to Intrude as 'iccaOj, as grofecutors into
the executive department, Gentlemen
had not yet declared. 1 lie events wouM
declare how agrec.ible it wn., to the peo
ple of America, I fiat the House of Re
prcfentativt:6 should attempt to contract
the Prclideiit in tlie free exercise of his
difcretioii in fei*£ling the proper inttiu
iiteritl o! executing the laws. 1 lie pro
secutors in their z-al hud forgot that it
was effeiitial to rierfonal feeurity and free
dom,that a per ton fhoilld not be condemned
without an opportunity of being lieaid m
his defence; no such opportunity had
been indulged the man, whose icputation
dearer to him as a man of honor, titan
life, was attacked. He was willing howe
vei, to proceed to the difcufiion ot the
qucllion before the committee ; and in
tegard to the tefolution immediately un
der confideratiou, and to those which
would fncceed in their order, as far as he
might take pa>t, he should only (late the
fatts in relation to the quellion immedi
ately under debate, and endeavour to
point out that relation. If these fails
should be established and those relations
underlined, he would run the venture to
predict, that the sensibility by which the
ingenious and intelligent Ameiican mind
is attached to the objedt of the prosecu
tion, from a confidence in his integrity
and talents, will be greatly increased.
The resolution immediately under con
fideiation, charges the Secretary with vi
olating the law of the '4th of Augult by
ill. Applying a portion of the princi
pal borowed under that a£l towards pay
ing the interest of it.
ad. By drawing part of the monies
into the United States, without .the in
ftruftionsof thePrefident.
Refpe&ing the I ft. particular, he le
quefted gentlemen to attend to a Ample
statement of the facts. Money was in
Europe applicable to purposes of appro
priation in America. This being imme
diately conne&ed with the 2d. paiticular
chargt-d in the refolutiori, ai.d it being
inftparably involved with other f acts re
lating to that particular, he would now
aflume it as a fact That money was in
Europe appropriated to the aid of the
finking fund, and which therefore might
be brought here, the real fcane of its>de-
Aination. It was also true that the mo
ney arising from our domestic ttfources
being destined to pay the interest on the
foreign loans, we had of course money
here destined to foreign purposes. To
introduce the exploded nonsense under
these cifcumftances of the ear-marks of
meney, seems the objedl of the charge,
which for no ufeful purpose would fub
jeft us to the rifle and expence of fending
the money to Europe and of bringing
the fame money from Europe here. What
did the Secretary ? He borrowed from
one fund, he repaid with the other. He
avoided all rifle and expence. He fully
executed the purposes of the government.
He did, in £a6l, what any prudent, ho
ne ft agent would have done for his prin
cipal, what every man of common sense
would have done for himfclf. Had he
pursued another course, had he tranfpoit
ed money from Europe to America and
from America to Euiope in the instance
before the committee, it might be said
with truth that he had given conclusive
evidence of a paltry genius, wholly un
worthy of the high itation in which he is
placed.
The next particular was that he had
drawn part of the money borrowed under
the ast of the 4th of August, into the U.
States, without the inftruftions of the
Picfident ?'
Should the truth of this charge be ad
mitted, it might be alked what authority
had the House of Representatives to in
terfere ? Was not this an ufurpa'tion ?
Were we now to go into a confederation
of the refpeftive fubjcfts afGgned the se
veral departments of government ? Or
was the House under the plausible pre
tence of purifying the executive, to usurp
the appropriate ajid most nectflary pow
ers of that department? To whom was
intruded the execution of the loan ? To
the Prcfideqt, not the House of Repre
sentatives. Who was to feleft the instru
ments of execution ? Who was, to remove
from office? Could the houfe,by any arti
cle of the constitution interfere in vemo
.val from office, but in the process of im
peachment, which is declared not to be an
obje£t of the picfeat prosecution ? He
.would not here reft the defence, though
the que (lions he had alked fuggelled id.as
worthy the confideratiou of those to whom
they were .\ddrefled, and of the public.
