Richmond January 10^th 1788 Gentlemen On the 23 ult [strikethrough: undecipherable] instant I did myself the honor to inform the Board of the interference of the Legislature of this State in the business before the Commissioners appointed to adjust the Claims of Virginia on the Union for her expenses in subduing & maintaining the Territory ceded by her to Congress The Legislature having as I expected adopted certain resolutions on the Subject I hoped to have been able to have enclosed them at this time, but my application for a Copy of them has not been attended with success. I have however received the report of the Committee and resolves in consequence of this report, the substance of which as far as I can remember them appears to be, that the Committee inform the House that an application had been made by them for the information required by the vote of the House of Delegates and that they had received from Mess^rs Heth and Henley certain opinions & determinations made by the Commissioners referred to; that M^r Pierce on the part of Congress having refused to join with these Gentlemen in their communications, the Committee were thereby deprived of the information to be derived [strikethrough: with] from him — that the two Commissioners the one on the part of Congress and the other of the State could not agree on certain important questions on which M^r Henley the third Commissioner was called on for his opinion and the Committee find the negotiation is now in such a state that unless the General Assembly shall interpose the State will be denied a credit which in Justice and Equity is her due. The Committee finding the business going on so unfavourably for the State they desired the Commissioners to reconsider their determinations and had for an-swer that they should proceed on the business until the parties mutually revoked their appointments. that the Committee find that the expenses of Virginia in Subduing the Ceded Country are about £220,000 exclusive of Interest a considerable part of which had been paid in Specie since the Peace which by the determinations already had and those insisted on by the Commissioner on the part of Congress would reduce the sum to be reimbursed Virginia to a pettance not worth her acceptance whereupon the Committee report That the Legislature of Virginia ought to protest against the proceedings [underline: of the Commissioners as tending to deprive the State of so large a Sum of Money which the contracting parties intended to have reimbursed], and that all further proceedings in the Adjustment of said Accounts should be suspended until the proper communications can be made to Congress on the Subject. That the Delegates of the State in Congress be instructed to urge Congress to take measures for doing Justice to the State in the speedy Adjustment of the accounts on the principles of Justice & consistent with the expectations of the State and to inform Congress that the State will be satisfied with the actual Sum paid by her for the support of the ceded Territory to be paid by Instalments and that the State expects and insists that a reasonable proportion of the same should go towards the present Requisitions of Congress. That if the Governor of this State shall find that if there is a reasonable hope of effecting a Settlement on such terms as will do Justice to the State then he be authorised by advice of his Council to permit the Commissioner on the part of the State to proceed again in the further Adjustment of the said Accounts either with the present Commissioners or such as shall hereafter be appointed and that such Settlement shall be made at the City of Richmond or where Congress shall sit as to the Governor with the Advice of the Council shall seem most propper. There are probably some private Resolutions directing the Governor & Delegates in their Conduct. and perhaps authorising them to make some bargain with Congress for a round Sum of Money in lieu of their demand of the State. Having now arrived at the last Step and the State proceeded as far as the Authority of the Legislature will admit I am left in a disagreeable Situation; In the first place, in respect to the line of conduct which is my duty to pursue on so important a business and in the second, to contend for my reputation, my truth, my love of Justice and my wishes to promote federal principles with the most powerful State in the Union whose Sentiments declared by a Solemn act of the Legislature are attended with every circumstance that will give them weight & Importance. On the first point I have to request in the most urgent manner but my future conduct on this occasion be directed as far as propriety will admit by your Hon^ble Board or Congress when they sit as one of the contracting parties. And in the second I am to request permission to give the Board a summary of my conduct and the causes which have operated with me to proceed in this business in such manner as to eventually give dissatisfaction to the State. When I first arrived here I found a disposition to enforce upon the Union as final and conclusive settlements such adjustments as had been made by the western Commissioners and others, that is, the Auditors, the Executive of the State and the Legislature, which caused me to propose the