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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, MARCH 18, 1780
A memorial of Captain B. Van Herr, was read:1
[Note 1: 1 A contemporaneous copy of this memorial is in the Letters to Washington, No. 49, folio 289.]
Ordered, That it be referred to the Board of War.
A report of the Board of Treasury was read; Whereupon,
Ordered, That a warrant issue on the treasurer, in favour of George Bond, deputy secretary of Congress, for six thousand dollars, on account of his salary, and for which he is to be accountable.
That on the application of the Medical Committee, the following warrants issue in favour of Jonathan Potts, surveyor general of the hospitals, for the use of his department; and for which, amounting to forty six thousand nine hundred dollars, he is to be accountable; viz.
One on the treasurer, for ten thousand dollars, and,
One on Thomas Smith, commissioner of the loan office for the State of Pennsylvania, for thirty six thousand nine hundred dollars.
That on the application of Charles Pettit, assistant quarter master general, on account of Major General Greene, Q. M. G. a warrant issue in his favour on Samuel Patterson, treasurer of the State of Delaware, for two hundred thousand dollars (being part of the monies raised in the said State for the use of the United States); and for which the said quarter master general is to be accountable.2
[Note 2: 2 This report is in the Papers of the Continental Congress, No. 136, IV, folio 141.]
That a warrant issue on the treasurer, in favour of Josiah Hewes of the city of Philadelphia, merchant, for the sum of fifteen thousand dollars, to discharge the first bill of exchange drawn on the said treasurer by his excellency Richard Caswell, governor of the State of North Carolina, dated the 6th of August, 1778, and in consequence of a resolution
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of Congress, of the 25 of November, 1777; for which sum Governor Caswell is to be accountable.1
[Note 1: 1 This report is in the Papers of the Continental Congress, No. 136, IV, folio 145.]
Congress resumed the consideration of the report of the Committee of the Whole, and a motion being made by Mr. [Thomas] Burke, seconded by Mr. [Allen] Jones,
That the states be requested to pass laws enabling Congress to levy an impost of one per cent on all exports and imports, as a fund for sinking the emissions for carrying on the present war, to continue until a sum equal to the whole of the said emissions shall be collected.
The previous question was moved by Mr. [Thomas] McKean, seconded by Mr. [James] Lovell, on which the yeas and nays being required by Mr. [Thomas] Burke,
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So it was resolved in the affirmative and the main question was set aside.
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Congress proceeded to the consideration of the report, which being debated by paragraphs was agreed to, as follows:
The Committee to whom were referred sundry papers relating to the state of the publick finances, beg leave to report that
Congress having been driven into this just and necessary war at a time when no regular civil governments were established of sufficient energy to enforce the collection of taxes, or to provide funds for the redemption of such bills of credit as their necessities obliged them to issue, and before the powers of Europe were sufficiently convinced of the justice of their cause, or the probable event of the controversy, to venture to afford them aid or credit: which bills, omitted under the circumstances above mentioned were in their nature, as the event has shown, liable to depreciate; and are in fact sunk notwithstanding the purest intentions and repeated exertions to support them, so low as to be now current by common consent at less than 1/40 part their nominal value, and still remain in a state of uncertainty and fluctuation; whereby groat mischiefs and distress ensue to the community, the publick finances are deranged, and the necessary dispositions for defence of the country greatly impeded and embarrassed; which evils are the more intollerable as America has it now in herpower to extricate in herself out of them, as her Independance is now well assured, her citizens yet ardent for exertion: and whereas, the means essentially necessary, as it is apprehend, to give the same stability to the paper medium now as in former times, are to reduce the quantity to its former limits, and to place it on funds to be establised and granted by the legislatures of the several states for that purpose; Therefore,
These United States having been driven into this just and necessary war, at a time when no regular civil governments were established, of sufficient energy to enforce the collection of taxes, or to provide funds for the redemption of such bills of credit as their necessities obliged them to issue; and before the powers of Europe were sufficiently convinced of the justice of their cause, or of the probable event of the controversy, to afford them aid or credit, in consequence of which,
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their bills increasing in quantity beyond the sum necessary for the purpose of a circulating medium, and wanting, at the same time, specific funds to rest on for their redemption, they have seen them daily sink in value, notwithstanding every effort that has been made to support the same; insomuch that they are now passed, by common consent, in most parts of these United States, at least 39--40ths below their nominal value, and still remain in a state of depreciation, whereby the community suffers great injustice, the public finances are deranged, and the necessary dispositions for the defence of the country are much impeded and perplexed; and whereas, as effectually to remedy these evils, for which purpose the United States are now become competent, their independence being well assured, their civil governments established and vigorous, and the spirit of their citizens ardent for exertion, it is necessary speedily to reduce the quantity of the paper medium in circulation, and to establish and appropriate funds that shall ensure the punctual redemption of the bills; therefore,
That the resolutions of the 23d day of February, so far as respects relinquishing to the states two thirds of the quotas assigned them by the resolution of october, 1779, be repealed.
