State of the Sinking Fund.

SINKING FUND.

[Communicated to the Senate, February 7, 1817.]

The Commissioners of the Sinking Fund respectfully report to Congress as follows: That the measures which have been authorized by the board, subsequent to their report of the 7th of February, 1816, so far as the same have been completed, are fully detailed in the report of the Secretary of the Treasury to this board, dated the 6th day of the present month, and in the statements therein referred to, which are herewith transmitted, and prayed to be received as part of this report.

JOHN GAILLARD, President of the Senate, pro tem.
J. MARSHALL, Chief Justice of the United States.
WILLIAM H. CRAWFORD.

RICHARD RUSH, Attorney General.

The SECRETARY OF THE TREASURY respectfully reports to the Commissioners of the Sinking Fund:

That the disbursements from the Treasury, during the year 1815, on account of the principal and interest of the public debt, which sums, as appear by the statement C, annexed to the last annual report, amounted to

Together with a further sum, arising from interest on Treasury notes, placed in the hands of sundry commissioners of loans for the payment of dividends, which interest accrued thereon previously to their being demanded by the stockholders, as per statement hereunto annexed, marked C c

Have been accounted for in the following manner, viz:

1. There was repaid into the Treasury, during the year 1815, on account of the principal of moneys heretofore advanced for the payment of the principal of the public debt, as appears by the statement E, annexed to this report, the sum of

2. The sums actually applied, during the year 1815, to the payment of the principal and interest of the public debt, as ascertained by accounts rendered to this department, amounted, as appears by the annexed statement A, to the sum of

55,852 47

12,462,357 03

There was loss in exchange on remittances from America to Europe, during the year 1815, as appears by statement D, annexed to this report, of the sum of 3. The balance remaining unexpended at the close of the year 1815, and applicable to payments falling due after that year, as ascertained by accounts rendered to the Treasury Department, amounted, as will appear by the annexed statement B, to

54,193 72

38,650 94

$12,855,201 69

That, during the year 1816, the following disbursements were made out of the Treasury on account of the principal and interest of the public debt, viz;

On account of the interest and reimbursement of the funded domestic debt
On account of the principal and interest of temporary loans, viz:
Reimbursement of principal

$7,925,037 68

Payment of interest

On account of the principal and interest of Treasury notes

$1,225,000 00
74,092 46

On account of the interest on Louisiana stock, payable in Europe

1,299,092 46 15,896,524 61 639,502 35

Amounting together, as will appear by the annexed list of warrants, marked C,
to the sum of

Which disbursements were made out of the following funds, viz:
I. From the annual appropriation of eight millions of dollars for the year

And paid from the funds arising from the interest on the debt trans-
ferred to the Commissioners of the Sinking Fund, as per statement I
From the funds arising from the net proceeds of public lands
From the proceeds of duties on goods, wares, and merchandise imported,
and on the tonnage of vessels

II. From the appropriations provided by the acts of the 30th June, 1813,
and 4th March, 1814, for making up any deficiency of the annual ap-
propriation of eight millions
From the appropriation per act of the 26th December, 1814, entitled
"An act supplemental to the act authorizing a loan for the several
sums of $25,000,000 and $3,000,000," being the amount of Treasury
notes, including interest, which were issued under that act

III. From repayments into the Treasury, on account of moneys hereto-
fore advanced for the payment of the principal and interest of Trea-
sury notes, and of interest on Louisiana stock in Europe, as will
appear by the annexed statement Ee

$8,000,000 00

325,510 23* $7,674,489 77

$1,969,577 64
1,287,959 28

$25,760,157 10

4,416,952 85

$7,674,489 77

$7,128,931 01

8,767,593 60

* Amount stated in the last annual report as having been anticipated in 1815, of the appropriation for 1816

From this sum deduct a repayment in 1815, which was not ascertained when
the last report was submitted
Also the amount of Treasury notes, including interest paid in 1815, incor-
rectly charged to the appropriation of $8,000,000, and for which special
appropriations were made per acts of 30th June, 1813, and 4th March, 1814 3,872,708 95

15,896,524 61

922,132 19

$4,498,219 18

Property taken or destroyed by the Enemy.

