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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 --WEDNESDAY, APRIL 25, 1781
A letter, of 30 November, 1780, from the honble J. Jay, was read, with sundry papers enclosed:2
[Note 2: 2 This letter is printed in the Diplomatic Correspondence of the American Revolution (Wharton), IV, 169.]
Ordered, That the same, together with the letter, of 6 November, be referred to a committee of three:
The members, Mr. [James] Duane, Mr. [Samuel] Adams, Mr. [James] Madison.
Mr. Nicholas Eveleigh, a delegate for the State of South Carolina, attended, and took his seat.
A letter, of 21 March, from Brigadier General Moultrie, to the delegates of South Carolina, was read, enclosing a letter of 31 January from Thomas Heyward, and an affidavit of Thomas Johnson and James McQueen, relative to the conduct of George Ashby, of Salem, commander of a privateer cutter, who, upon capturing the schooner Endeavour, commanded by the above named T. Johnson, took, as is therein set forth, several cases of liquors, packages and bundles of clothes, and money, the property of and consigned to gentlemen, prisoners of war, who had been sent from Charlestown to St. Augustine; and also intercepted and refused to re-deliver letters written to the said prisoners by their friends and near relations:
Ordered, That the said letters and papers be transmitted to the governor of the Commonwealth of Massachusetts: and that he cause inquiry to be made into the charge exhibited against Captain Ashby, and if, upon inquiry, Captain Ashby
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shall be found guilty of what is charged against him, to cause such punishment to be inflicted on the said Ashby as the laws of the State shall authorise; and that the governor of the said Commonwealth be requested to communicate to Congress, the result of such inquiry.
A letter, of January 1, and one, of 9 April, from John Langdon to the Board of Admiralty, was read.
A letter, of 24, from Major General Gates, was read:1
[Note 1: 1 This letter is in the Washington Papers, 96, folio 201.]
Ordered, That it be transmitted to the Commander in Chief.
The committee to whom was referred the motion of Mr. [Oliver] Wolcott having reported two ordinances:
The said ordinances were read a first time:
An Ordinance providing for the support of public credit.
Whereas Congress through unavoidable necessity in defending the just rights and providing for the safety of these United States against the Enemies thereof, was induced to have recourse to the Emission of Bills of credit and to pledge the faith of the said states for the redemption of them, prior to the ratification of the Act of Confederation by the respective States, and at a time when it had not a power of making taxes productive for the support of the credit of the said bills or for the redemption of them, from which and various other causes a depreciation of their value ensued, detrimental to the interest of these United States, and embarrassing their finances. And whereas by an act of the 18th of March 1780, Congress recommended to the several States to bring into the Treasury of the United States by taxes or otherwise, the Bills of credit which had been emitted as aforesaid, in order that they might be cancelled and destroyed by the month of April 1781, which recommendation for want of a more equal and effectual exertion in the said States hath not been complied with, and the expectations of Congress in having the said Bills brought into the Treasury and cancelled have been disappointed. And whereas the situation of the public affairs of these United States renders it indispensibly necessary for the defence thereof, that immediate and effectual measures be taken to restore the public credit and to enable Congress to prosecute the war so justly and so necessarily entered into by the said States, and it appears essentially necessary thereto, that ample provision be made for the redemption of the Bills of credit heretofore emitted by Congress prior to the 18th. of
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March 1780, in such manner that justice may be finally done both to the United States and to individuals, and to the end also, that a due arrangement and administration of the Finances of these United States may speedily take place: Be it ordained by the United States in Congress Assembled, and it is hereby ordained by the authority of the same, that from and after the passing of this ordinance the respective States in this Union shall pay or cause to be paid to the Treasurer of the United States for the time being, their respective quotas of ten millions of dollars annually for and during the term of twenty years to commence on the first day of April in the year one thousand seven hundred and eighty two, and to be continued thereon annually until the expiration of the aforesaid twenty years, which said quotas of ten millions shall be and is hereby ascertained in the same proportion as their respective quotas of 200,000,000 of dollars emitted before the 18th. of March 1780 and hereby intended to be redeemed, have heretofore been ascertained by Congress, and shall be paid in Spanish milled Dollars or other gold and silver equivalent thereto, or in the Bills of credit emitted by Congress as aforesaid, which said Bills of credit when received into the Treasury of the United States shall be destroyed by burning them, and shall not under any pretence whatsoever be reissued therefrom.
