H. OF R.J

Loan to the City of Washington.

moval of the Seat of Government to the Federal City. He believed it would be removed, and he wished it, and he believed that the buildings for the accommodation of Congress must finally be made at the public expense; but he wished it to be done in an understanding and not in a covert way. Unfortunately there had already been expended between three and four hundred thousand dollars, as he conceived, to what was worse than no purpose. He did not accuse any person of having embezzled or misspent the public money, except in the extravagance of the plans which had unfortunately been adopted-97.000 dollars had been expended on the PRESIDENT's house, and it is estimated that nearly as much more will be wanted to complete it, and when done, he conceived that a house which would cost only 50,000 would better answer the purpose; about 80,000 had been expended on the Capitol, and progress was scarcely made beyond the foundation. Gentlemen might talk of elegance, of splendor, and magnificence, for people who had money to expend for their pride or pleasure; these subjects deserved consideration, but in the present state of the finances of the United States, he thought more attention should be paid to use and economy.

Considerable revenues, he observed, were now at the disposal of the Commissioners of the Federal City. If left to use the means they had at command, he hoped necessity would oblige them to contract the extravagant plans for the buildings which had been commenced; but, if the Public Treasury was once opened he should expect many future applications and heavy ones on the Public Treasury for those buildings, which, he feared, would be a lasting monument of the pride and folly of his country. He observed, that possibly he was alone in these sentiments, but he could not justify himself without expressing them, and, wishing to know if any gentlemen concu.red with him in opposition to the bill, closed with calling for the yeas and nays.

[MARCH, 1796,

per acre, to the granters, for all the reserved lands except the streets; and that the remainder of the money or securities should be paid, assigned, and delivered over to the PRESIDENT OF THE UNITED STATES. for the time being, as a grant of money to be applied for the purposes and according to the act of Congress before mentioned. From hence Mr. S. inferred that the Commissioners, who by the bill are authorized to make the Loan on the pledge of the lots, hold no property in the City of Washington, except the streets, squares, and sites of the public buildings; that the residue of the lots are not held in trust for the United States, and of course cannot be mortgaged by them, and that the Government had only a right to the proceeds of the sales. This construction is authorized by the remarkable difference between the expression of the trust so far as relates to the lots directed to be conveyed to the Commissioners, and those directed to be sold.

It is also authorized by the provisions of the act of 1790, in careful conformity with which the deed appears to have been drawn; and which empower the Commissioners to receive grants of lands for the sites of the buildings, and of money for the purpose of erecting them. It was clear, therefore, that the bill assumed too much when it undertakes to mortgage the lands, and that all really in our power would be to pledge the funds arising from the sales after they shall be paid over to the PRESIDENT. But if these lands are at the disposal of the United States, then, for the security of the Government, the bill should go further, and direct them to be conveyed, in the first instance, to some responsible officer of the Government. The trus tees who have at present the legal title to these lands. can in nowise be considered as officers of the Government, amenable to it in a public capacity. We cannot require of them to give security for the faithful performance of their trust. We cannot imprach them for a violation of it. We have no other reliance than on the respectability of their private characters-no other remedy than a suit in chancery, as in coinmon cases of private trusts. When they sell the land, they may pay over the money, or they may not. Even the PRESIDENT is not responsible in his public character until after the money comes into his hands. Mr. S. was aware that the Attorney General differed from him in the construction of the deed, and he had great respect for his opinion, yet when the propriety of vesting the lands in a responsible publie officer, an additional security was suggested to the Attorney General, he hesitated, and eventually declined to give the bill that shape. From these considerations Mr. S. inferred that the bill did not, in fact. give the money, or render the security it professed to offer; or, if it did, it was deficient in the provision necessary for the complete indemnity of the Government.

