National gazette. — Philadelphia [Pa.], 1793-03-20 00:00:00, page 1

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Numb. 41 of Vol. ll.]
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P. I R E j\~ EA U : PubUJhed Wednesdays i:id Saturdays, at Thref. Do llars -oer annum.
- French nation. From this and other ii
t stances, it appears, that however high the
Secretary's regard for public credit may
he, there are other coniiderations which
have obtained a higher degree of his at
- tenTion, than a'o die.ice to the laws. A
gentleman from Virginia has so cleariy and
aaly explained thenatureofthatdifcretio; -
I ary 1 power with which the Secretary is vcf
ted, and so fully proved that there was no
. leceility to juftify a departure from tin
' appropriations made by law, that it is not
necefiary for me to explainfurther on that
'l head. However, I cannot help remarking.
that the discretionary powers were
a freely exercised—The drawing of bill,
began early, indeed—and were continued
to a recent period : The times of draw ini
fortunately corresponded with tlie necef
l.'ties of the bank, and the power of em
pioying agents was pretty freely, ufexi :
I'h j (air.e :» .ents were frequently both the
fellers and the pnrchafars of tiie bills.—
Perhap,this was neccifary : No douht it
I wai convenient : Probably it was Tafe ;
but \\ iio can fay, it will be always so ?
t I have not said so much to prove the
truth of the facts expressed in the refuluti
o;i; for, of this, there can be no d<;ubt .
iitis as clear a; the-fun fliiciug.in day-light,
i hut, in order to prove the propriety o
i this committee fxprtlEnz its difapprob.ti
: o.i of a condu't so uiijuflifiable.Tliat infor
i ni-toii waif withheld undulv is evident,
from the lateness of thi- discussion—that it
■ was obtained with diiaculty. is evident.
; from the numerous nppii :3tio.is we were
i obliged to make in order to obtain it.
Mr. MADISON next rose and ex
pelled himfelf nearly as follows :
' lie wiihe-d not, hj said, to w;:lle a mo
ment of the frtiall portion of time left, by
regretting its infilih-iciicy ffcr a full difcuf
lion of the fubje.-t before the committee.
, liut he i bought it due to truth, and to th..
fit ... : £sr? iKiihri.pt iftfrnt flfuiive<> |
colleague (Mr. Giles) in propofirtg the re
solutions, to remark that the lateness of
the day to which they had been poflponcd
did not juftify the ftr'n',hires which lir.d been
made on it. If the delay was not to be
co .lidered as lome blame at
iea.!i would fail elsewhere. The enquiries
in which the whole buiinefs originated,
had been moved by his colleague and pas
sed the House fouie v. cexs ago. The re
'ports in ailfwer xh these enquiries had not
tieen finally ma.'e and p.' ired a (ingle day
- before the prc'fent refulutkms were fub
m.tted to the house. He admitted that it
might have been impracticable to report
t:i„» information Called lor as early as was
denred by the house ; He v. a ,'i-nJible of
thtf anxi. ty that,would be natu - lly felt by
t i _r called tip • to j-rc-fent every
coiil.deration that might place his conduit
in ill ■ v,i >11 :'iv vurable point of view ; yet
with all t . 'fe ill iw. n- es it was impo(Ebk
| to deny t'-. it the r.-ports contained thing
which did not h-. io:ig to them, and t'here
fore ior.frncd tine which belong-< 1
to the period for difcuffiott: I'e would
mention our iuftanceon which there conid
lotpodvbly be a difference of cpipion, viz :
the vindication formerly undertaken by
the Secretary, oi'thr policy of b -.rrowrng
money abroad. Whether this policy w.-
right or wrong, the i?gifl-jtura had theiu
felves decided in favour of itand it mi:
the duty of the Secretary in complying
with the orders of the house, to inform
the houfe,how the law had been executed,
lot Why it had been made; to-exphiin hi.;
own conduct,not to juftify that ol the le
gislature.
It had been a Iked why the call for infor
mation had not been sooner made ? The
ailfwer was obvious and limple. 11 was
not sooner perceived by the house, that
there was such a nectffity for it. The
\\ lit of information was firft fuggefled
by the bill fir p ivin.g 2,000,000 of dollars
to the bank, altho-'200,000 only were im
mediately due, and for authorizing another
foreign loan to the amount of 2,000,000 :
From the dawn of light thrown by some
circ.imftanccs incident to the occalion, on 1
the darkness in w liich the House had re- 1
mained, proceeded those doubts and en- 1
quiries which had led to the information 1
now poirefl'cd. His colleague had great 1
merit in having brought about this deve- 1
lopement. He had rendered a service 1
highly valuable to the legillature, and nc <
less important and acceptable to the pub
lic. One good effect of the information t
had been, that it prevented the palfage of
the bill for borrowing 2,000.c00 of dollars t
as an anticip ted payment to the bank. <■
WEDNESDA Y, March 20, 1793.
