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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 --TUESDAY, OCTOBER 9, 1787.
Congress assembled present Massachusetts Connecticut New York New Jersey Pensylvania Virginia North Carolina and South Carolina and from New hampshire Mr [Nicholas] Gilman from Delaware Mr [Nathaniel] Mitchell from Maryland Mr [David] Ross and from Georgia Mr [William] Few.
A report2 of the board of Treasury on a petition3 of Mr Abraham Yates junr. being called for and read, A motion was made by Mr [Robert] Burton seconded by Mr [Nathaniel] Mitchell to commit the said report which is in the words following, to wit;
[Note 2: 2 Papers of the Continental Congress, No. 138, II, pp. 601--608. See March 19, 1787.]
[Note 3: 3 See February 20, 1787.]
The board of treasury to whom was referred the petition of Abraham Yates junr. esqr. late continental loan Officer4 for the
[Note 4: 4 Benjamin Bankson takes up the entry.]
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State of New York, praying a further allowance for his services in that Department,
Beg leave to report
"That from a summary of Mr. Yates' Commission Account, whilst acting as Loan Officer for the State of New York, transmitted to this Office by the Commissioner of Accounts for that State, it appears, That the amount of the Commissions allowed to, and received by Mr. Yates, for his services as Loan Officer, was six thousand two hundred and forty three dollars Specie value.
That Mr. Yates entered on the duties of his station in the Month of November 1779, and continued therein 'till the 1st. of January 1786; but scarcely any business whatever was transacted in that Office after the Month of December 1781, 'till the Month of April 1785; so that the space of time in which Mr. Yates services were actually engaged in the business of the Loan Office, will not exceed three years.
That in the adjustment of Mr. Yates' Commission Account, the State Commissioner has allowed a Specie commission on the nominal sum of the Old continental emissions received, and paid by the Loan Officer at a depreciated value, contrary to the general principles which had governed in the former settlement of Loan Office Accounts; and, that the propriety of adhering to these principles is clearly stated in the Report of the Comptroller of the Treasury, concurred in by this Board on the 16 December last. That in consequence of this mode of Adjustment, the Comptroller states, that there is a considerable difference in favour of Mr. Yates in the Specie balance found due to him. With respect to the additional compensation claimed by Mr. Yates, the Board observe, that it arises for services in signing, stamping and numbering about Twenty three thousand Bills of the New emission; and in counting, punching and packing 2,825,000 dollars in Bills of the Old emission; for which last service
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Mr. Yates charges Fourteen hundred and twelve pounds, nine shillings, New York Currency, equal to Three thousand five hundred and thirty one Specie dollars, being a commission of 1/8 per Cent in Specie on the amount of the Old continental emissions abovementioned. That on estimating the amount of the Specie commission abovementioned at the value of the Old continental money as fixed by the Resolve of Congress of the 18h March 1780, it would amount to 141,240 continental dollars, which is equal to a commission of 5 per cent (instead of 1/8 as allowed by Congress) on the whole sum received; from which it clearly appears, that if a Specie commission was to be estimated on Monies received at a depreciated rate, the same would constantly augment in a ratio proportionate to the stage of depreciation; so that on the continental Monies still to be destroyed at the Treasury (estimating the present worth at 250 for one, at which it was lately purchased by the State of New York) the Commission would exceed 30 per Cent.
