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Suspension of Payment of certain Bills.
That the Emperor arbitrarily, as far as it appears, since no grounds for the act are assigned. took away from Eric Gladd 81,124.02 francs, of which sum he put into the French Treasury 14,000 frs., | and gave the other 67,124.02 to General Armstrong, to distribute among such claimants as he pleased. 2d. That Eric Gladd, for that portion of his claim which is left, and the other five claimants, for their claims, instead of receiving bills on the Treasury of the United States, as they were entitled by the Convention, are turned over to the French Treasury for payment. 3d. The whole sum received by General Armstrong, which was left free in his hands, has been given, as he himself states, to Joseph Russell, for the ship Fame; unless the sum which he has paid to John Holmes should prove not to be the claim of Maurice Giraud, for provisions, which was expressly named in Mr. Mollien's certificate stating this arrangement. This is supposed to be the same claim, because Mitchell's claim, which, like Giraud's, was particularly named in Mollien's certificate, was provided for by Mr. Armstrong; and, also, because Giraud's claim was founded on a contract with the agent de subsistances de Paris, en l'an IV. and Holmes's claim, made by Mr. Armstrong, was for provisions, as he himself The disposition, then, of the sum received by Mr. Armstrong, being 81,124.02 francs, was as follows:
Floréal, year 11, certifies to General Armstrong, Minister Plenipotentiary of the United States, that the undermentioned items form a part of claims liquidated and verified. in conformity with the dispositions of the said convention, and of the decisions of His Imperial Majesty; and that they have been paid in orders upon the United States, since the 10th July, 1807, on which day a statement was transmitted to General Armstrong, of the sums previously paid,
[Here follow the names of sundry persons, and the amount of the claims allowed in their favor. The two last on the list are the following:]
20. The Cashier General of the Public Treasury, 115,534.41.
21. The 81,124.02 francs, left, by the decision of His Majesty, to the disposition of General Armstrong, under condition that Messrs. Mitchell and Maurice Giraud shall no longer have a right to make any claims upon the French Government; this sum, chargeable upon the twenty millions, and for which Mr. Armstrong has announced, by his despatch of the 10th March instant, that he has drawn, in favor of Mr. Warden. 81,124.02.
[Here follows, a recapitulation of the sums which had been certified to Mr. Armstrong, and for which he had drawn bills, amounting, together, including the two above items, to twenty millions of francs. The certificate concludes as follows:]
Thus, the payment of the twenty millions, the object of the convention of the 10 Floréal, year 11, is entirely consummated, and this convention completely and definitively executed.
PUBLIC TREASURY, March 14, 1809.
WASHINGTON, 26th December, 1810. DEAR SIR; I am much obliged by your comThe merits of the claim of Joseph Russell, munication of the 24th instant, and hasten to above all others, are not shown any farther, than, present a statement, which will, I hope, have the as Mr. Armstrong states, that in making the effect of clearing away the obstructions which division, "he was guided, altogether, by the na- have arisen to the final settlement of my accounts, ture of the several claims, their extent, and the under the convention of 1803. In this, the chardegree to which they had been already satisfied." acter of Gladd's claim, and that of Maurice The above ideas appear to offer objections Giraud, which had not before been noticed with sufficient to prevent the settlement of Mr. Arm-sufficient distinctness, are shown to be, the one, a strong's accounts at the present time. The grounds upon which the whole arrangement was made with Mr. Mollien, in February and March, 1809, respecting the sum of 196,658.43 franes, are not perceived to arise out of the convention; and it deserves consideration, whether the bills for 115,534.41 francs, drawn in the name of the Cashier General of the Public Treasury, should be paid when they are presented here. May 22d, 1810.
MINISTRY OF THE PUBLIC TREASURY,
claim coming regularly under that provision of
Suspension of Payment of certain Bills.
