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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 --FRIDAY, NOVEMBER 3, 1786.
Congress assembled. Present, as before.
On motion of Mr. [William] Houstoun, seconded by Mr. [John Bubenheim] Bayard,
Resolved, That the several matters now before Congress, be referred over and recommended to the attention of the United States in Congress assembled, to meet at this place on Monday next.
On motion of Mr. [Henry] Lee, seconded by Mr. [John Bubenheim] Bayard,
Resolved, That the thanks of Congress be given to his Excellency Nathaniel Gorham, for his able and faithful discharge of the duties of President, while acting in that important station.
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The Com. Consisting of [Mr. Edward Carrington, Mr. Charles Pinckney, and Mr. William Houstoun] beg leave to report in part the following Resolution:
That the Post Master General be directed to enter into Contracts, in pursuance of the instructions heretofore given him; for the conveyance of the Mail from Portland in Massachusetts to Savanna in Georgia, with either the proprietors of the Stages or post riders, so as to suit the convenience of the Mercantile business, provided that upon propositions which may be equal or nearly so preference be given to the Stages.1
[Note 1: 1 This report, in the writing of Edward Carrington, in the Papers of the Continental Congress, No. 61, 553. According to indorsement the "question lost."]
The Board of Treasury to whom was referred a Motion of the Honble. the Delegates of the State of Pennsylvania, praying that the Sum of Seventy-eight thousand, six hundred and forty-two Dollars, which had been lately delivered to the Comproller of the State of Pennsylvania in Bills of Credit of that State, bearing date in the Year 1781, might be placed to the Debit of the General Account of said State, with the United States, Beg leave to Report to Congress:
That the above sum of 78,642 Dollars, forms part of the Sum of 390,000 Dollars, in Bills of Credit issued in the Year 1781, in the State of Pennsylvania, and received by the Commissioner of the Loan Grace in that State, in pursuance of an Agreement made between the late Superintendant of Finance, and the Government of the State of Pennsylvania; by which it was stipulated, that the Sum of 390,000 Dollars in the Bills above mentioned should be paid into the Continental Loan Office, to redeem the like Sum of the New Emission Money of the 18th. March, 1780; being a Balance due to the United States of the Four-tenths of the said Money emitted on the Funds of the State of Pennsylvania.
That the above Sum of 390,000 Dollars, appears accordingly to have been received by the Commissioner of the said Office, but that no part of the New Emission Money of the 18th. March, 1780, was in Exchange therefor delivered over by the late Superintendant of Finance.
That in consequence of an application made to this Board by the Commissioner of the Loan Office of the State of Pennsylvania stating the circumstances of the Negotiation above mentioned, and that he
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had applied to the use of the United States, out of the sum of 390,000 Dollars, by him received of the Treasurer of the State of Pennsylvania, the Sum of 311,350 Dols. The Board informed the said Officer, that though this transaction had not come under their cognizance, they had no objection to his delivering over to the Treasurer of the State of Pennsylvania, the sum of 311,358 dollars in New Emission Money of the 18th. March, 1780, in lieu of the like Sum in Pennsylvania State Money, said to have been appropriated to the use of the United States; and the Balance being 78,642 Dollars in the same Money, which he had received from the Treasurer of the State.
taking temporary receipts for the said Payments, which were made at different times, but that on his Application for a formal Receipt acknowledging that the above payments were in complete discharge of the Sum of 390,000 Dollars received of the State of Pennsylvania, in State Money of the year 1781, the Comptroller of the State would not permit such a receipt to be given, and peremptorily demanded the Sum of 78,642 Dollars in New Emission of the 18th. March, 1780, alledging that the State would give Credit for the Sum, which had been received in the State Money as aforesaid.
That on a refusal on the part of the Commissioner of the Loan Office of the State of Pennsylvania, to pay the Sum required of him in the New Emission Money of the 18th. March, 1780, an attachment has been laid on his Goods, and Effects to the amount of the Sum above mentioned, and to suspend the execution of the same a Certiorari has been granted, the merits of which are still depending.
In justice however to the State of Pennsylvania, it is incumbent on us to observe, that this process of the Comptroller, is in this instance, altogether repugnant to the Laws of the State, so far as they relate to matters of account betwixt that State, and the Union; since by an Act of that State, it is made the duty of the Comptroller, to distinguish such Accounts as are of a Federal nature, in order that
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they may be Adjusted on such principles, as shall be proposed by the United States in Congress, and agreed to on the part of the State: That the Account for which the Property of Mr. Smith is Attached, was in the opinion of the Comptroller of the State, of that nature, appears clearly from his application by Letter to this Board, to direct the Loan Officer to give up to the State the full Sum of 390,000 Dollars in the New Emission of the 18th. March, 1780.
