Suspension of Payment of certain Bills. On the day of, there remained of the Louisiana fund, the sum of 196.658.43 francs. Appropriations had been made of a part of this sum, by the functionaries of both Governments, conjointly, which were as follows, viz: my disposition a moiety of the sum origina ly and wrongfully appropri ated to Eric Gladd, it was distinctly understood, that this moiety should be applied to the extinction of claims then pending against the French Government, and, of Francs. course, could only apply to those above-mentioned. The quantum of allowance to each, was the 2,768.32 11.626.39 only thing submitted, as I conceived, to my discretion; a circumstance which, by no means, takes these cases out of the ordinary rules of pro 3,132.01 900.52 1,983.15 ceeding, as, in many others, my opinions were equally decisive, and, indeed, were necessarily so, since the American commission' determined nothing with regard to quantum. 162,248.04 This last appropriation was rejected by the American commission, and the objections against it being sustained by me, the French Government was brought, after much discussion, to reduce it to one half of the sum originally allowed. This claim belonged (as I believed) to the French commercial house at Nantz, of Dobree and Sweige hauser; Gladd was but the captain, bringing the supplies on which it was founded, and never did | appear, personally, as the claimant. The necessary effect of this reduction, was to add to the residuary fund the sum of 81,124.02 francs. When this decision was taken, sundry other claims were pending under the convention: these were, that of John Mitchell; that of Joseph Russell; and that of Maurice Giraud. The first and last of these had been rejected by the French Council, on the ground that they were claims not embraced by the convention; and the last, (that of Giraud) was rejectedby the functionaries of both Governments. These facts explain the nature of the conditions stated in the Emperor's decision, and, particularly, why (whatever may have been the wish of the French Government) I refused to give to the claim of Giraud any portion of the sum of 81,124.02 francs; this claim belonged to James Swan, who had already received two millions, and upwards, of the fund. To Mitchell, the fourteen thousand additional francs were given, because he proved, most satisfactorily, that the supplies, out of which his demand grew, were made by Anthony Butler, of Philadelphia, in his own right, and for his own benefit. The bill to Holmes (which has been supposed to arise out of the claim of M. Giraud) had no connexion, whatever, with that claim, and was paid, in part, of a much larger one, made for provisions furnished at St. Domingo, and which passed one, or both, of the authorities recognised by the convention. The bills to Russell were drawn to the amount of sixty-two thousand franes, for freight and demurrage of the ship Fame, the joint property of the said Russell and T. W. Francis, of Philadelphia, and on which nothing had been previously paid; of these, thirty-two thousand only have been delivered, for reasons formerly assigned in two letters, of different dates, to you. These circumstances do not present to me any deviation from the convention, or from the law made in consequence of it. When the Emperor put at With regard to the other branch of the arrangement, it must also be remarked, that, on receiving my bills for the sum of 115,534.41 francs, the French Treasury took upon itself to pay the claims specified on the first page, and which had otherwise continued to embarrass and retard a final settlement of the business. Between, therefore, granting specific bills in discharge of these claims, and granting one or more to the French Treasury, which covered all and insured a final settlement, I cannot suppose that there is a sufficient legal distinction to prevent my particular account from being closed. Should this opinion, however, be erroneous, I must request that these bills, granted to the Cashier General, may be stopped at the Treasury, and held over until some other mode be adopted, which shall entirely satisfy the letter of the law. P. S. The bill of twenty-five thousand francs, retained from the appropriation to Russell, shall be sent to the Treasury. If I do not mistake, this bill has on it an endorsement by D. B. Warden, of contemporary date with itself, showing why it was withheld. John Armstrong, Minister of the United States at Paris, in relation to claims on France under the Louisiana Convention, of the 30th of April, 1803, in account current with the United States. Dr. To Treasury warrants, for amount of sundry warrants issued from the 6th of July, 1805, to the 5th of February, 1810, inclusive, in payment of bills drawn by him for debts due to the citizens of the United States by the Government of France, as admitted by said Government, under the Louisiana Convention of the 30th of April, 1803; including those issued in discharge of certain embargo claims, referred for payment to the Treasury, per certificate of the Register herewith $3,692,053 45 Profit and loss for this sum arising from fractions of cents, gained in calculation Cr. 2 24 3,692,055 69 By amount of claims on the Government of France, admitted by said Government as due to the citizens of the United States, and which, pursuant to the provisions of the Louisiana