©f the S E C TF. T A R Y of the TR E AS UR Y to the HOUSE of REPRESENTATIVES. Treasury Department, Jan. 9,1790. r T , HE Secretary ot the in obedience to the resolution c 'he House of Representatives, of the twenty-firft day of . ept. lait, has, during the recess of Congress, applied himfelt to the eonfidcration of a proper plan for the fuppoit of the Public Cre dit, with all the attention which was due to the authority of the House, and to the magnitude of the object. In the discharge of this duly, he has lelt, in no small degree, the anxieties which naturally flow from a just estimate of the difficulty of the talk, iroin a well-founded diffidence of his own qualifica tions for executing it witli success, and from a deep and solemn conviction of the momentous nature of the truth contained in the resolution under which his investigations have been conducted, " That an adequate provision for the support of the Public Credit, is a matter ot high importance to the honor and profperitv of the United States." ' With an ardent dcfirc that his well-meant endeavors may be conducive to the real advantage of the nation, and with the utmost deference to the superior judgment of the House, he now refpefl fully submits the refultof his enquiries and rcfleftions, to their in dulgent conftru&ion. In the opinion of ;he Secretary, the wisdom of the House, in giving their explicit fanftion to the proposition which has been stated, cannot but be applauded by all, who will.seriously consi der, and trace through their obvious confequencej, these plain and undeniable truths. That exigencies are to be expected to occur, in the affairs of na tions, in which there will be a nectflity for borrowing. That loans in times of public danger, efpccially from foreign war, are found an indispensable relource, even to the wealthiest of them.*— And that in a country, which, like this, is poflefled of little ac tive wealth, or in other words, little m nied capital, the neceflity for that resource, mull, in such emergencies, be proportionably ur gent. And as on the one hand, the neceflity for borrowing in particu lar emergencies cannot be doubted, so on the other, it is equall) evident, that to be able to borrow upon good terms, it is eflentia that the credit of a nation ihould be well ellablifhed. For whert the credit of a country is in any degree questionable, it never fails to give an extravagant premium, in one (hape or ano ther, upon all the loans it has occasion to make. Nor does the «vil end here ; the fame disadvantage mutt be futtained upon whatever is to be bought on terms of future payment. From this constant nectflily of borrowing and buying dear, it is tafy to conceive how immensely the expences of a nation, in a courfeof time, will be augmented by an unsound state of the pub lic credit. To attempt to enumerate the complicated variety of mifchiefs in the whole system of the social economy, which proceed from a neglect of the maxims that uphold public credit, andjuftify the solicitude manifefted by the Houfc on this point, would be an im proper intrusion on their time and patience. In so strong a light nevertheless do they appear to the Secretary, that on their due observance at the present critical juncture, mater ially cfepends, in his judgment, the individual and aggregate pros perity of the citizens of the United States j their relief from the embarraflments theynow experience ; their chara&cr as a People ; the cause of good government. If the maintenance of public credit, then, be truly so impor tant, the next enquiry which suggests itfelf is, by what means it is to beefftfted ? The ready answer to which question is, by good faith, by a punctual performance of contrails. States, like individuals, who observe their engagements, are refpeded and trusted ; while the reverse is the fate of those, who purlue an op posite conduct. Every breach of the public engagements, whether from choice or neceflity, is in different degrees hurtful to public credit. When such a neceflity does truly exist, the evils of it arc poly to be pal liated by a scrupulous attention, on the part of the government to carry the violation no farther thdn the neceflity absolutely requires, and to manifeftjif the nature of the cafe admits of it, a lincere dis position tomake reparation, whenever circumstances lhall permit. But with every poflible mitigation, credit mutt fuffer, and numer ous mifchiefs ensue. It is therefore highly important, when an appearance of neceflity fecms to press upon che public councils that they (hould examine well its reality, and be perfectly adurcd, that there is no method of efcapingfrom it, before they yidd to its fuggeflions. For though it cannot fjfely be affirmed, that occa sions have never exiftcd, or may nut exist, in which violations of the.public faith, in this refpeff, are inevitable ; yet there is great reason to believe, that they exist far less frequently than precedents indicate ; and are olteneil either pretended through levity, or want offirmnefs, or supposed through wantof knowledge. Expedients