National gazette. — Philadelphia [Pa.], 1793-04-13 00:00:00, page 1

Nums. 48 of Vol. ll.] SATURDAY, April 13, 1793-
Additional Report of the Secretary of the
Trcajury, relative to the Loans negotia
ted under the Acts of the tfh and 12th of
August, 1790.
[Continued from our lafl, and concluded.]
tT may be obje£led, that the rule laid
•* down has been on several occasions ex
ceeded. How this has happened at cer
tain periods has been explained. But there
is a view of the fubjefl which will throw
further light upon it.
The sums which appear on hand at the
end of any quarter are always larger on a
retrofpeHive than on a previous view. This
proceeds from the following cause.
The judgment to be formed beforehand
of the funis which will be within
any future period, mud of ne< e'iity be re
gulated by the returns in pofleflion of the
treasury, at the time the examination if
made. As these come forward with nio c
or less punctuality, that judgement will b?
more or less accurate ; !>w tlv- :;|>p .1'
ance on the returns \vill always be fliort o!
the fa£t ; because a certain number of re
turns, at any period of examination, will
neceflarily be deficient. What does not
appear must of course be eflentially ex
cluded from the calculation ot the receipt;
to be expefled within any near p.nod.
Because the extent of the funis which ma\
liave accrued, beyond those (hewn by the
returns in hand is unknown, and it is lliil
more uncertain in what months the pay
ments of them mayfall—and the combi
nations of the treasury, asto the means ol
fulfilling the demands upon it, ought to
proceed as little as poflible upon conjec
tures and uncertainties.
Monthly abdrafts of the bonds taken at
each port, are the documents which serve
to inform the treasury of the progress ol
the receipts upon the duties of imports.
From these a general abltraft is made up
once a inon 1 h at the treasury, for the in
formation of the head of the department,
(hewing the amount payable ui each month.
But very conliderable differences appear
from one month to another. The State
ment C, will serve as an illustration.
It contains a comparison of the funis
shewn by two successive abdraits, one ol
the 7th of November, the other of the 7tl;
of December lad, for .1 term of ten
months, distributed into monthly ftibdivi
fions. The aggregate difference upon the
whole term between the two abdratls is
495,308 dollars and 73 cents: upon twe
months, beginning with November ant
ending with December, it is 151,789 dol
lars and 40 cents ; upon a quarter begin
ning with January, and ending with March
it is 174,471 dollars and 66 cents; upon :
fubfeqnent quarter it is 81,055 dollars anc
81 cents ; upon a dill subsequent quartei
it is 87,991 dollars and 86 cents.
Hence it is evident, that an arrangement
founded upon the abstract of the o.
November, wouid fuppefe a receipt durinj
any part of the time embraced by it, eve*
the mill proximate, conliderably less thai
would appear by the abdratt only oik
month later : and it mud always happen
from thistircumftance, that the actual re l
ceipts, while ptintluality is preserved, wil
exceed the anticipations of them, and thai
greater balances will be found to cxift a
any piven period than could have been be
forehand fafely calculated or aaed upon.
This circumstance, duly confide red, wil
be a further and a powerful judication o]
the condnot pursued generally, in relatior
to the monies from time to time kept 01
hand, and particularly with regard u
the loans of the bank, low as the (late ol
the treasury appears to hpve been 011 a re
trofpe&ive view, when the monies upor
those loans were called for, the prolpect.
at each time, mud have prefeuted the ap
pearance of a less competent supply, ora
greater deficiency, than was afterward:
realized. .
I am not sure but that I owe an apology
to the House for taking up so much of its
time in obviating the imputation of paiti
ality or favoritifm, towards the banks—
The afpe£t under which I view it, admo
nishes me that I may have annexed to it
greater importance than was intended tc
be given to it by its authors.
That adifpofition friendly to the accom
modation of those institutions, as far a:
• hey might be confident with official duty &
the public interest, has charafleriCed the
conduct ot the department, w ill not be de-
No man placed in the office of Secreta
ry flf the Treasury, whatever theoretic
doubts he may havebrought into it, would
be a single month without furrenrtering
By P. F REN E AU: Publijhed Wednesdays ana Saturdays , at Three Dollars per annum.
those doubts to a full conviction, that banks
are efl'ential to the pecuniary ope rations oi
the government.
