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H. of R.]

Proceedings.

[FEBRUARY, 1794 WEDNESDAY, February 26.

and, after some time spent therein, the Chairman A petition and representation of the pilots of reported that the Committee had had the said Ocracock bar, in the State of North Carolina, Report under consideration, but come to no resomasters of vessels, and merchants, owners of ves

lution thereupon. sels, trading in and out at the same, was presented

Ordered, That the Committee of the Whole to the House and read, suggesting various reasons House be discharged from the farther consideraagainst the erection of a light-house on Ocracock tion of the said Report; and that Mr. Boudinot, Island, and praying that the same may be erected Mr. GREENUP, and Mr. Bailey, be a committee to on Shell-Castle Island, in the harbor of Ocracock. report whether any, and what, alterations or

Ordered, That the said petition and representa- amendments are in their opinion necessary to the tion be referred to the Secretary of the Treasury, act“ to regulate the claims to Invalid Pensions." with instruction to examine the same, and report On a motion made and seconded, that the House his opinion thereupon to the House.

do come to the following resolutions: Resolved. That the committee appointed to in- Resolved, That provision ought to be made by law quire into the state of the Treasury Department, for the payment of the interest on the balances credited have power to send for persons, papers, and records. certain States, in the books of the Treasury, upon the

Ordered, That a committee be appointed to final settlement of the accounts between the United consider and report on the propriety of remitting States and the individual States. the duty on imported bar iron, in certain cases; Resolved, That the balances due from sundry of the and that Mr. Samuel Smith, Mr. Firzsimons, States, on the final settlement of the accounts between and Mr. SEDGWICK, be the said committee.

the individual States and the United States, ought to Resolved, That so much of the Speech of the be paid in -years, by annual instalments." PRESIDENT OF THE UNITED States, as respects Ordered, That the said motion be committed arms and military stores, magazines, and arsenals, to a Committee of the Whole House on Monday together with the return of arms and military next. stores, reported by the Secretary for the Depart- The House resolved itself into a Committee of ment of War, be referred to a special committee, the Whole House on the bill for the remission of and that they report whether any, or what, addi- certain duties; and, after some time spent therein, tion ought to be made to any or all of these ob- the Chairman reported that the Committee had jects; with an estimate of the expense of any had the said bill under consideration, and made no augmentation they may recommend.

amendment thereto. Ordered, That Mr. Fitzsimons, Mr. GOODAUE, And on the question that the said bill be enMr. JEREMIAH Wadsworth, Mr. FORREST, Mr. grossed, and read the third time, it passed in the MALBONE, Mr. Boudinot, Mr. PARKER, Mr. Ma- negative. And so the said bill was rejected. CON, Mr. Winn, Mr. Gilman, Mr. Watts, Mr. Mr. William Smith, from the committee to ORR, Mr. Baldwin, Mr. Israel Smith, Mr. Lati whom was referred the motion of the 19th instant, MER, and Mr. Dayton, be a committee pursuant “for the repeal of so much of the act 'to establish to the said resolution.

the Judicial Courts of the United States,' as is or The House resolved itself into a Committee of may be construed to require the attendance of the the Whole House on the bill for the relief of Lucy Marshal of each State, at each of the sessions of Clark; and, after some time spent therein, the the Supreme Court, and providing that, in future, Chairman reported that the Committee had had the said Court shall be attended during session by the said bill under consideration, and made no the Marshal of the District in which they sit, unamendment thereto.

less by special order the Court shall require the On a motion made and seconded, that the said same," made a report. Whereupon, bill be recommitted to a select committee, it passed Resolved, That it will be proper to pass a law in the negative.

repealing so much of the act" to establish the JuResolved, That the injunction of secrecy, im- dicial Courts of the United States," as is or may posed by the House in the case of the Letter from be construed to require the attendance of the Marthe Secretary of State to the British Minister, and shals of all the Districts at the Supreme Court, the answer thereto, communicated by Message and enacting that the said Court shall be attended, from the PRESIDENT on Monday last, be removed, during its session, by the Marshal of the District and that the said letters be considered as public. only in which the Court shall sit, unless the at

tendance of the Marshals of other Districts shall THURSDAY, February 27.

be required by special order of the Court.