Mr. SITGREAVES said, he also should vote against the bill; he objected to its form and to its substance; to the form, because he thought it held out a delusive appearance of security to the money-lenders, and of indemnity to the United States, by pro fessing to mortgage lots in the city of Washington, which, he contended, are not at the disposal of the Government. By the deed of trust, which had been read on the former debate of this bill, it appeared that all the lands in the Federal City had been conveyed by the individuals who formerly owned them, to trustees in special trust, to wit, that so much of them as might be appropriated for streets, squares, and the sites of public buildings, should, by the trustees, be conveyed to the Commissioners [appointed under the act of 1790, for establishing the temporary and permanent Seat of Government] and their successors for the use of the United States; that the residue should On these principles he objected to the form; he be laid out in lots, one-half whereof to be recon-objected also to the substance. He did not consider veyed to the other granters, and the other half to be soll under the directions of the PRESIDENT; that the produce of the sales should in the first place be applied to the payment in money of £25

the faith of the Government as pledged, by any one act it had hitherto done, to pass the present bill; if good faith imposed no obligation on them. he was sure that prudence forbade them to do it;

MARCH, 1796.]

Loan to the City of Washington.

[H. OF R.

the value of the property. He was authorized by the Commissioner attending Congress to say, that 4000 lots had been sold for 100 dollars each, since this question had been first agitated, and it must be evident that seventy dollars a lot would indemnify Government for the amount of their guarantee. He did not expect, after an investiga lion had been had and report made, that Government would be safe in the advance of 500,000 dollars, that 300,000 could have been objected to because the lots could not be sold in a mom nt. Many things were of great value, for which purchasers were not at all times to be found. The re

by a reference to the act of 1790, no such obligation would be found to be created by it; it will appear by it that the Commissioners are empowered to purchase or accept such quantity of land within the Federal territory as the PRESIDENT shall deem proper for the use of the United States. And to provide suitable buildings for the accommodation of Congress. of the PRESIDENT, and of the public offices-and for defraying the expense of such purchases and buildings, the "PRESIDENT IS authorized to accept grants of money"-there is for this purpose no appropriation of public money nor any promise of such appropriation; no guarantee, nor any assurance of a guarantee; for the ex-marks of the gentleman from Pennsylvania, on pense of the removal of the public offices an appre- the law of this case, might, from the obscurity of priation is made; and this provision shows that no the subject, he said, have some weight. He would, other expense to the Government was contempla- therefore, notice them. He objected to the form ted; those who were members of the Congress of of the bill, because it was a deception of the public 1790 know the fact to be so, that the proposed and might be so on the United States. The gentlegrants of the States of Virginia and Maryland, and man had questioned the power of Congress to conof individuals, were expected to be competent to trol the disposition of the lots and had given it as the object, and that such an expectation and his opinion it could not be done. Mr. N. was of assurance was a condition on which the law opinion that the United States being alone (after passed; a condition not indeed expressed in the the payment of 15 or 20,000 dollars to the original act, but which for that reason we are not the owners of the lots on which the public buildings less bound to respect; a condition the breach are erecting) interested in the proceeds of the sale, of which would have all the aggravation of a vi0- Congress must have a control over the sales themlation of confidence. The Government therefore selves. This was agreed to be the opinion of the not being pledged to the object of the bill, he con- Attorney General, who attended the committee. sidered the House as restrained by every consider-The gentleman from Pennsylvania had said, if ation of prudence from acceding to it. Any gentleman who would take the trouble, as he had done, to examine the papers on their table would dis cern that the extent of the city, the distribution and the plans of the public buildings. had been predicated on a scale of magnificence, the eventual expense of which was not within the reach of calculation, or even of conjecture; would it be proper then for Congress by passing this bill to give ground for an opinion that the United States were to adopt and to become the foster-lather of those projects? Gentlemen had affected to consider the proposed measure as one which could not involve the Government; but a guarantee implies in itself the possibility of an eventual loss; it necessarily implies a supposed deficiency in the security to be guaranteed. If the lots in the Federal City are themselves a sufficient security for the proposed Loan there could be no occasion to call in aid the faith of the Government. The bill therefore ought fairly to be considered as a grant of money on the part of the United States for the purpose of prosecuting the public buildings in the City of Washington, and if they once began to grant money for this purpose, he asked, when they were to stop? He would venture to say, never, if their grants were to keep pace with the necessities of that institution; he believed the law of 1790 never would have passed if the most solemn assurances had not been given that no such application would ever be made to the Government; and he therefore felt himself bound to oppose the bill.

