Public Credit. absolute certainty, that, to a country so situated, credit is peculiarly useful and important. If the United States observe, with delicate caution, the maxims of credit, as well towards foreigners as their own citizens, in connexion with the general principles of an upright, stable, and systematic administration, the strong attractions which they present to foreign capital will be likely to insure them the command of as much as they may want, in addition to their own, for every species of internal amelioration. Can it be doubted, that they would derive from this, in a course of time, advantages incomparably greater than any, however tempting, that could partially result from a disregard of those maxims, or from the exercise of a questionable right, which should even appear to derogate from them? Credit is an entire thing. Every part of it has the nicest sympathy with every other part; wound one limb, and the whole tree shrinks and de cays The security of each creditor is inseparable from the security of all creditors. The boundary between foreigner and citizen would not be deemed a sufficient barrier against extending the precedent of an invasion of the rights of the former to the latter. The most judicious and cautious would be most apt to reason thus, and would only look for stronger shades of apparent necessity or expediency to govern the extension. And, in affairs of credit, the opinions of the judicious and cautious may be expected to prevail. Hence the Government, by sequestering the property of foreign citizens in the public funds, at the commencement of a war, would impair, at least, if not destroy, that credit which is the best resource in war. It is in vain to attempt to disparage credit, by objecting to its abuses. What is there not liable to abuse or misuse? The precious metals, those great springs of labor and industry, are also the ministers of extravagance, luxury, and corruption. Commerce, the nurse of agriculture and manufactures, if overdriven, leads to bankruptcy and distress. A fertile soil, the principal source of human comfort, not unfrequently begets indolence and effeminacy. Even liberty itself, degenerating into licentiousness, produces a frightful complication of ills, and works its own destruction. It is wisdom, in every case, to cherish whatever is useful, and guard against its abuse. It will be the truest policy of the United States, to give all possible energy to Public Credit, by a firm adherence to its strictest maxims; and yet, to avoid the ills of an excessive employment of it, by true economy and system in the public expenditures; by steadily cultivating peace; and by using sincere, efficient, and persevering endeavors to diminish present debts, prevent the accumulation of new, and secure the discharge, within a reasonable period, of such as it may be, at any time, matter of necessity to contract. It will be wise to cultivate and foster Private Credit, by an exemplary observance of the principles of Public Credit, and to guard against the misuse of the former, by a speedy and vigorous administration of justice, and by taking away every temptation to run in debt, founded in the hope of evading the just claims of creditors. As an honorable evidence of this disposition, and with a view to quiet the alarms which have been excited, and to silence, forever, a question which can never be agitated without serious inconvenience, the Secretary of the Treasury, in the last place, respectfully submits: That there be an express renunciation, by law, of all pretension of right to tax the public funds, or to sequester, at any time, or on any pretext, the property which foreign citizens may hold therein. This will be particularly essential to the success of the plan for converting the foreign into domestic debt; as the present contracts for the Amsterdam and Antwerp debt contain an equivalent stipulation, and there is no prospect that the creditors would consent to a change, but upon the condition of a like stipulation. In the commencement of this report, it was the intention to submit some propositions for the improvement of the several branches of the public revenue; but it is deemed advisable to reserve this part of the subject for a future communication. All which is respectfully submitted. ALEXANDER HAMILTON, Secretary of the Treasury. Amount of princi. Six per cent. stock. Deferred stock. pal of unfunded Debt. Three per cent. stock. Total amount. A.-Statement of the Domestic Debt of the United States on December 31, 1794. Description of Debts. Public Credit. amount of said stock which had been purchased or redeemed on the last day of December, 1794 $17,912,138 01 $8,538,228 97 $12,275,347 55 $38,725,714 53 Funded Domestic Debt, to the credit of States, in pursuance of the act of Con gress of May 31, 1794 2,345,056 00 1,172,528 00 703,516 80 4,221,100 80 Funded Domestic Debt, purchased and redeemed to the last of December, 1794 668,700 38 752,190 64 415,415 66 1,836,306 68 Total of Funded Domestic Debt 20,925,894 39 10,462,947 61 13,394,280 01 Funded Assumed Debt, exclusive of what had been purchased or redeemed on the last day of December, 1794 Funded Assumed Debt, which had been purchased or redeemed on the last day of December, 1794 212,462 04 119,808 88 Total of Funded Assumed Debt 8,120,836 23 4,060,417 84 Total of Funded Domestic Debt on