The House then proceeded to consider the Mr. Sedgwick, from the committee appointed amendments reported by the Committee of the to report whether any, and what, sum may be ne- Whole House on the nineteenth instant, to the cessary to be loaned for the purpose of carrying on report of the committee appointed to take into the public service for the year one thousand seven consideration the act "to establish the Judicial hundred and ninety-four, 'made a report; which Courts of the United States," and report some prowas read, and ordered to be committed to a Com- vision in the case where any Judge of the Courts mittee of the Whole House to-morrow.

of the United States is, or may, by sickness, or The House resolved itself into a Committee of other disqualifying cause, be rendered incapable the Whole House on the Report of the Secretary of discharging the duties of his office; also, some of War, on the petition of William M'Hatton ; l further provision concerning bail, process, and

FEBRUARY, 1794.]
State of the Treasury.

(H. OF R. costs, in the Courts of the United States; and, whether any, and what, sum was necessary to be generally, to report such amendments to the said borrowed for the service of the current year. The act as they may judge necessary and Constitu- report states it to be expedient that the President tional; and the said amendments being severally should be authorized to borrow $1,000,000, if in twice read, were, on the question put thereupon, his opinion the same shall be necessary. The reagreed to by the House.

port was referred to a Committee of the Whole, Ordered, That a bill or bills be brought in, pur- and the House resolved itself into a Committee suant to the said report as amended, and to the pre- accordingly. ceding resolution, and that Mr. William Smith, The report being read, Mr. Sedgwick said it Mr. JEREMIAH Smith, Mr. Moore, Mr. Murray, was the duty of the select committee to state the Mr. THATCHER, Mr. Scort, and Mr. CHRISTIE, do several steps which had been taken in the progress prepare and bring in the same.

of their inquiry, and the facts which had come to Ordered, That there be a call of the House to their knowledge during the investigation, that the morrow, at twelve o'clock.

result which was expressed in their report might The House proceeded to consider the report of have its merits decided on by the Committee of the committee to whom was referred the petition the Whole. of Henry Hill. Whereupon,

He stated that, however inadequate the actual Ordered, That the said report be committed to receipts of the revenue might be to discharge all a Committee of the Whole House immediately. the demands made on the Government, there was

The House accordingly resolved itself into the in fact no deficiency in the funds appropriated to said committee; and, after some time spent there the discharge of those demands. The deficit was in, the Committee rose and reported progress. owing merely to the credit which, for the conve

The House proceeded to consider the report of nience and benefit of trade, was allowed to the the committee to whom was referred the petition merchants; and that, in fact, the bonded duties of Lieutenant Colonel Tousard. Whereupon, were more than equal to meet all the demands on

Resolved, That there be allowed to the said the Treasury: This credit, it would be rememLieutenant Colonel Tousard an equivalent for his bered, extended from four months to two years. pension for life, agreeably to the rule of commu- He next stated that, by the report now in the tation, as adopted by the United States, in lieu of possession of the Committee, that the deficiency the half pay to the officers of the late Army. at the end of the present quarter would amount to

Ordered, That a bill or bills be brought in, pur- $621.294 18. The select committee were not suant to the said resolution, and that Mr. SAMUEL fully acquainted with the Bank transactions in Smith, Mr. THATCHER, and Mr. LEARNED, do pre- relation to the Treasury, and were uncertain pare and bring in the same.

whether money deposited in Banks by Collectors

of revenue was considered as in the Treasury from FRIDAY, February 28.

the time of the deposite. He observed, that this Mr. TRUMBULL, from the committee appointed, doubt arose from considering the law constituting presented a bill to prohibit the carrying on the the Treasury Department, by which it appeared slave trade from the United States to any foreign that the Secretary's warrant was as well required place or country; which was read twice, and for paying money in, as for issuing it from the committed.

