Title: Report on the Petition of Catharine Greene, 26 December 1791
From: Hamilton, Alexander
To: Speaker of the House of Representatives

[Philadelphia, December 26, 1791Communicated on December 26, 1791]
[To the Speaker of the House of Representatives]

The Secretary of the Treasury, to whom was referred a petition of Catharine Greene, of the 4th of March 1790, respectfully submits the following report thereupon.
The said petition seeks to obtain an indemnification from the United States, against the effects of certain engagements which were entered into by the now deceased husband of the petitioner, the late Major General Nathaniel Greene, while commanding officer in the southern department; and, for the circumstances, on which it is founded, refers to a representation of the 22d: of August 1785, which was made by the said General Greene, to the United States in Congress assembled; a copy of which representation, marked A, is herewith transmitted.
The following are the principal facts, which appear in relation to this application.
1. The department of War, in the fall of the year 1782, authorised the said Major General Greene, to obtain supplies of clothing for the troops under his command.
2. In consequence of this authority, in November or December of the same year, he entered into a contract, for the supply of clothing to the Army, with John Banks, a partner in the house of Hunter, Banks and Company, who contracted on behalf of the Company; and, upon account of the contract, advanced him eleven hundred guineas in money, and drew Bills upon the Superintendant of Finance for the residue. This transaction was duly notified to the department of War, and received the approbation of that department.
3. The goods for completing this contract were purchased on credit, by the contractors, from certain British merchants then in Charleston.
4. About the same period, the Superintendant of Finance empowered General Greene to contract for the supply of all such provisions as might be wanted for the use of the army in the States of North and South Carolina and Georgia, with permission, if more convenient to him, to commit the execution of the business to Edward Carrington, esquire, to whom it was accordingly committed.
5. An engagement, which had been taken by the State of South Carolina, for the supply of the army, was to expire at the end of the year 1782. It became urgent to complete a contract for the supply after that period. Advertisements for receiving proposals were published; and particular applications were made by General Greene, to sundry characters of property and influence, who had been formerly men of business, to endeavor to engage them to enter into a competition for the contract. But these efforts did not produce the desired effect; owing, partly to the distressed and deranged situation of the country, and partly to the then state of public credit. No offer was made, except by the same John Banks, who was the contractor for supplying the troops with clothing, acting on behalf of the same copartnership of Hunter, Banks and Company. The terms, proposed by him, being thought too disadvantageous, were not accepted, in the first instance. The State of South Carolina having consented to extend it’s measures for supplying the army, to the 20th of February following, advantage was taken of the extension, to endeavor to procure better terms. A conclusion was delayed, to give a farther opportunity for other offers, and negociations were carried on with Mr. Banks, to induce him to moderate his terms. He fell somewhat in his demands, but as they still continued to be thought too high, General Greene would not suffer a contract to be concluded, till every possible effort to obtain more favorable terms had failed. As a last expedient for this purpose, a letter was written by the said Edward Carrington, to the Speaker of the House of Representatives of South Carolina, stating the then situation of the business, and asking, through him, the opinion of the House, whether there was a probability of obtaining, from any part of the country, more advantageous terms, and whether it would be advisable, in the expectation of such an event, to keep open the contract, for any longer period. It appears to have been an object of this letter, through the medium of that body, to excite, if possible, some farther competition. But the end was not answered. The Speaker, in his reply, states, that no competition had been excited, in consequence of it, and that, though the terms, proposed by Banks, were thought too high, yet, as no other proposals had been made, and as the pressing necessities of the army called for immediate relief, it was deemed needless to keep open the contract any longer, under an idea, that more advantageous propositions might be made. Under these circumstances, on the 18th of the same month of February, a contract with Hunter, Banks and Company was concluded, and was, immediately after, notified to the Superintendant of Finance.
6. It is stated by General Greene, in his representation to Congress—That the Company’s funds were inadequate to the execution of what they had undertaken—That bills sold greatly under par, and few could be sold at any rate—That the funds, of which the Company were possessed, were tied up be prior engagements—That the creditors insisted in farther security, before they would consent to an application of those funds for the support of the army—That he was reduced to a choice of difficulties, either to turn the army loose upon the country, or take upon himself, the risk of supporting the contractors; that he chose the latter, as the least evil, and became bound, for them, to their creditors, for a sum of upwards of thirty thousand pounds sterling—That to render the hazard as small, as possible, he made the Company give an order on their agent in Philadelphia, Mr. Pettit, for all the contract money, and sums due upon the clothing department, to be paid into the hands of the persons, whose debts he had guaranteed, and that one of the Creditors was sent forward to receive them; but that these funds were diverted into other channels.
And it appears in proof, that public bills, as alledged, were of very difficult sale, being subject to a discount of fifteen per cent for prompt payment, (as much as twenty five being sometimes demanded) that the army, at the time when this engagement was entered into by General Greene, was in a very critical situation; that discontents, from various causes had produced several instances of actual mutiny; that if the contractors had failed, there was no ground to count on any other resource, as a substitute, and if a want of provisions had been added to other causes of dissatisfaction, there was reason to apprehend a disbanding or dissolution of the army—That General Greene, on or about the 8th of April 1783, did become surety for the contractors, to different persons, in very considerable sums; and it is to be inferred, as well from the fact itself, as from the evidence, that the doing of it was necessary, by quieting their creditors, to enable them to proceed in the supply of the army.
It further appears in proof, that Mr. Burnet, one of the Company, had informed Mr. Pettit, their agent, that they had purchased a quantity of goods from British merchants in Charleston—That these goods had enabled them to undertake for the supply of the army in clothing and provisions, and that they had stipulated with those merchants, “that the monies arising from the contract should be appropriated to the payment of the debt contracted by that purchase;” that repeated instructions, by letter, in the name of the Company, sometimes in the handwriting of Banks, and sometimes of Burnet, uniformly held up to him, Mr. Pettit, the idea of paying the produce of the contract to the same merchants, in proportion to their respective claims, of which they sent a list, amounting to upwards of thirty two thousand pounds sterling, due to three Houses—That two payments, one for twenty two thousand eight hundred and seventy five dollars, and the other for four thousand two hundred and twenty two dollars, were made by him to the British merchants; that a Mr Warrington, one of them, had come forward to Philadelphia, to receive the money, both on his own account, and as an agent for others; but that, in consequence of subsequent arrangements and instructions, the residue of the contract money was diverted to other purposes.
7. Precautions were taken by General Greene, when he became apprised of his danger, to obtain counter-security. This was actually effected, to a considerable extent; but it seems now reduced to a certainty, that a loss, of not less than eight thousand pounds sterling, will be sustained by his estate, in consequence of the transaction, unless indemnified by the government; and that the probable result will be the entire ruin of the estate.
8. No document appears, shewing that the notice of his having become surety for the Company was ever given by General Greene to Congress, or any of the public departments, prior to his representations of the 22nd of August 1785, claiming an indemnity, in case of such eventual loss. The omission of such notice is, indeed, to be inferred from the silence of that representation on the point. The evidence of the foregoing facts is to be found with the documents herewith transmitted, marked from A to Z inclusively.
Under this state of facts, it remains to be considered, whether it be incumbent upon the government of the United States, to grant the indemnification to the estate of Major General Greene, which is sought by the petition.
Objections to such an indemnification might arise from three sources.
1. Want of authority from the government to enter into the suretyship in question.
But this, it is conceived, would not be a valid objection. There certainly are numerous cases, in which a commanding officer of an army is justifiable in doing more, than he has a regular authority to do; from the exigency of particular conjunctures. And where it appears, that the unauthorized procedure was prudent and necessary, in itself, and was warranted by motives sufficiently important and emergent, it is just and proper in the government to ratify what has been done, and to indemnify the officer from injury on account of it. That an emergency of this kind did exist, to justify the measure, which was adopted by General Greene, appears to be satisfactorily established. The keeping of an army from disbanding may be presumed, upon strong grounds of evidence, to have materially depended upon it. And there does not seem to have been a deficiency of precaution in guarding, as far as was practicable, against eventual loss.
2. A personal or private interest in doing what was done foreign to the duties and relations of a commanding officer.
This, if it did exist, would be a decisive objection. The existence of it having been alledged, it remains to examine, what probability there is of the allegation being well founded. It’s source is traced to a letter of John Banks, containing a suggestion or conjecture, that General Greene was, or probably would be, concerned in the Copartnership of Hunter, Banks and Company.
But this circumstance loses all force from the following considerations.
1. From a letter which General Greene wrote to John Banks, dated the 25th of December 1782, in which the General makes his acknowledgments to Mr. Banks, for the services he had rendered to the army, in respect to clothing, and invites him to become a competitor for supplying it with provisions. The scope and language of this letter strongly indicate, that General Greene had then no interested connection with Mr. Banks, in relation to any of the matters, which are the subjects of it. As this conclusion results rather from the general tenor of the letter than from particular expressions, it’s justness will best appear by an insertion of the entire letter. It is in these words.
Head Quarters, December 25th 1782.
Dear Sir,
The comfortable situation, in which you have put the Army, from the large supply of blankets and clothing furnished it, claims my particular acknowledgments; for, although I expect the public will make you a reasonable compensation, yet, as you were the only person, who had the will and the means to serve us, our obligation is equally great. I am happy to find also, that most, if not all our officers are likely to get supplies of clothing, through your agency. Colo. Carrington, who is appointed to make the contracts for the subsistence of the southern army, also informs me, your House have it [in] contemplation to engage in this business. Great, as our other obligations are, if you contract for the supplies of the army, this will be greater than all the rest. For the present mode, in which we are supplied, is truly distressing, both to the people and to the army. The manner of collecting by military parties renders it distressing to the citizens, and, from the uncertain collections, the army is often without any thing to eat. This is hard upon troops who have bled so freely for an oppressed people. I must beg you to hasten your proposals; and, I flatter myself, you will, from your attachment to the cause, as well as a regard for the army, serve the public, on the lowest terms.
I am, dear Sir,   Your most obedient humble Servant,
Nath. Greene.
Mr. John Banks.
