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Government, by payment of the principal, and to receive the other third in lands in the western territory, at the rate of twenty cents per acre; or, to have the whole sum funded at an annuity or yearly interest of four per cent., irredeemable by any payment exceeding five dollars per annum, on account both of principal and interest, and to receive, as a compensation for the reduction of interest, fifteen dollars and eighty cents, payable in lands, as in the preceding case; or, to have sixty-six dollars and two-thirds of a dollar funded immediately, at an annuity or yearly interest of six per cent., irredeemable by any payment exceeding four dollars and two-thirds of a dollar per annum, on account both of principal and interest, and to have, at the end of ten years, twenty-six dollars and eighty-eight cents funded at the like interest and rate of redemption; or, to have an annuity, for the remainder of life, upon the contingency of fixing to a given age, not less distant than ten years, computing interest at four per cent.; or, to have an annuity, for the remainder of life, upon the contingency of the survivership of the youngest of two persons, computing interest in this case also at four per cent.

In addition to the foregoing loan, payable wholly in the debt, the Secretary would propose that one should be opened for ten millions of dollars, on the following plan:

That, for every hundred dollars subscribed, payable one half in specie, and the other half in debt, (as well principal as interest) the subscriber be entitled to an annuity or yearly interest of five per cent., irredeemable by any payment exceeding six dollars per annum, on account both of principal and interest. [The details of these various plans are then discussed at length.]

In order to keep up a due circulation of money, it will be expedient that the interest of the debt should be paid quarteryearly. . . .

The remaining part of the task to be performed is to take a view of the means of providing for the debt, according to the modification of it which is proposed. . . .

... to pay the interest of the foreign debt, and to pay four per cent. on the whole of the domestic debt, principal and interest, forming a new capital, will require a yearly income of $2,239,163,09 - the sum which, in the opinion of the Secretary, ought now to be provided, in addition to what the current service will require.

With regard to the instalments of the foreign debt, these, in the opinion of the Secretary, ought to be paid by new loans abroad. Could funds be conveniently spared from other exigencies, for paying them, the United States could illy bear the drain of cash, at the present juncture, which the measure would be likely to

occasion.

But to the sum which has been stated for payment of the interest, must be added a provision for the current service. This the Secretary estimates at six hundred thousand dollars, making, with the amount of the interest, two millions eight hundred and thirty-nine thousand one hundred and sixty-three dollars and nine cents.

This sum may, in the opinion of the Secretary, be obtained from the present duties on imports and tonnage, with the additions which, without any possible disadvantage, either to trade or agriculture, may be made on wines, spirits, (including those distilled within the United States) teas and coffee. [A discussion of this point, with a detailed statement of the proposed duties, follows.]

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No. 56. Proclamation of Neutrality

April 22, 1793

THE declaration of war made by France against Great Britain and Holland reached the United States early in April, 1793. Washington was at Mount Vernon. April 12 he addressed letters to the Secretaries of State and of the Treasury, "requesting their immediate attention to the question of privateering"; on the 17th he reached Philadelphia. On the following day Washington sent to the members of the cabinet a circular letter containing thirteen questions, framed by Hamilton, relative to the proper conduct of the United States in view of a European war. The members of the cabinet, with the Attorney-General, met on the 19th at Washington's house, and unanimously decided in favor of the issuance of a proclamation of neutrality. Randolph was directed to draw up the proclamation; on the 22d it was submitted to the President, approved, signed, and ordered to be published. The proclamation was communicated to Congress Dec. 3.

REFERENCES. - Text in Amer. State Papers, Foreign Relations, I., 140. Washington's letter to the cabinet, and the accompanying questions, are given in Sparks, Writings of Washington, X., 337, 533, 534. Jefferson's

account of the cabinet meeting at which the proclamation was discussed is in his Works (ed. 1854), IX., 142, 143; for his own views on the subject, ib., IV., 17-20, 29-31. For the controversy between Hamilton and Madison, under the names of "Pacificus" and "Helvidius," see Hamilton's Works ed. 1851), VII., 76-117, and Madison's Writings (ed. 1865), I., 611–654.

WHEREAS it appears that a state of war exists between Austria, Prussia, Sardinia, Great Britain, and the United Netherlands, of the one part, and France on the other; and the duty and interest of the United States require, that they should with sincerity and good faith adopt and pursue a conduct friendly and impartial toward the belligerent Powers:

I have therefore thought fit by these presents to declare the disposition of the United States to observe the conduct aforesaid towards those Powers respectively; and to exhort and warn the citizens of the United States carefully to avoid all acts and proceedings whatsoever, which may in any manner tend to contravene such disposition.