Mr. NICHOLAS was not willing to trouble the House on this business. He would, however, make a few observations on what had fallen from the gentleman from Connecticut, with respect to

this was the case the bill was wrong, for it should have required a conveyance of the lots to some responsible officer of the Government to have made Government secure. If the management is already in the hands of an officer of Government, and the management of the property can be controlled by law, we have all the security which could be obtained by the conveyance spoken of. If gentlemen attended to the bill, they would find that this property is in the hands of a responsible officer of the United States; for the trustees cannot make a conveyance but by the consent of the PRESIENT Of the United States, so that he, in effect, is himself the trustee, and they could not have better security. But he would for a moment take the gentleinan's doctrine as true. What then? The PRESIDENT must be considered as a private person in disposing of the lots. It was agreed that as soon as money was received it went to the PRESIDENT, in his public character, and he was answerable for the application of it to uses prescribed by law. It would follow, that he might abuse his power in the first instance, he might sell the property for less than it was worth. If the gentleman's doctrine was true, the United States would have no tie upon the PRESIDENT to produce a fair sale of the lots, but what arises from his regard to reputation and his regard to his private fortune, which would be answerable for his conduct. He hoped there was no danger of having any man at the head of the Government on whom these ties would not be sufficient. But Mr. N. did not consider these observations as necessary, for he considered the gentleman's real opinion as unsound.

The arguments of gentlemen themselves were sufficient ground for the present guarantee. They

H. OF R.]

Loan to the City of Washington.

Mr. HILLHOUSE Concurred in opinion with the Attorney General on this subject. He said the money-lenders could not call upon the United States for their money, until the lots shall have been sold, and there remains a deficiency, and there is little chance of the PRESIDENT's selling the property for less than it was worth. And though they could not control the sale of the lots, it was the money-lenders who ran the risk, and not them; nor was there any occasion for the United States to take care of the money-lenders, they would take care of themselves. The bill was now on safe ground; the sum of the guarantee having been reduced from $500,000 to $300,000. He was under no apprehension that the United States would even be called upon for a single shilling. And if they could give facility to the erection of the public buildings, they ought to do it. They ought not to throw obstructions in the way. He did not consider the House as pledged for any thing more in passing the present bill than the bill purported. He wished it now to pass, as his former objections to it were done away.

[MARCH, 1796.

