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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, SEPTEMBER 24, 1785.
Congress assembled. Present, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Virginia, South Carolina and Georgia; and from the State of Delaware, Mr. [Gunning] Bedford.
Congress resumed the consideration of the requisition of 1785, which being amended to read as follows:
The grand committee, to whom was re-committed a report on the subject of supplies for the year 1785, submit the following report:
Resolved, That for the services of the present year, 1785, for the payment of one year's interest on the foreign and domestic debt, and as a provision to discharge the balance of the estimate of April 27th, 1784, above the sum called for by the resolve of Congress of that date, it will be necessary that 3,000,000 of dollars, in addition to 649,8801 dollars hereafter provided for, be paid into the common treasury, on or before theday ofnext, to be appropriated to the following purposes:
[Note 1: 1 The broadside, pasted in the Journal in lieu of copying out the text of the report, is one of the issues of the report of July 18, and is modified by Thomson with pen and ink. He failed, however, to make the proper change of this amount and in the broadside it still remains 708,452.]
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Deduct for part of the Dutch loan, 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
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estimate, 649,880 dollars, and there remains the balance of 3,000,000 of dollars, to be paid into the common treasury.
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 8,000,000 of dollars, stud the whole of the requisition for 2,000,000 of dollars, to be applied to the use of the United States, before any new requisition 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, on or before theday ofaforesaid.
That the committee have not been able to obtain information how many states have complied with the resolution of February 17th, or that of April 18th, 1783, relative to a rule for adjusting the quotas of the several states in 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 meantime, 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 quotas of the several states should be adjusted, agreeably to the best information Congress may, from tune to time, have obtained upon the subject. And, upon this principle, recommend to Congress, that in the present requisition for 3,000,000 of dollars, the quota of the several states be as follows, viz.
And for preventing the depreciation of certificates to be issued as aforesaid, the legislature of each state is required to provide in the act complying with this requisition, that if on theday of the said states quota of the said certificates so to be issued,
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shall not be in the hands of the state treasurer, or other proper officer, the deficiency shall be collected and paid into the continental treasury in specie, which, when so paid, is hereby appropriated to the redemption of such surplus certificates.
Provided nevertheless, that any state which shall have obtained a credit in the books of the treasury, for the full payment of its quota of this requisition, shall, at any time after such payment shall have been completed, be admitted to pay into the treasury of the United States, any sum or sums in the said certificates to be issued for interest as aforesaid, and have credit for the same, to be deducted out of the whole quota of such state, of the next succeeding requisition; provided that such sum or sums do not exceed one-half of the said quota.
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.
Which sums, when paid, shall be passed to the credit of the states respectively, on the terms prescribed by the resolution of Congress
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of the 6th day of October, 1779, and together with the moneys relied on to discharge the aforesaid deduction of 649,880 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 may so 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 the interest due upon loan-office certificates, and upon ether certificates of the liquidated debts of the United States; and to ascertain the evidences of interest due upon loan-office certificates, the holders thereof respectively shall be at liberty to carry them to the office from which they issued, and the holders of other certificates of liquidated debts of the United States, to carry the same to the loan-office of that state, wherein they are inhabitants, 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 1784.
Provided that the commissioner of the continental loan-office in any state, shall not, on any pretence whatever, settle or issue any certificate or certificates for the interest due on any continental loan-office certificate, or other certificate of liquidated debts aforesaid, unless as hereafter provided, until the state for which he is continental loan-officer, shall have passed a legislative act complying with this requisition; nor shalt he issue any certificate, or take any other measure whereby the interest may be paid by the state in any mode not pointed out by this requisition; nor shall the commissioner of the continental loan-office in any state that shall have complied with this requisition, issue any certificate, or take any other measure whereby a discrimination may be made by such state, between the holders of loan-office certificates issued from his office, who are citizens of that state, and foreigners or the citizens of any other state that shall have complied with this requisition: Excepting from this proviso, such state or states as, by the books of the treasury, shall appear to have paid their full quota of the requisition of the 30th October, 1781, for 8,000,000 of dollars, upon the former and present apportionment of the same, so far as to admit the commissioner of the continental loan-office in such state or states, to issue certificates for interest, in the
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same manner as the commissioner in the states passing legislative acts as aforesaid. Provided always, that any continental loan-officer shall issue certificates for interest as aforesaid, due on continental loan-office certificates issued from his office, and belonging to foreigners, and also to the citizens of such state as shall have passed a legislative act complying with this requisition as aforesaid.