2. From the pains taken by that officer to induce competition from other quarters; the delays which, with his participation and direction, attended an acceptance of the proposals made by Hunter, Banks and Company, after the time for receiving proposals had expired, in order to afford a still farther opportunity, for other proposals, and to bring that company to more moderate terms—the reference, which, in the last resort, was had to the Assembly of South Carolina, as the only remaining expedient for exciting a competition, which had in vain been sought by other means; and, respecting which Colo. Carrington, in his affidavit (document R) expresses himself in these strong terms: “General Greene would not suffer a contract to be closed, without making every possible effort to excite a competition, and, as a last resort, a letter was written to the Assembly of South Carolina, &c.”—circumstances, which satisfactorily prove, that General Greene had, in the first instance, no common interest with Hunter, Banks and Company, in the contract for supplying the army with provisions.
3. From a letter of Major Forsythe, one of the partners, to General Greene, December 29th 1782, (document F) in which he thanks General Greene for a letter of approbation of his public conduct, and expresses a hope of that countenance and aid from the General, in private life, which he had enjoyed, while serving under his command; and then proceeds to mention the case of a Brig, belonging to the Company, which had been siezed at Savannah, and asks, as a favor, a letter from the General to the judge, before whom the cause of the vessel was expected to be tried, to remove a prejudice against Mr. Banks (as being a person inimical to the American cause) which, it was feared, might occasion her condemnation. The style of this letter is the reverse of that of one partner writing to another, on a subject of mutual interest. It is that of a person, who had received favors from a patron, asking a farther favor.
4. From the counter-securities, which General Greene took in consequence of his having become surety for the Company, to their creditors; one, being a bond from Banks, Patton and Hunter, three of the partners, bearing the date the 7th of May 1783 (document M) in which it is acknowledged, as is usual in such cases, that General Greene had no concern in the debts for which he had become bound; and the parties, accordingly engage to exonerate him from those debts, or any damages which might arise from becoming security for them; another, being an assignment from Robert Forsythe, another of the partners, to General Greene, bearing date the second of September 1784, (document N) of debts due to the partnership, as a counter security to him, in which it is stated, that General Greene, at the special instance and request of the Company, had become their security to certain persons, to whom they were indebted. The latter, however, being a considerable time after the transaction, is far less conclusive than the former.
5. From the affidavits of John Banks, and James Hunter, two of the partners, one dated the third of January 1783, (document O) the other, the twenty sixth of September 1785 (document P); the first, denying explicitly all connection of General Greene, in the affairs of the Company, the last, declaring that the deponent never considered General Greene as directly or indirectly interested in the purchase of the goods, upon which the debts, for which he had become bound, appear to have been founded; that this purchase was on the proper account of John Banks, Robert Forsyth, Ichabod Burnet, John Ferrie, Robert Patton and the deponent; and that he never heard nor understood from either of the other partners, that General Greene was any way concerned or interested in that purchase. There is also, a certificate from Robert Forsyth, of the third of March 1785, (document Q) declaring that the General was not interested, either in that purchase, or in the contract for the army.
6. From a suit in Chancery, which was brought by General Greene, and, after his death, prosecuted by his executors to a recovery, against John Ferrie, one of the partners of the House of Hunter, Banks and Company; which suit, it appears, might have been defeated by proof of interest in the partnership, on the part of General Greene; but not only, no such proof was made, but it is asserted, on oath, by Charles C. Pinckney (document Y) who was solicitor and counsel for Ferrie, and who professes to have obtained, in a professional capacity, considerable knowledge of their affairs, that Ferrie had assisted Banks in the purchase of the goods in question, had been instrumental in his obtaining credit—had kept the books of the Company, and appeared to have known all the concerns of the Company most intimately and minutely; that if General Greene had been concerned in the speculation, he (Ferrie) must have known it, and that knowing it, he would have made it known—that he was under no obligation to conceal it, having been put at defiance by the suit, and could he have proved the fact, he would have been successful in his defence; but he neither produced one tittle of evidence, nor deduced a single circumstance to shew, that the General had, in any manner, been concerned in the purchase; the consequence of which was, that the Bill was sustained, the lands were decreed to be sold, and, after defraying the expenses of the suit, and discharging the money due on a mortgage, which had been given by a prior owner, the balance of the sale was directed to be paid over, into the hands of the Complainant, towards an indemnification of the General. This statement has peculiar force, especially, as the General, by commencing the suit, exposed himself to the hazard, if any connection of interest had subsisted, either of being defeated, by a discovery of that connection on oath upon a cross bill, or by perjury in the concealment and denial of it.
7. From a certificate (document X) of the two Chancellors of South Carolina which, after stating the insinuations that had been made of General Greene’s connection with Hunter, Banks and Company, proceeds thus: “We think ourselves authorised to say, that we are as competent to his vindication, from any aspersion of that nature, as any two persons in the State of South Carolina; as we were both in the executive department, at the time of the evacuation of this Capitol, the one, Governor, and the other Lieutenant Governor, and a suit in Chancery has been since brought to issue before us, as Chancellors, in the prosecution of which, the several grounds, principles and obligations of the various connections or copartnerships, by whom the respective speculations, alluded to, were entered into, were very fully, ably, and minutely discussed, by some of the most eminent solicitors in the Court. And we have no hesitation, in the most inevasive, unreserved and unequivocal manner, to declare, that we never had, from our own observation, or from the strictest and most scrutinizing investigation, on the Chancery-bench, the most distant reason to conceive, that the honorable General Greene was ever, either directly or indirectly engaged in any of the aforesaid speculations, any further than as surety for Mr. Banks. We think ourselves warranted, also, in asserting, that the contract with Mr. Banks for the supply of the army, was the most advantageous he could obtain, at a time when the want of provisions threatened a mutiny.”
“John Mathews”
“Richd Hutson.”
Charleston, October 30th. 1790.
8. From the concurrent opinions of other respectable characters, who had the best opportunities of judging of circumstances, that Genl. Greene was totally unconnected in interest with that Company. On this point, the documents S,T,U,V,W,Z, are interesting; that, marked V, states several particulars, as argumentative of the opinion expressed, which merit particular attention.
From the foregoing circumstances combined, there is conceived to be conclusive evidence, that General Greene was not interested, either in the purchase of the goods, which had created the debts afterwards guaranteed by him, nor in either of the contracts for clothing or provisions, was not a partner in the House of Hunter, Banks and Company, nor had any concern whatever in the affairs of that Company, further than as surety.
There is nothing to oppose these conclusions, but the suggestion in Banks’s letter, and the fact of the suretyship. The former is obviated by the contradiction, on oath, of the party himself: and the circumstances of this contradiction, as represented by General Wayne and Colonel Carrington, in their affidavits, (documents T and S) give it every possible appearance of genuineness. A question naturally arises—What could have been the inducement to the suggestion made by Banks? This is answered by Colonel Carrington, who represents him, as a man of “excessive vanity, much disposed to make a shew of connections with high characters.” It is also possible, that he may have expected to derive advantage from the reputation of such a connection. The observation, moreover, is of great force, that if General Greene had been a secret partner, unknown to the partners in general, Banks’s character precludes the supposition, that he would have been the selected depositary of the secret.
The fact of the suretyship is accounted for by the necessity of the measure, as it related to the situation of the army. And relying on the appropriation of the funds, which should arise out of the contracts with the public, to the payment of the persons, to whom he had become bound, it was natural that he should have considered the risk as not very great.
This full statement of the circumstances, which are conceived to exculpate General Greene from the imputation of being concerned in the transaction, has appeared not only essential to placing the merits of the subject properly before the House, but a debt due to the memory of an Officer, who had rendered essential services to his country; and of a man who, by a life of probity, had secured to himself the strongest of all titles to a candid construction of his conduct.
It remains to advert to the third source of objection, which has been intimated, as capable of bringing into question the propriety of an indemnification, namely, the omission of notice to the government, at, or about the time of the transaction, that the suretyship in question had been entered into.
Here, in the judgment of the Secretary, lies the only difficulty, which attends the question of indemnification.
It appears to have been incumbent upon General Greene, if he meant to look to the government for indemnification, in case of eventual loss, to have given early notice of the step he had taken. In proportion, as that step was unauthorised or unusual, the necessity for the communication was encreased. It seems to be a matter of obvious propriety, that a public officer, who expects the sanction of the government to an unauthorised proceeding, especially an indemnification against pecuniary loss, on account of it, ought to embrace the first convenient opportunity to make known the object, for which such sanction and indemnification are desired. And the motives, on the part of the government, to require a due observance of that precaution, are of great force in regard to the security of the public. It is necessary, to enable the government to investigate the circumstances, at the time, when the truth can best be discovered, and unfounded pretensions best be detected. And where an indemnification against pecuniary loss is expected, a prompt disclosure is necessary, to put the government in a condition to take care of it’s own interests, in the manner, which shall appear to itself most efficacious.
It is, indeed, to be observed, that General Greene was naturally led to imagine, that all hazard in the affair was obviated by the measures which had been taken to secure, as he supposed, an application of the monies to be received from the public, on account of the contract, to the payment of the debts, for which he had become surety; and, therefore, omitted a communication to the government, as not necessary to his safety.
But whether this, which appears to be a satisfactory explanation of the motive for the omission, which did take place, be, also, a sufficient ground for dispensing with the observance of a precaution, which, as a general rule, would be proper to be made a condition of indemnification; or how far, the peculiar merit of the officer, or the peculiar hardship and misfortune of the case, may render advisable a deviation from that rule, are points, which the Secretary begs leave to submit, without observation, to the contemplation of legislative discretion.
If a direct indemnification should be conceived inadmissible, as a public precedent, a question would still present itself, whether, under all the circumstances of the case, the family of General Greene ought to be left to the ruinous consequences of an act, which was dictated by a well advised zeal for the public service because he omitted a precaution, which the rules of public policy may require to have been observed.
The Secretary is not certain, whether an opinion on this point be within the province assigned him by the reference, which is the subject of this report, and he, therefore, forbears an explicit sentiment. He hopes, however, to be thought justified by the occasion, when he permits himself to observe, That strong and extraordinary motives of national gratitude for the very signal and very important services, rendered by General Greene to his country, must serve to give a keener sting to the regret, which ought ever to attend the necessity of a strict adherence to maxims of public policy, in opposition to claims, founded on useful acts of zeal for the public service, if no means of protecting from indigence and penury, the family of that most meritorious officer, shall, upon examination, be found inadmissible.
All which is humbly submitted,

