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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 --THURSDAY, OCTOBER 11, 1787.
Congress assembled present Massachusetts Connecticut New York New Jersey Pensylvania Delaware Virginia North Carolina and South Carolina and from New hampshire Mr [Nicholas] Gilman, from Maryland Mr [David] Ross and from Georgia Mr [William] Few.
On Motion of Mr [Nathan] Dane seconded by Mr [Rufus] King
Resolved That the Contract2 made by John Adams esqr Minister plenipotentiary in behalf of the United States of America on the first day of June 1787 for the loan of one Million of Gilders be and it is hereby ratified.
[Note 2: 2 See September 20, 1787. See also July 26, 1787. The ratified contract was entered by Benjamin Bankson in Papers of the Continental Congress, No. 135, I, pp. 337--345, which is in the Department of State.]
Resolved That three fair copies of the Contract with a ratification in the form of that agreed to on the first of Feby 1785 mutatis mutandis endorsed on each copy be made out and duly attested and that the secretary for the department of foreign Affairs transmit the same by several conveyances to Mr J Adams Minister plenipotentiary aforesaid.
The committee consisting of Mr [John] Keen Mr [James] Madison Mr [Nathan] Dane Mr [Melancton] Smith and Mr
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[William] Grayson to whom was referred a report1 of the board of treasury and a motion2 of Mr [John] Kean respectg the requisition for 1787 having reported3
[Note 1: 1 See September 29, 1787.]
[Note 2: 2 See October 5, 1787.]
[Note 3: 3 Papers of the Continental Congress, No. 26, pp. 662--664. See October 8, 1787. The portions underlined by the editor indicate the amendments made in the report during the debate. The adopted report was printed and a copy signed by Thomson is in Papers of the Continental Congress, Broadsides.]
"That from the several papers referred to them it appears that there is wanting for the services of the year 1787 the payment of one year's interest on the foreign debt and such part of the principal as becomes due in the year 1788 and the payment of one years interest on the domestic debt the sum of 3009798 64/dollars.
"That of the aforesaid sum, 1,309,391 64/ is absolutely necessary in specie. That there are considerable sums in specie due from the states over and above those which are necessary to discharge the existing demands on former requisitions which sums are nearly equal to the payment of that part of the present requisition that is absolutely necessary in specie and the objects for which the said sums were called for no longer existing they may be now appropriated to the purposes of the present requisition,4 That they have carefully examined the Opinion of the Board of treasury with respect to making a demand upon the states for the whole sum in specie, but after mature consideration are of opinion that the good consequences hoped by the board will not flow from the measure and that the domestic creditors will not be benefitted so much by the change as the other parts of the community will be distressed, therefore as Congress is the common guardian of the whole, they cannot recommend the measure but considering the present situation
[Note 4: 4 The underlined clause is Amendment A to the report, in the writing of Mr, John Kean.]
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of the Union would recommend as great a forbearance in the demand for specie as the nature of the case will admit. That in their Opinion many difficulties have arisen from the restrictions made in former requisitions in the issuing of the indents of interest; the making them receivable only for the year in which they were issued and then only when accompanied by a proportion of specie and declaring that after a certain period they should not be received from the States at the federal treasury, all which have served to check the exertions of the states and to keep back the specie payments. Nor have they had those beneficial effects expected from them of stopping the issue of indents where states had not passed legislative Acts to call them in or keeping up their value and preventing depreciation but on the contrary have opened a new scene of speculation in transferring the property of a citizen of a state which has not passed a legislative Act to a citizen of a state which has. In addition to this the committee observe that the Acts of Congress empowering the board of treasury to contract for the sale of western territory also empowers them to issue indents of interest to the purchasers so that to continue such restriction would operate only to the injury of a few and be no public benefit".
Whereupon
Resolved That for the services of the year 1787 for the payment of one year's interest on the foreign debt and such part of the principal as becomes due in the year 1788 and for the payment of one years interest on the domestic debt it will be necessary that three millions and nine thousand seven hundred and ninety eight 64/90 dollars be paid into the treasury of the United States on or before the first day of July next, to be appropriated to the following purposes viz.
