ma] cod?, which having become a dead
I itc: in the iUtute boo!;, had not yet
b.en tl» uck out of it.
1. If the difcr imitation ha Jno efiTe& in
f: .-r (.1 the United States, it conld-not,
si the iame rcalon, be a prejudice to Por
tugal. If it were neccflary and proper to
go into the euquiry» more dircdt proofs
CtoulJ he give# on thispoint.
3. High duties do affect the United
STaU'S whiclV pioducc the article,'though
j'.niil by the Britifti containers. They
he a double effect: They leiTcn tlie
quantity called for; and by leflening the
competition, they lessen also the price.
1 ilis wis a truth that could need no com-
rrie.it.
It was to be remarked however, that
the zeal of the gentl:m«Ti cn this fubjeit
y. 's that it had led him to extend
ti.e fallacy of his reasoning to rice, the
II • pie article of his own state. This arti
c>- '-".'s 1 duty of 7/4 fter. per hundred
weighty but like the duty on tobacco, be
ing pafd by the consumer, was laid to be
oi little concern to us.
vali liie price or rice los ftfcrli ner S the
d.ilv i;
t!. m G:
\v:ui cannot aiford to eat ric*e at the price
o» i of, and the class who are willing to eat
it at 17/4 are prohibited the confu.mption
by the duty. Wa3 this a circumstance of
no concern to rhe rice planters ?—The
gentleman (hould have been reminded of
his error by It is own arguments.
As an apology for the duty impofedirt
Great Britain, he tells* us it was meant to
prevent the use of ric? as a fuhjiitutr, for
the brea J-ftuffs produce d by Great Britain
herfelf. Without the preventing duty
th !i, rice would have b.'on fuljiltutcd in
place of wheat, in the opinion of the Bri
ti 'i Pirl unent, a;id the demand for it, 111
the Brit fh market, fa far increased.
As a merit in the Britilh Weft-India
rc-;.!l ; .ions ov-r thofc ot Fiance, it was
fined by tiie gentleman, that rice in the
Welt-Indies is a common food ; that in
the BHtifh, the importation bf it is free,
in the Fier.ch, subject to a duty* though
an inconsiderable one. It. Britain th.n,
W> .re there Is a high duty, rice "s not an
ni i.ele of common f*>ori *. in the islands
wnere there is no duty, it is a common
so »d ; and th? advantage of the British
vr c 'l I market to us over the French,
i :, t:\at the duty in the latter favors cheap-
ef fubjiituta
Another proof of the dlfpofition of
G,cat-Britain to favor the United States
in tie Weft-India market, is the prohibi
tiijn of al! fbroi rice but the American.
The fame remark may be repeated here,
wli vh was applied to the discrimination in
t.nvor of our tobacco. It is an oldcoloi:y
re atioo that has no effeil whatever.
What other foreign rice couid be brought
to the Weft-Indies ? Is it the East India
lie ■ ; That is prohibited by its dil'rance.
Is it the liee oi Portugal ? That is prohi
!<:.'«! by the laws of Portugal, and proba
bly also by the lower price e£ the Carolina
rice.
The inference which the gentleman had
d iwr.j'Yoni the comparative regulations of
Great Britain and Fiance on the fubjeft of
rice was so curious that it was worth a
moment's attention.
The fdtfts Mr. M. observed, stood thus.
In France the duty is 1-8 per cent. In
the French iflandt the duty is 1 percent.
In the British free with a prohibition of
other foreign rice.
As the duty of 1 per cent, is scarcely
and the prohibition, as (hewn, is
merely nominal, the inequality in the
illands may be regarded as too immaterial
to affe& the cotnparifon.
Pal Ting to the two prcfent states, the
duty in France is 1-8 per cent.—The du
ty in Great Britain, 50 or 60 percent.
Here then is nearly an equality in one
pait, and a difference of 50 or 60 per
ceot. in the other part of the two domini
ons ; and yet the gentleman could fay,
vus not easy to pronounce, whether the
article of rice Hands on a better footing
in the system of one, than in the system
of the other.
