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The Harry W. Bass, Jr. Library
Part Five V ed The | Harry W. Bass, Jr. Numismatic Library AUCTION SALE | PART FOUR EIGHTY-THREE | | Auction Sale 80
Closing Date June 10, 2000
March 3, 2001
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acct Cree fo!
RHODE ISLAND REPUDIATION:
OR THE HISTORY OF THE
REVOLUTIONARY DEBT
OF .
RHODE ISLAND.
IN THREE CHAPTERS.
BY JOHN W. RICHMOND.
SECOND EDITIOIN.
PROVIDENCE: SAYLES, MILLER & SIMONS, PRINTERS. 185 5.
INTRODUCTION.
As prefatory to a history of the Registered Debt of Rhode Island, we here pre- sent an abbreviated statement published in the Boston Courier, March, 1852.
RHODE ISLAND AS SHE.WAS
AND. &
rhode land as she is.
Or, A HISTORY OF THE ORIGIN OF THE REGISTERED STATE DEBT, AND T CONSIDERATION ON WHICH IT WAS FOUNDED ; THE LEGISLATION BY WHI IT WAS CREATED, AND THE LEGISLATION WHEN REPUDIATED. se The Heroes, the Patriots, and the Statesmen of Rhode Island, held the govel
ment of the State at the commencement of the Revolution.
As early as April, 1775, they raised an army of 1500 men, and in June 36 August 250, October 500, January, 1776, 250, do. 224 (Artillery,) do. 750, d 325 (as minute men,) do 750, and the same spirit existed in Rhode Island durin the war.
Armed vessels were chartered for protecting the colonies, at the risk of the colc ny, June, 1775, and placed under the command of Com. Whipple.
January, 1776, an act passed for the trial and condemnation of prizes.
March, 1776, an act for fitting armed vessels, and the establishing a Court of Ad. miralty for the condemnation of prizes.
May session, 1776, an act passed, repealing “ an act entitled an act, for the more
effectually securing to His Majesty the allegiance of his subjects in this colony and
dominion of Rhode Island and Providence Plantations,” and for altering the forms
_of Commissions, Writs, AND ProcesssEs in the Courts, and the OATHS pre- “scribed by law.
The preamble of this act charges against ‘ George the Third, King, &c., that, forgetting his dignity, breaking the compact of his illustrious ancestors, and till late- ly fully recognized by him; departing from the duties of a good King, he endeavor- ed to destroy the good people of this colony, &c., in order to compel us to submit to a most debasing and degrading tyranny.”
“Tt is therefore enacted by this General Assembly, that all Commissions for offi- cers, whenever the name of said King is made use of, the same shall be omitted, and in the room thereof shall be substituted the GovERNOR AND CoMPANY of the colony of Rhode {sland and Providence plantations. WRITS AND PROCESSES shall be altered to the same form. No instrument in writing, whether public or private, shall in the date thereof, mention the year of the said King’s reign.”
The act then goes on to give the form of oath to all officers of the State and says, “they shall be faithful to the State.”
lv INTRODUCTION.
At the close of the printed Laws of the Session, the usual “Gop SAVE THE Kin@” was omitted, in lieu thereof “ Gop SAVE TaE UNITED Cotontzs.” The entire Act as published in the Laws, covers over five pages.
If we look at this Act, the circumstances of the times when it was passed—the pop- ulation of the state not exceeding 50,000—the resources of the state, her whole real and personal property not over $10,000,000, it was an Act of more noble daring; than the celebrated DecLARATION OF INDEPENDENCE of the Unrrep STaTEs’ two months after the Borp Sranp taken by Rhode Island, in open REBELLION against the Royal Government.
As we can here give only a very abbreviated history of the warlike energy of the state, we only add—that the militia included all over sixteen years and under sixty. At times all were drawn for active duty, not exempting members of As- sembly, except when in actual session—the same additional enlistments for the reg- ular Army, continued during the war, as have been recited from April, 1775 to March, 1776.
To meet the vast expenses of the Army, in all its various eae deli” recourse was first had to the emission of a paper currency.
From May, 1775, to September, 1776, paper bills, called bills. ‘of oredit, were emitted to the amount of $300,000, and placed in the general Treasury. These bills were made a tender in payment of all debts, public and private, and were to be redeemed at the Treasury, one half in five years, and the other half in six years. They were therefore shortly in the hands of the whole community asa claim against the State.
November, 1776, committees were appointed by the New England States to meet in Providence, and confer on the exigencies of the country. They recom- mended that Rhode Island issue no more bills he credit, -but depend on loans and taxes to meet her great army expenses. oo
From December, 1776, to February, 1779, Rhode Island effected loahi to the amount of $533,333. For all this sum state notes were Big by the General Treasurer, under the authority of the General Assembly. - |
Residents of the state who absented themselves by removal to the British Prov- inces, or who passed within the British lines, were styled absentees. ‘Their es- tates were confiscated, and taken into the possession of the state, as early as Octo- ber, 1775. The act of confiscation subsequently passed, decreed, “that all lands, and all other estates of such persons, shall be forfeited to the state.” ‘ Provided — always, and be it further enacted, that all the debts due to any person from* the absentee, shall be payable out of their respective estates.”
These confiscated estates were therefore in the hands of the state a Trust Funp for the liquidation and payment of claims held by citizens of the state against ab- sentees. These claims were nearly $60,000. .
It seems little was done to perfect the payment, to creditors of absentees, for some years after confiscation. The cause of that-delay might have been, that a sure title could not be given if the property was sold. - If the country should fail to establish independence, the absentees would return, and suits for damages would be so great as to produce irredeemable bankruptcy against the subjected colony. The establishment of state governments by the treaty of peace in 1783, settled all future claims by absentees, and the state adopted her own measures against the confiscated estates. The total poverty of the state, however, prevented her for the time being, to perfect her trust, and instead of payment, in 1783, the old notes were called in and new notes given by the General Treasurer. These notes now
INTRODUCTION. . Vv
epuistitate: a portion of the present state debt—a debt which the state is bound to
pay to the uttermost farthing.
In June, 1780, the State Treasury was empty. An act passed to emit $66,666 in paper bills, funded on real estate, held by the state—these bills to be a lawful tender in the payment of all silver and gold contracts. Five confiscated estates, stated in the act to be of more value than the $66,666 in silver or gold, were pledged for the redemption of the emission. These paper bills were to be redeemed on or before January 1, 1781, at the rate of one Spanish dollar for every six shil-
lings, or in gold equivalent, with an interest of five per cent. A ara of these
notes now constitute a part of the state debt.
The aforesaid indebtedness fer “ bills of credit,” for “money loaned,” for claims against “confiscated estates,” and for the “paper bills” of 1780, were all claims against the state, and to be paid by the state. Her protection was to charge her disbursements for the general and particular defence to the United States; and subsequent historical facts clearly prove that the state was thereby paid for every outlay by her so made.
By divers acts of Assembly, state notes were given by the General Treasurer as follows, viz. : Me For half-pay to the heirs of all commissioned officers who were slain or died in the service ;’ to “disabled officers and soldiers ;” for “ stock driven from Block Island, and other exposed situations,”—such of this stock as was suita- ble was slaughtered for the army, the residue sold, and the proceeds paid into the Treasury; for “slaves who enlisted in the army;” for “boats and scows;” for “army supplies, both voluntary and those taken by impressment;” for “ deprecia- tion of pay” to a large amount; for “military services” to an immense amount. All these liabilities assumed’ ‘by the state, were charged the United States, and were held by individuals against the state. A large portion of the present state debt is founded on these notes—the first issue and the renewals having been made under the special legislation of the state.
It was well known to’the general government that Rhode Island was greatly in advance for army expenses, and to aid the state in her extraordinary exertions in men and means, frequent remittances were made the State from the United States.
__ The advances made by the state, and the remittances to her, were in the settle-
ment of the accounts in 1793 reduced to a specie basis, and settled on the state of
_ the accounts as they existed at the close of the war in 1783.
- Rhode Island is credited for war expenses, - - - $3,782,974 She-is charged back sundry payments, - - - - 1,777,608 Net balance on advancements, - Tage - $2,005,366 She is then charged her quota of war expenses, i - 1,505,755 Net balance on final settlement, « ~ - - A a - $499,611
This statement was on a consolidated specie basis, and makes the astonishing developement that Rhode Island actually contributed, during she eight years of the
war, from resources furnished by her own ses 3 ice a | a $2,005,366 And for each year more than Sie err eee lM 250,000 Being over her quota © + - - i hae - 499,611
This balance, with an interest of 6 per cent. was as above stated, based on the accounts as they stood at the close of the war, and was paid to the state, as will be hereafter stated.
It is a known fact in the financial history of Rhode Island, that a portion of the
vr INTRODUCTION.
individual claims against the state, from 1775 to 1782, were in most instances on a
paper currency, less than specie value. By divers acts of the General Assembly
in 1782, all claims, prior to that time, were ordered to be brought into the general
treasury ; the treasurer was directed to consolidate them to a specie basis, and give
new notes for that consolidated value, payable in lawful silver money. This was done to the letter. |
It is also a known fact, that after the close of the war, by act of Assembly in 1786, another issue of paper bills was emitted, and that by acts of Assembly state notes were ordered to be brought into the treasury, and payments to be made in these bills of 1786, when they were greatly depreciated below a specie value.
That equal justice might be done to those who had received these paper bills of -1786,as had been done to the state on the claims prior to 1782, the General As- sembly, by an act of 1791, directed the general treasurer to consolidate the pay- ments made in the paper money of 1786—deduct that from the amount of the cer- tificates which had been surrendered, and to issue to the creditor a new certificate for the balance thereon. These two acts were in perfect keeping. By the act of 1782, perfect justice had been done the state against creditors. . By.the act of 1791, perfect justice had been done the creditors against the state—for at that time the affairs of the state were controlled by the honest men of the Revolution.
After the adoption of the United States Constitution, and the funded system of Mr. Hamilton had become a law, $200,000 was appropriated for Rhode Island, to be paid on notes issued by the state prior to January, 1790, and for those only, which were given for services and supplies in defence of the country. This sum was to be paid by Jabez Bowen, United States Commissioner of Loans. By his official notice, claims, with the interest thereon, amounting to $344,259 49, were presented him. The $200,000 were rateably paid onseach‘claim, and balance cer- ; tificates for $144,259 49, were rateably given.each; stating the sum specified to be due from the State of Rhode Island, and payable by the’ state of Rhode Island,
with interest until paid. | Dt peal Aas
;
January, 1795, Rhode Island received from the United’ States the residue of her
revolutionary claim, then holding in her State Treasury over $420,000 of United States funded stock. ‘The General Assembly directly ordered the General Treas- urer to call in the balance certificates of Jabez Bowen, and divers other notes and certificates specially described, to make up the amount with the interest, and if the ageregate shall be more than $420,000, to divide that sum rateably to each, and: give a new certificate for the balance. But if the whole sum is less than $420,000, he was directed to pay the whole claims presented. The amount carried in proved to be $503,126 14. Funded stock for $419,223 21 was paid, and balance certifi- cates issued for $83,893 93 to-446 claimants.
The balance certificates were .of the following form as published in the act:
STATE OF RHODE ISLAND AND PROVIDEN CE PLANTATIONS. [No. ] GENERAL TREASURER’S OFFICE, 1795,
I hereby certify that there is due to se, | or Bearer, from the State of Rhode Island,&e. 4, Dollars, and “Cents, being a Balance not provided for by the Transfer of the funded and deferred Stock of the United, States’ belonging to this State, agreeably to an Act made and passed by the General Assembly of this State, at. their January Session, A. D. 1795, which Certificates, by order of the said Assem- bly, are to carry an Interest of Four per Cent. per Annum, from the First Day of January, One Thousand Seven Hundred and Ninety-five, until paid.
General Treasurer.
INTRODUCTION. vil
At the June session, 1797, it was ascertained that many notes and certificates, justly due, had not been brought in under the act of 1795, and the General <As- sembly directed the General Treasurer to call in all such as were described in the act of 1795—to make up the principal and interest of each, and to give the holder a new certificate for the amount, to carry an interest of 4 per cent. He was di- rected also to pay two years interest on all certificates heretofore issued, or that shall be issued pursuant to this act. This interest is proved by the books to have been paid on the whole face of the paper. Under this act 265 certificates were issued, all stating the sum specified to be puE BY THE STaTE OF RuopsE Isr- AND.
February session, 1802, another general act passed similar to that of 1797. Un- der this 41 certificates were issued, of like ForM AND CONDITIONS, and interest was in like manner paid and endorsed. |
From 1800 to 1819, 27 special acts passed for the issue of certificates, and of like. FORM AND CONDITIONS as those of 1795, 1797 and 1802. OQOnall theseis the same interest endorsement. These number 50. — |
The whole number of Acts of Assembly, ordering the issue of certificates, are THIRTY. The whole. number of certificates issued are EIGHT HUNDRED AND Two. Allare of similar FORM AND CONDITIONS. All state from whom due, and to whom payable. All state the rate of interest to be paid. Can it be possible that all this was so long, and so deliberately, passed upon by the General Assem-. bly, with any other meaning and intention than that expressed in the certificate ?
. Divers appropriations have been made by Acts of Assembly, Feb. 1803, June
1804, Feb. 1807, Oct. 1810, and June 1820, for the purchase of State certificates ; - those to be taken which were offered at the lowest rate. The Assembly did not
pretend to fix any estimated ag supposed value to State certificates, for no depre-. ciated value existed—the whole was due, both principal and interest; and the
General Treasurer in 1803, in answer to an inquiry of one holding a State certi-
ficate, as to the price tobe paid, replied in writing, “the creditor alone hath the
power of fixing it. But. there was a lure held out, operating on the necessities of some, or the prudential calculations of others, by having an immediate payment
which they could invest in a more profitable stock, and not subjected to the chances of state legislation.
The certificates were issued in good faith, and for a full and valuable considera- tion, the issue gave a specific right to whom it was issued, and imposed on the State a corresponding obligation. It was a specific contract between the state and - each holder of a certificate, and one from which the state. cannot be exonerated, but by the assent of him who holds it. Those who. carried in and surrendered their certificates at a diminished sum, thereby changed the condition of their own contract, by their own assent ; but it did not in the, least invalidate the contract of the state to him who expressed no assent to such cha ige ; and the state is still held to the full payment of its certificates. va
When we find in state legislation a departure from true thoran-ighen selfish ambition, and the passion of avarice have a contt ing itifluence on the minds of men in public station, then may we bid farewell ¥6 all. hope ‘of protecting the rights and the interests of those who are subject to the will and the power of men thus depraved. Such were the motives, and such were the men, who have controlled the legislation of the state of Rhode Island, for the.last nine years, and who have REPUDIATED claims against the state, sacred to their character, and founded on
considerations most valuable and most honorable. With such men, the oarn or
vill INTRODUCTION.
OFFICE, “ Jathfully and rare ” to execute the high trust committed to their | care, is TRAMPLED UNDER FOOT. ts
In a previous paragraph is a detail of facts of claims on confiscated estates. The. property confiscated was a trust fund for the payment of notes held against the absentees—and in examining the facts we find, that had the state paid the holder of such note FIVE CENTS on the dollar, when she took possession of the property, and by her sovereign power defrauded him of NINETY-FIVE CENTS, that FIVE CENTS prudently invested, would be a great ter sum than we now claim on the pa- per we hold; further, had the state then paid ONE cENT on the dollar, and by her sovereign power defrauded the creditor of the other NINETY-NINE CENTS, that ONE CENT, prudently invested, would be more than SEVENTY CENTS on the face of the paper, lately proposed by the Legislature, on the existing claims against the state.
The same force of reasoning applies to the money of 1780, described also in a former paragraph; the same principles and the same reasons apply to all other certificates issued for other valuable considerations.
The creditors have for nine years been before committees selected by the author- ity of the General Assembly—W. Updike, E. W. Lawton, and S. Hutchins, in 1844 and 1845. Updike was Chairman, and defeated any report. Lawton and Hutchins, then, and since, advocated the claims as due from the state. .
Samuel Dexter, J. H. Weeden, A. Bosworth, J. 8S. Tourtellot, and W. Updike, were a joint committee in 1846. Of that committee, Updike alone denies a debt exists.
Geo. Turner, A. Everett, and J. R. Bullock, were a select committee in 1849.— Under their appointment, it was ordered that they report on each claim separately what is due, and the reasons of their opinion, and the reasons offered by the claimants. ‘Their report was unanimous for the hg of the apa principal and interest.
H. Y. Cranston, F. Brown, and W. P. Batch, a decal commtttee, in 1851, report the claims presented them are due, principal and interest.
S. W. Macy, and Lyman Hawkes, a special committee in 1852 report, the certi- ficates were issued by the authority of the General Assembly, and the records of the treasury show that they are due.
The creditors have asked, by petition, that the General Assembly would submit their claims to a tribunal without the state, where no local and interested motives could have influence. They have proposed either Governor of a New England state—Ex-Goy. Davis, Lincoln or Morton—either Judge of a Superior Court in Massachusetts or Connecticut, or any other man of intelligence and integrity ; and the selection to be made by the General Assembly. The decision to be made on™ the broad principles of Law and Equity, as fully as the same principles could be exercised by the General Assembly. If the decision should be that the claims are invalid, the expenses to be paid by the creditors—if otherwise, to be paid by the state. ‘These proposals were unheeded by the Sovereign Power of the state.
Finding all fair proposals set at nought, it was next attempted to do by strata- gem, what had been defeated by state power. The agent of the petitioners, who also holds individual claims, went to the State Prison, and bought a bill of shoes. Three days after he made a call there, observing that he came to settle the bill, and he hoped the Warden, as agent for the state, would take paper against the state in payment. This was refused, and in reply, the purchaser remarked :—“ there is one course open to you and the inspectors; you can put the account in suit at your own pleasure. A few days after a writ of arrest was made—bail given—the
INTRODUCTION. 1x
er See dew td noni ’ [ae | . ¢ Pe Cai Bs PrPretny (an ’” som be 2 rv ee Po on eer Sled an a cperer-the~ttorpax.for the dar.