That it appears to this Board from a report of the two Commissioners employed in this City to examine, count, and destroy the Bills of the Old continental emissions now bringing into the Treasury, that betwixt the 15h December and the 19th. January last, they had examined, counted and destroyed 2,759,217 dollars of the Old Continental emissions. That the allowance made to each of these commissioners is Two dollars per day; so that the expence attending this service has been One hundred and eight dollars; Admitting therefore the trouble of receiving and punching the Old emissions at the respective Loan Offices, to be equal to that of examining and destroying the same at the Treasury, the expence of cancelling the sum received by Mr. Yates would be One hundred and eleven Specie dollars, instead of Three thousand five hundred and twenty one dollars, as claimed by his Memorial. On the whole the Board beg leave to
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observe, That on estimating the commissions on the Old emissions received by Mr. Yates on the principles stated in the report of the Comptroller, the Specie balance found due to that Officer would be diminished Two thousand eight hundred and ninety four dollars; so that should the commission of 1/8 per Cent. on the Old emissions cancelled by him in pursuance of the Resolve1 of the 18 March 1780, be allowed (notwithstanding the objections made thereto by the Commissioner of Accounts for the State of New York,) the amount of the same would fall far short of the Sum obtained by Mr. Yates in consequence of the principles on which his commission Account has been settled; since by a just estimation of the commission of 1/8 per Cent. as claimed by the Memorial, the same would amount only to Eighty eight Specie dollars. The principle of applying a Specie commission on Monies received on account of the United States, at a depreciated value, appears to this Board a precedent of so dangerous a nature that they have esteemed it their duty, in the first instance, which has come under their cognizance, to be particular in their observations on it. The Commission Account of the Loan Officers of the States of Pensylvania and Massachusetts, estimated in this manner, would amount to a sum, exceeding in a prodigious degree, any equitable compensation for their respective services. Nor is this the extent of the mischief; the various Officers entitled to Commissions in the Staff department, might plead a precedent for applying the same principle in the settlement of their respective Accounts, and thereby swell the amount of their Commissions to a sum of a far greater magnitude, than the public were bound to pay, or they had a right to expect. In the Commissary and Quarter Master General's department, under the direction of the late Major
[Note 1: 1 Journals, vol. XVI, pp. 262--266.]
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General Greene and Colonel Wadsworth; the sum of Old emission money received by them respectively, is as follows:
By the Resolve1 of Congress of the 2d. March 1778, the commission allowed to the Quarter Master General, and his two principal Assistants, for their trouble and expence, was to be one per cent on the monies issued to them. By the resolve2 of the 9 April 1778, the Commissary General, his deputies, and purchasing Assistants, are allowed three per cent, on all the monies received and expended by them in their respective departments; At the date of the first resolve the value of continental money compared with Specie was at 56 79/90ths. per 100, at the date of the second, it was 47 86/90ths. If therefore a specie commission, agreeably to the value of continental money when the commission was fixed, is allowed on the expenditures above stated, the sum due under that head to the late General Greene, and his two principal Assistants,
[Note 1: 1 Journals, vol. X, p. 210.]
[Note 2: 2 Journals, vol. X, p. 327.]
In the Commission of the Commissary General's department, those of the subordinate Officers are included, which is not the case in the first sum; but estimating the commissions due to Officers of same condition in the Quarter masters department to about the same allowance (which will be found nearly the case) the aggregate of the commission Account on these two Departments only, would be Two Million of Specie dollars. Whether or not the sum found due by the State Commissioner to Mr Yates, is more than an adequate
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compensation for his services, whilst acting as Loan Officer, the Board do not take upon themselves to determine. From the circumstances stated in this report, Congress will judge, whether any further allowance will be proper; or whether it will be necessary to revise the adjustment of the said Accounts, on the principles stated by the Comptroller of the Treasury. If on such readjustment the amount of the commissions found due to Mr Yates should not be adequate, The United States in Congress (who are alone competent to this Object) may make such further additional allowance as they may judge necessary without giving a sanction to the establishment of a principle in the settlement of public Accounts, which in its consequences may prove highly injurious to the interest of the United States.
1 On the question for committing the foregoing report the yeas and nays being required by Mr [Nathaniel] Mitchell
[Note 1: 1 Charles Thomson resumes the record.]
{table}
So the question was lost
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[Report of committee respecting J. P. Jones1]
[Note 1: 1 Papers of the Continental Congress, No. 19, III, pp. 309--310, in the writing of Mr. Melancton Smith. Read October 9 and passed October 11, 1787. See July 20 and September 29, 1787.]
The Committee consisting of Mr. [Melancton] Smith, Mr. [Nathan] Dane Mr. [William Samuel] Johnson Mr. [Edward] Carrington and Mr. [Abraham] Clark, to whom was referred the report of the Board of Treasury on a Letter of the 18th. July last from Capt. Paul Jones together with a report of the Commissioner of Accounts for the marino Department, relative to the division of the Prize money due to the Bonne Hommo Richard and Alliance, beg leave to report,
That it appears to your Committee that Capt. Paul Jones has retained in his hands the Sum of 47,972: 11 Livres, which Sum he states he has actually expended in negotiating the recovery of the prize money due to Bonne Homme Richard and Alliance. But as the Resolution of Congress of the 1st. November 1783 declares "that the said Capt. J. Paul Jones shall receive the Commission usually allowed in such cases out of the money he shall receive as Agent for the said. Prizes in full compensation for his Services and Expences," And as the money he has recovered is not the property of the public but of individuals, your Committee are of Opinion that he cannot be allowed more than the usual Commission whereupon they submit the following Resolution,
That Capt. John Paul Jones, be allowed a Commission of five perCent. in full compensation for his services and expences, in soliciting and recovering from the Court of Versailes payment for the prizes taken in Europe by him [the Squadron under his command] and due to the Bonne Homme Richard and Alliance, To be estimated upon the amount of the Money by him received, this being the Commission usually allowed in such cases.