An'rther charge ngainft the Secretary
of State is, that his report calls the discri
minating duties in Great Britain in favor
<>t American wood, small, whereas thev
;.re confiderabie, and iu several inllances,
'■'gh.
( Speech to be etnt'wved.)
CJ" This Gazette Jhall he enlarged, at it
receives encouragement —The Snbfcription
t xcrettfet daily—AduxrUfmg Favors are
fo!Uited —Thefi con/litute an ejftnlial Item
in d'.mim/ling the Dibit Jsd* of the Account.
CONGRESS
H'ufe of Reprnfiiitativrs.
Friday, Feb. 18.
The Committee on Fortifications, bro't
in another report this day which was read
—this proposes fortifying m th« princi
pal ports of the United States.
Mr. Sedgwick called up a report of a
fcle& committee to whom it had been re
ferred, " to report whether any and what
sum was necetfary to be loaned for the
ferrice of the current year," the purport
of which was that it was expedient, that
tin- Preftdent fliould be authorised to bor
row 1,000,000 dollars if in his opinion the
fam< should be necessary. The report
was referred to the committee of the
whole,
After the report was read, Mr. Sedg
wick said it was the duty of the fele&
committee, to state the several steps which
had been taken in the progress of their
enquiry, and the fa&s which had come to
their knowledge, during the inveftig*-
tion ; that the result which was expressed
in their report, might have its merits de
cided on by the committee of the whole.
Mr. Sedgwick dated that however in
adequate the actual receipts of the reve
nue might be, to difftiarge all the de
mands which might be made on the go
vernment ; there was in fa ft no deficien
cy 111 the funds appropriated to the dif
clrarge of fhofe demands. The deficit
was owing merely to the credit which for
the convenience and benefit of trade, was
allowed to the merchants ; and that in fa ft
the bonded duties were more than equal
to face all the dem.inds which were con
templated. That this credit, it would
be remembered extended from four months
to two years.
He next dated that by the report now
in the pofleflion of the committee, the
deficiency ot the end of the present quar
ter would amount to 621 ,294 dollars and
18 cents. The- feleft committee were
not fully acquainted with the hank tranf
aftions in relation to the treasury, and
were uncertain, whether money deposited
in banks by collectors of revenue, was
considered as in the trcafurr from the
time of the deposit. He observed that
th'S doubt arose from considering the law
conftitutmg the treafu.-y department* by
which it appeared that the Secretary's
warrant well required for .paying
money in, as for ifTuinjj. it from the trea
sury. It might therefore happen, if on
the deposit, money whb not considered as
in the treasury, that the apparent deficit,
reported of 621,294 dollars and 18 cents,
might exist, while in fit ft, there might be
at the disposal of government, a fufficient
sum compleatly to answer every demand.
Mr. Sedgwick said that contemplating
the fubieft in this view the feleft commit
tee had thought it their dutv to submit
certain questions to the Secretary, which
they had accordingly done, the import
of which was, " whether money collect
ed on account of the United States, in
banks, was from the time of deposit, con
sidered as in the treasury ? Or, are any,
and if any, what means are neceflary to
subject money so to the con
trouf of the treasurer ? And in the latter
cafe, who is from the time of such depo
sit until it partes into the treasury, respon
sible to the United States ? Is any money
now so deposited, capable of being drawn
into the treasury ! And if anv, is the
probable amount filch, as to' render a pre
sent provision for a loan inexpedient or
unneceflary !"
Mr. Sedgwick then read a letter ad
tfreffed to him as Chairman of the Selefl
Committee, from the Secretary of the
Treasury ; with the following copy of
which, he has been good enough to fur
ni(h the printer.
Tieafury Department, Feb.
2jth, 1794.
SIR,
The following are answers to the questi
ons (fatted in your Letter of the 2 2d inft.
Answer to Qtu.llion the firft.