question first decided by this Board, in which we determined our right to reject or reduce such part of the Settlement of the State as we should deem unreasonable. The next question of importance was decided also conformally to my opinion, it respected such Officers accounts as had drawn Money or Bills for particular purposes for which they had no Vouchers for the appropriation. by the first question the State intended to have admitted all the blunders in her Settlements by the second that the Officers intrusted with public Monies should not be held accountable, both of which tho' just were nevertheless hard on the State because she was deficient in proofs to shew the propriety and justness of her Settlements and the Officers [strikethrough: who] which had been intrusted with public Monies were extremely deficient in their Accounts of its distributions. To remedy inconveniences to which the State was thus subjected and to cover as far as Justice would permit the expenditures that the State ought to have made I stepped out from the line of Conduct which strict duty demanded and without a precedent to support me or a friend to advise with, I proposed of my own accord that the pay accounts be passed agreeable to the Musters tho' the State has no Vouchers to prove her payments. that the whole number of men should be allowed their full Rations at the actual and reasonable cost for the whole time of their Serving, tho' I well knew from the Commissary Books that many times but part of this Ration was delivered. that an ample allowance should be made for wantage in issues. That the Soldiers clothing be allowed for the time they were in Service tho' I knew they were not always so clothed. That the Recruiting expenses of the State should be fairly covered by the same general principle. That the Stravagance of General Clarks Table during his command should appear as reasonably to be defrayed by the Union & that the contingent Account the only part remaining that depended on the States Vouchers should receive as liberal an Admission as could possibly be done consistent with Justice. On these principles Gentlemen I agreed that the Accounts should be Settled and I will appeal to the candid & impartial if this Conduct deserves the Marks of disapprobation with which my Character is Stamped by the Committee of the House of Delegates. is it capricious? does it shew a desire to annihilate the demands of the State? and does it shew that my dependence on Congress has prevented my [undecipherable] impartial Justice to the State? on the contrary I am more apprehensive that I shall find that the candid and ingenious will condemn these Concessions, as dispensing with the Vouchers that are to be expected in all Accounts, of my own Authorite without the approbation of Congress, who alone have the power of the Union to substitute Suppositions in lieu of proof and to introduce principles which from their novelty cannot be known, how far they will extend. Let their consequences be what they may, I hazard my Character in proposing them and the accounts had not the State interfered, would have been closed upon these principles. The cause of this interference as far as I can conjecture is what I shall now endeavour to disclose. during the course of our examination of the Accounts on these principles, I found in the first place that too many of the charges arose in Kentucky, I next found that some of the capital Forts were erected in that District & out of the ceded Territory and at last I became acquainted that General Clark in the Year 1780 withdrew his principle Force in the year 1781 all his Troops from the ceded Territory and never afterwards repossessed himself of any part of it. with this information I believe it was propper that I should institute an enquiry in my own mind of the Advantages the Illinois Country received from this Armament when employed for other purposes and that it was equally so that I should propose the question to the Board respecting their allowance. this I did in August last and left M^r Henley to make up his opinion upon it while I was absent. when I returned I found that his opinion was, that the expenses of the Forts ought not to be admitted but the Illinois Regiment ought, as it was first raised for the protection of the ceded Country and might possibly be continued tho' out of it for that purpose, on which it appeared to be the Wish of Col. Heth that some new evidence might [undecipherable] they came. I could not find myself justified in altering my opinion. M^r Heth insisted that the State would interpose its Authority, to which I answered that it was of no importance to me what their opinion might be as I should endeavour to act conformably to my own, and finding at last that my opinion was not to be changed he inspired his own suspicions among the Delegates of the State, who naturally warm & jealous of the other States took fire immediately. The Committee was appointed and received from this Board such information as they wanted in hopes perhaps of still obliging my Sentiments to turn, they wrote us a Letter, already transmitted, in which they held out the Terrors of the State, unless we met them upon their own propositions and leveled personal reflections at me as the Commissioner on the part of