might often have been devised to eifeft, confidently with good faith, what has been done in contravention of it. Those who are most commonly creditors of a nation, are, generally speaking, en lightened men ; and theieare signal examples to warrant a conclu lion, that when a candid and fair appeal is made to them, they ■will understand their true interett too well to rcfule their concur rence in such modifications of their claims, as any real neceflity maydemjnd. While the observance of that good faith, which is the basis of public credit, is recommended by the ftrongefl inducements of political expediency, it is enforced by conliderations of still great er authority. There are arguments tor it, which reft on the im mutable principles ot moral obligation. And in proportion as the mijid is diipofed to contemplate, in the order of Providence, an intimate connexion between public virtue and public happi ness, will be its repugnancy to a violation of those principles. This rtflecli'in derives additional strength from the nature of the deVt of the United States. It was the price of liberty. The faith of America lias been repeatedly pledged for it, and with so lemnities, .that give peculiar force to the obligation. There is in deed reason to regret that it has not hitherto been kept; that the neeefiities of the war, conspiring with inexperience in the fubiefts of finance, produced dircft inftoftions ; and that the fubfequcnt period has been a continued scene of negative violation, or non compliance. But 4 diminution of this regret arises from the re flection, that the 1..fl seven } ears have exhibited an eai nest and uni form effort, on the part of the government oftheunion, to retrieve the national credit, by doing jnftice to the creditors of the nation ; and thai the embarrassments of a defective constitution, which de feated this laudable effort, have ceased. From this evidence of a favorable disposition, given by the for mer government, the inflitution of a new one, cloathed with pow ers competent to calliDg forththe resources of the community, has excited correspondent cxpeaations. A general belief, accord ingly, prevails, that the credit of the United States will quic'klv be eftabiifhed on the firm ioundation of an effe&ual provision for the cxifting debt. The influence, which this has had at home, is wit neflcd by the rapid increase, that has taken place in the market value of the public fecuritics. From January to November thev rofc thirty-three and a third per cent, and from that period to t.nstime they ha\e risen fifty per cent. more. And the intelli gence from abroad announces effects proportiouablv favorabJe to our national credit and confcquence. It cannot but merit particular attention, that among ourfeives the molt enlightened friends of good government are thofc, whose expc&ations are the highest. To juftify and preserve their confidence ; to promote the encrea jing refpc&ability of the American name ; to answer the calls of justice ; to restore landed property to its due value; to furnilh new refo irscs both to agriculture and commerce ; to cemcnt more REPORT closely the union of the States ; to add to their security againfl fo reign attack ; to establish public order on the basis of an upright and liberal policy. Thele are the great and invaluable ends to be secured, by a proper and adequate provision, attheprcfent period, for the lupport of public credit. To this provision we are invited, not only by the general confe derations, which have been noticed, but by others of a more par ticular nature. It will procure to every class of the community lome important advantages, and remove some no less important disadvantages. 1 he advantage to the public creditors from the increased value of that part of their property v> hich constitutes the public debt, needs no explanation. But there is a confcquence of this, less obvious, though not 1 ess true, in which every other citizen isinterefted. It is a well known fa6l, that in countries in which the national debt is properly fund ed, and an object of ellablifhed confidence, it answers molt of the purposes ot money. Transfers of stock or public debt are there equivalent to payments in specie; or in other words, stock in the principal tranfattions of bnfinefs, paiifes current as specie. The ame thing would in all probability happen here, under the like circumstances. The benefits of this are various and obvious. First. Trade is extended by it; be «. fe there is a larger capi tal to carry it on, and the merchant can at the fame time, afford to trade for {mailer profits ; as his stock, which, when unemploy ed, brings him in an interest from the government, serves him al io as money, when he has a call for it in his commercial operations. Secondly. Agriculture andmanufaftures arealfo promoted by it : For the like reason, that more capital can be commanded to be employed in both ; and because the merchant, whose enter prize in foreign trade, gives to them activity and extension, has greater means for encerprize. , Thirdly. The interest of money will be lowered by it ■ for ' 1,,'i 5 ,1? r wa r 3 , ratio ' to 'he quantity of money, and to the 11 1 Circulation. This cireumftance will enable both the public a_nd individuals to borrow on easier and cheaper terms. And from the combination of these effects, additional aids will be turnilhed to labor, to industry, and to arts of every kind. But these good cffefls of a public debt are only to be looked /?