Treasury. It might therefore happen, if the Mr. Fitzsimons, from the committee appointed deposite money was not considered as in the

of the expense that will be requisite to place the $621,291' 18, might exist, while, in fact, there principal seaports and harbors of the United States might be at the disposal of Government a sufficient in a state of defence, made a report; which was

sum completely to answer every demand. read, and ordered to be committed to a Committee Mr. S. said that, contemplating the subject in of the Whole House on Monday next.

this view, the select committee had thought it The House resolved itself into a Committee of their duty to submit certain questions to the Sethe Whole House on the report of the committee cretary, which they had accordingly done; the appointed to prepare and report such Standing import of which was, " whether money collected Rules and Orders of proceeding as may be proper on account of the United States, in Banks, was to be observed in this House; and, after some time from the time of deposite considered as in the spent therein, the Committee rose and reported Treasury? Or, are any, and if any what, means progress.

necessary to subject money so deposited to the The House again resolved itself into a Com-control of the Treasurer ? And in the latter case mittee of the Whole House on the report of the who is from the time of such deposite until it Secretary of the Treasury, of the sums necessary passes into the Treasury, responsible to the United to be appropriated for the service of the year one States Is any money now so deposited capable thousand seven hundred and ninety-four; and, of being drawn into the Treasury? And, if any, after some time spent therein, the Committee rose is the probable amount such as to render a present and reported progress.

provision for a loan inexpedient or unnecesON THE STATE OF THE TREASURY.

Mr. S. then read the following Letter, addressed Mr. SEDGWICK called up a report of a select to him as Chairman of the select committee, from committee to whom it had been referred, to report the Secretary of the Treasury:

sary ?"

H. OF R.]

State of the Treasury.

[FEBRUARY, 1794

TREASURY DEPARTMENT, February 25, 1794. except from the proceeds of the revenue, which, as far Sir: The following are answers to the questions as known, are comprised in the statement before the stated in your Letter of the 22d instant, viz:

House of Representatives. So that there is no resource

but a loan which can supply the deficit of receipt in the Answer to question the first.

course of the present and succeeding quarters, compared “ All moneys collected on account of the United with the expenditure; without one, a failure in the States, and deposited in the Banks to the credit of the public payments is inevitable. Treasurer, are considered as in the Treasury from the “ If what has been said should not give the Com. time of the deposite. The steady course with regard to mittee the light they desire, it is imagined that personal the standing revenue is, that the money deposited in explanations would lead more fully to their object than Bank passes immediately to the credit of the Treasurer. the course of written interrogatories and answers, which

“ But it is necessary, to discharge the payers, that re- can only partially embrace the subject, and may proceipts of the Treasurer should be endorsed upon war-crastinate a right understanding of it. rants signed by the Secretary, countersigned by the “I am, sir, with esteem and regard, &c., Comptroller, and registered by the Register, which is

“ ALEX. HAMILTON. the course regularly observed.

“ THEODORE SEDGWICK, Esq., Answer to question the second.

Chairman of the Committee.“ After moneys are deposited in Banks to the credit of the Treasurer, they are in his control, though they the

business as transacted, in the manner stated in

After reading this Letter, Mr. S. observed, that may not legally be disbursed but upon warrants of the above description. If deposited without passing in the the Secretary's Letter, was the most beneficial first instance to the credit of the Treasurer, the means

possible for the United States, because it preused for placing them in his custody and disposal are vented any money, at any time collected for the Warrants of the like kind.

public, lying beyond the reach of the Government Answer to question the third.

and useless. He further observed, that gentlemen

would remember that it was necessary, not only “In respect to any moneys of the United States, des to provide for a deficiency which might exist at posited in Banks, but not passed to the credit of the the end of the current quarter, but also for that Treasurer , the Banks are considered as directly respon- next succeeding. That

, to enable the select comsible to the United States; in the case of deposites to the mittee to discharge the duty which they owed to credit of the Treasurer, they are responsible, in the first the House in this respect, it had been thought exinstance, to him, ultimately to the United States. Answer to question the fourth.

