whom was recommitted the petition of MATTHEW LYON, complaining of an undue election and return of ISRAEL SMITH to serve as a member of that House. The report (which had twice before been under consideration, but no conclusion come to upon it) was in the following words: "That it appears by the deposition of the TownClerk of Hancock, that there were seventeen persons in the said town who were entitled to vote; twelve of whom are stated to have been admitted in that town, and five in other towns. 66 That, by a like deposition of the Clerk of Kingston, it appears that there were in that town nineteen persons; seventeen of whom had been qualified in that town, and two in other towns. That, it does not appear that the warrants were withheld from the said towns by the Sheriff from any fraudulent intention, but the failure was accidental as to the town of Kingston; and the warrant was not sent to the town of Hancock, because the Sheriff believed they had not voted at the first meeting." And when the report was first under consideration it was amended by adding a resolution to the following effect: "That, as there appears to have been a sufficient number of qualified voters in the towns of Hancock and Kingston to have changed the state of the election, Resolved, That Israel Smith was not duly elected, and is not entitled to his seat in this House." This report occasioned considerable debate. It was defended by Messrs. HARPER, SITGREAVES, W. SMITH, and N. SMITH, principally on their being votes sufficient in the above two towns to have changed the election if they had voted for the petitioner, and on the necessity of establishing it as a principle in elections that every town should have notice of an election. It was opposed by Messrs. VENABLE, (the Chairman of the Committee of Elections,) GALLATIN, NICHOLAS, GILES, W. LYMAN, and FINDLEY. They admitted the possibility but denied the probability that the 36 votes in these two towns would have changed the fate of the election. They said there was every reason to believe the contrary; that Mr. SMITH had a majority of 21 votes; that 15 of the votes in Hancock and Kingston had voted for Mr. SMITH at the former election; that Mr. LYON, with all his endeavors to procure them, had only brought forward a petition from twenty of these persons, who declared they would have voted for him, which, if they had done, and none had voted for Mr. SMITH, he (Mr. S.) would still have had a majority of one vote. But there were affidavits from seven of these voters, declaring they would have voted for the sitting member; seven others of them refused to take any part in the dispute; and two of the voters were absent at the time of the election, and could not have voted either way. The vote was at length taken on motion of Mr. W. SMITH, and stood, yeas 28, nays 41, as follows: YEAS. Benjamin Bourne, Joshua Coit, George Dent, Samuel Earle, Abiel Foster, Dwight Foster, Ezekiel Gilbert, Henry Glen, Chauncey Goodrich, Roger Griswold, Robert Goodloe Harper, Wm. Hindman, Aaron [H. or R. Kitchell, Matthew Locke, Samuel Lyman, John Reed, Samuel Sitgreaves, Jeremiah Smith, Nathaniel Smith, Isaac Smith, William Smith, Zephaniah Swift, George Thatcher, Richard Thomas, Mark Thompson, Uriah Tracy, John E. Van Allen, and Peleg Wadsworth. NAYS.-Theodorus Bailey, Abraham Baldwin, David Bard, Lemuel Benton, Thomas Blount, Nathan Bryan, Dempsey Burges, Gabriel Christie, Thomas Clairborne, Isaac Coles, William Findley, Albert Gallatin, William B. Giles, James Gillespie, Nicholas Gilman, Christopher Greenup, Wade Hampton, George Hancock, John Hathorn, Jonathan N. Havens, John Heath, Daniel Heister, James Holland, George Jackson, William Lyman, Samuel Maclay, Nathaniel Macon, James Madison, John Milledge, Andrew Moore, Frederick A. Muhlenberg, Anthony New, Francis Preston, John Richards, Robert Rutherford, Richard Sprigg, jun., Thomas Sprigg, John Swanwick, Absalom Tatom, Philip Van Cortlandt, and Abraham Venable. The question being thus decided in favor of the sitting member, Mr. W. LYMAN proposed the following resolution; which was adopted: seat in this House as one of the Representatives Resolved, That ISRAEL SMITH is entitled to a from the State of Vermont. IMPRESSMENT OF AMERICAN SEAMEN. The SPEAKER laid before the House a letter which he had received from ten American captains, now lying with their vessels at Jamaica, complaining of the illegal impressment of their seamen by British ships of war, on which they are kept like slaves, and subjected to infectious diseases, with which the vessels of war are now visited; and stating that, until their men are set at liberty. they cannot return home. They pray