say sufficient money has been given for complet-ciple they might guaranty loans for all the cities ing the buildings, if it had been properly expend- in the Union. Why a Loan for the City of Washed. If the property had been squandered, was it ington in particular? Was there any reason why the fault of those, who gave it? When gentle- the different cities in the Union should be taxed inen, therefore, say that enough had been given, for that city? Was it meant that Government if there were any contract, such as had been con- should go through with the business, and see all jectured to exist, it proves it to have been fulfill-interior improvements properly finished in this ed. It was said they had no claim upon the United new city? Nothing was mentioned in the bill for States. But did not the United States say, "this which this money was wanted. Instead of finishis a proper situation for Government?" If it were ing the public buildings, it might be used for pavto go there it was certainly because it was for the ing, lighting, or otherwise improving the city. Mr. general interest, and if there were no funds, they S. observed, that it was with Government as with must find them. But they were not called upon individuals, the facility of borrowing money trefor money. They were asked to guarantee a quently led to ruin. But it was said the lots were Loan to prevent the waste of those funds which worth a great deal more than they were asked to had been furnished by States and private persons. guaranty. He was of a different opinion, and he He hoped no doubt would, therefore, remain on was afraid gentlemen would find themselves disthe subject. appointed in that particular. Speculation, he thought, had been at the highest pitch. No sooner was it announced that Government was to go to this new city at a certain period, than the cry was immediately raised that commerce would flow into it from all quarters; that it would become the centre of all the property in the Union; that Ambassadors would build great seats there; that it would be every thing that fancy could picture as delightful. What was London, Paris, or all the cities of the earth compared with this city! What, said he, has been the consequence? What might have been expected and what will happen in all similar cases, public opinion with respect to this city will probably fall as rapidly as it rose. But, said he, lots in this city had been objects of bargain and sale in Europe. Gentlemen go there and say, "This is to be the greatest city on earth, the lots are, it is true, somewhat high, but they will be ten times higher." It was astonishing, he said, to see and hear the exaggerations which had been circulated with respect to this city. He himself had seen in a London paper, an account stating that there was already 7,000 houses built there. Persons in Europe, believing these representations, had given high prices for these lots, in the same way as they had been induced to give high prices sometimes for very indifferent lands. Speculation now, however, being in some degree flat, it must be raised by the present bill. The public must be informed that Government will take this city upon their own shoulders, and it will be asserted that the United States will take up this city as the Czar Peter took up Petersburg. If any foreigner were to embrace this idea, would he not find himself probably miserably deceived, in the result? But, suppose the sum proposed to be borrowed were to be employed in finishing the public buildings intended for Government, how degrading would it be to go into Europe to borrow money to erect these buildings? If he had studied to find out a plan of degrading the honor of the country, he could not have hit upon one more humiliating. What would be thought at Amsterdam, when the United States were borrowing money to erect houses for the different Departments of their Government to meet in. If money was wanted for this purpose, why not raise it by taxes? The ease with which money might be borrowed had a ten

Mr. RUTHERFORD hoped, since the bill had been amended, it would pass by a great majority; for Congress to throw cold water upon the proceeding now, it would be unjustifiable. The minds of the people were drawn towards the Federal City, and property would advance in price; but if Congress should defeat the operations of the Commissioners, it would operate to the disadvantage of the Union.

Mr. SWANWICK sail. if he thought with the gentleman from Connecticut, last up, that the United States were not likely to be called upon for any part of the money which they were about to guaranty, the measure would have received his approbation; but he did not view the subject in the same light with that gentleman. He thought they should have to pay the whole sum, and that 300,000 dollars would not be the whole of what that House would be called upon to provide, if the bill before them was passed. How could they say at what sum they should stop? Was the bill entitled "ap act for providing money for finishing the public buildings in the Federal City ?" No. It was an act for guarantying a Loan for the use of the City of Washington." On the same prin

MARCH, 1796.]

Loan to the City of Washington.

[H. or K.

Mr. MURRAY Would remark, that the very point in dispute had been taken for granted. It had been said, the call for a guarantied loan indicated in itself a consciousness that the lots were not

dency to stupify all exertion, and the end of it would be, that the whole of their revenue would go to pay the interest of their debts to foreign coun tries. It was the opinion of most thinking men on the subject, (and the PRESIDENT had wisely recom-worth the sum to be borrowed upon their credit. mended the measure for four successive years) that This he would explicitly deny. On the contrary, their Public Debt should be extinguished with all there is a full and well-grounded conviction that possible speed. And what, he said, was the con- the lots upon which the credit is asked would at duct of that House? They say they will pay every this moment sell for more than the sum in view: attention to the subject, but still incur fresh debt. and that, therefore, as mere money-lenders, the The report of the Committee of Ways and Means loan would be a safe bargain. It was likewise was before them, by which they saw how their clear, almost to demonstration, that if the immefinances stood. He feared they should soon have diate pressure for money were removed, that must nothing but bills for Loans before them, from find- otherwise force the lots into the market, the opeing it so much more easy to borrow than to raise ration of the loan. when properly laid out in the money by taxation. They were following a prac- improvement of the city, will add value to the tice which had brought Great Britain to the brink lots pledged, and thus increase the resources of of ruin. If the lots, said Mr. S., ever would be of the borrower in such a manner as that he not value, it was now; for, in matters of speculation, only will be enabled to discharge the sum borrowthe more uncertainty there was, the greater room ed, but also have a great and valuable residuary there would be for conjecture and calculation. as a fund, from which the City of Washington, He thought it very improbable the property should without internal taxes, may be embellished. As increase in value. For when the Government shal: the United States will have exclusive jurisdiction be removed, it may be found that from the short- within that city, it was deeply their concern to ness of the sessions of Congress there, the advan-husband their resources so as to make them actages which they would confer would not be very complish their present ends and their future obgreat, and consequently, that much of the specu- jects. Expose all the lots to sale at present, and, lation which had been formed of the great pros- though you will get the sum which may be imperity of that city, had been founded in error. He mediately necessary, you strip the estate entirely would not be understood to say that the City of of all resources in future but those of taxation. Washington might not have a gradual increase If the Government feels any interest in their own and consequence like that of any other city in the affairs, for the affairs of that city as a peculiar Union, but not that it would grow as it were spon- scene of their jurisdiction, are more or less their taneously in the manner some gentlemen seemed own, they will adopt, towards that eity and its reto expect it. For the reasons he had mentioned, sources, those maxims which, in private, and, inhe should vote against the passing of the bill; and deed, public character, constitute a sound economy. though the bill should be carried by a great majority, he should not regret the vote though he should be found alone on the occasion.

