National gazette. — Philadelphia [Pa.], 1793-04-06 00:00:00, page 1

Numb. 46 of Vol. ll.] S A T U R 0 A Y, April 6, 1793.
Additional Report of the Secretary of the
TreaJ.ry. Relative to the Loans negoti
ated under the A:ts of the 4th and izth oj
A,.git ft, 1790-
f Continued from our laft.~\
THESE last bills were drawn, when thr
rapid rife or (lock commenced, anil
were fold upon a credit of three months
It was a natural conjecture, tftUt a rife f'
li.dden and violent couldnat b? of longdu
lation—and that a declension w«,uld wort
lv succeed, which would afford an oppor
t unity of purchaii ig with advantage ; and
render the intervention of puolic pnrchi
i'r■ uivantajjpoiis in more than onerefpect.
The event fully corresponded with the an
ticipation.
With regard to the bills drawn in April
lafl, it lias been dated that they were di
rected to be fold upon a credit of (ix
months; thatthuf. drawn in July, Augutl
ami October ,vercmade payable, o ie moi
ety i.i two, the other moiety i 1 four
months. Hence, with a moderate allow
ance for delay in the sales, the period con
templated by the arrangement for the com
mencement of receipts was the month of
October ; that for their consummation tht
month of February.
The inducements to the draw ing of thefc
bills have been (tated. The present exam
ination lus relation merely to the qneltioo,
whether the bank of the United States., by
premeditation of this department, or fnb
fequent omissions, had enjoy d any undue
advantage from the of the pro
ceeds of the bills at the end of the year
1792, the point of time to which this en
quiry has reference.
T'le itatemeiK which his been made as
to the time the morircs received to that pe
riod had remained in d.polit might alone
be relied upon as a futficient answer. It
delinquency can he attached to the 11011-
empiovment of one or two hundred thou
f mil dollars for 1 few weeks in the money
operations of a :> ition, it implies a minute
.n-jfs of responsibility, which could never
be encountered with prudence, aud never
■will be fulfilled in practice. The diffrac
tions of attention, incident to a great and
complicated scene of bulinefs would alone
<jilappoiiit the expectation.
But I lave 111 are than this to offer, upon
the present occasion The opportunity for
inverting the monies on hand during the
period in queltion favourable. This
was experienced by til- Treasurer in his en
deavors to invest the fund arising from the
interelt on the purchased debt. There
was 110 part but the deferred, which coulc
be had at all within the limits prescribed.
Several indications of an approaching fea
l'on, more advantageous for purchase, were
difcernable, and a better employment ol
the money than at the then prices prefent
editfelf to the option of the Legislature.
This mode of employing it so medin rnj
wind part of a general plan for the regu
3ar redemption of the public debt accord
irig to the right reserved to the govern
ment. The one per cent, which might bt
saved, was regarded as 0:1 c mean of con
stituting the proposed annuities.
Accoidinglv: Oi the }oth of Noveni
iier lad, pursuant to a reference of the 22c
of that month, and. connected with the
j.l an of redemption contemplated, I si b
initted to the House of Representative*
proportion for applying the monies in ;uef
lion, towards discharging the debt, whit
the government owes to the bank, and up
-on which an interelt of lixper cent- is pa)
able. This was manifeltly, at the time ol
»he proportion, tne molt profitable life
that couid be made of the fund. It ha
been already stated that it would produce
a saving, if extended to the whole two
millions, worth to the government an an
iiual sum of 20.000 dollars, equal to a ca
pital of 400,000 iloliars.
This proposition tended to accelerate
the employment of the monies 011 hand i:
a way the molt beneficial to the govern
inent ; and consequently to Ihorten the du
ration of the advantage to the banks ot
holding them, by way of elepolit. I fubmil
it to the candour of the f'oufe, whethci
it be not full evidence, that there was nc
difpolition, on my pa. t. to prolong to those
2 lit 11111 ions a benefit, at the expeuce of tlu
government.
The proposition itfelf has not yet re
leiied the decilion of theEoufe.
Another grot, I, upon which the fug
jeftion of niifmamigciiient and undue con
-1 ellion to the interests of the banks lias
been sounded—respect. the domefiic loan*
vhich have been obt ined. Those of them
vhichhavc been mack of the Bank ol the
By P. F R E.N £ A U: Publijked W Ejp t/esda ys and Saturdays, at Three Dollars per annum.
