©f the SECRETARY of the TR E AS U R Y to the
HOUSE of REPRESENTATIVES.
Treasury Department, Jan. 9, 1790.
[continuation.]
IN addition to the foregoing loan* payable wholly in the
debt, the Secretary -would propose, that one should be opened
ior ten millions of dollars, on the following plan.
That for every hundred dollars fubferibed, payable one half in
specie, and the other half in debt (as well principal as interest) the
fubferiber be entitled to an annuity or yearly interest of live per
cent, irredeemable by any payment exceeding fix dollars per an
num, on account both of principal and interest.
The principles and operation of theie different plans may now
require explanation.
The hilt is simply a proposition for paying one third of the
debt in land, and funding the other two thirds, at the existing rate
of interest, and upon the fame terms of redemption, to which it is
at present fubjett.
Here is no conje&ure, no calculation of probabilities. The
creditor is offered the advantage of making his interest principal,
and he is asked to facilitate to the government an etfeftual provi
sion for his demands, by accepting a third part of them in land,
at a fair valuation.
Ihe general price, at which the woftern lands have been, here
tofore, fold, has been a dollar per acre in public securities; but
at the time the principal purchafcs were made, these securities
were worth, in the market, lefa than three (hillings in the pound.
The nominal price, therefore, would not be the proper standard,
under present circumstances, nor would the precise specie value
then given, be a just rule. Bccaufe, as the payments were to be
made by instalments, and the securities were, at the times of the
purchases, extremely low, the probability of a moderate rife must
be presumed to have been taken into the account. Twenty cents,
therefore, seem to bear an equitable proportion to the two con
siderations of value at the time, and likelihood of incrcafe.
It will be understood, that upon this plan, the public retains
the advantage of availing irfelf oi any fall in the market rate of in
terest, f r reducing that upon the debt, which is perfe&ly just, as
no present facrifice, either in the quantum of the principal, or in
the rate of interest, is required from the creditor.
The inducement to the measure is, the payment of one third of
the debt in land.
The second plan is grounded upon the supposition, that interest,
in five years, will fall to five per cent, in fifteen more, to four:
As the capital remains entire, but bearing an interest of four per
cent, only, compensation is to be made to the creditor, for the in
terest of two per cent, per annum for five years, and of one per
cent, per annum, for fifteen years, to commence at the distance of
five years. The present value of these two sums or annuities, com
puted according to the terms of the supposition, is, by ftrift calcu
lation, fifteen dollars and seven hundred and ninety-two thou
sandth parts of a dollar ; a fradlion less than the sum proposed.
The inducement to the measure here is, the redufclion of interest
to a rate, more within the compass of a convenient provision ; and
the payment of the compensation in lands.
The inducements to the individual are—the accommodation af
forded to the public—the high probability of acomplcteequivalent ;
the chance even of gain, should the rate of interest fall, either more
speedily or in a greater degree, than the calculation luppofes.
Should it fall to five per cent, sooner than five years; Ihoulu it fall
lower than five before the additional fifteen were expired ; or
should it tall below four, previous to the payment of the debt,
there would be, in each cafe, an absolute profit to the creditor.
As his capital will remain entire, the value of it will increase, with
every dccreafe of the rate of interest.
The third plan proceeds upon the like fuppofiiion of a fuccef
fivefall in the rate of interest. And upon that supposition offers
an equivalent to thecreditor. One hundred dollars, bearing an
interest of fix per cent, for five years; of five per cent, for fifteen
years, and thenceforth of four per cent, (these being the succes
sive rates of interest in the market) is
equal to a capital of - - 122 dollars, 510725 parts,
'earing an interest of four per cent, which, converted into a
capital, bearing a fixed rate of interest of fix per cent, is equal
v o 81 dollars, 6738166 parts.
The difference between (ixty-fix dollars and two thirds of a
dollar (the sum to be funded immediately) and this last sum
is - - 15 dollars, 0172 parts,
which at fix per cent, per annum, amounts at the end of ten
years, to 26 dollars, 8755 parts,
the sum to be funded at the expiration of that period.