Your Committee further report, That it appears that a division of the prize money was made in France under the direction of the Government thereof. That although this Division was not made in strict conformity, either to the Ordinance of his most Christian Majesty or to the Rules of the American navy, yet as it has taken effect, and cannot now be rectified they are of Opinion it ought to be considered as valid, wherefore they submit the following Resolution
That the quotas assigned to the several Ships, which were under the command of Capn. Jno. Paul Jones in Europe by direction of the
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court of France, be confirmed and considered as valid. And that a distribution of the prize money be made amongst the crews of the said Ships, seperately, agreably to such Quotas.
Your Committee farther Reports, That as the Monies due to Capt. Jones Squadron are not yet recovered from the Court of Denmark, and as Cap. Jones is comissioned to negotiate this business, in their Opinion it would be proper that an immediate distribution should be made among the Captors only of the Sum actually paid by Capt. Jones to Mr. Jefferson, and that Cap. Jones be permitted to retain in his hands the Sum due from him, until the business be concluded with the Court of Denmark or until the farther Order of Congress, whereupon they submit, that it be resolved,
That the monies paid received by Capt. Jno. Paul Jones into the hands of the honabl Mr. Jefferson, received of the Court of France and paid by him into the hands of the honorable Mr. Jefferson, be distributed by the Board of Treasury, as soon as may be among the Captors, agreably to the division made thereof by the Court of Fr under the direction of the Court of France.
Resolved That the Ballance remaining in the hands of Capt. Jno. Paul Jones be reserved to be distributed when the Monies due from the Court of Denmark be recovered or allowed to remain there until Congress shall give farther directions concerning it.
[Report of Board of Treasury on account of R. Harrison1]
[Note 1: 1 Papers of the Continental Congress, No. 138, I, pp. 585--586, read October 9 and passed October 12, 1787.]
The Board of Treasury to whom was referred a Letter2 from the Honorable Mr. Adams of the 24th. February last together with an Account3 of Mr. Richard Harrison of Cadiz,
[Note 2: 2 See July 30, 1787.]
[Note 3: 3 See July 6, 1787.]
Beg leave to Report
That it appears from the said Letter that Mr. Harrison has advanced for the support of the Officers and Crew of the Ship Betsy James Erwing Commander, whilst she was detained by the Moors, and for Provision for the Crew on their passage to America, the sum of Three hundred and Thirty one and one quarter Mexican Dollars, of which advance he sollicits the reimbursement.
On the above application the Board submit to the consideration of Congress the following Resolve
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That the Board of Treasury take order for reimbursing to Mr. Richard Harrison Merchant of Cadiz the sum of Three hundred and thirty one Dollars and one quarter of a Dollar, being the Amount of his Advances for the maintenance of the Captain and Crew of the Ship Betsy, James Erwing Commander, whilst detained by the Moors, and for Provision for subsisting the Crew on their Passage to America.
All which is humbly submitted,
Samuel Osgood
Walter Livingston
Arthur Lee1
[Note 1: 1 October 9, 1787. According to indorsement and the Committee Book, Papers of the Continental Congress, No. 190, p. 172, the following petition was referred to the Board of Treasury to report:
Petition of John Hurd, read October 9, 1787, requesting payment of bills of exchange for $48. Papers of the Continental Congress, No. 42, III, p. 582. Report rendered February 1, 1788.
Also according to the Committee Book, the following committee changes were made:
The committee of March 19, 1787, on the petition of Nathaniel Norris, was discharged.
The committee of September 25, 1787, on the request of Mr A. Lee was discharged.
Mr. Joseph Platt Cook was appointed in place of Mr. Egbert Benson on the committee of May 2, 1787, on a letter of the Secretary at War, dated April 26, 1787. See October 12, 1787.]
Board of Treasury
October 6, 1787.
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