Adams Papers

Wilhem & Jan Willink to John Adams, 16 February 1784

From Wilhem & Jan Willink

Amsterdam 16 febr 1784

Sir

We received with pleasure your Excelly’s favour1 this morning and hope you are satisfyed with our endeavours to safe the honour of Congress drafts, the more as on the Reduced sheme is agreed for the million, so the inclosed explication will manifest to your Excellency, that in the final redeeming it is more profitable ƒ 1.89.946:17— than negotiated at 6 per C:2

a principal House the Broker, endeavour’d to persuade to take 100 Oblts. but refused it, because it considered the intrest too Low yet for America and that it considered it not convenient for his intrest, to take a share of it, you may guess at the name written with four letters.3

We have the honour to remain most respectfully / Sir / Your Excellency’s most / Humb & Obedient servants

Wilhem & Jan Willink

ENCLOSURE

Sheme of a Loan of two million of Guilders, Negotiated at 6 Pr. Ct. in the Year

Pmo: feby: 1784 . . . . Negot: Principal Sum of . . . . ƒ 2000000. —. —
6 pC . . . . . . . . . ″  120000. —. —
ƒ 2120000. —. —
1785 . . . . ƒ2000000 . . . . . . . 4 pC . . . ″   80000. —. —
ƒ 2040000. —. —
6 pC . . . . . . . . . ″  122400. —. —
ƒ 2162400. —. —
1786 . . . . ″2050000 . . . . . . . 4 . . . . . . ″   82000. —. —
ƒ 2080400. —. —
6 pC . . . . . . . . . ″  124824. —. —
ƒ 2205224. —. —
1787 . . . . 2050000 . . . . . . . 4 . . . . . . ″   82000. —. —
ƒ 2123224. —. —
6 pC . . . . . . . . . ″  127393.  9 . —
ƒ 2250617.  9 . —
 
1788 . . . . 2110000 . . . . . . . 4 . . . . . . ″   84400. —. —
ƒ 2166217.  9 . —
6 pC . . . . . . . . . ″  129973.  1 . —
ƒ 2296190. 10. —
1789 . . . . 2110000 . . . . . . . 4 . . . . . . ″   84400. —. —
ƒ 2211790. 10.  —
6 pC . . . . . . . . . ″  132707.  9.  —
ƒ 2344497.19. —
1790 . . . . ″2180000 . . . . . . . 4 . . . . . . ″  87200. —. —
ƒ 2257297. 19. —
6 pC . . . . . . . . . ″  135437.18. —
ƒ 2392735.17. —
1791 . . . . 2180000 . . . . . . . 4 . . . . . . ″   87200. —. —
ƒ 2305535.17. —
6 pC . . . . . . . . . ″  138332. 3. —
ƒ 2443868. —. —
1792 . . . . 2270000 . . . . . . . 4 . . . . . . ″   90800. —. —
ƒ 2353068. —. —
6 pC . . . . . . . . . ″  141184. 2. —
ƒ 2494252. 2. —
1793 . . . . ″2270000 . . . . . . . 4 . . . . . . ″   90800. —. —
ƒ 2403452. 2. —
6 pC . . . . . . . . . ″  144207. 3. —
ƒ 2547659. 5. —
1794 . . . . 2370000 . . . . . . . 4 . . . . . . ″   94800. —. —
ƒ 2452859. 5. —
6 pC . . . . . . . . . ″  147171. 11. —
ƒ 2600030. 16. —
1795 . . . . 2370000 . . . . . . . 4 . . . . . . ″  94800. —. —
ƒ 2505230.16. —
6 pC . . . . . . . . . ″  150313.17. —
ƒ 2655544. 13. —
1796 . . . . ″2490000 . . . . . . . 4 . . . . . . ″   99600. —. —
ƒ 2555944.13. —
6 pC . . . . . . . . . ″  153356.14. —
ƒ 2709301. 7. —
 
