I. [Jacob van Staphorst’s?] Plan
In Order to consolidate the whole Foreign Debt of the United States, and to place it on a regular and simple plan of reimbursement, it will perhaps be the best mode to borrow in Holland 21.000.000 Florins for the payment of the following sums viz.
|Capital due to France||34.000.000||Livres|
|interest thereon to Jany. 1792||6.850.000|
|Sundry demands in Europe, say||4.150.000|
45. Million livres at the exchange of 54st. per ecû is equal to 21 Million Florins.
When this Loan is accomplished the whole Foreign Debt of the United States will be in Holland, and will consist of the Loans heretofore made in Amsterdam, and the present Loan of 21. millions bearing interest at 5 per Cent per annum, with the condition that the United States shall have a right to pay annually any part of the Capital of this Loan, not exceeding 2.500.000 florins in any one year.
To insure the completion of this Loan, the U. States must levy an impost of 5 per C. ad valorem on all goods imported into the U. States and, if necessary such other additional Duties as will annually produce one Million of Dollars, such Duties to be sacredly appropriated first to the payment of the interest and reimbursements of the Loans heretofore made in Holland, and the residue to the payment of the interest and reimbursements of the New Loan. This mode will instantly raise the value of the Old Loans, and so enhance the Credit of the U. States as to secure the success of the New Loan.
The following Calculation will shew that the appropriation of this revenue will sink the whole Foreign Debt of the U. States at the close of the year 1810. excepting only 146.814 florins.
|for expences of the N loan||1.020.000|
|sink of Capital||1.020.000|
|1802.||Old Loans||842.000 [i.e., 825.500]|
|1808.||O.L. sunk wholly|
remains 146.814 Florins on last of Decemr. 1810—as below.
The following calculation will shew the effect of the reimbursement on the loan of 21. million.
MS (DLC: TJ Papers, 13928); undated, unsigned, and in an unidentified hand (but for discussion of date and authorship, see editorial note above). PrC (DLC: TJ Papers, 44: 7525–6); entirely in TJ’s hand; this is probably the PrC of the (missing) Tr that TJ enclosed in the foregoing letter to Madison. Both MS and PrC contain errors, TJ having transcribed those from MS without noting them.
1. Thus in MS. The sinking fund credit for 1807 was erroneously copied here: the figure should be 1,576,033.
2. Thus in MS. An error in calculation: the figure should be 17,895,151.
3. Thus in MS. An error in calculation: the figure should be 8,237,314.