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A Century of Lawmaking for a New Nation: U.S. Congressional Documents and Debates, 1774-1875
Journals of the Continental Congress --SATURDAY, FEBRUARY 8, 1777
A letter, of the 4th, from the committee of Congress, at Philadelphia; one, of the 31 January, from General Washington, at Morristown; one, of the 3d instant, from Governor Livingston, at Haddonfield, New Jersey; one, of the 31 January, from Messrs. Walton and Taylor, at Easton.
One, of the 23 January, from General Schuyler, at Albany, with sundry letters and papers enclosed.
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And one, of the 24 of January, from D. Waterbury, were read1 and referred to the Board of War.
[Note 1: 1 The letter of the Philadelphia Committee is in the Papers of the Continental Congress, No. 137, Appendix, folio 137; that of Washington is in No. 152, III, folio 513. It is printed in Writings of Washington (Ford), V, 210. The letter of Livingston is in No. 68, folio 239; that of Schuyler, in No. 153, III, folio 43; and that of Waterbury, in No. 78, XXIII, folio 353.]
Resolved, That Dennis Griffith be appointed a signer of the bills of credit, in addition to those already appointed.
The Committee of Treasury reported, that they have examined the account of George Lindenberger, for conveying the Hessian officers and their servants, prisoners from Baltimore town, to Dumfries, in Virginia; and that his account amounts to the sum of £192 12 3, of which he received of the treasurer, £112 10, and that there is a balance due him, of £49 11 9, equal to 132 21/90 dollars:2
[Note 2: 2 This report is in the Papers of the Continental Congress, No. 136, I, folio 27.]
Ordered, That the said accounts be paid.
Resolved, That the sum of 12,600 dollars be paid to George Noarth, Esq. and charged to the account of William Palfrey, Esq. pay master general, the same being in full of an order in his favour, drawn by the said William Palfrey, dated Newton, 22d. January, 1777.
Resolved, That 200,000 dollars be sent to the committee of Congress, in Philadelphia, for public service; they to be accountable.
Whereas the medium Interest given for money lent in the United States, exceeds the sum formerly proposed by Congress on their Loan Office Certificates, and it being necessary that a general Regulation should take place, and whereas it is expected by Congress that every friend to America will exert himself to supply the loan office with this necessary article essential to the establishment of the liberties of the United States,
It is therefore, Resolved, that six per cent. per annum be allowed as well on each certificate already issued as on those that may hereafter issue, notwithstanding it may appear on the Face thereof, that
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the lender is entitled to an annual Interest of but four per cent; and it is recommended to the several States [to] provide Laws prohibiting a higher Interest on Money borrowed in such States than is offered by Congress in this Resolve.1
[Note 1: 1 This motion, in the writing of Elbridge Gerry, is in the Papers of the Continental Congress, No. 36, I, folio 3. A fair copy is on folio 1, with the endorsement "A motion agitated on Saturday and Monday, Feby. 8 and 10, 1777. House equally divided."
"Motion for offering 6 per cent in the Loan Office.
For it,--was agreed the necessity of money for carrying on the war, which four per cent had not yet procured, the expediency of borrowing on this interest to prevent further emissions, and of alluring moneyed men to embark in our interest. Against it.--that the public, being the only borrower, must get the money at the interest already offered, if there was any to be lent; that those who withheld money, only did it in hopes our necessity would compel us to give a higher interest, and that they would withhold it as long as they had any prospect of forcing us to offer higher interest: that the interest would be a heavy and unequal burthen on the State, because those who now possess the money would lay the rest under a heavy tax under the name of interest; that there was little money to be borrowed, because men speculated and found they could lay it out to better advantage; that the necessity for money made it more expedient to seek a more certain resource. The delegate of North Carolina could not be satisfied that Loan Office certificates, and bills of credit, where both had the same security for their redemption, were not in effect the same thing: he therefore thought Loan certificates another emission in bills of another denomination, with this unjust inequality, that one part of the community would thereby be taxed for the others. He also thought that much money would not be borrowed on them at any interest, unless it was for the more convenient purposes of exchange, and he thought it would give our enemies too convenient a machine for affecting our hopes and fears. He would vote against a Loan altogether if it were now the question, and the same reasons induced him to vote against the increase of interest. Question put, Aye 5; no, 5. Aye, New Hampshire, Massachusetts Bay, New Jersey, Pennsylvania, Virginia. No--Rhode Island, Connecticut, North Carolina, Georgia, S. Carolina." Burke's Abstract of Debates. North Carolina Colonial Records, XI, 389.
"Feby 8th. An adjournment to Philadelphia was moved for and postponed A Resolve was moved for offering 6 pct. Interest in the Loan Office the Debate took up greatest part of the Day, and the determination was postponed at the request of Connecticut.
"The Arguments chiefly were that money was absolutely Necessary for carrying on the War, that four per ct which was already offered could not procure it and it was therefore Necessary to Increase the Interest. that this mode was more eligeable than a farther Emission because it would draw out of Circulation that superfluous quantity which occasioned the Rise of all prices. that the allowing monied men to embark in one Common Interest with the other orders of men would greatly add to the Security of our Independence.
"In answer it was urged that the Offering a higher Interest would not more certainly procure the money. for those who had it to lend would find no borrower but the public--and those who had not could not lend it on any Interest that the Interest would be an Accumulating Debt (if it could be borrowed) under which the Country must Sink. that the States would be very unequally burthened because those who now possessed the greater part of the Money would lay the other States under a heavy Tax to them under the name of Interest, that [] there were in the Country no money Lenders [] man found that every day's Occurrences []
"Opportunities of laying out his money to much greater advantage, that however Necessary the money might be it was still the more Necessary to fall on some Expedient that might procure it with certainty, that the Increase of Interest having been tried in many States without Effect very clearly proved money was not to be borrowed. North Carolina urged that it was a clear Truth that money was Necessary, it was equally clear that it was advisable to prevent further Emissions and to reduce the quantity in circulation if it was possible to Effect it. the Delegate declared that when he offered his thoughts before that Illustrious assembly he did it with the greatest Diffidence and deference that he should not trouble them with any on so abstruce and Intricate a Subject as the present, but that he perceived the matter had not Struck any other in the same point of View that it did him, that he felt himself Oppressed with the weight of the Question, and having the misfortune Singly to have the vote of one State to give he wished to do it on Established Principles, and the clearest conviction, he therefore beged their Indulgence and candor if he should offer objections which had been answered in some former Debates (for there had been many on that Subject) which he had not the Good fortune to Hear.
"He urged that he had not been able to derive any Satisfactory Information from the Debate that the money could be had by way of Loan on any Interest, or that money raised by way of Loan would not be a further Emission in Effect, that he perceived there were few or no money lenders in the Country. that Farmers and Gentlemen speculated, and reserved their [] for purchases, and Merchants, always relyed on employing." Burke's Abstract of Debates, MS.]
The several matters to this day referred, being postponed,
Adjourned to 10 o'Clock on Monday.
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