State of Rhode-Ifland
——$——
[No. /7/.] GENERAL-TREAS
TPO IES ;
I : HEREBY certify, e KG his va Gas Vee ome Rhode-Lfland, EP. Seventy : “3
A He Ad nee Dollars tat
Balance not provided for by tl ‘ted Stock of the United States
$ \ TH VADOODO MO DITTOIIIITIIO YG
Noy. ca As ; Ud! fits \ : . - ~ - \ A a ae vy < ' * are, | ? s Dihaeet 4 d ‘ f. ‘ oe z frye : v ev “ANB \
| SSE an A& made aud patfed by tl SE; their Yanuary Seffion, A. D.
x: the faid Affembly, are to car sss-* Annum, from the Firlt Day
; Hundred and Ninety-five, u1
OX Gwe
RES
ar ae Ly’ | ss Re — | (( ra) A’ Ve j re hig °F gl rai : ; 7
O47 ee ig te 4 om, -_—— ‘ rat !
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State of Rhode-Ifland and Providence- Plantations.
[No 777. ] GENERAL-TRE ASURER's- OF FICE, »4e/¢ lernbcr yep aed 5.
I HEREBY certify, that there is due to ee eS
: Le at eee f som ~~ —~-—-~or Bearer, from the Szare of
Rhode- = Cc. Seventy fy fever,
see Ph _ Dollars, ahh Paley, LIE, Ua SM O64 being a
+ Siltice not provided for bythe Transfer of the funded and deter- 3 red Stock of the United S tates belonging fo thicas tate, agreeably to = an Ac made and pafled by the General Affembly ofthis Sedes at
their Fanuary Sefiion, 4. D. 1 795, which Certificates, by Order of the faid Affembly, are to carry an intereft of Four per Cent. per
* Annum, from the Firlt Day of January One Thoufand Seven
SEs Hundred and Ninety-five, until paid.
Seas MG suk General-Trea/urer.
INTRODUCTION. 1x
ction entered in court—declaration filed, thas in answer the attorney for the de- fendant filed a state certificate issued by the General Treasurer as a balance in 1195.
- Judge Staples afterwards, in open court, recommended that the plaintiffyamend
B writ, and increase his damages to a sum that would carry the case to the Su-
_ preme Court. This was agreed to by the defendant, but refused by the plaintiff. The Genetal Assembly was in session shortly after and the Judiciary Committee of the House reported a resolution directing the attorney for the state to discontinue the suit; Mr. Ames fully expressing himself that Dr. Richmond had good right to in a claim, if he had one, as a set-off’; and he had no idea that the courts should ass upon state claims. The resolution passed both Houses. The creditors are now where they were, after following the General Assembly at every session from 1844 to 1852.
The undersigned has always acknowledged, and he hereby acknowledges, that he bought the shoes at the State prison—that he has not paid for them, and that they are a good claim in favor of the State—but he says the State owes him a still larger sum.
_ The State dare not submit the claims against the State toan impartial tribunal— they dare not inforce their claim against the undersigned before the Supreme Court; a Court which they created, and which they can REFORM at their own good pleasure.
In conclusion we say, The Strate or Ruope Isianp isa REPUDIATING STATE. We further say, we have shown
| RHODE ISLAND AS SHE WAS AND rhode island @s she is. JOHN W. RICHMOND, Agent for Creditors.
As further developing the foregoing, and as preparatory to a ready perception of the main facts in the general Beaty, of state claims, we here affix a lithograph of some few of the certificates held by the creditors of the State, with the leading facts of their origin, and the practical doings, both by the Legislature, and the legally constituted officers of the State, in relation to claims.
Mary Rhodes deceased in 1852, aged about 98 years. She was the last surviv- ing creditor holding a certificate in her own name. ‘This was issued in renewal of
Sa portion of her claim for $462 53, presented and allowed under the act of 1795. She: Was then paid $385 44, and a balance certificate given her for $77 09, con-
formable to the Act. October 26, 1797, she was paid two years’ interest on this balance certificate, on the whole face of the paper, and the same is endorsed. In 1844 she petitioned over her own signature for the payment of her balance certi- ficate, and her petition was laid on the table, members of the House denying the debt as due from the State.
This claim originated in the services of her late husband, Sylvester Rhodes, of Warwick; he having died in 1780 with disease contracted on board the Jersey Prison Ship, where he was held a prisoner. This claim is no solitary case. There are a large number now due the children and grand-children of those who died in the service, or were slain in battle, in the war of Independence. All, ALL of these claims are under the ban of Repudiation. In many cases the holders are suffering all the evils and privations attendant on very limited means of support. That the
‘State was paid by the United States every claim assumed by the State is fully shown, page 16 of the general history following these introductory remarks.
x INTRODUCTION.
Referring to the following history, (pages 5 and 36,) will be found the legislation on claims held by individuals against confiscated estates; all of which .were paya- ble by the State. A lithograph of the certificate held by the heirs of Elisha San- ford is here presented in these introductory remarks :
It is seen by searching the Treasury Records, that Elisha Sanford held a Note against Joseph and William Wanton, whose very large estates were confiscated to and for the use of the State. ‘That Note was called into the Treasury in 1783, the amount, principal and interest ascertained, payment of £70 made, and a new obli- gation for the balance given by the General Treasurer. Under the act of 1797 the obligation of 1783 was brought into the treasury, amounting with the interest to $323 26, a new certificate issued for that sum, dated October 10, 1797, stating it to be due from the State of Rhode Island, and to carry an interest of 4 per cent. from January 1795, until paid. Two years’ interest was paid on the whole face
of the paper. Petitions have been presented for the payment of the $323 26, and
the State refuses to do so, although she holds a trust fund, the sale of the Wanton estates, for that special purpose.
The heirs of Elisha Sanford were a bachelor son and a maiden daughter, both of these have recently deceased, aged over 90 years—both highly respected, but unfortunately had outlived their means of living and in their last days were de- pendent for much of their support on the charity of others—thus sinking down to their graves suffering all the privations’ attendant on poverty; the State at that time justly owing them $1000.
%
By Acts of Assembly, August (page 107) Sr October (page 156) 1775, and June 1776, (page 59) stock was driven from Block Island and other situations where it was exposed to be taken by the enemy, (see pages 9 and 37 of this his- tory. It was enacted that such as was in good condition be slaughtered for army supplies, and the residue sold and the money placed in the State Treasury, (see act August, pages 107 and 111.) State Notes were given for stock thus forcibly taken by the State. Such is the origin of the certificate given Andrew McCorrie. In 1795 he carried in his claim for $365 36—he was paid $304 47, and a balance certificate given for $60 89, as is here annexed:
Mr. McCorrie was in independent circumstances when the above certificate ‘was given him—he has since deceased. Mrs. McCorrie, his widow, was a daughter of Col. John Cook, one of the most active men in Rhode Island during the revolu- tionary war. While in the prosperity of her early life, Mrs. McCorrie was in pos- session of a well stored ‘house, which was a source of bounty to others—her hand was always open to supply the wants of the poor—but unfortunately in her latter
life, her sources of benevolence are dried up—she is now poor—a widow over eighty .
years of age, receiving only the small yearly pittance of $120 for her support, now thankful to receive charity from others better situated than herself. Such is the situation of this noble lady, holding as she does a sacred obligation against the State, the payment of which would somewhat supply her immediate wants. Such is her claim, and such is RHODE ISLAND REPUDIATION.
= td
State of Rhode-Ifland and Prov
[No. Wa J GENERAL TREASURER’: OFFICE,
In virtue of an aét of the
at the feffion held in June, A. D. 1797 and fecurities iffued by this ftate for fer the late war with Great-Britain, which |] and exchanged, and for giving the hol ties.” I HEREBY CERTIFY, That there is d Ee Oita bg termine Laage ftate ‘of ce Bette oh zc. eg pte 7/ezee-—— dollars and AC czees Lx, on at the rate of four per cent. fer ann January, one thoufand feven hundred a
See fy (i hAy’ Wa 2S Opp a oe
Pa ‘ O os Dolls.323 xfo5° CO
(
/ j
tee é2 Yi ae
0)
x INTRODUCTION.
Referring to the following history, (pages 5 and 36,) will be found the legislation on claims held by individuals against confiscated estates; all of which were paya- ble by the State. A lithograph of the certificate held by the heirs of Elisha San- ford is here presented in these introductory remarks :
It is seen by searching the Treasury Records, that Elisha Sanford held a Note against Joseph and William Wanton, whose very large estates were confiscated to and for the use of the State. ‘That Note was called into the Treasury in 1783, the amount, principal and interest ascertained, payment of £70 made, and a new obli- gation for the balance given by the General Treasurer. Under the act of 1797 the obligation of 1783 was brought into the treasury, amounting with the interest to $323 26, a new certificate issued for that sum, dated October 10, 1797, stating it to be due from the State of Rhode Island, and to carry an interest of 4 per cent. from January 1795, until paid. Two years’ interest was paid on the whole face of the paper. Petitions have been presented for the payment of the $323 26, and the State refuses to do so, although she holds a trust fund, the sale of the Wanton estates, for that special purpose.
The heirs of Elisha Sanford were a bachelor son and a maiden daughter, both of these have recently deceased, aged over 90 years—both highly respected, but unfortunately had outlived their means of living and in their last days were de- pendent for much of their support on the charity of others—thus sinking down to their graves suffering all the privations: attendant on poverty; the State at that time justly owing them $1000.
=
By Acts of Assembly, August (page 107) and October (page 156) 1775, and June 1776, (page 59) stock was driven from Block Island and other situations where it was exposed to be taken by the enemy, (see pages 9 and 37 of this his- tory. It was enacted that such as was in good condition be slaughtered for army supplies, and the residue sold and the money placed in the State Treasury, (see act August, pages 107 and 111.) State Notes were given for stock thus forcibly taken by the State. Such is the origin of the certificate given Andrew McCorrie. In 1795 he carried in his claim for $365 36—he was paid $304 47, and a balance certificate given for $60 89, as is here annexed:
Mr. McCorrie was in independent circumstances when the above certificate ‘was given him—he has since deceased. Mrs. McCorrie, his widow, was a daughter of Col. John Cook, one of the most active men in Rhode Island during the revolu- tionary war. While in the prosperity of her early life, Mrs. McCorrie was in pos- session of a well stored house, which was a source of bounty to others—her hand was always open to supply the wants of the poor—but unfortunately in her latter life, her sources of benevolence are dried up—she is now poor—a widow over eighty . years of age, receiving only the small yearly pittance of $120 for her support, now thankful to receive charity from others better situated than herself. Such is the situation of this noble lady, holding as she does a sacred obligation against the State, the payment of which would somewhat supply her immediate wants. Such is her claim, and such is RHODE ISLAND REPUDIATION.
— pane, Se State of Rhode-Ifland and Providence-Plantations. as : [ No. Le J GENERAL TREASURER's OFFICE, NEWPORT, “nu 7 O- Ja the Sic Ti virtue of an aét-of the General Affembly, paffed = 3 at the feffion held in June, A. D. 1797, “for calling in the notes <= ; and fecurities 1ffued by this {tate for fervices and fupplies during pot the late war with Great-Britain, which have not been liquidated veske and exchanged, and for giving the holders of po new fecuri- V3 RE ties. I HEREBY ceRTIFY, That there is due to 7 EEE fate sof Rhode: Mend, ea, PFE ee
Fiezee —— dollars Se ae orexe cents, ann oe WA on at the rate of four per cent. fer annum, from the firft day of January, one thoufand feven hundred and ninety-five, until paid.
CECOUP ILE General-Treasurer.
Dolls. 323 2F
idence-Plantations.
NEWPORT, bp $e Wo oe General Affembly, paffed , “for calling in the notes vices and fupplies during 1ave not been hquidated lue to 7 Leen,
/or bearer, from the eae ge We Eon
cents, with Oo eg
um, from the farft day of —
id. ninety-five, until paid.
ze General-Treasurer.
ae ee en Se oP i iy 7 L A FS ,
be
KhAe”
State of Rhode-Ifland and Providence-Plantations.
a V
SEs [No 422 ] GENERAL-TREASURER’s-OFFICE, Yok 26” 119 Pee : SSE I HEREBY certify, that there is due to ie ee Sot S pe Hey pre,
SESE BC oO — gootamowth or Bearer, from the State of BSE: Rhode- -Llan Co. Mg fy, eS, alla, eeenen Wee ip enns ne , } e Dolla ars,. and Za Op. Petree Con being a (
“WOLIE A ee Ge
SAIS seus dlde
Balance not provided for by the Transfer of the funded and defer- red Stock of the United States belonging to this St tate, agreeably to an A&t made and patfed by the General Monbih a this Srate at their January Seflion, 4. D. 1 79 5, which Certificates , by Order of the faid Affembly, are to carry | an intereft of Four per Cent. per Annum, from the Firft Day cf January One Thoufand Seven
Hundred and ee ieee unt paid.
4 , ‘ *
INTRODUCTION Xi
é William Greene, of Warwick, January, 1795, carried his claim into the Treas- | _ ury, amounting with the interest to $1056 37. It was founded on the following
y
i aI
considerations, viz:
1 Note Creditors of Absentees, - . - - - $109 35 3 Teaming Certificates, - - - : : 104 97 1 Certificate, Jabez Bowen, Commissioner of Loans, - - 614 29 1 Note, June, 1780, Money funded, ——- - - : 327 76
$1,056 37
April 3, 1795, he was paid $880 31, and a balance certificate issued for $176 06. Two years interest was paid on the whole face of the paper.
William Greene was Governor of the State in the Revolutionary War, and after, viz., from 1778 to 1806. He well knew the hazards of his perilous duty when he accepted the office. He well knew that in case of failure to establish an independ- ent government his head was forfeit, and his property confiscate to the crown. We ask if William Greene would present a fraudulent claim against the State, well knowing, as he did, the whole history of State claims. This balance certificate has long been before the Assembly, asking its payment by the petition of a son of Governor Greene, that son then living on very limited means. This is another of the certificates bearing the signature of the General Treasurer, and issued under the authority and direction of the General Assembly, which the State now repu- diates.
We here add a few other cases of certificates of the same form as those before presented, on which we have not been at the expense of presenting with a lithograph copy:
Nathaniel Lawton loaned the State silver and gold, in the hour of her need, taking a State note as evidence of the indebtedness of the State. This claim descended to his heirs, Nathaniel and Christopher Lawton. Abraham Anthony, as their guardian, carried in their claim under the Act of 1795, amounting to $2,741 10,— he was paid $2,284 25, and a balance certificate given for $456 85. May 4, 1798, he was paid two years’ interest on the balance certificate on the whole face of the paper. This claim had descended to other heirs, who petitioned the General As- sembly, and by special Act, June session, 1805, new certificates were given them, viz., one to Christopher Lawton for $342 64, the other to Abigail Taylor for $114 21,
making the full sum of the former certificate. Both of these claims have long been
before the General Assembly by petitions, asking payment for silver and gold
loaned the State, and both are Repudiated. Ifthe State did not owe the original
note, why did she call it in in 1795 and pay 5-6ths? If she did not owe it, why did she issue the balance certificate for the remaining 1-6th? If she did not owe this balance certificate, why did she pay two years’ interest on the whole face of the paper? Ifshe did not owe it, why did she receive the same balance certificate into the treasury, and by special act in 1805 reissue to those who inherited the claim, new certificates for the respective sums belonging to each? Did the Gene- ral Assembly play all this disgraceful farce ona claim she did notowe ? These in- terrogatories are left to be answered by those who are repudiators from 1844 to 1854.
Joseph Russell, of New Bedford, held notes against the State of Rhode Island, originating in services and supplies in the defence of the country. These were carried in under the Assumption law ; he received his portion of the $200,000, and a balance certificate, dated January Ist, 1792, for $650 71. Joseph Russell de-
State of Rhode-Ifland and Providence- Plantations.
we”
Cb
62 ia Basse [No. O2 } GENERAL-TREASURER's-OFFICE. We Ne ee ae
VAY ke GK 199909959
i
eS [ HEREBY certify, that there is due to ELLE
> S - j 4 .
E iS ee 2 oY Marwick —.. + or Bearer, from the Stare of 3 |
Rhode-Ifland, & c. Cre Mie ae ant Trent Ze ee
VA AAAZ nA, NA) YW? %, * " yen WV. ¥; yf
- RANA oe Ke ers
’ ve v4 ; VOTIVIIGINIY 9099
i‘ RH
Vs N% i
¥7
Pa Av, a (44 ¥ VHMGVIDOPD DONT G7 T%
a =
Balance not provided for by the Transfer of the funded and defer-
a
red Stock of the United States belonging to this Staze, agreeably to an Act made and paffed by the General Affembly of this Stace at their January Seffion, 4. D..1 795, which Certificates, by Order of
a AND be Rs x i : Vf" \y
4 f Ay Yor ¥ “DOITOVIT OS FOTO
RRS, Aa ’ , Pe os" eM vx j y Y'e/ NAD \ é
‘\
: the faid Affembly, are to carry an interef{t of Four per Cent. per “sg= Annum, from the Firft Day of January One Thoufand Sbven = Hundred and Ninety-five, until paid.
a “off SEEN ecbugne General.- Treafurer.
