|Statement of the Several Sums Which Have Been Borrowed for the Use of the United States by Virtue of the Acts of the Fourth and Twelfth of August 1790,5 Shewing the Particular Application of the Monies, to the First of January 1793, Inclusively, and the Balance Remaining Unapplied.|
|Florins. Sts. d.|
|First Loan,||made at Amsterdam, commencing on the 1st of February 1790, at 5 per cent interest, and 4½ per cent charges6||3.000.000.|
|Second Loan,||made at Amsterdam, commencing on the 1st day of March 1791, at 5 per cent interest, and 4 per cent charges7||2.500.000.|
|Third Loan,||made at Amsterdam, commencing on the 1st of September 1791, at 5 per cent interest, and 4 per cent charges8||6.000.000.|
|Fourth Loan,||made at Antwerp, commencing on the 1st of December 1791, at 4½ per cent interest, and 4 per cent charges9||2.050.000.|
|Fifth Loan,||made at Amsterdam, commencing on the 1st of January 1792, at 4 per cent interest, and 5½ per cent charges10||3.000.000.|
|Sixth Loan,||made at Amsterdam, commencing on the 1st of June 1792, at 4 per cent interest, and 5 per cent charges11||3.000.000.|
|Charges upon the Loans.|
|Payments made to France. (B.)12|
|Livres tournois S. d.||Florins. Sts. d.|
|1790||Dec:||3d:||Remittance from||Amsterdam,||3.611.950.||1.500.014. 9.|
|Sept.||12th.||do||do||642.896. 9. 9||238.233. 6.|
|“||6th||do||do||806.420. 3. 3||300.951. 9|
|“||20th||do||do||811.154. 2. 8||302.291. 4.|
|“||24th||do||do||487.692. 2. 8||180.608.13.|
|Dec:||do. from Amsterdam||5.367.272.14. 6||1.968.000.|
|1792.||Aug:||9th.||do. from Amsterdam||6.000.000||1.641.250.|
|Charges on the Remittances to France.|
|Brokerage on Florins 10.073.043.8. at 1 per mille.||28.327.937. 9. 6.||10.073.043. 8.|
|Payments on account of other foreign Loans made and to be made to the 1st of January 1793, inclusively.|
|From which, deduct so much remitted to the Commissioners from the Treasury, pursuant to special appropriations by the Acts, intituled “An Act making appropriations for the support of Government for the year 1790;”13 and, “An Act making certain appropriations therein mentioned.”14||100.000|
|1.733.189. 2. 8.|
|Commission on the payment of 1.917.250, florins interest, at 1 per cent||19.172.10.|
|For postage and advertising||613. 8. 8.|
|For interest on the debt due to certain foreign Officers, payable in Paris,15 (C)||105.000.|
|Reimbursement of the Spanish debt, estimated at (D)16||680.000.|
|Bills drawn upon the Commissioners in Amsterdam, by the Treasurer. (E)||5.649.621. 2. 8.|
|Leaving a Balance in the hands of the Commissioners, of||407.287. 7. 8.|
(A) The dates here mentioned are those for commencing payments on account of the respective loans. The usage is, to allow a certain time to the subscribers (ordinarily from three to six months) to pay in the sums subscribed, the sums paid in, in each month, bearing interest from the beginning of the month. The Schedule No. II, shews the monthly periods of actual payment. The first of these loans was set on foot by our Bankers in Holland,17 without previous authority, for reasons of weight, respecting the interests and credit of the United States. A due regard to the motives, and considerations relative to the yet unascertained effect of our financial arrangements in their first stages led to an acceptance of that loan on account of the government. The fourth of these loans was originally contracted for three millions of florins, but nine hundred and fifty thousand florins were afterwards suppressed,18 in consequence of its being found, that money had become obtainable at a lower rate of interest.
(B) The conversion of florins into livres, in each case, is regulated by the actual market rate of exchange, at the time of payment. It is, however, understood, that there is to be a reliquidation, with a view to certain equitable considerations. The rate of exchange, for the proceeds of the Antwerp loan, is stated by analogy—no more certain rule being, at present, in possession of the Treasury.
(C) The actual payment of this interest is not yet known at the Treasury, but an appropriation has been made for it, at the disposal of the Minister Plenipotentiary of the United States in France.
(D) Advice is received, that this payment was going on, though it had not been completed. There is no cause to doubt, that it has been since carried into full effect.
(E) The produce of the Bills drawn for this sum, and others particulars respecting it, will appear from the Schedules, No. III and IV.
According to the terms of all these loans, the United States are bound to reimburse, in fifteen years, by equal instalments, the first beginning the eleventh year; but the United States have reserved a right upon all, except the two last, to reimburse, at any time, at their pleasure; The reimbursement of the two last (according to the general usage of the country, observed in all loans by the United States, prior to the present government) cannot begin ’till the eleventh year.
Alex. Hamilton, Secry. of Treasy.
5. “An Act making provision for the (payment of the) Debt of the United States” (1 Stat. description begins The Public Statutes at Large of the United States of America (Boston, 1845). description ends 138–44 [August 4, 1790]) and “An Act making Provision for the Reduction of the Public Debt” (1 Stat. description begins The Public Statutes at Large of the United States of America (Boston, 1845). description ends 186–187 [August 12, 1790]).
6. For a description of this loan, see H to Willink, Van Staphorst, and Hubbard, November 29, 1790, note 1.
12. For descriptions of the French loans, see H to Short, September 1, 1790, notes 17 and 26; Short to H, November 30, 1789, note 3; Willink, Van Staphorst, and Hubbard to H, January 25, 1790, note 3.
15. For a description of this debt, see Short to H, August 3, 1790, note 5. Section 5 of “An Act supplementary to the act making provision for the Debt of the United States” (1 Stat. description begins The Public Statutes at Large of the United States of America (Boston, 1845). description ends 282 [May 8, 1792]) authorized the President “to cause to be discharged the principal and interest of the said debt, out of any of the monies, which have been or shall be obtained on loan.” Although originally the interest on this debt was payable in Paris, H had made arrangements in September, 1792, to have the principal or both the principal and interest paid in the United States beginning on October 15, 1792. See H to Gouverneur Morris, September 13, 1792; H to Short, September 13, 1792. For the negotiations on the payment of these officers, see also H to Short, August 16, 1792; H to George Washington, August 27, 1792; Washington to H, August 31, 1792.
16. For a description of this loan, see H to Short, September 1, 1790, note 19; Joseph Nourse to H, October 9, 1792. See also Samuel Flagg Bemis, Pinckney’s Treaty (Reprinted: New Haven, 1960), Appendix II, “The Financial Debt of the United States to Spain and Its Payment; Loans and Subsidies,” 325–34.
17. Willink, Van Staphorst, and Hubbard.