Alexander HamiltonSecretary of the Treasury.


Title: Enclosure B: Extracts from the Secretary of War’s Letters to the Late Major General Greene, [10 July 1782–22 January 1783]
From: Lincoln, Benjamin
To: Greene, Nathanael

July 10th. 1782.

“The sufferings of your troops have impressed me with the deepest concern, and the very painful sensations, which your relation of them excites, are powerfully enhanced, that these distresses should have been the lot of an army, not only entitled, by special contract, to better fare, but whose meritorious and gallant exertions under the most extreme difficulties, merited a very different fate; mine is the unhappy station, in which I must hear complaints, without having it in my power to redress the grievances.”
“September 30th 1782.
“The moment you have taken your determinations, what troops you will retain, I wish to be informed, whether they can, or cannot be supplied with clothing, with you; of this, I suppose, there will be no doubt, in case Charleston should be evacuated—indeed, we had almost better give any price, than think of sending it from here. We have met with so many losses and delays, that we have little hope of success, should it be again attempted; however, if the clothing cannot be had with you, it must go from hence.”
November 5th 1782.
“If the whole (the army) are to remain, and Charleston is not left by the British, large supplies must be immediately forwarded—if it should be evacuated, I hope, we shall have it in our power to procure the necessary articles of clothing in that town. On these matters, I wish for the earliest information.”
“December 1st 1782.
“I trust, you will be enabled to furnish an ample supply of clothing for the troops, from the Warehouses in Charleston, as I mentioned to you in a former letter.”
“If clothing cannot be supplied there, I hope, we shall be in a capacity to afford you a considerable supply from Virginia, which, I think, might be speedily forwarded, in coasting craft, to Charleston.”
“December 16th 1782.
“I am exceedingly obliged by your attention to the arrangement, and by the manner, in which you have conducted it—I am equally so, by your care in procuring clothing for the troops, which has happily relieved me from an anxiety, that has long oppressed me. Mr. Morris will honor your draughts—he appears to be well satisfied with the steps, which you have taken.”
“April 2nd 1783.
“The idle surmise, you mention, has not reached us—nor do I suppose it ever will; but should any one presume to echo the malicious whisper, you may be assured, that the most pointed contradiction shall suppress it.”

Extract of a letter from the Secretary at War to the Commander in Chief.
“January 22d. 1783.
“Clothing has been purchased for the Southern Army, by General Greene, who advises the Superintendant of Finance, that he has drawn bills on him for the amount. This circumstance will enable us to order a quantity of clothing, which had been purchased in Virginia, to the main Army.”
Extracts from the Records in the War Office.

January 20th 1791.
H. Knox, Secry at War.


Title: Enclosure No. 2: Extract of a Letter from Major General Greene to Major General Lincoln, Secretary at War, 19 December 1782
From: Greene, Nathanael
To: Lincoln, Benjamin

“Head Quarters, South Carolina,”“December 19th 1782.”

“You will see by some of my former letters, that, in consequence of your orders, I had taken measures, to provide such articles of clothing, as were necessary to complete the troops with their winter clothing. Messrs. Banks and Company have furnished most of the articles we shall want, and will provide the rest. Mr. Hamilton, the clothier, had instructions to contract with such as would supply on the best terms, notwithstanding this agreement; but none offer their goods equally reasonable, and yet I think they are high: however, the demand among the planters is so great, that they would meet with a ready sale among them, and at an advanced price. Under these circumstances, contracts cannot be made on the best terms. The soldiers’ clothing will amount to about fifty thousand dollars. I have advanced to the officers two months pay, by drawing bills on the Financier, which they will negociate for clothing or other things, as their necessities may urge.
“This will swell our drafts; but the peculiar situation of the officers, their long sufferings and distance from home, seem to render it absolutely necessary; some of the officers talk of sending their bills to Philadelphia, but I imagine, most of them will be negociated here with the merchants. I wish not to distress the Financier, but I am distressed myself, and know not, which way to turn, to feed, clothe, and satisfy the army on the article of pay. I would much rather, that clothing could have been sent from Philadelphia: but it was too late to expect any for this season: nor would I wish to negociate pay to the officers, in this way, but from absolute necessity. Troops will meet their sufferings with dignity and patience, when it appears unavoidable; but when their distresses continue longer, they grow impatient and clamorous. I have drawn only for such officers, as are continued in service, however urgent their necessity; many are discontented, but this I disregard, knowing the state of the Treasury.”