It ought, however, to be acknowledged, that this calculation
does not make allowance for the principle of redemption, which
the plan itlelf includes ; upon which principle the equivalent in
a capital of fix per cent, would be by ftri& calculation,
But there arc two considerations which induce the Secretray to
think, that the one proposed would operate more equitably than
this : One is, that it may not be very early in the power of the
United States to avail themselves of the right of redemption re
lerved in the plan : The other is, that with regard to the part to
be funded at the end of ten years, the principle of redemption is
suspended during that time, andthefull interest at fix per cent,
goes 011 improving at the Jamc rate ; which for the UJI Jive years will
exceed the market rate of interest, according to the supposition.
The equivalent is regulated in this plan, by the circumstance of
fixing the rate of interest higher, than it is supposed it will con
tinue to be in the market; permitting only a gradual discharge of
the debt, in an eftablilhed proportion, and consequently pievent
ing advantage being taken of any decrease of interest below the
stipulated rate.
Thus the true value of eighty-one dollars and sixty-seven cents,
the capital proposed, considered as a perpetuity, and'bearing fix
per cent, interest, when the market rate of interest was five percent,
would be a small fraction more than ninety-eight dollars, when
it was four per cent, would be one hundred and twenty-two dol
lars and fifty-one cents. But the proposed capital being fubjett to
gradual redemption, it is evident, that its value, in each cafe, would
be fomewhnt less. Yet from this may be perceived, the manner
in which a less capital at a fixed rate of interest, becomes an equiv
alent for a greater capital, at a rate liable to variation and dimi-
nution,
It is prcfumable, that those creditors, who do not entertain a
favorable opinion of property in western lands, will give a pre
ference to tins iaft mode of modelling the debt. The Secretary
:s sincere in affirming, that, in his opinion, it will be likely to
prove, to the full as beneficial to the creditors, as a provision for
his debt upon its present terms.
It is not intended, in either cafe to oblige the government to
redeem, in the proportion fpecified, but to secure to it, the right of
doing so, to avoid the inconvenience of a perpetuity.
The fourth and fifth plans abandon the fuppofitioa which is the
bafisof the two preceding ones, and offer only four per cent,
throughout.
The reaion of this is, that the payment being deferred, there
will be an accumulation of compound intereft,in the intermediate
period against the public, which, -without a very provident ad
ininiltratHjn, would turn to its detriment. And the suspension of
the burthen would be too apt to beget a relaxation of efforts in the
meantime. The measure therefore, its objett being temporary
ccomrnodation, could only be advifeable on a moderata rate of
interest.
With regard to individuals, the inducement will be fufficicnt at
four per cent. There is no disposition of money, in private loans,
making allowance lor the usual delays and ca r ualties, wh e!\ would
be equally beneficial as a future proviiion.
REPORT
87 dollars, 50766 parts.
FOR THE GAZETTE OF THE UNITED STATES.
The following lines were aidrejfed to a Lady, a Jhorl time before her
marriage.
FROM the bright regions of Oberon's nations,
Come I, by Oberon's orders, to you ;
From evergreen meads, where in fantaftic fafhions,
Sport loving Fairies to meafurcs dance true.
Some ride on bees, some on bars, some on swallows,
Some ride on watery beams from the moon,
Some playing hide and feek> skulk in the hollows
Made for wrens nelh, and whittle her tune.
Puck am I call'd ;—Robin Goodfellow named :—
Seldom by fin-fully'd mortals'l'm seen ; •
Ne'er fmce for Shakefpcare the wild bees I tamed,
Dancing with Mab, 'fore his eyes on the green.
Oft did I seal up his senses in {lumbers,
Waiting his foul to the filver-fac'd moon,
Oft did I teach him to sing in sweet numbers,
Fairy love songs, to the nightingale's tunc.
Oft would I show him my love-ruling maftcr,
Oft on mv mistresses state would he peep ;
Then would I hurl him down fatter and tatter,
Shewing him wonders that lurk in the deep.
Such lovely maid is the sprite who salutes you :—
My royal matter, well plcas'd with your port
Hitherward comes, and much damsel it boots you,
Fitly to seem in the eyes of his court.
