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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, JULY 18, 1785.
Congress assembled. Present, as before.
On motion of the delegates for Massachusetts,
Whereas Mr. Rufus Putnam, appointed a surveyor under the Ordinance of the 20 May, from public engagements with the Commonwealth of Massachusetts, cannot attend the business of his appointment during this year,
Resolved, That Mr. Benjamin Tupper, be, and hereby is appointed a surveyor, with authority to perform the duties of that office, until Mr. Putnam shall actually join the geographer, and take the same upon himself.1
[Note 1: 1 This motion, in the writing of Rufus King, is in the Papers of the Continental Congress, No. 36, III, folio 71.
On this day, according to the indorsement, was read a letter from the Secretary at War, dated July 18, respecting Col. Harmar's corps. It was referred to Mr. [William] Grayson, Mr. [Rufus] King and Mr. [David] Howell, who reported July 20. It is in the Papers of the Continental Congress, No. 150, I, folio 55.]
On motion of Mr. [James] McHenry,
Ordered, That T. Barclay, commissioner for Accounts in Europe, report to Congress, an Abstract of the settlements he has made of the accounts of the servants of the United States, and others, who have been entrusted with the expenditure of public Monies in Europe.2
[Note 2: 2 This motion, in the writing of James McHenry, is in the Papers of the Continental Congress, No, 36, III, folio 73.]
Congress proceeded to the election of a Surveyor from Connecticut, and, the ballots being taken, Mr. Isaac Sherman was elected, having been previously nominated by the delegates of that State.
Congress took into consideration the report of a grand Committee, consisting of Mr. [David] Howell, Mr. [Abiel] Foster, Mr. [Rufus] King, Mr. [Joseph Platt] Cook, Mr. [Melancton] Smith, Mr. [Samuel] Dick, Mr. [Charles] Pettit, Mr. [William] Hindman, Mr. [James] Monroe, Mr. [Charles]
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Pinckney, and Mr. [Abraham] Baldwin,1 to whom was recommitted their report on the subject of supplies for the year 1785, which is as follows:
[Note 1: 1 This was the committee appointed June 13.]
That for the services of the present year, one thousand seven hundred and eighty-five, for the payment of one year's interest on the foreign and domestic debt, and as a provision to discharge the excess of the estimate of April twenty-seventh, one thousand seven hundred and eighty-four, above the proportion of former deficiencies, called for by the resolve of Congress of that date, it will be necessary that the sum of Three Millions of Dollars, in addition to 708,452 dollars, hereafter provided for, be paid into the common treasury, on or before the thirty-first day of December next, to be appropriated to the following purposes:
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Deduct for moneys actually applied towards a discharge of the last year's estimate, and which the sums required from the states last year will replace; and for loans now in the hands of the Dutch commissioners, and hereby appropriated for the purposes of this estimate, 708,452 dollars, and there remains the balance of 3,000,000 of dollars, to be paid into the common treasury, in the course of the present year.
The committee find that, for reasons stated in the resolve of Congress, of the 27th April, 1784, there yet remains a moiety of the requisition for eight millions of dollars, and the whole of the requisition for two millions of dollars, to be applied to the use of the United States, before any new requisiton ought to be made: They are therefore of opinion, that the states be called upon, to make actual payment of three quarters of the remaining moiety aforesaid, in the course of the present year.
That the committee have not been able to obtain information how many states have complied with the resolution of February 17th, or
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that of April 18th, 1783, relative to a rule, for quotaing federal requisitions: They are therefore of opinion, that the several states which have not decided on that subject, be again solicited to come to a decision thereon, and to send forward the same, as a measure necessary to enable Congress to effect a settlement of accounts with the several states, and to apportion to each a just quota of the public expenses; but, in the mean time, as the public faith renders it the duty of Congress to continue their annual demand for money, the committee are of opinion, that in the apportionment thereof, the several states should be quotaed agreeably to justice, on the best information Congress may, from time to time, have upon the subject. And, upon this principle, recommend to Congress, that the said sum of three millions of dollars, be quotaed upon the several states, as follows, viz.
Which sums, when paid, shall be passed to the credit of the states respectively, on the terms prescribed by the resolution of Congress of the 6th day of October, 1779, and together with the moneys relied on to discharge the aforesaid deduction of 708,452 dollars, be applied in conformity with the several appropriations in the preceding part of this report, giving preference according to the order in which they are stated in the estimate.