All monies colleded 011 account of the
United States, and depofied in the bants
to the credit of the Treasurer, are consid
ered as in the Treasury from the time of
the depvfit. The Heady course with re
gard to the (landing revenue is that the
money deposited in bank, patTes immedi
ately to the credit of the Treafuier.
But it is neceflary to discharge the pay
ers, that receipts of the Treafuter (hould
b« endorsed upon warrants signed by the
Secretary, couoterigncd by the Comp
troller, and regillered by the Rt* filler,
which is the corn fe regularly obfertcd.
Answer to Question the second.
Aft-.'r monies arc deposited in banks to
the credit 'of the Treasurer, they are in
his controul ; though they may not le
gally be di'hurfed but upon warrants 06
the above description. If deposited with
out palling in the firft instance to the cre
dit of the Treasurer, the means used for
placing them in his custody and disposal
are warrants of the like kind.
Answer to Question the third.
In rcfpeA to any monies of the Unit
ed States, depolited in banks but,not pas
sed to the credit of the Treasurer, the
banks are considered as directly refporifible
to the United States ; in the cafe of de
posits to the credit of the Tieafurer, they
are refporifible in the firft instance to him,
ultimately to the United States.
Answer to Quellion the fourth.
Only two cases are recollected, in which
monies of the United States, may be con
sidered as having been deposited in bank,
without palling in the firft instance into
the account of the Treasurer. These
relate ift. to the proceeds of foreign bills
fold for the government and received by
the bank (all accounts of which ai c now
finally closed) —2d. to thefumof 200,000
dollars, being ib.t only Jam now so deposit
ed which arises from the last loan had of
the bank. It is l»ft (fnbjeft to the even
tual decision of the legislature) as an off
fet against the second inftalmentof the two
million loan from the bank.
The effect: of the operation will be this
—An interest of fix per cent payable to
the bank upon the instalment will be ex.
tingiiifhed from the 31ft Dec. last by an
.interest of 5 per cent payable tothe bank
upon the sum borrowed of itfelf and left
in deposit. And it,has Been endeavour
ed thereby to preserve consistency & re
gularity in the arrangements of the Trea
sury. The fir ft instalment by leaving in
deposit an equal sum of the proceeds of
foreign bills was considered a3 effected on
the 31ft. December 1792, though there
was not power toconfummate the payment
till some months after. Hence it becomes
tegular that each succeeding instalment
(hould be paid on the last of Dcc. of each
year. The provifwnal measure, thus a
dopted, was the only expedient in the
power of the treasury to reconcile, as far
as practicable, considerations relative to
the public interest and credit, with legali
ty of procedure. Neither the sum in de
posit on the one hand, nor the instalment
payable to the bank on the other is bro't
into the probable state of cash lately pre
sented to the House of Reprcfentatives;
because they balance each other and leave
the result the fame.
Thereare noexiftifigfources from which
monies can come into the bank on account
of the United States, except from the
proceeds of the revenue, which as far. as
known are comprized in the statement
before the House of Representatives. So
that there is no resource but a loan which
can supply the deficit of receipt in the
course of the present and fucceedipg quar
ter compared with the expenditure ; with
out one, a failure in the public payments
is inevitable.
If what has been said rtiould not give
the committee the light they desire, it is
imagined that perfonalexplanations would
lead more fully to their object, than the
course of written interrogatories and an
swers which can only partially embrace the
fubje&, and may procrastinate a right un
demanding of it.
1 am, Sir,
With cfteem and regard,
Your molt
Obedt. Servant,.
ALEX. HAMILTON.
Theodore Sedgwick, Esq.
Chairman of the Committee.
After reading this letter Mr. Sedg
wick observed, that the business as tranf
afted, in the manner stated in tlie Secre
tary's letter, was the moil beneficial pos
sible for the United States, because it
prevented any money, at any time, collec
ted for the public, lying beyond the reach
of the government and useless.
He further observed, that gentlemen
would remember, th&t it was ncceffary
not only to provide for a deficiency which
might cxiJt at the end of the current
quarter, but also for that next succeeding.