INTRODUCTION X1
William Greene, of Warwick, January, 1795, carried his claim into the Treas- ury, amounting with the interest to $1056 87. It was founded on the following considerations, Viz :
1 Note Creditors of Absentees, = - - - - - $109 35 3 Teaming Certificates, ae, oy - - - - 104 97 1 Certificate, Jabez Bowen, Commissioner of Loans, - - 614 29 1 Note, June, 1780, Money funded, ——- - - - 827 76
$1,056 37
April 8, 1795, he was paid $880 81, ind a balance certificate issued for det 06. Two years interest was paid on the whole face of the paper.
William Greene was Governor of the State in the Revolutionary War, and after, viz., from 1778 to 1806. He well knew the hazards of his perilous duty when he accepted the office. He well knew that in case of failure to establish an independ- ent government his head was forfeit, and his property confiscate to the crown. We ask if William Greene would present a fraudulent claim against the State, well knowing, as he did, the whole history of State claims. This balance certificate has long been before the Assembly, asking its payment by the petition of a son of Governor Greene, that son then living on very limited means. This is another of the certificates bearing the signature of the General Treasurer, and issued under the authority and direction of the General Assembly, which the State now repu- diates.
We here add a few other cases of certificates of the same form as those before presented, on which we have not been at the expense of presenting with a lithograph copy: |
Nathaniel Lawton loaned the State silver and gold, in the hour of her need, taking a State note as evidence of the indebtedness of the State. This claim descended to his heirs, Nathaniel and Christopher Lawton. Abraham Anthony, as their guardian, carried in their claim under the Act of 1795, amounting to $2,741 10,— he was paid $2,284 25, and a balance certificate given for $456 85. May 4, 1798, he was paid two years’ interest on the balance certificate on the whole face of the paper. This claim had descended to other heirs, who petitioned the General As- sembly, and by special Act, June session, 1805, new certificates were given them, viz., one to Christopher Lawton for $342 64, the other to Abigail Taylor for $114 21, making the full sum of the former certificate. Both of these claims have long been before the General Assembly by petitions, asking payment for silver and gold loaned the State, and both are Repudiated. Ifthe State did not owe the original note, why did she call it in in 1795 and pay 5-6ths? If she did not owe it, why did she issue the balance certificate for the remaining 1-6th? If she did not owe this balance certificate, why did she pay two years’ interest on the whole face of the paper? Ifshe did not owe it, why did she receive the same balance certificate into the treasury, and by special act in 1805 reissue to those who inherited the claim, new certificates for the respective sums belonging to each? Did the Gene- ral Assembly play all this disgraceful farce ona claim she did not owe? These in- terrogatories are left to be answered by those who are repudiators from 1844 to 1854. :
Joseph Russell, of New Bedford, held notes against the State of Rhode Island, originating in services and supplies in the defence of the country. These were carried in under the Assumption law ; he received his portion of the $200,000, and
a balance certificate, dated January Ist, 1792, for $650 71. Joseph Russell de-
o3 Xil INTRODUCTION.
ceased about February, 1805, and the before stated certificate was found in his pa- '
pers, by his Executor, Abraham Russell, who petitioned for its payment at the June session, 1805; stating that his father lately deceased, aged 85 years, and “ ow- ing to his advanced age and retired situation,” was ignorant of his right to have presented the same in 1795, and received a large portion of funded stock in pay-
ment ; he therefore petitions for redress. An act passed authorising the issue of a
new certificate, which was made, dated May 5, 1806, for $728 75, to carry an in- terest at 4 per cent. from January, 1795; this sum being the precise amount of the principal and interest on the full face of the paper from 1792 to 1795, at 4 per
cent. This certificate when issued, received an interest payment of $58 30, being ©
the amount due from 1795 to 1797, and on the full face of the paper.
The certificate is now held by Samuel Rodman, of New Bedford, Administrator on the estate of Abraham Russell. Mr. Rodman in his letter, December, 1848, says, he petitioned for payment, “ his petition was referred to a committee who ad- mitted the justice of the debt, but stated there was no funds wherewith to pay it; thus giving an instance of practical Repudiation of claims admitted to be good and just. Such refusal is anything but creditable to one of the New England States.” Edward Hazard was Rodman’s attorney, and presented the petition. In a conver- sation with Mr. Hazard, he said, “the only objection that then prevailed was, that there was no funds in the Treasury to pay such claims.” Mr. Rodman has, for the last six years, been a petitioner for payment of the $728 75 above stated, and his claim is repudiated
If the State did not owe the notes held prior to 1790, why were they originally given? Ifshe did not owe, why were they received in 1792, the greater portion paid, and a balance certificate given for $650 71? If she did not owe, why did the petition receive the attention of the General Assembly, making up the interest on the whole face of the paper, adding that to the privcipal sum, giving a new ob- ligation for $728 75 to carry an interest from 1795? Ifshe did not owe, why did she pay $58 30 the whole interest from 1795 to 1797? All these are unanswera- ble and damning facts against corrupt politicians, men lost to all sense of moral duties, or individual rights.
The certificate given John Almy is deserving particular notice, both as to the number of its recognitions, and the important facts which place it as an wndoubted debt now due from the State. After the adoption of the Constitution of the United States, and the establishment of the funding system (as is seen on page 17 of this history,) $200,000 was assumed to be paid to Rhode Island, in funded stock, and to be expended only for services rendered, and supplies furnished in defence of the country, and such only as had been assumed by the State, and notes given.-— These notes were carried into the oflice of Jabez Bowen, Commissioner of Loans, amounting to $344,259 49, the $200,000 was divided rateably to each claimant,
and a new certificate given for his balance, see page 17. John Almy carried his
claim into the Loan Office, he received a certificate for his proportion of the $200,- 000, and a new certificate for the balance. The note carried in was clear evidence of a previous recognition of his claim by the State, and the balance certificate was another recognition for the amount there stated as unpaid. This claim he held until 1795, the United States then having paid the State the balance due her for claims originating in the war of the Revolution. The State then passed the Act of January, 1795, ordering the Treasurer to call in all claims held by individuals against the State, specially including the balance certificates issued by Jabez Bow-
~ of ) es A ; =
a)
az
INTRODUCTION. xiil
en, and a disposition of them to be made as seen in pages 36 and 37 following
ait Sohn Almy carried in his, which were of the following description, viz.:
ye
1 Note, June, 1780, money funded, - - = $48 59 ‘1 Impost certificate, = - - - - - 75 34 1 Interest certificate on Loan Office certificate, - - 3 12 1 Certificate, by Jabez Bowen, Commissioner of Loans, - 370 74 $497 79
On this, October 5th, 1795, he received from the General Treasurer
a certificate for funded stock, - - $414 83
And a balance certificate for - - - - 82 96 . st 497 179
This was a third full recognition of the claim. Mr Almy was unfortunately roraLty pear. One of the organs by which gen-
eral knowledge is communicated to the mind, was to him totally annihilated. All ‘conversation with him was by slate and pencil. From this fact he did not know his right to go to the office of the Commissioner of Loans and receive his funded
stock, then as good as silver and gold.’ His certificate for that stock was placed in his desk with his balance certificate, and there remained until 1800, when his friends took measures to obtain pay by petition to the Legislature. This petition
was, with many others, referred to David L. Barnes, James Aldrich and*Elisha R.
Potter. A committee of more talent was never selected in the State, and they report as follows :
“The committee appointed to take into consideration the claim of John Almy against the State, grounded on a certificate issued by Henry Sherburne, General
‘Treasurer, dated October 5, 1795, for $414 83, on which nothing has been paid,
beg leave to report, that it appears to the committee from satisfactory information,
that the said certificate has been the property of said Almy ever since it was given—
that although he might have presented it to the Commissioner of Loans and ob- tained Continental funded Stock for the same, he omitted to doit, AND THE STATE ARE NOW POSSESSED OF THE SAME STtock—that being INFIRM and unacquaint- ed with the Laws of the State respecting the public debt, he omitted to present the same for liquidation at the time appointed by law for that ye Which is submitted by DAVID L. BARNES, JAMES ALDRICH, Committee. ELISHA R. POTTER,
Upon this report an act was passed, ordering “ that the several Notes and Certifi- eates described on the several reports of Messrs. Barnes, Aldrich and Potter be liquidated by the General Treasurer, and that he be authorised and directed to issue his Notes or Certificates for the sums respectively due upon the Notes and Certificates aforesaid.” — House of Representatives, Nov. 1, 1800.
Voted, &c., WM. MARCHANT, Clerk.
This action of the General Assembly was a fourth and full recognition of the elaim of John Almy, as due from the State.
By the aforesaid authority and direction a new certificate was given John Almy for $414 83, to carry an interest from January, 1795. Two years’ interest was paid on this certificate, March 25, 1802, and is endorsed, and is a fifth recognition of the indebtedness of the State.
All these entries were made in the books Of the Treasury, and in the report to
, :
xiv _ INTRODUCTION.
the Assembly, June, 1802, the Treasurer states, the whole State debt, exclusive of | interest, is $128,018 08, thereby recognizing every certificate issued at that time ; | this is a sixth recognition of the claim of John Almy, on which he could in 1795. have received his funded stock of $414 83; but ignorant of his rights, it was left in the State Treasury, as is proved by the Report of Messrs. Barnes, Aldrich, and | | Potter, as before stated.
On this stock the State received interest quarterly of 6 per cent. per annum, |
and a portion of the principal, until the whole sum, both principal and interest, was fully paid; and what has John Almy obtained for his claim thus accidentally in possession of the State? Why simply a State certificate for $414 83, at an in- terest of only 4 per cent. from January, 1795, and the State has the hardened ini- quity to deny that as due from the State. Had the State in 1854 paid the certifi- cate of John Almy the amount stated in his bond, with a simple interest of 4 per cent. it would have been about $1400 ; but what has been the result to the State by unjustly retaining property belonging to an individual citizen? Take the orig- inal certificate of $414 83, adding the interest yearly at 6 per cent. making that a _ part of the principal sum, which is a fair business calculation, and it amounts from 1800 to 1854 to about $10,000 now held by the State, due the heirs of John Almy on every principle of justice and equity. This claim if lost to John Almy, (or to his heirs) is lost by the visitation of God, the State having retained the funded stock belonging to him, he ignorant of his own rights. The man who will resist this clear and connected chain of evidence of the indebtedness of the State, will deny the REVELATIONS OF GOD, AS RE- CORDED IN THE HOLY SCRIPTURES.
Hundreds of certificates, again and again to the fifth, sixth and seventh time re- cognized by the State, founded in like valuable considerations, are unpaid, in all amounting to $43,917 19, and we challenge all repudiators to show one Act of As- sembly, one record in the ‘Treasury, as evidence against them. All were given, PAYABLE TO A. B. oR BEARmR, and allexpressly stated that they were DUE FROM THE STATE OF RHODE ISLAND, and correspond with the litho- graphs heretofore presented.
We here close these introductory remarks, by referring the reader to more re- cent reports from 1844 to 1852. Firrren members of Assembly have been on committees investigating the validity of State claims. FourTeEn reported them due, Wilkins Updike alone denying the indebtedness of the State.
In the following pages we have at length reviewed the speeches and votes of seven members of the Legislature on the petitions for the payment of State claims; those gentlemen being the only members whose remarks were sufliciently lengthy or prominent to merit attention at this time. We have also reviewed the official position of Governor Anthony in relation to State claims; and as he was also Edi- tor of the Providence Journal, we have copied from the columns of that publica- tion his views and opinions on the Repudiation of other States, and remarks made by him on claims held against the general government.
INTRODUCTION. . XV
_ There is one other gentleman who voted to reject our petition in 1847, who at that time made no remarks in our recollection, or have we seen any that was re- . ported at that time in the public press. Neither do we recollect at any time since
1847, to have seen any opinions expressed by him on that subject ;‘his votes being generally, if not.always, given without the reason on which they were founded.— ‘But as that gentleman is now placed ina position more elevated than that of a member of a State Legislature—that of the Representative of this State in the
Congress of the United States, we feel bound to review his votes (if not his
speeches) in the General Assembly of this State, and the peculiar circumstances
existing in relation to himself, when his votes were given against the payment of claims, due the heirs of those who periled their. fortune and their life to secure the independence of the United States.
The position of this gentleman in relation to the Revolutionary debt can with much propriety be presented separate and apart from that of other Repudiators.— Weallude to the Hon. Thomas Davis. Mr. Davis, we believe, came to this State from Ireland after the close of the war in 1815, then asmall boy. For the last seven years or more he has been an active politician in the State Legislature, and now represents his district in Congress. Whether he has, or has not, liberally aided in furnishing the great moving power which (in Rhode Island) decides who shall hold offices, and even the political character of the government itself, is best known to him; not being an active political partizan we cannot say. Mr. Davis was not born until more than thirty-five years after the services and supplies in defence of the country were furnished, on which our claims are founded—probably the mother that bore him was not,born until the close of the war of the revolution: When these facts are duly considered, common delicacy should have counselled Mr. Davis when a member of the State Legislature in 1847, to have diligently in- quired into all the facts of revolutionary debts, before he gave his vote to reject a petition asking payment of their claims. Mr. Davis was, and is, here prosperously pursuing a business fostered by a liberal government—a government established by the Torxs, the Sacririces and the BLoop of Americans, contending for inde- pendence against a government under which he was born, and yet, (we say it boldly,) he voted to reject a petition of the heirs of those brave men, who gave their fortunes and their lives in a cause producing so great a boon for himself; he then knowing scarcely an important fact in the true history of the claims—and even “now he cannot present any defence adverse to the claims, which cannot be over- thrown in a single minute.
Mr. Davis may perhaps think that these statements are not well founded, and of course the imputations cannot be sustained—but in self defence we challenge him to set down toe to toe with us in a hearing before a Hiau Court or Honor, and if he can show that our positions are not true—if he can show substantial evidence invalidating certificates issued by the General Treasurer, under the authority and direction of the General Assembly, we will in unmistakeable language publicly re- trace our steps, acknowledging that we have wrongfully made charges against him,
_and that it is so adjudged by men strong in talent, and pure and honorable in character. But on the other hand, if the Court or Honor finds that Mr. Davis cannot present that perfect knowledge of all that legislation, and the recorded his- tory in the Treasury, which did justify his vote to reject our petition—evidence disproving the validity of our obligations—then Mr. Davis, as an honorable and just man, shall as publicly confess his own errors, and the injustice done by him to the creditors of the State.
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| HISTORY
OF
THE REGISTERED STATE DEBT.
CHAPTER I. eae Owe ol ab OFT 7 9.5,
A compilation of the facts, explanatory of the validity of the Registered State Debt of Rhode Island, will, of necessity, include some parts of the Military, and much of the Financial history of the State. The acts of Assembly, as published in the Schedules, and the records in the office of the General Treasurer, will be the principal authorities relied on, to support the positions taken in favor of the claims, as set up by those who are holders of State Certificates. The great study in this selection of evidence will be, to present truth, and with as much brevity as will be consis- tent with a clear exposition of the leading facts in the case. We will, then, without further circumlocution, place before our readers a copy of an Act passed at the April session of the General As- sembly, A. D. 1775, with the following preamble, viz. :
“ An Act for raising 1500 men.”
“ At this very dangerous crisis of American affairs; at a time when we are surrounded with Fleets and Armies, which threaten our Destruction; at a time when the Fears and Anxieties of the People throw them into the deepest Distress, and totally prevent them from attending to the common Occupations of Life ; to pre- vent the mischievous Consequences that must necessarily attend such a disordered State, and to restore Peace to the Minds of the Good People of this Colony, it appears absolutely necessary to this Assembly, that a Number of Men be raised and embodyed, properly armed and disciplined, to continue in this Colony as an Army of Observation, to repel any Insult or Violence that may be offered to the Inhabitants: and also, if it be necessary for the Safety and Preservation of any of the Colonies, to march out of this Colony, and join and co-operate with the Forces of the neigh- bouring Colonies: Jt is therefore Voted and Resolved, that Fifteen Hundred Men be enlisted, raised and embodyed, as aforesaid, with all the Expedition and Despatch that the Nature of the Thing will admit of.”
- THE RHODE ISLAND STATE DEBT.
To this Act is appended the following protest, Viz. :
‘¢ We the Subscribers, professing true Allegiance to his Majes- ty, King George the Third, beg leave to dissent from the Vote of the House of Magistrates, for enlisting, raising and embodying an Army of Observation of Fifteen Hundred Men, to repel any In- sult or Violence that may be offered to the Inhabitants ; and also if it be necessary for the Safety and Preservation of any of the Colonies, to march them out of the Colony, to join and co-operate with the Forces of the neighboring Colonies °”
‘“ Because we are of Opinion that such a Measure will be at- tended with the most fatal Consequences to our. Charter Privi- Jeges, involve the Colony in all the horrors of a civil War, and as we conceive, 1s an open violation of the Oath of Allegiance which we have severally taken, upon our Admission into the respective Offices we now hold in the Colony.”
“JOSEPH WANTON, DARIUS SESSIONS, THOMAS WICKES, WILLIAM POTTER.”
“< In the Upper House,
Providence, April 25, 1775.” |
At the May Session, A. D. 1775, the following Act passed, viz. :
« An Act for embodying, supplying and paying the Army of Ob- - servation ordered to be raised for the Defence of the Colony.”
‘‘ Be it Enacted by this General Assembly, and by the Author- ity of the same it is Enacted, That the Fifteen Hundred Men, ordered to be raised by this Colony be formed into one Brigade, under the Command of a Brigadier General, and consist of Three Regiments, each of which shall be commanded by one Colonel, one Lieutenant Colonel, and one Major; That there be one Ad- jutant of Brigade, one Adjutant Major, for such Purposes as ap- pertain to that Office: That there be one Adjutant, one Surgeon, one Surgeon’s Mate, and one Quarter Master to each Regiment : That each Regiment consist of Eight Companies: each Field Of- ficer’s Company to be commanded by such Field Officer, by one Captain Lieutenant, one Lieutenant, and one Ensign; and that one of the Companies be a Train of Artillery, and have the use of the Colony’s Field Pieces.”