Convention of the 30th of April, 1803, were payable by bills drawn by the said Minister on the Treasury of the United States, Loan of Eleven Millions of Dollars. LOAN OF ELEVEN MILLIONS OF DOLLARS. [Communicated to the House, May 18, 1812.] TREASURY DEPARTMENT, May 14, 1812. SIR: Subscriptions were opened on the first and second instant, to the loan of eleven millions of dollars, authorized by the act of 14th March last, in conformity with the enclosed notice, A. It was left optional with the banks which were disposed to subscribe, either to receive stock or to loan the money by special contract. The enelosed circular letters, B, C, D, show the instructions transmitted, and the manner in which the proposals were made to the several banks. It was thought most eligible not to limit, in any place, the amount of subscriptions to any specific sum; for which reason, the loan was kept open only for two days, in order that the general result might be ascertained, and a reduction, if necessary, be made. All the returns have now been received, and an abstract, E, is herewith transmitted. From these it appears that $6.118.900 were subscribed in those two days, viz: $4,190,000 by banks, and $1,928,900 by individuals. This last sum is greater than the aggregate of all the loansat six per cent. ever before obtained by this Government from individuals in the United States;* and, considering the price of stocks and various obstacles which at this time have impeded the subscriptions, the amount is as great as might have been expected within so short a period. The unsubscribed residue will now be apportioned among the several places, according to the apparent demand in each, and subscriptions will be received, or stock sold, until the sums thus respectively apportioned shall have been disposed of. It is confidently believed that the amount which remains unsubscribed for will thus be filled as early as the money will be wanted for the public service. In order, however, to prevent the possibility of disappointment, and to remove doubts and erroneous expectations, I beg leave to submit the propriety of authorizing the issue of Treasury notes, on the following principles, viz: 1. Not to exceed, in the whole, the amount which may ultimately not be subscribed to the loan; that is to say, that the amount received on account of the loan, and that of the Treasury notes, shall not, together, exceed eleven millions; which limits, therefore, the greatest possible amount of the Treasury notes to less than four millions nine hundred thousand dollars. 2. To bear an interest of five and two-fifths per cent. a year, equal to one and a half cent per day on a one hundred dollar note. 3. To become payable by the Treasury one year after the date of their respective issues. 4. To be, in the meanwhile, receivable in payment of all duties, taxes, or debts, due to the United States. I have the honor to be, &c. ALBERT GALLATIN. Hon. LANGDON CHEVES. A. Whereas, by an act of Congress, passed on the fourteenth day of March, in the year of our Lord one thousand eight hundred and twelve, the President of the United States is authorized to borrow, on the credit of the United States, a sum not exceeding eleven millions of dollars, at an interest not exceeding six per centum per annum, * The only two six per cent loans obtained from individuals in the United States by this Government, are, 1st. On account of the loan of $5,000,000, authorized by the act of 31st of May, 1796, one-half of which stock was advertised for sale for several weeks, without any offer being received, and of which, at last, only $80,000 were sold at private sale. 2d. The Navy six per cent. loan, authorized by the act of June 30, 1798, which made the money subscribed applicable, on the spot, to a favorite object, and left the management and application of the funds in the hands of the subscribers. The amount of this stock issued, in the whole, was $711,700. Loan of Eleven Millions of Dollars. payable quarter yearly, so, however, that no en-acting business at the said banks, for two days. gagement or contract shall be entered into, which If more than eleven millions of dollars, in the shall preclude the United States from reimburs- whole, shall be subscribed, the surplus shall be ing any sum or sums, thus borrowed, at any time after the expiration of twelve years from the first day of January, one thousand eight hundred and thirteen: And, whereas, by the said act, so much of the funds constituting the annual appropriation of eight millions of dollars, for the payment of the principal and interest of the public debt of the United States, as may be wanted for that purpose, after satisfying the sums necessary for the payment of the interest and such part of the principal of said debt as the United States are now pledged annually to pay and reimburse, is pledged and appropriated for the payment of the interest, and for the reimbursement of the principal of the stock now to be created, and the faith of the United States is pledged to establish sufficient revenues for making up any deficiency that may hereafter take place in the funds now appropriated for paying the interest and principal as aforesaid: And, whereas, the President of the United States did. by an act or commission, under his hand, dated the thirtieth day of March, in the year one thousand eight hundred and