On the day of there remained of the Louisiana fund, the sum of 196.658.43 francs. Appropriations had been made of a part of this sum, by the functionaries of both Governments, conjointly, which were as follows, viz:
A farther appropriation, by the French Council, had been made to Eric Gladd, of the sum of
2,768.32 11.626.39 3,132.01
- 162,248.04 This last appropriation was rejected by the American commission, aud the objections against it being sustained by me, the French Government was brought, after much discussion, to reduce it to one half of the sum originally allowed. This claim belonged (as I believed) to the French commercial house at Nantz, of Dobree and Sweige hauser; Gladd was but the captain, bringing the supplies on which it was founded, and never did appear, personally, as the claimant. The necessary effect of this reduction, was to add to the residuary fund the sum of 81,124.02 francs. When this decision was taken, sundry other claims were pending under the convention: these were, that of John Mitchell; that of Joseph Russell; and that of Maurice Giraud. The first and last of these had been rejected by the French Council, on the ground that they were claims not embraced by the convention; and the last, (that of Giraud) was rejectedby the functionaries of both Governments. These facts explain the nature of the conditions stated in the Emperor's decision, and, particularly, why (whatever may have been the wish of the French Government) I refused to give to the claim of Giraud any portion of the sum of 81,124.02 francs; this claim belonged to James Swan, who had already received two millions, and upwards, of the fund. To Mitchell, the fourteen thousand additional francs were given, because he proved, most satisfactorily, that the supplies, out of which his demand grew, were made by Anthony Butler, of Philadelphia, in his own right, and for his own benefit.
The bill to Holmes (which has been supposed to arise out of the claim of M. Giraud) had no connexion, whatever, with that claim, and was paid, in part, of a much larger one, made for provisions furnished at St. Domingo, and which passed one, or both, of the authorities recognised by the convention.
The bills to Russell were drawn to the amount of sixty-two thousand francs, for freight and demurrage of the ship Fame, the joint property of the said Russell and T. W. Francis, of Philadelphia, and on which nothing had been previously paid; of these, thirty-two thousand only have been delivered, for reasons formerly assigned in two letters, of different dates, to you. These circumstances do not present to me any deviation from the convention, or from the law made in consequence of it. When the Emperor put at
my disposition a moiety of the sum origina ly and wrongfully appropri ated to Eric Gladd, it was distinctly understood, that this moiety should be applied to the extinction of claims then pending against the French Government, and, of course, could only apply to those above-mentioned. The quantum of allowance to each, was the only thing submitted, as I conceived, to my discretion; a circumstance which, by no means, takes these cases out of the ordinary rules of proceeding, as, in many others, my opinions were equally decisive, and, indeed, were necessarily so, since the American commission determined nothing with regard to quantum.
With regard to the other branch of the arrangement, it must also be remarked, that, on receiving my bills for the sum of 115,534.41 francs, the French Treasury took upon itself to pay the claims specified on the first page, and which had otherwise continued to embarrass and retard a final settlement of the business. Between, therefore, granting specific bills in discharge of these claims, and granting one or more to the French Treasury, which covered all and insured a final settlement, I cannot suppose that there is a sufficient legal distinction to prevent my particular account from being closed. Should this opinion, however, be erroneous, I must request that these bills, granted to the Cashier General, may be stopped at the Treasury, and held over until some other mode be adopted, which shall entirely satisfy the letter of the law.
P. S. The bill of twenty-five thousand francs, retained from the appropriation to Russell, shall be sent to the Treasury. If I do not mistake, this bill has on it an endorsement by D. B. Warden, of contemporary date with itself, showing why it was withheld.
John Armstrong, Minister of the United States at Paris, in relation to claims on France under the Louisiana Convention, of the 30th of April, 1803, in account current with the United States.
To Treasury warrants, for amount of sundry warrants issued from the 6th of July, 1805, to the 5th of February, 1810, inclusive, in payment of bills drawn by him for debts due to the citizens of the United States by the Government of France, as admitted by said Government, under the Louisiana Convention of the 30th of April, 1803; including those issued in discharge of certain embargo claims, referred for payment to the Treasury, per certificate of the Register herewith $3,692,053 15
Profit and loss for this sum arising from fractions of cents, gained in calculation
2 24 3,692,055 69
By amount of claims on the Government of France, admitted by said Government as due to the citizens of the United States, and which, pursuant to the provisions of the Louisiana Convention of the 30th of April, 1803, were payable by bills drawn by the said Minister on the Treasury of the United States,
Loan of Eleven Millions of Dollars.