Congress in which they have asserted that my Arguments are false and unjust & that my dependence on the Congress renders me not a —partial Character. This Letter had no effect to intimidate me or alter my opinion and the Committee was obliged to report to the House and the House to act as I have already particularly mentioned. I have indeed received the whole transaction as a plan laid to intimidate into a compliance of the wishes of the State and that even at this time there is some expectation that a change will take place in our Sentiments in consequence of these measures. When I went through the Accounts I was of opinion that the Sum due Virginia would amount at least to £150,000 or £160,000 but the question now under debate would reduce the Sum according to my principles to perhaps £60,000 but on M^r Henleys opinion which is perhaps the most equitable tho' not strictly just the amount due the State may amount to £120,000 or perhaps to 130,000 with which the State on every consideration of the case ought to be content as a sum both in point of allowances of articles and of objects exceeding what she had a right to expect would have been granted. I have to observe that the Legislature has acted on this occasion from the Journals we have kept of our opinions and on the information derived from M^r Heth, without acquainting themselves with either the Sentiments of M^r [undecipherable] or myself [undecipherable] at the time [undecipherable] to the idea of giving official information. I informed M^r Heth that I was willing to satisfy any Gentleman of the House both in regard to what had been done and my intentions. The Committee also took up my arguments on the allowance of the Forts in the same manner. M^r Heth had undoubtly full opportunity to reply to every principle I laid down but how the Committee could determine that this reply was satisfactory without hearing my defence of my position is a Mystery. I have Gentlemen in a very desultory manner given you a detail of my conduct. I have been very unwell for a month past and am not able to give so accurate an account as I can wish and I wish have to beg your Board to excuse for the same reason so incorrect a Letter which I cannot copy and which I must request that the Board would lend to M^r Howell long enough to have a Copy taken. I have the honor to be with every sentiment of Respect The Hon^ble Gentlemen yo^r ob^t Ser^t The Board of Treasury In^o Pierce Richmond Janu^ry 13^th 1788 Gentlemen Since my last Letter, in which I had the honor to inform your Board that the Legislature of this State had passed Act protesting against our proceedings and suspending the further Adjustment of the Illinois accounts, I have received the Act authenticated by the Clerk of the House which I now enclose Being brought by this Act to the alternative either to proceed in this Business in open defiance of the Authority of the State or to comply with their desire I maturely reflected on the consequences that might result from my conduct, and on the whole I judged it best to comply with the act of the Legislature which I did by giving into my colleagues in office a papers of which the following is a Copy — [Copy] "Notwithstanding [undecipherable] of opinion that we are authorised by the deed of Session and our respective appointments to proceed to the final adjustment of the accounts before us without regarding the disinclination of one of the parties as to abide by our determinations, yet I think that the respect which we ought to pay to a solemn resolution of the Legislature of this State protesting against our proceedings and suspending the further adjustment of the accounts must cause us to comply with the same, so far as to suspend any further process in the business until the State can have made her wished for communications [strikethrough: on the] Congress on the Subject. In Pierce Richmond Jan^ry 12^th 1788. The following reasons which influenced me to adopt this line of conduct I beg leave to submit to the consideration of your Board, and I humbly hope that they will meet with your approbation. viz: That had M^r Henley & myself proceeded to make our report in direct opposition to their Act and without the concurrence of the Commissioner on the part of the State, the State would never consent that this report should be final but would in the mean time catch at any sum we found due and under this authority stop so much out of the Requisitions or obtain satisfaction in some other way which would be binding on the United States to a payment so far, without at the same time excluding the State from a rehearing on her further demands. That a delay in the Settlement of these accounts must be more to the inconvenience of the State than Congress; for, after refusing the acceptance of the decisions of a Board one of whom was appointed by herself and another nominated by her Delegates in Congress, the delay with which the Business must necessarily be attended, and of [strikethrough: consequence] course the payment she must consider as the consequence of her own conduct. That, should any accident or the consent of the Parties remove the present Board of Commissioners, the principles adopted by us, I consider as much more favourable to the State than those that will be admitted