twelve, authorize and empower the Secretary of the Treasury to borrow, on behalf of the United States, a sum not exceeding, in the whole, eleven millions of dollars, and to make the necessary contract for the same, pursuant to the act of Congress above recited: Now, therefore, the undersigned Secretary of the Treasury, in pursuance of the act of Congress, and the authority from the President of the United States, above-mentioned, doth hereby, on behalf of the United States, contract and engage, in manner following, to wit: 1. Books for receiving subscriptions to a loan of eleven millions of dollars, for the use of the United States, shall be opened on the first day of May next At Portsmouth, New Hampshire, at the Union Bank. At Salem, Massachusetts, at the Merchants' Bank. At Boston, Massachusetts, at the State Bank, Union Bank, and Massachusetts Bank. At Providence, Rhode Island, at the Roger Williams Bank. At Hartford, Connecticut, at the Bank of Hart ford. At the city of New York, at the Manhattan Company and Mechanics' Bank. At Philadelphia, at the Bank of Pennsylvania, and Farmers and Mechanics' Bank. At Baltimore, at the Bank of Baltimore and Commercial and Farmers' Bank. At the City of Washington, at the office of the Bank of Columbia. At Richmond, Virginia, at the Bank of Virginia. At Charleston, South Carolina, at the State Bank, and Planters and Mechanics' Bank. deducted in proportion to the sums subscribed in each place, respectively, by a reduction of the subscriptions exceeding four thousand dollars. 2. For every hundred dollars which may be subscribed. there shall be paid, at the time of subscribing, the sum of twelve dollars and fifty cents, and a like sum of twelve dollars and fifty cents on the fifteenth day of each of the ensuing months of June, July, August, September, October, November, and December, one thousand eight hundred and twelve, respectively. Each subscriber, at the time of paying any of the above instalments, after the first, may pay all or any number of subsequent instalments, and will be entitled to receive interest, at the rate of six per centum per annum, on the amount thus paid from the time of actual payment. 3. On the failure of payment of any instalment of the sums subscribed according to the tenor of the second article, the next preceding instalment of twelve dollars and fifty cents, which shall have been paid for every hundred dollars subscribed, shall be forfeited to the United States. 4. If any subscriptions shall be reduced in consequence of a greater sum than eleven millions of dollars being subscribed, conformably to the first article, the amount of such reduction shall be forthwith returned to the subscribers from whom such reduction shall have been made. 5. Each subsequent instalment must be paid at the same bank at which original subscription was made, and where the first instalment was paid. 6. For such sums or number of shares of one hundred dollars, as may be subscribed, the Cashiers of the respective banks, within twenty days after the time of subscribing, shall give certificates, stating the sums subscribed and payment made, and on which the payments of the subsequent instalments, when made, shall be respectively endorsed; which certificates shall be assignable, by endorsement and delivery of the parties, in whose favor they may be issued, until the completion of the payments required by the tenor of the second article. 7. After the completion of the payments aforesaid, the proprietors of the certificates of the Cashiers, on which such payments have been completed, on surrendering the same at the Loan office of the State in which the subscription and payments shall have been made, shall be entitled to receive from the Commissioner of Loans, certificates of funded capital stock, bearing an interest of six per centum per annum, from the time when the said instalments shall have been paid, respectively, and payable quarter yearly, at the several Loan offices, or at the Treasury of the United States, where the same may stand credited; which certificates of funded capital stock shall be issued in the sums of one hundred, four hundred, one thousand, four thousand, or ten thousand dollars, at the option of the proprietor, and Which books shall continue open for receiving subscriptions during the ordinary hours of trans- I shall be transferable by the creditors, or their atLoan of Eleven Millions of Dollars. torneys, duly constituted, at the Treasury and Loan offices, respectively, in the same manner as the present funded debt of the United States, and in pursuance of the rules which have been, or which may be, established, relative to the transfer of the said debt. 8. After the payment of the fifth instalment, such of the proprietors of the certificates of the Cashiers, of four hundred dollars and upwards, as may then be desirous of funding the same, may, on presenting them at the Loan office of the State in which the subscription and payments shall have been made, receive from the Commissioner of Loans, certificates of funded capital stock, of the description aforesaid, for the amount of the four first instalments, or one moiety of the sum expressed in the subscription certificates. 