“The Act further provides, that each Regiment be so placed in rotation, as to hold equal Rank. ‘The amount of Bounty—the rate of pay—the amount of Rations—one Month’s pay in advance —the form of enlistment—not subject to arrest for debt—appoint- ment of a Commissary, and that he give Bonds—and that there be purchased 500 bbs. Flour—300 bbs. Pork—100 bbs. Beef—1500
Blankets—also Arms and Accoutrements.”
«« And for supplying the General Treasury, Be it further Enact- ed, that the sum of Twenty Thousand Pounds, Lawful Money Bills, be immediately printed, and signed by the Hon. Metcalf Bowler, Esq., Henry Ward, Joseph Clarke, John Cole and 'Thom-
ITS ORIGIN. 9
_as Greene, Esq’rs.: That all Bills under five Shillings be signed by one of the Committee, and all the other Bills by two of the Committee: That the same shall be a lawful ‘lender, in Discharge of all Contracts, Debts, Dues and Demands, whether of a public or private Nature: ‘That one half of the Bills shall be redeemed within Two Years, and the other half within Five Years from the time of the emission, together with Interest thereon arising, at the rate of ‘Two and a half per Cent per Annum, by a general Tax to be levied or: the inhabitants of this Colony.”
“ Which Bills shall be of the following form.”
“The Possessor of this Bill shall be paid by the Treasurer ot the Colony of Rhode-Island ———————— Lawful Money, at the rate of Six Shillings and nine Pense for one Ounce of Silver, within Five Years from the date hereof, with Interest at Two and a half per Cent. per Annum until paid—By order of the Assem- bly.” |
x Providence, 3d day of May, 1775.”
These Bills were put in circulation, and the fact that they were a ‘lender in the payment of all debts, both public and private, soon placed them in the hands of the whole community. They were of higher authority than the present United States Treasury Notes, as these have no compulsory powers.
We have been particular in this extended copy of the Act of Assembly directing the issue of these bills, as they were the first issue for war expenses; and it is believed, the first origin, in 1775, of the present State Debt; and a striking evidence of the inten- tions of the General Assembly is strongly expressed,in that pro- vision on the face of the bill, that it shall be paid at the rate of one ounce of silver for every six shillings and nine pence.
Other paper bills were issued in June and October 1775, March, June and July 1776, by authority of the Colony; and also, Sep- tember 1776, after the Declaration of Independence, an Act passed to issue $66,670 more paper bills, to be placed in the Treasury. _ These varied in form from those before issued, only in one respect : those before the Declaration of Independence stated “by the 'Trea- surer of the Colony of Rhode Island,” the present issue was “ by the ‘Treasurer of the State of Rhode Island.” The whole sum now issued hy the Colony, and by the State, make a gross sum of $300,003.
By a subsequent Act of the General Assembly, May, second session, A. D. 1778, the possessors of these Bills of Credit were authorised to exchange them for Continental Loan Office Certifi- cates, or on delivering them into the General Treasury, they shall receive Promissory Notes therefor, payable in threeye ars from the date, with interest at six per cent. per annum, of the following form :
“ State of Rhode-Island and Providence Plantations.
No. By virtue of an Act of Hi General Assembly of the State afore- said, for calling in and sinking the outstanding Bills of Credit
4 THE RHODE ISLAND STATE DEBT.
passed at the 2d Session in May, A. D. 1778, and as General —
Treasurer thereof, | promise to pay or order, lawful Money, within Three Years from the date hereof, with interest at six per cent. per annum for one same until paid. Witness my Hand this day of A. D. 1778
These Loan Office Certificates were £45,000, or $150,000, and Notes for $150,000,—and all Paper Money called Bills of Credit to be stricken out of circulation, and no longer a ‘Tender in pay- ment of debts.
By this act the paper bills of credit are converted to six per cent. notes.
Shortly after this time a meeting of delegates from all the New England States met in Providence, and after mature deliberation it was recommended to this State, that she issue no more bills of credit, but to rely on taxes and loans to meet her war expenses. This recommendation appears to haye been fully concurred in, and at the December session, 1776, an act was passed by the Gen- eral Assembly, with the following title and preamble.
“An Act for raising, embodying, supplying, and paying two Regiments of Infantry, each consisting of Seven Hundred and Fifty men, and a Regiment or Train of Artillery, consisting of Three Hundred men, ‘for the Defence of the United States in gen- eral, and of this State in particular.
‘“‘ Whereas our Enemies have invaded this State with a power- ful Armement, and are now in Possession of the Island of Rhode- Island, whereby we are imminently exposed to still more hostile
attacks, which renders it necessary that a considerable Addition —
be made to the Forces of this State.”
Section 1. Decrees the organization of officers, the rights and duties of Soldiers. and next follows a section directing the Trea- surer to effect a Loan to meet the expenses: “ He is hereby em- powered to Hire on behalf of this State, Thirty Thousand Pounds, Lawful Money, at the rate of Four per Cent. per Annum, and that he give his Notes therefor, payable on Demand.”
We have been thus particular in copying from this act, as it is the first passed by the General Assembly authorising and direct- ing the General Treasury to hire money, and to give treasury notes therefor.
At a second session of the General Assemb!y, December, 1776, an act passed directing the General ‘Treasurer to hire $40,000, payable intwo years, at an interest of six per cent. and give his notes therefor.
At the February session, 1777, an act passed directing the Gen- eral ‘Treasurer to hire £50,000 payable in five years, at an inter- est of four per cent. and give his notes therefor.
At the March session, 1778, it was resolved that the General Treasurer hire £20,000, and give his notes therefor, at an interest of six per cent. if need be.
ITS ORIGIN. 5
At the February session, 1779, the General Treasurer was di-
_ rected to hire £20,000 and give his notes therefor, at six per cent.
The foregoing acts authorise and direct the General Treasurer to hire £160,000, or $533,333, giving State notes therefor. These loans, together with the bills of credit, make a gross sum of $833,- 336. Alarge amount of these claims now constitute a part of the present State Debt.
The first payment of any part of the debt seems to be an Act passed December 1778, ordering the Treasurer to pay Interest on all 'Treasury Notes.
_ We will here explain another source of part of the present State debt, connected with facts of the confiscated estates. At the com- mencement of the Revolution, many of the most wealthy citizens of the colony were decidedly opposed to the revolutionary move- ments, and in the progress of events had become so directly in- volved in the support of the views of the British government, that it became necessary for their own personal safety to leave the col- ony, and pass into the British province of Nova Scotia, or within the lines of the British army. ‘The estates of these men were by order of State authority, taken possession of by the Sheriffs of the counties, leased to tenants, and the rents received for the benefit of the State. At the September session, 1779, it was “‘ Voted and Resolved, That Adam Comstock, Rowse J. Helme, Benjamin Bourne, and David Howell, Esqrs., be and they are hereby ap- pointed a Committee to draught a Bill for Confiscating the Es- tates of Persons inimical to the Liberty and Independence of the United States of America.” ‘The Confiscation act passed Octo- ber session, 1779, and is entitled—
_“ An Act for Confiscating the Estates of certain Persons therein described.” The preamble declares, That all Countries have a Right to the personal services of its Inhabitants during the Inva- sion of Enemies, and the withdrawing themselves is a forfeiture of all Rights, Privileges and Inheritances.
The Act declares, that all who adhere to the King of Great Britain, or have withdrawn. from the State, without permission of the Assembly, shall be considered as aliens. It declares, that all lands, and all other estates of such persons shall be forfeited to the State, and remain for its sole benefit. Courts of Judica- ture were established to decree a forfeiture, with all the forms of procedure, the special selecting of jurors, &c., &c. In the last section of the Act we read as follows:
“ Provided always, and be it further enacted by the Authority aforesaid, 'That all the Debts justly due, before the time of the Commission of the Offence, to any subject of the United States, from any of the Persons who are aforedescribed in this Act, shall be payable out of their respective Estates.”
This Act of Confiscation placed the State in the position of an heir at law. She took the property so confiscated, subject to the indebtedness stated in the foregoing proviso. ‘The property was to the Statea TRUST FUND. She received it as such, and it will be hereafter shown that she has failed to perform that trust.
6 THE RHODE ISLAND STATE DEBT.
The amount of claims against Absentees was probably over — $60,000; redeemed probably about $52,000; now due say $7,000. 3
But in further and full confirmation of the inienion of the — General Assembly, to carry out the Proviso securing payment to all who held claims against those who adhered to the inter- ests of the Crown, at the February Session, 1783, we find the following Act of Assembly as recorded in the Schedules of the State.
“ An Act for securing to the Creditors of the Absentees, whose Estates have been confiscated to and for the use of the State, their several demands as reported by the Committee who were appointed to settle the several claims exhibited against the said Estates.”
“Whereas, the Committee appointed to settle the several claims exhibited against the Estates of the Absentees which have been confiscated to and for the use of the State, reported unto this Assembly, that there are due the following sums from the ‘Estates of the said Absentees to the ad persons, viz.
Here follows the names of the persons who presented claims above referred to, stating the sum allowed to each — comprising those whose claims have been paid in whole, and those whose claims are now held unpaid; being on Notes again and again — renewed; Interest again and again having been paid under the different acts of Assembly, authorising and directing the General Treasurer so to do. ‘The Act further provides:
* AND, WHEREAS, some of the aforesaid Demands are upon securities which carry an interest, and others are upon Book Ac- counts which do not; and as this Assembly did, in order to pre- vent the Estates aforesaid from being wasted, and for other weighty reasons, pass an Act thereby putting it out of the power of the Creditors to receive their demands in the common course of Law, and it is therefore just and reasonable that Interest should be allowed upon the Book Debts and other demands which are adjusted, from the time the respective Hstates were taken posses- sion of by the State ;
It is, therefore, Enacted by this General Assembly, and by the Authority thereof, ‘That an interest of six per centum per annum be allowed upon the Book Debts and other Debts, &c., &c.”
In furtherance of the endeavors of the State to carry out the foregoing Acts, it is seen by the official records that from the general depression of property, resulting from the scarcity of specie, some of the Estates of Absentees were found insufhcient to pay all claims against them; these were given up to creditors in full payment of the obligations held; the State reserving to itself any surplus that might be found after payment of claims held against the confiscated property.
The estates of “ Walter Challoner, of Thomas Hazard’s House and Lot, 150 feet by 100, James Clark’s House, Thomas Ban-
ITS ORIGIN. | ”
nister’s House and Lot, John Nichols one Acre, Moses Hart half an Acre, House, Oil Works, Stable and Store, John Andrews _ House and Lot, Edward Thurston House and Lot in Newport, and forty Acres of Land in Middletown, Achurs Sisson Land on New Shoreham, Richard Beals House and Lot, Gilbert Dublois
House and Lot in Providence, were given up to creditors.”
It has been believed by business men, that claims against solvent estates were more desirable than those against such as were insolvent— but in the case of the confiscated property it proved otherwise. Claims were allowed and paid on the above- named property to the extent of its value; but claims held against the estates of those who absented themselves, leaving large and valuable estates, which were taken by the State under the Act of Confiscation, are now wholly repudiated. Bankruptcy in 1783 was far different from the Bankruptcy in 1854; failures were then scarce, and the depression of property was undoubtedly the cause of a deficiency of means of Walter Challoner and others. A small deficiency was probably found on liquidating claims, the ereditors receiving nearly their whole debt; but the unfortunate holders of claims against solvent estates are now driven from the doors of the ‘'reasury of Rhode Island pennyless, and not only that, but they are sLANDERED as Knaves anp CueEatTs.
Such was the character of claims against confiscated estates, and such was the then legislation of the State to secure to the creditors the full payment of Debts which the State now Repudi- ates. 5,
At the June session, 1780, the Treasury being empty, an act passed for emitting £20,000 in paper bills, funded on the real estate of the State. The bills to be a lawful tender in the pay- ment of all silver and gold contracts. Five confiscated estates, which are stated in the act to exceed in value the sum of £20,000 in silver or gold, were specifically stated as the property pledged. The condition of the issue was, that the whole sum so emitted, be redeemed “on or before the first day of January, 1781, in Silver or Gold, at the rate of one Spanish Dollar for Six Shil- lings, or Gold equivalent, together with an Interest at the rate of Five per Cent. per Annum from the Date.” ‘The act further stated, that the farms be sold on or before the first day of Decem- ber following; and if these farms shoild be insufficient to redeem all the bills, other real estate, belonging to the State, should be sold to meet the deficiency.
A portion of these bills are a component part of many of the claims now held by citizens against the State.
There is also another claim we will refer to, although it is of an earlier origin than the large sums before stated, viz.: The in- debtedness of the colony before the revolution. As the colony was justly indebted to her own citizens, the honest men of the days of the Revolution, and who officially held the government of the State, justly considered themselves bound to make pay- ment to their patriot brethren of valid claims against the Colony ; and those claims were assumed as a part of the State debt.
8 THE RHODE ISLAND STATE DEBT.
They are stated in the books as “114 Notes issued previous to the late Glorious Revolution.” Official documents prove the claims thus assumed to have been, in 1795, $11,495 99, and in all the assumptions and payments since made under all the acts for redeeming State obligations, from the earliest history to the _last appropriation in 1820, these claims have shared equally with all others held by individuals against the State. Some smail part of the present State debt can be proved to be of this origin. The debts thus far created, exclusively, of the State, are as follows : Bills of Credit under the different issues by the Colony from May, 1775, to July, 1776, : - $233,333 Bills of Credit issued by the State, October, 1776, - 66,670 Loans ordered by Acts of Assembly from Decem-
ber, 1776, to February, 1779, _ - - - - 933,333 Paper Bills issued June, 1780, funded on realestate, - 66,666 Notes for Confiscated estates (in 'Trust) about - 60,000 114 Notes previous to the late “ Glorious Revolu-
tion,” - - : - - : - - 11,495
Total, $971,497
The aforesaid indebtedness was of a character exclusively that of the State. It was an indebtedness with which the United States had nothing todo. The obligations were created solely by State legislation, and as such were to be redeemed by the State. The bills of credit; the money procured by loans ; the paper bills emitted under the act of 1780, were all placed in the Treasury, and drawn out at the pleasnre of the State, both for State purposes, or those of a more general character. That they could not be claims against the General Government is plain from the 12th article of the Confederation, which says, “ All. Bills of Credit emitted, Monies borrowed, and debts contracted by or under the authority of Congress, &e., shall be deemed and con- sidered as a charge against the United States.” 'The bills of credit and loans ordered, as above referred to, were solely by State au- thority, and therefore alone on State responsibility. The notes to creditors of Absentees, and the notes previous to the Revolu- tion, were solely against the State. ‘The claims of the State against the United States must originate from “ disbursements and advances,” for the purposes stated in the act of Congress to which we shall shortly refer, passed August 5, 1790, after the adoption of the Constitution. That act specifically states that the Commissioners allow “all such as shall have accrued for the general or particular defence during the war,” “although such claim may not be sanctioned by the resolves of Congress, or sup- ported by regular vouchers.” We, therefore, are fully confirmed in the positions, that money and bills of credit placed in the ‘Treasury, and the other items above alluded to, could not be sub- stantiated as a claim against the United States — the remedy of the State was her “ disbursements and advances.” Although this Act passed as a part of the rules which governed the Commis-
ALL ASSUMED BY THE STATE. 9)
sioners of the United States, in settling the accounts with the individual States in 1793, the same principles had been in practi- cal operation in this State in her disbursements and expenditures during the war, as will be seen by the following statements, and by abbreviated extracts from the Schedules in the office of the Secretary of State.
It was a part of State policy to call into the ‘Treasury all vouchers for military services, supplies, and every variety of indi- vidual claims, during the revolutionary war; and on surrendering these vouchers, the General 'Treasurer gave to the holders a State note or certificate. Such were his directions by various Acts of the Assembly. ‘The vouchers thus rendered in, were the proof of assumption by the State government, and enabled the State to sustain a charge against the General government. <A special statute of June, 1782, authorized and directed the General 'T'rea- surer to receive such vouchers, and give State notes therefor both for the principal of such voucher and the interest thereon from its date. Other special Acts were passed for a great variety of indi- vidual claims to be thus called in.
State notes, for half pay, were given to the heirs of all com- missioned officers who were slain or died in the service.
State notes were given to disabled officers and soldiers.
State notes were given for all stock driven from Block Island, Jamestown, Prudence, Hog Island, and the south part of Rhode Island. Such of this stock as was suitable was slaughtered for the army —the residue sold and the proceeds paid into the Treasury. |
State notes were given for slaves who entered the army.
State notes were given for boats and scows.
State notes, to a very large amount, were given individuals for army supplies, both such as were voluntary and those taken by impressment, by order of Quartermasters, Commissaries, &c.
State notes were given for depreciation of wages, very largely increasing the State debt.
State certificates were issued to an immense amount for mili- tary services. All these were charged the General government, making an aggregate almost incredible.
