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of all other expenses that may be incurred in the negotiation and sale of said bonds, and to be by said agents deducted from the proceeds of said sales. Second. The parties of the second part shall have and deposite the proceeds of said sales, and of any benefit to be derived from the difference of exchange, in case the principal or any part thereof shall be contracted for and received in Europe, in the city of New York, ready to be there delivered to the parties of the first part or to such person or persons as may be duly authorized to receive the same, and they,the parties of the second part, hereby guaranty the safe transmission thereof to the city of New York, in case the sales be made and payable elsewhere, and they, the parties of the second part, further guaranty and agree, that in case the sales of the said bonds shall be so negotiated as that the whole proceeds of such sales, and of the benefit of the exchange as above mentioned, if any, shall not equal the par value of the aggregate amount of the bonds sold, they, the parties of the second part, shall make up the deficiency, viz: they shall and will allow and pay to the parties of the first part, or such person or persons as may be duly authorized to receive the same, in addition to such proceeds, the difference between the said proceeds and the par value of said bonds, after deducting their commissions as aforesaid on the par value, which is to be allowed them; and in case the sums realized on the sale of the said bonds shall amount to par, the parties of the second part shall allow and pay such proceeds in the city of New York as aforesaid, after deducting their commissions as aforesaid, and the parties of the second part shall and will advance and pay such proceeds in the city of NewYork as aforesaid, after deducting their commissions as aforesaid, at the times hereinafter mentioned, viz: two hundred and fifty thousand dollars to be paid and advanced in cash on the execution of this contract; one million and fifty thousand dol. lars, as may be required by the parties of the firstpart or on their behalf, the same being subject to their order; and the re. sidue of such of the proceeds as are to be paid over under this contract, shall be paid quarterly in sums of two hundred and fifty thousand dollars each, the first payment thereof to be made on the first day of July, in the year of our Lord eighteen hundred and thirty-nine, until the whole of such proceeds shall have been paid, whether the said parties of the second part shall be in funds from the proceeds of such sales to meet the instalments or otherwise. And in consideration of the above guaranty and stipulations in this clause mentioned, it is further agreed, that whatever sum may be realized on the sale of the aforesaid bonds, over and above the par value, such excess, to the amount of five per cent and under, shall be equally divided between the parties hereto. The parties of the second part to retain their half thereof, and all beyond the said five per cent shall be retained by the parties of the second part. The portions of such excess so to be retained by them, to be in addition to their commission of two and a half per cent on the par value of the whole five millions as aforesaid. Third. The said bonds shall be drawn in such sums, in such forms, and be delivered to the parties of the second part at such times as may be desired by them prior to the instalments becoming due ; the same to be prepared, nevertheless, conformably with the laws authorizing the issuing thereof. Fourth. One million three hundred thousand dollars of said bonds are to be delivered to the said parties of the second part on the execution of this contract, and such further delivery of the bonds is from time to time to be made to the said parties of the second part, as always to put them in possession of one million of dollars in bonds in advance of the payment by them actually made to the said parties of the first part, or the person or persons authorized to receive the same. Fifth. The said parties of the second part are to have the option of paying over in the city of New York, the balance of five millions of dollars, deducting thereout their commissions of two and a half percent, or any part of such balance, and receiving the residue of the bonds of five millions of dollars, on thirty days' notice, to be given in writing to the Governor for the time being of the state ; and whatever may remain to be paid, if any, shall be paid over by the parties of the second part in the city of New York, as soon thereafter as the whole bonds can be disposed of and realized and the account closed. Sixth. It is further agreed that all and singular, the bonds of five millions of dollars above mentioned, are to be delivered to the parties of the second part at their banking house in Jersey city, in the state of New Jersey. And it is further agreed and understood, in consideration of the premises, and more particularly of the above guarantees entered into by the parties of the second part, that this agency shall be irrevocable, and shall continue in full force until all the services and stipulations herein mentioned shall be fully performed and consummated. In witness whereof, his excellency the Governor of the said state, in the name and on behalf of the people of the said state of Michigan, has hereunto set his hand and affixed his seal, and the parties of the second part have caused their corporate seal to be hereunto affixed and attested by their vice president and cashier, the day and year first above written. * — a STEVENS T. MASON, [.. s.] The Morris canal and banking company, by E. R. BIDDLE, §. Pres’t, [L. s.j In presence of H. B. BURCH, WALTER BETTs, Jr. Attest: Isaac Gibson, Cash’r.

Supplementary Agreement relative to Internal Improvement Loan.

Memorandum of an agreement made and entered into this fourth day of June, A. D., 1838, by Stevens T. Mason, Governor of the state of Michigan, with the Morris canal and banking comanW. p Wien. the said Morris canal and banking company have passed to the credit of the said Stevens T. Mason, the sum of one million three hundred thousand dollars, for an amount of Michigan six per cent bonds equal at par to that sum :

Now, in consideration of such payment as aforesaid, the said Stevens T. Mason does hereby agree to receive said sum of one million three hundred thousand dollars, in the notes of the Morris canal and banking company, and to disburse them so far as the exigencies of the state of Michigan may allow, as follows, to wit: two hundred and fifty thousand dollars on or about the first day of August next; one hundred thousand dollars on or about the first day of September next, and one hundred thousand dollars on the first days of each of the ensuing months.

