# United States Statutes at Large/Volume 2/7th Congress/1st Session/Chapter 32

Chap. XXXII.—An Act making provision for the redemption of the whole of the Public Debt of the United States.
Appropriations for the extinguishment of the public debt. See vol.i. p. 138, 218, 279, 338, 370, 410, 432, 488, 512, 562. Debts to individual states, vol. i. p. 49, 178, 616.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That so much of the duties on merchandise and tonnage as, together with the monies, other than surpluses of revenue, which now constitute the sinking fund, or shall accrue to it by virtue of any provisions heretofore made, and together with the sums annually required to discharge the annual interest and charges accruing on the present debt of the United States, including temporary loans heretofore obtained, and also future loans which may be made for reimbursing, or redeeming, any instalments, or parts of the principal of the said debt, will amount to an annual sum of seven millions three hundred thousand dollars, be, and the same hereby is yearly appropriated to the said fund; and the said sums are hereby declared ​to be vested in the commissioners of the sinking fund, in the same manner as the monies heretofore appropriated to the said fund, to be applied by the said commissioners to the payment of interest and charges, and to the reimbursement or redemption of the principal of the public debt, and shall be and continue appropriated until the whole of the present debt of the United States, and the loans which may be made for reimbursing or redeeming any parts or instalments of the principal of the said debt shall be reimbursed and redeemed:Balances of unexpended appropriation, how disposed of. Provided, that after the whole of the said debt, the old six per cent. stock, the deferred stock, the seventeen hundred and ninety-six six per cent. stock and three per cent. stock excepted, shall have been reimbursed or redeemed, any balance of the sums annually appropriated by this act, which may remain unexpended at the end of six months next succeeding the end of the calendar year to which such annual appropriation refers, shall be carried to the surplus fund, and cease to be vested by virtue of this act in the commissioners of the sinking fund, and the appropriation, so far as relates to such unexpended balance, shall cease and determine.
Appropriations, amount of, to be paid each and every year by the Secretary of the Treasury to the commissioners of the sinking fund.Sec. 2. And be it further enacted, That it shall be the duty of the Secretary of the Treasury annually, and in each year, to cause to be paid to the commissioners of the sinking fund the said sum of seven millions three hundred thousand dollars, in such payments, and at such times, in each year as the situation of the treasury will permit: Provided, that all such payments as may be necessary to enable the said commissioners to discharge, or reimburse, any demands against the United States, on account of the principal or interest of the debt, which shall be actually due, in conformity to the engagements of the said stats, shall be made at such time and times, in each year as will enable the said commissioners faithfully and punctually to comply with such engagement.
Reimbursement of the capital of the present debt of the United States, including future loans that may be made, and payments on account of interest, &c. to be under the direction of the commissioners of the sinking fund. Specific appropriations to be applied under the direction of the commissioners.Sec. 3. And be it further enacted, That all reimbursements of the capital, or principal of the present debt of the United States, including future loans which may be made for reimbursing or redeeming any instalments, or parts of the same, and all payments on account of the interest and charges accruing upon the said debt shall be made under the superintendence of the commissioners of the sinking fund. And it shall be the duty of the said commissioners to cause to be applied and paid out of the said fund, yearly and every year, at the treasury of the United States, the several and respective sums following, to wit: first, such sum and sums as by virtue of any act or acts, they have heretofore been directed to apply and pay: secondly, such sum and sums as may be annually wanted to discharge the annual interest and charges accruing on any other part of the present debt of the United States, including the interest and charges which may accrue on future loans which may be made for reimbursing or redeeming any instalments, or parts of the principal of the said debt: thirdly, such sum and sums as may annually be required to discharge any instalment or part of the principal of the present debt of the United States, and of any future loans which may be made for reimbursing, or discharging the same, which shall be actually due and demandable, and which shall not by virtue of this, or any other act, be renewed or prolonged, or reimbursed, out of the proceeds of a new loan: and also it shall be the duty of the said commissioners to cause to be applied the surplus of such fund as may at any time exist, after satisfying the purposes aforesaid, towards the further and final redemption, by payment, or purchase, of the present debt of the United States, including loans for the reimbursement thereof, temporary loans heretofore obtained from the Bank of the United States, and those demands against the United States, under any treaty, or convention, with a foreign power, for the payment of which the faith of the United States has been, or may hereafter be pledged by Congress: Provided, however, that the whole, or any part, of such demands, arising under a ​Demands under treaties, &c. may be satisfied out of other monies.treaty, or convention, with a foreign power, and of such temporary loans, may, at any time, be reimbursed, either out of the sinking fund, of, if the situation of the treasury will permit, out of any other monies which have been, or may hereafter be, appropriated to that purpose.
