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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 --MONDAY, DECEMBER 18, 1780
A letter, of 8th, from General Washington, and
A letter, of 16th, from Brigadier General Irvine and Colonels Mathews and Ely, with sundry papers enclosed:
Ordered, That they be referred to a committee of three:
The members, Mr. [John] Sullivan, Mr. [John] Mathews, Mr. [Theodorick] Bland.
A letter, of 13th, from General Washington was read:
Ordered, That it be referred to the Board of War
A letter, of 16, from R. Bache, postmaster general, was read:
Ordered, That it be referred to the Committee on the Post Office.
That two members be added to that committee:
The members, Mr. [William] Floyd, Mr. [John] Witherspoon.
A letter, of 28 November, from Abr: Yates was read.
A letter, of the 10, from Brigadier J. Stark was read:
Ordered, That it be referred to the Commander in Chief to take order.
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A letter, of 2d, from P. Schuyler was read:1
[Note 1: 1 Washington's letter of the 8th is in the Papers of the Continental Congress, No. 152, IX, folio 385; Irvine, Mathews and Ely's letter is in No. 78, XIII, folio 191; Washington's letter of the 13th is in No. 152, IX, folio 397; Yates's letter is in No. 78, XXIV, folio 663; Schuyler's letter is in No. 153, III, folio 551.]
Ordered, That it be referred to the Board of War.
A petition of George Fisher, baker, was read:2
[Note 2: 2 This petition, dated December 18, 1780, is in the Papers of the Continental Congress, No. 42, III, folio 61.]
Ordered, That it be referred to a committee of three:
The members, Mr. [Thomas] Burke, Mr. [William] Burnet, Mr. [Jesse] Root.
The committee appointed to prepare instructions;
The committee for regulating the finances of the United States; and
The Committee for regulating the Finances of America &c. &c beg leave to report.
That to establish the national credit furnish a proper circulating medium support the credit of the bills issued by the States in pursuance of the act of Congress passed the 18th. of March last it will be necessary for the Confederation to be ratified.
The exclusive right to duties arising on certain imported articles herein after mentioned to be vested in Congress.
The old Continental Bills taken out of circulation.
The States called upon to establish funds for redemption of the new Bills.
That every reasonable encouragement be given to exportation. High duties laid upon all articles of luxury imported.
That Congress be vested with a power of laying Embargoes in time Of war.
And that a loan be solicited from the Inhabitants of these States to the amount of six millions of dollars in specie to supply the deficiency of a circulating medium which has happened by some of the States being unable to call in their Quotas of the old Emissions and establishing funds to support the credit of Bills of the new Emission.
That the specie so obtained be deposited in a Bank for the purpose of effectually supporting the credit of the New Bills and redeeming such Bank notes as may be issued thereon agreeable to the plan hereafter proposed.
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Your Committee therefore beg leave to submit the following resolutions viz.
Resolved, That the State of Maryland be requested to accede to the Confederation on or before the last day of March next, and in case of neglect or refusal that the other twelve States be called upon to confederate independent of that State.
That it be recommended to the States respectively to pass laws establishing funds for paying the interest and redeeming the Bills emitted in consequence of the act of the 18th. of March last Postponed which funds are not to be altered or the laws establishing the same repealed but by advice or consent of Congress until the redemption of said Bill is compleated.
That for enabling Congress to restrain the importation of Foreign articles of lux; being the ballance of trade in favor of the United States, and support the credit of a paper medium. It be recommended to the respective States as indispensibly necessary Agreed that they pass laws granting to Congress for the use of the United States from the first day of May next four pr cent upon the value of all goods, as well prize goods as others at the time and place of importation, duties upon all articles of Foreign growth or manufacture which may be imported into either of the States from any Foreign Port Island or Plantation after the said first day of May 1781.
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Resolved, that the above duties be paid in specie at the rate of six shillings per Dollar or coined silver at six shillings and eight pence per ounce which shall be the standard of calculation Postponed throughout the United States.
Resolved, That it be recommended to the Legislatures of the several States, to take effectual measures for calling in and cancelling their Quotas of the Bills of credit issued by Congress Postponed previous to the 18th. day of March last agreeable to and by the time mentioned in the act of Congress of that date or sooner if possible in order that such Bills may have no further circulation in any State after its Quota shall be called in and cancelled. And to establish permanent and substantial funds (where it is not already done) for redemption of the new Bills, issued agreeable to the before mentioned act. And to take every possible measure for supporting the credit of the new Bills.