1797 . . . . ″2490000 . . . . . . . 4 . . . . . . ″   99600. —. —
ƒ 2609701. 7. —
6 pC . . . . . . . . . ″  156582. 2. —
ƒ 2766283. 9. —
1798 . . . . ″2690000 . . . . . . . 4 . . . . . . ″  107600. —. —
ƒ 2658683. 9. —
6 pC . . . . . . . . . ″  159521. —. —
ƒ 2818204. 9. —
1799 . . . . ƒ2690000 . . . . . . . 4pC . . . . ″  107600. —. —
ƒ 2710604. 9. —
6 pC . . . . . . . . . ″  162636. 5. —
ƒ 2873240.14. —
1800 . . . . ″2690000 . . . . . . . 4 . . . . . . ″  107600. —. —
ƒ 2765640.14. —
6 pC . . . . . . . . . ″  165938. 9. —
ƒ 2931579. 3. —
1801 . . . . ″2690000 . . . . . . . 4              107600. —. —
ƒ 2823979. 3. —
Redimb: 300000 . . . & premium . . . ″  312000. —. —
ƒ 2511979. 3. —
6 pC . . . . . . . . . ″  150718. 15. —
ƒ 2662697.18. —
1802 . . . . ƒ2390000 . . . . . . . 4 . . . . . . ″   95600. —. —
ƒ 2567097. 18. —
redimabe: 310000 & premium . . . ″   325500. —. —
ƒ 2241597.18. —
6 pC . . . . . . . . . ″  134495.17. —
ƒ 2376093.15. —
1803 . . . . ƒ2080000 . . . . . . . 4 . . . . . . ″   83200. —. —
ƒ 2292893. 15. —
redimabe: 320000 . . . & premium . . . ″  339200. —. —
ƒ 1953693.15. —
6 pC . . . . . . . . . ″  117221.12. —
2070915. 7. —
1804 . . . . ƒ1760000 . . . . . . . 4 . . . . . . ″   70400. —. —
ƒ 2000515. 7. —
 
redimabe: 340000 . . . & premium . . . ″  363800. —. —
ƒ 1636715. 7. —
6 pC . . . . . . . . . ″   98202.18. —
ƒ 1734918. 5. —
1805 . . . . ƒ1420000 . . . . . . . 4 . . . . . . ″    56800. —. —
ƒ 1678118. 5. —
redime: 350000 . . . & premium . . . ″  378000. —. —
ƒ 1300118. 5. —
6 pCt: . . . . . . . . ″   78007. 2. —
ƒ 1378125. 7. —
1806 . . . . ƒ1070000 . . . . . . . 4 . . . . . . ″  42800. —. —
ƒ 1335325. 7. —
redimabe: 370000 . . . & premium . . . ″  403300. —. —
ƒ 932025. 7. —
6 pC . . . . . . . . . ″  55921. 10. —
ƒ 987946.17. —
1807 . . . . ƒ700000 . . . . . . . 4 . . . . . . ″  28000. —. —
ƒ 959946.17. —
redimabe: 700000 . . . & premium . . . ″ 770000. —. —
ƒ 189946.17. —

Whch. Shews this plan more favourable ƒ189946:17— than if negotiated merely at the rate of 6 perCt interest:

RC and enclosure (Adams Papers); internal address: “To his Excellency / John Adams Esqr Hague.”

1Presumably JA’s letter to the consortium of 14 Feb., but see also the consortium’s letter to JA of this date, both above.

2The enclosed “Sheme” should be compared with that sent by the Willinks with their letter of 4 Feb., above. Through the entry for 1799 the two schemes are identical, but whereas in the earlier plan the redemption of principal and accured interest began in 1800, in the new plan it begins in 1801 and continues through 1807, rather than 1806. Then, rather than the gratification being 5 percent on the first payment of principal and accrued interest, it is 4 percent. Therefore, in 1801 the “ƒ300.000 with premium” is ƒ312,000 rather than ƒ315,000. This reduction of ƒ3,000 results in a significant reduction in the total cost of redemption through 1807. This also meant that the United States could avoid a cash payment of interest in 1800 of ƒ55,036, resulting from the differential between the yearly 6 percent charged on the loan and the 4 percent actually paid out to the investors. For the final form of the loan see the contract of [9 March 1784], below.

3This was the House of Hope, the principal partner of which was American-born Henry Hope Jr. The firm had been approached in 1782 when JA was seeking to raise the loan ultimately entrusted to the consortium. It was considered by the Dutch Patriots as pro-British and thus unacceptable, but JA later recalled that “Mr Hope” had taken much the same position as the Willinks attribute to the unnamed firm, namely “that America was too young to expect to borrow money at any ordinary interest” (vol. 11:53; 12:435). In his reply to the Willinks of 28 Feb. 1784, JA regretted that the “Gentleman” was “so ill informed of the Wealth & Resources of his native Country. But I fancy two or three Years will convince him of his Error” (LbC, APM Reel 107).

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