United States are reprefentecT a* unne
oelfUry, tending to afford an emolument to
that institution. for which the fc'yjted
">t. t.'S hid no equivalent advantage.
It will conduce to a correct judgment oi
this matter to re fume a point already touch
ed upon, arid to add here the turii, r iliuf
trations of it which have been pi'vmifed
to wit) that it on.wit to be a genti<ji prin
ciple to have confVautly in the toiiupand ot
tne treafnry, at its different plates ..'1 de
jolit, a Turn of about 500,000 dollars • a
principle, too, which mini be undcrflood
with reference to the be; innings of the
quarters of a year, when tile chief publu
payments are made and making.
file following observations will apph
generally to the balances, which appear ai
tne commencement of each quarter. Tilt
greatell part of t'le interefi lor the pre
ceding quarter will have been then deduc
ted. But a part is always in a different li
t nation.
The payment of" interefi upon a publu
d. bt, at thirteen different places, Han ope
ration as difficult and complicated, as it i:
new. In carrying it into execution, it i
ui necellity to lodge for some lime previ
ous to the expiration of eath quarter, ct
several of the loan-offices, drafts of thi
Treafurerfor the funis ellimated to be ne
eiirii y, at those offices, with bl.inrt» for ttic
direction, and with liberty to the respec
tive officers to dispose of them upon dif
ferent places, as a demand accrues. 1 hi;
irrangement has an eye to two purpon.s ;
:o avoid large previous accumulations at
points ; tofacilitate the placing
jf the requisite funis, where they are want
;d, without the transportation of specie.
I'he allowing of the drafts to be disposed
jf 011 several places gives larger scope to a
leinand for them and renders them more
>a!tjy saleable. But it is a confequwite oi
his. that a part of the drafts arroften not
>laced and brought into the accounts oi
he Treafiirer, 'till some time aftertheex
>iration of the qu.irier. The fund tot
hem of course appears on hand, 'till the
ranfaclionis completed.
Coiuiefted with the circumflance of pay
lg the interelt upon the public debt at dif
"ere'nt places is this further confeqnence.
The trail fers continually going 0.1 iron'
Dne office to ano her render it imp ffibie tt
enow at any moment, when provilion foi
.he payment of interelt is to be made,
■x hit sum is requisite at each place. Mi
niate riiuft fnpply the want ot knowledge,
md to avoid disappointment any where,
theefliinate must always be large, and ■
.orrefpondent sum placed in the power 01
the commiflioners. The circumftanc<
alone requires an extra fnm at the differ.
;nt places of payment, which ought not ti
De computed at less than 50,000 dollars.
j\ffiin—the fmns payable on account o:
the civil lift, at the end of each quarter
which amount to about fifty thousand do!
lars, exclusive of what relates to the tw c
Houses of Congress, are always in a courft
jf payment for some time within the Cue
-ceding quarter. The fund for them con
sequently appears in the monies on hand al
the beginning of such quarter.
Again : There are conltantly confider
-1 hie arrears of existing appropriations, foi
cvhich demands on the treasury are at eve
y moment pofEble—the times when the)
v ill be presented, and to what extent, ai
my time given, being in a great degree
0 itingent The arrears for the different
>bjects of the war department, can feldon
be ettimated at lefsthan 150,000 dollars.
It is presumed to be a clear principle,
that the treasury ought to be always rea
dy to face fucli arrears, as may be clainiet
ar every inffant, or within any short peri
od. An hour's difirefs or embarrassment
to make good a public payment, alread\
ilue, would be baneful to public credit, li
lias been a uniform maxim of the prefeni
aduiiniOration of the treasury never to rift
uch difirefs or embarraflinent.
Independently therefore of the weight;
onfideration of being prepared (efpeciall)
■vith a war 011 hand liable every moment tt
greater extension) forfeiture casualties.the
mere fatisfa£tion of arrears, ought to cauft
he conflant reservation of a sum, thai
would be moderately dated at half the fun
which it has been alledged ought alw ays
to be in the treasury. It is to be observed
that it does not often happen, that the cur
rent receipts to be expected in ai:v imme
diately fucteeding quarter, are likely to
exceed the probable expenditure of thr
ijiiarter. The reverse is as often the cafe.
1 'cute thegre.iter neccffity oi maintaining
a coafiant ftrplus.