Equal, at 5 francs per dollar, to
19,609,839 63 $3,676,844 93 15,210 76 3,992,055 69
an abstract, E, is herewith transmitted. From these it appears that $6.118.900 were subscribed in those two days, viz: $1,190.000 by banks, and $1,928,900 by individuals. This last sum is greater than the aggregate of all the loans at six per cent. ever before obtained by this Government from individuals in the United States ;* and, considering the price of stocks and various obstacles which at this time have impeded the subscriptions, the amount is as great as might have been expected within so short a period. The unsubscribed residue will now be apportioned among the several places, according to the apparent demand in each, and subscriptions will be received, or stock sold, until the sums thus respectively apportioned shall have been disposed of.
It is confidently believed that the amount which remains unsubscribed for will thus be filled as early as the money will be wanted for the public service. In order, however, to prevent the possibility of disappointment, and to remove doubts and erroneous expectations, I beg leave to subThe evidence on which the above credit is admit the propriety of authorizing the issue of Treamitted, rests, principally, if not solely, on the lists sury notes, on the following principles, viz: of claims certified by the Minister of the French Treasury. This, on considering the terms of the convention, and the letter of the Secretary to Mr. Armstrong, dated September 4, 1809, is thought sufficient; and, indeed, is all that could probably be obtained, as the documents belonging to each case appear to remain in possession of the French Government.
N. B. The balance due the United States, as above, is the value of the francs, 81,124 02, drawn in favor of D. B. Warden, and which is suspended until the titles of the parties, to whom it is stated to have been paid over, are more satisfactorily explained and established.
AUDITOR'S OFFICE, September 1, 1810.
1. Not to exceed, in the whole, the amount which may ultimately not be subscribed to the loan; that is to say, that the amount received on account of the loan, and that of the Treasury notes, shall not, together, exceed eleven millions; which limits, therefore, the greatest possible amount of the Treasury notes to less than four millions nine hundred thousand dollars.
2. To bear an interest of five and two-fifths per cent. a year, equal to one and a half cent per day on a one hundred dollar note.
3. To become payable by the Treasury one year after the date of their respective issues.
4. To be, in the meanwhile, receivable in payment of all duties, taxes, or debts, due to the United States. I have the honor to be, &c. ALBERT GALLATIN. Hon. LANGDON CHEVES.
LOAN OF ELEVEN MILLIONS OF DOLLARS.
[Communicated to the House, May 18, 1812.]
Whereas, by an act of Congress, passed on the fourteenth day of March, in the year of our Lord. one thousand eight hundred and twelve, the President of the United States is authorized to borrow, on the credit of the United States, a sum not exceeding eleven millions of dollars, at an interest not exceeding six per centum per annum,
TREASURY DEPARTMENT, May 14, 1812. SIR: Subscriptions were opened on the first and second instant, to the loan of eleven millions of dollars, authorized by the act of 14th March last, in conformity with the enclosed notice, A. It was left optional with the banks which were disposed to subscribe, either to receive stock or The only two six per cent loans obtained from into loan the money by special contract. The en-dividuals in the United States by this Government, closed circular letters, B, C, D, show the instruc- are, 1st. On account of the loan of $5,000,000, autions transmitted, and the manner in which the thorized by the act of 31st of May, 1796, one-half of proposals were made to the several banks. It which stock was advertised for sale for several weeks, was thought most eligible not to limit, in any last, only $80,000 were sold at private sale. 2d. The without any offer being received, and of which, at place, the amount of subscriptions to any specific Navy six per cent. loan, authorized by the act of June sum; for which reason, the loan was kept open 30, 1798, which made the money subscribed applicaonly for two days, in order that the general re-ble, on the spot, to a favorite object, and left the mansult might be ascertained, and a reduction, if agement and application of the funds in the hands of necessary, be made. the subscribers. The amount of this stock issued, in the whole, was $711,700.
All the returns have now been received, and
Loan of Eleven Millions of Dollars.