And be it further ordained, that from and after the expiration of the aforesaid twenty years if any of the said Bills of credit emitted by Congress before the 18th of March 1780 and hereby intended to be redeemed, shall remain outstanding, the holder or holders of such Bills shall be entitled to and shall be paid by the Treasurer of the United States for the time being, the value thereof in gold or silver equal to Spanish Milled Dollars, or in Spanish milled Dollars according to the nominal value declared in the said Bills of credit, on demand, and the same shall be repaid by such States respectively in just proportion, as shall have failed in the payment of their quotas of such Bills respectively, with Interest thereon.
Provided nevertheless, that no State or States shall engross by any means whatsoever more of the said Bills of credit intended hereby to be redeemed, than shall amount to the full quota of such State or States as ascertained by Congress, with a view to receive any advantage from this ordinance, or otherwise to exchange them for specie to the injury of any other State or States in this Union.
And be it further ordained, that any State or States respectively shall be at full liberty to pay to the Treasurer of the United States for the time being, at any time within the said twenty years, any
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further sum or sums of the said Bills of credit emitted before the 18th. of March 1780, so as that the same shall not exceed the quota of such State or States, as heretofore ascertained by Congress; and the said Treasurer shall, and he is hereby required to grant a quietus to the State or States paying the same, which said Bills of credit so received shall be destroyed as aforesaid, and the State or States so paying the same, to the amount of their respective quotas of 200,000,000 of Dollars emitted as aforesaid, shall thenceforth be exonerated and discharged from the payment of any other sums within the purview of this ordinance, for the remainder of the term herein before specified, any thing herein contained to the contrary notwithstanding.
And whereas it is indispensibly necessary to the proper arrangement of the Finances and to the restoration of public credit within these United States, that due obedience be paid to the ordinances which are or shall be passed by the United States in Congress assembled without which they must remain a fruitless pledge for the security of all who confide in their laws; And whereas justice and precision should mark the conduct of the United States, to the end that each State in the Union may have a firm reliance upon them, and that right may be done to all and every of them in the administration of public affairs; Be it therefore further ordained, that from and after the passing of this ordinance, if any State or States in this Union shall refuse or neglect to comply therewith without sufficient reason, to be assigned by the Delegates of such State or States and approved by the United States in Congress assembled, the Treasurer of the United States for the time being shall certify the same to the President of Congress who shall forthwith lay the same before the United States in Congress assembled and thereupon if cause be not shewn to the Contrary, a remonstrance shall issue under the sign manual of the President of Congress for the time being and under the seal of the United States, attested by the Secretary of Congress, against the conduct of such delinquent State or States, and demanding full payment of the arrears of such State or States with Interest thereon according to the purport and tenor of this ordinance, at a day certain, to be assigned by the United States in Congress assembled, and if such delinquent State or States shall thereafter refuse or neglect to comply therewith a prohibition shall thenceforth issue against the commerce of such delinquent State or States in the manner prescribed in the case of a remonstrance, both by sea and land, and the same shall be continued until full payment be made as aforesaid, and justice duly rendered to the United States.
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And be it further ordained, that all former Acts or Resolutions of Congress, passed prior to the ratification of the Articles of Confederation touching in any wise the Bills of credit emitted by Congress before the 18th of March 1780, shall be and the same are hereby repealed.1
[Note 1: 1 This ordinance, in the writing of Meriwether Smith, is in the Papers of the Continental Congress, No. 36, I, folio 163. It was read a second time, May 2, and the first paragraph negatived, as the indorsement shows.]
An Ordinance for emitting the sum of ten millions of Dollars in Bills of Credit and providing for the redemption thereof; and for other purposes therein mentioned.
Whereas it is indispensibly necessary for the defence of these United States, that due provision be made for the support of the Army and for prosecuting the war so justly entered into, which provision from the partial exertions of the several States in this Union, and from the impracticability of enforcing the just, equal and necessary measures of Congress, before the Ratification of the Articles of Confederation by the respective States, hath hitherto been unattainable: And whereas the Bills of Credit emitted by Congress for the purpose of carrying on the present war have been suffered to depreciate for want of the equal and timely exertions of the States, by taxes or otherwise, to collect and destroy them, in so much that to have encreased the emissions of such Bills and to have preserved the public faith pledged for the redemption of them would have been productive of ruin to these United States: And whereas under these circumstances, and from the low state of the Treasury, Congress, were obliged to have recourse to requisitions for specific supplies from the Several States and to the issuing certificates to individuals for their property converted to the public use; a mode unproductive, expensive, unequal and oppressive; by which the burthen of the war has been thrown upon particular States, and the Individuals of such States, where the public exigeneies more immediately pressed: And whereas, it is both just and requisite that every State in this Union should bear and contribute its duo proportion of the public expences, and that a mode of raising supplies so partial and so oppressive should be discontinued: And whereas, the revenue of these United States is not sufficiently productive of gold and silver coin to answer the exigencies of the States in the present war; and, therefore, as well as for all the above reasons, it is become necessary to emit bills of credit upon the faith of the United States, which may have a
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general currency throughout the same, and also to take proper measures to support the credit thereof by duly providing for the redemption of the said Bills at the time hereinafter stipulated, according to the power and authority granted to the United States is Congress assembled by the Articles of Confederation.
