George Washington Papers
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To George Washington from the Commissioners for the District of Columbia, 31 October 1796

From the Commissioners for the District of Columbia

Washington 31st October 1796

Sir,

Since our first Letter of this date, we have thought it prudent to write to Mr Wolcott & to enclose to him the proposals for a Loan from the Bank, drawn out into detail, both which are left open for your perusal & approbation, without which we do not consider ourselves at liberty to make the propositions1—Not knowing what may be the event of the application to the Bank, we have thought it adviseable to forward an Instrument, empowering us to borrow of the State of Maryland, in case of need.2 We are; with sentiments &c.

G. Scott
W. Thornton
A. White

LB, DNA: RG 42, Records of the Commissioners for the District of Columbia, Letters Sent. GW replied to the commissioners on 7 November.

1On this date, the commissioners wrote Treasury Secretary Oliver Wolcott, Jr., to request his “attention to the inclosed propositions, & to lay them before the president & Directors of the bank of the United States” (DNA: RG 42, Records of the Commissioners for the District of Columbia, Letters Sent).

The enclosed proposals, also dated 31 Oct., read: “The Commissioners … authorize the secretary of the Treasury with the Consent of the President of the U.S. to propose to the P. & Ds. of the Bank of U.S. to lend to the City of W[ashington] the Sum of $100,000, for one year.” One proposal called on the commissioners “to pay Interest at the rate of 6 p. Ct per Annum for the whole sum loaned … the principal & Interest to be repaid in one year from the date of the Loan” (DNA: RG 42, Records of the Commissioners for the District of Columbia, Letters Received). For the unsuccessful efforts to secure a loan from the Bank of the United States, see the D.C. commissioners’ first letter to GW of this date; see also GW to the Commissioners for the District of Columbia, 7 Nov., and n.3; and GW to the Commissioners for the District of Columbia, 11 Nov., and n.3.

2The enclosed “Instrument” was an unsigned and undated authorization allowing the D.C. commissioners to seek a loan from the Maryland legislature: “Be it known to all persons to whom these presents shall come, that I, George Washington, President of the United States of America, have authorised and empowered, and by this present writing, do authorise and empower, Gustavus Scott, William Thornton and Alexander White, Commissioners appointed by virtue of an Act of Congress, entituled, ‘an Act for establishing the temporary and permanent Seat of the Government of the United States,’ or their Successors in Office, or any two of them, by themselves, or their Attorney or Attornies, Agent or agents, duly empow[er]ed for that purpose, to borrow of the State of Maryland, for the purpose of erecting the Buildings authorised by the Act of Congress above mentioned, a Sum not exceeding One hundred and fifty thousand Dollars, on the terms authorised by an Act of Congress, entituled: ‘An Act authorising a Loan for the use of the City of Washington, in the District of Columbia,’ or on such other terms as the said Commissioners or their Successors, or any two of them may judge reasonable, provided no higher or greater Interest than at the rate of Six per cent per Annum shall be allowed, & no longer term stipulated for the repayment of the Sums borrowed than that expressed in the last mentioned Act of Congress for the re-payment of monies borrowed under the said Act. And I do declare, that the Stock of the United States bearing a present Interest of Six per cent per annum, may be received on such loans, as specie, at par” (copy, DLC:GW; filed with GW’s letter to the commissioners of 21 Nov.; the copyist indicated that GW and Secretary of State Timothy Pickering had signed the original; the date of 21 Nov. is inserted in blanks left for the day and month). For the congressional acts referenced in the instrument, see 1 Stat. description begins Richard Peters, ed. The Public Statutes at Large of the United States of America, from the Organization of the Government in 1789, to March 3, 1845 . . .. 8 vols. Boston, 1845-67. description ends 130, 461. For the official implementation of the order on 21 Nov., see GW to the Commissioners for the District of Columbia, that date, and n.3. The commissioners’ book of proceedings for 2 Dec. records a resolution, dated 21 Nov. 1796, containing similar language as the above instrument, and authorizing Scott to negotiate the loan in Maryland (see DNA: RG 42, Records of the Commissioners for the District of Columbia, Proceedings, 1791–1802). The Maryland legislature granted the loan in December (see John Hoskins Stone to GW, 12 Dec., and n.2).

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