for the interference of Government, since it had considered the case of their brethren in Algiers, whose situation was not worse than theirs. The letter and papers accompanying it were referred to the Secretary of State. WEDNESDAY, June 1. The bill authorizing the PRESIDENT OF THE UNITED STATES to lay, regulate, and revoke embargoes, during the ensuing recess of Congress, was read the third time and passed. PROMULGATION OF THE LAWS. Mr. TRACY, from the committee to whom was referred the bilt from the Senate, to amend an act for the more general promulgation of the laws of the United States, reported, that they found on inquiry that the Secretary of State had contracted for the printing of the laws, a circumstance, they supposed, with which the Senate were not acquainted; and it was their opinion that a speedy promulgation of the laws would overbalance the objection of the Senate for wishing the printing of the laws to be postponed till after the next session; the reasons which induced this were, they understood because the next session would complete four Congresses and two Presidencies. The report was agreed to, and the bill was read the third time, and rejected. H. OF R.] State of the Finances. [JUNE, 1796. CALL FOR INFORMATION. Mr. GALLATIN moved a resolution to the fol- Government, prior the 1st January, 1796. lowing effect, which was agreed to: balances of amounts which originated under the late 5. The amount of Debts extinguished by the operation of the Sinking Fund to the close of the year 1795, distinguishing the sums placed under each of the heads of appropriations for that purpose. "Resolved, That the Secretary of the Treasury be directed to lay before this House, within the first week of the next session of Congress, a statement of the 6. An estimate of the sums expected to be received moneys expended for the Military Establishment for from the bonds which accrued from duties on imposts, each calentar year, from the establishment of the pres- to the close of the year 1795, after deducting the drawent Government to the 1st of January, 1796, distinguish-backs and expenses of collection." ing the sums expended under each head for which specific appropriations were made; and also a statement of the expense attending the expedition of the militia to the Western counties of Pennsylvania, under the several heads for which specific appropriations were made." STATE OF THE FINANCES. [The words in the above resolution printed in italic, were words introduced on motion of Mr. GALLATIN.] Mr. SMITH, after proposing the above resolution, said he would first point out what appeared to him to be the errors into which the member from Pennsylvania had fallen, and then exhibit a cor- [Here Mr. SMITH was interrupted by Mr. VEthis view of their finances was in order at this NABLE, who inquired of the SPEAKER, whether time. The SPEAKER declared Mr. S. in order while he was producing reasons for introducing the resolution on the table.] Mr. W. SMITH rose and said, it would be recollected that when the bill for paying the debt to the Bank was under consideration, a gentleman from Pennsylvania [Mr. GALLATIN] had gone into a minute examination of the finances of the United States, from which he had endeavored to prove that there had been an increase of the Public Debt, of five millions of dollars, under the present Government. Mr. S. said, that he had come to the House the next day prepared to reply to the if he had been somewhat out of order, as he was Mr. SMITH Continued, and observed, that even gentleman's statements, when to his great surprise, the House determined to postpone the con-ble statement of their financial situation which endeavoring to correct an erroneous and deplorasideration of the Bank bill, and take up the subject had gone out to the world, he presumed no friend of the Treaty. A few days after, the gentleman of the prosperity of this country would have from Pennsylvania withdrew altogether his opposition to the Bank bill, and thus Mr. S. was de- thought of interrupting and preventing him from prived of an opportunity of refuting the statements expected to have been heard by every person of so doing; on such an occasion he should have which had been introduced. This statement had that description not only with patience, but with since been published, and as it appeared to him to contain important errors, tending to mislead, he pleasure. could not, consistently with his duty, suffer the session to close without pointing them out. He had for some time past watched for a suitable opportunity to effect this purpose, but had been prevented by the great pressure of public busiAs this was the last day of the