Be it therefore ordained by the United States in Congress Assembled, and it is hereby ordained by the authority of the same, that the sum of ten millions of dollars be emitted in Bills of credit which shall be redeemed at the time and in the manner hereinafter mentioned; one part of said Bills to be of the denomination of one-sixth of a dollar; one part of the denomination of one-half of a dollar; one part, of the denomination of one dollar; one part, of the denomination of four dollars; one part, of the denomination of six dollars; one part, of the denomination of ten dollars; and one part, of the denomination of twenty dollars; which said Bills shall be emitted under the directions of the Board of Treasury, and on the faith of the United States in the form following:
[United States in Congress assembled.No.Dollar
This Bill entitles the Bearer to receiveSpanish milled Dollars, or the value thereof in gold and silver on the first day of April 1785, according to an Ordinance passed at Philadelphia day of1781.]
And each denomination of the said Bills shall be numbered, beginning with one, upwards, and signed by two signers, and countersigned by the Treasurer of these United States, which numbering and signing shall be done in red ink, and the said Bills so emitted, numbered and signed, shall issue from time to time in payment of all debts, and contracts made or to be made on account of these United States within the same at the full value of Spanish milled dollars according to the nominal sum expressed in the said Bills or any of them, and shall also be receivable at the Treasury of the United States in payment of all debts due to the United States, in like manner.
And be it further ordained, that the respective States in this Union shall pay or cause to be paid to the Treasurer of the United States for the time being their respective quotas of two millions two hundred and fifty thousand dollars annually, for and during the term of four years, the first payment to commence on the first day of November next and to be continued thereon, annually until the expiration of the aforesaid four years, which said Quotas shall be and are hereby ascertained in the same proportion as their respective Quotas of Bills emitted prior to the 18th of March 1780, have heretofore been
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ascertained by Congress, and shall be paid in Spanish Milled Dollars, or other gold and silver equivalent thereto, or in the Bills of credit emitted by this ordinance, or in any other Bills of Credit which may in like manner be emitted by Congress subsequent thereto, which said other Bills of Credit if any shall be received shall be retained in the Treasury and not reissued except in Exchange for the Bills to be redeemed by virtue of this ordinance, and the said Bills of Credit emitted by this ordinance, when their shall be received into the Treasury of the United States shall be destroyed by burning them, and shall not under any pretence whatsoever be reissued therefrom.
And be it further ordained that from and after the aforesaid first day of April 1785 expressed in the form of the Bills hereby emitted, if any of the said Bills of credit shall remain outstanding, the holder or holders of such outstanding bills shall be entitled to and shall be paid by the Treasurer of the United States for the time being, the value thereof in gold or silver equal to Spanish milled dollars, or in Spanish milled dollars, according to the nominal value declared in the said Bills on demand, and the same shall be repaid by such State or States respectively in just proportion, as shall have failed in the payment of their Quotas of such Bills respectively with interest thereon.
Provided nevertheless, that no State or States shall engross by any means whatsoever, with a view to receive any advantage from this ordinance or otherwise to exchange them for specie to the injury of any other State or States in this union, more of the said Bills of Credit hereby intended to be redeemed, than shall amount to the full Quota of each State or States as ascertained aforesaid by Congress.
And whereas Congress by Resolutions dated the 18th. of March 1780 directed certain Bills of Credit to be prepared and issued pursuant to the said resolutions which from divers causes have not been completed or fully complied with whereby the expectations of Congress in passing the said Resolutions have been disappointed, and whereas by the said resolutions 4/10ths. of the said Bills were reserved for the immediate use of the United States, and it is judged expedient that no part of the remaining 6/10ths. of said Bills of Credit shall issue from and after the passing of this ordinance; be it therefore ordained, that from and after the passing of this ordinance, so much of the said resolutions as directs the manner of issuing the said Bills be and the same is hereby repealed.