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Resolved That the sums called for in the years 1784, 1785 and 1786 and stated by the board of treasury not now to be necessary, the Objects for which they were called for no longer existing, which sums amount to one million two hundred thousand dollars be now appropriated to the payment of that part of the present requisition which cannot be discharged but with specie,1 any thing in former requisitions to the contrary notwithstanding and shall 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.2
[Note 1: 1 The underlined clause is amendment B to the report, in the writing of John Kean.]
[Note 2: 2 The clause "thing in ........ in the estimate", is written at the bottom of the page, with the place for insertion marked with x.]
Resolved That One hundred and nine thousand three hundred and ninety one dollars 64/90 in the hands of the commissioners of loans in Holland in aid of the above sum be appropriated for the discharging the interest due on the foreign debt due in Holland and to no other purpose whatever.3
[Note 3: 3 This resolve was an amendment to the report. It is in the writing of Mr.John Kean.]
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1As 1,700,407 dollars called for are to be applied to the payment of the Interest due on the domestic debt of the United States
[Note 1: 1 John Fisher takes up the entry.]
Resolved That the several States be allowed to discharge the same by Indents for Interest on Loan Office Certificates, and upon other Certificates of the liquidated debts of the United States in such manner as they Judge most expedient, and to ascertain the evidences of Interest due on 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 Foreigners to any Loan Office within the United States and to have the Interest thereon settled and Certified to the last day of the year 1786 anything in the requisitions for the years 1784, 1785 and 1786 to the contrary notwithstanding.
Resolved, That the Quotas of the several States of the aforesaid sum of 1,700,407 dollars in Indents be as follows Vizt.
That the foregoing requisition, when paid shall be passed to the Credit of the States respectively on the Terms prescribed
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by the Resolve1 of Congress of the 6th day of October 1779.
[Note 1: 1 Journals, vol. XV, p. 1147.]
Resolved That the Board of Treasury furnish the several Loan Officers with Indents to be issued for Interest as aforesaid, and also with such Checks and Instructions as they from time to time shall Judge necessary to prevent Counterfeit Certificates of debts from obtaining a settlement of Interest and to detect Counterfeit evidences of Interest, and thereby to avoid receiving them in discharge of Taxes; which Indents 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 any other State in the Union as well as in the State in which they were issued. That the state paying such Indents of Interest into the Federal Treasury shall have Credit therefor, which payment shall be considered as a discharge of the Interest on the domestic debt in the proportion that each state avails itself of the said Indents of Interest, but no state shall have a right to pay more than its quota as specified in the existing requisitions of Congress in the said Indents of Interest.
Resolved That the Board of Treasury be and they are hereby directed to transmit to each state an account of their respective arrears in Specie and in Indents, to state to them the impediments that the public service has suffered and the accumulation of foreign and domestic embarrassments that have arisen from their delinquency,2 to press upon them the absolute necessity of their making payment of their arrears of specie, as it is the only fund on which Congress can rely for the support of the federal government, and to remind those states who continue particularly delinquent, that they must be considered as responsible for all the evils
[Note 2: 2 At this point Roger Alden takes up the entry.]
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which will inevitably flow from a disregard to the political obligations by which they are constitutionally bound.
Resolved That such part of the requisitions of the Years 1784, 1785 and 1786, as restricts the receipt at the public treasury of Indents of Interest without a certain proportion of specie, those parts which declare that after a certain day those States which have not paid their quotas shall be held to pay the same in specie and such part as prevent the receiving of the Indents issued in one Year in payment of taxes for another, be and they are hereby repealed; And it is hereby declared that the Indents issued in 1784 1785 and 1786 or under the present requisition, shall be indiscriminately received in payment of any state's quota of Indents of Interest.
1When the third resolution was under consideration a Motion2 was made by Mr [Abraham] Clarke seconded by Mr [Lambert] Cadwallader to strike out the words "in such manner as they judge most expedient" and in lieu thereof to insert "Or in such other manner as they or any of them may judge most expedient, provided the same shall be satisfactory to the creditors of the United States who may be affected thereby."