session, and there was now an interval unemployed, he would propose a call on the Treasury Department for information, to be laid before the House at the next session, on the points in contest, and would proceed to some observations calculated to detect the errors into which the gentleman from Penn-Answer. The Loans received were as sylvania had fallen, and at the same time to evince the propriety of agreeing to the proposition which was now submitted. ness. Mr. S. here read his resolution, as follows: Resolved, That the Secretary of the Treasury be directed to report to this House, the next session of Congress, a statement or statements exhibiting 1. The amount of the Foreign and Domestic Debt of the United States, including the assumed Debt, on the 1st of January, 1790, and 1791, respectively. the gentleman from detecting error, but he did not Pennsylvania, in order to make out an increase of revenue at follows: - $2,700,000 00 $607,950 78 4,007,950 78 1,300,000 00 2,707,950 78 Leaving what he styles an excess of 2. The amount of the said Debts on the 1st of Janu- Instalments French Debt ary, 1796. 3. The amount of the anticipations at the close of each year, from the year 1791 to the year 1795, in clusive. 4. The amount of the specific Debts incurred by the late Government and paid at the Treasury of the present Government, and of the moneys arising from Answer. Both these debts were incurred under the former Government: the Funding act did not pass till 4th August, 1790: the act for raising an adequate revenue did not pass till 10th August, 1790; those revenues could not come into the Treasury till the ensuing year. How, then, could the interest of 1790 be paid? It is absurd to call that interest an increase of debt under the present Government; it was a part of the debt contracted under the old Government. This item is therefore to be expunged. 4thly. He lastly states, as an increase of debt, under the present Government, the interest accruing on the assumed debt, during the years 1790 and 1791, amounting to 1st Error. Excess stated by Mr. G. in 1794 Real excess, only Difference 2d Error. Excess stated by Mr. G. in 1795 Real excess only Difference - $2,700,000 00 1,723,615 52 976,384 48 1,500,000 00 382,674 00 1,117,326 00 The increase of debt by the anticipations of 1794 and 1795, was only $2,106,289 52 instead of $4,200,000, as stated by Mr. G. The two first items of his statement are therefore erroneous by the sum of $382,674 00 3d Error. Improper charge of the interest on Foreign and Domestic Debt for 1790 500,000 00 900,000 00 $1,400,000 00 $1,050,00 00 Answer, 1. The Funding act passed 4th August, 1790. It was impossible to make the necessary arrangements in time to fund the State debts, before the end of the year 1791. 2. The act providing the requisite funds for the assumed debts did not pass till 3d of March, 1791, and those funds could not come into the Treasury before the year 1792 but, 3. This interest was charged to the States, in the settlement of accounts between the United States and the several States. Being therefore interest, which formed part of a debt contracted before the existence of the present Government, which could not possibly be discharged during the years 1790 and 1791, and which 2,093,710 48 1,400,000 00 To the above may be added, a material misstatement, in respect to the Sinking Fund. He credits the Government with only the sum of $957,770 65; because, as he says, that sum alone was applied out of the actual resources of the United States to the purchase of the debt; but he ought to have fairly stated that, by the judicious application of that sum, a very considerable amount of debt had been redeemed. The stock standing to the credit of the Commissioners of the Sinking Fund on the 18th day of December, 1795, arising from purchases, amounted to $2.307,661. Part of this being purchased with moneys drawn from loans, it is impossible to say with exact precision what portion has arisen from actual domestic resources; but it must be considerable, because it appears that only the sum of $522,925 has been purchased with moneys drawn from loans. This constituting only a small part of the amount actually purchased of the debt, it follows, that about the sum of $1,700,000 must have been redeemed by the aforesaid sum of $957,770 65, and the interest accruing thereon. It must be remembered that, as it was impossible to pay the interest of the Domestic and Foreign Debt for the year 1790, the Funding act not having passed till 4th August of that year, the late Secretary of the Treasury, Mr. Hamilton, recommended the judicious plan which Congress adopted, of constituting a Sinking