From the above statement, which it becomes the duty of the Board to lay before Congress in order to enable that Honorable Body to judge of the propriety of the present Application, the Board beg leave to observe--
That the Sum of 78,642 Dollars in Pennsylvania State Money, which was paid into the Treasury of that State, in pursuance of the Negotiation above mentioned, must either be considered in full discharge of the Balance due to the State, on the Monies by them paid to the Commissioner of the Loan Office of the State of Pennsylvania, or it must not.
If it is to be so considered; then there is no necessity of giving the State of Pennsylvania Credit for the Monies above mentioned, because the Negotiation betwixt the late Superintendant of Finance, and the Government of Pennsylvania, is by such arrangement completely Settled.
If it is not to be so considered; then the State of Pennsylvania, will have a right to the Sum of 78,642 Dollars, in the New Emission Money of the 18th. March, 1780; (provided a sufficient Sum in old Continental Emissions be paid in by the said State, to admit the right of Issuing such an amount of the Emission last mentioned) and the United States will have a right to reclaim of the Treasurer of the State of Pennsylvania, the Sum of 78,642 Dollars in State Money of the Year 1781, which the Comptroller obtained possession of, in the manner stated in this Report.
From the process issued on the part of the State of Pennsylvania it appears that the State view their Claim in the light last mentioned, Considering it therefore in the same point, of view, We beg leave to Observe.
That an application for the above sum of 78,642 Dollars in the Pennsylvania State Money, to be passed to the Debit of that State as so much Specie, must be considered on similar principles, as if an Application had been made for giving up and passing to the Debit of a State, a like Sum in the New Emission Money of the 18th. March,
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1780, of the proportion which was subject to the orders of the United States; And that the reasons therefore which has governed this Board, on an Application from the State of New York relative to a Sum of New Emission Money, issued on the Funds of that State, will in their opinion, apply in the present instance.
On the reference last mentioned, it was observed by the Board, "That a change of the Credit of Monies paid into the General Treasury, in pursuance of the Resolves of the 18th. March, 1780, in any one instance, would operate as a relinquishment of the Balances due from the several States on that head; and that such relinquishment was not compatible with the exhausted State of the Finances, or with that steady adherence to the execution of the Resolves of Congress which ought to govern in the Collection of the General Revenue."
To this general Observation the Board beg leave to add: That the Funds established in several States for the redemption of the New Emission Money, are now operating so as to render the said Money daily more valuable; that in consequence they have already appropriated part of those Monies in the States of New York, Maryland, and Virginia; that it would be injustice to these States to make a distinction with respect to Pennsylvania; and that whilst the preservation of the Western Territory, obliges the United States in Congress to introduce a more extensive Military establishment than was provided for in the Estimates of the last and present Year, every resource ought, in their opinion, to be carefully cherished, which has a prospect of contributing to the discharge of the Expences of the General Government.
From the circumstances above stated, the Board submit to the consideration of Congress, the following Resolve--
That it would be improper for the United States in Congress to pass to the Debit of the State of Pennsylvania, in their general Account with the United States, the Sum of Seventy-eight thousand six hundred and forty-two dollars, of Bills of Credit, issued by that State in the Year 1781, and received by the Commissioner of the Loan Office in the said State, by virtue of a Warrant of the late Superintendant of Finance of the 16th. July, 1781.
All which is humbly Submitted.1
[Note 1: 1 This report, signed by Samuel Osgood, Walter Livingston, and Arthur Lee, is in the Papers of the Continental Congress, No. 139, folio 421. According to indorsement on the accompanying letter, folio 417, it was read November 3.
The Board enclosed copies of sundry documents relating to the dispute; these are on folios 429--447.
November 3: The memorial of John Snowden, praying a settlement of his accounts as Conductor of Military Stores in 1778--80 was referred to the Commissioner for settling Quartermaster Accounts to report. Snowden's memorial dated November 2, is in No. 42, IX, folio 423. According to indorsement it was read November 3. Reported on February 7, 1787, it was acted on March 8, 1787.
Also the Postmaster General was directed to take order on "his report on Mr. Twining's metal viz. That Mr. Twining has undoubtedly made very extraordinary and successful exertions in opposition to uncommon difficulties for the establisht. of an extensive line of stages, which various testimonies induce the postmaster genl. to believe will be of great public utility; and from Mr. Twinings drafts upon him for money the P. M. genl. is led to think that much dependence has been placed on the contract with the genl. Post Office for assistance in defraying the heavy expences wch necessarily attend such an establishment. Should this resource fail so soon, the Establisht. yet in its infancy must at least languish, the public sustain an injury and Mr. Twining, notwithstanding his merit in this instance probably be ruined. And as the next contract will furnish an opportunity for obtaining satisfaction for any neglects during the present year, the Post Mr. genl. begs leave to recommend that Mr. Twining's present quarter's pay be not detained after it shall become due, but that such deductions as the justice due to the United States may demand may be made hereafter, which is respectfully submitted."
Committee Book No. 190.]
October 31st., 1786.
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