And that it be further recommended to the respective Legislatures to call out of circulation as soon as shall be consistent with their Agreed public faith pledged by their acts for emitting the same Agreed all their State emissions and not to issue any more but by advice or consent of Congress that the paper bills in circulation flowing from one source may be readily ascertained.
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That in all debts due to or from the United States Congress will receive and pay the bills of credit omitted pursuant to the act of the 18th. of March last equal with silver and gold.
Resolved, That it be recommended to the respective Legislatures, to pass laws impowering Congress to lay Embargoes in time of war and that when Embargoes are not laid they give all just Postponed and reasonable encouragement to exportation and use all means in their power to prevent the importation of Foreign Articles of luxury.
That in order to procure a Loan of six millions of dollars in specie: a subscription be immediately opened in the respective States for coined and uncoined Gold, Silver and Copper to that Postponed amount which is to be received by the Treasurers of the respective States at its real value, viz. Coined Gold, silver and copper at its present current value.
New wrought silver plate.
Old silver plate at six shillings and eight pence per ounce.
That the money, bullion and copper so received be forwarded by the respective States to the seat of Congress, where a bank Postponed is to be established and supported in which the same is to be deposited.
That all the plate and copper so received and deposited be coined into such pieces of money as Congress may from time to time direct.
Resolved, That Congress proceed to appoint a Director and other proper officers to manage and transact the business of the Bank.
Resolved, that a share in the Bank shall be fifty dollars, and that the respective Treasurers issue no receipt for less than half a share which if made up by divers persons shall be receipted for to one of them only, who is to be accountable to the other proprietors interested.
Resolved that the respective Treasurers keep a fair register of all money and plate received, of all receipts given and of the names of the persons to whom given, and transmit the same to the Director of the Bank, who is to enter the same in the Bank Books that such persons may be known and considered as proprietors in the Bank.
Resolved, That the receipt given be in the following form viz.
Resolved, That the receipt given and entry made as aforesaid shall entitle the lender to receive Iris interest and one twelfth part of his principal annually if demanded, which is to be paid only to the original lender or his order unless the stock is by him transferred
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by Testament, Bill of Sale, Letter of Attorney or Entry in the Books with a delivery over of the receipt which shall entitle the purchaser or legatee to have the stock transferred to him on the Books, and to receive the advantages thereof.
Resolved, that if any proprietor of the Bank, shall die intestate his interest in the Bank shall be vested in his administrator in the same manner as other personal estate.
Resolved, that as security for payment of the principal and interest of the sums lent as aforesaid the several States be and are hereby requested to pass acts: laying duties upon exports, tonnage, or upon such other articles as may be found most convenient for raising annually in specie their respective quotas of the interest and a twelfth part of the principal as aforesaid in the proportion mentioned in the annexed calculation, (Vide paper No. 1) which sums are to be forwarded by the respective States and deposited in the Bank by the first day of September annually for the purposes aforesaid.
Resolved, That as a farther security for the punctual payment of the sums lent as aforesaid: The duties collected upon imported articles be also lodged in the Bank and appropriated to the payment of said notes so far as will make up any deficiency that may happen by the States not forwarding their respective Quotas, in due time for discharging the interest and twelfth part of the principal as aforesaid.
And that the surplus of said duties on imports be appropriated to the redemption of the Bills issued in pursuance of the Act of Congress passed the 18th. day of March last.
Resolved, that upon the money so borrowed and deposited in Bank, as well as upon all public monies the property of the United States; arising from Loans, the sale of Lands or other public property the surplus of imposts or taxes Congress may strike Bank notes signed by the Director payable at the Bank in specie on demand: in different sums from one hundred dollars to one eighth of a dollar which notes are to be redeemed at the Bank on sight.
Resolved, that Congress may issue the whole or any part of the money in specie, or may issue notes on part, and reserve such part for negotiations as may from time to time appear necessary, but are in no case to draw specie from the Bank so as to leave a less sum in stock than will pay the whole of the Bank notes in circulation.
Resolved, That when stock receipts shall be lost in any case, or when Bank notes shall be lost consumed or destroyed where silver and gold would not have been liable to the same accident: upon
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proper evidence thereof being given to the satisfaction of the managers of the Bank, or a major part of them: the owners shall receive other receipts or notes, of the same tenor and date.
Resolved, that the Bank notes be in the following form viz.