9. Atter the last day of December, in the year one thousand eight hundred and twenty-four, and after reasonable notice to the creditors, which shall be given by an advertisement in some public newspaper, printed at the seat of the Government of the United States, the said capital stock shall be redeemable at the pleasure of the United States, by the reimbursement of the whole sum which may, at that time, stand credited to any proprietor on the books of the Treasury, or of the Loan offices, respectively. 10. So much of the funds, constituting the annual appropriation of eight millions of dollars, for the payment of the principal and interest of the public debt of the United States, as may be necessary for the regular payment of the interest, and for the reimbursement of the principal of the stock to be created under this contraet, together with the faith of the United States for its due fulfilment, are hereby pledged, in pursuance of, and according to, the terms and conditions of the act of Congress hereinbefore recited. Given under my hand, and the seal of the Treasury of the United States, at Washington, this thirty-first day of March, one thousand eight hundred and twelve. ALBERT GALLATIN, Secretary of the Treasury. B. TREASURY DEPARTMENT, April 7, 1812. SIR: I take the liberty of enclosing to you copies of the contract for raising, by loan, eleven millions of dollars, pursuant to an act of Congress, passed on the 14th day of March last. Presuming that your institution would be disposed to facilitate this operation, it has been named as one at which subscriptions to the loan would be received. I will thank you to apprize me immediately if, from any cause, it should be incompatible with your views to accede to this arrangement. If the bank shall consent to receive the subscriptions in the manner proposed, it will be necessary, in the first place, that a book, in which the subscribers may enter their names, and the tude to receive all the subscriptions likely to be made at your bank, to the first page of which one of the copies of the contract or terms of the loan, herewith transmitted, signed by the Secretary of the Treasury, and sealed with the Treasury seal, is to be affixed. The subscribers will write, in words at length, against their names, the amount which they intend to subscribe: And, on the same lines, respectively, the eighth part of that sum, being the first instalment, is, as soon as paid, to be entered by your Cashier, in figures, in a column left for that purpose, at the right-hand side of each page. This entry will, it is presumed, be a sufficient receipt to the subscriber, until the Cashier's certificate, or scrip, shall be issued to him, which, according to the sixth article of the terms of the loan, will be within twenty days after the time of subscribing. Yet, if the parties, or any of them, should, at the time of subscribing, require receipts from the Cashier, they may be given in his name, in any form you may prescribe, and to be returned when the abovementioned certificates or scrip shall be delivered. The whole amount paid at the time of subscription, is to be credited to a distinct account, bearing that designation, and not to be carried to the credit of the Treasurer of the United States before the expiration of twenty days, as above stated. This period has been taken, in order to give time for all the cashiers of the banks, where the subscriptions are received, to return to the Treasury an account of the sums subscribed, that it may be thus ascertained whether more than eleven millions, in the whole, shall have been subscribed, and a reduction of the larger subscriptions shall consequently become necessary, as provided for in the first article of the terms of the loan. Immediately after the subscription is closed, on the second day of May, the Cashier is to transmit to the Secretary of the Treasury an account1. Of the total amount subscribed. 2. Of the portion of that amount subscribed in sums exceeding four thousand dollars, each. 3. A list of all the subscriptions exceeding four thousand dollars, each. As soon as these accounts from all the Cashiers of banks where subscriptions are received shall reach the Treasury, it will be ascertained whether any reductions of subscriptions will be necessary, and this will be immediately communicated to the Cashiers, who will then, in case of reduction, repay the excess to the subscribers, credit the Treasurer of the United States for the residue, and issue the subscription certificates, which, together with forms for their entry and registry, will, in the mean time, be transmitted from the Treasury. As some of the banks may be disposed to become subscribers, provided the amount of their subscription be deposited with themselves until drawn for, for public purposes, you will be pleased, in case of any such subscription on the part of a bank in your State, and in good credit, to enter payment sums to be loaned by them, should be provided. the same in a separate page of the subscription This will consist of a book of sufficient magni- I book, to consider the receipt of the Cashier of Loan of Eleven Millions of Dollars. such bank as sufficient evidence of the pay on account of the loan, and to enter the same accordingly in the book. I insert, at foot of this letter, the names of the banksin your State, which are known and considered at the Treasury as sufficient. To these, a circular letter, one of which you will also receive, will be written on that subject; and you may receive subscriptions, in like