Before he proceeded to the mod imt
portantciicumiUncesrelatingtothischargr,
lie woukl take notice of the evidence «>n
which the gentlemen relied. It was rnerej
ly of a. presumptive nature—a prelumptU
on he said he would Itake his refutation
in believing wholly in Confident with the
character of the President or his Secreta
ry. Was it the character of the Presi
dent, to admit fubje£ts of valt magnitude,
committed to his management to be con
ducted without his knowledge, by his im
mcdiateandconfidential minitters? Would
he not expel from his confidence the min 1
who should dare thus to conduct.
On the other hand, is it poflible to sup
pose that the Secretary could have pre
sumed to have abused the confidence of
the man on whose pleasure his exiflence
absolutely depended ? It could not then
be supposed confident with the character
of either gentleman that any necefTary
information could be withholden—that
any important (lep would be taken by the
fubordinatt; officer, without iuftruClions
where.those inltrudtions wotild be necefTa
ry oi expedient ; and that should he fail
in that attention which the nature of his
relatiou, and the fubjedts under his ma
nagement required, it was a natural pre
emption, that the President would do
what was proper to be dor,e. Certain it
was that it was not fubjeflt to any consti
tutional controul of the House of
fentatives. '
He said, that by the confti'tution of the
Treasury department the general fupeiin
tendance of the finances was committed
to the Secretary. That by the ast of the
4th of Augult, 1790! which would be a
gain mentioned : The Piefident was au
thorised to caufeto be borrowed 12,000,000
it would be a question, whether, when
this money was borrowed, the general fu
perintendance of it was not in viitue of
the ast, conflicting the Treasury depart
ment committed to the Secretary. If this
was the true.conllruftion no inftruftions
would be necefiary to enable the Secreta
ry to make the appropriations pointed
out by law. This, however, not being
neceflary to be relied on, he mentioned
only cideniinally.
He observed, that the money to be
borrowed under that ast was solely appro
priated to the difch'arge of art ears and in
ftallinents, payingofFthe fote'igii debt.
He wilhed that the committee would be
pleased to notice as a fact to be-particu
arly remembered, that there was no re
ltriftions as to the time of borrowing ; on
ly that they (hould be advantageous to
the United States, and of this there was
no criterion; the only security of the pub
lic was the discretion of the President :
It would thetefore never be a question,
whether a loan made at 5 per cent interest,
and 4 per cent, premium was within the
authority' delegated.
. He said that it. had been denied that 3-
ny of the money borrowed in virtue of
this ast could be drawn into this country.
This was in his opinion wholly unfounded.
He afifed where were the words that con
tained this restraint ? He said, that all tjhf.
money borrowed might, confident with
the law have been drawn hither, iuvefted
in produce, and that produce been deli
vered in diicbarge of th? debt; and that
in fact a very large portion had within the
knowledge of every gentleman present
been applied to that purpose, and very,
advantageously to country'. He said
if the President ftiould believe it advanta
geous to the public he might not only
draw the money here for the purposes
mentioned, but fend it 'to China or to
Lapland.
He said, that by the ast of the 12th of
Augull, in the fame year, a further autho
rity was given to the President, to bor
row 2,000,000 of dollars, to be applied
to the purchase of the debt ; but in this
cafe the interest could not exceed 5 per
cent. Previous to the passing of this ast
our bankers had made a proviHtniaUo**
3,000,000 of florins. It was aflced whe
ther any part of this loan could be said to
be applicable to the purposes of the last
mentioned ast, or in other words for aid
ing the finking fund ? And was it drawn
here with the knowledge of the Prclident ?
A iimple statement of facts, he said, would
form the bell answers to both these quef-
tions.