payable quarter yearly, so, however, that no en-acting business at the said banks, for two days. gagement or contract shall be entered into, which If more than eleven millions of dollars, in the shall preclude the United States from reimburs- whole, shall be subscribed, the surplus shall be ing any sum or sums, thus borrowed, at any time deducted in proportion to the sums subscribed in after the expiration of twelve years from the first each place, respectively, by a reduction of the day of January, one thousand eight hundred and subscriptions exceeding four thousand dollars. thirteen: And, whereas, by the said act, so much 2. For every hundred dollars which may be of the funds constituting the annual appropriation subscribed, there shall be paid, at the time of subof eight millions of dollars, for the payment of scribing, the sum of twelve dollars and fifty cents. the principal and interest of the public debt of the and a like sum of twelve dollars and fifty cents United States. as may be wanted for that pur- on the fifteenth day of each of the ensuing months pose, after satisfying the sums necessary for the of June, July, August, September, October, Nopayment of the interest and such part of the prin- vember, and December, one thousand eight huncipal of said debt as the United States are now dred and twelve, respectively. Each subscriber. pledged annually to pay and reimburse, is pledged at the time of paying any of the above instaland appropriated for the payment of the interest, ments, after the first, may pay all or any number and for the reimbursement of the principal of the of subsequent instalments, and will be entitled to stock now to be created, and the faith of the Uni-receive interest, at the rate of six per centum per ted States is pledged to establish sufficient rev-annum, on the amount thus paid from the time enues for making up any deficiency that may of actual payment. hereafter take place in the funds now appropriated for paying the interest and principal as aforesaid: And, whereas, the President of the United States did. by an act or commission, under his hand, dated the thirtieth day of March, in the year one thousand eight hundred and twelve, authorize and empower the Secretary of the Treasury to borrow, on behalf of the United States, a sum not exceeding, in the whole, eleven millions of dollars, and to make the necessary contract for the same, pursuant to the act of Congress above recited:
Now, therefore, the undersigned Secretary of the Treasury, in pursuance of the act of Congress, and the authority from the President of the United States, above-mentioned, doth hereby, on behalf of the United States, contract and engage, in manner following, to wit:
3. On the failure of payment of any instalment of the sums subscribed according to the tenor of the second article, the next preceding instalment of twelve dollars and fifty cents, which shall have been paid for every hundred dollars subscribed, shall be forfeited to the United States.
4. If any subscriptions shall be reduced in consequence of a greater sum than eleven millions of dollars being subscribed, conformably to the first article, the amount of such reduction shall be forthwith returned to the subscribers from whom such reduction shall have been made.
5. Each subsequent instalment must be paid at the same bank at which original subscription was made, and where the first instalment was paid.
6. For such sums or number of shares of one hundred dollars, as may be subscribed, the Cash1. Books for receiving subscriptions to a loaniers of the respective banks, within twenty days of eleven millions of dollars, for the use of the United States, shall be opened on the first day of May next
At Portsmouth, New Hampshire, at the Union Bank.
At Salem, Massachusetts, at the Merchants' Bank.
At Boston, Massachusetts, at the State Bank, Union Bank, and Massachusetts Bank.
At Providence, Rhode Island, at the Roger Williams Bank.
after the time of subscribing, shall give certificates, stating the sums subscribed and payment made, and on which the payments of the subsequent instalments, when made, shall be respectively endorsed; which certificates shall be assignable, by endorsement and delivery of the parties, in whose favor they may be issued, until the completion of the payments required by the tenor of the second article.
7. After the completion of the payments aforesaid, the proprietors of the certificates of the CashAt Hartford, Connecticut, at the Bank of Hart-iers, on which such payments have been comford.
At the city of New York, at the Manhattan Company and Mechanics' Bank.
At Philadelphia, at the Bank of Pennsylvania, and Farmers and Mechanics' Bank.
At Baltimore, at the Bank of Baltimore and Commercial and Farmers' Bank.
At the City of Washington, at the office of the Bank of Columbia.
At Richmond, Virginia, at the Bank of Virginia.
At Charleston, South Carolina, at the State Bank, and Planters and Mechanics' Bank.
Which books shall continue open for receiving subscriptions during the ordinary hours of trans
pleted, on surrendering the same at the Loan office of the State in which the subscription and payments shall have been made, shall be entitled to receive from the Commissioner of Loans, certificates of funded capital stock, bearing an interest of six per centum per annum, from the time when the said instalments shall have been paid, respectively, and payable quarter yearly, at the several Loan offices, or at the Treasury of the United States, where the same may stand credited; which certificates of funded capital stock shall be issued in the sums of one hundred, four hundred, one thousand, four thousand, or ten thousand dollars, at the option of the proprietor, and shall be transferable by the creditors, or their at
Loan of Eleven Millions of Dollars.
torneys, duly constituted, at the Treasury and Loan offices, respectively, in the same manner as the present funded debt of the United States, and in pursuance of the rules which have been, or which may be, established, relative to the transfer of the said debt.