Fund with the surplus revenue of that year, amounting to the before-mentioned sum. The application of that sum in purchases produced two very beneficial effects: the Government were ena H. OF R.] State of the Finances. [JUNE, 1796. bled to buy up the debt considerably under par, which ought to be carried to the credit of the and, by purchasing, gradually raised the value to United States, he had not stated it among their par, which was an advantage to the community. available funds, because it was uncertain how It appears, from the report of the Commissioners, soon the United States might get possession of that a great part of the sum redeemed was obtain-them. He alluded to the sums or balances due ed considerably below par, and that in the course by the debtor States in consequence of the settleof four or five years the sum of $957,770 65 has ment of accounts between the several States and yielded the sum of $1,700,000, in funded stock, the United States. the greatest part of which either now bears or will shortly bear an interest of 6 per cent. Now, as the gentleman from Pennsylvania had thought proper to charge the present Government with the interest accruing on the Domestic and Foreign Debt during the year 1790, as an increase of debt, it would have been but fair in him, according to his own mode of statement, to give the Government credit for the whole sum produced by the welltimed application of the surplus revenue of that year. This sum amounted, on the 31st December, 1789, to $3,517,584. Add the interest thereon to 1st January last, at 4 per cent., (the rate of interest allowed by the United States to the creditor States on their balances,) $844,218. Total on 1st January last, $4,361,802. As the United States have assumed and funded that sum to the creditor States, in behalf of, and as guarantees of the debtor States, it may properly be considered as a just claim against the latter, and he hoped measures would be taken at the next The difference between the sum which that session to place this business on some footing of surplus may fairly be estimated to have produced adjustment, which would indemnify the United and that surplus itself, may be charged to the gen-States for these advances, without being materialtleman from Pennsylvania as an omission, and ly inconvenient to the debtor States. another error, amounting to about $750,000 00 Which, added to the before noticed errors, of makes an aggregate of errors and misstatements, of 4,543,711 00 5,293.711 00 About equal to the sum at which he states the increase of debt. But, even taking his statement respecting the excesses of expenditures, as just and correct in all its parts, and what does it amount to? Why, that from the year 1793 to 1796, the expenses have exceeded the income by the sum of $2,800,000; and, if we set off against that excess the sum of $1,200,000, expended in suppressing the Western insurrection, the loss of revenue for five years in the Western counties by combinations against the officers of the revenue, (which occasioned that insurrection,) and the further sums expended in stationing troops in those counties to prevent another insurrection, and we shall nearly balance the gentleman's account. Mr. S. said, that having pointed out what appeared to him to be the errors of the gentleman's statement, he should proceed to exhibit his own view of the real situation of our finances. The question whether the Debt of the United States had increased or diminished under the administration of the present Federal Government, would, he said, be fairly answered by the following statements, which exhibited a comparative view of those Debts as they existed on the 1st day of January, 1791, and on the 1st day of January, 1796: 1st. The Public Debt on the first day of January, 1791, consisted of the following particulars: The Debt due to France The Debt due in Amsterdam The Debt due to Spain $8,091,753 52 3,831,627 03 250,382 50 231,975 81 The Debt due to foreign officers To discharge the pecuniary obligations of the United States on the 1st of Jan- - 77,231,277 13 Taking, however, the authentic statement, as collected from official documents, it appeared that the excess was, instead of $2,800,000, only $706,147 39, notwithstanding the very great and extraordinary expenses the Government had incurred since the end of 1793, in suppressing the insurrection, in negotiations to preserve our neutrality, in negotiations with the Mediterranean Powers, in the fortifications of our harbors, supplying our arsenals, building frigates, and carrying on very expensive operations on the frontiers against the Indians. And against this small ex-. cess, was to be