the last day of December, 1794 29,046,730 62 14,523,365 45 19,484,840 68 63,054,936 75 Funded Domestic Debt, exclusive of balances due to creditor States, and the Debt due to foreign officers, for the payment of which provision has been made, and which will pass to the credit of the Sinking Fund: Registered Debt, on the books of the Treasury, on which dividends have been made on which no dividends have been made $167,816 40 111,877 60 55,938 80 30,806 95 198,623 35 42,231 69 28,154 46 14,077 23 17,737 31 59,969 00 on the books of Loan officers 4,394 85 2,929 90 1,464 95 2,039 35 Credit on the books of the Treasury 6,434 20 44,920 95 29,947 30 14,973 65 Loan Office certificates, bearing interest on a capital of $43,500, the specie value being no more than 11,925 64 56,846 59 Estimated amount of the Domestic Debt, at the close of 1794, and of the stock which will be produced when the whole Debt has been funded DR. Public Credit. B.—The Government of France, in account current of principal with the United States. To payments made at the Treasury to May 15, viz: To balance due the United States at the close of the year 1793, exceeding the interest and instalments then due April 2 622 81 50,270 00 -50,892 81, at 1815, To payments at the Treasury, from September 3 to October 30, 1794, at interest from September 3, when the whole sum was subject to the order of the French Minister, $272,250, at 280,401 3 1 By the eighth instalment, due on September 3, 1794, of the Loan of eighteen millions 1,500,000 0 0 Epoch of November 4, 1794. DR. By the eighth instalment, due on November 4, 1794, of the Loan of ten millions Balance due to the United States on November 4, 1794, arising from payments exceeding To balance due to the United States on November 4, 1794, brought down By account of interest, for a balance of interest due on the 31st of December, on the remain- 3,199,091 0 6 To balance due to the United States on December 31, 1794, brought down DR. To interest on 112,121 livres, 4 sous, 2 deniers, being payments at the Treasury to May 1,811,959 7 10 66,748 11 6 Public Credit. 15, 1794-from May 15 to September 3, is there months and eighteen days, at 4.706 per cent. per annum To interest on 280,401 livres, 3 sous, 1 denier, being payments at the Treasury on May CR. Epoch of September 3, 1794. By interest due on September 2, 1794, on 7,500,000, remaining of the Loan of 18,000,000, at 5 per cent. per annum, one year 375,000 0 0 DR. Epoch of November 4, 1794. To interest on the balance of principal due to the United States on September 3, 1794, By interest due on November 4, 1794, on 3,000,000, remaining to that period, of the Loan Epoch of December 31, 1794. To interest on the balance of principal due to the United States on November 4, 1794, being By interest due on December 31, 1794, on the Loan of 6,000,000, at 5 per cent. per annum RESULT ON JANUARY 1, 1795. 17,248 4 0 102,751 16 @ 120,000 0 0 120,000 0 0 15,620 3 8 284,379 16 0 300,000 0 0 300,000 0 0 The Government of France in account current with the United States, on January 1, 1795, DR. To balance due to the United States on January 1, 1795, arising from payments exceeding the By four instalments, of 1,500,000 livres each, on the Loan of 18,000,000, which will be due on the 2d of September, in the years 1795, 1796, 1797, and 1798, bearing interest from September 3, 1794, at 5 per cent. per annum By two instalments of 1,000,000 livres each, on the Loan of 10,000,000, which will be due on the 4th of November, in the years 1795 and 1796, bearing interest from the 4th of No. vember, 1794, at 4 per cent. per annum By six instalments, of 1,000,000 livres each, on the Loan of 6,000,000, which will be due in the years 1797, 1798, 1799, 1800, 1801, and 1802, bearing interest from January 1, 1795, at 5 per cent. per annum C and D.-Statement of interest payable in the year 1794, on Loans effected for account of the United States, at Amsterdam and Antwerp. Guilders. Guilders. Description of Loans. Guilders S. S. Rate of ex Amount in dollars and certs. Per contract dated March 2, 1791, at interest from March 1, 1793, to March 1, Five per cent. Loans effected at Amsterdam. Of the Loan of 5,000,000, per contracts dated June 11, 1782, at interest from June Per contract, dated June 1, 1787, at interest for the same period 6,000,000 Effected under the late Government. Per contract, dated February 1, 1790, at interest from February 1, 1793, to February 1, 1794 On 6,000,000 Per contract, dated December 14, 1791, at interest from September 1, 1793, to Sep- 300,000 00 00 12,500,000 Being a reloan of the first instalment due on June 1, 1793, on the Loan of 5,000,000, 50,000 00 00 Four per cent. Loans effected at Amsterdam. Public Credit. On 2,000,000 Per contract, dated March 9, 1784, at interest from February 1, 1793, to February 80,000 00 00 On 3,000,000 Per contract, dated December 24, 1791, at interest from January 1, 1793, to January 1, 1794 120,000 00 00 On 2,950,000 Of a Loan of 3,000,000 per contract of August 9, 1792, at interest from June 1, Of a Loan of 3,000,000, per contract dated November 30, 1791, from December 1, 1793, to December 1, 1794. Of this Loan, 950,000 have been suppressed Amount, exclusive of postage, expenses for advertising, &c. do 5,341 00 1,348,602 10 00 or dollars - 539,441 00 1,335,250 00 00 at 40 cents 534,100 00 13,352 10 00 |