REPORT
Of the SECRETARY of the TREASUR Y to the
HOUSE of REPRESENTATIVES.
Treasury Department, Jan. 9, 1790.
[continuation.]]
TH E general principle of it seems to be equitable, for it ap
pears diilkult to conceive a good reason, whj the expenccs
for the particular defence of a part in a common war, should not
be a common charge, as well as those incurred proleffedly for the
general defence. The defence of each part is that ot the whole ;
and unlefc all the expenditures are brought into a common mass,
the tendency roust be, to add, to the calamities fullered, by be
ing the mofi exposed to the ravages of war, an increase of bur
thens.
This plan seems to be susceptible of no objcftion, which does
not belong to every other, that proceeds on the idea of a final ad
justment of accounts. The difficulty of fettling a ratio, is com
mon to all. This mull, probably, either be fought for in the pro- !
portions of the requilitions, during the war. or in the decision of
commissioners appointed with plenary power. The rule pre
scribed in the Constitution, with regard to representation and di
rest taxes, would evidently not be applicable to the situation of
parties, during the period in question.
The existing debt of the United States is excluded from the
computation, as it ought to be, because it will be provided for
out of a general fund.
The only difcuflion of a preliminary kind, which remains, re
lates to the diftinftions of the debt into principal and interest. It
is well known, that the arrears of the latter bfcar a large proportion
to the amount of the former. The immediate pa) ment of these
arrears is evidently jmprafticable, and a quelhon arifet, what
ought to be done with them ?
There is good reason to conclude, that the impressions of many
are more favorable to the claim of the principal than to that of
the interest ; at least so far, as to produce an opinion, that an infe
rior provision might fuifice for the latter.
But to the Secretary, this opinion does not appear to be well
founded. His investigations of the fubjtft, have led him to a con
clusion, that the arrears of interest have pretentions, at least equal
to the principal.
The liquidated debt, traced to its origin, falls under two prin
cipal discriminations. One, relating to loans ; the other to ser
vices performed and articles supplied.
The part arising from loans, was at firft made payable at fixed
periods, which have long since elapsed, with an early option to
lenders, either to receive back their money at the expiration of
those periods, Or to continue it at interest, 'till the whole amount
of continental bills circulating (hould not exceed the sum in cir
culation at the time of each loan. This contingency, in the sense
of the contra£l, never happened ; and the presumption is, that
the creditors preferred continuing their money indefinitely at in
terest, to receiving it in a depreciated and depreciating state.
The other parts of it were chiefly for objrfts, which ought to
have been paid for at the time, that is, when the services were
performed or the fupplics furnilhed ; and were not accompanied
"with any contract for interest.
But by different acts of government and adminiflration, con
curred in by the creditors, these parts of the debt have been con
verted into a capital, bearing an interest of fix per cent, per an
num, but without any definite period of redemption. A portion
of the loan-office debt has been exchanged for new securities of
thai import. And the whole of it seems to have acquired that
character, after the expiration of the periods prefixed for repay
ment.
If this view of the fubjcfl be a just one, the capital of the debt
of the United States, may be considered in the light of an annuity
at the i ate of fix per cent, per annum, redeemable at the pleasure
of the government, by payment of the principal. For it leems to
be acltar position, that when a public contrasts a debt payable
with interest, without an/ precise time being ftipulatcd or under
stood for payment of the capital, that time is a matter of pure dis
cretion with the government, which is at liberty to confnlt its
own convenience refpefting it, taking care to pay the interest with
pun&uality.
Wherefore, as long as the United States should pay the interest
of their debt, as it accrued, their creditors would have no right to
demand the principal.
But with regard to the arrears of interest, the cafe is differ
ent. These are now due, and those to whom they are due, have
a right to claim immediate payment. To fay, that it would be
impraflicable to comply, would not Vary the nature of the right.