And be it further ordained, that the Persons appointed to sign the Bills of Credit directed to be issued pursuant to the Resolutions of
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the 18th of March aforesaid, proceed immediately to sign one fourth part of the 4/10ths of the quota of said Bills assigned to the respective States, and that the Loan Officers of the respective States pay the said one fourth part of the four tenths of said Bills to the Treasurer of the United States for the time being, or to his order, as soon as the said Bills shall be signed and compleated as aforesaid, and the said Treasurer shall stamp or cause to be stampt before the issuing of the said Bills the following words in red ink upon the back of said Bills ["Interest paid theday of"] filling up the said blanks with the month, the day of the month, and the year, at the time of issuing the said Bills, and the said Bills so issued shall bear Interest according to the tenor thereof from and after the day of issuing the same until they shall be redeemed or exchanged in the manner herein after directed.
And whereas the State of the Treasury of these United States renders it necessary that the said one fourth of the four tenths of said Bills issue in payment of all demands upon the same and nevertheless it is inexpedient that the said Bills so issued on account of these United States, should bear Interest and continue in circulation according to the tenor of the resolutions of the 18th of March 1780 aforesaid Be it therefore ordained that the Treasurer of these United States for the time being, shall issue the said one fourth of the four tenths of said Bills or such part thereof as shall be requisite in payment of all warrants drawn or to be drawn upon the Treasury until the said Bills to be emitted by virtue of this ordinance shall be prepared according to the directions of this ordinance to be issued, and no longer, and the Treasurer of these United States for the time being is hereby authorised and directed to transmit within the space of six months from the passing of this ordinance to the respective Treasurers of the States from whence the one fourth of the respective four tenths of said Bills shall have issued, so many of the Bills of credit emitted pursuant to this ordinance as shall be sufficient to redeem the one fourth part of the said four tenths of the Bills aforesaid as shall have issued upon the Funds of the said respective States, by exchanging them for the same, and the holder or holders of the said one fourth part of the said four tenths of the said bills in the respective States shall carry in the same to the Treasurer thereof, to be exchanged as aforesaid on or before the first day of April in the year one thousand seven hundred and eighty two, after which time the Interest on the said Bills shall cease and the same shall be no longer current within these United States.
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And whereas it is indispensibly necessary to the Here the repetition begins.1 proper arrangement of the finances and to the restoration of public credit within these United States, that due obedience be paid to the ordinances which are or shall be passed by the United States in Congress assembled, without which they must remain a fruitless pledge for the security of all who confide in their laws; and whereas justice and precision should mark the conduct of the United States to the end that each State in the Union may have a firm reliance upon them, and that right may be done to all and every of them in the administration of public affairs: Be it therefore further ordained, that from and after the passing of this Ordinance, if any Slate or States in this Union shall refuse or neglect to comply therewith without sufficient reason, to be assigned by the Delegates of such State or States and approved by the United States in Congress assembled, the Treasurer of the United States for the time being shall certify the same to the President of Congress who shall forthwith lay the same before the United States in Congress assembled and thereupon if cause be not shown to the contrary a remonstrance shall issue under the sign manual of the President of Congress for the time being, and under the seal of the United States, attested by the Secretary of Congress, against the conduct of such delinquent State or States, and demanding full payment of the arrears of such State or States with interest thereon, according to the purport and tenor of this ordinance, at a day certain, to be assigned by the United States in Congress assembled and if such delinquent State or States shall thereafter refuse or neglect to comply therewith a prohibition shall thenceforth issue against the commerce both by sea and land, of such delinquent State or States, in the manner herein prescribed in the case of a remonstrance, and the same shall be continued until full payment be made as aforesaid, and justice duly rendered to the United States.
[Note 1: 1 These words in the margin are in the writing of Samuel Huntington.]
And be it further ordained that so much of any act or resolution of Congress passed before the ratification of the Articles of Confederation, as comes within the purview of this ordinance be, and the same is hereby repealed.2
[Note 2: 2 This ordinance, in the writing of Meriwether Smith, except the parts in brackets, which are in the writing of James Duane, is in the Papers of the Continental Congress, No. 36, I, folio 169.]
Ordered, That they be read again to Morrow.
Adjourned to 10 o'Clock to Morrow.
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