The bill bad dropt from the hand of it
palion with the lirft light that broke ii
upon the house. What other nieafure
•voir d have been prevented or varied, if :
like knowledge ol our funds and finance
liarl been C •.r obtained, was matter o
fclious «*nl:den ttotj.
-■ :other tonfeqceiKe of the reports ta
I;. 'I together, was that the face of then
p fen ted to his colleague, an evidence o:
charges contained in the refolntions
v, he ther at foJLte a day it was belt tc
isave the fubjeit as exhibited by the varf
o:is document- in print, for the exanimate
o i and opinion of the public, or ro press ii
o i the cc!:::derat:on of the house, was ;
point which every member had aright tc
decide for himfeif. His colleague hac
viewed the politions stated in his inotiot;
as too important to be suspended*; and a:
fupportcd by Inch clear and authentic
proofs. that a small portion of time would
I'tiiiice for the subject. Under this impref
i.'oti, what was his right became ins duty ;
\! he had difcharped it by offering his re
iViittions to the House.
As the HojiXe had.refufed to commit the
: #o introductory resolutions which eltab
filed t.'ie'ruleol judgment to beapplied to
tile cafe, and the I alt alio, which declared
. : ie inference to be drawn, the talk of the
: amniiltee was limited to a liiuple enqui
ry into the facts Hated .They were to
wake out and report a fpecinl verdiit ot
caefe, and leave it to the House to pro-
I'ounce the proper judgment ariling from
them.
The refoiution immediately before the
committee in poi red '■ that the Secret.iry
"i tile rreaiiuy id violated .lie. law pas
: d on the 4th ot .iug'.lit 1790 making ap
, : opfte .lion? of ctn:utr,monies " by
ai'plving a certain portion of th?'principal
4.crow ed to the payment of intereff on
ha* principal;"—-jteondly, > ; bv drawing
X 't ttjt the fame monies into the United
' rates withont or iiie' }'hs
iiclent.
The questions here are questions of fact;
and whatever quality may be attached by
diiferent gentlemen to the several feds, it
would feein as if the facts tliemfelves are
too clearly supported by the reports of the
Secretary, and the documents attending
them,to be denied or controverted.
The law of August 4, j-00, authorised
the Prefidept to catife to be borrowed
12,000,000 of dollars to be applied to the
foreign dgbt of the United Stat cs. A sub
sequent law of August 12, 1790, authorised
mother loan oF2,coo,cgo of dollars, to be
applied to the domeitic debt of the United
States.
A power to make these loans was dele
gated on the 28th August 1-90, to the Se
cretary by a general commission in the ufu
il form, referring to the several aits above
mentioned ; but without any farther dif
.riminataon of the loans to be made. As
:he law however for applying loans to the
■'oreign objefl was prior ill date, the pre
emption would rather be that it was to
lave a priority of execution ; that the ilt
noncy borrowed was to belong to the ift
ibjeit provided for. It was nnnecefTary
lowever. ro dwell on this conlideration,
lecaufe the Preside.it had removed nil 11 1-
rtair.ty by the precise explanations and
iiitructions which accompanied ;he power
o the Secretary, and which ought in truth
o be deemed a part of the commission.
The inftruftion having been more than
nice i't ad to the committee, he would con
ent liiirif.lt with referring to it. [The
• a t referred to is in the following words ;
' I do hereby make known to you that in
he execution of the J aid trujt, you are to
ibferve and follow the orders and directi
>ns following, viz- Fxcept where other
vife especially directed by me, you (hall
•niploy in the negotiation of any loan or
oans which may be made in any foreign
ountry, Win. Short I'.fq. You ihall bor
ow or cr.ufe to be borrowed, on the best
ernis « Inch liiall be found practicable,
vithin the limitations prescribed by law,
sto time of repayment and rate of inter
ft, iuch fiiin or funis, as iliall be fufficient
odi charge,as well us instalments or parts
it the principal of the foreign debt, which
iow are due, or (hall become payable'to
he end of the year 1791,3s all interests
nd arrears of interest, which now are
r (bail become due, in refpe£t to the said
ebt. to the fame end of the year i;gn
Liid you Ihall apply or cause to be applied,
!i: monies which (hall be so borrowed with
II convenient dispatch, to the payment of
le said instalments, and parts of the prin
ijial and inteielt, and arrears of interest
of the (aid debt. You lhali not extend ti
amount of the loan which you flvall mak
or canfe to in' made, beyond the Turn whii
'hall he necessary for completing fuih pa;
meat, unless it can bq done upon tern
more advantageous to the Uniicyl Slat
than those upon which tli? refidtie of t!
