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shall have an order from the Executive thereof upon their State Treasurer to exchange the same according to the rate ascertained by such State.

And whereas notwithstanding the provisions made for cancelling said old Bills of public credit, a considerable quantity of them will be unprovided for, owing as before mentioned to the events of the

war.

Resolved, therefore, That Congress will make proper provision that the possessors of the said old Bills to the amount of what shall be assigned as the Quota of such States as shall be so far in the power of the Enemy as to prevent their compliance with the foregoing Resolution shall be entitled to and have the same equity done to such possessors as shall be agreeable to the foregoing Resolution.

And whereas it is indispensably necessary for the support of public credit that whatever can affect the same shall be under the direction of one superintending power who shall be able to control and restrain whatever may be injurious thereto. And in this view and to strengthen and confirm the union of these States Congress recommended to the several States that they did not on any pretence issue Bills of public credit for their own particular use otherwise than according to the recommendations of Congress.

Resolved, therefore, That unless the particular States shall discontinue to emit bills of public credit except by a recommendation of the United States in Congress assembled, and shall not as soon as possible cancel the Bills of public credit which they have otherwise emitted, The Representatives of these States will not consider themselves as responsible for that Injustice, Distress and Disorder, which must be the certain consequence of a practice of this nature.'

Another, on the same subject, was made by Mr. [Meriwether] Smith, seconded by Mr. [William) Sharpe:

SCHEME OF FINANCE.

10. Let Congress now assume to itself the powers of the Confederation and make that act in all cases the rule of its conduct.

2o. Let Congress avail itself of the necessity which induced it to emit Bills of Credit prior to the ratification of that act, when it had not the power of making taxes productive for the support of the

1 This motion, in the writing of Oliver Wolcott, is in the Papers of the Continental Congress, No. 36, 1, folio 147.

credit of the Bills, or for the redemption of them; and also of the uncertainty of the time of redemption; as a reason for extending the time of final redemption to suit the conveniency or ability of the United States.

3o. Let Congress apportion the sum of those Emissions among the States according to their respective Quotas and ordain that there shall be paid annually in specie or those identical Bills (dollar for dollar) by each State a portion of the respective quotas until the final redemption, which portion of the Bills when received shall be destroyed by burning them; leaving it optional in the respective States at the same time, to procure and pay into the Treasury of the United States their full Quotas of such Bills, at such time and in such manner as they may think best, within the time of final redemption, providing also that Congress will pay specie for the outstanding Bills when demanded after the expiration of the time of redemption and charge the same to the delinquent State or States.

4o. Let Congress, in order to comply with the present demands for money issue 4/10!! of the Bills provided by the Resolutions of the 18 of March 1780, upon the funds established by each State, making the same a general currency by the powers of the Confederation pledging the United States as a counter security for punctual redemption. If any of the said Bills have been issued by the States, over and above the 4/10!. let it be considered as a State Emission and redeemed accordingly. Let every thing contained in the said Resolutions except what relates to the 4/10!! be repealed. Let the 4/10!!! issue with a reduction of interest according to the time of issuing compared with the date of the Bills; and let the respective States be called upon to pay into the Continental Treasury their respective quotas of the 4/10!! either in specie or the identical Bills (dollar for dollar) within the space of one year from the time of issuing to save the payment of interest by destroying them; by this means the funds created by the acts of the respective Legislatures may be abolished, and the States thereby enabled to create new funds for the redemption of other money to be emitted by Congress.

5o. Let Congress upon further emergencies, emit Bills of Credit redeemable at the end of 4 or 6 years. Let each State be called upon to pay a portion of its quota of such Bills either in specie or the identical Bills, (dollar for dollar) annually in order to redeem them.

6o. Let Congress pursue this last principle in subsequent emissions, extending the time of final redemption according to the ability of the States to pay additional annual Taxes, having regard also to any

depreciation which may arise from the superabundance of the circulating medium; which excess may always be restrained by the application of Taxes, payable in specie or the identical Bills, dollar for dollar.

7o. Let each State pass acts establishing a fund for the payment of their Quotas aforesaid pointing out the manner in which it will be productive annually; let these be transmitted to Congress and deposited in the Treasury office of the United States for the satisfaction of the public.

8o. In order to establish one general currency and to prevent the loss of credit which may fall upon the Emissions of Congress, by the deficiency of any State arising from the appropriation of its funds to the redemption of State Emissions, let a memorial be sent to the respective States representing the bad tendency of their emissions, and proposing at the same time to lend to their respective exigencies Bills emitted by Congress in lieu thereof.

9o. Let the respective States be called upon to pay punctually their respective Quotas according to the ordinances of Congress fixing the annual payments, and in case of any deficiency, without sufficient reason assigned and approved; let Congress remonstrate to the State deficient, against its conduct and demand full payment of arrears at a day certain; and if this shall not be productive of the money, let a prohibition issue against the commerce of such delinquent State until full payment be made.