[Note 1: 1 Charles Thomson resumes the entry.]
[Note 2: 2 Papers of the Continental Congress, No. 26, p. 665, in the writing of Mr. Abraham Clark.]
A motion3 was made by Mr [William] Grayson seconded by Mr R[ichard] H[enry] Lee to amend the amendment by adding thereto the words "and provided there be no discrimination made between the citizens of one state and
[Note 3: 3 Papers of the Continental Congress, No. 26, p. 665. This is written as a continuation of Mr. Clark's motion.]
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another and foreigners." And on the question to agree to the Amendment on the Amendment the yeas and nays being required by Mr [William] Grayson
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So the question was lost.
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On the question to agree to the motion for Amendment the yeas and nays being required by Mr [Abraham] Clarke
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So it passed in the negative the question was lost.
When the quotas of the states were under consideration a motion was made by Mr [Dyre] Kearny seconded by Mr [Nathaniel] Mitchell to deduct from the quota of Delaware and add to that of Georgia the sum of 3506 dollars and on
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the question to agree to this motion the yeas and nays being required by Mr [Dyre] Kearny
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So the question was lost.
On Motion1 of Mr [Melancton] Smith seconded by Mr [Rufus] King
[Note 1: 1 Another motion on this subject, in the writing of Mr. Melancton Smith, is in Papers of the Continental Congress, No. 30, IV, p. 47, as follows: "That it be and is hereby recommended to the State of New York, to pay unto Brigadier General Donald Campbell or order on Account the Sum of two thousand Drs. Dollars in part on account of a Certificate from the Register of the U. S which certificate when is to be taken up for which Sum when paid the said State shall be entitled to a credit on their specie proportion of the Requisitions of Congress."]
Resolved That it be and it is hereby recommended to the state of New York to pay to Donald Campbell the sum of two thousand dollars on Account of a debt specified to be due to him from the United States by the resolve of the 31 day of July last taking care that the certificate of the register of the United States which he holds be taken up
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and cancelled that he be charged in the books of the treasury with the sum paid him by the state and a new certificate given him for the balance which may then be due him and that then the said state be entitled to a credit with the United States for the sum paid on the its specie proportion of the requisitions of Congress.
Congress took into consideration the report 1 of a Committee consisting of Mr [Melancton] Smith Mr [Nathan] Dane Mr [William Samuel] Johnson Mr [Edward] Carrington and Mr [Abraham] Clarke to whom had been committed a report2 of the board of treasury on a letter3 of the 18 of July from Capt J P. Jones together with a report4 of the commissioner of Accounts for the Marine department relative to the division of the prize Money due to the Officers and crew of the Bon Homme Richard and Alliance and the charges of capt Jones for recovering the same.
[Note 1: 1 See October 9, 1787.]
[Note 2: 2 See September 29, 1787.]
[Note 3: 3 See July 20, 1787.]
[Note 4: 4 Papers of the Continental Congress, No. 138, I, pp. 715--717, copy.]
And the report having been postponed to take up And the following motion5 made by Mr [Edward] Carrington under consideration viz
[Note 5: 5 Papers of the Continental Congress, No. 36, III, pp. 379--382, in the writing of Mr. Edward Carrington. The original motion has several verbal changes, not affecting the meaning, and one considerable portion struck out, to bring the reading into conformity with the Journal entry.]
6 Whereas it having been represented to the United States in Congress Assembled that large sums of prize money were due in Europe to the Officers and Crews of the Squadron commanded by Capt. John Paul Jones in the late War, and that from the circumstances under which that property was, as well as the inability of the claimants individually to recover their respective shares, the interference of the Sovereignty
[Note 6: 6 At this point John Fisher resumes the entry.]
