From New Jersey, Morgan hastened to the headquarters of Washington at Whitemarsh, Pennsylvania, arriving there on November 18th.
There was much sickness in the corps, and the men were, in addition, without the clothing, shoes, and blankets needed for the winter weather.
Morgan himself had sciatica again.
Even on his tough constitution, the exposure and strenuous activity were beginning to tell in earnest.

On the morning of November 17th, Cornwallis and 2,000 men had left Philadelphia with the object of capturing Fort Mercer at Red Bank, New Jersey.
In order to prevent this, Washington hastened to dispatch several units to reinforce the fort, including a force under the Marquis De Lafayette containing some 160 of Morgan's riflemen, all who were fit for duty at this time, the rest having no shoes.
Although the fort was evacuated in the face of the force of Cornwallis, Morgan and his men did have a chance to take another swing at the redcoats.
A picket guard of about 350, mostly Hessians, were attacked by the Americans under Lafayette, and driven back to their camp, some twenty to thirty of them falling before the riflemen's fire.

"I never saw men", Lafayette declared in regard to the riflemen, "so merry, so spirited, and so desirous to go on to the enemy, whatever force they might have, as that small party in this fight".
Nathanael Greene told Washington that "Lafayette was charmed with the spirited behavior of the militia and riflemen".

A few days later it was learned that General Howe was planning an attack upon the American camp.
The British general moved his forces north from Philadelphia to Chestnut Hill, near the right wing of the patriot encampment.
Here the Pennsylvania militia skirmished with the British, but soon fled.
Morgan was ordered to attack the enemy, who had meantime moved to Edge Hill on the left of the Americans.
Similar orders were given to the Maryland militia.
Morgan immediately disposed his troops for action and found he had not long to wait.
A body of redcoats were seen marching down a nearby slope, a tempting target for the riflemen, who threw a volley into their ranks and "messed up" the smart formation considerably.
Now the riflemen and the Marylanders followed up their beginning and closed in on the British, giving them another telling round of fire.
The redcoats ran like rabbits.
But the Maryland militia had likewise fled, all too typical of this type of soldier during the Revolution, an experience which gave Morgan little confidence in militia in general, as he watched other instances of their breaking in hot engagements.
The British, although suffering considerable losses, noted the defection of the Marylanders, made a stand, then turned and attacked Morgan who became greatly outnumbered and had to retire.

The Americans lost forty-four men, among them Major Joseph Morris of Morgan's regiment, an officer who was regarded with high esteem and affection, not only by his commander, but by Washington and Lafayette as well.
The latter was so upset on learning of the death of Morris, that he wrote Morgan a letter, showing his own warmhearted generosity.
After complimenting Morgan and the riflemen and saying he was praising them to Congress, too, the ardent Frenchman added he felt that Congress should make some financial restitution to the widow and family of Morris, but that he knew Morgan realized how long such action usually required, if it was done at all.
"As Mrs. Morris may be in some want before that time", Lafayette continued, "I am going to trouble you with a commission which I beg you will execute with the greatest secrecy.
If she wanted to borrow any sum of money in expecting the arrangements of Congress, it would not become a stranger, unknown to her, to offer himself for that purpose.
But you could (as from yourself) tell her that you had friends who, being with the army, don't know what to do with their money and would willingly let her have one or many thousand dollars".
This was accordingly done, and the plight of the grateful Mrs. Morris was much relieved as a result of the generous loan, the amount of which is not known.

Apparently still sensitive about the idea with which General Gates had approached him at Saratoga, namely, that George Washington be replaced, Morgan was vehement in his support of the commander-in-chief during the campaign around Philadelphia.
Richard Peters, Secretary of the Board of War, thought Morgan was so extreme on the subject that he accused him of trying to pick a quarrel.
Morgan hotly denied this and informed the Board of War that the men in camp linked the name of Peters with the plot against Washington.
Peters insisted that this impression was a great misunderstanding, and evidently, from the quarrel, obtained an unfavorable impression of Morgan's judgment.
Such a situation regarding the Board of War could hardly have helped Morgan's chances for promotion when that matter came before the group later on.

In late December, the American army moved from Whitemarsh to Valley Forge, and although the distance was only 13 miles, the journey took more than a week because of the bad weather, the barefooted and almost naked men.
The position of the new camp was admirably selected and well fortified, its easily defensible nature being one good reason why Howe did not attack it.
Besides helping to prevent the movement of the British to the west, Valley Forge also obstructed the trade between Howe's forces and the farmers, thus threatening the vital subsistence of the redcoats and rendering their foraging to obtain necessary supplies extremely hazardous.
In order to see that this hindering situation remained effective, Washington detached several bodies of his troops to the periphery of the Philadelphia area.