pedient to call on the Secretary. This they had

accordingly done; and had extended their inquiry “Only two cases are recollected, in which moneys of to that period to fulfil the object of their commisthe United States may be considered as having been de- sion. That the estimate resulting in their report posited in Bank without passing, in the first instance, was formed of the best materials they could colinto the account of the Treasurer. These relate, first, lect. He said that, in several particulars, it was to the proceeds of foreign bills sold for the Government probable that the estimate might not be justified and received by the Bank, (all accounts of which are now finally closed ;) second, to the sum of $200,000, that it was the duty of the Legislature to put the

by events. It ought, however, to be remembered, being the only sum now so deposited, which arises from the last loan had of the Bank. It is left (subject to the preservation of the public credit almost beyond eventual decision of the Legislature,) as an offset against the reach of the possibility of being injured. the second instalment of the two million loan from the

The first article, he mentioned, was the deficit Bank.

which would exist on the first of April, amounting, “The effect of the operation will be this: An interest as clearly reported to the House, to $621,294 18– of six per cent., payable to the Bank upon the instal- 1,000,000 forins were to be paid in Holland by the ment, will be extinguished from the 31st December last, first of July. The committee had agreed to estiby an interest of five per cent., payable to the Bank mate this at $400,000, though, according to the upon the sum borrowed of itself and left in deposite. present rate of exchange, it would amount to And it has been endeavored, thereby, to preserve con- about $40,000 more. Gentlemen would undoubtsistency and regularity in the arrangements of the Trea- edly perceive that it was for the public interest sury. The first instalment, by leaving in deposite an that this object should be provided for as early as equal sum of the proceeds of foreign bills, was consider possible, that advantage might be taken of the oced as effected on the 31st December, 1792, though there curring circumstances, so as to conduct the busiwas not power to consummate the payment till some months after. Hence, it becomes regular, that each suc quarter of the interest of the Public Debt was

ness most profitably for the United States. One ceeding instalment should be paid on the last of Decem- $700,000; one quarter of the Civil List was estiber of each year. The provisional measure, thus adopted, mated at $50,000. This he said would amount to was the only expedient in the power of the Treasury to somewhat more, owing to the increase of the reconcile, as far as practicaule, considerations relative to the public interest and credit, with legality of placedure. number of the members of the Legislature. The Neither the sum in deposite, on the one handf'nor the remaining item mentioned by him was the Army instalment payable to the Bank, on the other, is brought expenditures, estimated at $375,000. This item, into the probable state of cash lately presented to the he observed, might vary more from the estimate House of Representatives ; because they balance each than any of the preceding. It might rise considerother and leave the result the same.

ably above it, it might fall considerably below. “There are no existing sources from which moneys The conjecture would, however, be found probably can come into the Bank on account of the United States, I not far from the truth. The aggregate of these

FEBRUARY, 1794.]

State of the Treasury.

[H. OFR.

several items amounted to $2,146,294 18. To was executed. Mr. G. said he merely stated these satisfy this sum, it appeared, by returns in the Se-facts, believing the committee should be acquaintcretary's office, that there would fall due of duties' ed with them. on imports and tonnage, in the months of April, Mr. Sedgwick said, the facts mentioned by the May, and June, and of course in season to meet gentleman from Virginia (Mr. Giles] had apthe demands which may be made on the first of peared during the investigation of the committee, July, $448,802 22. There will also be received, and were truly stated. That he himself should in the same period, one quarter of the annual du have mentioned them, had he supposed they could ties on distilled spirits, amounting by estimate to have any influence in determining the question $100,000; which, added to the returned amount under consideration. That, when this question of the duties as before stated, of $448,802 22, was decided, he would bring forward a motion by makes an aggregate of $548,802 22. This sum, which the House should be officially possessed of deducted from the aggregate of the estimated de- a knowledge of those facts. At present, he would mands which may become necessary to be dis- only observe to the committee, that it was true charged, being as before stated $2,146,294 18, the contract between the Secretary and the Bank, would leave a balance to be provided for by loan in pursuance of the legal provision, was executed of $1,597,491 96.