Soon as the moon thro' the sorest trees peeping—
Speeding on bats backs we'll merrily fly—
More fwift than fancy in dreams when you're flceping,
Air cutting swallows we'll glide thro' the iky.
Dancing wild carrols the mansion we'll circle,
While Henry seizes your heart-giving hand :
Mine (hall the tafX be to crown ye with myrtle,
Much favor'd mortals, belov'd by our band. D.
Extrad from the NEW YEAR'S WISH of the CARRIERS oj the
Maffachufctis Ccntincl.
IN '89, kind Heav'n be praif'd
You've seen TWELVE ample PILLARS raif'd :
Seen fi.v'd as Fate, beyond mutation,
The grand PALLADIUM of our nation :
Beheld Columbia's hope and star,
Her pride in Peace—her strength in JVar t
Leave Vernon's ever rural feat,
The ills of publick life to meet :
And seen the Solon of our age,
Again with publick cares engage.
FROM THE MASSACHUSETTS CENTINEL.
MR. CORE'S RESIGNATION.
Friday, Jan. 29.
The following letter from Christopher Gore,
Esq. one of the Representatives of Boston, to the
Hon. Speaker, was read.
SIR, Boflon, Jan. 29, 1 790.
THK last time I had the honor to address you,
on the floor ofthe House, I took the liberty
of declaring to you, and to the Hon. House, that
aftfr an examination of the Constitution of this
Commonwealth, I was of opinion, that the office
I had been honored with, from the President of
the United States, did not vacate my feat in the
Legislature. A question being then proposed to
the House, as I thought preparatory to a deter
mination, refpe<fting myfelf, I conceived it my
duty to declare my own sentiment—at the fame
time I retired, in expectation, that whether my
feat was vacated or not, would soon be judged by
the House.
The ninth article of the bill of Rights, declares,
That " all the inhabitants of this Commonwealth
" having such qualifications as they fliall establish
" by their frame of government, have an equal
" right to eledl officers, and to be elecfled for pub
" lie employments."
The offices, an appointment to which, and the
acceptance whereof, will 1 ender vacant a feat in
the House of Representatives are expressly named
in the Conltitution, and are offices under the go
vernment of the Commonwealth only.
My qualifications are the fame as when chosen,
and I cannot conceive that any conftrudlions of
the Conflitution can bring the office I hold under
the United States, within the difqualifications
pointed out in the Constitution. 1 fay this, on
the fuppolition that any man or aflembly of men
had authority to extend the dirqualifications by
conftrudlion, which I cannot admit, and which
must be coniidered inconsistent with the rights
of the people. These, Sir, are the grounds on
which I claim my right to a fear. On a further
investigation of the fubjedt, I am confirmed in the
opinion I declared to the House—and can fay,
with great truth, that I know no right to which I
have a more constitutional claim than to a feat in
the Hon. House of Representatives.
A fortnight has elapsed since I retired from the
House, and no determination has taken place de
claring my feat vacated. I mull therefore con
clude, that the House consider my right as une
quivocal—But, knowing, Sir, that the sentiments
of many Members are different from mine on this
fubjedi, and hearing that in some debates which
have been had in the House, they have been plea
sed to express their disapprobation of an officer
under the United States holding a feat in the
Legislature of this Commonwealth, convinced
that my feeble exertions for the public good,
would be rendered less efficient, I hold it an in
dispensable duty to that town which has honor
ed me with their confidence, to ask leave of the
Hon. House to resign my feat as a Representative
of the town of Boston.
At the fame time permit me to declare to yon,
Sir, and to the Hon. House, that, from the confil
-348-
dence which has been placed In me by the Govern •
merit of the Union, I feel conscious of new obli
gations to preserve the Conititution of this Com
monwealth, and the rights ofmy fellow citizens,
and sure I am, that no man can hold that Coniti
tution, and tliofe rights more Yacred than I now
do, and ever have considered them.
With great refped: for you, Sir, and for the
Hon. House, I am, Sir, your very obedient
Servant, * C. GORE.
Hon. David Cobb, Esq. Speaker, ire. ire.
