James Madison Papers

To James Madison from Albert Gallatin, [ca. 17 February] 1813

From Albert Gallatin

[ca. 17 February 1813]

Dear Sir

It is necessary to open immediately the loan as we have not money enough to last us more than one month. I enclose for your signature the usual authority. The terms which it is intended to offer are to give for every 100 dollars loaned, six per cent stock to that amount & in addition thereto an annuity of one dollar a year for thirteen years. That annuity is equivalent to a premium of about 8½ per cent; and the two Stocks together will be tantamount to a Seven per cent stock irredeemable for 13 years. But I prefer the mode of not issuing any other stock than six per cent & to give a distinct stock for the short annuity. There is no probability that the money can be obtained cheaper. Respectfully Your obedt. Servt.

Albert Gallatin

The enclosed printed paper contains last year’s proposals;1 the manuscript those intended this year;2 both to be if you please returned, with any observations suggested by them.

RC (DLC). Undated; date assigned on the basis of evidence presented in n. 2. Docketed by JM. Enclosures not found, but see nn. 1–2.

1For the terms of the March 1812 loan, see ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States … (38 vols.; Washington, 1832–61). description ends , Finance, 2:565–66.

2Gallatin’s published terms for subscriptions to the loan authorized on 8 Feb. were dated 20 Feb. 1813. The preamble to these terms stated that the president “did, by an act or commission under his hand, dated the seventeenth day of February, one thousand eight hundred and thirteen, authorise and empower the Secretary of the Treasury to borrow … a sum not exceeding in the whole sixteen millions of dollars” (Daily National Intelligencer, 4 Mar. 1813).

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