As more than two thirds of the sum called for, is to be applied to the payment of interest on the domestic debt; the committee are of opinion, that the several legislatures be allowed so to model the collection of the sums called for, that one-third of any sum being paid in actual money, the other two-thirds may be discharged by discounts of interest with the domestic creditors. And to ascertain the evidences of interest to be discounted, the holders of loan-office certificates shall be at liberty to carry them to the office from which they issued, and the holders of other certificates and liquidated debts of the United States, to carry the same to the loan-office of that state
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wherein he is an inhabitant, or, if a foreigner, to any loan-office within the United States, and to have the interest due thereon, settled and certified to the last day of the year 1783.
That the commissioners of the board of treasury cause to be made a bank-paper, and thereon to be struck the blank form of a certificate, which shall evidence the interest due as aforesaid, and shall transmit to the several loan-officers, a sufficient number of the same. That the said commissioners furnish the several loan-officers, with such checks and instructions, as they, from time to time, shall judge necessary, to prevent counterfeited certificates of debts from obtaining a settlement of interest, and to the receivers of federal taxes, such checks and instructions as may enable them to detect counterfeit evidences of interest, and thereby to avoid receiving them in discharge of taxes, which certificates of interest being parted with by the holders of the principal, shall be deemed evidence that he has received satisfaction for the same, and therefore shall be receivable from the bearer in lieu of money in the proportion aforesaid, in any other state in the union, as well as in the state in which they were issued. That the state receiving such certificates and paying the same into the public treasury, shall have credit therefor in the proportion aforesaid; which payment shall be considered as a discharge of the interest due on the domestic debt, in the proportion that each state avails itself of the said certificates of interest. And where loan-office certificates issued after the first day of March, 1778, shall be presented to the loan-officer, they shall be reduced to their specie value, conformably to the resolutions of Congress of June 28th, 1780, that specie value expressed on some part of the certificate, and the interest thereon settled and certified as in other cases.
The committee find that the revenue system of April 18th, 1783, hath been adopted in whole or in part, by eleven states; and being of opinion, that it is expedient for Congress still to rely on that plan, which has been so long under reference to the states, and which, after repeated consideration in successive Congresses, has been found preferable to any other system, and conceived necessary to the establishment of the public credit, the committee submit it to Congress, earnestly to recommend to such of the eleven states as have complied only in part, to adopt the same completely; and to the two other states, who have not adopted the plan either in whole or in part, to pass laws as soon as may be in conformity thereto.
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The sum quotaed upon the states in the present demand, by providing for the deficiencies of former years, exceed the sum the states were called on for during the last year; but the greater proportion of discount now admitted, will render it less impoverishing to the citizens.
As a motive for the chearful payment of the sum now called for, as well as of the arrearages on that of April 27, 1784, the committee are of opinion, that the states be reminded, that Congress have passed an ordinance for the survey and sale of the western territory of the United States, and that the proceeds thereof will be applied as a sinking fund, to extinguish the principal of the domestic debt. Future requisitions for interest on the domestic debt, will therefore be reduced in proportion as this fund may be rendered productive. And while on this subject, the committee cannot forbear mentioning that of the states claiming western territory, Massachusetts alone has made the expected cession during the last year, they are therefore of opinion, that the subject be again presented to the attention of the states which have not complied with so reasonable a proposition; and that they be once more solicited to consider with candour and liberality, the expectations of their sister states, and the earnest and repeated applications made to them by Congress on this subject.1
[Note 1: 1 This report, in the form of one of the broadside issues of the report printed for the use of the Committee of the Whole, July 14, was pasted into the Journal by Thomson, in lieu of copying the text. See post, July 26.]
A motion was made by the delegates of Virginia, to postpone the consideration of the report, in Order to take up the following proposition:
That upon supplies furnished by impressment or otherwise, or services rendered by individuals to the United States, the claims whereof against the United States are by payment of the principal, or other satisfactory compensation, transferred from the individual to the state of which he is a citizen, upon the liquidation of the account by the commissioners of the United States with the state, upon the same principles as if they had not been transferred, the State shall be considered as standing in the place of the individual, and intitled to all the benefits which would otherwise have belonged to him.
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And on the question to postpone for the purpose abovementioned, the yeas and nays being required by Mr. [James] Monroe,
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So the question was lost.
A motion was then made by the delegates of Virginia, to postpone the report in order to take up the following proposition, viz.
Whereas the United States are plighted under the act of cession from the State of Virginia, of her claims to territory northwestward of the Ohio, agreeably to the conditions of the said act as therein contained, to reimburse to the said State all her reasonable expences, &c. and as a commissioner is appointed on the part of the United States for the adjustment and liquidation of said accounts; and it is necessary that provision be made for complying with said engagement, it is therefore agreed, that provided they shall be liquidated
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during the operation of the requisition for the year 1785,dollars be admitted in discount to the said state for said advances.