Title: Enclosure No. 3: Extract of a Letter from Major General Greene to Major General Lincoln, Secretary at War, 2 February 1783
From: Greene, Nathanael
To: Lincoln, Benjamin

“Charleston, February 2nd. 1783”

“Lieutenant Colonel Carrington has closed a contract with Mr. Banks for the subsistence of the army, at something [less] than eleven pence sterling. It is high, but it could not be had lower. There was not an offer made but by Mr. Banks, although I wrote to all the principal men in the country. People have not that spirit for engaging in business, here, as with us.
“I shall get the troops pretty well clothed, and leave little room for complaint on this head; but, I fear, the expense will run high, most of the goods being in the hands of British Merchants, who were permitted by government to remain here, and those not willing to take bills, have confined the purchase to very few houses. Mr. Banks and Mr. Simmons, I believe, are all, who have supplied—I gave the officers bills for two months pay; but they could negociate but few, except with Mr. Banks, who has offered us our greatest supplies; but, as every merchant will make an advantage of this opportunity, his goods have been higher, than if there had been many competitors for the business. I gave Mr. Hamilton, the clothier, a letter of general credit; but none would go largely into the business, except those mentioned, from a dislike to the bills.”


Title: Enclosure No. 5: John Banks’s Certificate, [ca. 3 January 1783]
From: Greene, Nathanael
To: Lincoln, Benjamin

It having been suggested from an interpretation of my letter of October 1782, to Mr. James Hunter, that the honorable Major-General Greene was interested, or intimated a desire of holding a commercial connection with me in Charleston; I do, therefore, as well for the sake of removing such an idea, as to avert from myself any mischief, that a heedless surmise, expressed in a confidential letter to a partner, might inherit or deserve, hereby certify and declare upon the Holy Evangelists, that he never has or does hold any connection with me, either directly or indirectly, and that he never intimated, suggested, or expressed a wish or desire to this effect.

John Banks.

Sworn to before me this 3d. January 1783.
Hy. Pendleton.
I do certify, that the foregoing extracts of letters &c. from Major-General Greene, to Major-General Lincoln, Secretary at War, from No. 1, to No. 5 inclusive, are true extracts and copies, taken from the files of the War Office of the United States.

John Stagg, jun. Ch. Clk.
War Department, December 23d. 1791.


Title: Enclosure D: [Nathanael Greene to Colonel Carrington], [26 December 1791]
From: Greene, Nathanael
To:

Dear Sir,

Robert Morris, Esquire, Financier for the United States, has in his advertisements for receiving proposals for contracts for supplying the army with rations, directed them to be made to me, in the States of North and South Carolina and Georgia; but in his letter of the 17th of October, 1782, he desires me to commit the business to your care and management, should I find it more convenient for you to execute, than for me. I am persuaded of your good disposition, and of your capacity to manage this important trust, and as I can give it every aid under your direction, as much as if under my own, and as you have more liesure to attend to it, than I have, I wish you to embark in the business. I have already written to all the principal characters in South Carolina, and to some in North Carolina, who are likely to enter into contracts, to make their proposals. As soon as I get their answers, I will lay them before you, and give you such farther information on the subject, as may enable you to close your contracts. I shall be always happy to communicate with you, on every matter necessary for the promotion and security of the public interest. Let me have your answer on the subject, as soon as possible, that I may inform the Financier, how the matter rests.
I am, dear Sir,   Your most obedient Servant,

Nathaniel Greene.
Lieut: Colo. Carrington.


Title: Enclosure E: [Nathanael Greene to John Banks], 25 December 1782
From: Greene, Nathanael
To: Banks, John

Head Quarters, December 25th. 1782.
Dear Sir,

The comfortable condition, in which you have put the army, from the large supply of blankets and clothing furnished it, claims my particular acknowledgments; for, although I expect the public will make you a reasonable compensation, yet, as you were the only person, who had the will and the means to serve us, our obligation is equally great. I am happy to find, that most, if not all our officers, are likely to get supplies of clothing through your agency. Colonel Carrington, who is appointed to make the contracts for the subsistence of the southern army, also informs me, your House have it in contemplation to engage in this business. Great as all our obligations are, if you contract for the supplies of the army, this will be greater than all the rest. For the present mode, in which we are supplied, is truly distressing, both to the people and the Army. The manner of collecting by military parties renders it distressing to the citizens, and, from the uncertain collections, the army is often without any thing to eat. This is hard upon troops, who have bled so freely for an oppressed people. I must beg you to hasten your proposals; and, I flatter myself, you will, from your attachment to the cause, as well as a regard for the army, serve the public, on the lowest terms.
I am, dear Sir,   Your most obedient   Humble Servant,

Nathaniel Greene
Mr. John Banks.


Title: Enclosure F: Robert Forsyth to Nathanael Greene, 29 December 1782
From: Forsyth, Robert
To: Greene, Nathanael

Charleston, December 29th. 1782.
Dear Sir,

Some days ago, I was honored with your answer to my letter of resignation; the very warm approbation, given of my conduct in public service, gives me most singular pleasure and satisfaction, and makes me hope for that countenance and aid in private life, which I enjoyed, while I had the pleasure to serve under your command.
I must beg your attention to a brig of Mr. Banks’s, which he loaded at George Town, cleared her out for Saint Thomas’s, and she was taken into Savannah, and I find by letters from thence on the subject, that the proceedings of the people, interested in her condemnation, will go, a great way, to affect her, notwithstanding there are no papers, which can possibly make against her; but they have most industriously prejudiced the people against Mr. Banks, setting forth, that he is a person, very unfriendly to our cause. I find, Mr. Clay is the judge of the Court, and he possibly may entertain the same opinion, which Mr. Banks wishes to remove, and if he could be favored with a line from you to Mr. Clay, to that effect, he has no doubt but the brig will escape. Her loss, (should it so turn out) will prove a very great inconvenience, especially, should we engage in the contract for the army. Money will be much wanted, and Mr. Banks purposes selling her, to reinforce us here with five thousand guineas.
I have the honor, to be, with great respect,   Your Humble Servant

Rob. Forsyth.
The Honble. Major General Greene.


Title: Enclosure G: [Nathanael Greene to Robert Morris], 2 February 1783
From: Greene, Nathanael
To: Morris, Robert

Charleston, February 2d. 1783.
Sir,

Your letter of the 18th of September, by Mr. Hayward, with the Bills enclosed, I forgot to acknowledge in my last. He promises me the money very soon; Mr. Drayton also promises to pay me very shortly.

The clothier’s, quarter master’s and medical departments, together with the bills drawn for two months pay for the officers, give me no small uneasiness, for fear the amount should exceed your ability, and interfere with other engagements. I have contracted for every thing, upon as moderate a scale, as possible.
Even, since the enemy have been gone, we have been obliged to subsist ourselves with the point of the bayonet. All the State-agents quitted the business, the moment the enemy left Charleston. Our sufferings have been great, so much so, that the troops have taken meat out of the market, by force, in contempt of authority. This, you may well suppose, was no less alarming to the officers, than the citizens. Colo. Carrington has closed a contract with Mr. Banks, for the subsistence of the troops, at something less than eleven pence sterling per ration. This is the lowest, it could be had at. Not another man or set of men made an offer to enter into contract, but Mr. Banks. Colo. Carrington took great pains to reduce the contract as low as possible; but there being no competitors, and the army in a starving condition, Mr. Banks knew his advantages too well, not to avail himself of it; however, he rather wishes to be off, even on the terms agreed.
I have been to Georgia, to impress, upon the Legislature of that State, the necessity for their adopting the Impost-Act, and for levying a tax, both of which will, I am in hopes, be agreed to. Their poverty and distress are great, but they must do something. I shall impress the same matters on this State. I have told both, that unless they took measures for the support of the army here, they would be ordered to the northward; and also, that the army could not be kept together, a moment longer, than the officers were satisfied, that the States would take no measures to support the servants of Congress, in their engagements; and this, you may be assured, is a serious truth.
I will transmit you a list of all the Bills drawn on you, and wish you to communicate your sentiments and propects, freely and fully, and, be assured, I will aid the business of your department, as much as in my power; but I am not a little alarmed at the political state of affairs in the southern world.
As I did not know of the opportunity, until the express was ready to go, I cannot write you so fully as I intended.
I am, with great respect,   Your most obedt. Hble Servant

Nathaniel Greene.
The Honble. Robert Morris Esqr.

I certify, that the foregoing is a true Copy, compared with the Original remaining on file in this Office.

Treasury Department. November 30th 1791.