These abbreviated extracts (which might, if necessary, be ex- tended to 1783) are so many exemplifications of the vast expendi- tures for the “@eneral and particular defence, during the war,”
and that the State did, by her own authority make all these
“ disbursements and advances, although not sanctioned by the re- solves of Congress;” charging the whole against the United States, and giving notes or certificates to her own citizens, who in all cases could make application for payment to the State alone. |
In addition we will add, that during the whole war, from 1775 to the proclamation of peace, continued and large requisitions were made by the State on the different classes of the citizens. On the farmers for grain, hay, corn, beef, &c. On the artizans and mechanics for hats, shoes, wagons, &c. On the trading
2
10 THE RHODE ISLAND STATE DEBT.
class for blankets, dry goods to be made into clothing, &c., to- gether with an immense army expenditure, every citizen from 16 to 60 being a soldier, not exempting members of the General Assembly, except when in session. Even the industry of the women of the State was severely taxed for spinning and weav- ing linen and tow cloth for shirts, and in spinning yarn and knitting stockings for the soldiers, all which duties were cheerfully and promptly performed; the spirit of Independence being the rallying principle with all classes and of all ages. With other available means for prosecuting the war by the State, large sums were realized from confiscated estates. Taxes to large amounts were imposed in the currency of the State, and as our disbursements and advances were far greater than our quota of war expenses, frequent remittances were made us by the United States, which were again expended for the general defence, or ap- propriated to extinguish the acknowledged indebtedness of the State to her own citizen creditors. 'The Continental Loan Office Certi- ficates alluded to in the Act of Assembly, May 2d, Session 1778, were a part of the remittances then stated. ex
In 1780, and each successive year from that to 1785, taxes pay- able in gold or silver were ordered, varying from £17,000 to £20,- 000, and £37,000, or in other words $56,000 to $123,000 for each year. We have not seen in the records any distinct refusal, or any neglect by any town to answer the calls thus made on them, however onerous they were, except the town of South Kingstown, notwithstanding she was the richest agricultural town in the State. At the August session of Assembly, 1785, page 13 of the Schedule, we find the following statement, preamble, and act of the General Assembly, viz. :
“ Whereas the Town of South Kingstown is greatly in arrears for 'T'axes heretofore assessed upon the said Town: and, whereas, the Representatives of the said Town have represented unto this Assembly that from the scarcity of circulating Cash, and the poverty of the said Town, it is impossible for the Inhabitants thereof to pay the said outstanding taxes in gold and silver: That they have the greatest prospect of procuring Certificates issued by the General 'l'reasurer for the Interest of Loan Office Certificates, and Debts consolidated by Edward Chinn, Esqr., the Commissioner for settling the accounts of the United States in this State; and that thereby they will be enabled to pay their ar-
rears, and be upon a Footing with their sister Towns. It is .
therefore Voted and Resolved, that the inhabitants of South Kingstown be, and they are hereby allowed to pay unto the several Collectors of Taxes in the said Town their several and respective Taxes in Certificates which are now issued, or may be issued by the General ‘Treasurer before the last Monday of October next, for the Interest upon Loan Office Certificates, or for Debts liqui- dated and consolidated by the said Edward Chinn.”
The aforesaid certificates are precisely the same as those car- ried into the Treasury under the Act of 1795, on which Funded Stock was then paid, and new certificates issued for the balance,
zs Fa
ALL CONSOLIDATED TO SPECIE VALUE.. 11
and which now constitute a part of the Registered State Debt
= now due. ..
This Act of Assembly in favor of South Kingstown, at the re- quest of her own representatives, was on her part a partial repu- diation of her town indebtedness.
Whatever might have been the state of the currency during all the earlier part of the great expenditures heretofore stated, or at what scale of depreciation the claims against the State ought to be equitably liquidated ; the State took all prudential care of her own interests, and at the same time was not indifferent to the tights of her own citizens. By State legislation a scale of depre- ciation was established, and the General Treasurer was autho- rized and directed by sundry Acts of Assembly in 1782, to call in all notes and securities then outstanding, to consolidate them to specie value, and for the nett amount after being so reduced, to give new notes payable in “ Lawrun, Sitiver Money.” ‘The final settlement between the United States and the individual States was made upon the same principles, all claims being re- duced to their specie value. As this statement is important in its bearings, and the consolidation lately attempted to be winked out of sight by members of the Legislature in their place, we here give entire copies both of the Acts of the State, and those of the United States, in full proof of our positions.
! 1782. June Session. Page 20.
‘Jt is Voted and Resolved, that the General Treasurer be, and he is hereby empowered and directed to consolidate the Securi- ties which have been issued from the Treasurer’s office in this State, bearing an Interest of Six per Cent. per Annum, and that he reduce the said Securities to a Specie Value, agreeable to this State’s Scale of Depreciation, calculating the same from the Dates of said Notes respectively.”
1782. August Session. Page 26.
“Itis Voted and Resolved that the General Treasurer in re- newing the State Securities, bearing an Interest of Six per Cent. per Annum, agreeable to an Act of this Assembly passed at the last Session, be directed to limit the Payment of said Notes to the Term of 'hree Years from the Date.”
1782. October Session. Page 4.
*“ [tis Voted and Resolved, hat the General 'l'reasurer be, and he is hereby empowered and directed to consolidate the Se- curities of this State, which have been issued by the General Treasurer in the Months of February and March, A. D. 1777, and bearing an Interest of Four per Cent. per Annum: That he re- duce the said Notes to their just value in Specie, according to the Scale of Depreciation established by this Assembly: That all the said Notes be reckoned as issuing from the 'I'reasury on the day the last note was dated, with Interest at Four per Cent. per An- num: And that the General Treasurer give his Notes payable One Half in Five Years, and the other Half in Six Years with In- terest at Six per Cent. per Annum for the same.
12 . THE RHODE ISLAND STATE DEBT.
kes>The following Note shows the manner in which the Gen- eral ‘Treasurer, practically executed the directions given for con- solidation in the preceding Act of Assembly. The new Note were made payable in “ LAWFUL SILVER MONEY.” |
The following is a fac-simile of the Note given under this Act.
State of Rhode Island and Providence Plantations.
Y_ Virtue of an Act of the Generat AssemB_y of thel] - 9 “| 1) State aforesaid, for calling in the Notes issued by thel @é \General-Treasurer, in the Months of February and March,
<cj| A.D. 1777, bearing an Interest of Four per g : Se N\| Cent. passed at the Session held in October 7\) A. D. 1782, and as General-Treasurer ty]| thereof, I promise to pay to Hnoch
be Ye / Sprague, or order, the Sum ofji&¢ S24) Five pounds & five-pence half-penny, 3 /Lawful Silver Money, within Five Years from the Date] hereof, with Interest at the Rate of Stx per Cent. per Annum gifor the same, until paid. Witness my hand, this Seventh] €@ Day of December, A. D. 1782, and in the Seventh| -
Se | Year of Independence.
JOS. CLARKE, Gen. Treasurer.
Y 5. O. Ss.
ie te
Another of like amount was given payable in Six Years.
The above consolidated Notes were brought in under the Act of 1795, and with the Interest amounted to $110.555 26 cents.— Five-sixths were paid in Funded Stock, and new Certificates giv- en for the balance; a part of which are the present State Debt. Are they not now due?
1782. November Session. Page 22.
“ An Act for consolidating paper Money heretofore issued by this State, and for ascertaining and fixing the value of the Notes heretofore issued by the General Treasurer for calling in and sink- ing the Paper Bills thereof.
“ Whereas this Assembly hath been compelled to issue large quantities of Paper Bills for a circulating medium, and from the Abundance of Paper Money in Circulation it became necessary to put a period to the Bills issued by this State; And whereas this Assembly have already passed an Act for consolidating the public Debts.
‘‘ Be it enacted by this General Assembly, and by the Authori- ty thereof, it is hereby Enacted, That any Person or Persons, be- ing possessed of the Bills of Credit issued by this State, may carry the same into the General Treasury of the State: and the Gener- al ‘Treasurer thereof is hereby directed to receive the same, and to calculate the Value of the said Bills agreeable to this State’s Scale of Depreciation, as the Value of the said Bills was on the
ad ——_
>
4
f ‘ = _
ALL CONSOLIDATED TO SPECIE VALUE. 13
first day of June, A. D. 1778, being the time the said Bills were
_ struck out of Circulation; and Consolidate them, and from that _ period reckon a compound Interest of Six per Cent. per Annum
up to the day the said Bills shall be carried into the General Trea-
sury as aforesaid, and the General Treasurer is hereby directed to give his Note of Hand therefor as Treasurer aforesaid, to the pos- sessors thereof, payable within Three Years from the Date, with an Interest at and after the Rate of Six per Cent. per Annum.
“ And whereas this Assembly did, by an Act passed in May, Second Session, A. D. 1778, direct the General Treasurer to re- ceive the Bills aforesaid into his office, and issue his Notes there- for, agreeable to said Act, and whereas many persons neglected to earry the said Bills into the General Treasury untila considerable Time after the passing of said Act, and the Notes issued by the General Treasurer, bearing dates at the respective Periods when carried into the ‘Treasury, Injustice will be done, if a fit remedy be not provided.
“ Wherefore, Be it further enacted by the Authority aforesaid, That any Person or Persons, being possessed of the Notes issued by the General ‘Treasurer, in consequence of the said Act of this General Assembly, passed at May second Session, A. D. 1778, for calling in the Paper Bills emitted by this State, and struck out of circulation, may carry the same into the General Treasury : and the General ‘Treasurer is hereby directed to consolidate the same, and to calculate their respective values according to the Scale of Depre- ciation of this State, of the Worth of circulating Paper Money on the first day of June, A. D. 1778, and to calculate the Compound Interest from said Date until the time when the said Notes shall be carried into the General Treasury, and to give his Notes there- for, with an Interest at and after the Rate of Six per Cent. per Annum, payable in Three Years from the Date: Any Law to the contrary notwithstanding.
* And whereas this Assembly did, at the Session in June last, order that the aforesaid Notes, given for the aforesaid Bills, which were payable at the Rate of Six per Cent. per Annum, should be carried into the General Treasury, and the said General 'Treasur- er be empowered to consolidate the said Notes agreeable to their respective Dates, and issue new Notes for the same, with the com- pound Interest thereon.
“ Be it further Enacted by the Authority aforesaid, That the General Treasurer be, and he is hereby empowered, upon applica- tion of any person possessed of the aforesaid Notes by him last issued, of a later date than the first day of June, A. D. 1778, to issue new Notes for all such as he may have consolidated by Vir- tue of the aforesaid Act, passed at June Session last; and that all the said Notes which may be brought unto him as aforesaid, be by him consolidated on the said first day of June, A. D. 1778.”
We will here add the Act of Congress, passed August 5, 1790, showing, that in the settlement of accounts of the United States with the individual States, all debits and credits must be re- duced to a specie basis, and that all claims must be those
J4 THE RHODE ISLAND STATE DEBT.
for “the general or particular defence,’ and to be allowed on principles “of general equity,” “although not sanctioned by the Resolves of Congress, or supported by regular vouchers,” and all claims must be for “ disbursements and advances.”
“Chapter 65. An act to provide more effectually for the set- tlement of the accounts between the United States and the indi- — vidual States.
“Sec. 1. Be it enacted by the Senate and House of Represen- tatives of the United States of America in Congress assembled, that a board, to consist of three Commissioners, be, and hereby is established, to settle the accounts between the United States and the individual States; and the determination of a majority of the said Commissioners, on the claims submitted to them shall be final and conclusive ; and they shall have power to employ such clerks as they may find necessary.
“Sec. 2. And be it further enacted, That the said Commission- ers shall respectively take an oath or affirmation, before the chief Justice of the United States, or one of the associate or District Judges, that they will faithfully and impartially execute the duties of their office. And they shall each of them be entitled to receive at the rate of two thousand two hundred and fifty dollars per an- num, payable quarter yearly, atthe Treasury of the United States, for their respective services.
“Sec. 3. And be it further enacted, That it shall be the duty of the said Commissioners, to receive and examine the claims which shall be exhibited to them before the first day of July one thousand seven hundred and ninety-one, and to determine on all such as shall have accrued for the general or particular defence du- ring the war, and on the evidence thereof, according to the prin- ciples of general equity, (although such claims may not be sanctioned by the resolves of Congress, or supported by regular vouchers,) so as to provide for the final settlement of all accounts between the United States and the States individually ; but no evidence of a claim heretofore admitted by a Commissioner of the United States for any State or District, shall be subject to any such examination ; nor shall any claim of any citizen be admitted on a charge against the United States, in the account of any State, unless the same was allowed by such State before the twenty-fourth day of Sep- tember, one thousand seven hundred and eighty-eight.
“Sec. 4. And be it further enacted, That it shall be the duty of the said Commissioner to examine and liquidate to Sprcig VaLuE on principles of equity, the credits and debits of the States, already on the books of the Treasury, for Bills of Credit, subse- quent to the eighteenth of March one thousand seven hundred and eighty.
“Sec. 5. And be it further enacted, That.the Commissionérs shall debit each State with all advances which have been, or may be made to it by the United States, and with the interest thereon to the last day of the year one thousand seven hundred and eigh- ty-nine, and shall credit such State for its DISBURSEMENTS AND AD- VANCES, on the principles contained in the third section of this Act,
= ARS J
“ALL ALLOWED BY THE UNITED STATES. 15
with Interest to the day aforesaid, and having struck the balance
due to each State, shall find the aggregate of all the balances, :
which aggregate shall be apportioned between the States agreea- bly to the rule hereinafter given, (see section 6,) and the diflerence between such apportionments, and the respective balances, shall be carried in a new account to the debit or credit of the States re- spectively, as the case may be.
“ Sec. 6. And be it further enacted, ‘That the rule for appor- tioning to the States the aggregate of the balances first abovemen- tioned, shall be the same that is prescribed by the Constitution of the United States, for the apportionment of representation and di- rect taxes, and according to the first enumeration which shall be made.
“ Sec, 7. And be it further enacted, That the States which shall have balances placed to their credit, on the books of the ‘Treasury of the United States, shall within twelve months after the same shall have been so credited, be entitled to have the same funded upon the same terms with the other part of the domestic debt of the United States; but the balances so credited shall not be trans- ferable. .
“ Sec. 8. And be it further enacted, That the clerks employed, or to be employed by the said Commissioners, shall receive like salaries as clerks employed in the ‘Treasury department.
“ Sec. 9. And be it further enacted, That the powers of the said Commissioners shall continue until the first day of July one thousand seven hundred and ninety-two, unless the business shall be sooner accomplished.
(“ Approved August 5, 1790.”)
¢ Chapter 106. An Act to extend the time limited for settling the accounts of the United States with the individual States.
“Sec. 1. Be it enacted by the Senate and House of Repre- sentatives of the United States of America, in Congress assem- bled, That the powers of the Board of Commissioners, which, by the Act passed in the second session of the first Congress, was established to settle the accounts between the United States and individual States, shall continue until the first day of July, one Thousand seven hundred and ninety three, unless the business shall be sooner accomplished.
“ Sec, 2, And be it further enacted, That the aforesaid Act shall extend to the settlement of the accounts between the United States and the State of Vermont; and that until the first day of December next shall be allowed for the said State to exhibit its claims.
Sec. 3. And be it further enacted, That from and after the pas- sage of this act, the pay of the principal Clerk of the said Board shall be the same as the pay of the principal Clerk in the Audi- tor’s Office.
«“ Approved January 23, 1792.”
These developments naturally lead to a fair investigation of the state of accounts between the United States and the State of
16 THE RHODE ISLAND STATE DEBT.
Rhode Island; and the facts thus far fully proved, warrant us in the assertion, that the claims between the State and her own citizens, as also those between the United States and this State, were strictly settled on a specie basis. ‘The immense amodunt of the advancements made by the State, “for the general and par- ticular defence during the War,” and that too after being consoli- dated to a specie value, is far beyond the bounds of human credu- lity. That a State, whose population did not then exceed 50,000 inhabitants, and the whole of whose taxable property could not be over $10,000,000, should (after deducting all receipts from the United States) sustain claims amounting, in eight years, to * $2,005,366,” being more than $250,000 for each year, would seem to be so absurd, that the declaration of such fact must be taken as the wild assertion of a deluded enthsiast; and we would hesitate to even make any such suggestion, were it not susceptible of the clearest proof by documents in the proper offices both of the General and State Governments. Although the following credits, by the United States to this State, and the debits against the State are shown by the final settlement subsequently made in 1793, that settlement was on the state of accounts as they existed at the close of the war in 1783, when the credit and debit stood as follows :
Rhode Island is credited for war expenses, - - $3,782,974 She is charged back sundry payments, - : 1,777,608 Nett balance on advancements, bese - - - 2,005,366 She is then charged her quota of war expenses, —- 1,505,755 Nett balance to her credit, = - - - : : $499,611
This statement was on a consolidated specie basis, and makes the astonishing development, that Rhode Island actually con-» tributed, during the eight years of the war, from resources fur- nished by her own citizens, $2,005,366; more than $250,000 for each year; and $499,611 over her quota. ‘This balance, with an interest at six per cent. from January 1, 1790, was ascertained by the final settlement in 1793, subsequent to the adoption of the Constitution, but based upon the accounts as they existed at the close of the war, as has heretofore been stated.
The correctness of this statement is confirmed by the report of Elisha R. Potter, attorney for the State, appointed by 8. Dexter, J. H. Weeden, A. Bosworth, J. 8. Tourtellot, and W. Updike, the Joint Committee in 1846.
Is it to be supposed that this State could yearly furnish her quota, as also a surplus sum of half a million, being annually more than $250,000, for eight successive years, and not have created a State debt in addition to that against her when the war commenced. Can any man doubt that Rhode Island did claim and was allowed in the final settlement for every ‘“ disbursement and expenditure ” made under the civil or military orders of those in power ?
ie,
LOAN OFFICE CERTIFICATES. 17
In this connexion it may be proper now to explain the time and circumstances under which the aforesaid balance was paid this State, and the disposal made of it by the direction of the Secretary of the United States Treasury, for payment to State creditors.
