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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 --FRIDAY, JUNE 11, 1779
A letter, of the 9th, from J. Read, president of the State of Pennsylvania, to the delegates of the said State, was laid before Congress:2
[Note 2: 2 This letter is in thePapers of the Continental Congress, No. 69, II, folio 77.]
Ordered, That it be referred to the committee appointed to prepare a plan for regulating the departments of the quarter master and commissary general; and that the committee confer with the supreme executive council of Pensylvania thereon, and report on Monday next.
The committee, to whom were referred sundry plans relative to finance, brought in a report, which was taken into consideration; and thereupon,
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Resolved, That 20 millions of dollars, or such a part thereof as shall be brought into the continental loan offices on or before the first day of October next, be borrowed on the faith of the United States of America, at an interest of six per cent. per annum.
For facilitating the said loan,
Resolved, 1. That the loan officers in every State do immediately open subscriptions for the said loan:
2. That the executive authorities of the several states be requested immediately to appoint persons of character and influence in every county, town or district, to receive subscriptions and transmit the same to the loan officer or officers in the states respectively:
3. That no subscription be received for less than five hundred dollars:
4. That all subscriptions under ten thousand dollars shall be paid into the loan office where the same shall be subscribed, or into the hands of the person obtaining the subscription, within 14 days after the subscription shall be made:
And every subscriber failing, shall be subject to have his name published in the gazettes as having failed to perform his engagement, unless it shall appear that he has been prevented by unavoidable accident.
5. That any person subscribing ten thousand dollars, or upwards, shall be allowed to pay the same at two periods, to wit, one half within 14 days after the subscription, the residue on or before the 1st day of October next: the whole to bear interest from the time of the first payment, provided the other payment shall be punctually made:
6. That each lender1 shall have his election either to receive
[Note 1: 1 The original report contained the following "of a sum not less than five hundred dollars, who shall pay the same into the loan office where the same shall be subscribed, or into the hands of the person obtaining the subscription, before the first day of October next," &c.]
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the principal at the expiration of three years from the date of the loan, or to continue it in the funds on interest until the whole amount of continental bills circulating shall not exceed the sum in circulation at the time of the loan.1
[Note 1: 1 The original report, read "amount of continental bills outstanding shall be diminished by the sinking fund one eighth part at the least, than at the time of lending."]
On the question to agree to the foregoing [sixth] resolution, the yeas and nays being required by Mr. [Meriwether] Smith,
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So it was resolved in the affirmative.
7. That interest on all sums which shall be paid into the loan office before the said first day of October, or which
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shall be subscribed and paid agreeably to the terms of the 5th resolution aforesaid, shall be payable annually at the continental loan office of the State in which the money was originally subscribed:1
[Note 1: 1 The original report added: "or at the office where Congress shall be sitting when the same shall become due."]
8. That the securities to be given for all sums so borrowedRepealed shall be made payable to the lender, or to his special attorney, executor or administrator.2
[Note 2: 2 The paragraph was adopted on June 11. See also p. 729post.]
9. That as soon as the said twenty millions of dollars shall be subscribed, and all the first payments of the several subscriptions shall be made, no more bills of credit be issued on the credit of the United States,and Congress will rely on the States for future supplies. Congress finding it highly expedient to continue such emissions, and absolutely necessary to rely on the States for furnishing all future supplies by taxes, loans, contributions. or such other means as they may find most expedient.
8. That the loan officers shall transmit to the Board of Treasury by every postan account monthly returns of all sums subscribed and received in their respective offices,and that the Board of Treasury cause the same together with the names of the lenders to be published.
10. That it be recommended to the several States to give effectual encouragement for the bringing in of money to anticipate the Taxes which may be necessary for defraying the quota of Continental Expences, to the end, that such as may be disposed to pay Taxes for several future years in one present payment, may find an interest and convenience in such payment.
11. But if, contrary to expectation, it should so happen that at the time the Interest on the said Loan shall become due a greater quantity of Continental paper money should be outstanding than at the time of lending the same, in such case, the Interest shall be raised in proportion.
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12thly. It is the intention of Congress not only to avoid new, [but] by every means in their Power to decrease the Quantity of paper money in circulation.1
[Note 1: 1 This report, in the writing of Thomas Burke, is in thePapers of the Continental Congress, No. 29, folio 155. This paragraph is in the writing of James Duane.
On folio 159 is a manuscript of Thomas Burke which is probably the first form of this report. On the last sheet, in the writing of Philip Schuyler, are notes of ten paragraphs. This paper is as follows:
"Resolved that subscriptions be opened by all the loan officers of these United States for borrowing in each State to the amount of their respective quotas of the Taxes required by the Resolutions of theday ofandday ofon the terms following to wit.
"No subscription to be received for less than the sum ofDollars. Every sum subscribed to be paid into the hands of the loan officer with whom the subscription shall be made withindays after making the subscription, and on failure the subscriber to be subject to have his name published as having failed to comply with his subscription. All the money borrowed on the said subscriptions to bear an interest of 6 per cent per annum payable every six months at the office where the money was originally subscribed or at the loan office where Congress shah be sitting at the time it shall become due.
"Every person who shall subscribe one hundred thousand dollars to be allowed to make payment one half withindays from the time of making the subscription, the other within three months after, the whole to bear interest from the time of the first payment, if the second shall be punctually paid. The lender shall not be obliged to receive his principal until the quantity of paper money in circulation is reduced by taxation or otherwise 25 per cent less than what was in circulation when the money was lent.
"That it be recommended to the States to exempt from taxation the principal of all such sums as shall be subscribed and paid on the loans aforesaid.
"That the names of all such persons as shall subscribe to the loan aforesaid together with the sums respectively subscribed be published in all the gazettes of the United States.
"That it be recommended to the States to appoint persons of weight and character in every town County or district to receive subscriptions for the loans aforesaid to be transmitted to the Loan offices Respectively.
"That certificates be delivered to every subscriber payable on the said first day of January 1781 of the same formmutatis mutandis with certificates, given for the money of the emissions of May 20th. 1777 and April 11 1778 which is to be exchanged.
"1. Borrow 20 millions to be paid in three years.
"2. Assure Lenders of certain sums say 500 dollars and upwards, that they will not be obliged to receive principal until currency appreciates to a certain degree.
"3. Receive subscriptions for the loans payable in [] days after subscribing.
"4. Allow all Lenders ofthousand dollars to pay in several payments suffering interest to run on the whole from the first payment if the other payments are punctually made.
"5. Interest to be paid every six months.
"6. Names of Lenders to be published.
"7. Recommend to employ men of weight and influence to forward Loans.
"8. Give such Certificates as may not be negotiated.
"9. Give assurance that emissions shall be discontinued as soon as a sufficient sum shall be subscribed for the present campaign.
"10. Anticipation of Taxes by the States."]
9. That as Congress are bound by every motive of policy, and of public and private justice, to maintain the credit of the paper money emitted by their authority, on the faith of the United States; so it is their intention not only to avoid further emissions, but to diminish the quantity in circulation, provided that the respective states, by correspondent and vigorous exertions, shall put it in their power to raise the necessary supplies.
Adjourned to 10 oClock to Morrow.
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