That the states be called on to continue their said quotas of fifteen million dollars monthly, to the month of April, 1781, inclusive.
Resolved, That the several states continue to bring into the continental treasury, by taxes or otherwise, their full quotas of fifteen million dollars monthly, as assigned them by the resolution of the 7th of October, 1779; a clause in the resolution of the 23d of February last, for relinquishing two-thirds of the said quotas, to the contrary notwithstanding; and that the states be further called on to make provision for continuing to bring into the said treasury their like quotas monthly, to the month of April, 1781, inclusive:
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That silver and gold be receivable in payment of the said quotas, at the rate of one Spanish milled dollar in lieu of 40 dollars of the bills now in circulation.
That the said bills, as paid in, except for the months of January and February past, which may be necessary for the discharge of past contracts, be not re-issued, but destroyed.
That the specie paid in on said quotas be appropriated [Rejected.] solely to sinking the bills.
That as fast as the said bills shall be brought in to be destroyed, and funds shall be established, as hereafter mentioned, for other bills, other bills be issued, not to exceed, on any account, one-twentieth part of the nominal sum of the bills brought in to be destroyed.
That the bills which shall be issued, be redeemable in specie, within six years after the present, and bear an interest at the rate of five per centum per annum, to be paid also in specie at the redemption of the bills, or, at the election of the holder, annually, at the respective continental loan offices, in sterling bills of exchange, drawn by the United States on their commissioners in Europe, at four shillings and six pence sterling per dollar.
That the said new bills issue on the funds of individual states, for that purpose established, and be signed by persons appointed by them, and that the faith of the United States be also pledged for the payment of the said bills, in case any State on whose funds they shall be emitted, should, by the events of war, be rendered incapable to redeem them; which undertaking of the United States, and that of drawing bills of exchange, for payment of interest as aforesaid, if demanded, shall be endorsed on the bills to be emitted, and signed by a commissioner to be appointed by Congress for that purpose.
That the face of the bills to be emitted read as follows, viz.
The possessor of this bill shall be paidSpanish milled dollars, by the 31 day of December, 1786, with interest, in like money, at the
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rate of five per cent. per annum, by the State of,according to an act of the legislature of the said State, of theday of, 1780.
And the endorsement shall be as follows, viz.
"The United States of America will pay this bill according to the face it, if the State of [Postponed.] should by any means fail of its exchange on their commissioners in Europe, at four shillings, six pence sterling, per dollar, if desired, agreeable to a resolution of Congress of theday of March, 1780."
The United States ensure the payment of the within bill the and will draw bills of exchange for the interest annually, if demanded, according to a resolution of Congress of the 18 day of March, 1780.
That the said new bills shall be struck under the direction of the Board of Treasury, in due proportion for each State, according to their said monthly quotas, and lodged in the continental loan offices in the respective states, where the commissioner to be appointed by Congress, in conjunction with such persons as the respective states appoint, shall attend the signing of the said bills; which shall be compleated no faster than in the aforesaid proportion of one to twenty of the other bills brought in to be destroyed, and which shall be lodged for that purpose in the said loan offices.
That as the said new bills are signed and compleated, the states respectively, on whose funds they issue, receive six-tenths of them, and that the remainder be subject to the orders of the United States, and credited to the states on whose funds they are issued, the accounts whereof shall be adjusted agreeably to the resolution of the 6th of October, 1779.