Shortly after the adoption of the Constitution, the great Fund- ing system of Alexander Hamilton, then Secretary of the Trea- sury, was sanctioned by Congress, and as it was well known to Mr. Hamilton that Rhode Island was a large creditor State, he promptly assumed the payment of $200,000 for her benefit. But it was also known to him that the different items of State indebt- edness for Bills of Credit, money hired, paper bills emitted in 1780, and notes due creditors for confiscated estates, were not legitimate claims against the United States; such Bills of Credit, money hired, &c., having been placed in the State Treasury for State or other purposes, and as such drawn out, that for the General government was so charged, and subsequently allowed and paid. Mr. Hamilton therefore ordered that the $200,000 be expended in payment of such only as were exclusively due for Army expenses, leaving all others to be settled by the State in her own way, whenever her claims against the United States were ascertained by a final settlement, and so paid over to the State. This decision did not ultimately affect the State Treasury a single cent, every claim being held by every citizen against the State. The only difference of results was, to which portion of the claims the $200,000 should then be applied — who should then be paid, and who subsequently. By the payment under this decision the State indebtedness to her citizens was so far exhausted.
It appears by the official records that the claims to be presented to Jabez Bowen, United States Loan Office Commissioner, and that the amount carried in was $344,259 49, being $144,259.49 more than the amount assumed by the United States. The $200,000 was divided pro rato to the claimants, and a pro rato of the $144,259 44 was in like manner paid to them by a new certificate issued by the said Jabez Bowen, and were of the fol- lowing form:
'
“United States Loan-O fice.
No. 86 | Giate of RHODE ISLAND, January 1st, 1792.
Be it Kitow, Tuat Josiah Draper of Attleborough, Yeoman, has in pursuance of the Act, entitled, An Act, making provision for the Debt of the Wnited States subscribed and deposited in THIS OFFICE one @ertificate of Debt, due by the Stats of Rhode-Island, which has been cancelled, and which, with the Interest computed thereon, according to the Laws of said State, to the last day of the Year one thousand seven hundred and ninety-one inclusively, amount to Sixty-one Dollars and etghty- three Cents, on account of which, 3 #jave, according to the directions in said Act, issued a Certificate of Sunded Mebt, amounting in the whole to Thirty-five Dollars and ninety-five Cents, leaving a Balance due to. the said Josiah Draper amounting to Twenty-five dollars and eighty-eight Cents, being Ais proportion of a Sum subscribed in said Certificate, exceeding the Sum assumed in the Debt of said State, by the Act aforesaid; which
3
18 THE RHODE ISLAND STATE DEBT.
Balance remains due to the said Josiah Draper, by said State of Rhode- sland, |
~ $258eDollarsiand 88 cts. | JABEZ BOWEN, Commissioner.”
The foregoing Certificate was issued for a balance not provided for by the $200,000 funded stock delivered Rhode Island soon after the adoption of the Constitution, and it expressly states the original claim to be “due from the State of Rhode Island.” In the new Certificate by the Commissioners of Loans it is specific- ally expressed, that the Certificate thus issued was a balance due the said Josiah Draper, “which balance was due from the State of Rhode Island.” . 4
The final settlement in 1793, found Rhode Island still a credit- er State to the amount of $299,611, which was paid her in 1795, with interest from 1790, in Funded Stock placed. in the United States Loan Office in this State, and to the credit of this State. This stock was paid her as a State; she received it as a State; she appropriated it under her own State powers to the extinguish- ment of State debts, recognised by the State.
The existing claim of this State against the United States, at the elose of the war, has been shown to have been $499,611, and at the same time, as subsequent investigations fully prove, the State was indebted to her own citizens a much larger amount, viz., rising $700,000. The States were then held together only by articles of Confederation. No central and efficient govern- ment had been formed. Each State had its own revenue laws, under the control of State custom-house officers, and appropriated the revenue thus collected to its own State purposes. This revenue would not meet the exigencies of the State, and the can- celling of her indebtedness as it became due. Impost certificates or orders were given to be appropriated to the payment of inter- est and other purposes, but the State revenue failed to be sufficent for the object stated on their face, and these orders now constitute a part of the present State Debt.
By looking back to affairs strictly those of the State we find, that at the close of the war in 1783 to 1786, the scarcity of money was severely felt by all classes of men. The pecuniary credit of the State was depressed. State and individual Bank- ruptcy paralyzed public and private energies. It was scarcely in the hope, much less in the expectation of the most sagacious that the United States could pay their indebtedness to the State, and consequently the State conld not pay her indebtedness to her own citizens. Similar adversity also pervaded other States. A small indebtedness from one citizen to another, under a forced payment by process of law, was to the debtor party total des- truction, his estates, real or personal, must be sold for a sum merely nominal. None could suggest a remedy that did not carry some substantial objections. In some States an armed rebellion prevailed, and the Courts of Justice were surrounded by a
PAPER MONEY OF 1786. 19
tumultuous mob. In Rhode Island the experiment of a paper currency had its zealous advocates, but the proposition was by others as ardently opposed. At the election of State officers for 1786, the Paper Money party prevailed, and John Collins, of Newport, was elected Governor. At the May session an Act passed for emitting £100,000, or $333,333 paper bills, to be re- _ deemed in fourteen years. ‘'hese were to be divided to the towns in the ratio of the last State tax; and by a Committee to to be confirmed by the Assembly, to be subdivided to every citizen who could give his bond and mortgage on land of double the value of the sum he should receive. Each share it is believed was about $35. The conditions of the issue were, an interest of four per cent. per annum, to be paid yearly to the State for the _ first seven years, when the interest should cease, and for the next seven years one-seventh part of the principal sum to be yearly re- turned into the Treasury, and when so returned, “To BE con- SUMED BY FIRE.” Before the issue was completed, preparatory. to its distribution, the bills were much below par, and that de- preciation rapidly increased. At the time of the first forced pay-
ment, as hereafter will be seen, the depreciation was - 6 for1 At the second, - - - me - 2 6 ford At the third, - - - : - - - - 7 forl At the fourth, - . - - - - i el rfor.d At the fifth, - - - - . - - - 8 forl At the sixth, - : - ° - 12 for1 And at the Beet day of AA nly, 1789, - - - - 16 for1
These rates were however rather nominal than real, for when at 15 for 1, July 1789, one silver dollar would scarcely be given for $30 in paper. T he bills being so reduced in value, were "handled with less care, and from this, with other causes, a considerable sum was never returned to the Treasury.
The form of Bills issued was stated in the Act, and in the fol-
lowing phraseology: (“ No. )
“ State of Rhode Island, &c. This Bill is equal to in lawful Silver Money, and shall be received in all payments within this State, agreeable to an Act passed by the General Assembly of this State, at their May Session, holden in the city of Newport, A. D. 1786.”
These bills, carrying no interest, redeemable at no place, based on no property, and by a subsequent Act of Assembly scaled at a depreciation of Five for One when circulated, and rapidly fall- ing down to Fifteen for One, were made a ender in payment of debts of specie value, carrying an interest and redeemable at the Treasury, held by the creditors of the State ; and that, too, under a decree of forfeiture of all not brought into the ‘Treasury and thus exchanged. The Bills were also a tender in payment of debts due from one citizen to another.
The writer of this history remembers many important facts relating to the issue of these Bills, and some of the effects conse-
90 THE RHODE ISLAND STATE DEBT.
a ae q | « ‘
|
quent to this paper issue. After the passing of the Act authoriz- — ing the Tender, and before the Bills were in circulation, he well | remembers that many individuals at once passed their private — |
notes into the neighboring States, endorsed and deposited them
with some friend there, avoiding the possibility of a Tender of —
the Bills of 1786, in payment of notes held against individuals. ‘These notes were returned after the passage of the Act of October, 1789, repealing the Act making the Bills of 1786 a lawful ‘Tender.
The act making these Bills a ‘Tender in payment of all private
debts, was to the State a further source of State revenue, as it —
decreed that all money thus tendered and not received by the creditor, should by such refusal become the property of the State.
It can hardly be doubted that the object of the paper money party was originally to furnish a circulating medium, the expenses of the war having completely exhausted the specie from the
State. As the enormous debt was fast accumulating, by the in- —
crease from the Interest account, it was suggested by those in
power that the paper money then in circulation could be diverted —
from those who held it, and by an adroitness of financial man-
agement be applied to extinguish individual claims against the — State. Long before the emission was completed, the General —
Assembly, ae their June Session, 1786, ordered a Tax of £20,000. At the March Session, 1787, (the Bills having then been dis- tributed) an Act passed, entitled
“ An Act, &e. , appropriating the Money in the General, Treasury
to the discharge of all State Securities, except those originating :
from Four per . Cent. Notes. 1. “ Be it enacted, &c., That all persons holding publie Securi-
ties of the Heneminatione aforesaid, be directed “t3 apply to the
General Treasurer to receive Five shillings on the Pound, in part of every such security held as aforesaid, within six weeks after
the rising of this Assembly: That all such persons neglecting or |
refusing ‘to do the same, shall forfeit to and for the use of the State the said fourth part of all such securities held as aforesaid ;
and that the Interest arising upon the Fourth part of the afore- 1
said securities be stopped immediately after the. rising of this Assembly.”
At the same session an Act passed to tax £20,000.
2. June session, a Resolution passed for the payment of another one-fourth part of the same claims as those under the Act of March last, and on the same conditions of forfeiture.
September session, an Act passed to tax £30,000, payable on or before the 25th of January next.
1788, February. “ Voted, That Collectors receive State Notes given for six per cent. Notes, not larger than £10: provided the holders have received the former dividends ordered to have been yaid.”
3. March. “ Voted, That one-fourth part of the Notes of former descriptions be paid under the same conditions of forfeiture: be- ing the third dividend.”
4, May. * Resolved, That all persons holding impost orders, and
—
PAPER MONEY PAYMENTS. . 21
the Securities of the State, the Ist, 2d and 3d quarters having
been paid, may apply to the General Treasurer, who is directed
to pay the last quarter of said impost orders and securities.” June. “ Resolution to 'Tax £30,000.
October. “ Whereas, it is the intent of this Assembly to dis- charge the public debt of this State as soon as possible, &c., and - as a payment can be made to the holders of Six per cent. Notes consolidated from Four per cent. Notes:
- o. “ Resolved, That the Treasurer pay the holders of Six per cei Notes, Banedlidated from Four per cent. Notes, one-fourth part of principal and interest, and endorse the same thereon.”
“ And it is further resolved, &c., That those who refuse to carry them in within two Months after the rising of this Assembly, shall forfeit the same for the benefit of this State.”
1789. March. “ An Act for paying off the State securities, excepting the Six per cent. Notes declared to be forfeited, and which did not originate from the Four per cent. Notes.”
“ Whereas Acts passed directing payment within limited pe- riods, which have elapsed, and many persons had not seasonable knowledge of said Acts, and whereas the State of the Treasury will permit that the whole can now be fully paid,”
“Jt is therefore Resolved, that all persons holding orders on the Treasury, Impost orders, orders for interest on Loan Office Cer- tificates, notes originating from Four per cent. notes, or any notes and securities, saving those Six per cent. notes, whereof no part has been paid, which did not originate from four per cent. notes, may make application to the Treasurer, who is ordered to pay the same.
“6 And be it further enacted, That all who refuse to receive their pay before May the eighth next, their notes, &c., shall be forfeited to the State.”
March Session. An Act passed to Tax £20,000.
The Act of March, 1789, is general and sweeping in its charac- ter, ordering all claims of whatever origin against the State to be brought in for payment; and it expressly declares “ ‘That all who refuse to receive their pay before May the eighth, their said notes, &c., shall be forfeited to the State.” And as is heretofore stated, at the same session an Act passed to ‘Tax £20,000. All the paper money Acts here referred to were during the administration of Gov. John Collins.
If we review the Acts in relation to taxation and claims, we find the following results; that all taxes ordered from June L786 to March 1789 were in amount £120,000 or $420,000; and with this sum all obligations against the State were to be redeemed. ‘The statement of Gov. Fenner j in 1791—the statement of Elisha R. Potter, as counsel for the State in 1846, and that of Wilkins Updike in his publication in the Journal “ip 1848, but slightly vary ; making the amount of claims redeemed in the paper money of 1786 from “$260, 000 to $263,000: and Mr. Potter says “ being a little more than half the whole amount of the State Debt.” Sub- sequent events from 1789 to 1819 show that the whole indebted-
22 THE RHODE ISLAND STATE DEBT.
ness was much greater than was supposed in 1789, viz.: $757,-
893, even after deducting the consolidated value of payments made
in the paper money of 1786. | | bit | There was redeemed under the assumption of 1790, $200,000
Do. do. under the Act of 1795, 419,223 Balance Certificates issued under the Act of 1795, 83,892 — Certificates issued under the Acts of 1797 and so on |
~ to 1819, 54,778 Making the sum above stated, $757,893,
demonstratively proving the whole taxes ordered, if all promptly paid in, infinitely less in amount than the payments required to be made. An irresistible inference follows from these facts, that all these Acts of compulsion and forfeiture were invalid and in- operative.
That the paper money payments, and Acts of Compulsion, were the result of pecuniary embarrassment, must be manifest to all; _ and it must be equally manifest, that those Acts were not of the ordinary character as existing between debtor and creditor. They were on the part of the State, solely the exercise of Sovereign pow- er ; and whenever the situation of the public means and public credit should enable the State to do justice to the creditors who had been innocent sufferers, it was her bounden duty to retrace her steps. All the legislation to which we have so particularly re- ferred, was, as has been heretofore stated, under the eonfedera- tion, when no one could believé that the claims of Rhode Island, existing against the Union, could ever be paid. But the adoption of the Constitution followed close on the payments in paper mo- ney. Assumption of State claims against the United States was established. United States Funded Stock was to be given for State advances and disbursements. 'The General Assembly in the exercise of the same sovereign power, with almost hot haste repeal- ed the acts of forfeiture and the paper money payments, consoli- dating those already made, to specie value, conformably to the scale established by an act of 1791; adopting with an honesty of ~ purpose every possible measure to restore from choice, what had been taken from necessity. The act of 1791 was an honest act, for honest purposes. It was an Act of Consolidation on the pa- per money payments from 1787 to 1789, as full, perfect, and com- plete, as were the Consolidation Acts of 1782, before referred to, (page 11.) The object was, to place innocent sufferers in as se- cure a position as possible, consistent with the means of the State. The Act of Revival, specified that the State should not “ be held or obliged to pay on any of the said securities, either the principal or interest thereof, on any other terms than those which are pro- posed to subscribers to the loan of United States securities, agree- ably to the act of Congress, August 4th, 1790, entitled, ‘ An’ Act making provision for the debt of the United States.’ ” The payments made to the creditors of the State were precisely conformable to this condition. The Funded Stock paid this State — by the United States was 6 per cent., 3 per cent. and deferred.
ACT CONSOLIDATING PAPER OF 1786. 93
The first assumption by the United States was $200,000. That was expended in redeeming the paper of creditors at par—so far extinguishing individual claims against the State. The final set- tlement between the State and the United States was perfected July 1, 1793. ‘The balance due the State and interest to January 1795 was about $420,000, and was paid in like manner in Fund- ed Stock. ‘The State paid her creditors under the Act of 1795 in that Stock at par, $419,223 21. This was exactly conformable to the proviso in 1791. Balances were still due by the State to her own citizens. Here it was the study to pursue the same equal justice to the State and the creditors. The obligations outstand- ing against the State were at an interest of 6 percent. New se- curities were given under the Act of 1795 at an interest of four per cent., and at that too, from 1791, undoubtedly on the calculation of the General Assembly, that notes reduced in the rate of interest, and to remain at a simple interest, would be about equal to the payment in Funded Stock, the interest payable quarterly ; evi- dencing in every stage of the financial transactions in those days, a spirit of equity between the State and State creditors.
The consolidation Act of 1791 is in perfect keeping with the consolidation Acts of 1782. ‘The Bills of Credit, the Loans made the State from 1775 to 1779 were mostly in a more or less depre- ciated currency. The General Assembly in 1782, by several Acts of consolidation reduced all these to a specie basis, giving new notes payable in “lawful silver money,” thereby perfectly pro- tecting the interest of the State, and doing no injustice to the creditors. So in like manner the payments made by the State (under a decree of forfeiture,) in the paper money of 1786, then in a greatly depreciated state, were by the Act of Assembly of 1791, consolidated to a specie value, that value endorsed on the note, and the note re-delivered to the original holder, as evidence of his equitable claim against the State. By this Act the State protect- ed the rights of individuals, doing no injustice to the State. ‘The money paid by the State was at a rate of depreciation of about six for one.—'l'he consolidated value of $263,000 was nearly $46,- 000, and by this financial arrangement the State debt was to that extent reduced, costing the State nothing except the printing and circulating the bills. Can any man of common honesty complain of acts of such perfect reciprocity? Can he charge fraud against men who then sustained the measure ?
The whole legislation in relation to individual claims against the State, and more particularly the Acts of the Assembly March 1787, ordering payment under a decree of forfeiture, and other Acts on the same subject to March 1789, must convince all men, that the State alone was answerable to the individual creditors for payment of all Notes and Certificates issued from the Treasury of the State—for had the claims been however indirectly held against the United States, the State of Rhode Island had no powER even under her soverrIGNTy, to pass the peremptory act of forfet- ture. ‘This Act is of itself TESTIMONY NOT TO BE OVERTHROWN. Collateral to this, the account as stated between this State and
24 THE RHODE ISLAND STATE DEBT.
the United States in the final settlement, July 1793, shows facts in favor of the State, which leave no doubt that Rhode Island has been allowed for every “disbursement and expenditure” to the uttermost farthing—that she has been fully paid for every expense created “for the general and particular defence,” after deducting her QUOTA, which rightfully she was obligated to pay.
If the State went into the war witha State indebtedness against her, if she drew yearly from her own citizens to meet her quota, $200,000, for eight successive years, and at the close of the conflict was indebted only $138,670 35, the wonder is not at the magnitude of the debt—but at the prudential management which effected such favorable results, and that too in a State with only 50,000 inhabitants, and probably less than $10,000,000 of pro- perty. Repudiators with great caution evade all remarks touch- ing this QUOTA against the State—they say “ Rhode Island created no State debt, her expenditures were for the United States, to be paid by the United States and not by the State.” That she had a common interest with all, and bound to make a common expenditure with all, is by them kept hid from the public view.