1 .id debt lhali fland or bo. But if the fa
relidue. or any part of the fame can ,1
paid off hy new Juan.-;, upon terms of at
1 antagetythe United S..ires,ycu Ihail cat!
such further loans as may be requ'.lite to I
made, and tile proceeds thereof to be aj
plied accordingly. And for carrying im
e tie ft the obi-el', and purpose? afortfaid
I do hereby further empower yGu to mat
or cause to be made, \v tth whomsoever
may, concern, such . contrast or contrast
being of a nature relative thereto, as Ilia
be found needful and conducive to the ir
terelt of the United States.""] By-thja for
iUal ast ifliiecl along with the comrniliioti.t
the Secretary, the Prelident delignated th
object to which the loans to be made, wer
to be applied ; and by declaring the objei
to be that provided for by the ast of A tic
4, 1790 he expressly placed the loan, un
.ler the authority and purview of that a£l
so that the moment the. money ihouid b
borrowed, it was toftand leg illy approuri
ated to i:s fpccifted object ; as much -is i
another la\v, authoritmg another 'can, so
another purpose, had not exilUd.
This arrangement of the PreGdent wr.
the more proper', not only became provili
011 for the payment of the foreign deb
iiad been the primary obj.ft of the Legifia
ture, and the payir.e.irpt the French debt
the anxiou-. vviiu of' his cqnllitueiits : bu
jbecaufe payments to France were no long
er matter of option, but c. j.s-IcC and po
iitiveobligation on the United States. Ii
proof of this, he J'tatcd tn.it the deb: t.
France, calculated to the end of i~yi, ani
computing tbe iivre at j 4-10 to a dollat
amounted to 4,81,4,814 -iuilars j, wivil.lt!..
payments axtutiTiy iViatre, ctimfjuti- fnl
florin at 2 1-2 to a dollar, amiSi-.ntcd to r
more than 3,372,717 ; leaving a balance a
the end of 1791, —1,442,097 dollars. Ad
ding to this balance, the indalments du
for 179 a, ar, ounung to 638,888, there
were to be paid within that year i,cEo,i 8;
dollars. The entire payments, however
compoted of 656,500 dollars paid in I'uropt
and 726,000, put to the account of St. Do
miiigof a1th0 , 0n1y444,203. 83. were aftuai>\
paid) amounted to 1.382,500 dollars, ler.v
ing due at the end of 1792, a balance ol
698,485 dollars.
Here he adverted to and read a para
graph in the report of the Secretary', pagt
16, where in allulion to the measure o]
:lrawing bills in the latter part of 179;
:ie fays, " 1 felt myfelf the more at liberty
.0 do it, becatife it did not interfere witi
t complete fulfilment of the publicengage
ncnts in regard to the foreign debt. It
:ould be done consistent with a full rtini
nirfement of all arrears and instalment
which had accrued on account of that
iebt." Mr. M. cbferved that as he could
lot reconcile this paragraph with the cal
. illations which he had:t.i:ed,& which were
Irawnfromoificial documents, he mult re
gard it as an unqueftionabte error produ
ce! by some hally view ol the fubjcct.
Returning to the comniiffioo, Mr.
cpeated that all the money which that
imminent, defined and qualified by the
nflruftion annt«ed to it, authoriftd the
lecretary to burrow, was actually and
pecifically appropriated to the payment 1 f
he for> ign debt, and under circumftanci s
larticularly urgent, jn relation to a part
if it.
111 what manner had this trufl been car
ied into execution ? It was to be obit-r
---ed with regret, that on the pery dry. on
vhich the comn ifiiori and hiflruftion ifln
d from the Prelident, the Secretary com
nenced his arrangements for diverting
art of a loan, accepted and ratified Lv
irtue of liis comn iilion, to a purpose dil
erent from that fpecified and required by
is inllruclioii. 'J hat a fail: of (o extra
rdinary a complexion, migl't be ;<:ouiui
d on the 1110 ft unexceptionable proof, Mr.
d. said he fhonld take the liberty of fup
orting it by the authority of the Secretary
imfelf. Here he read from the Secretn
y's letter dated Augult 28, 1;90, to tie
.Hitch Houtes from whom the lo'an had
een accepted the following vi
' 1 fliould alio willi, for particilliir reafonp.
hat the bulpefs may be so regulat'd as to
ive it the form of two loans, one for tw u
[..Tee lad tags']
[Total No. 14.5.!