No man, having a practical knowledge
of the probable resources ot the country,
in the article of fpecic (which he would
with caution rate beyond the actual reve
nues of the government) would rely upon
the annual collection of four millions and
a half of dollars, without the instrumen
tality of institutions, that give a continual
impulse to circulation, and prevent the
llagnation, to be otherwise expected from
locking up from time to time large funis
(or periodical difburfemcnts ; to lay no
thing of the accommodations, which la
diitate to the merchant the payment of the
Loniiderable demands made upon him by
the treasury.
No man, practically arqua nted with the
pecuniary ability ot intlividuals, in thi
conntrv, would count upon finding th.
means of tbole anticipations of the cur
rent revenue for the current fiprvice, which
have been and will be necessary, from any
jther l'ource, than that ol the banks.
No prudent administrator of the finan
ces of the country, therefore, hut would
Yield to the difpofuion, which has been ac
knowledged, as alike eficiitial to the nuei -
ell of she government and to the <atiriac -
:ory discharge of his trust : a tlifpoiition
which would naturally lead to goodotf.ces,
within the proper and jultifiable bounds.
After the explanation which has been
offered, to manifelt the neceflity and pro
priety of the loans made of the bank, it
:aii scarcely be requisite to enter into a re
futation of theprocefs, by which it hat.
been endeavoured to eltablilh, that the
government pays seventeen per cent, upon
;hofe loans—The Hate of the treasury ren
dered it expedient to borrow the fufljs
which were borrowed ; they Have been
inly received,,and the rate of intereii lii
aulated upon tliein is 5 per cent. T he gov
rrnment then pays upon them 5 P cr tcnt
md no more. _ _ '
The hillory which was given in my last
etter of the course and Situation of the
"oreign fund, proves that the supposition,
'rom which the inference, of paying fe
. enteen pcr cent, upon the domellic loan,
las been drawn, is erroneous.—The ba
lances 011 hand at the refpeftive periods in
(tiellion, are the residues of the monies
which had been received from every
fource —including the loans foreign and
domcltic.
But if the supposition, which appears to
have been made, had been true—it was
[till impolfible that seventeen per cent,
rould have been paid. By 110 construction
can the rate be extended beyond ten. —
The mean intereftof the money borrow
ed abroad including charges is j per cent.
—the interest stipulated to be paid on the
loan from the bark is dfo five—the Allll el
the two is ten. —It is immaterial for what
purpose the foreign fund was obtained,
whether to pay to France or to purchase
the debt—the worlt confequenee that can
rcfult is double not treble interest.—The
interest payable to France is payable lor
monies borrowed and /pent during llie war.
It can never be truly laid that, that inter
est is now payable 011 any cxiltiug fund,
whether borrowed in Holland or borrow
ed in the United States, or borrow ed rlicre
ind re-borrowed here—ltcarinever fervc
:o make an addition to the enft or charges
L>f any fuchfund. '1 is payable upon out-,
long imce procured and hjed.
But it is not obvious how the suppositi
on came to be entertained, that all the mo
llies drawn here from theforeign fund'had
been borrowed forthepayment of the debt
to France.—The prelumption would feeni
to have been more natural, that they hud
been principally, if not wholly introduc
ed with a view to purcliafes of the debt,
and consequently had a more special refei -
ence to the ast authorizing a loan lor that
purpose. And the fait is, that this \Va:
the deflination of far the greatest propor
tion of the funis drawn for—lt has been
Hated, that a part had an eye to the l'up
plies to St. Domingo, and that anothei
part was introduced with a view to the
payment of the foremen officers.
The additional observations to which 1
fnall requcft the attention of the HOIIO
will apply to the course aud state of the
linking fund, concerning which, I tranf
initted with my last communication, three
llatements numbered I, 11, and 111. t
To give a more colleftcd view of thi 1 .
part of thefubjeft, it may be of life to in
clude here a recapitulation of some ideas,
which have been itated in other places.
1% is the coitrfe and prafticc of this de
partment for all public monies, tronrwhat
cver source proceeding, to pass into the
treasury, and there torn) a common mal* ;
I'ubjeil, under tire responsibility ol the of
ficers of the department, to the dispositi
ons whiuh have b£en prefcribtd by law:
The surplus at the end of the year 1791
appropriated to the finking fund ant;
amounting tq 1,374,656 dollars and 4c
cents, vv ent as it \» as received into ti.£
treasury.