It was, he said, stated by the Secretary
as early as thp 25th Aug. 1790, that this
provilional lrjpn was made, that it might
be at command i« the course of the then
322
year. That the expediency of its accept
ance, and the application of one thiiJ of
it to the purposes of the act of the 12th
of Auguit, was under the conlideiation of
the Prelident. At that time, then, which
was the earlielt pojlible moment, it was
known to the PreGdent that the loan was
made; it was known to the ligiflature
what would be the probable application
of it, and yet he laid it was now preten
ded that every body was kept 111 total ig
norance. This, he said, was not all, oil
the 28th of the fame Auguit the Pieti
dent authorised the fecretaty to cxecut
, the power of botrowing uniLr the autho
rity of both aits, and to the amount of
14,000,000 dollars, would it be said that
thi whole money was intended by the
Prelident to be applied to the foreign
debt ? This would be charging him with
an intention more ctiminal than had been
alledged againfl the Secretary ; for he
was not authorized so to apply more than
12,000,000. In the fame month the se
cretary latified the provilional loan of
3,000,000 of florins, and expiesfly decla
red it to be in virtue of the conjunct au
thority of the two loans.
This, he said, was not all. At the
opening of the next session, on the Bth
of December, 1790, and it was to be ob
served that the firft drawing of the mo
ney into this country commenced on the
15th of tliac month, the President in his
speech communicated the loan, and ex
pressly said, that it was made " in con
formity to the powers veiled in him by the
acts of the lalt session." Had not the le
gislature then the earliest possible informa
tion of the loan and of its intended appli
cation ? In the fame fpecch the President
informed the legislature, in relation to
this fubjeft, that the Secretary had his
direction to communicate such further
particulars as might be requisite for more
precise information. Afterwards, in the
fame session, the Secretary had given the
precise information which was directed by
the President; he ftatedthe terms of the
loan, which were at 5 percent, inter It ex
clusive of premium, &c. and said that
from thence a doubt had arisen, whether
it was within the meaning of the ast of
the 12th of Augult ; that in his opinion,
it was very expedient and highly import
ant to the general operations of the treasu
ry, that it should be deemed to be within
that act. That the residue beyond what
had been appliedto the forcigndebt might
be applied .to the purposes of that aft.—
In pursuance ot this information, the le
giflayire, to remove the doubts which had
been expreficd by the Secretary in,the said
session, pa! Ted an ast, declaring that that
loan " should be con (trued, and dbemed
to be within the true intent and meaning
of the ast for the reduction of the public
debt," and extended the operation of the
ast to any future loans which should be
made 011 the fame terms. He asked leave
to remind the committee of what he had
before dated, tljat there was no reftriftion
as to interelt ot piemium to be allowed
for loans made under the ast of the 4th
of August ; it would therefore, he said,
follow irrefutably, that the legislative in
terference was not only unneceflary, but
absurd, on the idea that ,no part of this
loan was to be applied to other purposes
than the foreign debt ; the words, too,
of the ast, rendered the Intention perfect
ly unequivocal and certain. Nor, he said,
did the whole proof reft in the docu
ments to which he had referred the con
sideration of the committee. That tiio
ney had been drawn into America arising
from foreign loans had been Hated to the
legislature at the commencement of their
next session after passing the last mention
ed act. This was by the Treasurer's ac
cbunt then reported to Congress, which
was explained and verified by the Comp
troller's report, to which he referred the
committee. The fame information had
from time to time been given by the
Treasurer, as money had been received
by him from this source. He concluded
,by requelting gentlemen to review the evi
dence he 4iad mentioned, and then, as
their minds should determine, pronounce
whether there was any foundation for fay
ing that no part of the tirft loan was appli
cable to the purposes of the ast of the 12th
of August, or that it was drawn here with
out the knowledge of the President? Was
there any reason on this evidence to which
gentlemen had hitherto confined them
selves for affirming the truth of either of
the propositions now imiOcdiately under
con si deration ?
[N. B. Ihe foregoing observations
of Mr. Sedgwick were interrupted m the
ccuifeof the delivery two or thtee t : in
by the leading of official document, «W|!
were called for, and by intervening 2
marks of other gentlemen who repeated
ly rose immediately after the rea.W ~f
those documents. To gl, e a m „, e
netted idea of the (cope „t hisa. R „ mem
the parts of Ins fpteeii ate co n >p,if c d
one (ketch.]
