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1783.

 

 

 

 

 

 

 

 

 

 

Feb.
7.


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1.  Gouverneur Morris to General Greene, 24 Dec., 1781. Sparks' Life of G. Morris, i. 240.

2.  Gouverneur Morris to John Jay, Jan., 1783. Sparks' Life of Morris, i. 249.
3.  Gilpin, 350, 351; Elliot, 55.

in the army, that, if they once lay down their arms, they part with the means of obtaining justice. Their claims, urged with moderation but with firmness, may operate on those weak minds which are influenced by their apprehensions more than by their judgements, so as to produce a concurrence in the measures which the exigencies of affairs demand. To restore public credit is the object of all men of sense; in this the influence of the army, properly directed, may co-operate." And he invited Washington to make use of General Knox, [1] to whom Gouverneur Morris wrote on the same day and by the same channel.

To ensure the concerted action of the southern army, Gouverneur Morris wrote privately to Greene: "The main army will not easily forego their expectations. Their murmurs, though not loud, are deep. If the army, in common with all other public creditors, insist on the grant of general, permanent funds for liquidating all the public debts, there can be little doubt that such revenues will be obtained, and will afford to every order of public creditors a solid security. With the due exception of miracles, there is no probability that the states will ever make such grants unless the army be united and determined in the pursuit of it, and unless they be firmly supported by and as firmly support the other creditors. That this may happen must be the entire wish of every intelligently just man and of every real friend to our glorious revolution." [3]


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1783.
Feb.
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15.


Page 88


1.  Hamilton to Washington, 7 Feb., 1783. Hamilton, i. 327.
2. Gouverneur Morris to General

Greene, 15 Feb., 1783. Sparks' Life of G. Morris, i. 250.

The letter of Gouverneur Morris to knox, which was in reality designed to be a communication through Knox to Washington, cannot be found. it evidently expressed the opinion that the army might be made to co-operate in bringing about a closer union of the states and a stronger government. The answer of Knox expresses the advice of Washington: "The army are good patriots, and would forward everything that would tend to produce union and a permanent general constitution; but they are yet to be taught how their influence is to effect this matter. A 'hoop to the barrel' is their favorite toast. America will have fought and bled to little purpose, if the powers of government shall be insufficient to preserve the peace, and this must be the case without general funds. As the present constitution is so defective, why do not you great men call the people together and tell them so -- that is, to have a convention of the states to form a better constitution? This appears to us, who have a superficial view only, to be the most efficacious remedy." [1]

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Feb.

  
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1.  Knox to G. Morris, 21 Feb., 1783, in Sparks' Life of G. Morris, i. 256. That the commander-in-chief and Knox consulted together appears, among other reasons, from these: -- they cherished the most affectionate relations to each other; Hamilton on this occasion referred Washington to Knox: The words "America will have fought and bled to little purpose" are substantially words which Washington used to Hamilton, to Harrison the governor of Virgina, to Arthur Lee, to Gordon the historian, and to others; Knox says, "the present

constitution is so defective," Washington, "the great defect of our constitution." Knox writes to bid Morris address the people, and so does Washington to Hamilton; Knox, as if announcing Washington's opinion, writes, "to us who have a superficial view only," and Washington complains to Hamilton of the want of information from Congress of the political and pecuniary state of affairs; Knox stands at the side of Washington in all that follows at Newburg. Compare Washington to Bland, 4 April, 1783. MS.

On the thirteenth of February the speech of the king of Great Britain, at the opening of parliament in December, was received. His announcement of provisional articles of peace with the United States produced great joy; yet that joy was clouded by apprehensions from the impossibility of meeting the just claims of the army. [1]

Congress was brought no nearer to decisive action. Hamilton proposed that the doors of congress should be thrown wide open whenever the finances were under discussion, though the proposal, had it been accepted, would have filled the galleries with holders of certificates of the public debt. [2]

On the other side, Rutledge again and again moved that the proceeds of the impost should be appropriated exclusively to the army, but was supported only by his own state. Ruffled by his indifference to the civil creditors, Wilson had one day answered with warmth: "Pennsylvania will take her own measures without regard to those of congress, and she ought to do so. She is willing to sink or swim according to the common fate; but she will not suffer herself, with a millstone of six millions of the continental debt, to go to the bottom alone." [3] The weakness of the friends of a general revenue appeared from their consenting to leave to the several states the appointment of the collectors of taxes, and to limit the grant of the impost to twenty-five years. [4]

Once more, Mercer and Arthur Lee renewed their war upon Madison, who in reply made a convincing


Chap.
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1783.
Feb.
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18.


Page 90


1.  Gilpin, 336; Elliot, 50.
2.  Gilpin, 341; Elliot, 52.

3.  Gilpin, 314; Elliot, 43.
4.  Gilpin, 347, 348; Elliot, 54.

plea for the necessity of a permanent general revenue. "The purse," repeated Arthur Lee, "ought never to be put in the same hand with the sword. I will be explicit; I would rather see congress a rope of sand than a rod of iron. Virginia ought not to concur in granting to congress a permanent revenue." "If the federal compact is such as has been represented," said Mercer, "I will immediately withdraw from congress, and do everything in my power to destroy its existence." Chafed by these expressions, Gorham of Massachusetts cried out: "The sooner this is known the better, that some of the states may form other confederacies adequate to their safety." [1]

The assiduous labors of congress for two months had failed to devise the means for restoring public credit. In February some of its members thought the time had arrived when order and credit could come from the demands of the army supported by its strength. Robert Morris extorted from congress a removal of the injunction of secrecy on his letter of resignation, and forthwith sent a copy of it not only to Washington but to the public press, through which it immediately reached the army."


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1783.
Feb.
21.


Page 91


1.  Gilpin, 357, 511; Elliot, 57.