All the proceeds of the bills drawn tip
i;j the foreign fin d, prior to April, 179-,
.•xcept the luiuof 177,998 delit:r< ant,! c
. cuts,' left in depohl with the ba::I: ol
North-America, tor reufons which have
>eeii explained,.palled from time to time
Dto-the freafuiy- 1 hew hole amount oi
he fun.s paid 111 is 907,294 dollars and 23
J he proceeds of the bills drawn for ir
fuMequent to April, i 7 9«, have not
/if palitd into the Treafui'y, for re»(V»ns
av-»v !i c betn lircuite i.Uigncd. It
ailjflfiiiave-betU dune bcic.re this time a?
Arab the receipts had £Oiie, but c - r '' ,c
iref-iit inquiry, whith temporarily fuf
>ended it 1 thought it belt to make no
4j; ration in tlie Hate of things, as they
ioovl when i»- began, at lealt, 'till all tile
ifformation desired had been p,iv*u. Mea
tires w ill now be taken for afettlement ol
lie accounts aiitl l,ir a transfer of the pro
ved s. 1 lie whole ai)!ouiit of those bills
|iaid ajid Unpaid, including an eftiiiiated
am of intcrell, will be, as heietolore ila
ed, 1,220,476 dollars and 10 cents.
'yhe whole amount of the bills drawn is
11305,-60 dollars and 13 cents.
Out of the linking fund composed of the
'ut plu.s tif the revenue, to the end ol
ind the proceeds of the foreign bills, there
.♦ere iffuei from the J rcafury, and ex
pended in purchases to the enil of 1792;
1J7,7"° dollars and 65 ccnts.
for teafoirs which have been Cated, it
■vas finally deemed advifeable to piacc
hofc purchases wholly to the account ol
he surplus of 1 790.
Consequently there remained on the ill
if January, of the present year 416,885
lollars and 75 ccnts, of the above menu
>ned surplus unapplied to purchases—ami
he whole of the foreign fund, except the
um of 726,000 dollars paid and rcfervec
:o be paid, for the life of the colony of St.
Domingo, and the fnm of 191,316 dol
lars and 90 cents paid, and reserved to bt
laid to the foreign officers, became fre*
or future application. 'J he balance o:
he proceeds ot the bills alter dedu£Hnj
for those reservations, is 1,388,452 dollar:
and 22 cents.
Since the ift of January, 1793. then
have been ifi'ued 011 account ot the fore.gr
fund, for purchases, 284,901 dollars and »c
cents.
1 he practice has uniformly been not tt
separate any of the momes belonging t<
the linking nind, from the common mass o:
the monies in the 1 reafury, but in propor
tion to the occalions ol inverting them ii
purchases.
Ileiice the sum of 957,77° dollars and 6 <
cents, ifliitd previous to tiie present year
and 1 he sum of 284-901 dollarsantlß9 cents
lined during the present year, making to
1.242,672 dollars and 54 cents, aic
all the monies, which have been ever fepa
t-ated Irom the common mass of the trea
sury foi ihe pin pole of the linking tnnd .
the w hole of which, except 49, aSs dollar!
.uid 74 cents, have been <»c,Ually expendec
in purchases. , _ . .
The unapplied sum remains depohted 11
the bank ot the United States, excepts
lii,all iallance of 61 dollars and 76 cents,
in thi hands of William Heth,
From the above rule, the port of the
linldr,;- fund ariling from i.itereft oil tlu
debt rxlim nifi.ed by purchases or other
wile, is to'be excepted. The praaice hi-
J,two, has been to m-.lude this imertll ir
tliegeneral dividend Of- each quarter, an<
the w arrant ifliied to the Galhier of tht
l ank for paying it. The llatenient >,o.
111, accompanying my lali letter, (hews thf
application of this lund hitherto.
The law d:re£ts that this fund dial! be in
verted within 30 days after each quai ter.
This provision began to take effect 011 tht
lit of July lall.
But the ir.veftments were notmade With
in the refpeftive times prescribed. This
proceeded partly frouj) the state of the
market, and partly from the regulations
adopted by the fiommillioners, who were,
the Secretary of State, the Attorney Gen
eral, and the Secretary of the Treasury.
Their regulations applying to the two
firft quarters, limited the prices to certain
rates and prefcr.bed the mode of sealed
proposals. The Treasurer was appointed
agent for the commifliencrs.