Title: Enclosure H: [Edward Carrington to Hugh Rutledge], 4 February 1783
From: Carrington, Edward
To: Rutledge, Hugh

Charleston, February 4th 1783.
Sir,

The pressing necessities of the army, the late season of the year, and the difficulty of conveying information through the country, in it’s present situation, have prevented that extensive notice of contracts for the subsistence of the troops, which could be wished. General Greene, very early after the contracts were directed to be made, wrote to every character, whose circumstances and views afforded him any prospects of being induced to undertake the business; but none offered any terms whatever, except Messieurs John Banks and Company, whose terms, I do myself the honor to enclose; payments being made, agreeably to the Financier’s advertisement. These terms have remained open, for a considerable time, without a single competitor for the contracts. They are, in the opinion, both of the General and myself, much too high; but the distressed situation of the army, and the inadequacy of the measure pursued by impressment under the authority of the State, leaves us no relief, but in contracts, which must be closed on the above terms, if some competition cannot be excited. Wishing to embrace every means of giving information, and receiving terms on this subject, I do myself the honor to address myself to the General Assembly, through you. From the diffusive situations of the members of that honorable body, and the extensive knowledge, they naturally have of the resources, interests and views of the people, it is probable, more advantageous terms may be advanced through that channel: it is with this view, that I have done myself the honor to address you on this business, and am well assured, your zeal in the interests of the army of the United States, and of this State in particular, will procure my Address, a generous and liberal reception.
You will confer on me a singular obligation, if you will be pleased to communicate to the House the contents of this letter, and give an early answer, whether more advantageous terms may be expected from any part of the country, and whether it will be prudent to keep open the contract any longer.
I have the honor to be, with the most perfect respect, Your most humble Servant
Edwd. Carrington, D Q M G.

Sir,
I have laid your very polite letter to me, before the House of Representatives, agreeable to your desire, where it has received that attention, which the importance of it’s subject demanded; however, no competition with Messrs. Banks and Company has been excited, in consequence thereof. Their terms are thought too high, but as no others have been offered, and the pressing necessities of the army call for immediate relief, it is thought, that it will be needless to keep open the contract, any longer, under the idea, that more advantageous propositions will be made.
I have the honor to be, Sir, with due esteem, Your most obedt. Servant

Hugh Rutledge.
Friday morning.


Title: Enclosure K: [Edward Carrington to Nathanael Greene], 18 February 1783
From: Carrington, Edward
To: Greene, Nathanael

Charleston, February 18th 1783.
Sir,

I do myself the honor to hand you herewith, a Contract entered into by Mr. John Banks, for the subsistence of the troops in the service of the United States, in the States of North Carolina, South Carolina and Georgia, for the present year. I am really concerned, that we have been obliged to close this contract, on the execessive high terms agreed to, but the circumstances, under which we had to treat, must justify the measure. For upwards of two months past, the army has been in a situation, little better than starving, rarely served with above rations, and frequently, five or six days without any meat at all, the measures of Government for supplies confessed to be ineffectual, and no longer to be depended on. In this situation, and under these prospects, the public could have no principles, on which, terms, mutually due, could be exacted, unless in a competition amongst persons willing to contract: this could not, by every notice and application, be excited, although the contract was kept open, near three months. The gentleman, who has undertaken it, is the only one who has made an offer at all. His first proposals amounted to thirteen pence farthing sterling per ration, the excess of which was so great, that we could not, at every hazard and inconvenience, accept them. After a long time, he fell, by several steps, to something less than eleven pence, equal to seventeen pence halfpenny Pennsylvania Currency per ration, and the difference, between that, and what would have been a due price, was not an object, so great as to lose a contract for, under the pressing distresses of the army, without another resort for relief. This, Mr. Banks knew too well, to be reduced lower, while he stood alone for the business. Still willing to take every opportunity for exciting a competition, the General Assembly having convened, I, on the 4th instant, addressed to them a letter, the copy whereof, with the answer thereto, is here also inclosed, from which you will see their opinion, as to the price of the ration, the probability of getting other proposals, and the necessity of closing on those we already had. In dividing the ration you will observe, that the greatest excess of the profits are thrown on the small articles, because they will, on issues to prisoners of war, be retained, and because, also, the contractors will find it more convenient to issue them, than pay money; or, if they should pay money, the same will be most valuable to the drawers: and further, should the army, by any means, become active, so as to go into the interior country, those articles will be entirely out of the reach of the officers and soldiers, at any price, and the contractors will find them at very high rates. The substitutions of rice and Indian meal for wheat flour is admitted, from the circumstance of flour being a foreign article, as to this quarter, and mostly depending on water-carriage by sea, and, I am persuaded, the substitutions will, in the arrangement of the issues, render the army equally well accommodated.

The condition of giving a month’s previous notice of the removal of the army, in case that should happen, or else, for the public to take the stock on hand, not exceeding a month’s rations, was insisted on by the contractor, because such a circumstance was more probable with this, than the northern army, and he wished, at least, to be secure against suffering by any unreasonable stocks that might be on hand.
Mr. Banks proposes, for his securities, Robert Forsyth, and Hunter, Banks and Company, the firm to which he belongs, which will, I think, be sufficient. He and Mr. Forsyth have signed the bond here, and one of the partners will sign it, as you send the bond through Virginia to Philadelphia. Mr. Forsyth, who is going to Virginia, will take charge of it, and enclose it for you to Mr. Morris, after he has got that signature.
I hope, the whole business will meet the approbation of Mr Morris, who will be very able to estimate the difficulties, under which it has been done, and will, from thence, conclude the impossiblity of procuring better terms. I must own, that I feel not a little mortified, that such excessive sums should be paid, but no alternative was left for subsisting the army. However, the exhausted state of this country in beeves, and it not being a flour-country, at all, occasion the supplies of both articles to be remote, and, of course, dearer than for the northern army, and this is also the case with most of the other articles, nor do I think the difference of flour more than made up, in the substitutions of Indian meal and rice, so that the rations must be, at any rate, higher than in New York and Jersey.
Mr. Banks has made some proposals for supplying hospital stores, which are high, and, as we are not so much distressed for them, as we were for rations, I shall not close with him, but on good terms. You shall hear from me, in a few days, with respect to them.
I have the honor to be, Sir,   Your most obedient,

Edw. Carrington. D.Q.M.G.
General Greene.


Title: Enclosure M: [Note from Joseph Banks], 7 May 1783
From: Banks, Joseph
To:

Whereas the honorable General Greene did, in the month of April last past, become security for us, John Banks, James Hunter and Robert Forsyth, as for themselves as others concerned, in the sum of thirty two thousand one hundred and twenty five pounds, sterling money, unto Messrs Neucomen and Collett, Harris and Blackford, and James Warington, merchants, Charleston. We, the afternamed, Do, by these presents, acknowledge, that the honorable General Greene was not, nor is not concerned or interested in said amount of monies, being purchase monies of goods, on account of the afternamed parties; And we further do hereby agree and bind ourselves, our heirs and assigns, to release and exonerate the said General Greene, from the principal or damages, should any arise, of or from the being security for us to the above-named merchants, for the sums aforesaid. Sealed with our seals, and signed this seventh day of May 1783.
John Banks, for self and allparties concerned.
Robert Patton,
James Hunter.
Witness, John Ferrie


Title: Enclosure N: [Robert Forsyth to William Allen Deaz], 2 September 1784
From: Forsyth, Robert
To: Deaz, Allen William