He had never anticipated the support of the gentleman from this city. [Mr. SWANWICK.] but he confessed he did not expect so warm an oppoMr. HAVENS said, the bill carried a refutation sition to this bill from that gentleman. He has of the argument used on its support in the face of taken great pains to discredit the value of properit, viz: that the lots are worth more than the mo- ty in the city, and has painted the city itself as an ney proposed to be guarantied. If the money-airy fiction of speculation, a mere sort of castlelenders believe this to be true, there would be no building dream, such as man oversets when he need of a guarantee. This guarantee being asked rises out of bed from the reveries of the morning. for, convinced him that it was not believed that It is true, he observed, that the scheme is a specuthe lots would bring the money. He had taken lation-the whole of life and its concerns, persome pains to find whether the price the land haps, are no more; but it is speculation rising would command will be likely to repay the sum from a concurrence of events and local circumproposed to be borrowed, and could not discover stances more favorable to a profitable issue, than any well-founded reasons for the belief. Every any other that had of late presented itself to men gentleman must be sensible that if they engaged of genius and enterprise. It was founded on nofor $300,000, they engaged the Government for thing airy but to the mind that could think lightly the whole sum. But what was meant when it of the sanctity of public faith; nothing groundwas said that there was some kind of obligation less, unless to those whose interests led them to go to this new city at the time mentioned? He from a fair calculation of those immense advancould read no such contract. The buildings were tages that unite themselves in the centre of the to be completed. When he was upon a commit-Union, on one of the noblest navigable rivers in tee on another subject, he made inquiry whether, if the buildings intended for Congress were not completed, they might not be accommodated in some other way; and, if his information was right, before the year 1800, there would be parts of the city finished in which they might be accommodated; or, if not in that city, in Georgetown, which lies near it? He should vote against the bill.

the world. It was a speculation bottomed for the security of its profits in the faith of the Union. It is impossible that the gentleman, who is really so excellent a judge of good speculation, of commerce, and of city property, and whose property so adorns this city, and so largely contributes to its elegant amusements-for that circus and that hotel in view belong to the gentleman-should

H. OF R.J

Loan to the City of Washington.

[MARCH, 1796.

read the clause which says the PRESIDENT shall be authorized to receive grants of land and money.] The present bill was much at variance with the original act, for it makes the United States become speculators, and guaranty a large sum in a foreign country at six per cent. on the credit of the lots. He could not agree to this partnership of speculation, which the Government was about to enter into, because he should not himself choose to risk his private property in to place the public on ground he should not like himself. But, it was said, good faith required that they should guaranty this loan, because they had said Government should go there at a certain period. But this was only said conditionally, if proper buildings were prepared for their reception. It was not expected they should, at all events, go there and sit under the canopy of Heaven.