Nor can this idea of impracticability be honorably carried further,
than to juftify the proportion of a new contrast upon the balis ot
a commutation of that right for an equivalent. This equivalent
too ought to be a real and fair one. And what other fair equiva
lent cm be imagined for the detention of money, but a reafdrtable
interest? Or what can be the standard of that interest, but the
market rate, or the rate which the government pays in ordinaly
cafcs ?
From this View ot the matter, which appears to be the accurate
and true one, it will follow, that the arrears of interest are entitled
to an equal provision with the principal of the debt.
The result of the foregoing difcuflion? is this—That there ought
to be no discrimination between the original holders ot the debt,
and present possessors by purchase—That it is expedient, there
(houldbe an aflumption oftheftate debts by theUnion,and that the
arrears of interest Ihould be provided for on an equal tooting with
the principal.
The next enquiry, in order, towards determining the nature of
a proper provision, refpefts the quantum of the debt, and the pre
sent rates of interest.
The debt of the union is diftingmfhable into
foreign and domestic.
The foreign debt as stated in the schedule B.
amounts to principal
bearing an interest of four, and partly an in
terest of five per cent.
Arrears of intercll to the fact oT December,
1789,
Making together, dbllar# 11,710,378 62
The domtflrc debt may be tub-divided in
to liquidated arid unliquidated ; principal and
interest.
The principal df the liquidated part, as dated
in the schedule C, amounts to
bearing an interefl of fix per cent.
The arrears of jntereft as stated in tiie schedule
D. to the end of 1 amount to
Making together, dollars 40,414,085 94
This includes all that has been paid in indents (except what has
come into the treasury oFthe United States) which, in the opinion
of the Secretary, can be considered in no other light, than as inter
cft due.
The unliquidated part of the domestic debt, which consists
chiefly of the continental bills of credit, is not afcertaincd, but
may he estimated at 2,000,000 dollars.
These several sums conllitute the whole of the debt of the Uni
ted States, amounting together to 54,124,464 dollars, and 56
cents.
That of the individual dates is not equally well afcertaincd.
Thefchedule E. shews the extent to which it has been ascertained
by returns pursuant to the order of the House of the 2 ill Septem
ber last ; but this not comprehending all the Hates, the rcfidue
must be cftimatcd from less authentic information. The Secre
tary, however, presumes, that the total amount may be faiely ftatco
at 25 millions of dollars, principal and interest. The preient rate
of intcreft of the state debts is in general, the fame with that of the
domestic debt of the union.
On the supposition, that the arrears of interest ought to be pro
vided for, on the fame terms with the principal, the annual amount
of the interest, which, at the existing rates, would be payable on
the entire mafsof the public debt, would be,
On the foreign debt, computing the- interest
on the principal, as it (lands, and allowing
four per cent, on the arrears of intcreft,
On the domestic debt, including that of the
states,
A FUNERAL ORATION,
On the Most Worfhipfuland Hon. Major-General
RICHARD CASWELL, Grand Master of the
Masons of North Carolina.
And all Judea and Jerusalem mourned for Joftah. Ch. B. 2, t>. 24,
By Francois-Xavier Martin.
Worjhipful SIRS,
And worthy BROTHERS,
BEREFT of him who conducted our works, we
are met to discharge the tribute of a tear due
to his memory. How deeply the reft of the com
munity fimpathizes with us, on this melancholy
occasion, the attendance of a refpetftable number
of our Fellow-Citizens fully teftifies.
Shall our griefs terminate in sterile tears ?
Shall this Discourse, sacred to the Memory of the
Mod Worfhipful and Honorable Major General
RICHARD CASWELL, Grand-Master of the Ma
sons of North-Carolina, be, like the song of the
untutored savage, the mere rehearsal of a War
rior's achievements ? No. In admiring the vir
tues that have rendered his death, like Jofiali's,
lamented in Judea and Jcrufalem, let us, asChrif
tians and Masons, be stimulated, not to offer idle
adulation to his Manes, but, to imitate, in the
pra(ftice of every virtue, so bright a pattern.