in ‘June or July; that it was, by the contract, He observed, however, that there were two con- agreed that it should have a retrospective operasiderations which would considerably lessen this tion to the time of the commencement of the nebalance. These were, first, that there was a defi- gotiations of the Bank. It ought, however, to be ciency of returns of bonded duties; and, second, noticed, that by this means the United States the revenue of the present year, arising from im- were obliged to pay an interest of six per cent. on ports and tonnage, which would be in fact received the amount of their subscription for the time preprevious to the first day of July. These two arti- ceding the date of the contract, but they were for cles the Secretary had estimated at $600,000; this the same time interested in the profits of the Bank, he had founded on his experience on this subject. which, amounting to considerably more than six The committee had thought their report might per cent., the difference was a clear balance in result in round numbers, departing somewhat from favor of the public. It was also to be observed the Secretary's estimate, by reducing the $600,000 that, by paying the instalments in December, into $597,491 96, leaving, according to their report, stead of June or July, a debt due from the Goa balance of $1,000,000 to be provided for by loan. vernment, bearing an interest of six per cent., was

Mr. S. said, it was true that all the demands on exchanged for one bearing an interest of five per the Treasury might not be made at the precise cent., so that in both the instances mentioned by moment they became due. It was, indeed, pro- the gentleman, there was a clear and manifest bable that the money due to foreign officers in saving to the United States, particular might not; but he repeated that it was The report of the select committee was agreed the duty of the Legislature to put the public credit to and adopted by the House, and Mr. SEDGWICK, beyond the reach of injury; and that, by the re- Mr. Giles, and Mr. DEARBORN, were directed to port of the select committee, the authority to bor- report a bill conformably thereto. row was only to exist in the case of necessity. Mr. SEDGWICK then moved that the Secretary

Mr. Giles said, the Chairman of the select com- of the Treasury be directed to furnish the House mittee had made a fair and comprehensive state- with a copy of the contract made in pursuance of ment of the conduct of the committee, as far as he the eleventh section of the act for incorporating had gone; there were, however, some facts which the subscribers to the Bank of the United States; he had omitted, that he thought should be com- also, a copy of any opinion which may have been municated. He said that, in the course of the given by the Attorney General, relative to a concommittee's investigation, it had appeared that the struction of the contract; and that he inform the contract contemplated by the act for incorporating House of any provisional measures which may the Bank, had been dated. either in June or July. have been taken to discharge the second instalIt had, however, been agreed that it should have ment, due on the said loan. This motion was a retrospective effect, so as to interest the United agreed to. States in the Bank from the commencement of its He next moved, that a committee be appointed operations. He thought it also his duty to state to prepare and report a bill providing for the to the committee, though not in opposition to the second instalment, due on a loan made of the report, that it had been made a question whether Bank of the United States. This motion was also the payment of the instalments due to the Bank agreed to, and a committee, consisting of Mr. from the United States should be considered as SEDGWICK, Mr. W. Smith, and Mr. CadwALAfalling due at the time of the commencement of DER, accordingly appointed. its operations, or at the time of executing the contract. That this question had been referred to the

MONDAY, March 3. Attorney General, who had given an opinion in favor of the latter period. That the Secretary, A petition of the merchants, manufacturers of notwithstanding, had, in opposition to this opinion, iron, and ship-builders, in the city of Philadelphia made the first payment in December, very near and its vicinity, whose names are thereunto subthe time when the Bank commenced its opera- scribed, was presented to the House and read, tions, instead of June or July, when the contract I praying that so much of the impost laws of the H. OF R.]

Amendment to the Constitution.

[March, 1794,

United States as imposes a duty on the importa-making presents to the Creek and Cherokee Intion of bar iron, may be repealed.

dians, since the treaty made at New York; also, Ordered, That the said petition be referred to all expenses incurred, and sums of money expendMr. Samuel Smith, Mr. Fitzsimons, and Mr.ed, in making the said treaty. SEDGWICK, that they do examine the matter there- Ordered, That Mr. Carnes and Mr. Macon be of, and report the same, with their opinion there a committee to wait on the PRESIDENT, with the upon, to the House.

foregoing resolution. Mr. SEDGWICK, from the committee, presented The House resolved itself into a Committee of a bill authorizing a loan of one million of dollars; the Whole House on the report of the committee which was twice read, and committed.