Before proceeding to further remarks in relation to the memor- able Act of 1791, the Acts of Assembly in October 1789, and September 1790 demand particular attention.
The Act of 1789 repeals the Act of 1786 in the following lan- guage: |
« Whereas the General Assembly of this State at the session in May 1786, passed an Act emitting the sum of One Hundred Thousand Pounds in Bills of Credit, which were issued upon par with Gold and Silver Money, and were made a Tender in pay- ment of all Debts and Demands; but from VARIOUS AND UNFORSEEN CAUSES the said bills have greatly depreciated, so that continuing them a Tender will be productive of the greatest injustice ; Be it therefore Enacted by this General Assembly, and by the authority thereof it is Knacted—That all Paragraphs and Clauses of the said Act “ emitting the said sum in Paper Bills upon loan, and when emitted shall be a good and lawful ‘Tender for a complete payment and final discharge of all debts,” be and the same is hereby repealed.
And be it further Enacted by the authority aforesaid, that all Judgments be entered up for Silver Money, which may be dis- charged in Gold or Silver, or in Paper Money emitted by this State in May 1786, at and after the rate of Fifteen Dollars of the said emission for one Silver Dollar; or in real or personal Estate at the option of the Debtor.”
“The Act of 1790 authorizes the whole citizens who are indebt- ed to the State on Bond and Mortgage for the £100,000, with in- terest, of the emission in 1786, and loaned as heretofore shown, payable at different times to 1800, to come into the ‘Treasury, can- cel and receive their Bonds on the payment of one Silver Dollar for every Fifteen Dollars of their indebtedness to the State.”
These two Acts enables the whole people indebted to the Siate,
‘
REASONS FOR CONSOLIDATION. 25
to come into the Treasury, and with almost the smallest imag- inable sum to cancel the obligations by them given the State. But DESTRUCTIVE INDEED were the effects upon the credit- ors of the State, whose claims had been paid in the Paper Bills of 1786, and forced upon them by the SovereigN Power OF THE Strate, and now rendered ALMOST WORTHLESS by the ope- ration of the Acts of 1789 and 1790. :
It is worthy of special attention, that in the preamble to this Act of 1789, it is expressly stated, that “ from vaRIoUS AND UN- FORESEEN CAUSES, the said Bills have greatly depreciated, and the continuing them a Tender, will be productive of the greatest in- justice,” was passed when John Collins was Governor, and the
ower of State held by the same men who ordered the paper issue of 1786—they had during very little over three years witnessed the folly and injustice of their own measures, and it remained for them as speedily as possible to amend their own wrongs. ‘The Act of 1790 passed under the administration of Gov. Fenner, and an As- sembly holding opinions in unison with his own.
These Acts and their consequences led the minds of the Legis- lature to reflect on the great injustice done the creditors of the State, by the enforcement of payments in the depreciated paper of 1786—compelling the holders of notes given for valuable con- siderations heretofore consolidated to a specie basis—carrying in- terest, and payable at the Treasury of the State, to bring them into the Treasury, surrender them up, and to receive therefor the de- preciated and deprecating Paper Bills of 1786, carrying no inter- est, and not redeemable at the Treasury or elsewhere; and then by the Acts of 1789 and 1790 bringing this spurious issue down to a value scarce nominal. ‘These facts no doubt led to the passage of the Act of 1791, ordering all payments made in the Bills of 1786 to be consolidated to a specie basis, this consolidated amount to be endorsed on the original Note, and that Note to be re-delivered to its owner as evidence of the balance due him. It was by the State an act of manifest justice, and this claim should now be paid as a sacred debt due from the State.
The act of 1791 created nothing in favor of those who held claims against the State, more than the acts of October 1789 and September 1790 created in favor of those who were indebted to the State. ‘The State first took care of those who were indebted to the State, and by a like exercise of Sovereign Power provided for those who were creditors of the State, amending their own errors in favor of all.
As public opinion is in a great measure initiatory to the passage or repeal of legislative acts, the repeal of the legal tender of an ir- responsible currency, was the effect of that influence—it was also desired by those who enacted it; and even before the repeal of the foreing acts against the public creditors, so manifest was the injustice of a tender of worthless paper in payment of Just debts, that no man who valued his private reputation, dared to make such payment, unless his creditor came with the strong arm of the Law, pursuing his claim by the high mandate of Judgment
f
26 THE RHODE ISLAND STATE DEBT.
and Execution. In this event the disgrace of such payment was shielded by the necessity of the debtor. ‘These positions are veri- fied by the fact, that in many instances individuals, who had ten- dered payment in the paper of 1786, and in its greatly depreciated state, were compelled to revoke such tender to their honest credit- ors, making more substantial payments, and thereby amending their own wrong.
The official records show that in February, 1791, Lodwick Up- dike, of North Kingstown, petitioned the General Assembly for leave to withdraw from the State ‘Treasury £300 (there placed and forfeit to the State) by him tendered to Misses Hlizabeth and Abby Cole, which they had refused to take; stating that he had since settled with those ladies. These facts are shown in the Schedules February session, 1791—so much for the official records. We have it traditionally, that these ladies loaned Mr. Updike $1000 in Gold and Silver, and when the Paper Bills of 1786 were at their lowest ebb, scaled by the State at 15 for 1—and when in good truth 50 specie dollars would buy $1000 of this paper, the tender was made by Updike, and refused by the creditors. On what terms the individual settlement was subsequently made, is unknown to the writer—whether he honorably paid specie in full, or divided the loss, defrauding these unprotected ladies of a por- tion of their just claim, does not appear on the public record.— This transaction was February, 1791, sixteen months after the re- peal Act of 1789, and four months after the Act of 1790, both of which were for the relief of those indebted to the State ; and four months before the General Assembly at the June session, 1791, repealed the Tender and Forcing Acts against the State creditors, ordering a reissue of State certificates, after deducting the specie value of payments which had been made. ‘There were various other petitions to the Legislature to withdraw paper money ten- dered to individual creditors, and placed in the ‘Treasury.
Such had been the effects of public opinion February, 1791, in the case of Mr. Updike and others; and such was the effect of public opinion June, 1791, on claims against the State, inducing the passage of the memorable and just act, providing an equitable settlement of claims held by citizens against the State.
JUNE SESSION, 1791. | An Act relative to certain securities heretofore granted by this
State, and for repealing certain acts of the Legislature of this
State hereinafter mentioned.
Whereas, during the war between the United States of America and the Kingdom of Great Britain, this state, from its eminently exposed situation and its great exertions in support of the war, for the common defence in raising and keeping up its quota of troops in the federal Army, and from the long continued depreda- tions of the enemy, (a powerful army of whom were nearly three years in possession of the Capitol and of the whole island of Rhode Island, during which time they overrun and burnt several of our towns,) Was subjected to the unavoidable necessity of incurring great and heavy charges, whereby the debt of the state was greatly
ACT OF JUNE 1791. 27
accumulated, insomuch that after the close of the war it became impracticable for the state in the then scarcity of specie, to dis- charge the same in the usual mode by taxes in specie.
~ And whereas, to facilitate the payment and discharge of the said securities, paper bills of credit were issued pursuant to an act of the Legislature of said state passed at their session in May, A. D., 1786, which the holders and proprietors of the said securities were required to receive from time to time in payment and dis- charge thereof, on the penalty of forfeiting the same—and many of the said holders and owners of the said securities in compliance with the several acts of the Legislature before mentioned, received the said paper bills of credit for their said securities or part thereof, when the same had greatly depreciated, which were endorsed on many of the said securities at different times, in quarterly pay- ments of the nominal amount of the said securities, some having received the whole nominal amount in the said bills of credit, while others not complying with the requisition of the said act, did not receive any part of their said securities in the said bills of credit: And whereas, at the second session of the Congress of the United States, begun and held at the city of New York, on Mon- day the fourth day of January, A. D.-1790, by an act passed on the fourth day of August in the same year, entitled “An Act making provision for the debts of the United States,” it was pro- vided that certain description of the debts of the several states therein mentioned, within the purview and meaning whereof, are the greatest part of the before mentioned securities required to be discharged by the said bills of credit of this state as aforesaid, and the sum of two hundred thousand specie dollars was by the said act of Congress assumed to be paid by the United States as part of the debt of this state, required by the act of the Legislature of this state to be paid by the said paper money bills as aforesaid, which said bills having gradually depreciated, to the discount of fifteen for one, compared with gold and silver coin, at which rate they are finally to be discharged, agreeably to an act passed by the Legislature of this state in October, in the year of our Lord 1789, so that without the interposition of this General Assembly, very great and manifest injustice will be done to those who re- ceived the said paper money bills in a state greatly depreciated for their said securities. ‘Therefore that equal justice may be done as well to those who received the said paper money bills for their securities respectively, as before mentioned, agreeably to the requi- sitions of the laws of this state, as to those who did not comply with the said requisitions.
Be it enacted by this General Assembly, and by the authority thereof it is hereby enacted.
- That all the Acts, Laws and Resolutions of the Legislature of this state, passed at different times between the first day of Sep- tember, A. D. 1786 and the first day of January, A. D. 1790, re- quiring holders and owners of the said securities to bring them in- to the General Treasury, and to receive the said bills of credit in payment, and discharge of the said securities so far as the said
98 THE RHODE ISLAND STATE DEBT.
several Acts, Laws and Resolutions, declare and enact, that the said securities should become null and void, and of no effect in case the same should not be brought into the General ‘Treasury, and the said bills received in discharge thereof, within certain lim- ited periods, be and the same are hereby repealed :
Provided, nevertheless, and the aforesaid Acts, Laws and Res- olutions, declaring securities to be null and void and of no effect, are repealed on this express condition, that this state shall not in any case or event whatever, be held or obliged to pay on any of the said securities, either the principle or interest thereof, on any other terms than those, which are proposed to the miseniene to the loan of state securities, agreeably to the Act of Congress passed in Au- gust 1790, entitled “ An Act making provision for the debt of the United States.”
And by other sections, the General Treasurer was ordered to redeliver out of the Treasury all the state securities which had been paid in paper money, first ascertaining the actual specie value of the payment which had been made in paper, and endorsing it thereon.
The following extracts from a message from Governor Arthur Fenner to the General Assembly, at October session, A. D. 1791, confirm the view we have before given of these measures.
“ These considerations, gentlemen, will therefore sufficiently apologize, if apology is necessary, for my soliciting your attention to the peculiar situation of the public debt of this State, a matter highly interesting to our constituents. This debt was wholly in- curred during the late war with Great Britain, in the common de- fence of the nation. After peace took place, it was found, by ex- perience, impracticable to discharge it in the ordinary mode of taxes, in gold and silver; recourse was had to paper money; this was issued in the year 1786. The holders of the State securities were required to receive it on penalty of forfeiting the whole amount of their respective demands. Owing to the unhappy di- vision that prevailed, it suffered an unusual depreciation ; but pay- ments in the paper bills were made to nearly the amount of seven- ty-nine thousand pounds, and securities to the amount of about forty-eight thousand pounds were lodged in the General Treasury in consequence of the requisition of the Legislature for bringing them in for the paper money. ‘The specie value of the payments thus made in the paper money was only about one-sixth part, or perhaps less, of the nominal value, from the great depreciation of the paper money, and its circulation in different states of depre- ciation; but finally, at the rate of about fifteen for one, it became indispensably necessary for the Legislature to interpose; and, as an appreciation of the money to par in the hands of those who had received it in the greatly-depreciated state, would have been productive of as much, or perhaps more injustice than its depre- ciation, if it had been possible to have accomplished it; the Leg- islature had no recourse, no measure they could adopt but to ar- rest it as it was; to repeal the tender, and declare that it should finally be redeemed at the rate of fifteen for one, and an act for
GOVERNOR FENNER’S MESSAGE. 99
this purpose was passed in October, 1789. In August, last year, the National Legislature assumed twenty-one millions five hun- dred thousand dollars of the debt of the several States, including in the assumption two hundred thousand dollars of the debt of this State; and as the sum assumed is charged by the United States to the State from which it is assumed, if the Legislature had not interposed those who did not comply with the requisitions for receiving the paper money would have received the whole benefit of the assumption, and a realization of the greatest part of their securities, while those who did comply would not only lose above five-sixths of their demands, but must have contributed their full proportion to the paying the whole amount of the securities which had been confiscated as before mentioned. For the relief, therefore, of this numerous class of our fellow citizens, and in order © that equal justice might be done, an act was passed at the last session directing the General Treasurer to ascertain the real specie value of the payments made by the state in paper money by a scale of depreciation, and to endorse the amount on the securities which had been lodged with him, and, on application, to deliver them to the proprietor in full expectation that those would have been assumable equally with those on which no part had been paid, or those on which only partial payments were made in the paper money.
“ But the Commissioner of the Loan Office in this State having refused to receive them in payment of the subscription to the loan of two hundred thousand dollars, offered by Congress to those holding the securities against this State; and, as there is a large surplussage of the securities against this State, even of those which were admitted as receivable, more than the amount of the sum al- ready assumed by Congress.
“ It is, therefore, necessary, that proper measures should be de- vised, adopted, and pursued, for doing equal justice and making satisfaction to those holding securities against this State. And as the United States have already asumed twenty-one millions five hundred thousand dollars of the debts of the respective States, which must now be discharged by the nation at large, and as the proportion of this State of the sum assumed as aforesaid, reck- oning this State at only a fiftieth part of the confederacy, at which it has been usually estimated, would have been four hundred and thirty thousand dollars, and as more than the whole of this last mentioned sum is due from this State to individuals, for their ser- vices and expenditures in the late war, and as Congress possess the principal source of the revenue of this State, from which they draw a much Jarger proportion of the national revenue than a fif- tieth part of the whole amount, and asthe people of this State, from their great and unremitted exertion in the war, ought to share an equal proportion of the blessings to be derived from our national independence, which they cannot do if left to struggle under the burthen of great debts, incurred in consequence of the war for general defence, and as it willbe extremely distressing to the good people of this State, if not even impracticable for the
30 THE RHODE ISLAND STATE DEBT.
2 making provision for paying that part of the State debt still unas- sumed without having recourse to impost and excise, difficult per- haps to arrange without interfering with those already laid by Con- gress, I take the liberty to submit to the consideration of the two Houses of the Legislature the propriety of the General Assembly’s laying before Congress a memorial representing the great injustice done to this State in the apportionment of the sum already as- sumed from the several States, and the peculiar hardships of our being left incumbered with a debt incurred for the common benefit of the nation, whilst the other States have many of them been entirely relieved from their State debt by the assumption; and some of them not only relieved but furnished with the means of drawing large sums of money from the national revenue for their own peculiar benefit.
“ But, in order to enable Congress to do justice to the State, it is necessary that they should be informed of the amount and pecu- liar situation of the debt of this State; and there are stronger reasons for the assumption of the remainder of all the debts of the States, respectively incurred by the late war than for what has already been assumed, because some States are placed thereby in very eligible circumstances, whilst others are left in distress from the burthen of a debt resting upon them when their resources, from imposts and excise, are occupied by the General Government.”
‘he Governor’s Message was referred to a Committee, upon whose report the following memorial to Congress was adopted by the Assembly: !
To the Senate and Representatives of the United States in Con- gress Assembled. *
The Legislature of the State of Rhode Island and Providence Plantations, respectfully solicit the attention of the Legislature of the United States.
The State, for whose particular welfare we are chosen to pro- vide, was, from its local situation, peculiarly exposed during the late war to the incursions and depredations of the enemy, from the want of an efficient National Government at that time, and the command of national resources—those attacks of the enemy were necessarily left to be repelled, chiefly by the military operations carried on under the direction, and at the expense in the first in- stance of the State.
By reason hereof, this State incurred a much larger debt than perhaps any of her sister States, in proportion to her estimated rate in the valuation of the United States.
The demands of these creditors, are in fact demands against the United States, for whose use and on whose credit ultimately the supplies were advanced. The states were, however, at that time, in full possession of all the resources of revenue, since sur- rendered into the hands of the nation. At the time of yielding up these resources, the good people of this state were led to believe that they did not part with them as means of extinguishing their debts, but only put them into the hands of the nation for the com- mon and equal benefit of all its creditors.
MEMORIAL TO CONGRESS. 31
When the measure of assuming the states debts was agitated in Congress, relief was expected from the very unequal distribu- tion of the public revenues among the public creditors, which would have been the result of making prompt payment of interest to some, and leaving others to look up to states, exhausted by the war and divested by a voluntary surrendering of their most pro- ductive resources; but when in the result of that measure, the as- sumption from the differert states were so disproportionate to the demands of their actual circumstances, the minds of the people were led to hope that the wisdom and justice of the nation would speedily induce a further deliberation on the same subject.
To discriminate among creditors whose demands are equally founded on supplies rendered or services done, for the common defence and general welfare of the United States, may have been necessary as a temporary measure of accommodation ; but so far as we have been able to view this subject, no substantial reason hath been discovered, against adopting every practicable measure to circulate the justice of the nation commensurately with its pro- tection and the allegiance of the citizens.
_ Notwithstanding the relief of this state by the late assumption of two hundred thousand dollars, there yet remains demands against the state in the hands of individuals, chargeable to the
United States, of for the payment of which, the United States have not made, nor is this state able to make any adequate provision.
After having made this representation in behalf of this«state and the creditors of the public who look to us for their payment in the first instance, we shall seem to have discharged the duty we owed to our constituents, and shall wait the result of your deliber- ation on this subject, with unshaken confidence in the wisdom and integrity of the councils of the United States.”