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in their behalf had become necessary, it was on the first of November 1783 Resolved1 that the said Captain J.P. Jones be recommended to the minister plenipotentiary of the United States at the Court of Versailles, as agent to solicit under the direction of the said Minister for payment and satisfaction to the Officers and Crews for all prizes taken in Europe under his Command, and to which they were anywise entitled, and that the said Capt. J. P. Jones should receive the Commissions usually allowed in such cases out of the money which he should recover as agent for the said prizes in full compensation for his Services and expences; And it now appearing to Congress that the said Capt J. P. Jones did without loss of time repair to France for the purpose of carrying into effect the objects of his appointment so far as they were within that Kingdom; that finding that Mr Le Ray du Chaumont in whose hands the greatest part of the said prize money had been placed had become insolvent, he was reduced to the Necessity of abandoning so much of the property as lost, or turning his views upon the Court of France, whose interposition alone could reinstate it, that the said Capt J P. Jones did make application to and obtained from the said Court a settlement and payment of the prize money due from Mr Chaumont.2 It further appearing that the said Capt Jone's attendance at the Court of France for obtaining this payment, has necessarily been continued several years, and
[Note 1: 1 Journals, vol. XXV, pp. 787--888.]
[Note 2: 2 The following was struck out of the original motion at this point: "and make him answerable to the Crown for the reimbursement thereof; and as it does not appear that the Court of France was under any legal obligation to assume such payment, there is the greatest reason to suppose that the unremitted solicitations of the said Capt. Jones, and personal considerations which his distinguished bravery and good conduce had inspired, principally induced the sd. Court to this Act of liberality to the Officers and crews who had, under his command, gloriously served the two nations;"]
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exposed him to very great expence, without which it is probable he would not have succeeded, and although the terms upon which he Originally undertook the Negotiation were for the usual Commissions, yet as the business was found to stand upon ground materially different from that which was contemplated by either Congress or the said Captain Jones at the time of his appointment, it is just and reasonable that the full value of the services and expences which he has necessarily incurred for the benefit of the claimants be deducted from the property recovered, therefore
Resolved That the said Capt John Paul Jones be, and hereby is authorised to retain in his hands out of the prize money received from the Court of France for the Officers and Crews of the Squadron under his Command in the late War the sum of 47,972..11s Livres which it appears by his Oath were expended by him during his attendance at the Court of France for the purpose of obtaining the said payment; and that this be in full for his time and expences.
A motion1 was made by Mr H[enry] Lee seconded by Mr [William] Grayson, to postpone the consideration of the said Motion in order to take up the following Viz
[Note 1: 1 Papers of the Continental Congress, No. 19, III, p. 317, in the writing of Mr. Henry Lee. A memorandum of this proceeding for the Journal entry, was written by Thomson on the motion.]
That the excess of money's expended by the Chevalier Jones above the Commission, [allowed by the Resolution of the 1 Novr. 1783] while acting as agent under the authority of the Resolution of Congress of the 1st of November 1783 [Congress] for the Officers and Crews of his late Squadron be paid out of the federal Treasury, and that the Board of Treasury take order accordingly.2
[Note 2: 2 The changes in this paragraph were made by Thomson.]
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And on the question to postpone for the purpose above mentioned the yeas and nays being required by Mr. [William] Grayson
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So it passed in the Negative.
On the question to agree to the motion of Mr. [Edward] Carrington the yeas and nays being required by Mr. [Nathan] Dane
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So the question was lost.
1Congress then resumed the consideration of the report of the committee and thereupon
[Note 1: 1 Charles Thomson agains resumes the entry.]
Resolved2 That the quotas assigned to the several ships which were under the command of capt J.P. Jones in Europe by direction of the 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 separately agreeably to such quotas.
[Note 2: 2 These resolves were recommended in the committee report. See October 9, 1787.]
Resolved2 That the monies paid by capt J P. Jones into the hands of the honorable Thos. Jefferson be distributed by the board of treasury as soon as may be among the captors agreeably to the division made thereof under the direction of the court of France.
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Resolved, That the balance remaining in the hands of capt J. P. Jones rest until Congress shall give further directions concerning it.
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