The proposals, with rc-garcJ to the firft
quarter were receivable 'till the 28th of
July inchifively—none were offered, as the
i reafurtr reported td ine, and nothing was
done.
The experiment of sealed proposals vvai
again tried the second quarter, with fame
what more, though fliiluith but little
luccefc —T he relttittion to this mode of
proceeding was refunded, on the last day
of the thirty, allowed for purchafsig, and
fomr furtherpurchafes were made, but the
whole sum inverted was only 25,969 dol
lars and 56 cents.
The refidr.e of this fund except some
final!ftlfnt noted at foot of flat-ement No.
14 w as inverted in Januury part.
The unapplied part of the fnrplus of
1790, having been expended in aid ol the
recfijis of 1:91, according ta the prc.vi
ion which waiii;a(fe for that pufpofe, vi'l
remain flifprnded until the future receipts
Ihall so far exceed the current dijii.r/e
---v.ents as to produce a fnrplus for replace
"g't-
In computing the amount of the tnap
>lied foreign fund it is neceflary to take in J
:o the account, the payments made from ic
luring the years 1791 and r792, on account"
>f the interelt of the foreign debt.
Provision having been made for paying
his interelt out of the doniellic revenue*
—the funis whicji have been paixl on that
iccount from the foreign fund, are to be
:oniidercd in the fame light, as if they had
>een transferred here by drafts.
Ihe amount paid at An.fterdam is
,633,189 guilders and 2 stivers, eqnal at
;6 4-11 ninetieths per guiltier, to 659,874
lollarsand 34 cents.
There will be additions to be-made,
•\hich are not at present afecrtained.
Adding this sum to the proceeds of the
>ills and deducting the funis paid and to be
>aid for St. Domingo, and the foreign of
icers and these applied topurchafes during
In present year—there will remain a sum
:f I, (3,424 dollars and C 8 cents, fubjtft
o a future application.
Of this fiim 1,715,098 dollars and ti
:ents, will be properly applicable to the
uirchafe of the debt. I>wt circumstances
nay render it eligible to appropriates part
>f it towards the difiharge ol the foreign
lebt.
From the plan, which has been pursued,
t is also liable to this application.
I have the honor to annex to the ftate
nents heretofore tranfmiftcd those in the
>rinted chednles marked A, B and C.
A, exhibits the relative fiats of revenue &
appropriations co'theeud of 1752 E, the
e) alive slate of appropriations and expen
lit-irts to the fame period — (hewing the
jalance unfatislicd of each head of appro
priation. C, applies these (iatemenis totn
explanation of the demands or charges
,ipon the excess of income, beyond the dif
>urfeinents to the end of I:9a.
In addition to these are two ftatemer.ts
narked D E.—D, (hew irg \\ hat pi 0-
jortiuns of ilie balances iinfalislkd of the
leveral appropriations are likely to be real
expenditures, and w hat part are net lik'e
ly tobefo—ln this however in feverai in
(iances probability imift guide, the natine
as the thing not admitting of" certainty.
E. fliew ingthe calh 011 hand upon the firft
of January lart, aiul likely to be received
from that day to the lit of April next, and
the funis paidand payable during that pe
riod.
The result, founded npon fact'-, contra
dicts very cflentially that fiatemeiit, v hiclr 1
aims at (hewing the ability of the TrcaftiP''
ry, befidcs defraying the current expeuu
of the quarter, to pay off two tnil'ionJf'trcM
the bank ; still leaving a balance in f-.UWr'
of the Treafnry of 664,293 dollars afld-isVl
•Jl!) 118
cents. ,
It (hews that sfter fatisfying thff' -Hi* 1
inands for which (he trtafiiry is fcotW<t''tb l
be prepared, including a payment t't> thii.'
baukof only one ter.th part of the2,oo6'ilfefc£
o{ which the fiatemeiit alluded to
fes the complete payment —there v.'6i,U'
remain a balance in la\curof the (reafuty
o. 1 ' no more thai- -Jcda; - :. '
It could ar.fwerno vaiuaole purpose to
delay the Hoiife with a particular exam ill
ation of the various mifapprohtnliOiis
which have led to a result, to d JiVreut
from the trite one. It <viii bf lUfScient as
an example, to slate a (ingle i-nUance 11 is
aduuied as au item in the calcula'.-oa, that
[Total No. 152.]