INDEPENDENCE
THERE is a fort of Independence in condudl
and behavior which is afliimed many per
sons from motives, which strange as it may ap
pear, arise from the moll abjeift slavery to the
opinions of the world; left they should be thought
dependent on thole, whose counsels and opinions
it would conduce to their dignity and happinels
to follow, they lhamelefly fly in the face of every
moral and social obligation : Such conduct is
strikingly exemplified in the 71ft No. of the Wor
cester Speculator, which concludes thus
" The persuasions—the reproofs—and the
" commands of parents must be disregarded from
" similar motives. Chara«sters of this kind al
" ways remind me of the poor henpecked huiband
" who refufed to eat his supper because his wife
" told him it was ready—he had been in company
" from home, and had been rallied by his neigh
" bors for leting his wife wear the breeches, as
" they termed it—he returned with a determin
" edrefolution that no one should ever in future
" have any occasion to suggest the supremacy of
" his wife—lhe on his return like a kind and
" goodnatured wife, supposing him hungry, pre
" pared a bowl of milk, knowing him to be fond
" of it—crumbed the bread—set it upon the stool
" —and asked him to e3t his supper—he sprang
" like a mad man—swore he knew when to eat
" his supper without her direction—(he had wore
" the breeches, he said, long enough—and he
" would have her to know that he was master in
" his own house—and was not to be ordered about
" by her—kicked over the stool—broke his bowl
" —spilled the milk—and went tobedhalfftarv
" ed—but as independent as a prince.
PUBLIC SCHOOLS.
DOCTOR GOLDSMITH writing on the fub
jetft of free schools, among other observa
tions lias the following.
" It is hardly poflible to conceive the igno
rance of many of thole who take upon them the
important trust of education.—ls a man unfit for
any of tlieprofeffions,he finds his last resource in
commencing school-master.—Do any become
bankrupts in trade, they set up a boarding
school, and drive a trade this way,when all others
fail; nay, I have been told of butchers and bar
bers, who have turned school mailers, and more
furpridng still, made fortunes i*i their new pro
feflion.
Can we think ourselves in a country of civili
zed people—can it be conceived that we have a
regard for posterity, when persons wholly incom
petent, and with whom we ourselves would not
deign to aflociate, are permitted to take the charge
of the morals, genius, and health of those dear
little pledges, who may one day be the guardians
of the liberties of our country —and who may
serve as the honor and bulwark of their aged
parents ?—ls the care of our children below the
dignity of the State ? Of all profeffions in socie
ty, I do not know a more ufeful or more honor
able one than a Schoolmaster ; at the fame time I
do not fee any, more generally despised, or men
wliofe talents are so ill rewarded.—But while the
deserving ought to be rewarded, those who are
unqualified, should be difmifled from their em
ployment. In short, to make the business of
schoolmaster refpecflable, their salaries should be
adequate to inducing persons of abilities to enter
into the profeflion—when this is done, and proper
vigilance is exerted by the State, candidates of
this description will never be wanting."
ALL persons who have not accountcd for the expenditures of
public money and stores, received from Hugh Hughes,ei
ther in the capacity of CommiiTary of Military Stores, Affiftantand
Deputy Quarter Master General to the army of the United States,
or Deputy Quarter Master for the State of New-York, See. or De
puty Quarter Master to the Eafternand Main Army, are requested,
by the said Hughes, to exhibit their accounts and vouchers, pro
perly stated, as early as polTible, to the Auditor of the Treafory of
the United Starts, in the city of New-York, that a final settlement
of the fame may be made.
1 he Executors, or Administrators, to the estates of any of the
perions firft mentioned, will be pleased to attend to this notifica
tlon - January 1790.
NOTICE is hereby given to all the creditors of Thomas Ea
ton, William Pells, Jabez Sayrj, Anthony
Sayrs, and George Welch, Insolvent Debtors, now confi
ned in the common gaol of Newark, in the county of Eflex,
and State of New-Jersey, that they arc requested 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 New
ark aforefaid, before the judges of the Inferior Court, and shew
cause, if any there be, why an aflignment of the above insolvent
Debtor c Estates should not be made, and they, the Insolvents, be
discharged agreeable to law.
Thomas Eaton, William Pells, Jacob Sayrs.
Anthony Sayrs, George Welch.
Newark, 18ih Jan. 1790.