manner, from such others as, in your opinion, are perfectly responsible. A reasonable allowance for the expenses of stationery and extra labor of the Cashiers of the banks, where subscriptions to the loan are received, will be made from the Treasury. • I have the honor to be, &c. The Presidents of the Union Bank of New Hampshire; Union Bank of Boston; Massachusetts Bank; State Bank, Boston; Roger Williams Bank; Bank of Hartford; Manhattan Company; Mechanics' Bank, New York; Bank of Pennsylvania; Farmers and Mechanics' Bank, Philadelphia; Bank of Baltimore; Commercial and Farmers' Bank, Baltimore; Bank of Columbia; Bank of Washington; Bank of Virginia; State Bank, Charleston; Planters & Mechanics' Bank, Charleston; Merchants' Bank, Salem. C. TREASURY DEPARTMENT, April 7, 1812. SIR: Having thought it probable that some of the banks might be disposed to subscribe to the loan of eleven millions of dollars, be opened on the first day of May next, and that it would be an additional inducement to that measure if the sums to be paid on account of such subscription should be permitted to remain in deposite in the banks making the subscription, until wanted for the public service, I have taken this mode to notify the several banks that an arrangment of that kind will be allowed by the Treasury. whole, or its portions, will be advanced; and the period when reimbursement from the United States will be expected. The same privilege will be allowed in this case, as in case of subscription to the loan, of permitting the amount which may be engaged to be advanced by the bank, to remain in the bank in deposite, till drawn for by the Treasurer for the current service. I have the honor to be, &c. ALBERT GALLATIN. To the Presidents of the Bank of New Hampshire, Boston Bank, Maine Bank, Portland Bank, Saco *Bank, Bank of Newburyport, Salem Bank, Bank of Essex, Bank of Providence, Bank of Rhode Island, Bank of Bristol, Newport Bank, Bank of New London, Bank of Middletown, Bank of New Haven, Union Bank of New York, Bank of New York, Merchants' Bank of New York, State Bank at Albany, Philadelphia Bank, Bank of North America, Bank of Maryland, Union Bank of Maryland, Mechanics' Bank of Baltimore, Farmers and Mechanics' Bank of Baltimore, Franklin Bank of Baltimore, Marine Bank of Baltimore, Farmers' Bank of Maryland, Union Bank of Georgetown, Potomac Bank, Farmers' Bank of Alexandria, Bank of Alexandria. D. TREASURY DEPARTMENT, May 11, 1812. SIR: To my letter of the 7th instant, I beg leave to add, that, if it should suit the views of your institution to loan any sum of money to the United States, at a rate not exceeding six per centum per annum-without, however, subscribing to the proposed loan, and receiving stock therefor-a special contract for the purpose may be formed. In this event, you will be pleased to communicate to the Secretary of the Treasury the amount proposed to be loaned; the time or times when the whole, or its portions, will be advanced; and the period when reimbursement from the United States will be expected. If, therefore, it shall suit the views of your institution to subscribe for any part of the loan, the subscription may be made at the bank or banks in your State, where subscriptions, by the terms of the enclosed contract, are to be received, and the amount of each instalment, as it becomes payable, may remain in your bank to the credit of the Treasurer of the United States, until drawn for on account of the public service. A receipt, or certificate of your Cashier, that the amount of ed, altogether, than eleven millions, it would be each instalment, as it becomes payable, is placed in your bank to the credit of the Treasurer of the United States, has been directed to be accepted at the banks where subscriptions are received, as sufficient evidence of the payment. If from the terms of your charter, or from any other cause, it should be deemed improper to subscribe to the loan, and receive stock therefor, and the bank should, nevertheless, be disposed to loan money to the United States, at a rate of interest not exceeding six per centum per annum, a special contract for the purpose may be formed. In this event, you will be pleased to communicate to the Secretary of the Treasury the amount proposed to be loaned; the time or times when the I also request, that, in the event of your institution subscribing to the proposed loan, you would inform me whether it would be your wish, in case of reduction, that that on your subscription should be made on the same principles as on all others, or whether you will leave it discretionary with me to reduce it to a less sum than your proportional share. My reason for this last inquiry is, that, in the event of a larger sum being subscribdesirable to receive the whole amount from individuals, and to reserve, for some subsequent emergency, the resource of such loans as may be obtained from the several banks. I am, very respectfully, &c. To the Presidents of the Union Bank of New Hampshire, Union Bank of Boston, Massachusetts Bank, State Bank at Boston, Roger Williams' Bank, Hartford Bank, Manhattan Company, Mechanics' Bank of New York, Bank of Pennsylvania, Farmers and Mechanics' Bank, Bank of Baltimore, Commercial and Farmers' Bank, Bank of Virginia, State Bank at Charleston, Planters and Mechanics' Bank, Bank of Columbia, Bank of Washington, Merchants' Bank of Salem. |