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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, SEPTEMBER 19, 1778

Journals of the Continental Congress, 1774-1789
SATURDAY, SEPTEMBER 19, 1778

A letter, of 18, from John Connolly, was read:²

[Note 2: 2 This letter is in thePapers of the Continental Congress, No. 78, V, 213. With it is a letter to John Hancock, without date, offering to make discoveries.]

Ordered, That it be referred to the committee on the letter of 15, from Mr. Beatty.

A letter, of 13, from Mons. la Neuville, was read:

Ordered, To lie on the table.

The Committee on the Treasury brought in a report; Whereupon,

Ordered, That a warrant issue on the treasurer in favour of James Mease, Esq. cloathier general, for fifty thousand dollars for the use of his department: for which he is to be accountable.³

[Note 3: 3 This report, dated September 18, is in thePapers of the Continental Congress, No. 136, II, folio 569.]

Congress took into consideration the affairs of the treasury and finance; whereupon the committee on finance having made their report, the same was read:

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Your Committee to whom it was referred to consider and Report on the Currency and Finances of these United States, beg Leave to Report:

• 1st. That in the Opinion of your Committee it will be proper to negotiateAgreed 29 Sept. as soon as possible a Loan of five Millions Sterling in Europe.
• 2. That it will be proper to borrow twenty Million Dollars on LoanPostponed 29 Sept. in the confederal Fund at 4 per cent, one fourth redeemable in six, one in seven, one in eight, and one in nine Years, in Specie.
• 3. That it will be proper to borrow ten Million Dollars on LoanPostponed 29 Sept. Office Certificates at 6 per cent Interest, payable every two Years in Europe and redeemable after 4 Years at the pleasure of Congress either with specie or paper.
• 4. That it will be proper to call on the several States toAgreed 6 Oct. pay in their Quotas of ten Million Dollars.
• 5. That it will be proper to promise to the Public that all Bills paidPostponed 6 Oct. in on Loan of Denominations less than eight Dollars shall be destroyed.
• 6. That it will be proper to issue Orders to the Treasurer and othersPostponed 6 Oct. whom it may concern to cause all Bills which by Resolutions of Congress are redeemable in the Year 1780 to be destroyed.
• 7. That the future Emissions of Moneys should be inDisagreed 6 Oct. Bills not less than 40 Dollars and upwards to 100 Dollars.
• 8. That all Limitations of Prices of Gold and Silver be taken off.¹

  [Note 1: 1 Against this paragraph was written "Postponed by Massachusetts the 7th. Question for postponing, ay and no, negatived; on main question, ay."]

• 9. That the States be called on for permanent Funds toSee amendment. Postponed. Second amendment Agd. 9th. the Amount of two Million Dollars annually for ten Years as a sinking Fund.
• 10. That a Poll Tax be laid throughout America of ½ Doll. per Head on all Inhabitants, to be mortgaged also as a sinking Fund until the final Payment of the continental Debt.
• 11. That a Duty of two per cent be laid on Commodities imported, and that all Duties whatever imposed by the several States for regulating their Trade or otherwise be paid to the Continent as a sinking Fund as aforesaid.

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• 12. That the Sum ... of be taken for Postage of letters at the Post Office, and that the Produce of the Revenue thereof be also applied in like manner.
• 13. That the Emissions of the several States be cried down as a Currency and loan office Certificates issued for the Amount.
• 14. That the States be charged with the Sums paid them with the Amount of their Emissions and their Quotas and credited for all their Advances to the United States the Accounts to be adjusted and Interest charged on the Balances at 6 per cent from the 1st. Day of January, 1779.
• 15. That it be declared to the several States that they do not advance any Monies for Account of the United States after the 1st. Day of November, next.
• 16. That the several States be called on to prohibit all private Banks and Lotteries, and to covenant that they will not erect any State Banks or Lotteries.

On the above positions your Committee State the following Estimates:

• ... Dlls.
• 1st Jany., 1779 circulating medium ... 100,000,000
• To 1st. Jany., 1780 Expences ... 20,000,000
• ... 120,000,000
• ... Dlls.
• Bills of Exchange for what remains of 5,000,000 Stg. and what Subsidies may be advanced after paying our Debts in Europe ... 40,000,000
• On Confederal Fund ... 20,000,000
• Loan Office Certificates ... 10,000,000
• Quota of the States ... 10,000,000
• ... 80,000,000
• Remains circulating Medium 1st. Jany., 1780 ... 40,000,000
• ... Dlls.
• Debt by Loan Office Certificates already and by absorbing the Several State Emissions and Debts ... 30,000,000
• On Confederal Loan ... 20,000,000
• On Loan Office Certificates in 1779 ... 10,000,000
• Debt besides 5,000,000 Stg. Jany., 1780 ... 60,000,000

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• ... Dlls.
• Interest on 30,000,000 dollars @ 6 per cent ... 1,800,000
• Interest on 20,000,000 Dollars @ 4 per cent ... 800,000
• Interest on 10,000,000 Dlls. @ 6 per cent ... 600,000
• Yearly interest of the Debt 1st. Jany., 1780 ... 3,200,000
• ... Dlls.
• Produce of the Poll tax ... 1,500,000
• 2 per cent ... 500,000
• Post office
• ... 2,000,000
• Deduct for contingencies ... 500,000
• ... 1,500,000
• States for the sinking Fund ... 2,000,000
• ... 3,500,000

In the above State no notice hath been taken of the Loan of 5,000,000 Stg. in Europe, so far as relates to the Interest; wherefore your Committee proceed to state their Opinions relative to the same.