set off a considerable part of the proceeds of the Sinking Fund, and the gain which the Government had made by the acquisition of Bank stock, calculated at half a million of dollars; and the Government had, moreover, commenced the redemption of the debt, and had paid off, on [Including near $4,000,000 for bathe 1st of January, 1796, $560,000, on the princi-lances to creditor States and now due pal of the six per cent. stock. to the United States by the debtor 2d. Of the Public Debt on the 1st of January, 1796 The Foreign Debt, including the in stalment which fell due on the 1st of The capital of the 6 per cent. stock on Mr. S. observed, that there was another item States.] $12,200,000 00 29,310,856 86 14,561,934 41 19,569,909 63 The sum first mentioned being deducted from $85,326,422 79, being the apparent amount of Debt due on the 1st January, 1796, exhibits an increase of Debt amounting to But against this apparent increase of Debt the following sums are to be opposed, viz: The stock actually purchased, redeem State of the Finances. 176,000 00 1,382,837 37 6,200,000 00 75,984 52 [H. or R. 1,848,900 00 Mr. S. thought he was therefore warranted in saying, that, instead of an increase of debt of five millions, there was, notwithstanding all the difficulties and obstructions which the Government had to encounter, an excess in favor of the Government of two millions. However, he did not wish to rest this statement upon his own authority; he was willing to confess that he might be as much biased by his attachment to the Government to represent things in too favorable a point of view as others might be to exhibit them under their most unfavorable aspect. He had, therefore, brought forward the resolution which he had read, in order that the House might, at the next session, be in possession of the fullest information on so interesting a subject. 85,326,422 79 $8,095,145 66 Mr. GALLATIN said, that as the subject which had given rise to his former observations on the state of our finances, had been repeatedly before the House since that time, the remarks made by the gentleman from South Carolina having, upon those debates, been omitted by him, now, on the very day of adjournment, came certainly unexpected. He had not by him a single paper or document he could apply to, and he must therefore ed, and vested in the Sinking Fund $2,703,481 99 suffer several of the observations of that gentleman The instalment of the Foreign Debt, which fell due in June, 1795, and now paid The stock of the Bank of the United States held by the United States, valued only at par The instalment of the 6 per cent. stock Debts of the late Government paid in to pass without an investigation of their accuracy. Yet, as he must necessarily make a reply im400,000 00 mediately, it being the only opportunity he could have during the session, he would proceed, unprepared as he was, as he thought that he had it fully 2,000,000 00 in his power, from the very statements just made by the gentleman, to show that that gentleman had not disproved a single fact that he had himself ad560,000 00 vanced on that subject, and that the real difference between them would be found to be solely on matters of opinion. 445,860 55 4,000,000 00 10,109,342 54 He would premise what he had to say. by observing that the gentleman from South Carolina held in his hand his [Mr. G.'s] statement, as printed in the newspapers, that he had had time enough to reflect on the subject, and had himself chosen the moment of his attack; that, therefore, prepared as he was, he must have had it in his power to detect the grounds of error of Mr. G.'s statement, if any; yet that gentleman, instead of disproving in a direct way that statement, had only attacked the results, by introducing new statements, con$2,014,196 88 structed on different principles, and which it was difficult, if not impossible, to investigate upon a moment's warning. $1,200,000 00 1,000,000 00 2,800,000 00 The two first items in Mr. G.'s statement which the gentleman from South Carolina represented as erroneous, were the excess of expenditure beyond the receipts before the year 1795, and during that year. The mode which Mr. G. had adopted on that head was this: He had taken on one hand the aggregate of all the sums received in the Treasury from our own resources, rejecting all that was procured by loans, either foreign or domestic; and, on the other hand, the aggregate of all the sums paid for current expenditures and interest on the Public Debt, rejecting all that was applied to the payment of the principal of any part of the Public Debt, or loans, either foreign or domestic. It was self-evident, that if our current |