Mr. Giles remarked, that the Secrets,.
before the function of the law
was obtained.
Mr, Fitzfimons obfervtd, on the
charg' to ihe refoliition, that as the in.
tcrclt of tiie money borrowed in Europe
is payable w here borrowed, it was econo
mical in the Secretary to interctl
with monies there,which were to be draw,,
here, and teplace the sum by taking the
amotint from the funds here destined for
that payment. A financial operation of
this nature is fituple, and saves the trouble
of drawing with the one hand, and ttmit.
ting with the other. He conceived there
was no just foundation for the firft char™
Mr. Lawrance said, that when the re'
solutions calling for information from the
department were firft brought
forward, the public mind was impteffed
within idea, that there were monies un
accounted for ; this charge is now diopt
and it is honourable to the officer concern*
ed that after much probing, nothing i,
found to support it. The enquiry now is
whether a debt was paid out of this or
that fund. He did not admit the fact,
thkt it was paid out of any other monic,
than what law ftriftly warranted. He
went into a history of the business ftom i's
origin. He dated the nature and purpofts
of the loans. There was nothing to ore
vent the President, he said, to consolidate
the two loans ; provided such an arrange,
ment did not interfere with the purposes
intended by them. The President em.
ployed the Secretary to obtain the loans
under the joint authoiitv of both a&s, as
it was found that the object could belt be
carried into effect in such an arrangement.
The money thus borrowed, became fubjedt
to the apprbpriationsofboth acts, and not
exclusively for the payment of the foreign
debt. Then as part of that money was
fubjeft to be drawn here for the redemp
tion of the domestic debt, and the interest
of the loan was to be paid with domestic
funds, it wasperfeftly reafoaable to avoid
further drafts and remittances, to pay the
debt there with money there, and replace
it here with money already here. The fact
dated in the firft part of the refoliition is
by this plain (late of the cafe substantially
refuted, and appears altogether unfound
ed ; but if the fact is proved, what is im
plied ? no injury to the interests of the
community ; the intention of the legisla
ture has been in every point fulfilled. If
the Secretary had acted differently, he
would have been guilty of an absurdity,
and to blame for facrificing the public in
tt?reft and neglecting the spirit of a law,
for a strict and unprofitable observance of
its dead letter.
Mr. Giles said the tranfaftion alluded
to by the gentleman, to controvert tl e
fact laid ddwn in the firft part of the reso
lution before the committee was not im
material as they had endeavoured to (hew
it.' It was not merely a financial operati
on to avoid the neceflity of drawing and
remitting. The truth was, that the Se
cretary had drawn over near 3,000,000
of dollars. The President's authority
was limitted to 2,000,000.
Mr. Lawrance was of opinion, that if
the President, or his agent, had drawn
the whole amount of the money obtained
under both loans, he could not be said to
have gone beyond his authority. He was
authorized to borrow 12,000,000 to pay
the arrears on the foreign debt, and to
modify the whole. In the execution of
this trull he might have found it advifea
ble to draw to this country the whole of
that sum. It had been found advifeable
to draw for part, and to pay the French
by dipping produce to St. Domingo. If
the money expended so»- supplies to St.
Domingo is deducted, the balance will be
found less than 2,000,000.
The committee reported progress and
obtained leave to (it to-morrow.
['To hi* continued,. ]
FRIDAY, March I
The bill for extending the time for receiv
ing subscriptions to the loan oj the United
States, was read the third time and palled,
the subscriptions, according to this bill are to
be continued to the lafl day of fune 179*^*
A message from the Senate by Mr. Otis,
their Secretary, informed the House that the
Senate have agreed with ail" amendment to
the amendments ef the House to the bill fup
plenieutary to tbe a<st to provide more efiec