IV. From the proceeds of the duties on goods, wares, and merchandise imported, and on the tonnage of vessels, and from the proceeds of the direct tax and internal revenue in advance; on account of the annual appropriation of $8,000,000 for 1817

That the disbursements above mentioned, together with the balance above stated,
which remained unexpended at the end of the year 1815

1,267,010 53 $25,760,157 10

38,650 94

$25,798,808 04

Will be accounted for in the next annual report, in conformity to the accounts which shall have been then rendered to this department

That, in the meantime, the manner in which the said sum has been applied is estimated as follows, viz: I. There was paid for loss in exchange on remittances from America to Europe during the

year 1816, as exhibited in the annexed statement, marked D d, the sum of II. The repayments into the Treasury, on account of the principal of moneys advanced for the payment of interest on the Louisiana stock in Europe, and for the payment of the principal and interest of Treasury notes, have amounted, during the year 1816, as by the abovementioned statement E e, to

III. The sums actually applied during the year 1816 to the principal and interest of the public debt, including Treasury notes, are estimated as follows:

1. Paid on account of principal

2. Paid on account of interest

$75,446 94

922,132 09

$17,240,898 70
7,075,270 70

24,316,169 40

485,059 51

And there is estimated to have been left unapplied at the end of the year 1816, as
per estimate G, a sum applicable to payments on account of the public debt, du-
ring the year 1817, of

$25,798,808 04

That all the temporary loans which became due in 1816 were paid, including the instalment of $500,000 due the State Bank, Boston, and which had been payable in 1814.

That, during the year 1816, and on the 2st of January, 1817, funds were provided for the payment of all the Treasury notes which had previously fallen due at New York and at Savannah, and had not been paid, viz:

For all dated prior to 1st January, 1814, and payable in New York, funds were provided on the 1st October, 1816, as seen per annexed copy of a notice marked L.

For all dated prior to 1st July, 1814, and payable in New York, funds were provided on the 1st November, 1816, as seen per same statement L.

For all others payable in New York, funds were provided on the 1st of January, 1817, as seen per annexed copy of a notice, M.

For all those that became due at Savannah on the 1st of September, 1816, funds were provided prior to the 1st of January, 1817, as seen per annexed copy of a notice, marked M.

For those due and reimbursable at Boston, amounting, as appears by the annexed statement O, to $1,550,300, funds have not yet been obtained sufficient to meet their payments.

A statement, marked H, is annexed, which exhibits the whole amount of stock transferred to the Commissioners of the Sinking Fund, and standing to their credit on the books of the Treasury on the last day of December, 1816.

All which is respectfully submitted.

TREASURY DEPARTMENT, February 6, 1817.

WILLIAM H. CRAWFORD.

PROPERTY TAKEN OR DESTROYED BY THE ported by the Commissioner to the Department

ENEMY.

of War.
DECEMBER 21, 1816.

JAMES MADISON.

DECEMBER 21, 1816.

[Communicated to the House, December 23, 1816.] To the House of Representatives of the United States: The Acting Secretary of War has the honor to In compliance with the resolution of the House submit to the President the report made by the of Representatives of the 6th instant, I transmit Commissioner of Claims relative to his proceedto them the proceedings of the Commissionerings under the act "authorizing the payment for appointed under the "act to authorize the pay-property lost, captured, or destroyed by the ene ment for property lost, captured, or destroyed by my while in the military service of the United the enemy while in the military service of the States, and for other purposes." United States, and for other purposes." as re

GEO. GRAHAM.

Property taken or destroyed by the Enemy.

