George Washington Papers

VIII, November 1793, Alexander Hamilton’s Draft of a Statement on Financial Affairs for GW’s Fifth Annual Address to Congress

VIII

Alexander Hamilton’s Draft of a Statement on Financial Affairs for GW’s Fifth Annual Address to Congress
[Drafting GW’s Annual Address, 18–28 Nov. 1793]

[November 1793]

The Commissioners charged with the settlement of Accounts between the United & the Individual States completed that important business within the time limited by Law; and the ballances which they have reported have been placed upon the Books of the Treasury. A copy of their Report bearing date the [ ] day of [ ] last will be laid before Congress for their information.1

The importance of the object will justify me in recalling to your consideration the expediency of a regular and adequate provision for the Redemption and Discharge of the Public Debt. Several obvious considerations render the œconomy of time, in relation to this measure, peculiarly interesting and desireable.

It is necessary, that provision should be also made for paying the second installment of the loan of two Millions from the Bank of the U. States agreeably to the terms of that loan; the first having been paid, pursuant to the provision for that purpose made during the last session.2

on the first day of June last an installment of 1000000 of florins became payable on the loans of the U. States in Holland. This was adjusted by a prolongation of the period of reimbusement, in nature of a new loan at an interest of 5 per Cent, for the term of ten years. The charges upon this operation were a commission of three per Cent.3 It will readily be perceived that the posture of European affairs is calculated to affect unfavourably the measures of the U.S. for borrowing abroad.

The productiveness of the public Revenues hitherto has continued to equal the anticipations which were formed of it; but it is not expected that it will prove commensurate with all the objects which have been suggested. Some auxiliary provisions will, therefore, it is presumed, be requisite; but these it is hoped can be made consistently with a due regard to the convenience of our citizens, who cannot but be sensible of the true wisdom of encountering a small present addition to their contribution for the public service, to avoid a future accumulation of burthens.

AD, DLC:GW.

1. On this commission, see Robert Barnwell to GW, 27 April 1789, and n.1. The initial authorization of 7 May 1787 had been amended and continued by acts of 5 Aug. 1789, 5 Aug. 1790, 23 Jan. 1792, and 27 Feb. 1793 (JCC description begins Worthington Chauncey Ford et al., eds. Journals of the Continental Congress, 1774-1789. 34 vols. Washington, D.C., 1904–37. description ends , 32:262–66; 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 , 1:49, 178–79, 229, 324). The commissioners’ report to GW was dated 29 June 1793.

2. For the agreement on the terms of this loan, 25 June 1792, see Hamilton Papers description begins Harold C. Syrett et al., eds. The Papers of Alexander Hamilton. 27 vols. New York, 1961–87. description ends , 11:560–63. “An Act providing for the payment of the First Instalment due on a Loan made of the Bank of the United States” was approved on 2 March 1793 (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 , 1:338). Congress approved an act providing for payment of the second $200,000 installment on 4 June 1794 (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 , 1:372).

3. Hamilton wrote the remainder of this paragraph in the left margin and marked it for insertion at this point. Another note (in Edmund Randolph’s writing) above that marginal text reads: “add Military repairs and purchases.” The payment due on 1 June was the first installment of the Dutch loan approved by Congress on 14 Sept. 1782 (JCC description begins Worthington Chauncey Ford et al., eds. Journals of the Continental Congress, 1774-1789. 34 vols. Washington, D.C., 1904–37. description ends , 23:575–80). On the prolongation of the loan, see Wilhelm and Jan Willink, Nicholaas and Jacob Van Staphorst, and Nicholas Hubbard to Hamilton, 1 May (Hamilton Papers description begins Harold C. Syrett et al., eds. The Papers of Alexander Hamilton. 27 vols. New York, 1961–87. description ends , 14:364–67). There the commission fee is stated to be 3½ percent.

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    Washington Papers
    Title
    VIII, November 1793, Alexander Hamilton’s Draft of a Statement on Financial Affairs for GW’s Fifth Annual Address to Congress
    Author
    Hamilton, Alexander
    Date
    November 1793

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    “VIII, November 1793, Alexander Hamilton’s Draft of a Statement on Financial Affairs for GW’s Fifth Annual Address to Congress,” Founders Online, National Archives, https://founders.archives.gov/documents/Washington/05-14-02-0264-0009. [Original source: The Papers of George Washington, Presidential Series, vol. 14, 1 September–31 December 1793, ed. David R. Hoth. Charlottesville: University of Virginia Press, 2008, pp. 400–401.]