Whereas, The Congress of the United States have recommended to the several and respective Legislatures to pass laws for restraining the importation of Foreign articles of luxury; as the most effectual means for encouraging industry, bringing the ballance of trade in favor of the United States and increasing the national wealth--
Be it therefore enacted by --, That from and after the first day of April 1781 there shall be raised levied collected and paid within this State for the purposes of redeeming the paper Bills of Credit issued for defraying the public expence and to remain at the disposal of Congress for the aforesaid purposes the several Rates and Duties herein after mentioned for and upon all articles of foreign growth or manufacture hereafter mentioned which may be imported into this State from any foreign port market Island or Plantation viz.
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Six pence per ton on all vessels of more than 20 Tons burthen.
The above duties to be paid in specie at the rate of 6/8d pr ounce for coined silver.
And be it further enacted that the Congress of the United States may from time to time establish within this State such Custom Houses and appoint such officers to collect said duties as may appear necessary, and that every aid protection and assistance shall be given to such officers in the execution of their office.
And be it further enacted that when any of the before mentioned articles of Foreign Growth or manufacture shall be imported into any port or Haven in this State an entry thereof shall be made by the master or commander of the ship or vessel importing the same within forty eight hours after the arrival of said vessel in port and the duties paid thereon or bond given therefor before breaking bulk.
And be it further enacted by the authority aforesaid, that all articles of Foreign Growth or manufactures before enumerated which shall be shipped at any Foreign Port Island or Plantations and landed or attempted to be landed at any Port or place within this State not having been cleared out for some Port in the United States and entered at the Custom House as aforesaid the same shah be forfeited together with the vessel importing the same with all her tackle furniture and cargo for the use of the United States.
And be it further enacted by the authority aforesaid, that all articles before enumerated which shall be imported from ports for any Port or Haven in this State shall be entered at the Custom House within forty eight hours under penalty of vessel and cargo.
And be it further enacted that the secretaries and other officers of the customs appointed by Congress shall have liberty to enter and search all vessels coming into any Port in this State without molestation, and in case of resistance may apply to any justice of the Peace within said State who shall forthwith order proper assistance for
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searching the vessels and securing the person making such resistance, and the Justice is hereby directed to bind such offender over to the next court of sessions who upon conviction shall sentence him to pay a fine not exceeding one thousand pounds.
And be it further enacted that all articles imported into this State for and on account of the United States shall be free from imposts, and the vessel importing the same exempted from paying tonnage provided said vessel so exempted from paying tonnage shall be principally freighted with articles for the use of the United States.
And be it further enacted that any officer of the Customs appointed by Congress in this State may sue for and recover in the name and for the use of the United States the several penalties fines and forfeitures aforesaid in any court proper to try the same.
This act to remain in force for the term of twelve years unless sooner repealed by advice or consent of Congress
Resolved, That in order to facilitate the aforesaid Loans the following address to the Inhabitants of the United States be forwarded to the respective Legislatures to be by them communicated to the people.
And that it be recommended to them to use all the influence in their power to promote and forward the same. (Vide paper No 2.)
Resolved, That it be recommended to the several States to pass Laws in the following form viz. (Vide paper No 3.)1
[Note 1: 1 This report is all in the writing of John Sullivan from the first resolution. It is in the Papers of the Continental Congress, No. 26, folios 221--235. The enclosed papers, Nos. 1, 2, and 3, are not with the report. It is indorsed by Thomson: "Delivered December 18, 1780; read; debated December 22."]
The committee, to whom was re-committed their report on the letter, of 6, from the supreme executive council of Pensylvania, delivered in their respective reports.
Congress took into consideration the draught of instructions to the Minister to be appointed to the Court of Russia, which being debated by paragraphs, were agreed to.
Treasury Office Decr. 18, 1780
The Board of Treasury having considered the letter from Resolve Smith one of the Commissioners of the Chambers of accounts dated Decr. 14th. 1780 (referred to them by Congress) beg leave to report
That notwithstanding it may at first view appear highly reasonable
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to make payment to Mr. Smith as he hath pointed out in his letter, yet in the opinion of the Board it is not only Passed inexpedient, but highly improper at this juncture to dispose of Bills of Exchange for such purposes, for reasons that must be obvious to Congress.1
[Note 1: 1 This report is in the Papers of the Continental Congress, No. 136, IV, folio 767.]
Adjourned to 10 o'Clock to Morrow.
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