That to enable the i'eleft committee to
discharge the duty which they owed to
the house in this refpeft, it had been tho't
expedient to call on the Secretary This
they had accordingly done; acdhad ex
tended their enquiry to that period, to ful
iiil the object of their commission. That
the estimate resulting in their report, was
formed of the bell materials they couid
collect. He said, that in several particu
lars, it was probable that the estimate
might not be juitified by events. It ought
however, to be remembered, that it was
the duty of the legislature, to put the pre
servation of the pnblic credit, almost be
yond the reach of the possibility of being
injured.
The firft article he mentioned was the
deficit which would exist on the firft of
April, amounting, as clearly reported to
the House to 621,294 dollars and 18
cents —!,000,000 florins were to be paid
in Holland by the Ift of July. The com
mittee had agreed to estimate this at
400,000 dollars, though according to the
present rate of exchange it would amount
to somewhat that is about 40,000 dollart
more. Gentlemen, he said, would un
doubtedly perceive that it was for the
public interest that this object (hould be
provided for as early as possible, that ad
vantage might be taken of the occuring
circumstances so as to conduit the bufineis
moit profitably for the United States—
One quarter of the interest of the public
debt was 700,000 dollars—One quarter
of the civil lift was estimated at 50,000'
dollars. This he took notice would amount
to somewhat more, owing to the encreafe
of the number of the members of the
Legislature—The remaining item men
tioned by him was the army expenditures,
estimated at 375,000 dollars—This article
he observed might vary more from thtf es
timate than any of the preceding. It
might rife considerably above, it might
fall considerably below. The conje&ure
would, however, be found probably not
far from the truth. The aggregate of these
several Items amounted to 2,146,294 dol
lars and 18 cents. To fatisfy this sum it
appeared by returns inthe Secretary's
office, that there would fall due of duties
on imports, and tonnage, in the months
of April, May and June, and of course in
season to face the demands which may be ■
made on the ift of July, 448,802 dollars
and 22 cents. There will also be received
in the fame period, one quarter of the an
nual duties on distilled spirits, amounting
by estimate to 100,000 dollars, which ad
ded to the returned amount of the duties
as before stated of 448,802 dollars and 22
cents, makes an aggregate of 548,802
dollars and 22 cents. This sum deducted
from the aggregate of the estimated de
mands which may become necefiary to be
difcharged.beingasbeforeftated 2,146,294
dollars and 18 cents, would leave a balancce
to be provided for by loan of 1,597,491
dollars and 96 cents.
He observed, however,that there went'
two considerations which would cenfidet
ably lefTen this balanrue. These were, lit,
that there was, a deficiency of returns of
bonded duties'; and 2,d, ,the revenue of
the present year imports and
tonnage, which would be .in fact received
previous to the ift day of July—These
two articles the Secretary liad ellim'ated
ar 600,000 dollars, this lie had founded
oti his experience on this fubjett. The
committee had thought their report might
result in round numbers, departed minutely
indeed, from the Secretary's estimate by
reducing the 600,000, to 597,491. dol
lars and 96 cents, leaving according to
their report, a balance of 1,000,000 dol
lars to be provided for by*loan.
Mr. S. said it was true that all the de
mands on the Treasury might not be mads
at the precise moment they became due
It was indeed probable, that the money
due to foreigu officers in particular, might
not; but he repeated what he had before
said, that it was the duty of the Legisla
ture to put the public credit beyond the
reach of injury j and that by the report
of the feledt committee, the anthority to
borrow was only to exist in the cafe of
necessity
Mr. Sedgwick concluded by reading
from a payer he held in his hand, an ac
count according to the detail he had be
fore made and ilated.
Mr. Giles said the chairman of the fi
led* committee had made a fair, and com
prehensive ftatemer.t of the conduct of the
committee as far as he had gone; there
were however some fa£h, which he had
omitted, that lie thought should be com
municated. He {aid that in the course of
the committee's jnveftigatiou, it had ap
peared that the contrast contemplated by
the ast for incorporating the bank, had
been dated tither in June or July. It had
however been agreed, that it Ihould have