Newspaper Page Text
Numb. 35 of Vol. ll.] WEDNE SDA Y, February 27, 1793.
Report of the Secretary of the Treasury, relative to the Loans negotiated ui:der the acts of the 4th and 12th of August, 179<3- [Continued from our laji.} AN enquiry naturally arises here—Were the monies which were drawn from Europe on account of the foreign loans, the instrument of the purchases, to which these beneficial effefls are ascribed ? I answer, that these purchases arc to be attributed to the ihftrumentality of that fund—that had it not been for this re foiu-ce they could not have been made at tiie early periods, when most of them were made. The cnurfe of the tranfacTi-i on wili be fully and with more propriety explained in another place. An attention to both objects—to the re imbursements to France, and to the pur chases f the debt, rendered expedient a fiibdiviiion even of the firft loan. Conli derations of the moment seconded those of a general nature, to induce an immediate payment to that country—The loan had been undertaken without previous autho rity from hence, with a view to such pay ment. This was known and a correfpon deut expectation excited. The immedi ate situation of the French finanses, ren dered a payment at the particular juncture more than ordinarily interesting. 111 such a (late of things, there could be no hesita tion, about applying a large part of the loan to that object. Anotherpart of it wai of necessity applied to the payment of the sums, that were falling due on the Dutch loans. And it Is presumed, that the rea sons which have been afligned, will ap pear to have been fufficiently powerful to have dictated the drawing of a part of it to the United States. Accordingly, a million and a halt of the three millions borrowed, were appropri ated to France ; something mare than Soo v coo guilders were drawn syr here, Aad't'ii- remainder of tSeifca3"wk to be dilbarfed in Holland. j ' It shall not be concealed, though 1 am aware that the acknowledgment may be a fubieft of criticism, that the condua which was nurfued, both with regard to this and to the fncceedi'ng loan, was in fomed egree influenced by a collateral confutation. The government had but jlift adopted a plan tor the reftorationof public credit. The periodical payment ofintereft was to com mence on the Ift of April 1791. A con siderable part of the revenue out of which the monies were to arise, was only to be ein to accrue on the firft of January pre ceding This revenue was liable to cre dits of four, fix, and twelve months. How far its eventual product would an swer expectation—how far the punctuali ty of payments could be relied upon, were point* unascertained, and which required to their ascertainment much more expe rience than had been obtained. In such situation it was not only natural, but ne cefiary for an administrator of the finances to doubt—and doubting it was his duty to call to the aid of the public credit, every auxiliary, which it was in his power to command —He was bound to reflect, that a failure in any stipulated payment would be fatal to the dawning credit of the coun try—to the reputation of the government, iuft beginning to rife. That a wound in flitted upon either, at so early a stage, un der all the circumstances ot opposition to the constitution, which had exilled in the community, would have been deep.y felt, and might either not have admitted of a cure at ailornot till after * length of time, and a series of mifchiefs—that it could rjot but be an important service rendered o the country, to ward off so great a mif fortune, by the temporary life of any ex traordinary resource, which might be at hand, till time was given for more effectu al provHion. If iri the course of such reflections, a , doubt had occurred, about the stria regu larity of what was contemplated, asipof fible resort, a mind fufficiently alive to the public interest and fufficiently firm in the purfuitofit, would have dismissed thai doubt, as an obstacle, suggested by a pu sillanimous caution, to the exeicife 01 those higher motives, which ought evei to govern a man, inverted with a great public trust. It would have occurred thai there was reasonable ground to rely, thai the necessity of the cafe, and the magni tude of the occasion, would irifure a juf tification, and that if the contrary Ihould happen, there remained still the consola tion of having facrificed personal interest and tranquility, no matter to what extent, By P. FR.ENEAU: Published, Wednesdays and Saturdays, at Three Dollars per annum. to an important public interest, and of ha ving avoided the humiliation, which would have been jultly due to an opposite, and to a feeble conduit. The disposition which was resolved upo 11 with regard to the tirft loan, involved ne cefl'arily a decilion of the point, that the loans might be placed on the joint foun dation of both a£ts. That loan having been undertaken, as already mentioned, without previous authority, and conse quently without a particular eye to either act, it was probable, that it would be found too late to make an apportionment of one part of the sum borrowed to one ait, of another part to the other act. In that cafe, the distributive application of the fund to the d'.ffereiit objects was to be relinquished or the pofiibility was to be ad mitted, of the loan being left to stand up on the authority of both acts. The fame disposition of the firlt loan, will also illus trate the convenience and expediency ot the plan which was finally adopted, that is, of placing the loans on the bafls of both acts. The idea of a concurrent execution of both the objects to which the loans were deHined, could not conveniently have been pursued, upon the plan of a se paration of the loans ; which to be effec tual, would include the' drift application of the proceeds of each to tile purposes o: the particular ast, upon which it was founded. Amsterdam was naturally looked to, a? the great scene of the intended loans.t- There, as everywhere else, there is but a certain quantity of money floating in the market from time to time, beyond tht neceflary demands of trade and industry, Peeking for employment in loaps. Thi quantity, of course, varies at different peri ods, from a variety of causes. Of the quantity at any time afloat, but a certwi: borrowing power ; owing to the compe tition of other borrowers, who have each their connexions through their bankers, with different fetsof undertakers "and mo ney lenders. Nor is it always that conii derable loans can be had at any rate. — There are certain feufons only, when they are practicable. To have brought two loans upon the market at one time, as an opportunity of borrowing offered, which must have been the cafe in order to make concurrent provision for both the objects in question, if the principle of a separation of the loan; had been adopted, would have been to exhibit to the money lenders a very unu sual appearance. With men known to be much influenced by precedent and habit, such an apppearance could not have failed to prove a i'ource of speculation aud con jecture ; and might have led to a confu fed idea that the wants of the United States were excefiive ; a supposition, by no m?ans calculated to promote their cre dit. It would moreover have been a de parture from that simplicity of procedure, which,where numbers are concerned,is al ways of moment to a right conception of the bulinefa to beaccomplifhed., and ought not to be abandoned, but for reasons of real utility and weight. To have instituted the loans fucceffive ly,founding each,upon one or other of the acts, would have had a tendency to occ.l - longer intervals between thepaymenti to France, than was desirable. 'The in tervention of a loan for the purpose of purchases, would have created of course a very coniiderable chasm. It may be ob jected that such chasms did happen on the plan which'was pursued. This is true in two instances ; but the molt material of the two proceeded from cafualties'foreign to the plan vtfelf ; which are detailed in the correspondence more than once allu ded to. It ispolfibletoo that a separation of the loans might have rendered it less easy to take advantage of a state of the market, favourable to their extension at a particu lar juncture. The loan to be brought or the market might relate to the purdiafe ol the debt . The moment might be favour able to a more coniiderable loan, than wa: within the limits prescribed for that object, and the opportunity might flip before' t feeond could be inftitu ed. Iu this busi ness moments are often of importance, and are to be embraced with promptitude and dexterity. Thus it appeal s, that in different way: the negociation of the loans might have been embarralTed by their separation. But the mod obvious, if not the molt ferU ous of the inconveniencies which would have attended it, refpe£ts th? application of the sums borrowed- This could not then have been moulded, as the interelt or po licy of the government might dictate, A loan for the purchase ps the debt might iMve been made under profpeits, proini ulig a ready and berieficial inveltmenc of it r but befof-e the ihvefhnent was made, :■ change of the market might render'it ineligible—involving the alternative, ei- Cher of a difadvantajjeous investment, or of leaving perhaps a large film of money a long time unemployed. Such a ltate of things might have produced to the banks an advantage, and to the government a a loss, of magnitude fufficient to give co lour to a fiirmife, that the public in terelt had been facrificed to the profit of thole inltitutions. The contrary course has eflentialfy avoided that evil; which in this and in Other instances, would have been incident in a far greater degree, to the modes of proceedings, contralted with ihofe that have been puvfued ,'t!ian has in reality attended them. Or political conliderations might have rendered it advifeable to transfer the ap plication of the fund from one obje£t to *he other. ' Of this, the cafe of St. Domingo presents [11 example. It might have happened on i>e plan of fepsfrate loans, that there was ,;o tond in hand but for the purchase ut he debt* Then On the principle of that )ian, there would have been uo fund, in ;!ie disposition of the executive, applicable '.o the other object, which would have em jarrafled the performance of a duty to wards a friendly power, ana ift a way which included the positive advantage to kiie country of paying direitly a part of its foreign debt, in its own productions. Such were the embarraifments avoided, .. ,«! (wrh the conveniences secured, by the .nT.-.y"!' ■■ ■' ff'v' 1, , upon the authority of both acts. In the opposite plan, I can discern no counterbalancing advantage nor conveni ence. Consequently, if both are equally legal, there can be no doubt which of them ought to have been preferred. [To be Continued.] To the EDITOR of the NATIONAL GAZETTE. SIR, XT is incumbent on every one who re gards the interelt aiid happiness of his country, to take notice of every flioal and rock that have proved fatal to other re publics, and endeavour to guard against, the like mischance in this happy land. Un pleasant as the tall', is, to publicly censure the conduct of any of my fellow citizens, yet as the public welfare, in my opinion, is involved ; I conceive that silence would be criminal The measure 1 alkide to, was the celebrating the birth day of the President of the United States, by a part of the city militia. It appears