8. After the payment of the fifth instalment, such of the proprietors of the certificates of the Cashiers, of four hundred dollars and upwards, as may then be desirous of funding the same, may, on presenting them at the Loan office of the State in which the subscription and payments shall have been made, receive from the Commissioner of Loans, certificates of funded capital stock, of the description aforesaid, for the amount of the four first instalments, or one moiety of the sum expressed in the subscription certificates.
tude to receive all the subscriptions likely to be made at your bank, to the first page of which one of the copies of the contract or terms of the loan, herewith transmitted, signed by the Secretary of the Treasury, and sealed with the Treasury seal, is to be affixed. The subscribers will write, in words at length, against their names, the amount which they intend to subscribe: And, on the same lines, respectively, the eighth part of that sum, being the first instalment, is, as soon as paid, to be entered by your Cashier, in figures, in a column left for that purpose, at the right-hand side of each page. This entry will, it is presumed, be a sufficient receipt to the subscriber, until the Cashier's certificate, or scrip, shall be issued to him, which, according to the sixth article of the terms of the loan, will be within twenty days after the time of subscribing. Yet, if the parties, or any of them, should, at the time of subscribing, require receipts from the Cashier, they may be given in his name, -in any form you may prescribe, and to be returned when the abovementioned certificates or scrip shall be delivered. The whole amount paid at the time of subscription, is to be credited to a distinct account, bear│ing that designation, and not to be carried to the credit of the Treasurer of the United States before the expiration of twenty days, as above 10. So much of the funds, constituting the an-stated. This period has been taken, in order to nual appropriation of eight millions of dollars, forgive time for all the cashiers of the banks, where the payment of the principal and interest of the the subscriptions are received, to return to the public debt of the United States, as may be ne- Treasury an account of the sums subscribed, that cessary for the regular payment of the interest, and it may be thus ascertained whether more than for the reimbursement of the principal of the eleven millions, in the whole, shall have been stock to be created under this contract, together subscribed, and a reduction of the larger subscripwith the faith of the United States for its due ful- tions shall consequently become necessary, as filment, are hereby pledged, in pursuance of, and provided for in the first article of the terms of according to, the terms and conditions of the act the loan. of Congress herein before recited.
9. After the last day of December, in the year one thousand eight hundred and twenty-four, and after reasonable notice to the creditors, which shall be given by an advertisement in some public newspaper, printed at the seat of the Government of the United States, the said capital stock shall be redeemable at the pleasure of the United States, by the reimbursement of the whole sum which may, at that time, stand credited to any proprietor on the books of the Treasury, or of the Loan offices, respectively.
Given under my hand, and the seal of the Treasury of the United States, at Washington, this thirty-first day of March, one thousand eight hundred and twelve.
Immediately after the subscription is closed, on the second day of May, the Cashier is to transmit to the Secretary of the Treasury an account1. Of the total amount subscribed.
2. Of the portion of that amount subscribed in sums exceeding four thousand dollars, each.
3. A list of all the subscriptions exceeding four thousand dollars, each.
As soon as these accounts from all the Cash-' iers of banks where subscriptions are received TREASURY DEPARTMENT, April 7, 1812. shall reach the Treasury, it will be ascertained SIR: I take the liberty of enclosing to you whether any reductions of subscriptions will be copies of the contract for raising, by loan, eleven necessary, and this will be immediately communimillions of dollars, pursuant to an act of Congress,cated to the Cashiers, who will then, in case of repassed on the 14th day of March last. Presum-duction, repay the excess to the subscribers, credit ing that your institution would be disposed to the Treasurer of the United States for the resifacilitate this operation, it has been named as one due, and issue the subscription certificates, which, at which subscriptions to the loan would be re- together with forms for their entry and registry, ceived. I will thank you to apprize me imme-will, in the mean time, be transmitted from the diately if, from any cause, it should be incom- Treasury. patible with your views to accede to this arrangement.
As some of the banks may be disposed to become subscribers, provided the amount of their If the bank shall consent to receive the sub- subscription be deposited with themselves until scriptions in the manner proposed, it will be ne- drawn for, for public purposes, you will be pleased, cessary, in the first place, that a book, in which in case of any such subscription on the part of the subscribers may enter their names, and the a bank in your State, and in good credit, to enter sums to be loaned by them, should be provided. the same in a separate page of the subscription This will consist of a book of sufficient magni- I book, to consider the receipt of the Cashier of