Prefatory note

DEAR SIR,

TO THOMAS JEFFERSON.

Philadelphia, November 18, 1781.

By the conveyance through which you will receive this, the Delegates have communicated to the State the proceedings in Congress to which the territorial cessions have given birth. The complexion of them will, I suppose, be somewhat unexpected, and produce no small irritation. They clearly speak the hostile machinations of some of the States against our territorial claims, and afford suspicions that the predominant temper of Congress may coincide with them. It is proper to recollect, however, that the report of the Committee having not yet been taken into consideration, no certain inference can be drawn as to its issue; and that the report itself is not founded on the obnoxious doctrine of an inherent right in the United States to the territory in question, but on the expediency of clothing them with the title of New York, which is supposed to be maintainable against all others. It is proper also to be considered, that the proceedings of the Committee, which we labored in vain to arrest, were vindicated not by the pretext of a jurisdiction belonging to Congress in such cases, but alleged to have been made necessary by the conditions annexed to the cession of Virginia. Although the cession of Virginia will probably be rejected, on the whole, I do not think it probable that all the principles and positions contained in the report of the Committee will be ratified. The Committee was composed of a member from Maryland, Pennsylvania, New Jersey, Rhode

Island and New Hampshire; all of which States, except the last, are systematically and notoriously adverse to the claims of Western Territory, and particularly those of Virginia. The opinion of the Committee is therefore no just index of the opinion of Congress; and it is a rule observed since the Confederation was completed, that seven States are requisite in any question, and there are seldom more than seven, eight, nine or ten States present; even the opinion of a majority of Congress is a very different thing from a constitutional vote. I mention these particulars, that you may be the better able to counteract any intemperate measures that may be urged in the Legislature. If the State wishes any particular steps to be pursued by the Delegates, it would be well for particular instructions to that effect to be given. These will not only be a guide to us, but will give greater weight to whatever is urged by us.

I enclose you a paper containing two of the many letters lately published in New York, with the subscription of Mr. Deane's name. The genuineness of some of them, and particularly that to Mr. Morris, is generally doubted. There are some who think the whole of them spurious. However this may be, there is, through another channel, indubitable proof that no injustice is done in ascribing to him the sentiments advanced in these letters. Either from pique, interested projects of trade, or a traitorous correspondence with the enemy, he has certainly apostatized from his first principles.

TO EDMUND PENDLETON.

DEAR SIR,

Philadelphia, January 8, 1782.

Yesterday was opened, for the first time, the Bank instituted under the auspices of Congress. Its principal founder is Mr. Robert Morris, who has certain prerogatives with respect to it in his quality of Superintendent of Finance. It is pretty analogous in its principles to the Bank of England. The stock subscribed is 400,000 dollars. When the scheme was originally proposed to Congress for their approbation and patronage, a promise was given that as soon as it was ripe for operation the company should be incorporated. A few days ago the fulfilment of the promise was claimed." The competency of Congress to such an act had been called in question in the first instance; but the subject not lying in so near and distinct a view, the objections did not prevail. On the last occasion, the general opinion, though with some exceptions, was, that the Confederation gave no such power, and that the exercise of it would not bear the test of a forensic disquisition, and consequently would not avail the Institution. The Bank, however, supposing that such a sanction from Congress would at least give it a dignity and pre-eminence in the public opinion, urged the engagement of Congress; that on this engagement the subscriptions had been made, and that a disappointment would leave the subscribers free to withdraw their names. These considerations were re-inforced by the Superintendent of Finance, who relied on this

Institution as a great auxiliary to his department; and, in particular, expected aid from it in a payment he is exerting himself to make to the army. The immediate interposition of Congress was rendered the more essential, too, by the sudden adjournment of the Assembly of this State, to whom the Bank might have been referred for the desired incorporation, which, it was the opinion of many, would have given them a sufficient legal existence in every State. You will conceive the dilemma in which these circumstances placed the members who felt on one side the importance of the Institution, and on the other a want of power, and an aversion to assume it. Something like a middle way finally produced an acquiescing, rather than an affirmative, vote. charter of incorporation was granted, with a recommendation to the States to give it all the necessary validity within their respective jurisdictions. this is a tacit admission of a defect of power, I hope it will be an antidote against the poisonous tendency of precedents of usurpation.

In the ordinance lately passed for regulating captures, which I presume you have seen, a clause was inserted exposing to capture all merchandizes produced in Great Britain, if coming into these States, and within three leagues of the coast, although the property of a neutral nation. Congress have now recommended to the States to subject them to seizure, during the war, if found on land within their respective limits. These measures had become necessary to check an evil which was every day increasing, and which both enabled and encouraged Great Britain to persevere in the war, at the same VOL. I.-7*

TO EDMUND PENDLETON.

the

DEAR SIR,

Philadelphia

Yesterday was opened, for the first instituted under the auspices of Con cipal founder is Mr. Robert Morris, prerogatives with respect to it in perintendent of Finance.

It is r
F

its principles to the Bank of Er
subscribed is 400,000 dollars.
was originally proposed to Cor
bation and patronage, a pron
soon as it was ripe for operati
be incorporated. A few da
the promise was claimed.to'
gress to such an act had b
the first instance; but th
near and distinct a view,
vail.

On the last occa though with some excep ration gave no such pov it would not bear the t and consequently wo The Bank, however, s

from Congress would pre-eminence in the ment of Congress; tl scriptions had been 1 would leave the sub

names.

These con

the Superintendent