Nothing excites more powerfully to virtuous
deeds,than the examples of those whom they have
rendered conspicuous. Man generally desires
what he finds, applauded in others. And, either
because Virtue appears more noble, when he
hears it praised, or less difficult, when he fees it
practiced, he is stimulated thereto—as the labour
is not without reward, and remifliiefs would be
without excuse.
The examples of the Dead are no less powerful
than those of the Living. We look upon the
Virtues of the former with a greater degree of
veneration. As we view those of the latter with
a greater degree of envy ; perhaps, because,
Death having crowned them, we are willing to
believe that posterity praiseS without flattery, as
it praises without interest—or rather (for, why
fllould the real reason be concealed in this tem
ple of truth ?) becaufe,our pride will not fuffer us
to acknowledge them.
To convene the people when fonie illustrious
popular Character had terminated his career, and
to improve the opportunity of exciting them to
Patriotic Virtues, is an ancient cuftoin, frequent
instances of which occur in sacred and profane
history. The herr: of man, however obdurate,
when operated upon by grief, or the idea of a
future ltate is prepared to receive such favoura
ble impressions ; as the ftiff and close grained
stone becomes pliant and dudtile, when heated by
the fire of the furnace.
Thus we read that the corps of Caesar, having
been brought iil'to forum of the metropolis of
the world, Anthony, holding up that Dictator's
garment, addrefled the Roman people. " You
" well know," laidhe, " this mantle. I reinem
" ber the firft time Caesar put it on. It was on
" the day he overcame the Nervii. If you have
" tears to ihed, prepare to lhed them now."
With as much propriety, can I rife to day, and,
addrefling yon, fay :—
You well know these Badges. They are the
Ilifignht of MASONRY—of a society which for
its antiquity and utility acknowledges no equal
among the institutions of the sons of man. Be
hold the White Apron that was girded on him,
the loss of whom we bemoan, on the day he be
came a Mason. He has left it to you, unsullied.
He has left it to you, decorated with those marks
of dignity, to which merit alone gives title.
If you have tears to shed, prepare to lhed them
now.
Dollars. Cents,
i0,07°,3°7
1,640,071 62
He is 110 more. No longer ftiall he, like the
eastern fun illuminate our Lodges ; no longer
lhall he plan or direift our works.
You well know, Fellow-Citizens, that Sword,
emblematical of Supreme Executive Authority.
I remember the firii time it was delivered hitn.
It was on the day we shook off the oppreflive yoke
of British domination and became a People.
If you have tears to flied, prepare to shed them
now.
Dollars. Cents.
271383>5»7 74
zo
He is no more. No longer shall he wield the
Sword of Justice attempered by mercy. No lon
ger shall he preside in your Councils, or lead you
to the hostile Field.
To enter here into a minute detail of the fer
viceshe rendered you, would be to premise that
they may be obliterated from your memory—You
remember them. Brothers and Fellow-Citizens,
they cannot have been forgotten.
340
Making together, dollars 4,587,444 81
(To be continued.)
It was he who headed you on the day you brake
down the superior phalanx of Scotch insurgents
at Moore's creek ; and thereby preserved the cause
of freedom from the deadly blow, this reinforce
ment would have enabled our enemies to strike.
It was he who presided in the aflembly of Pa.
triots, who framed that inltrument, which, defin
ing your rights and the authority of your rulers
hasl'ecured your liberties to this day.
It was he whom your united voices twice called
to the Supreme Magistracy of this State—and it
was he, whom, but a few days ago, still filled the
Chair of your Senate.
If his Public character affords a vast field to the
panegyrist's fancy, his Private one defervesnolefs
our attention and praise. In it we shall always
find an example worthy of imitation.
Dol. Cents.
<4 2 '599 66
4,044-845 '5
Public Virtue may procure a more shining re
putation, but Domestic Virtue gives a more solid
merit. The former, when unsupported by the
latter, is, in the Warrior, a thirst of glory—in
the Civil Ruler, a thirst of power.