Commissioners authorized to borrow under the direction of the President for the purpose of obtaining a prolongation of payment of the Dutch debt.Sec. 4. And be it further enacted, That the commissioners of the sinking fund be, and they hereby are empowered, with the approbation of the President of the United States, to borrow on the credit of the United States, either in America, or abroad, by obtaining a prolongation of former loans, or otherwise, the sums requisite for the payment of the instalments or parts of principal of the Dutch debt, which become due in the years one thousand eight hundred and three, one thousand eight hundred and four, one thousand eight hundred and five, and one thousand eight hundred and six: and that a sum equivalent to that to be thus borrowed, or reloaned, shall be laid out by the commissioners of the sinking fund, in the purchase or redemption of such parts of the present debt of the United States, and other demands against them, as the commissioners of the sinking fund may lawfully pay, agreeably to the provisions herein before made, and as the said commissioners shall in their judgment deem most expedient, so as to effect the payment annually of seven million three hundred thousand dollars, towards the final discharge of the whole debt, agreeably to such provision:The loans to be made to be reimbursable within six years. Rate of interest, and of charges. Power given not to affect the powers given by former acts. Provided, That the United States shall have a right to reimburse any loan thus made within six years after the date of the same, and that the rate of interest thereupon shall not exceed five per centum per annum, nor the charges thereupon the rate of five per centum on the capital borrowed: And provided always, that the power herein given shall not be construed to repeal, diminish, or affect the power given to the said commissioners, by the tenth section of the act intituled “An act making further provision for the support of public credit, and for the redemption of the public debt,” to borrow certain sums for the discharge of the instalments of the capital, or principal, of the public debt, in the manner, and on the same terms prescribed by the said section; nor the power given to them by an act intituled “An act making provision for the payment of certain debts of the United States,” to borrow certain sums and to sell the shares of the Bank of the United States, belonging to the United States, in the manner, on the terms, and for the purposes authorized by the said act;Not to revive any act for the loan of money, which has expired. and provided, further, that nothing herein contained shall be construed to revive any act or part of an act, authorizing the loan of money, and which hath heretofore expired.
Commissioners authorized to employ the bank of the U. States as an agent, for the payment of the Dutch debt, &c.Sec. 5. And be it further enacted, That for the purpose of more effectually securing the reimbursement of the Dutch debt, the commissioners of the sinking fund may, and they hereby are empowered, with the approbation of the President of the United States, to contract, either with the Bank of the United States, or with any other public institution, or with individuals, for the payment, in Holland, of the whole, or any part, of the principal of the said Dutch debt, and of the interest and charges accruing on the same, as the said demand become due, on such terms as the said commissioners shall think most advantageous to the United States; or to employ either the said bank, or any other public institution, or any individual or individuals, as agent or agents, for the purpose of purchasing bills of exchange, or any other kind of remittances, for the purpose of discharging the interest and principal of said debt, and to allow to suchCompensation to agent. agent or agents a compensation not exceeding one fourth of one per cent. on the remittances thus purchased or procured by them under the direction of the said commissioners, and as much of the duties on tonnage and merchandise as may be necessary for that purpose is hereby appropriated towards paying the extra allowance or commission resulting from such transaction, or transactions, and also to pay any deficiency arising from any loss incurred upon any remittance ​purchased or procured under the direction of the said commissioners, for the purpose of discharging the principal and interest of the said debt.
Authorized to employ an agent in Europe relative to the said business. His compensation.Sec. 6. And be it further enacted, That the commissioners of the sinking fund be, and they hereby are empowered, with the approbation of the President of the United States, to employ, if they shall deem it necessary, an agent in Europe for the purpose of transacting any business relative to the discharge of the Dutch debt, and to the loans authorized by this, or any other act, for the purpose of discharging the same, and also to allow him a compensation not exceeding three thousand dollars a year, to be paid out of any monies in the treasury not otherwise appropriated.
Nothing in this act to affect the provisions of former acts pledging the faith of the U. States.Sec. 7. And be it further enacted, That nothing in this act contained shall be construed to repeal, alter, or affect any of the provisions of any former act pledging the faith of the United States to the payment of the interest, or principal, of the public debt; and that all such payments shall continue to be made at the time heretofore prescribed by law; and the surplus only of the appropriations made by this act beyond the sums payable by virtue of the provisions of any former act, shall be applicable to the reimbursement, redemption, or purchase of the public debt in the manner provided by this act.
Restrictions and regulations established by former acts, shall apply to the commissioners under this. Account of the sales of stocks, &c. to be laid before Congress. 1795, ch. 45.Sec. 8. And be it further enacted, That all the restrictions and regulations heretofore established by law, for regulating the execution of the duties enjoined upon the commissioners of the sinking fund, shall apply to and be in as full force for the execution of the analogous duties enjoined by this act, as if they were herein particularly repeated and re-enacted. Provided, however, that the particular annual account of all sales of stock, of loans, and of payments, by them made, shall, hereafter, be laid before Congress on the first week of February, in each year; and so much of any former act as directed such account to be laid before Congress within fourteen days after their meeting, is hereby repealed.
Approved, April 29, 1802.