In witness whereof, the said Stevens T. Mason has hereunto set his hand and seal, the day and year first above written.

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Morris Canal Company's Agreement for Ninety Day Drafts.

Whereas, the Morris canal and banking company have contracted with the Hon. S. T. Mason, Governor of the state of Michigan, to sell the bonds of said state, and have a commission for said agency, as stipulated in a contract bearing date the first day of June, 1838.

And whereas, it was agreed and understood between the parties, that the Morris canal and banking company should pay certain sums of money on the account of sale of said bonds, on first day of August next, also on first day of September, October, No. vember, December, January, February, March and April followIn Or.

"And whereas, it is represented by John Norton, Jr. Esq., cashier of State bank of Michigan, fiscal agent of said state, and act. ing in behalf of Governor Mason, with his full power, that it will better promote the interest of the state and internal improvement fund, to transfer money to be received on account of above payments, to the treasury of said state, by drawing bills from Detroit on New York, to be accepted by Morris canas and banking company, than to transfer the amount from New York to Michigan, as was intended to be done (when contract was executed) in bank bills.

It is hereby mutually agreed and understood, by and between

the Morris canal and banking company and said John Norton, Jr., acting in behalf of said Governor Mason, that said John Norton shall draw bills from Detroit on the Morris canal and banking company, payable at an average of not less than ninety days, after aforesaid instalments severally become due and payable.

And it is further agreed by the parties to these presents, that said bills, when drawn in conformity with foregoing stipulations, and by authority of Governor Mason, shall be accepted and paid by Morris canal and banking company.

And it is further agreed by said Norton, that in consideration of these presents, and especially in consideration of said Morris canal and banking company accepting when presented, and paying said bills when due, for amount of each instalment, they shall be considered and received as payment in full for the several instalments, in the same manner as though each payment was made in cash, on the day they are understood to be due by the original understanding and agreement.

New York, 14th July, 1838. JOHN NORTON, Jr. In presence of | E. R. BIDDLE, W. P.

. GRIswold. of Morris canal and banking company.

S. T. Mason to E. R. Biddle, Nov. 3, 1838.
New York, November 3, 1838.

Dear Sir—The approaching session of our state legislature, requires that I should be prepared to present the state of the agency of the Morris canal and banking company for the negotiation of $5,000,000, under my contract of May last. You will, therefore, oblige me by furnishing a full statement of the sale of bonds up to this date, by your company; and at the same time. I should be pleased to receive such general suggestions on the subject, to be presented to the legislature, as would be calculated to promote the measure entrusted to your care.

I am, respectfully,
(Signed) S. T. MASON.

E. R. BIDDLE, Esq., Vice President, &c.

E. R. Biddle's Report, Nov. 10. 1838.

OFFICE of THE MoRRIs CANAL AND BANKING Co.,
November 10, 1838.

Sir–I have received yours of the third instant, requesting a statement and report of the condition of the bonds negotiated by this company as agents of the state of Michigan, which will meet due attention.

Before rendering it, however, I deem it proper to say, that the recent advices from London place the condition and prospects of American securities in such a light as to render it very desirable to close the sale of the balance of your bonds, if to be accomplished within the limits fixed by our contract under date of first of June last.

It is now in the power of this company to do so, and to pass the whole amount to the credit of the state of Michigan, at par, less our commission of two and a half per cent, (which the contract authorizes us to do) provided you will consent to deliver the residue of the bonds immediately, and take the obligation of the Bank of the United States in Pennsylvania, to pay three-fourths, and of this company to pay the remaining one fourth of the aggregate amount, at the several periods when by the original contract they shall respectively become due.

An interest account will be kept, and the state of Michigan will be credited with interest by both institutions at six per cent per annum, from the date of the earliest coupon, which it is proposed shall be of the first of January next, up to the maturity of the instalments which shall respectively become due, and which instalments are to be drawn for on this institution, under their respective dates, by the Treasurer of the state of Michigan, at thirty days sight.

To enable us to carry out this measure, I must ask your prompt reply to this proposal, and if it meets your approval, that you will order the whole of the bonds to be sent from Detroit by a special messenger without delay.

I remain, respectfully,
Your ob't serv't,

w E. R. BIDDLE, V. P. His Excellency, Stevens T. MAson, Governor State of Michigan.

E. R. Biddle to S. T. Mason, Nov. 15, 1838.

OFFICE of THE MoRRIs CANAL AND BANKING Co.,
November 15, 1838.

To His Eccellency
STEvens T. Mason,
Gov. of the State of Michigan :

Dear Sir—We received your favor of the 12th instant, in relation to making the sales of, and the deliveries of the six percent

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