They propose that the several States having large uncultivated Territory, beyond what is in their Power to govern, be called on to cede the same to the United States on the following Terms.

• 1st. That the present Value of the Territory be estimated and compared with the present value of the Territory now cultivated or the private Property of Individuals, and a deduction made in the Apportionment of the Expences of the War from the Quota of such State, both the Value and Expences to be fairly estimated.
• 2. That it be covenanted with the States that the Lands set off shall be erected into separate independent States, to be admitted into the Union, to have a Representation in Congress, and to have free Governments in which no Officers shall be appointed by Congress, other than such as are appointed through the other States.
• 3. That a Negotiation be set on Foot with the Monarchs of France, Spain and Portugal, to pay or secure the Payment of the Interest of our Loan.
• 4th. That it be attempted to borrow 5,000,000 Stg. in the following Manner, viz.

  That a Tract of Territory containing from twenty to forty Millions of Acres be set off within natural Boundaries, and divided into 10,000 Shares or Lots.

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  That every Person subscribing for £500 Stg. be entitled to a Share, as follows, viz., that if at the End of ten Years Congress shall not pay him £1000 Stg. he shall thereafter in his Option take his Share of the said Lands in Fee; and if the same shall not then be worth 1000 Stg. that he be entitled to the Deficiency which shall be on loan at 5 per cent; and if Congress at the end of ten years shall tender the Money, and he shall not think proper to accept it, then it shall at his Option be at Loan at 4 per cent redeemable in 5 Years.

  That an Office be opened for the Transaction of the Business of the said Loan, and that if any Sales be made of the Lands, the same shall be for Sterling Money, to be paid into the said Office in specie, there to remain as a future Security to the Persons who shall have subscribed as aforesaid; of all which records shall be kept for the Inspection of Persons interested and their Agents.

• 5th. That if the above Method shall not be found expedient or productive of a sufficient Sum, then that it be attempted to borrow 5,000,000 Stg. in the following Manner, viz.

  That another Tract of Territory containing from twenty to forty Millions of Acres be in like Manner as above set off and divided.

  That Subscriptions be taken from 500 Stg. and upwards, the persons so subscribing to receive 4 per ct. Interest and the Principal to be redeemable in four yearly Payments after ten Years.

  That upon Default of Payment the Party have Right to so much Land within the said Boundaries as shall be of full Value of the Debt due to him, to hold the same in Fee.

  That an Office be opened, and on Sales the Money deposited as above.

• 6.thly That if neither of the above Methods shall be found expedient or sufficiently productive, then that it be attempted to borrow 6,000,000 Stg. in the following manner, viz.

  That every Person subscribing thereto shall be entitled to receive 5 per cent Interest and the public Faith of the United States pledged for Redemption of the Principal in four yearly Payments after ten Years.

• 7.thly That in order to expedite the Loan the several Propositions abovementioned be set on Foot together, and as the latter Mode may be preferred, and also as the Loan Office Certificates will require Sums in Europe for Interest, that the Negotiation with France, &c. be for the Interest of 5,000,000 Stg. or 120,000,000 Livres at 6 per cent, or 7,200,000 Livers or 8,000,000 Livres annually for ten Years to be repaid by the United States after that Period. And in order to lay

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  the Foundation of the above Business with Certainty and Despatch, that two Committees be appointed, one to go to the Northward and one to the Southward to negotiate with the Legislatures on the following Points.

• • 1st. To accede to the Confederation.
  • 2nd. To the above Propositions relative to Lands.
  • 3rd. TO the several Propositions relating to a sinking Fund.
  • 4th. To the cancelling the several State Emissions and a Covenant not to issue more.
  • 5th. To the Propositions relating to Lotteries and Banks, and that when the several Propositions abovementioned are agreed to or any of them, that it be referred to a Committee to reduce the same properly to Resolutions.

All which is submitted.¹

[Note 1: 1 This report, in the writing of Gouverneur Morris, is in the Papers of the Continental Congress, No. 25, I, folio 55. A printed copy, from which all figures were omitted, to be filled in in writing, is in No. 26, folio 25.]