And I do hereby also make known, that whosoever of the citizens of the United States shall render himself liable to punishment or forfeiture under the law of nations, by committing, aiding, or abetting hostilities against any of the said Powers, or by carrying to any of them those articles which are deemed contraband by the modern usage of nations, will not receive the protection of the United States, against such punishment or forfeiture; and further, that I have given instructions to those officers, to whom it belongs, to cause prosecutions to be instituted against all persons, who shall, within the cognizance of the courts of the United States, violate the law of nations, with respect to the Powers at war, or any of them.

...

GEO. WASHINGTON.

No. 57. Treaty with Great Britain

November 19, 1794

THE non-observance by Great Britain of the provisions of the treaty of 1783 in regard to the carrying away of slaves and the withdrawal of troops led to extended but fruitless diplomatic correspondence. In the autumn of 1793 relations between the two countries were further strained by the admiralty

orders for the seizure of neutral vessels laden with provisions destined for French ports. April 16, 1794, Washington nominated John Jay, chief justice of the Supreme Court, as envoy extraordinary to negotiate with Great Britain. By a vote of 18 to 8 the nomination was confirmed. Jay reached London June 15, and Nov. 19 the treaty was concluded. The treaty was submitted to the Senate, in special session, June 8, 1795; on the 24th ratification was advised, with a special reservation as to the twelfth article. An act of May 8, 1796, made appropriations for carrying the treaty into effect.

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REFERENCES. - Text in U. S. Stat. at Large, VIII., 116–129. Jay's instructions and the diplomatic correspondence are in Amer. State Papers, Foreign Relations, I., 472-520. The proceedings of the Senate are in the Annals, 3d Cong., 854-868; discussions in the House are in the Annals, 4th Cong., 1st Sess., 426-783, and in Benton's Abridgment, I., 639-754. Washington's message refusing compliance with the request of the House for papers relating to the treaty is in Amer. State Papers (Wait's ed., 1817), II., 102–105. For Hamilton's objections to the treaty when first made known, see Gibbs's Administrations of Washington and Adams, I., 223, 224; for his later views, over names of "Horatius" and "Camillus, see his Works (ed. 1851), VII., 169-528. See also Works of Fisher Ames (ed. 1809), 58-93, speech on the treaty; Wharton's Digest of Intern. Law (ed. 1887), II., 161–163; and ib., II., 158, 159, for references to judicial decisions involving the treaty.

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There shall be a firm, inviolable and universal peace, and a true and sincere friendship between his Britannic Majesty, his heirs and successors, and the United States of America; and between their respective countries, territories, cities, towns and people of every degree, without exception of persons or places.

ARTICLE II.

His Majesty will withdraw all his troops and garrisons from all posts and places within the boundary lines assigned by the treaty of peace to the United States. This evacuation shall take place on or before . . . [June 1, 1796,] . . . : The United States in the mean time at their discretion, extending their settlements to any part within the said boundary line, except within the precincts or jurisdiction of any of the said posts. All settlers and traders, within the precincts or jurisdiction of the said posts, shall continue to enjoy, unmolested, all their property of every kind, and shall be protected therein. They shall be at full lib

erty to remain there, or to remove with all or any part of their effects; and it shall also be free to them to sell their lands, houses, or effects, or to retain the property thereof, at their discretion; such of them as shall continue to reside within the said boundary lines, shall not be compelled to become citizens of the United States, or to take any oath of allegiance to the government thereof; but they shall be at full liberty so to do if they think proper, and they shall make and declare their election within one year after the evacuation aforesaid. And all persons who shall continue there after the expiration of the said year, without having declared their intention of remaining subjects of his Britannic Majesty, shall be considered as having elected to become citizens of the United States.

ARTICLE III.1

It is agreed that it shall at all times be free to his Majesty's subjects, and to the citizens of the United States, and also to the Indians dwelling on either side of the said boundary line, freely to pass and repass by land or inland navigation, into the respective territories and countries of the two parties, on the continent of America (the country within the limits of the Hudson's bay Company only excepted) and to navigate all the lakes, rivers and waters thereof, and freely to carry on trade and commerce with each other. But it is understood, that this article does not extend to the admission of vessels of the United States into the sea-ports, harbours, bays, or creeks of his Majesty's said territories; nor into such parts of the rivers in his Majesty's said territories as are between the mouth thereof, and the highest port of entry from the sea, except in small vessels trading bona fide between Montreal and Quebec, under such regulations as shall be established to prevent the possibility of any frauds in this respect. Nor to the admission of British vessels from the sea into the rivers of the United States, beyond the highest ports of entry for foreign vessels from the sea. The river Mississippi shall, however, according to the treaty of peace, be entirely open to both parties; and it is further agreed, that all the ports and places on its eastern side, to whichsoever of the parties belonging,

1 See explanatory article, May 4, 1796: Treaties and Conventions (ed. 1889), 295, 296. ED.

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