Provided nevertheless, that where any state hath made provision by law, for paying any part of the interest of the domestic debt of the United States, contained in the estimate, on which this requisition is founded, the continental loan-officer in such state, shall, without delay, ascertain the sum which shall have been so paid, pursuant to such law, on or before theday ofnext, and shall make report thereof to the board of treasury, and also to the legislature of such state, who may deduct from their quota of this requisition, and be credited in part payment thereof, the sum so paid not exceeding two-thirds of such quota, every state being held to pay in specie one-third part of the said quota, previously to the admission of such credit. And if any state shall have so paid in discharge of interest as aforesaid, a sum exceeding two-thirds of its quota of this requisition, such surplus shall be admitted as a charge against the United States, in the settlement of the general account of such state; but if any interest after the saidday ofshall be paid by any state, contrary to the true intent of this requisition, such payment shall not be admitted as a charge against the United States. And if any commissioner of a continental loan-office, shall disobey or neglect to early into execution, any resolution or order of Congress, or otherwise neglect his duty in the said office, the board of treasury shall suspend him from his office, and the emoluments thereof, and immediately report the reasons thereof to Congress; and the board of treasury are hereby empowered to appoint in the room of the commissioner of the continental loan-office so suspended, a citizen of the state in which the office is kept, who shall have all the powers and emoluments of a commissioner of the continental loan-office, until Congress shall finally determine respecting the suspension.
And every commissioner of the continental loan-office, previous to settling and issuing certificates as aforesaid, for the interest due on certificates of liquidated debts, shall administer an oath or affirmation, or require a certificate signed by one of the persons whom the respective state in the legislative act complying with this requisition shall
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appoint, that he has administered to the owner or possessor of every such certificate, an oath or affirmation, that the same is bona fide the property of the particular state in which the said commissioner resides, or of a citizen or citizens of the said state, or of some corporate body or charitable institution within the same, or of some foreigner who is not a citizen of any of the United States, describing the certificate or certificates alluded to in every such oath or affirmation, in such manner as shall be necessary to identify the same, or as may be prescribed by the legislature of the said state.
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.
The sum quotaed upon the states in the present demand, by providing for the deficiencies of former years, exceeds 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 cheerful 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
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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 a broadside issue of the report of July 18, with ms. changes by Thomson to bring it into agreement with the action taken by Congress, has been pasted into the Journal in lieu of copying out the text.]
A motion was made by the State of Virginia, seconded by the State of South Carolina, that the further consideration of the requisition be postponed, in order to take up the following proposition:
That where supplies have been furnished by individuals, for the use of the army of the United States, and have been assumed by any state, the commissioner for settling the accounts of such state with the United States, shall be authorised and instructed to liquidate such claims, upon the same principles as though they had remained in the hands of the individuals. and admit them as a charge against the United States.
And on the question to postpone for the purpose above mentioned, the yeas and nays being required by Mr. [Samuel] Hardy,
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[Note 1: 1 This vote, except that it omits Houstoun's vote, is in the Papers of the Continental Congress, No. 36, III, folio 145.
On this day, as the indorsement states, was read a petition of Toussaint Lopez relative to his claim. It is in No. 42, IV, folio 360. Committee Book No. 191 states that it was filed.
Also, a letter of John Barry and Thomas Read enclosing a memorial. It is in No. 78, IV, folio 493. The memorial, on behalf of Barry and Read and their brother officers of the Navy, prays that they be put on the same footing as Army officers in the matter of half-pay, commutation and land bounties. It is in No. 41, I, folio 427, and was read in Congress September 28.
Also was read a report from Paymaster General John Pierce, dated September 23, on the depreciation of pay of Peter Bryan Bruen. It is No. 62, folio 95, and is indorsed as passed February 3, 1786.
Also, according to Committee Book No. 190, the motion of the Delegates of Pennsylvania relative to "officering the troops of that state raised under acts of April 1785" was referred to the Secretary at War to report, which he did, October 7.]
So the question was lost.
The Board of Treasury to whom was Referred the Petition of Lewis Nichola and Richard Lloyd Agents to the Invalid Corps, and Hazens Regiment in behalf of themselves and the Agents of Armands Corps the Regiment of Artificers and the Corps of Sappers and Miners, beg leave to report--
That the Agents of these Corps--were appointed to settle the accounts and to receive and distribute the certificates of the final balances that were due to the Officers and Men that belonged to their respective Corps in consequence of the Orders of the late Commander in Chief.
That they have executed the duties of their appointments so far as to compleat the settlement, and receive the Securities of their respective Corps. And that some of them have accounted for the Issue of Certificates intrusted to them with the Commissioner of Army Accounts.
That the Act of Congress of the 27th May, 1785, has provided for the Agents of the Line appointed under the same Authority: but that no provision has been made for the Agents of the Corps not Appertaining to any State.
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That the duties of Regimental Agents necessarily engrossed for a considerable time their whole attention, and the receiving and keeping Regimental Certificates was confidential and hazardous.