Resolved, That sixty copies of the said report be printed for the use of the members, and that the printer be under an oath not to divulge any part of the said report, nor to strike off more than sixty copies, and to deliver to the secretary of Congress the said copies, together with the proofs and unfinished sheets.²

[Note 2: 2 This paragraph, in Thomson's writing, is noted on a Treasury report in the Papers of the Continental Congress, No. 136, II, folio 569.]

Resolved, That the members of the house be enjoined not to communicate the report or any part of it, without leave of the house.

An amendment was moved after "any part of it" to insert "except to the assemblies of the respective States"

A letter, of this day, from the Board of War was read, with a letter of the 17, from Thomas Bradford, deputy commissary of prisoners.³

[Note 3: 3 The letter of the Board of War is in the Papers of the Continental Congress, No. 147, II, folio 269.]

Ordered, That so much of the letter from Mr. Bradford as relates to prisoners taken at sea, be referred to the Marine Committee:

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That so much of the said letter as relates to Mr. Frank's refusal to supply British prisoners with wood or necessary cloathing, be referred to the Board of War.

A report from the Board of War was read, respecting the mode of supplying our prisoners in the hands of the enemy, from time to time, with money:

At A Board Of War,September 18, 1778.

Present, Mr. Peters, Mr. Pickering.

Congress having directed this Board to report a plan for the payment of the Sums, which may from time to time be due to Officers and Soldiers of the United States, for their pay and rations while in captivity, we beg leave to report:

That the Commissary General of prisoners be furnished with Money, from time to time by the Treasury Board, for the purpose of subsisting the Officers and Soldiers of the United States, while in captivity, and in the actual possession of the Enemy, and to accommodate them with sufficient Sums on account, to defray their travelling expenses, to their homes or Regiments.

That the accounts of all prisoners, who shall hereafter be released from captivity, for the pay and subsistence due to them, while in the actual possession of the Enemy, be received and adjusted by the said Commissary General, who, after charging them with the Monies he shall have supplied them, shall certify the Sums due thereon, to the Pay master General, the deputy pay master General of any Military department, or Pay master of the Board of War and Ordnance, as shall be most convenient for the prisoners respectively, which sums shall be paid by the said paymasters upon Warrants to be given therefor as usual for other payments by them made.

That the accounts of all prisoners heretofore released from Captivity, for their pay and subsistence while in the actual possession of the Enemy, and of all prisoners whatsoever, for all matters previous and subsequent thereto, be and they are hereby directed to be settled by the Commissioners of Accounts at Camp, or those where Congress shall sit, according to the convenience of the Prisoners respectively, each Board communicating their Settlements to the other to prevent malpractices or mistakes.

That all officers, while they continue prisoners on parole, shall receive their pay and subsistence, of the paymaster General, or deputy

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pay master General of the department in or nearest to which they reside, by warrant from the Commander in Chief or General officer commanding in the department, or of the paymaster to the Board of War and Ordnance, by warrant from the Board, these subordinate Pay masters to transmit accounts monthly, to the Pay master General of all such payments.

That for defraying the expenses of officers and soldiers released from captivity, on their way home, or to join their regiments, the said Commissary General of Prisoners and Commissioners of Accounts respectively, in settling the accounts aforesaid make an allowance of one Day's Pay and rations for every twenty Miles such Officers and Soldiers had or have to travel to their homes, in case of the expiration of their time of service, or release on parole, or, if otherwise, to join the Regiments.

That the Pay master General, and other persons, having already paid or advanced Monies, to Prisoners, send accounts thereof, immediately to the aforesaid Commissioners of Accounts.

That the Commissary General of Prisoners be allowed a Clerk, to enable him to perform the extra duty above assigned him, to assist him in the usual business of his department, and perform the duties and receive the pay and rations of a deputy Commissary of Prisoners.¹

[Note 1: 1 This report is in thePapers of the Continental Congress, No. 147, II, folio 265. It is endorsed as passed January 9,1779.]

Ordered, That the consideration thereof be postponed.

The President laid before Congress the letters which he had received some time ago, and of which he had informed Congress upon the receipt thereof and afterwards, when he desired to know the sense of the house concerning them, as some of them were not directed to him as President, but as delegate from South Carolina, and all contained matters of private as well as public nature, and of which Congress declined to receive extracts:

Ordered, That they be read.

The same were read, and are as follows:²

[Note 2: 2 This paragraph, in Thomson's writing, is noted on a Treasury report in thePapers of the Continental Congress, No. 136, II, folio 569.]

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A letter, of 24 November, 1777, from A. Izard:

One of 16 February, 1778, from hon. Ra. Izard, Esq. enclosing copy of his letter of 28 January, to Dr. Franklin, Dr. Franklin's answer of 29, and his reply 30th, of the same month:¹

[Note 1: 1 These letters are printed in Wharton,Revolutionary Diplomatic Correspondence, II, 477--480, 497, 547.]

A letter, of I March, 1778, and one of 1, and one of 11 April [1778], from the same:

Ordered, That they lie on the table.

Adjourned to 9 o'Clock on Monday.

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