HAMILTON TO SUPERVISORS OF BOSTON
Treasury Department, July 27, 1791.
Gentlemen:
A temporary absence from the seat of government has delayed an answer to your letter of the 14th inst.
It is an established rule at the treasury not to disclose the amount of the stock which stands to the credit of any person on the public books to any but the proprietor himself, or his regular representative; and the reasons extend, of course, to the respective loan offices.
One of those reasons is, that as property in the public funds constitutes an usual and a considerable portion of mercantile capital, wherever public credit is well supported, the permitting an inspection into the stock account of individuals to others than the parties respectively interested, would have a tendency to lay open the affairs and operations of merchants more than is consistent with the spirit of trade. Indeed, not only merchants, but other classes of citizens, may often have very fair and valid reasons for being disinclined to such an inspection; and it may be even conceived that it would not at all times be expedient to allow access to the secret emissaries of a foreign power to discover the quantum of interest which its own citizens might have in the funds of a nation.
In thus assigning some of the reasons which have given occasion to the rule that has been mentioned, I yield to a desire of satisfying the Board that it is not unsupported by considerations of weight, and that a relaxation of it, in compliance with their request, could not with propriety be acceded to on my part.
At the same time, I feel myself called upon by the occasion to express an opinion that every thing in the nature of a direct tax on property in the funds of the United States is contrary to the true principles of public credit, and tends to disparage the value of the public stock. If any law of the State of Massachusetts, therefore, gives sanction to such a tax, it is presumed that it must have been passed without an advertence to this important idea; and it is not doubted that in the execution of it there will be all the care and moderation which the delicacy of the operation requires. It is desirable on every account that no occasion should be given to a discussion concerning the regularity of the proceeding.
LOANS
Communicated to the House of Representatives, February 7, 1792.
Treasury Department, January 23, 1792.
Pursuant to the order of the House of Representatives of the first of November, 1791, directing the Secretary of the Treasury “to report to the House the amount of the subscriptions to the loans proposed by the act making provision for the public debt, as well in the debts of the respective States, as in the domestic debt of the United States, and of the parts which remain unsubscribed, together with such measures as are, in his opinion, expedient to be taken on the subject,” the said Secretary respectfully submits the following report:
| 1. The whole amount of the domestic debt of the United States, principal and interest, which has been subscribed to the loan proposed concerning that debt, by the act entitled “An act making provision for the debt of the United States,” according to the statement herewith transmitted, marked A, and subject to the observations accompanying that statement, is . . . . . . | $31,797,481 22 |
| Which, pursuant to the terms of that act, has been converted into stock bearing an immediate interest of six per cent. per annum . . . . | $14,177,450 43 |
| Stock bearing the like interest from the first of January, 1801 . . . | 7,088,727 79 |
| Stock bearing an immediate interest of three per cent. per annum . . | 10,531,303 00 |
| Making, together . . | $31,797,481 22 |
| Of which there stands to the credit of the trustees of the sinking fund, in consequence of purchases of the public debt made under their direction, the sum of . . . . . . | $1,131,364 76 |
| The unsubscribed residue of the said debt, according to the statements herewith transmitted, marked B and C, and subject to the observations accompanying the statement C, appears to amount to . . . . . | $10,616,604 65 |
| Consisting of registered debt, principal and interest . . . . . | $6,795,815 26 |
| Unsubscribed stock on the books of the commissioners of loans for New Jersey, Pennsylvania, and Maryland, principal and interest . . . | 15,674 62 |
| Credits on the books of the treasury, for which no certificates have been issued, principal and interest . . | 107,648 63 |
| Outstanding or floating evidences of debt, estimated, per statement C, at . | 3,697,466 14 |
| Making, together . . | $10,616,604 65 |
Concerning which some further arrangement is necessary.
The greatest part of the registered debt, hitherto unsubscribed, is owned by citizens of foreign countries, most if not all of whom appear now disposed to embrace the terms held out by the act above mentioned; extensive orders having been received from those creditors to subscribe to the loan, after the time for receiving subscriptions had elapsed.
A considerable part of the outstanding or floating debt consists of loan-office certificates, issued between the first of September, 1777, and the first of March, 1778, bearing interest on the nominal sum. Many of the holders of this species of debt have come in upon the terms of this act, but others have hitherto declined it; alleging that the special nature of their contract gives a peculiarity to their case, and renders the commutation proposed not so fair an equivalent to them as in other instances. They also complain that the act has had, toward them, a compulsory aspect, by refusing the temporary payment of interest, unless they should exchange their old for new certificates, essentially varying the nature of their contract.
A resolution of Congress of the tenth of September, 1777, stipulates, in favor of this class of creditors, interest upon the nominal instead of the real principal of their debt, until that principal be discharged. This certainly renders their contract of a nature more beneficial than that of other creditors; but they are, at the same time, liable to be divested of the extra benefit it gives them by a payment of their specie dues; and it may be observed, that they have actually enjoyed, and by accepting the terms offered to them, were enabled to realize, advantages superior to other creditors. They have been