On the question to postpone for the purpose above mentioned, the yeas and nays being required by Mr. [James] Monroe,
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So it passed in the negative.
[Report of the Postmaster General]
General Post Office, July 18th. 1785.
I have the Honor to hand to your Excellency the Report called for by the Act of Congress of the 15th. Inst., and to add to it a Letter received from the Post Rider who travels between Philadelphia and Annapolis. He states the Case truly respecting the horse lost in the Ice, and the Danger his own Life was in, as I learned from other Persons at the Time when the Accident happened; and from the Character of the Man, I have no doubt of the Truth of his Representation respecting the Loss of his other two horses.
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Notwithstanding I was informed that both Lines (as they are called) of Stages between Philadelphia and this City had formed a Kind of Union for the Purpose of carrying the Mati and that consequently, no other Proposals need be expected yet others have been handed to me which your Excellency will receive herewith.
I have the Honor to be, Your Excellency's Most obedient humble Servant
Eben. Hazard.1
[Note 1: 1 This report is in the Papers of the Continental Congress, No. 61, folio 199. It seems to have been read this day, together with its enclosures, which were James Finley's letter to the Postmaster General, 1785, July 14, on folio 203; Charles Bessonett & Company's proposals to carry the mails between New York and Philadelphia, July 14, on folio 195; Letter from the Postmaster General to the Proprietors of the Stages, July 2, on folio 207; Letter from the Postmaster General to Mr. William C. Houston, on folio 211; Memorial of sundry New York merchants on the proposed alteration in the mode of conveying the mails, July 15, on folio 215; Table of mails, time and salary of riders, from Kennebec to Savanna, on folio 228, a duplicate on folio 366, and a Statement of the Register of Treasury, July 18, of receipts and expenditures of the General Post Office for the year 1784, on folio 232.
On this day also, according to Despatch Book No. 185, was read a letter from Samuel Holden Parsons, of July 13, accepting the appointment as Commissioner for settling the accounts of Virginia with the United States. It is in No. 78, XVIII, folio 547.]
War Office, July 14th 1785.
The Secretary of the United States for the department of war to whom was referred a memorial of captain Jonathan Lawrence junior reports--
That Jonathan Lawrence, junior, esquire, late a captain in the corps of sappers and miners resigned his commission on the 31st November, 1782, as appears on record in this office.
That by the resolutions of Congress of the 3rd and 21st October 1780, granting halfpay for life, it is declared that no officers except those that shall continue in service untill the end of the war or otherwise be deranged before the conclusion thereof shall be entitled to the benefits of the said acts.
Upon this statement of facts your Secretary at war submits to Congress the following resolution:
Resolved, That captain Jonathan Lawrence junior having resigned his commission in the service of the United States before the conclusion
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of the late war he cannot be allowed those emoluments promised to the officers who should continue in service to the end of the war.
H. Knox.1
[Note 1: 1 This report is in the Papers of the Continental Congress, No. 151, folio 67. According to indorsement it was read this day and passed February 2, 1786.]
Board of Treasury July 14, 1785.
Sir: We do ourselves the honor of transmitting to Congress in obedience to their orders a general account of receipts and expenditures for the year 1784.
No 1 Contains the domestic, No 2 the foreign receipts and expenditures.
It is necessary to observe that although under the head of interest in the abstract of foreign expenditures, the interest of the Loan of Ten Million of Livers borrowed of Holland and guaranteed by France is charged as paid, the fact is not so.
The late Superintendent of Finance remitted to Monsr. Grand a letter of credit on the Dutch Commissioners for Three hundred thousand florins, which sum he at that time conceived fully adequate to reimburse Monsr. Grand's advances to that period, and to enable him to discharge the interest due on the Ten Million Loan in November, 1784. His directions on that head were clear and explicit and the sum appropriated to that object was two hundred Thousand current
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Florins, which at the moderate estimation of one Guilder for two Livers, is Four Hundred Thousand Livers, the amount of the interest on the Ten Million Loan.
By Monsr. Grand's letter since received, it appears that at the time the remittances destined for this object came into his hands, he was so far in advance to the United States, that the sums remitted him by Mr. Morris were not adequate to reimburse his advances, and pay the complete sum of interest he was directed to discharge, and that in concurrence with Doctr. Franklin's opinion he had therefore thought it advisable to detain the monies in his hands for further orders. The enclosed letters from Docr Franklin and Monsr Grand to which we beg leave to refer Congress will explain this object more fully.