There are (till other confn'erations of
weight, in a just eftiniate of the point in
question.
The fnm stated, as neceflary to he al
ways in the command of the trealury, i
never in fact at the feat of the government,
where far the greatest part of the public
ilifburfements are to be made. 1 he deposi
tories ot it are the several banks tron
Charleflon to Bolton. The whole fun.
therefore can never be brought into imme
diate action, for answering the claims upon
the treasury. No part can be proper!)
viewed as in this situation, beyond New-
York on the one fide and Baltimore on the
other. Whatever part is more remote
than those points, ought not to be regarded
.is capable of being commanded in less time
upon an average, than sixty days, makii.f
allowance tor the nfual delays in the sale
of bills, & the usual terms of credit, which
, xperiente has fliewn to be convenient.
In eftimacing die effective fnm at any
time on hand, in the bank ot the United
States, it is neceflary to be known, that a
Practice for the Amplification of the 1 ret
furer's bank account, begun with the bank
"f North America, ha? been continued with
the bank of tile United States, ot this na
rure—The bills drawn by the Treasurer
upon d rtant places, and deposited with
the bank for sale, are immediately pafled
to his credit as cash; though they are allow
ed to be fold at credits from thirty to iix
ty days ; and it is understood, that the pro
.eeds are not demandable of the bank, 'till
;hey are collected. He<ue the apparent
sum ill the bank of the United States is al
ways greater than the real; Ibinetimes to
x large amount.
The deductions to be made for this cir
cumstance are Ihewn in the Treasurer':
in If monthly llatement of balances No. V ;
beginning with the tit It ot June 1792, and
ruling wills the firft of J.inuaiv 1-9;.
The period begun with is that, when tlu
irfl inflalment of the loan from the bank
nas payable ; and has been feleftcd foi
this reason.
The propriety of tliefe deductions ap
Dears to have been objected to, by antic;
jation, on two grounds—one, that the bill'
iopofited anfwtr all the purpefes of end;
md ought to be credited as fuel), on the re
:eipt of them—the other, that '-there is a
-egular and conitant influx <*f monies into
:lie bank, by the operation of these bills—
md that it is not very material whether r
3111 lodged in the bank to day fhculd be
jaid to day, provided something like the
ame sum fhoulcl be paid in conference o.'
1 bill lodged in the bank one or two month;
igo, and the bill of to day (houid be paic
>ne or two months hence.
Neilhci the one nor the other of theft
two positions is correct.
In no sense are the notes, of the purchas
er» of the bills, which-are taken, payable ir
30,45 ar: d (o days the fame thing to a bank
as ctijli. 'Tis evident it could not pay it:
own bill with thole notes. In this prima
ry particular therefore the compai ifoti fail:
—neither could it make d.(counts upon the
balls of those notes as cajh. Becanfe ever;
discount gives a right to a borrow er to cal
and receive in coin, it he pleases, the. a
mount of the sum discounted. Notes are
noi coin, nor do they confer an equal pow
er to pay. 11 is tree that a bank will ii
its discounts some calculation on ex
pected receipts—but it can never confidei
them as equivalent to calh in hand—nor
operate upon them in any degree to the
fame extent as upon equal funis in cash.
If notes payable at future periods were c
quivalent to cash, then every discount made
by a bank would confer a faculty to make
another for an equal sum ; for there is al
ways a note depolited for the sum discount
ed—and the power of d fcounting might b>
the mtve txvrcift of it become i.ifinite. Ar
hypothelis of this kind will never hearted
upon by any prudent directors of a bdnk,
and could net be long aOed upon, without
ruin to theinftitution. It is to be observ
ed that the great profitable bulinefs of 2
bank consists in difcounthig.
There is but one light in which the po-
Gtition under examination is in any degree
founded. It is this, that were it not sOl
the Jnftrunientality of the bill-;, the specie
of the bank would be fonietin.es remitter
for purposes which are answered by the
bills. As often a;; this happens, they are a
fubflitute to the bank for calh, becanfe the)
prevent equivalent funis from being earn
ed away.
But this oily sometimes happens. In
llimerous instances the enttrprifes to
which the bills are fubfc.-vlent would uot
be undertaken at all, were it not for the
power ot' ant'"i|>'tion, which the credit's
upon them afford. In many other inilaii
ces the bills of the bank itfelf would b;
remitted itiftead ot specie ; in others p:i
vate bills vvou.d be lubftitnted; in others
mutual credits between the merchants, to
be liquidated in the course of mutual dca.-
ings, would supply the call.
