James Madison Papers

Meeting of the Commissioners of the Sinking Fund, 28 April 1806

28 April 1806.

At a meeting of Commissioners of the Sinking Fund, on the 28th day of April, 1806 —

Present: James Madison, Secretary of State
Albert Gallatin, Secretary of the Treasury
John Breckenridge, Attorney General

The Secretary of the Treasury laid before the Board a report, dated the 26th April, 1806, which was read, and is as follows:

“That the current payments to be made by the commissioners of the sinking fund, during the year 1806, are estimated as followeith, viz:

Reimbursement and interest on the domestic debt, $ 4,585,000
Instalments and interest on the Dutch debt, payable from 1st January, to the 1st June, 1807, and Which must, therefore, be remitted in 1806, 1,004,032
One year’s interest on the Louisiana stock 678,375
Amounting, altogether, to $ 6,267,407
And leaving, in order to complete the annual appropriation of eight millions of dollars, a sum-exceeding one million seven hundred and thirty thousand dollars, (exclusively of the interest which may be redeemed by the payment of said sum) to be applied in such manner as the Board shall direct, 1,732,593
$ 8,000,000
 That the said sum may be applied either to reimbursement or purchases of the public debt.
 That the only portions of the debt which may be reimbursed, are:
The Navy six per cent. — stock, amounting to $ 711,700
The five and a half per cent. stock, amounting to 1,847,500
And the fur and a half per cent. Stock, amounting to 176,000

And that it is now submitted, whether, previous to advertising the reimbursement of the five and a half per cent. stock, it might not be advisable to ascertain whether a more advantageous application may be effected by purchases in the manner authorized by law.”

Whereupon, it was Resolved,

1. That the sum, which, after making the current payments mentioned in the preceding report, shall remain to complete the annual appropriation of eight millions of dollars, be applied in the following manner, viz: first, to the purchase of the eight per cent., old six percent., and deferred stocks, at a price not exceeding the rates fixed by law; giving the preference, in the first place, to the eight per cent., and, in the next place, to the deferred stock, provided that the President of the United States shall assent to such application; and, secondly, in case that a sufficient quantity of stock cannot be purchased, to the reimbursement of the navy six per cent. stock, and, at the option of the Secretary of the Treasury, either to the reimbursement of the five and a half per cent. stock, or of so much of the bill drawn on the treasury, by the minister of the United States at Paris, in conformity with the convention between France and the United States, of the 30th of April, 1803, as will be necessary to complete the payment of the said eight millions of dollars.

2. That the Treasurer of the United States be the agent, under the superintendence of the Secretary of the Treasury, for making the said purchases; that the said purchases be made by receiving sealed proposals for any sums which may be offered; and that the said agent forthwith advertise to receive such proposals, until the 13th day of June next, inclusively.

3. That notice of the reimbursement of such stocks as may be reimbursed, be given by the Secretary of the Treasury, prior to the 1st day of July next, and that the date of reimbursement be, at his option, either the 1st day of October, or the 1st day of January next.

James Madison, Secretary of State.

Albert Gallatin, Secretary of the Treasury.

John Breckenridge, Attorney General U.S.

Attest,


Edward Jones, Secretary to the Commissioners of the Sinking Fund.

Printed Source--American State Papers. 38 vols. (Washington, D.C.: Gales and Seaton, 1831-61)..

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