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A Century of Lawmaking for a New Nation: U.S. Congressional Documents and Debates, 1774-1875
Sir, Annapolis Mar. 30. 1784.
Your very interesting Letter of the 17th Inst. with the Accounts Inclosed having been Committed to a grand Committee Consisting of a Member from each State on the floor of Congress--they have lost no time in deliberating on the Steps proper to be immediately taken by Congress for securing the public Credit & preventing the fatal Effects that must necessarily arise from a protest for Non-payment & return of your Bills from Holland especially shou'd the United States be found without funds for the Immediate repayment of the Amount of such Bills & the Charges accruing.(1)
The Committee being of opinion that the subject is of too great Moment to admit of delay Conceive it is their duty to suppose for the present that the Bills are actually protested for Nonpayment & may shortly be returned and on that presumption to see what means Can be made Use of in this Country for satisfying the Holders on the arrival of the protests.
The first Sources that present themselves as likely to afford immediate Relief are the public Banks. That at Philadelphia having (As is understood here) very greatly increased its Subscriptions and others opening at Baltimore, New York & Boston on very Considerable Capitals, The Committee wish to know Your opinion on the probability of obtaining a Loan from them or any of them.
The Grand Committee relying on your wisdom & zeal for the public good Wish as soon as possible to be furnished with Your thoughts at large; On the Expediency of Attempting from the American Banks a loan of such sum as may be Necessary in Case of the Actual protest for Nonpayment of your Bills on Holland; On the premium to be offered for Obtaining such loan--And on the form & mode of issuing public Securities for the Same.
Page 467
MARCH 30, 1784
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To give you as Clear an Idea of the Views of the Committee as possible for your assistance in forming the plan--it may be proper to inform you that the grand Committee think for the present that the Securities shoud be in Notes payable at proper periods and bearing an Interest of Six pr. Ct. (It may also be Necessary to give a premium to Induce the Loan, on the Quantum and Manner of Which we ask your advice). The Committee are of opinion that these Notes shall be paid out of the first Money Coming into the Treasury (unless a longer Credit can be gained.) In the Mean time they have it in Idea to advise Congress to press upon the States the Necessity of immediately taking the most Effectual Measures for supporting the Public Credit & averting threatened Evils that wou'd arise from a declared Bankruptcy. A copy of the letter written by the President to the several Executives is herewith transmitted you.
I am Sir, Your Most obedt Humbl Sert.
Chairman of the Grand Committee (2)
FC (DNA: PCC, item 137). In the hand of Jacob Read with alterations by Thomas Jefferson. Jefferson, Papers (Boyd), 7:53-55.
1 When Morris' letter to Pres. Thomas Mifflin on the "State of his department" was read in Congress on March 27, the Massachusetts delegates moved that it be referred to a grand committee with instructions "to revise the institution of the treasury department & report such alterations as they may think necessary." Chaired by Thomas Jefferson, the grand committee immediately appointed a subcommittee consisting of Jefferson, Jacob Read, and Elbridge Gerry to draft this letter to Morris and a circular letter from the president of Congress to the state executives, the latter of which was submitted this day for Congress' approval. See JCC, 26:172-73; PCC, item 186, fol. 153; and Thomas Mifflin to the States, April 1, 1784. For Morris' March 17 letter to Mifflin and April 8 reply to the committee, see PCC, item 137, 3:873-76, appendix, fols. 345-51; Morris, Papers (Ferguson), vol. 8 (forthcoming); and Jefferson, Papers (Boyd), 7:85-86. The grand committee delivered its report on April 8 and its draft ordinance for converting the treasury department to a three man board following Morris' resignation was read May 7 (the day Samuel Hardy replaced Jefferson on the committee), 11, and 27. The final version was adopted after prolonged debate on the 28th. See JCC, 26:356-57; 27:437-39, 465-71; and PCC, item 31, fols. 247- 53.
2 Between April 1 and mid-May the grand committee of March 27 was also instructed to report on other items of business before Congress, among which were: (1) on April 8--a January 1784 Connecticut act seeking Continental credit for expenses incurred by the state in the defense of New London, and letters from Gov. John Hancock of October 28 relating to Continental bills of old emission and of December 18, 1783, respecting Massachusetts' Penobscot expedition expenses; (2) on May 4--Robert Morris' April 29 letter regarding irregularities in the loan offices; (3) on May 10--a motion of the New York delegates concerning payment of Continental tax receivers; and (4) an undated motion of Elbridge Gerry on Massachusetts' ox team contractors in the 1781 campaign. The grand committee issued at least three separate reports which were considered on May 17. Portions of the reports were adopted June 1. See JCC, 26:364, 27:194-96, 406-7, 506-8, 722-23; and PCC, item 20, 1:163-65, item 22, fols. 191-92, item 29, fols. 209-13, item 36, 2:381, item 65, 2:225-27, item 137, 3:561-69, item 186, fols. 156, 161. For the first item listed above, see also Roger Sherman's Draft Resolve, April 8, 1784.
Page 468
MARCH 31, 1784
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