by the condutt of fonie men, that we are only republicans in name and not in principle. Kor sure ly the cultoms and manners emanating from, and congenialXvith, monarchy, mult be incongruous in a rep'iiblic. Who will deny, that the celebrating of birth days is not a striking feature of royalty ? We hear of no such thing during the republic of Rome. Evert Cincinnatus, now conlign ed to immortal fame, received no adulati on of this kind. I am as fertfible of the services of the President as any man, and think him worthy of the high regard of his country. But surely the office he enjoys is a fufficient tMtimony of the people's f*- vour, without \vorlhipp<ng him likewise. I believe, 1 may venture to fay, thstt such fiilfome adulation does not accord Xvith his feelings'. If this evil was of no greater extent, than merely debasing thole who are in the practice of it, I fllould not feel much concern. But when I conlider it a fore runner of other monarchical vices, and holding up an improper example in this country, and an example at precedent, I cannot but execrate the measure. I api well aware that courtiers, and all the sy cophantic tribe, will endeavour to take off the force of these remarks, and others of a (imilar nature, that nave been lately made by some' republican writers, by bawling out fa£tion, fedition&c. I trull, however for the honour of my cenntry. that such characters are riot, as yet, numerous hare. [Total No. 139.], The/ are therefore of no consequence. But there are others, who fee and judge only through the falfe medium ot pafioii' ar prejudice, that may not relilh theft opi nions. To them I' would ju3 oijferver that the novelty ot* any doctrine ought not,' to be an argument against It—nor Ihould it* be condemned without a fair aftd difpafli onate crimination. I appeal thefi to the joodfenfe of my countrymen; whether, by placing one man above all equality a«d heaping honours upon hrm, it does not, iu the fame proportion, lefleu the eOnfe--' quence of every other person : And, whe ther this is not (owing the feeds lions and inequality which will indubita- Sly produce a change in cur government L/ It is true, that during the administrati on of the present chief magittrace, these predictions may not be realized,. 11 His 4'uc cefl'er however may be a different chai*ac- 1 :er. He may poflefs immoderate ambition md a riefire of dominion. Dazzled with he splendour cf his flation, and puffed with tlie homage that a misguided people' lave annexedto that expefr ather marks of adularioji besides' celebra ting his birth day, attending his levess&f. And his courtiers and sycophants,'" (far there will be always filch aniinals) wil! conspire with him to produce them.— His person mull be made placed above all law.' Thus by decrees, 4 equality, 'the great foundation of oils liberties, will'be uatlenoitted ■ The pea-» pie, having unfortunately fufjered ha-' bits of fertility to-gain Urength among them; and their minds being-qf corrupted, will not' fe& their danger un-' till it is too late to' be remedied. Whoe ver doubts these affertiom—let him recur to history for their'truth. He will there find; that the making oneperfon more than' man, evidently degraded others—that this diftinQion produced correfpondi'ng princi* pies and the one haad, a de *' 2 : U<yAw«;<ie •>* of the liberties of his country ; 'on the n - ther. a servile obecliertce to his wil' pleasure.' Nor can we flatter 'oiirtylve# into a belief, that the (ante causes will not prod uce like effects in all ages' And coun-" tries. " Happy are they whom other peo ples' misfortunes learn to be wife." VALERIUS. Feb. 25- 1793- * ' 1 Extracts from London papers to Jan. ti — (received by the January Packet.) LONDON, Dec. 29. Letters from the Lower Rhine mention the decisive advantage said to- have been* gained over the French army tinder Gene ral Cuftine, to be premature. There ap pear only to have been force serious ren counters between the posts; The Prpfliait troops, under the king of Brufiia and the 1 duke of Brunfwick, marched *agarcft the? French encamped on the heights of Efch." They trofled -the ftreit, and (trove them from Swalbach, VJafladten, and Kemem, as far as Wilbaberr. The action was bloo dy, and the duke of Brunfwick's son was wounded in two but not denge rolifly. ' ' 1 ' ; . . • . Yesterday, in consequence of the recor der's report, several criminals confined in Newgate, were brought otit for execution by order of his majeftv, among others, Tho ilias Folkes, for robbing William Dunn o;i the highway "of two pence halfpenny— Henry Wild, for robbing William Bufli 011 the highway of a canvals bag, containing 18 guineas aud an half, and John Caftle dine for' dealing five guineas and a silver watch,'were ordered to be tranfpprted, the former for life, the latter for seven years. JanuaY.y 4. Private letters from Pari* give us strong aiiiirances that 'the public mind ft'changing -fact on the subject of the 1 king of France's trial, and that there was every reafoii to hope that the moderate party would be able to his lite. - Par ties are coming in from all quarters i;i preserve peacfe against a intnlber of anar chifts,\vhofe views extendfo far as,by ex citing the' execution of "Louis, to ailill in restoring a monarchical government. Neve* wa\ money (b fcarceln London, as at the present time.' Thisis octafioned by the profpetl of a war with I'r.lfice—Mi* niflerial papers fay, that our 'government has refilled to hold any fconfeVenccwifli M. CliauveliiT, tlie-French ambaflador—it this be true,'a War with the rejvuWVc is in evitable."'Kye'ry public 'niesfure, indeed, r "sUis to annt)unci that we ale on tire «\« »f aV.ar : within a very feu days contrails t> a" v large-arncjunt have been