///, . Cn ' bc ,', n ? wcll fundcd - " has squired an adequate and ft le value. Till then, it has rather a contrary tendency. The fluctuation and insecurity incident to itiu an unfunded state, rcn- : der it a meer commodity, and a precarious one. As fu*h, beimr I only an object ofoccafional and particular speculation, all the mo nev applied to it is so much diverted from the more ufeful chan c.lrcu'® t,on i for which the thingitfelf affords no fubft.tute • ',n ,a ,"< onefenous incdmenience of an unfunded debt is that it contributes to the scarcity of money. • th ™' S f'n l,na,on whic , h hasb little if at all attended to, is of the greatest moment. It invtfyes a question immediately inter this-Wh;(Hy^ rt kr h 7?.^f mn " y 5 Wh ' Ch "no other"han • i n? n? r P debt, t>y a provision for it on true nrin ft ""dcred a fahflitute For money ;or by will wound 'tVs ° r y ,' ng P r ? v j dcd for such a manner fa Wn P"«<;,plcs, and destroy confidence, it fiial) be uttered to as it is, a pernicious drain of our ca(h from the channels of productive industry. The effefl, which the funding of the public debt on rirrht principles, would have upon landed property, is one of the clr cumflances attending such an arrangement, which has been least ad\ertcd to, though it deserves the mot particular attention The famhv f° f , tHdt f P/ Ci "° f P ro P c,t Y " a f'ous ca! . : J hc v , aluc of cultivated lands, in most of the states nas fallen since the revolution from 2* to so oer »rnf T r* "theft south, the decrease „ ftil, Indeed ff the representations, continually received from that quarter, mav credited, lands there will command no price, which mav not be deemed an almost total facrifice. y UOt This decrease, in thevalift of lands, ought, in a great measure orod aU " l ° the f« rc, ty °f money.—lConfequently produces an augmentation of the monied capital of the country must have a proportional effea in raifmg that value The benefi' by the d moft y d 0f f fUndCd dcbt ' " thiS -V*, "» been mlnSd tu decisive experience in Great Britain. I he proprietors of lands would not only feel the benefit of this mcreafe Jn the value of their property and of a and better sale, when they had occnfion to fell ; but the neceffifv woiw s WO |? ld be " fcl [ fireat,y dlm,n,nicd - As the fame cause would contribute to tht facility of loans, there is reafoiT to h! lieve, that such of them as are indebted would be ahle u 'hat resource, to fatisfy their more thro " Sh , howev " to be cxpefted, that the advantages de b? instant yto r ' [ r ° m fund,n S of the P"blic debts would instantaneous. It might require some time to bring the value of stock tons natural level, and ,o attach to it that fixed confi dence, which is necessary to its quality as money. Yet the late rapid rife ofthe public fecunties encourages an expefiauon that the progress of stock to the defireable point, will be much mnr. peditious than could have been forefeen. And as in the mrs" time it will be encreafing in value, there is room !- TT that it will, from the outset, answer many of the ouroof« E' Umplat'on. Paiticularly it seems to be probable, that fromclel ditors, who are not thcmfelves oeceflitous, it will early meet with ready reception in payment of,debts, at its current price Having now taken a concise of the inducements to'a oro per provision for the public debt, the next enquiry which prelbml itfelf is, what ought to be the nature of such a provision > Th I requires some preliminary discussions. -Inn It is agreed on all hands, that that part of the debt which h» been contrasted abroad, and is denominated the foreT.' det ought to be provided for, according to the precise term. „f !i comrafts relating to it. The d.fcu'ffions! wlT.ch can arTe ° or t' Bt h a ' h VC k"" ClTcntia "y to'he domestic par't of "" ted W u" C "" traaed at borne. It is to be r^ret parl. ton t"e other.' C of sentiment on^thi; rvlart of'T? ™ h d(hrea " for the opinions of eve ry part of th; community, not to have observed one whirfc k, more than once, made its appearance in the n.iKlir ' J more than the cost to them! a"d tte iM.S T'7 n ° ° f m3king S ° od to the 'Xt borough necessity, parted with hi, property at'fo gJea't aTofs" bv obliging him to contribute to the profit of the r,? r t had speculated on his distresses. P C perfon ' who The Secretary, after the most mature reflection on the c this argument, is induced to reieft the doftrinp i* nc 'P rceof L f ybe^/" C in a the ,hcmark «> and ffihe buyef Every buyer therefore stands e.xaftly in the place of the&llcr- ' -332- has the fame l ight with him to the identical sum expressed in feeuritv, and