OFFICE OF CLAIMS, &C.,

Washington, Dec. 17, 1816.

either by impressment or contract, except in cases where the risk to which the property would The Commissioner appointed pursuant to the be exposed was agreed to be incurred by the law entitled "An act to authorize the payment owner, if it shall appear that such loss, capture, for property lost, captured, or destroyed by the or destruction was without any fault or neglienemy while in the military service of the Uni-gence on the part of the owner, and any person ted States, and for other purposes," in obedience who, during the time aforesaid, has sustained to a letter from the Acting Secretary of War, damage by the death of any such horse, mule, or enclosing a resolution of the House of Repre- ox, in consequence of failure on the part of the sentives passed on the 6th instant, in the follow- United States to furnish the same with sufficient ing words: "Resolved, That the President of forage while in the service aforesaid, shall be the United States be, and he is hereby, requested allowed and paid the value thereof." to lay before this House the proceedings of the Commissioner appointed under the act passed at the last session, entitled 'An act to authorize the payment for property lost, captured, or destroyed by the enemy while in the military service of the United States, and for other purposes," respectfully reports:

The Commissioner was at first disposed to consider the first clause of this section as providing only for such injuries as proceeded from the acts of the enemy. But inasmuch as damage by an enemy must almost universally happen in two ways, either "by capture or destruction," and as there were many other losses sustained by That, as soon as he received from the President on the owners," such, for instance, as wagons our citizens, "without any fault or negligence a notification of his appointment, he proceeded and teams lost by being forced to attempt to pass to the execution of the initiative duties required streams not fordable, contrary to the opinion of from him, by preparing such rules and regula- the owners, by the compulsive orders of military tions relative to the mode of presenting claims and commanders, on further reflection, he was intaking and authenticating evidence as appeared clined to give this clause a more extended meanto him to be necessary; which rules and regula-ing, and to consider the word "loss" as intions, having been approved by the President, were published in the form of notices, as enjoined by the said act, on the 3d and 24th of June last.

In forming these rules and regulations, the Commissioner endeavored to enter into the views of the Legislature, by giving such an interpretation to the provisions of the said act as might secure substantial justice to the sufferers intended to be relieved, and at the same time, guard against fraud and imposition. On this part of the subject he begs leave to refer to a copy of the said notices, in paper marked A.

The multifarious losses which it appears to have been the intention of the Legislature to provide for, required no little attention to separate and define. The first section of the being confined to "yolunteers or draughted militiamen, whether of cavalry, mounted riflemen, or infantry," and limited to the payment for horses only, admitted of an easy interpretation; as did also the second section, confined to "cavalry, mounted militia, or volunteers," which the Commissioner construed also solely to apply to persons belonging to corps not in the regular service, though the word "cavalry," used in contradistinction to "mounted militia or volunteers," may, at first view, seem to indicate a different meaning, and to be intended to extend also to cavalry in the regular service. This section, too, relates solely to the loss of horses.

tended to be contradistinguished from the words capture or destruction by an enemy," and to denote such injuries as might have happened in struction of an enemy," but "without any fault a manner other than "by the capture and dethe opinion of the Executive Government being or negligence on the part of the owner." But in favor of adhering to the first interpretation, the Commissioner has felt it his duty to conform his adjudication thereto.

The two first sections of the act being strictly conformed to military corps other than regulars, the change of expression in the third section, in which the broad words "any person" are used, seemed to denote that its provisions were intendacted to apply to every description of citizens, whether they belonged to the regular army, or to the militia, or volunteers; and inasmuch as the militia and volunteers, while in actual service, received the pay and emoluments of regulars, the Commissioner ultimately inclined to the opinion that losses happening under similar circumstances to persons engaged in either service were intended to be provided for. The word "contract" appeared to him to be of extensive import; and in every case as well in the regular as in the militia or volunteer service, in which the rank of the officer required that he should furnish himself with a horse; that, by accepting of his appointment, he entered "into a contract" with the Government to do so; and having done so, provided such horse died in consequence of a failure on the part of Government to furnish sufficient forage, or was taken by the enemy, that a regular officer ought to be paid for his horse in the same manner as if he had belonged to the militia or volunteer corps. But on this point the Executive Government having considered the regular officer as excluded from this benefit, the

The third section taking a larger scope, and involving a variety of cases, he found it more difficult to satisfy himself as to its true import. The words of this section are, "that any person who, in the late war aforesaid, has sustained damage by the loss, capture, or destruction by an enemy of any horse, mule, or ox, wagon, cart, boat, sleigh, or harness, while such property was in the military service of the United States, |

Property taken or destroyed by the Enemy.

Commissioner has felt it also his duty to adopt his adjudications to that opinion.