A single instance of momentary intrepidity
may make a name to the Chieftain ; but a continu
ed spirit of moderation alone characflerifes the
Virtuous individual.
Valour is a noble paflion, which evinces a great -
ness of ioul. But too oft it is a vain generosity
excited by ambition, and which has for its aim
the mere gratification of a felfilh pride ; an in
considerate boldness juitified by success ; a blind
ferocity which ftifles the voice of humanity, and
by the tears it causes to flow and the blood of its
vitflims, tarnifbes the laurels of the vanqnifher.
Dotneftic virtue on the contrary, is so perfedr,
that it is laudable even in its excefles. It is
peaceable and constant ; and springs from a
meekness and tenderness which regulate desire,
and, giving the virtuous individual the command
of hisown,caufes him to reign over the hearts of
others. The one excites astonishment and fear ;
the other commands reverence and love.
The Swede boasts of the name of Charles
but blefles that of Guftavus Vafa.
In him, of whom the hand of death lias bereft
us, public and domestic virtues were ever united.
Not fatisfied in watching with unremitted atten
tion over the welfare of the community,he anxious-
ly endeavored to promote the felicity of its mem
bers. Blest with a coinplaency of disposition and
equanimity of temper, which peculiarly endeared
him to his friends, he commanded refpeft even
from his enemies. The tender sensibility of his
heart was such, that he needed but to fee diftrels,
to feel it and contribute to its relief. Deaf to the
voice of interest, even in the line ofliisprofeifion,
whenever oppreft indigence called for his aifift
ance, he appeared at the bar without even the
hope of any other reward, than the consciousness
of having lb far promoted the happiness of a fel
low man.'
Such is, worfhipful firs and worthy brothers,
the character of one, whose leflons shall no lon
ger inftruift us, but the remembrance of whose
virtues will long continue to edify us.
Such is fellow-citizens, the charatfler of one
who bore so great a share in the revolution by
which you became anation, who, during his life,
was ever honored with fonie marks of your ap
probation, and whose memory will, I doubt not,
be embalmed in your affetflions.
Shades of Warren, Montgomery, andMerCer!
and ye Shades of those other Columbian Chiefs,
who bore away the palm of political martyrdom !
attend, receive, and welcome, into the happy
mansions of the just, afoul congenial with those
of your departed heroes, and meriting alike our
esteem, gratitude and tears.
ALL persons who have not accounted for the expenditures of
public money and stores, received from Hugh Huches, ei
ther in the capacity of Commiflary of Military Stores, All:flan' ana
Deputy Quarter Walter General to the army of the United States,
or Deputy Quarter Mafterfor the State of New-York, &c. or De
puty Quarter MaftertotheEaftern and Main Army, are requested,
by the said Hughes, to exhibit their accounts and vouchers, pro
perly dated, asearlyas poflible, to the auditor of the Treasury of
the United States, in the city of Netv-York, that a final settlement
of the fame may be trtade.
The Executors, or Administrators, to the estates of any of'hi
pcrfons firft mentioned,will be pleased to attend to this notification
N. B. The Printers in the different States in the Union, will render
n ejfential service to the public by inserting this in their neuijpapers.
NOTICE is hereby given to all the Creditors
of Thomas Eaton, William Pells, Ja
bez Sayrs, Anthony Sayrs, and George
Welch, Insolvent Debtors, now confined in the
common goal of Newark, in the county ofEflex,
and State of New-Jersey, that they
to appear on Monday the Twenty Second Day of
February next, at Nine o'Clock in the forenoon,
of Taid day, at the Court-House in Newarkafore
faid, before the Judges of the Inferior Court, and
(hew cause, if any there be, why an assign ment or
the above Insolvent Debtor's Estates should not be
made, and they the Insolvents be difcliarged a
greeable to law.
Thomas Eaton, William Pells, Jacob Sayr'i
Anthony Sayrs, George IVelch.
4 w - >
NOTIFICATION.
ADVERTISEMENT.
Newaik, 18th January, 1790.