10°. Let Congress call on the States for a revenue by duties &c on trade, payable in specie only to be deposited in the Treasury, and there to remain unappropriated (except for peculiar exigencies of the States) until the final redemption of the Bills emitted. Let a Receiver General be appointed in each State, to collect and pay these duties into the Treasury of the United States annually.

11°. Let a day certain be assigned for the settlement of public accounts annually, let the persons concerned settle with the Auditor General and pay their balances if any into the Treasury; let the Auditors certify to the Treasurer the delinquencies; let the Treasurer order prosecutions by an advocate in the respective States. Let judgments issue against delinquents upon motion, on ten days' notice.

Finally, Let Congress adopt and pursue this plan and be great and happy.

M. SMITH. Note, with respect to old Emissions, Congress may allow 20 years or more for the redemption of it. The faith of the United States pledged by Congress upon issuing those Bills will not be

violated by Congress. The States may avail themse ves of the Depreciation by purchase or by the payment of the Bills in taxes, in value equivalent to specie. If the States will do neither the Bills will circulate and be payable in taxes until finally redeemed thereby. Some who have lost by depreciation will have an opportunity of recovering their losses, and those who have gained by it will keep what they can. Some will make fortunes; none in future can be injured materially.

If these principles be adopted, ordinances may be directed to be prepared upon the resolutions agreed to.

Let Commissioners be appointed to liquidate the debts due from the United States by certificates according to their real value in specie, fixing the same by a scale of depreciation, and let Certificates issue for the same redeemable at the end of

years, bearing interest annually to be paid. Let these be considered as Bank stock, transferable only at the Bank or Treasury in some established form. Let funds be created for payment of this interest annually and for making provision for the principal at the day of redemption.

Ordered, That they be referred to a committee of five:

The members, Mr. [Meriwether] Smith, Mr. [Oliver] Wolcott, Mr. [George] Clymer, Mr. (Jesse) Root, Mr. (John) Hanson.

A report from the Board of Treasury was read; Whereupon,

Ordered, That on the application of John Levinus Clarkson, clerk to the Board of Treasury, a warrant issue in his favour on Thomas Smith, commissioner of the loan office for the State of Pensylvania, for twelve thousand dollars old emissions to defray the contingent expences of the several offices in the treasury department, and for which sum he is to be accountable: 2

Ordered, That the Board of Treasury agree with Mr. J. Pemberton for the rent of the house in which the President dwells.

* This motion, in the writing of Meriwether Smith, is in the Papers of the Continental Congress, No. 36, I, folio 141. The indorsement says it was seconded by Mr. (James Mitchell] Varnum.

2 This report is in the Papers of the Continental Congress, No. 136, V, folio 233.

TREASURY OFFICE April 7, 1781 The Board of Treasury beg leave to inform the United States in Congress assembled, that in execution of their Act of the 3!!inst in favor of the under Secretaries and Clerks of Office, they have given orders that warrants may be made out for the respective balances agreeable to the Act of the 16 of March last to Wit. By admitting the exchange between Money of the old emissions and specie, at the rate of 140 for one, and between Money of the old and the new emissions at 75 for one and allowing 1 and } of a dollar in the New Money for each dollar due in specie. If this proceeding should be repugnant to the sense of Congress they will please to give orders to stop it."

Adjourned to 10 o'Clock to Morrow.

FRIDAY, APRIL 13, 1781

A letter, of 9, from J. D. Mercier;
A letter, of 10, from W. Gilleylen;
A petition of Elijah Weed;
A memorial of Francis Allison; and
A letter, of 10, from E. Forman and J. Gibson, were read:

Ordered, That the petition of Elijah Weed be referred to the Board of War.

A letter, of 7, from J. Nourse, assistant auditor general, was read; 2 Whereupon,

Ordered, That the Board of Treasury take order for the payment of the balance reported to be due to the said J. Nourse, and also to the messenger and doorkeeper, as if they had been specially included in the order of the 3d instant.

A letter, of 9th, from Cha. Stewart, commissary general of issues, was read: 3

Ordered, That it be referred to the committee appointed to examine into the issues of the respective departments, &c.

1 This report is in the Papers of the Continental Congress, No. 136, V, folio 223. The indorsement shows that it was read on this day.

* Mercier's letter is in the Papers of the Continental Congress, No. 78, XVI, folio 167; Gilleylen's letter is in No. 78, X, folio 323; Weed's petition, dated April 7, 1781, is in No. 42, VIII, folio 225; Alison's memorial is in No. 41, I, folio 67; Forman and Gibson's letter is in No. 78, IX, folio 463; Nourse's letter is in No. 78, XVII, folio 135.

8 This letter is in the Papers of the Continental Congress, No. 78, XXI, folio 43.

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