That the said new bills be receivable in payment of the said monthly quotas, at the same rate as aforesaid of specie; the interest thereon to be computed to the respective states, to the day the payment becomes due.
That the respective states be charged with such parts of the interest on their said bills, as shall be paid by the United
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States, in bills of exchange; and the accounts thereof shall be adjusted agreeably to the resolution aforesaid, of the 6th of October, 1779.
That whenever interest on the bills to be emitted shall be paid prior to their redemption, such bills shall be thereupon exchanged for others of the like tenor, to bear date from the time of such exchange expiration of the year for which such interest is paid.
That the several states be called on to provide funds for their quotas of the said new bills, to be so productive as to sink or redeem one sixth part of them annually, after the 1st. day of January next.
That nothing in the foregoing resolutions shall be construed to ascertain the proportions of the expence incurred by the war, which each state on a final adjustment ought to be charged with, or to exclude the claims of any State to have the prices at which different states have furnished supplies for the army hereafter taken into consideration and equitably adjusted.
That the foregoing resolutions, with a letter from the President, be despatched to the executive of the several states, and that they be requested to call their assemblies, if not already convened, as speedily as possible, to take them into immediate consideration, to establish ample and certain funds for the purposes therein mentioned, and to take every other measure necessary to carry the same into full and vigorous effect, and that they transmit their acts for that purpose to Congress without delay.1
[Note 1: 1 This report, in the writing of Oliver Ellsworth, is in the Papers of the Continental Congress, No. 26, folio 149.
An amendment, in the writing of Robert R. Livingston, endorsed: "Withdrawn" in the Papers of the Continental Congress, No. 26, folio 159, is as follows:
1 That the monthly tax to the 1st day of October next be levied agreeable to the resolution of the 6th day of October last.
That from thenceforward annually after the present year taxes be imposed to be levied quarterly equal to one third of the former emissions of the continental bills of credit which may be then in circulation.
2 That silver, &c.
3 That one half of the Bills so brought in by taxes be destroyed.
4 That as soon as the bills are brought in and destroyed as aforesaid, or funds are established as herein after mentioned by one or more states, other bills be issued upon the credit of such funds equal to the amount thereof not to exceed on any account one twentieth part of the bills brought in and destroyed and the money in circulation calculated at forty dollars of the bills now in circulation for one in specie, so that the whole debt shall on no account exceed 10,000,000 of dollars in specie.]
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On passing the foregoing resolutions, the yeas and nays were required by Mr. [Allen] Jones,
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So it passed in the affirmative.
A report from the Board of War was read; Whereupon,
At a Board of War, March 18, 1780
Present Col. Pickering, Mr. Peters, Col Grayson
Mr. Morris, an assistant commissary of purchases in the State of New Jersey, has in his possession about 70,000 lbs. of pork salted in bulk, but which it is necessary to pack and salt up in barrels immediately. The delay of a few days at this season, will endanger the loss of the whole. As it lays in Jersey, and is easy to be transported
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to the army, 'tis of the greater importance to preserve it. It was laid in at three dollars a pound, the price of pork now is six dollars. If it perishes, the whole loss will fall on the United States. This pork when barrelled will be worth upwards of 400,000 dollars--and to render it of that value to the United States, 10,000 dollars only are wanting to procure the barrels and pay the packers. Salt is already provided. The case is pressing. The board beg leave to recommend the following resolve,
That Ten thousand dollars be immediately advanced to Mr. Israel Morris, Assistant Commissary of Purchases to the paymaster o the paymaster of the Board of War and Ordnance, to enable the said Board to preserve a quantity of pork, the property of the United States.1
[Note 1: 1 This report is in the Papers of the Continental Congress, No. 147, IV, folio 255.]
Ordered, That a warrant issue on the treasurer, in favor of Joseph Carleton, paymaster of the Board of War and Ordnance for ten thousand dollars, to be applied under the direction of the said Board for preserving a quantity of pork in New Jersey.2
[Note 2: 2 This report is in the Papers of the Continental Congress, No. 136, IV, folio III.]
Adjourned to 10 o'Clock on Monday.
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