to whom was referred the Message from the PreOrdered, That the report of the committee to SIDENT OF THE UNITED STATEs, of the 30th ulwhom was referred the Message from the Presi- timo, enclosing a copy of a Letter from the GoDENT OF THE UNITED States, of the 7th day of vernor of North Carolina, covering a resolution of January last, respecting the appointment of an the Legislature of that State; as, also, the petiofficer for the receiving, safe-keeping, and distri- tions of Thomas Person and others, proprietors of buting of public supplies, under the direction of lands in the Territory of the United States South the War Department, be committed to a Commit- of the river Ohio, and of the Trustees of the Unitee of the Whole House on Thursday next. versity of North Carolina; and, after some time

Mr, Tracy, from the committee appointed, pre- spent therein, the Committee rose and reported sented a bill to establish the Post Office and Post progress. Roads within the United States; which was twice read and committed. The following Message was received from the

TUESDAY, March 4. PRESIDENT OF THE UNITED States:

The House resolved itself into a Committee of Gentlemen of the Senate, and

the Whole House on the bill authorizing a loan of the House of Representatives :

of one million of dollars; and, after some time I transmit to you an extract from a Letter of Mr. spent therein, the Chairman reported that the Short, relative to our affairs with Spain, and copies of Committee had had the said bill under consideratwo Letters from our Minister at Lisbon, with their en- tion, and made no amendment thereto. closures, containing intelligence from Algiers; the Ordered, That the said bill be engrossed, and whole of these communications are made in confidence, read the third time to-morrow. except the passage in Mr. Short's Letter which respects The House resolved itself into a Committee of the Spanish convoy.

the Whole House on the report of the committee G. WASHINGTON.

appointed to prepare and report to the House an UNITED STATES, March 3, 1794.

estimate of the expense that will be requisite to The said Message and papers were read, and place the principal seaports and harbors of the ordered to lie on the table.

United States in a state of defence; and, after A Report was read from the Secretary of the some time spent therein, the Committee rose, and Treasury, on sundry petitions which had been reported progress. referred to him. The letter enclosing this report suggests to the House, whether it would not be

AMENDMENT TO THE CONSTITUTION. expedient to place the business of reporting on The House resolved itself into a Committee of petitions in some other channel, as the pressure of the Whole House on the resolution sent from the his official duties, in addition to the extra business Senate,“ proposing an article of amendment to of the inquiry into the Treasury Department, will the Constitution of the United States, respecting not permit him to pay that seasonable and prompt the Judicial power;" and, after some time spent attention to these petitions which the parties ex- therein, the Chairman reported, that the Commitpect, and have just claim to.

tee had had the said resolution under consideraMr. SEDGWICK, from the committee appointed, tion, and made no amendment thereto. presented, a bill providing for the payment of the A motion was then made, and seconded, to second instalment due on a loan made of the Bank amend the said proposed article of amendment, at of the United States; which was read twice and the Clerk's table, by adding to the end thereof, the committed.

words following, to wit: "Where such State shall Ordered, That the resolution agreed to by this have previously made provision in their own House on the second of January last, " for appro- Courts, whereby such suit may be prosecuted to priating a sum of money, in addition to the provi-effect; and, on the question thereupon, it passed sion heretofore made to defray any expense which in the negative-yeas 8, nays 77, as follows: may be incurred in relation to the intercourse between the United States and foreign nations,” be William Hindman, Henry Latimer, Andrew Pickens

YxA8.-John Beatty, Elias Boudinot, Daniel Heister committed to Mr. William Smith, Mr. Ames, Thomas Scott, and Silas Talbot. and Mr. New, with instruction to prepare

and

NAY8.–Fisher Ames, Theodorus Bailey, Abraham bring in a bill or bills pursuant thereto.

Baldwin, Thomas Blount, Shearjashub Bourne, Ben Resolved, That the PRESIDENT OF THE UNITED jamin Bourne, Thomas P. Carnes, Gabriel Christie States be requested to cause to be laid before this Thomas Claiborne, David Cobb, Peleg Coffin, Joshu House a statement of the gross

sum of money Coit, Isaac Coles, William J. Dawson, Henry Dear which has been advanced by the United States, in | born, George Dent, William Findley, Thomas Fitzsi.

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