The subordinate accounts for the expenditure of several sums charged by Monr. Grand (particularly those made by order of Doctr. Franklin amounting to Livres 390,466.17) have not been transmitted. It is not therefore possible for us to specify the objects of Foreign disbursements, more particularly than they are stated in the Abstract, or to ascertain with precision what was the deficiency of public monies in Monr. Grand's hands necessary to complete the amount of the interest on the Ten Million Livers due in November, 1784. From the tenor of Doctr Franklin's Letter to Monr. Grand we have reason to suppose that it was about Two Hundred Thousand Livers, which sum is not sufficient to discharge the salaries of Foreign Ministers, and other contingent disbursements to which Monr. Grand is liable for the year 1785.
From this State it appears that no Foreign Interest was paid in the year 1784 except the sum of F 162,824:13 equal to Dollars 62,868. If therefore the Deficiency of interest accrued on the Foreign Debt had been duly paid (which at least amounts to Dollars 431,326) the total expenditures of that year (exclusive of the payment of any domestic Interest) would have been about Dollars 1,648,987.
We cannot conclude without reminding Congress, how inadequate the funds, at the disposal of the Treasury for the year 1784 are to the objects of defraying the charges of Foreign Interest and the Civil Establishment for 1785, much less to make good the deficient payments which ought to have been discharged in the last year.
To accomplish these purposes there will be wanted for 1785 at least Two Millions of Dollars actually paid in Specie.
We flatter ourselves that this consideration will induce the States to adopt immediate and vigorous measures for drawing forth by a
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judicious and operative System of Finance, that general revenue which is essentially necessary, not only to the credit but the very existence of the Confederacy.1
[Note 1: 1 This letter, signed by Samuel Osgood and Walter Livingston, was, with its accompanying documents, read this day, according to the indorsement. With its enclosures, it is in the Papers of the Continental Congress, No. 139, folios 41--49, and Committee Book No. 191 states that it was filed.]
General Account of Foreign Receipts and Expenditures in the year 1784
Dr
To Messrs. Wilhem & Jan Willink, Nicholas & Jacob Van Staphorst & De La Lande & Finje Commissrs. of Loans in Holland for so much of the 5 Million Loan:
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Cr.
By Messrs. Wilhem & Jan Willink, Nicholas & Jacob Van Staphorst & De La Lande & Finje, Commrs. of Loans in Holland for sundry expenditures made by them, vizt:
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Registers Office, 11th. July, 1785.
for the Register,
Josp. Hardy,Clk.
General account of receipts and expenditures of the United States in the year 1784
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On Paris ... Livres ... 503,294.10s.9d
On Holland ... Florins ... 264,319 ... 129,739.26
For net proceeds of 28,543lbs. tobacco sold Peter Whiteside & Compy ... 1,435.13
For so much repaid by Thomas Fitzsimmons being part of the Cash advanced him for the purchase of Tobacco ... 1,014.10
... 2,449.23
For amount of bills returned which were remitted on Account of Salaries of Foreign Ministers ... 34,756.63
Daniel Parker & Compy.: For so much received from them on account ... 7,500.
John Thaxter: For so much received from him ... 200.
John Pierce Pay Master General: For so much received from him ... 26,365. 30
Ceronio Brothers & Nicoleau of Cape Francois: For so much received from them ... 395.71
James Read, Pay Master to the Navy: For so much received from him ... 192.7
Blaine and Miller: For so much received from them ... 758.62
Commission Account: For so much not paid of the Commissions deducted in the quarterly statement on the Sale of Bills of Exchge., the negotiations being made by the Superintendent of Finance ... 2,206.29
... 855,272.87
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For so much paid Tho. Fitzsimmons on account of 441 Hogsheads of Tobacco, shipd. p. the ship Andrew for France, the accot. Sales whereof have been received and Messrs. Le Couteulx & Co. of Paris debited for the nt. proceeds ... 22,416.11
For so much paid Daniel Clarke on Accot of his purchases, his Account of the same having been settled at the Treasury ... 4,300.53
... 46, 716. 64
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Registers Office the 27th. June 1785.
Joseph Nourse, Register.1
[Note 1: 1 JULY 18: The following committees were appointed:
Of the Week: Mr. [John] Vining, Mr. [Joseph Platt] Cook and Mr. [Elbridge] Gerry.
Mr. [William] Grayson, Mr. [Rufus] King and Mr. [David] Howell, on the letter of July 18 from the Secretary at War, respecting the movement of Col. Josiah Harmar's corps down the Ohio and the expiration of the terms of service of his men. A report was rendered July 20. Knox's letter is in No. 150, I, folio 55.
Committee Book No. 190.]
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