having acquired that right, by fair purchafc and ■■ conformity to the original agreement and lutenticin of the'gov rr" ment, his claim cannot be disputed, without manifelt injufti That he is to be considered as a fair purchaser, results frn ' this : Whatever necessity the feller may have been under, was o " cafioned by the government, in not making a proper tor its debts. The buyer had no agency in it, and therefore ought not to fuller. He is not even chargeable with having takti an undue advantage. He paid what the commodity was worth the market, and took the nlks of rcimburlVment upon hirrifelt He of course gave a Mft equivalent, and ought to reap the benefit ol hii hazard; a hazard which was far from inconliderablc aid which, perh ps, turned on little less than a revolution in TO 'v-, ! inent. 6 That the cafe of those, who parted with their fee unties f lo necefity, is a hard one, cannot be denied. But whatever c m plaint ot injury, or claim of redress, they may have, refpe&s tbe government folt ly. They have not only nothing to obinft to th persons who relieved their neceflities, by giving them the Curie - price of their property, but they are even under an implied con dition t) contribute to the reimbursement of those pej sons Th knew, that by the terms of the contra& with themfclves the pubs licwcr; bound to to pay to those, to whom they should conveJ their title, the lums stipulated to be paid to them ; and that citizens of the United States, they were to bear thei'r proportion of the contribution for that purpose. This, by the a£t of alfi mmrnr they tacitly engage to do; and if they had an option, thev could not, with intregity or good faith, refufe to do it, without th. consent of those to whom they fold. [TO BE continued.J ["' have already given a fummaryJketth of the foregoing Article lui iu importance in a political view, its intnnfc excellence as a comLl and the immutability of tie principles it contains, render it \, u proper that it should form part of the contents of,his PaZW? more especially as the SubfcriJ>crs m generalprcferve it f or bindm, volumes.J J "'o in PROGRESS OF MANUFACTURES. SALE M, January 12. A correfpondentfays, There is an evident pre ference given by people in general to such Home" Manufactures as have any considerable decree of Rove • T ! ,e j Ca u ° f thC BEVE RLY CORDU ROYS is already become very common ; and the lale of them, indifferent parts of the State has been much more considerable than could been expedled, in tl.is infant stage of the manu facture, when it cannot be supposed to have at tained to that degree of perfection which it will derive from longer experience. Our country brethren, ,t is said, are determined to make use of this manufadtuie ,n preference to European from the consideration that theincreafe of manu' iactures among us, will increase the demand'and enhance the value of the produce of their lands The lame principle of felf interest will doubtedly induce our mechanics and laborers to do the fame, as every branch of manufactures re quires the aid of many other branches It is like the hand raising food to the montli, from which it afterwards receives strength and vigor ADVERTISEMENT. XTOTICE 1S hereby given to all the Creditors of Thomas Eaton, William Pells, Ta. bez Sayrs, Anthony Sayrs, and Gforge \\ elch, Insolvent Debtors, now confined in the common goal of Newark, in the county ofEfl'ex, and State of New-Jersey, that they arerequefted to appear on Monday the Twenty Second Day of February next, at Nine o'Clock in the forenoon of said day, at the Court House in Newarkafore fiitd, before the Judges of the Inferior Court, and /hew cause if any there be, why an affignmentof the above Insolvent Debtor's Estates should not be made, and they the Insolvents be discharged a greeable to law. b Thomas Eaton, William Pells, Jacob Sayrs, v „ . —, Anthony Sayrs, George Welch. Newark, 18th January, 1790. w4 t WILLIAM TAYLOR, Has for Sale, at his EAST-INDIA GOODS STORE, No. 4, Burling-Slip, Aflbrtment of EAST-INDIA GOODS. ROntr ivA 1 " 0 "? W '" ch are thc following Articles : BOOK Mufiins 8-4 6-4 5 - 4 || HUMHUMS, Jackonet do. || Long Cloths, Hankerchiefs.of various kinds,|| CalTas _ intzes, || Seerfuckerj, Gln ghams, || Boglapores. A Variety of handsome painted MUSLINS. With many other Articles, which will be fold by the Piece or . , c . low for ca(h. And a pair large handsome Cotton COUN- I i-KPANES, much warmer than Blankets January 9, 1790. r BOSTON STAGE. week till the > nuar y the fir( l '<> go twicer to firft v L an thrce tlmes a wcck from firft May Houle, in Hartford at Frederick Bull's, Coffee House fvcn'honHi? m ,t n f al : c " o , w l ,"ga? e <i as Conductors, who have g.ven bonds for the faithful discharge of their trull. January, 1790. LEVI PEASE. r , Ti' Bo J lon ' Albany, and Philadelphia Stages now tut ui unces Tavern, Cortlandt-Street,where pajfengers will please to apply. Published by JOHN FENNO, No. 9, Maiden ' aCirtheo f«vS°~M*rkst, New-York,—[34al.pr.at.]
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