The Board are therefore of opinion, that the petitioners axe entitled to a reasonable allowance: but as the duties and services of the Agents referred to in the Memorial are very different, the compensation to be made, ought in their opinion, to be proportioned to their respective services, on the final settlement of their accounts.
They therefore submit to the consideration of Congress the following Resolves.
Resolved, That when the Agents appointed to issue certificates for the balances due to the Corps' of the late Continental Army (not appertaining to any State) shall have finally adjusted the accounts of their respective Corps with the Commissioner of Army Accounts, the Board of Treasury be authorized to ascertain and report to Congress such compensation, as from the report of the said Commissioner, they shall judge proportionate to the service of the respective Agents.
Resolved, That the certificates which remain undelivered by the respective Agents abovementioned to the parties to whom they belong be transmitted by the Commissioner of Army Accounts [returned to the Commissioner of Army accounts with whom they are to settle the accounts of their Agency relative to the delivery] to the Supreme Executive Authority of the State in which the parties having a fight to claim the same were enlisted, in the same manner as is provided for by the Resolves of Congress of the 3rd November, 1783, and 27th. May, 1785, in the case of regiments appertaining to the several States.
September 22nd, 1785.
[That the certificates which remain undelivered by the respective Agents, above mentioned to the individuals to whom they belong be returned to the Commissioner of Army Accounts with whom the said Agents are to settle the accounts of their Agency relative to the deliveries made to the individuals aforesaid; And the Commissioner for Army accounts shall transmit such remaining certificates to]1
[Note 1: 1 This report, signed by Waiter Livingston and Arthur Lee, is in the Papers of the Continental Congress, No. 138, II, folio 189. The portions in brackets are interpolations by Charles Thomson. The indorsement states that this report. was read September 24 and passed October 11. The petition is in No. 42, V, folio 443. Committee Book No. 191 notes that the report was transferred. See ante, August 16, also post, October 28.]
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Office for Foreign Affairs,
22d September, 1785.
The Secretary of the United States for the Department of foreign Affairs, to whom were referred certain official Papers delivered to Congress by the Delegates of Massachusetts on the 19th Inst. relative to attempts of the Province of New Brunswick to extend their Jurisdiction to Moose Island, &c., reports--
That in his Opinion the Advice given by the Council to his Excellency the Governor of Massachusetts on the 9th Instant was proper, and that as one unopposed Encroachment always paves the Way for another, the Commonwealth of Massachusetts be advised by Congress to proceed without Noise or Delay to garrison Such Places in their actual Possession as may be most exposed.
Your Secretary proposes by these Garrisons to support the Inhabitants in their Allegiance, and to overawe New Brunswick peace Officers, whom Impunity might tempt to be insolent and troublesome.
He thinks these Garrisons should not be so large as to give Alarm, that they should be under select and discreet Officers, that they should be formed by immediate Detachments from the Militia of some of the other Counties, to be at Continental Charge, and be, as soon as may be relieved by Detachments from the continental Troops raised or to be raised for the Frontiers. That they should be ordered never to pass our Limits, and to act only on the Defensive, when called upon to support the civil Authority.
However delicate this measure may appear, it may in the Opinion of your Secretary be safely confided to the Prudence of the Governor and Council of Massachusetts.
Nothing should be done to provoke Hostilities on the one Hand, and on the other it must be remembered, that too great and manifest Reluctance to assert our Rights by Arms, usually invites Insult and Offence. Your Secretary is very apprehensive that to permit these Disputes to remain unsettled will be to risque mutual Acts of Violence, which may embroil the two Nations in a War. He therefore takes the Liberty of calling the attention of Congress to a Report he had the honor of making to Congress on this subject the 21st April last.
Your Secretary thinks that no Nation can consistant with the Experience of all Ages, expect to enjoy Peace and Security any longer than they may continue prepared for War, and he cannot forbear expressing his Fears that the United States are not at present in that desirable Situation.
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As the 11th Article of the Treaty of Alliance between his most Christian Majesty and the United States Contains an explicit and perpetual Guarantee of all the Possessions of the latter, your Secretary thinks it would be adviseable to apprize the Court of France of the Disputes in Question, that his Majesty may co-operate with the United States in measures proper to bring about a Settlement of them. In his Opinion these measures should be formed and pursued in Concert with France, and in such a manner as that she may have no just Cause to be dissatisfied, or to say that as we acted without her Concurrence, we alone are to be responsible for the Consequences.
All which is Submitted to the Wisdom of Congress.
John Jay.1
[Note 1: 1 This report is in the Papers of the Continental Congress, No. 81, I, folio 397. It is indorsed as read this day and "Thursday next assigned for consideration. Eastern Boundary." A copy of a letter from Thomas Carleton, dated St. John, June 21, 1785, stating the British side of the matter is on folio 401. Committee Book No. 191 notes that the matter was transferred.]
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