This condition of virtual bankruptcy might have been avoided had Robert
Morris been able to carry out the reforms which he proposed when he became
superintendent of finance in 1781. He found the financial administration
complicated and corrupt. He attempted to substitute business methods and
punctuality of payment. While the war lasted, however, the only financial
system possible was to squeeze every source of revenue, and to pay only
what could not be avoided. When peace returned, the States would provide
no better system. To keep up the credit of the government the first
necessity was the prompt payment of interest: the payment of interest
required money; money must come from taxes, and the State declined to levy
the taxes. In 1784 Morris resigned in despair, and thenceforward a
Treasury Board mismanaged the finances of the nation.

[Sidenote: Bank of North America.]

May 26, 1781, Congress had taken the important step of chartering the Bank
of North America. The United States was to furnish part of the capital,
and to make the bank its financial agent. Its notes were to be receivable
in the duties and taxes of every State in the Union. Morris asked Jay to
get specie from Spain to start the bank. "I am determined," said he, "that
the bank shall be well supported until it can support itself, and then it
will support us." Its connection with the government practically ceased
after the retirement of Morris in 1784, although it remained under a State
charter a prosperous and useful institution, and is still in existence, a
sound and healthy bank.

[Sidenote: The currency.]

Another financial measure was the attempt to correct the currency. After
the end of the war there was found in circulation an extraordinary mixture