The fourth section admitted of an easy interpretation, applying solely to the loss of "arms and military accoutrements" of volunteers or draughted militiamen who had furnished themselves with the same.

The fifth section is in these words: "That, where any property has been impressed or taken by public authority, for the use or subsistence of the Army during the late war, and the same shall have been destroyed, lost, or consumed, the owner of such property shall be paid the value thereof, deducting therefrom the amount which has been paid for the use and risk of the same while in the service aforesaid."

This section has been construed to apply to all property, real, personal, or mixed, which has been impressed or taken by public authority, without the consent of the owner. (See papers marked A and B.)

The ninth section of the law providing for losses of greater magnitude, and necessarily involving the payment of large sums of money, the Commissioner endeavored to avail himself of every assistance which appeared to be within his reach, to enable him to give it a fair, a reasonable, and a just interpretation. With this view, erroneously supposing that he had a right to do so, he addressed to the Attorney General, the great law officer of the Government, the letter marked C; in reply to which he received the answer marked D.

The Commissioner considered this letter as sanctioning his own interpretation of the ninth section of the said law; and it was not until after he received this note, that he felt himself authorized to give to it a practical construction by a formal adjudication.

On the 21st of October the Commissioner received from the Department of War, as the organ of the Executive Government, a more general interpretation of the law, in the following words:

WAR DEPARTMENT, October 21, 1816. Pursuant to the eleventh section of the act making provision for property lost, captured or destroyed by the enemy while in the military service of the United States, and for other purposes, the President has been pleased to direct

That the first and second sections of the said

act do not embrace the case of officers of the regular army, and that the property which a regular officer may have taken with him in the service, or which he may have been required by law to keep, is not comprehended by the terms "impressed or by contract," used in the third section.

That the provisions of the third section extend only to losses resulting from the acts of the enemy, or from the failure of the Government to supply the necessary forage.

That the ninth section of the act extends only to cases of destruction of property by the enemy, which are justifiable by the laws of civilized warfare. The occupation of houses or buildings as places of military deposite, or by an armed Having been disappointed in obtaining this im- force, must be continued up to the time of the portant aid, the Commissioner, regarding the destruction. That the occupation of houses or office which he filled as a kind of appendage to buildings by an armed force for a night upon a the Department of War, addressed to the Secre- march, is not within the meaning of the said tary thereof the letter marked E, enclosing copies section, unless in the immediate presence of an of his correspondence with the Attorney General. enemy. That no compensation by way of interFrom this officer the Commissioner indulged est, rent, or damage, can be allowed, under the the hope that he should receive such an exposi-act, for the time which elapses between the detion as would enable him to fulfil the views of struction of the property and the decision of the the Legislature, by affording a just redress to the Commissioner. sufferers intended to be relieved. Nor was this expectation disappointed, when the Secretary, after due consideration, and no doubt consulting the best opinions, addressed to him on the 7th of September a note in the following words:

DEPARTMENT Of War,

September 7, 1816.

SIR: The President has been pleased to direct that the occupation of houses and buildings by the military force of the United States is embraced by the ninth section of the act "to authorize the payment for property lost, captured, or destroyed by the enemy while in the military service of the United States, and for other purposes," and that compensation shall be allowed for damage sustained in consequence of such occupancy, in the same manner as if such houses and buildings had been occupied as a military deposite, under the authority of an officer or agent of the United States. I have, &c.

WM. H. CRAWFORD.

RICHARD BLAND LEE, Esq.

That the act does not extend to the case of consequential injury resulting from the destruction of houses or buildings under the ninth section.

No compensation can, therefore, be allowed for the destruction of houses or buildings not occupied as a military deposite or by a military force.

That, in all cases of doubt, or of great impordence to the Executive before any decision is tance, the Commissioner shall submit the evi

made.

WILLIAM H. CRAWFORD.
RICHARD BLAND LEE, Esq.,
Commissioner, &c.

The Commissioner will close this subject, by referring to his correspondence with the Depariment of War, marked F.

The number of adjudications made and entered by him since the 1st of July, under special acts, and under the general law of the 9th of April last, amount to eight hundred and fifty; the total sum awarded, to $228,693 15.