To all to whom these presents shall come, be seen, or made known,— Greeting.
Whereas Benjamin Johnston of the County of Culpeper, in the State of Virginia, in and by his bond or obligation, bearing date, the twenty eighth day of April, in the year of our Lord, one thousand seven hundred and eighty, became bound to Robert Forsyth, then of the Town of Fredericksburg, in the penal sum of ten thousand pounds Current money of the State of Virginia, conditioned, that the said Benjamin Johnston should convey to the said Robert Forsyth, certain lands in said bond mentioned; And Whereas Burgess Ball, of the County of King George, in the said State of Virginia, in and by his bond or obligation, bearing date the fourteenth day of June, one thousand seven hundred and eighty two, became bound to the said Robert Forsyth, in the penal sum of three hundred pounds, lawful money of said State; conditioned, that the said Burgess Ball should make good and sufficient deeds of conveyance to the said Robert Forsyth, his heirs and assigns, of certain lots of land in said bond mentioned, as by the said bonds, reference being thereunto had, may more fully appear. And Whereas, the honorable Major General Nathaniel Greene, at the special instance and request of Robert Forsyth and Company, did become surety for them, to Messrs. Harris and Blackford, and Neucomen and Collett, for the payment of very considerable debts, and which have not, as yet been satisfied. And Whereas the said Robert Forsyth is willing and desirous of saving harmless the said Nathaniel Greene, his heirs, executors and administrators, and his and their goods and chattels, lands and tenements, from all damages, which might otherwise arise to him or them, by reason of his said securityship. Now this Indenture Witnesseth, That the said Robert Forsyth, for the express purpose of indemnifying the said Nathaniel Greene, as aforesaid, and for no other purpose whatsoever, and in consideration of the sum of five shillings, Hath granted, assigned and set over, and by these presents Doth grant, assign and set over, unto the said Nathaniel Greene, the said recited Bonds or Obligations, and the monies thereupon due, or which may become due, for a breach of the said conditions, and all his right, title and interest, of, in and to the same; To Have, hold, receive, take and enjoy the said bonds, monies and all and singular the hereby assigned premises, unto, and to and for the only use and benefit of the said Nathaniel Greene, his executors, administrators and assigns from henceforth forever. But to, for and upon the special trust herein before mentioned, and none other. And the said Robert Forsyth, for the consideration aforesaid, Hath made, ordained, constituted and appointed, and by these presents, Doth make, ordain, constitute and appoint the said Nathaniel Greene, his executors and administrators, his true and lawful attorney and attornies, irrevocable, for him, and in his name, and in the name of his executors and administrators: But to, for, and upon the confidence and trust above-mentioned, to ask, require, demand and receive of the said Benjamin Johnston, and Burgess Ball, and either of them, their, and either of their heirs, executors and administrators, the monies thereupon due, or which may become due for a breach of the conditions of the aforementioned bonds. And also to accept and take from the said obligors, good and sufficient titles, in fee simple, in his the said Nathaniel Greene’s name, for all and singular the premisses mentioned in the conditions of the said bonds. In witness whereof, the said Robert Forsyth hath hereunto set his hand and seal, this second day of September, in the year of our Lord, one thousand seven hundred, and eighty four.

Robert Forsyth.

Sealed and delivered In presence of
}

Wm. Allen Deaz.


Title: Enclosure P: [James Taylor’s Testimony on James Hunter], [26 December 1791]
From: Taylor, James
To:

Norfolk Is.
James Hunter, of Portsmouth in Virginia, came personally before me, and made oath on the holy Evangelists, That he never considered the honorable Major General Greene, either directly or indirectly concerned or interested in a purchase of goods, made by John Banks in Charleston, on the proper account and benefit of the following persons only, viz: John Banks, Robert Forsyth, Ichabod Burnet, John Ferrie, Robert Patton, and said James Hunter; who further deposeth and saith, that he never heard, or ever understood, from either the abovementioned persons, either by letter or words, that General Greene was, any means concerned or interested in said purchase.

James Taylor.


Title: Enclosure Q: Letter from Robert Forsyth, 3 March 1785
From: Forsyth, Robert
To:

Savannah, 3d March 1785.

It having been insinuated by some, and propagated by others, that the honorable General Greene was concerned in the Charleston speculation, with John Banks and Company, and with the contract for the army, I do hereby certify, that the General was in no ways interested in either, with the said Copartnership.

Robert Forsyth.


Title: Enclosure S: Letter from Edward Carrington, 2 March 1790
From: Carrington, Edward
To:

Sometime in the early part of the year 1783, during General Greene’s residence in Charleston, I received a message from him, requesting my attendance at his quarters. Upon my coming there, I met with General Wayne. General Greene told us, he had desired our attendance, in order that we might be present at an interview, he was about to have with Mr. John Banks, whom he had sent for—that he had just received a communication from Governor Harrison of Virginia, covering a letter (or a copy of it) which had been opened there, from Mr. Banks to his partners, enclosing some bills on the Superintendant of Finance, drawn by him, in favor of Mr. Banks, and containing some expressions, intimating a connection of the General with that Company in trade. After some short time, Mr. Banks came in, when the General put into his hands, the paper above alluded to, and asked him, if he had written to his partners in Virginia, what it contained? Mr. Banks, with confusion and agitation, after some pause, answered in the affirmative. The General then asked him, upon what foundation, he had undertaken to do it? Mr. Banks answered, none but a conjecture of his own, adding, as well as I recollect, that the conjecture arose from his conceiving that the war was drawing to a close, and as he, the General, had formerly been a man of business, he might be inclined to engage in the concern. The General told Mr. Banks that it was impertinent conduct, and that, for the public satisfaction, he must take effectual steps to shew, that the suggestion was a falsehood. To which, Mr. Banks replied, that he would make oath to that effect, which was accordingly done. During this interview General Greene desired Mr. Banks, to declare before General Wayne and myself, for what purpose, the bills mentioned had been paid him—his reply was, on account of the clothing, which he had procured from Charleston, for the army.
After this business was over, General Greene requested, General Wayne and myself would investigate the transaction, he had with Mr. Banks, in procuring the clothing for the army, and, for this purpose, laid before us the papers, which were connected with it; we gave them a very thorough investigation, and were fully satisfied, as appeared by a publication, made upon the occasion, not only, that the transaction was a disinterested one, on the part of General Greene, but, that it was made, on as good terms for the public, as the circumstances, under which he acted, could have admitted. The effects of it were well felt by the army, too, which, from having been accustomed to nakedness, were, that winter, as well, and perhaps, better clothed, than I ever before saw American troops.
It would be presumptuous in any one, to make oath that General Greene was not concerned in trade with the House of Hunter, Banks, and Company, or with any other person, during his command of the Southern Army; but I can decidedly swear, that I am well assured, he was not, directly or indirectly. I will add, that John Banks, with whom I was well acquainted, was a man of excessive vanity, and was much disposed to make a shew of connections with high characters. All the foregoing, to the best recollection and belief, I certify on oath.

Edwd. Carrington.
Henrico Is:
Edward Carrington personally appeared before me, John Harvie, a Magistrate for the County aforesaid, and made oath, that the facts and circumstances, stated in this affidavit, are true, according to the best of his knowledge and belief. Given under my hand this second day of March, 1790.
John Harvie.


Title: Enclosure T: Letter from Anthony Wayne, 31 May 1790
From: Wayne, Anthony
To:

Georgia, 31st May, 1790.

Being called upon by the widow and the executors of the late Major General Nathaniel Greene, to relate such circumstances with regard to the situation of the army, and of the transactions between a certain Mr. John Banks and the General, as came within my knowledge, as second in command in the Southern District;
I think it unnecessary to go into a minute detail of every circumstance respecting those transactions, but I well recollect, that, some time after the evacuation of Charleston, which was on the  day of December 1782, orders were received by the General, either from Congress, or the then Financier, to contract with some person or persons, for the necessary supplies for the southern army: and that it was, with the utmost difficulty, that any person could be found to undertake the business, on the terms in the power of the General to offer: and not until the troops had experienced, almost, every possible distress, for want of provision and clothing, a short time after making the contract, from some accidents, such as capturing of one or two vessels by the enemy, that were on their way from North Carolina, with flour and other provisions—the distresses became extreme, and a general mutiny and dereliction from the service began to present—nor could this evil possibly be prevented, but by an instantaneous relief, as the army was, for a long time, at short allowance, and had then been, for forty eight hours, without any kind of sustenance whatever—Under those pressing circumstances, the contractor, (Banks) not being in funds, and without credit, General Greene became his security, to a very considerable amount, for the purpose of procuring such articles of clothing, provision and other necessaries, as were wanted for the use of the army; by which means, a calamity was avoided, that appeared to us dreadful, and order, discipline and content restored among the respective corps. Sometime after this disagreeable business was accommodated, I believe, early in the spring of 1783, as I was about to proceed to reassume the command in Georgia, and to hold a treaty with the Indians, General Greene sent for me, and put into my hands a letter from the said Banks, addressed to his Copartners in Virginia, in which, he mentions “that General Greene was to be concerned with them in trade, and not to be uneasy, but, by all means, to keep that circumstance a secret.” This letter had been intercepted, and sent to the General, the preceding evening—he appeared to be much agitated, whilst I was perusing it—upon returning it to him, I well recollect, that he asked me, what I thought of that infamous scoundrel; adding, “shall I put him to instantaneous death?—my feelings prompt me to it.” He also solemnly declared, that he never had the most distant idea of being concerned with Banks in any kind of trade, either directly or indirectly: at this moment Colonel Carrington came to Head Quarters; he either had been previously, or was then made acquainted with the contents of that letter—the General requested our opinion upon the subject: we proposed to send for, and interrogate Banks upon oath; this advice was adopted, and his deposition was taken before a Mr. Troop, a Notary-public, of Charleston, in which he most solemnly swears, that General Greene never was, at any time, either directly or indirectly, concerned with him in trade, or merchandize of any kind, or nature whatever, and that he was induced to write that letter, from some doubts entertained by his Copartners in Virginia, of his entering too deeply into speculation—in expectation, that they would be easy, under the idea of the support of General Greene, and that, as he had enjoined secrecy, he never expected, that what he had wrote, would come to the knowledge of the General. I think, that this was nearly the purport of Mr. Banks’s deposition, but believe that the original is to be found upon the files of Congress.
I have thus given a relation of this business, as well as I can recollect from memory—and I do solemnly swear, that the circumstances and facts herein mentioned, are true, to the best of my knowledge and belief; and I am also confident, that General Greene was drawn into the security, I have mentioned, from the situation, in which he was placed by Congress, as Commander of the southern army, at a trying crisis, when destitute of public funds; a fact, which I have the best ground to believe, from the habits of friendship, in which we lived, and the confidence, with which I was always honored by that great and good officer.