seriously believe that the Federal City is an airy speculation. It must have been in the moment of poetical indulgence, and been determined in the cast of character he meant to assume in the debate, to give us "T'other side of the Gutter," which he understood was an excellent dramatic thing, as it was played in the gentleman's own circus. He lamented that that circus was not now in the Federal City. He observed, that were the question at this moment to be, in what part of the Union shall the permanent Seat of Gov-such an adventure, and thought it a good rule not ernment be? he believed that it would be placed where it is contemplated, at the Federal City. It great views pointed out the banks of the Potomac, in Maryland, to be the proper place under such a question, would it not be extremely natural for the Government, not perhaps to give, but to lend money, in aid of private enterprise, for the very rational purpose of living in houses, in preference to holding their sessions, like Druids, in the open air or under trees? If houses were deemed necessary, if a thousand accommodations were essential to the settling of the Government there, what would be the duty of Government? Certainly to promote, not to discourage the growth of a city, and to lend money to attain | that end.

The objections which he had made to the borrowing of money, did not seem to have the same weight with other gentlemen which they had with him. He said there would be a loan to be negotiated for the use of Government, and he was apprehensive the one might interfere with the other. This step was only the commencemen: of the business. He remembered when £20,000 Mr. PAGE said, he would vote for the bill, be- were granted for building the house of the PREcause, if it were not passed, it would give the SIDENT, in Philadelphia, it was thought a very large public an idea that they did not mean to go there sum, but n arly twice that sum had been asked at the time appointed. He was no friend to the for since, and the house was not yet finished. So having a district of ten miles square, nor to the it would probably be in this case. They were magnificence displayed in the PRESIDENT's house. applied to at first for $500.000, but now the sum He believed they need not be under any appre- was reduced to $300.000. He expected this would hensions of loss from the present guarantee; but, not be the last call. He was against the principle if the bill was rejected, the palace and other pub- of the bill. He would not make any further oblic buildings erecting there would come to nothing.servations on the subject, nor would he have risen Mr. SWANWICK rose, and remarked upon what had fallen from gentlemen in reply to his observations. When he mentioned the removal of the Government, he did not mean to make any allusion to Philadelphia, or to the value of property there. He said, the gentleman's opinions were as erroneous with respect to the present as to the future. They seemed to ascribe the prosperity of Philadelphia to the residence of Congress there; whereas, if they would look around them, they would see more rapid advances in some other places which had not had the same advantage. A gradual rise had, for some time, been taking place in all parts of America, owing to a great influx of money and increase of commerce. Having this opinion with respect to Philadelphia, he felt perfectly indifferent about the removal of the Government-it would not take one cubit from her stature, nor from the value of the land to which the gentleman from Maryland had alluded on T'other side of the Gutter."

again, had it not have been to notice some rather personal remarks which had been made on the sentiments he had before expressed.

Mr. SITGREAVES said, it was to be expected that the members from Pennsylvania would, in giving opposition to this bill, have to meet the reflections which they had heard. He was, for his own part, not surprised at them, nor, indeed, was he displeased. He would submit to them, and to much more, when conveyed with so much pleasantry as had been used by his friend from Maryland, [Mr. MURRAY.] But the members from Pennsylvania would ill deserve the confidence reposed in them by their constituents if they should suffer such considerations to mingle with the discharge of their public duty, or if they could be prevented from declaring their opinions by that greatest of all weakness, the apprehension that improper motives might be attributed to them. He could not help considering that gentlemen greatly overrated the advantages derived to the city of PhilaIt was said, that he objected to the title of the delphia from Congress sitting in it. He had read bill only. The bill, he said, contemplated a va-that when one of the Kings of England, in a fit riety of objects, consequently the money proposed of disgust, threatened the citizens of London to to be borrowed might be applied to any of them, remove his Court and Parliament to Oxford, they as he did not find it was confined to the public hoped his Majesty would not take the Thames buildings only. What was the original act for with him." And, so long as they left the Delaware fixing the future Seat of Government, of which behind them the city of Philadelphia would. he they had said so much and quoted so little? [Heimagined, feel no material loss from the removal of