Morgan and his corps were placed on the west side of the Schuylkill River, with instructions to intercept all supplies found going to the city and to keep a close eye on the movements of the enemy.
The headquarters of Morgan was on a farm, said to have been particularly well located so as to prevent the farmers nearby from trading with the British, a practice all too common to those who preferred to sell their produce for British gold rather than the virtually worthless Continental currency.
In his dealings with offenders, however, Morgan was typically firm but just.
For example, he captured some persons from York County, who with teams were taking to Philadelphia the furniture of a man who had just been released from prison through the efforts of his wife, and who apparently was helpless to prevent the theft of his household goods.
Morgan took charge of the furniture and restored it to its thankful owners, but he let the culprits who had stolen it go free.

Morgan complained to Washington about the men detailed to him for scouting duty, most of them he said being useless.
"They straggle at such a rate", he told the commander-in-chief, "that if the enemy were enterprising, they might get two from us, when we would take one of them, which makes me wish General Howe would go on, lest any incident happen to us".

If the hardships of the winter at Valley Forge were trying for healthy men, they were, of course, much more so for those not in good health.
Daniel Morgan's rheumatic condition worsened with the increase of the cold and damp weather.
He had braved the elements and the enemy, but the strain, aided by the winter, was catching up with him at last.
Also, he was now forty-three years old.
The mild activity of his command during the sojourn of the troops at Valley Forge could be handled by a subordinate, he felt, so like Henry Knox, equally loyal to Washington, who went to Boston at this time, Morgan received permission to visit his home in Virginia for several weeks.
In his absence, the rifle regiment was under the command of Major Thomas Posey, another able Virginian.

But Morgan did not leave before he had written a letter to a William Pickman in Salem, Massachusetts, apparently an acquaintance, praising Washington and saying that the slanders propagated about him were "opposed by the general current of the people to exalt General Gates at the expense of General Washington was injurious to the latter.
If there be a disinterested patriot in America, 'tis General Washington, and his bravery, none can question".

It is doubtful if Morgan was able to take home much money to his wife and children, for his pay, as shown by the War Department Abstracts of early 1778 was $75 a month as a colonel, and that apt to be delayed.
He was shown a warm welcome regardless, and spent the time in Winchester recuperating from his ailment, enjoying his family and arranging his private affairs which were, of course, run down.
His neighbors celebrated his return, even if it was only temporary, and Morgan was especially gratified by the quaint expression of an elderly friend, Isaac Lane, who told him, "A man that has so often left all that is dear to him, as thou hast, to serve thy country, must create a sympathetic feeling in every patriotic heart".

There must have been special feelings of joy and patriotism in the heart of Daniel Morgan too, when the news was received on April 30th of the recognition by France of the independence of the United States.
His fellow Virginian, George Washington, had stated, "I believe no event was ever received with more heartfelt joy".
The dreary camp at Valley Forge was turned into an arena of rejoicing.
Even the dignified Washington indulged in a game of wickets with some children.
His soldiers on the whole did not celebrate so mildly.
On May 6th, Morgan, who had returned, received from Washington orders to "send out patrols under vigilant officers" to keep near the enemy.
"The reason for this", the orders said, "is that the enemy may think to take advantage of the celebration of this day.
The troops must have more than the common quantity of liquor, and perhaps there will be some little drunkenness among them".

Apparently no serious disorders resulted from the celebration, and within a few days, Morgan joined the force of Lafayette who now had command of some 2,000 men at Barren Hill, not far above Philadelphia on the Schuylkill.
The Frenchman had been ordered to approach the enemy's lines, harass them and get intelligence of their movements.
Interestingly enough, the order transmitted to Morgan through Alexander Hamilton also informed him that "A party of Indians will join the party to be sent from your command at Whitemarsh, and act with them".
These were Oneida Indians.

Washington evidently was anxious for Morgan to be cautious as well as aggressive, for on May 17th, 18th and 20th he admonished the leader of the riflemen-rangers to be on the alert.
Obviously the commander-in-chief had confidence that Morgan would furnish him good intelligence too, for on the 23rd of May, he told Morgan that the British were prepared to move, perhaps in the night, and asked Morgan to have two of his best horses ready to dispatch to General Smallwood with the intelligence obtained.
Meantime, however, this same General Smallwood seemed to be serving chivalry as well as the American army.
Colonel Benjamin Ford wrote to Morgan from Wilmington that he understood a Mrs. Sanderson from Maryland had obtained permission from Smallwood to visit Philadelphia, and would return on May 26th, escorted by several officers from Maryland "belonging to the new levies in the British service".
Ford urged Morgan to capture these men, who, he thought, might be disguised as Quakers or peasants.
Morgan took the suggested steps, but when Mrs. Sanderson appeared, there was nobody with her but her husband, whom he promptly sent to headquarters to be questioned.
But Morgan evidently reported matters of intelligence much more important to his commanding general.
A letter of a few days later from Washington's aide to Morgan stated, "His Excellency is highly pleased with your conduct upon this occasion".