[ To be continued.']
~lVe are requefled to injert the following
Addrefs,fro m Mejfrs. Loudom' Zlcvj- \ or!;
Diary, of Mar en 27 th~\
Meflrs. Printers,
LAST spring, soon after the cojivtilfions
in the speculating world, WILLIAM
DUF.R, had the following hand-bill pub
i(lied and difperled in this town :
•' To the Holders of tingngemerits uuder
the signature of the Si.bjcriber.
" New-York Prison, March 24, 1792.
" It is with regret that the fubferiber
inds himlelf disappointed in bringing for
ward to his creditors. 011 this day, such fpe
ific propolitions for the ultimate redemp
tion of his debts, as he had once reason to
;xpe&.
•■At a meeting ofa number of gentlemen
jail of whom (tiled tbenifelves his friend?-,
iwl amonglt whom some were reaiiv (<>)
t was thought advifeable to pollpone the
wblication of the plan he had in view, fill
t was supported by them in such a ma.nwr
is they conceived moll likely to infurc fuc
:efs.
" But (the can Per of such change it is
lot necessary to detail) the.malice of op. ,1
Miemies, end the inlidioiis ii.lnitiations of
jretended friends, have chilled the fir it
;low of benevolence : andlelt'o h* !> 1 i>-
briber the grtardianfhip ot his own tame,
1 id that of the interelt of all his creditors.
\facred trull! which the Itibfcriber piedg.-
;s hivnfelf to discharge with fidelity and
lonor.
" In this view it is proposed by him as
ollows :
'• ill. That he will within nine months,
omputed from the prefentd ate, (or so n
?r if pollible) maKe a fettlemcnt of all hu
oncerns, point out the sources and amouin
>f his lofles, and constitute' an adequate
und for the ultimate redemption of the
>rincipal and legal interefl i t his debts.
'• 2d. That this fund ihalt he so fornu d
is not to place it within his own reach, to
livert it irom the objects of its dei'hia
:ion.
" 2d. That he will make prompt arranye
nents for the re-imburfement in the si 1 it
nflance, of all advances made by ditlrcl
ed widows, or orphans, mechanics a::u
radefmen, to whom any coniiderable tie
ay would operate as ruin.
" 4th. That til! the above objects are t f
fefted the w alls of a prison ll.all fecme
;hat confidelice v hich he feels might have
aeen juflly placed in his honor.
" sth. That trtilling to time, and a
conscience void of intended injtnyfor ji f
tification, he at present leaves to h.s tnt -
miesthe cruel triumph of'fportingover Irs
afflictions ; and to a generous people v. ho
may dill be mindful of his public and pri
vate services, the proteciiou of a i.ru.i.us
wife and innocent family.
"Win. DUTIi"
Twelvemonths have e'apf d (ince tie
publication of this Address, a d the crec! t
ors of Mr. Otter appear as diltant as t».r
from the settlements p; 0111 A d.
The gimp nfbenev <let,ce so cilfphaticallv
mentioned, seems to be fncceede<l by t ie
chill apathy of a hardened impol'or. he
whole was nothing more f. 0111 the beg .li
ning than an expansion of that diabolical
yltem of fraud and villainy, which ta s
arch-impostor—this in r amotis swindler—
this ronber and mifcreaiu, bad coiiceiti dto
fleece the innocent and unfufpectinj;. ot the
hoaeft gains, and hard earnedpittai.cc tiny
happened to pofl'efs.
Nine months w ere the extent propoful
by himfelf-—at that time it v as thought 1111-
neccifarily long; but not knowing la-*"
far his accounts were etnbarraiic <? aid
perplexed, by the carelefiiiefs and precip.-
tation which marked his own proc'i uln ,
as w ell as those of It is co-adju 1 01'— the r.
ceffity of patience was aiquitfctd in, aud
Mr. Dut r was unmolelled
That the whole w as an ilhtfive dr< epti
oii- proportion in the firrt inft iiuf,
from the refult—for. if lionc.i; and ho
nor ...,d .0. ii.ccl - p.t.t i llie >.w.ii:itt.iiit
[Total No. i 50.]