Anthony Wayne.
Brigadier General Wayne, being duly sworn, maketh oath, that the contents of the above narrative are true.
J: Rutledge.
Savannah, 1st June 1791.


Title: Enclosure U: Letter from Charles Pettit, 16 March 1788
From: Pettit, Charles
To:

Philadelphia, 16th March, 1788.
Dear Sir,

Your favor of the 11th instant was handed to me yesterday-afternoon, desiring my evidence respecting General Greene’s disappointment of monies, he expected from Banks and Company, which were to have been paid in Philadelphia. How far the facts, within my knowledge, and the circumstances arising from my transactions, will tend to establish the material points, I am not ascertained; but I shall give you a narrative of such facts and circumstances, as I suppose likely to have an aspect, to the object you have in view, and which may tend to explain the information you may derive from other sources.
The latter end of March 1783, Major Burnet intimated to me, that he had formed, or was about forming a connection in [trade] with a view to settle in Charleston. On his way thither he wrote to me from Virginia, making overtures, in behalf of the House, to become their commercial agent in Philadelphia. Early in May, I received a letter, signed Banks, Burnet and Company, enclosing some drafts on the paymaster General, and containing advice of their drafts to me, in consequence of such remittance; suggesting also, that Major Burnet was on his way from Charleston to Philadelphia, and would make arrangements with me, for farther business. On Major Burnet’s arrival, he mentioned to me, the plan of business formed by their House: That they were possessed of a large quantity of goods, which Mr. Banks had purchased from British merchants in Charleston, which enabled them to furnish clothing and other supplies for the army, as well as the country; that they had undertaken to supply the army with provisions, at a rate below what any other person could furnish them, in consequence of their being possessed of these goods; and, although they did not expect a profit on the contract, but might, more probably lose by it, they should, by these means, enlarge their trade, turn their goods into cash, and, at the same time, benefit the public, by supplying the army, in a time of difficulty, when no other house or person, in that quarter, could do it, with equal certainty. That they should rely on me, to receive their accounts of issues, and draw the money from the treasury, at the periods stipulated for payment, which, I think, was four months after delivery of the rations; but that they had stipulated with the persons, to whom they were indebted for the goods, that the monies, arising from the contract, should be appropriated to the payment of the debt contracted by that purchase.
Some time afterwards, I received from Mr. Banks a copy of his contract for supplying the troops, which, it seems, was made in his own name, separately, together with a power of Attorney from him to me, to receive the money, as it became due, from the treasury. Still, however, the instructions concerning the business were under the signature of the Company, sometimes in the hand-writing of Banks, and sometimes of Burnet, but uniformly holding up the idea of paying the produce to the British merchants, in proportion to their respective claims, of which they sent me a list, amounting to upwards of thirty two thousand pounds sterling due to three houses.
Their remittances to me, by other means, were considerable; but their drafts upon me greatly exceeded them; insomuch that I held some of their bills in suspense, after having accepted more than their funds in my hands, exclusive of the contract-money, would warrant. They urged me very pressingly to give a prompt acceptance to all their bills, promising ample resources to support them, and intimating, that the contract-money would be a security in my hands, if other resources should fail. It so happened, that I took up all their bills, which became due, in June and July, without breaking in upon the contract-money; and early in August, I paid to the British merchants, on account of their claims, twenty two thousand eight hundred and seventy five dollars, being all the contract money which had then come to my hands. Their drafts on me continued to increase, beyond their provision for the payment of them; and, in order to induce me to accept them, they gave me direct instructions, to apply the contract money to the payment of them, if I should find it necessary, intimating, that their contracts with the British merchants were not strictly payable till the first of November, and that, before that time, they should turn into my hands, six thousand pounds sterling from the Havannah, and ten thousand pounds sterling from Virginia, besides other remittances. Mr. Warington, one of the British merchants, who was also authorised to receive for Messrs. Harris and Blackford, was frequent in his applications for farther payments. When I found it necessary to apply some of the contract-money to other purposes, I thought it right to mention it to Mr. Warington. He became enraged at Mr. Banks, and then mentioned to me, that it would injure General Greene, who was Banks’s security for the money, without which, he said, they would not have trusted him. This, I believe, was the first direct information I received of General Greene’s responsibility in that business. Out of the next instalment of the contract-money, I paid to the British merchants four thousand two hundred and twenty two dollars; the rest, I was obliged to apply to the payment of drafts which I had accepted. This last payment to the British merchants (which was the last they received from me) was in October 1783. Some time after which I understood, from several of Mr. Banks’s letters to me, that they had obtained other payments and securities, for the residue of their respective claims; but, in what manner, I was never particularly informed. I rested satisfied, however, that it was done, and that General Greene was made safe in the business, till some time after Mr. Banks had drawn the whole money out of my hands. He had drawn, indeed, for abundantly more, than he had any pretensions to, though I was lucky enough to decline acceptances, in time to save myself from going beyond my resources.
I do not recollect any other circumstance within my knowledge, likely to throw light on the subject of your enquiry; but, possibly, pointed questions may bring to my recollection some matters, which do not now occur, or do not strike me, as material. If a more solemn attestation, than my signature, should be required, as to the facts, which I have related, it shall not be wanting; but, considering the nature and purport of the enquiry, it may not, perhaps, be demanded.

With great esteem, I am, dear Sir,   Your most obedient Servant

Charles Pettit.
Colo. Wadsworth.
On this twenty sixth day of December, in the year of our Lord one thousand seven hundred and ninety one, before me, Clement Biddle, Esquire, Notary public for the Commonwealth of Pennsylvania, duly commissioned and authorised by law, to administer oaths and affirmations, dwelling in the City of Philadelphia, personally came Charles Pettit, of said City, Merchant, who, being duly sworn, according to law, on his solemn oath, deposes and says, that the annexed letter was written and subscribed by him, the deponent, at, or about the time of it’s date, and that the contents thereof are, in all things, just and true, according to the best of his memory and belief. And the said Deponent doth further, on his oath, declare, that although he was much conversant in the affairs of General Greene, and had a general, and, in many respects, a confidential knowledge of them, and also of the affairs of Banks, Burnet and Company, he never perceived the smallest reason to believe, or suspect, that General Greene had any interest or concern, whatever, as partner in trade with the said Banks and Burnet, or with any other person or persons in Carolina. And further saith not.
Charles Pettit.
(L:S) Sworne as above before me, Quod attestor.

Clement Biddle,
}

Notary public.


Title: Enclosure W: Letter from William Burnet, 21 July 1790
From: Burnet, William
To:

Newark, July 21st 1790.
Dear Sir,

I have received your favor of the 19th instant, informing me, that it had been suggested, that General Greene was a partner with the House of John Banks and Company—that the evidence of their partnership had been in my possession, I having received it among my sons papers; and that General Greene, in his life-time, induced me, by some means or other, to relinquish the said evidence to him; and desiring me to inform you, whether those suggestions are true or false.
Agreeably to your request, I must, therefore, freely declare, that those suggestions are not true—that no evidence of General Greene’s having been a partner with John Banks, or John Banks and Company, had ever been in my possession—that I never saw any thing in my son’s papers, that gave the least room for a suspicion of that kind—and that I do not know, or believe, that General Greene was ever in partnership with John Banks, or John Banks and Company.
I am, dear Sir, with due respect, Your most obedient Humble Servant.

Wm. Burnet.
General Knox.


Title: Enclosure X: Letter from John Mathews and Richard Hutson, 30 October 1790
From: Mathews, John,Hutson, Richard
To:

We feel ourselves happy, in this opportunity, afforded us, of attempting to do justice to the injured reputation of the late Major General Greene, whose eminent services to this Continent in general, must have greatly endeared his memory to every true friend to the American revolution; and whose distinguished and effectual exertions, for the recovery of this State, from the possession of the enemy, have erected an indelible monument in the breast of every good citizen of this State. We have, with sensible concern, heard some insinuations, of his having, in derogation to the high command, which he held here, entered into extensive speculations, for his own private emolument, soon after the relinquishment of this City by the British. We think ourselves authorised to say, that we are as competent to his vindication, from any aspersion of that nature, as any two persons in the State of South Carolina, as we were both in the Executive department, at the time of the evacuation of this Capitol, the one, Governor, and the other, Lieutenant Governor; and a suit in Chancery has been since brought to issue before us, as Chancellors, in the prosecution of which, the several grounds, principles and obligations of the various connections or copartnerships, by whom the respective speculations, alluded to, were entered into, were very fully, ably and minutely discussed by some of the most eminent solicitors in the Court—And we have no hesitation, in the most inevasive, unreserved, and unequivocal manner, to declare, that we never had, from our own observation, or from the strictest and most scrutinising investigation, on the Chancery-bench, the most distant reason to conceive, that the honorable General Greene was ever, either directly or indirectly, engaged in any of the aforesaid speculations, any further, than as surety for Mr. Banks. We think ourselves warranted, also, in asserting, that the contract with Mr. Banks, for the supply of the army, was the most advantageous, he could obtain, at a time, when the want of provisions threatened a mutiny.

Jno. Mathews.
Rd. Hutson.
Charleston, 30th October, 1790.


Title: Enclosure Y: Letter from Charles Cotesworth Pinckney, 2 November 1790
From: Pinckney, Charles Cotesworth
To:

Having been requested to relate all that I know of General Greene’s connection with the late John Banks and Company and to declare, how far interested he was in their speculations, and having acquired, in my professional line, a considerable knowledge of their affairs, I think myself bound to give the following information.

In the summer or autumn of the year 1782, John Banks, and some other merchants purchased of Messrs Neucomen and Collet, Harris and Blackford, and Mr. McWhan, a very considerable quantity of goods, on speculation. The British troops evacuated this State, in the month of December 1782, and Mr. Banks, very soon after the evacuation, became contractor to the American troops. Subsequent to this period, Mr. Banks and his partners, being unable, (as I have been informed, and believe) both to continue their supplies to the army, and to discharge their engagements with the merchants, from whom they had purchased the goods abovementioned; and, being pressed by them, either to comply with their engagements, or to give security if they were indulged with a farther credit, had recourse to General Greene, and prevailed on him to guarantee the payment of some of their debts, particularly, those to Neucomen and Collet, and Harris and Blackford.
John Banks and Company having failed to discharge their debts, the General was called on to fulfil his guarantee. On the course of his enquiry into the affairs of the debtors, he was informed, that Mr. Ferrie had an interest therein—That he had been concerned in the purchases, and that he had drawn out of the stock, as his proportion of profits, a large debt due to the concern, from Messrs. Pierce, White, and Call, which debts he had negociated for lands on Savannah river.
On this information, the General, in his life-time, filed his Bill in Equity against Mr. Ferrie; but, the suit abating by his death, his executrix and executors revived it. To this Bill, Mr. Ferrie put in his answers; I was his solicitor, and united with the late Mr. Drayton as his counsellor. Mr. Ferrie, in his defence, availed himself of every possible advantage. He obtained from the Court of Chancery, commissions for the examination of witnesses, in various parts of America. He produced a number of extracts from the books of John Banks and Company; and a number of extracts of letters to and from them. He had assisted Banks, in the purchase of the goods, and had been instrumental in his obtaining credit. He had kept the books of the Company. He appeared to me, to have known all the concerns of the Company, most intimately and minutely. And had General Greene been concerned in the speculation, I think he must have known it, and knowing it, I am sure, he would have made it known. He was under no obligation whatever, to conceal it. He was put at defiance, by the suit, and, could he have proved it, he would have been successful in his defence. But he neither produced one tittle of evidence, or deduced a single circumstance to shew, that the General had, in any manner, been concerned in the purchase. The consequence of which was, that the Bill was sustained, the lands were decreed to be sold, and, after defraying the expenses of the suit, and discharging the money due on a mortgage, which had been given by a prior owner, the balance of the sale was directed to be paid over into the hands of the complainants, towards an indemnification of the General.
Given under my hand, this second day of November 1790.

Charles Cotesworth Pinckney.


Title: Enclosure Z: Letter from William Washington, 6 November 1790
From: Washington, William
To:

Sir,

It gives me much pleasure, that I have it in my power, to state an occurrence, which cannot fail, with an unprejudiced mind, to remove every suspicion relative to an improper connection in speculation in trade, between the late General Greene, and John Banks and Company, in the spring of 1783. Several days after a report had prevailed in Charleston, and it was generally believed, that an express had arrived from the northward, bringing certain information, to those most interested, that the preliminary articles, between the United States and Great Britain, had been agreed on, I met with Mr. John Banks, on the Bay; after expressing the confidence, he had in my keeping a profound secret, the intelligence, which he was about to communicate, he informed me, that he had received information from a confidential friend of his, to the northward, that the preliminary articles were certainly signed, and gave me a letter to read, which contained the information; which letter, he had received, several days before. I was with him, but a few minutes, before he received a message from General Greene, by a servant from his store, in Broadstreet, informing him, that he wished to see him at his store immediately. Mr. Banks asked me to walk with him—on our way, Mr. Banks said, that he supposed that the General wanted to interrogate him, with respect to the intelligence which he had received, but that he was resolved not to give him any satisfaction. So soon as we got to the store, General Greene, addressing himself to Banks, requested to be informed, whether he had received any information, which could be relied on, relative to the preliminary articles having been signed. Mr. Banks, in the most positive manner, denied, that he had received any information to that purport. The artless and undisguised manner, in which the question was asked, produced the strongest conviction, in my mind, that General Greene was, at that time, ignorant of the intelligence, which Mr. Banks had received: and it can hardly be presumed, that a piece of intelligence, so important and interesting to Mr. Banks, at that crisis, would have been withheld from any person, who was, in the smallest degree, connected with him.

W: Washington.
Charleston, November 6th: 1790.


Title: To Alexander Hamilton from John Davidson, 27 December 1791
From: Davidson, John
To: Hamilton, Alexander

[Annapolis, December 27, 1791. On January 9, 1792, Hamilton wrote to Davidson: “I have recieved your letter of the 27th ultimo.” Letter not found.]


Title: To Alexander Hamilton from Thomas Mifflin, [27 December 1791]
From: Mifflin, Thomas
To: Hamilton, Alexander

[Philadelphia, December 27, 1791]
Sir.

In order to enable me to answer your letter of the 21st instant, I directed the Comptroller general to furnish me with the necessary information upon the subject of your inquiry; and you will now receive an extract from his report. But as this may not be deemed satisfactory, I have given that Officer instructions to confer with you upon the subject; and, I hope, that after a full and candid communication,the inconveniency that you suggest, may be prevented, without claiming the interposition of the Legislature. Should you still think, however, that this step is requisite, it shall be pursued.
I am, with due consideration  Sir Your most obed Hble Servt

Thomas Mifflin
Phila. 27 Decr. 1791
To Alexr Hamilton EsqrSecretary of the Treasury &c.


Title: From Alexander Hamilton to Melancton Smith, 27 December 1791
From: Hamilton, Alexander
To: Smith, Melancton

Treasury Department December 27th. 1791
Sir.

I accept your proposals for Supplying the post of West point for the ensuing Year, at nine and one half cents per ration, pursuant to your letter of the 23rd. instant.
I am Sir  Your Obt. Sert.

Alexr. Hamilton
Melancton Smith Esqr.New York.