The preamble to the act of 1791, confirms our previous remarks, and as an apology for the payments in a depreciated paper mo- ney, says, that Rhode Island was subjected “ to great and heavy charges,” “ whereby the DEBT OF THE STATE was greatly accumu- lated,” and “that the State was unable, in the then scarcity of spe- cie, to discharge the same by taxes in specie.”
The next paragraph of the preamble recapitulates the facts at- tendant on the paper money payment, and the assumption of $200,000 of State debt by the United States; which classes of claims were to be received, and what were inadmissable, by order of the Secretary of the ‘Treasury.
Parts of the act of June, 1791, are copied, as can be seen on be- ing referred to, as dlso the message of Governor Fenner, in Octo- ber 1791, and the memorial to Congress as then reported by a committee of the General Assembly. ‘The concluding paragraph of this memorial says:
« After having made this representation in behalf of this State and the creditors of the public who look to us for their payment in the first instance, we shall seem to have discharged the duty we owed to our constituents, and shall wait the result of your delib-
\ {
o2 THE RHODE ISLAND STATE DEBT.
eration on this subject, with unshaken confidence in the wisdom and integrity or the councils of the United States.”
Thus far we have relied on the recorded history of State claims, and presented such reasoning on the subject as naturally followed from an investigation of official documents; if we now place be- fore our readers some traditional information, such too as is in unison with the recorded history, we beg that it may receive such attention as it deserves.
It has been shown in the Preamble to the Act of October, 1789, page 24, that the Paper money party had found their favor- ite measure a failure; that from “ various and unforseen causes” the Tender of the paper bills had been “ productive of the greatest injustice,” and it was Enacted that the “ Legal Tender be there- fore repealed.”
We have it traditionally, (if a statement made before the House by the Hon. William Hunter, on being invited so to do, can be called tradition) that before the passage of the Act of June, 1791, the leading men of the party in power, counselled and advised with those of influence of the hard money party then members of Assembly and those who were not, as to the proper measures amendatory to the legislation on State claims, begging their aid to restore measures just to the State and just to the creditors. It was agreed by all that the payments under the forcing acts were acts of injustice ; and the result of that conference was, to pass the Act of June, 1791, that thereby injured creditors might receive — such just compensation as it was in the power of the State to make. It was agreed by all that the forcing acts were destructive to ALL claims held against the State. Those carried in and paid in paper Bills (which were of little value) were of course cancelled ; and those not carried in, were cancelled by the Act of forfeiture. But if doubts could be raised as to the effects of the Act of Octo- ber, 1789, repealing the ‘Tender, the contemplated act of June, 1791, should be so drawn as to comprehend all claims which ex- isted prior to May, 1786. ‘That such was the conference, and such the reasoning is supported by the important interests there represented.
‘The Paper Money party were heartily sick of the whole paper money system ; it having been a signal failure—the Hard Money party were large holders of the claims held against the State— They were just claims, and to be reinstated as such. ‘The past errors of legislation were to be corrected by assent of both parties, the State in so doing exercised her SovErergN Power to amend her own wrongs.
All these facts go to show, that the foregoing traditionary his- tory carries with itself evidence of its truth.
All the foregoing considerations were prior to the close and final settlement of aLL accounts between the State and the United States, July, 1793. That settlement was made by Commission- ers of the United States and Commissioners of each State. That settlement secured to Rhode Island all the claims which had not been paid by the first assumption. It was the second assumption
: 1 ; :
STATEMENT OF THE HON. WILLIAM HUNTER. 33
sought for by the memorial, extinguishing all fears expressed by the Act of Assembly, the address of Governor Fenner, and the Memorial of the Committee to Congress in 1791.
The balance due to Rhode Island by this settlement was paid her, with the interest thereon,in 1795. Itwas paid her as a State, to be by her appropriated to the redemption of claims which were at that time assumed by the State; and as we have heretofore stated “a doubt cannot exist, that Rhode Island has been allowed for every disbursement and expenditure by her made, to the ut- termost farthing, after deducting her quota, which rightfully she was obligated to pay.” In all the investigations of the documents in the office of Secretary of the State and the Treasury, we have seen no instance of a claim rejected which had been assumed by the Sate, and presented to the Commissioner of the United States ; nor do we believe that one was offered for assumption, founded in _justice, and rejected by the State authorities.
It is, however, to be understood, that in this statement ts not in- cluded the Crary Balances, wHicH WERE NEVER ASSUMED BY THE STATE, AND ON THAT GROUND NOT ADMITTED BY Mr. Hamitron, THE SECRETARY OF THE 'l'REASURY, AS A CLAIM TO BE ASSUMED BY THE UNITED STATES.
CHAPTER II.
FROM 1795 TO.1844.
The facts detailed in the preceding Chapter, showing all the important legislation both of the Confederated Government and that of the State of Rhode Island, in relation to individual claims prior to 1795—as also the evidence that all liabilities were created by the State—that the Bills of Credit issued—the money loaned— the supplies furnished, and services rendered; together with all other valuable considerations on which these claims were founded, were by and under the orders and directions of State authority. In every instance individual application for payment of claims was made to the State; and the remedy of the State was her charges against the Confederated Government for “ disbursements and advances.” We have in that Chapter clearly shown that the — whole of such charges were allowed, and that the whole balance, both principal and interest to the uttermost farthing was paid back to Rhode Island, after deducting her quoTa of war expenses, which she was rightfully bound to pay. We have shown that by her acts of State legislation the State took upon herself in 1782 to decide on what scale of depreciation claims against the State should be consolidated, doing justice to the State against creditors. We have also shown that by her legislation in 1791 she decided on what scale of depreciation the payments to creditors in paper money of 1786 should be consolidated, doing justice to the credit- ors against the State. We have in that chapter shown, that by State authority the condition of loans, the time of payment, the rate of interest, &c., &c., had been repeatedly changed. We have also shown, that Acts of Assembly passed, ordering payments of State certificates under varying circumstances, at the pleasure of the State—still more, in March 1787, and at divers other times thereafter, the State passed Acts ordering payment of au State Notes or Securities, in paper bills of 1786, then greatly depreciat- ed and depreciating, with the further condition, that all who refus- ed to bring in their said Notes and Securities, within a limited, and very limited time, that all such Notes and Securities were forfeited to the State. ‘This, and this alone, brings home to the State, that the State, and the State alone, was liable for the pay- ment ofall such claims.
In the last page of that chapter it is shown that by the final set- tlement in 1793, and the payment under that settlement in Janu- ary 1795, of the large sums due this State, all the views and svishes of the State expressed in the Act of June 1791 were ecar-
ACT OF 1795. 35
ried out. By that payment the fears expressed in the address of Governor Fenner, October 1791, were removed, and the relief asked for by the Memorial of the Assembly to Congress was not only granted, but the funds absolutely paid over for the benefit of the State, and subject to her own disposal. 3
This course of reasoning might be further enforced by a great variety of facts detailed in the preceding Chapter; but we have later evidence of a still stronger character, if such evidence is pos- sible. We allude to the Acts of Assembly passed at the January, May and June sessions 1795, making provision for the transfer of Funded Stock belonging to this State in payment of individual claims against the State, and for the issue of certificates for the balances unpaid. ‘The lengthy exposition we have heretofore given, in the preceeding chapter, of the financial transactions of the State from 1775 to 1795 must satisfy all, that the creditors of the State do not avoid any disclosures relating to the accounts between the United States and Rhode Island. But these Acts of 1795 are an acknowledgment that the State alone is bound to redeem the paper issued under her authority. ‘These acts are the bringing up the claims to a final settlement to that time—paying to every creditor a proportion of the claim he held against the State, and giving a new Note for the balance unpaid. These Notes were made payable to bearer, negotiable without endorse- ment, and have to the knowledge of the State been at all times sold in the open market, the State thereby acknowledging and re- acknowledging their validity. It is a settlement made by the State, and a payment made by the State, in the ezercise of her sovereign power, behind which she can never look, its conditions she can never abrogate.
January 1795 the United States paid the whole balance due to Rhode Island with all the interest up to that time. It was paid in Funded Stock lodged in the United States Loan Office in this State, subject to the order of the State Government.
The State was then in possession of more than $420,000 Funded Stock, and although no exertions had been wanting to satisfy claims which originated in the conflict for National Inde- pendence, it had been utterly impossible to sink much of her in- debtedness since 1792, when the $200,000 were assumed and paid from the United States Treasury, so far lessening the liabilities of the State to her own citizens. ‘The Legislature with a prompt- -ness creditable to itself, at the January session of Assembly, 1795, passed an Act from which we make the following extracts:
“State of Rhode Island and Providence Plantations. January Session, 1795.
AN ACT making provision for the transfer of the Stock of the United States, belonging to this State, to the individual creditors thereof.
Whereas, the United States, in Congress assembled, at the present session, have passed an act, entitled “an Act authorising a transfer of the Stock standing to the credit of certain States” in the words following, to wit:
36 THE RHODE ISLAND STATE DEBT.
“ Be it enacted by the Senate and House of Representatives of - the United States of America, in Congress assembled, That at any time within two years from the passing of this act, transfer | shall and may be authorized of so much of the stock standing to _ the credit of any State, pursuant to the report of the Commission- ers for settling accounts between the United States and individual - States, and the Act passed thereon, entitled, ‘can Act making pro-_ vision for the payment of the interest on the balances due to cer-_ tain States upon a final settlement of the accounts between the- United States and the individual States,” to the creditors of such States, who were such prior to the first day of July, one tliousand seven hundred and ninety-three, as may be necessary to satisfy their respective demands: Provided, that no such transfer shall be | made but with the consent of the said State and its creditors. |
Be it therefore enacted by this General Assembly and by the : authority thereof it is hereby enacted, That the General Treasur- » er of this State be authorized and empowered, and he is hereby authorized and empowered to receive into his office the following — descriptions of this State’s Debt, to wit: a
1. Notes issued for depreciation of pay to the officers and sol- diers of the late army. |
2. Notes issued for calling in and sinking the paper bills emit-— ted in the years 1775 and 1776. ;
3. Notes issued for calling in and sinking the Notes for the re- demption of the paper bills of 1775 and 1776.
4. Notes for calling in and sinking the Four per cent. Notes.
5. Notes issued for calling in and sinking the Certificates issued by Charles Holden, Esq., as Commissary of Purchases. | 6. Notes issued to the creditors of Absentees whose estates
have been forfeited.
“7. Notes issued for Paper Money sunk, and money hired pre- vious to the Revolution.
8. Notes issued for calling in and sinking the money emitted in June, A. D., 1780, funded on real estate.
9, Certificates for balances due on the debt assumed by the United States, issued by Jabez Bowen, Esq., Commissioner of Loans. .
10. Teaming Certificates.
11. Interest Certificates on Loan Office Certificates and liqui- dated debt. !
12. Interest Certificates issued on Mr. Chinn’s final settlement Certificates.
13. Impost orders for the interest on the State Debt.
14. Invalid Certificates.
And that the General Treasurer compute an interest of six per cent. per annum on all the said Notes, together with the Teaming Certificates and Invalid Certificates up to the 31st day of Decem- ber, A. D. 1791, and upon the amount of the principal and inter- est up to that date, to compute an interest of Four per cent. per annum to the first day of January, A. D. 1795; and upon his re-
DESCRIPTION OF DEBTS. 37
ceiving the said debts he give to each creditor an abstract of the amount of his debt, upon the above principles of calculation.
It is further enacted by the authority aforesaid, 'That at the ex- piration of six months from the tenth day of February in the ocak year, the General ‘Treasurer be, and he is hereby directed
o ascertain the whole amount of the said debt so delivered into his office upon the said principles of calculation, and if it shall exceed the sum of four hundred and twenty thousand dollars, he is hereby directed to apportion the said sum of four hundred and twenty thousand dollars to the several creditors of the above de- scriptions, according to the amount of their several debts so com- puted as aforesaid, and at the end of the said six months to give to each creditor a certificate for the balance: which certificate shall be in the words following, to wit:
Rhode Island, &e.
Treasury Office, 1795. I hereby certify, that there is due to A. B., or bearer, from the state of Rhode Island, &c. dollars cents, being a
balance not provided for by the transfer of the funded and deferred stock of the United States, belonging to this State, agreeable to an Act made and passed by the General Assembly of this State at their January Session 1795, which certificates, by order of said Assembly, are to carry an interest of four per cent. until paid.
| H. 8., General Treasurer.”
Ai the May session, 1795, is found the following report of the General ‘Treasurer, and the accompanying Resolution of the Gen- eral Assembly.
“ The Treasurer begs leave to observe, that on perusing the Act passed at the January session, 1795, ‘“ the following description of State Notes and Certificates were omitted, to wit:
i. Notes given for Stock driven from Rhode Island.
2. Notes given for boats and scows.
3. Notes given for Slaves who enlisted in the Continental army.
4. Certificates given for pay of the troops which served under Capt. Henry Dayton.
). For pay of troops which served in the militia.
The ‘Treasurer presumes it was the intention of the Legislature, by the aforesaid Act of January last, to permit the CrepiTors oF THE State to subscribe for any kind of debt that the State justly owed: but that he cannot receive such as are before described, without being authorized by the General Assembly so to do.
HENRY SHERBURNE, Gen. Treas.”
“It is voted and Resolved, That the aforegoing Report be ac- cepted, and that the description of debts due from this State, agree- ably to the above representation of the General Treasurer, be re- ceived by him in the same manner as if they had been particu- larly comprehended in the aforesaid Act passed at session held in January, 1795, making provision for the transfer of the Stock of the United States belonging to this State to the individual cred- itors thereof.
38 THE RHODE ISLAND STATE DEBT.
June session, 1795, we find the following:
State of Rhode Island and Providence Plantations. pa General Treasurer’s Office, . 179—
(No. |
In pursuance of an Act of Congress entitled “ An Act author- izing the transfer of the Stock standing to the credit of certain States,” and an Act of the State aforesaid, passed at the January session, A. D. 1795, entitled “ An Act making provision for the — transfer of the Sink of the United States belonging to this State, to the individual Creditors thereof,’ and for value received in evi- dences of debts DUE By THE saID Stats, prior to the first day of July, A. D. 1798, I do hereby assign and transfer unto in Funded Six Per Cent. Stock in deferred Six per cent. Stock and in Funded Three per cent. Stock, amounting in the whole to (to be expressed in words) being in part of Stock standing to the credit of said State, on the books of the Commis- sioner of Loans, in the said State.
H. 8., General Treasurer.”
These Acts of Assembly of January, May and June, are the — “ stronger evidence,” distinctly alluded to in page 39 of this history. ~ Each individual line of this recorded testimony is concurrent with the component parts of the whole legislation on the subject. The Acts of Assembly, and the executive Acts of the General Treas- — urer, under official orders, together with the Records in the 'Treas- — ury Office, are in perfect unison, again and again confirming the validity of the Registered State Debt, and we confidently assert, that no syllogism in Logic, that no mathematical problem in Euclid, was more clearly demonstrated than is the indebtedness of the ‘State, on all claims assumed by the State, under the Acts to which we have heretofore referred. ‘The abstract ordered to be delivered to each creditor is made out with great care. It states — the precise character and amount of every claim presented under the Acts of 1795, and the consolidated value of the paper money
aid.
: The consolidated ite of the paper money is taken from the gross amount, showing the amount due each claimant. ‘The Cer- tificate for Funded Stock and the Balance Certificates conn Be with the abstract. We give the following examples, viz. j
The abstract of claims presented by John Brown, of | Providence, was - - - - - $14,607 90
He received a Certificate of Funded Stock, - - - : - $12,173 25 .
He also received a Balance Certificate, 2,434 65—14,607 90
His Balance Certificate was redeemed under the appropriation of 1803.
The abstract of claims presented by William av
of Warwick, was - - $1,056 Bt He received a Ce srtificate of Funded Stock, $880 31 He also received a Balance Certificate, 176 06——$1,056 37
| id > va -”
' ABSTRACTS OF DEBS. 39
His Balance Certificate is still unpaid. His heir was a petitioner _ before the General Assembly, on which he has had no hearing.
Ifthe Balance Certificate of John Brown was valid, why is not that of William Greene also valid ?—both having been given un- der the same circumstances. The same inquiry may be made as to all others—all having been issued by the same authority, and all having thus far been redeemed without any regard to the
_ consideration on which they were founded. ‘The only inquiry has been, Are they a part of the Registered State Debt ?
We will here recapitulate the principal features of the Acts of 1795.
The Act of January directed the General Treasurer to call in FOURTEEN descriptions of claims against the State, specified in the Act. That of May added rive others, making in all, NINETEEN different descriptions of claims. This duty was performed by the Treasurer.
He is next ordered to compute an interest, at rates particularly specified. ‘This was also performed.
He is then ordered to “ give to each creditor an abstract of the amount of his debt, upon the above principles of calculation.” This was done with great care ; and not only this, but books were
opened, in which every abstract so delivered was entered, stating the precise origin of the claims ; the amount of each; and the con- solidated amount of paper money paid on those where there had been such payment. ‘This is one of the most perfect and beauti- ful records to be found in this or any other country.
It is next ordered that six months after the 10th of February, the ''reasurer ascertain the whole amount of the debt, and if it shall exceed the sum of $420,000, (that being the amount of Fund- ed Stock in the Treasury,) he divide that sum rateably to each ereditor, and give him a certificate for the balance; but if it did not exceed the $420,000, he was directed to pay the whole sum. This duty the Treasurer performed to the letter. He made a reg- istration of each Certificate for Funded Stock, and another for the Balance Certificates. That registration is in the Treasury office, and is also a most beautiful record.
It states the number of each certificate ; the date when issued ; to whom issued; and the amount. Thus: Certificate for Funded Stock. No. 1, dated August 25, Lae To Rebecca Clarke, of Newport, : - - - - $4,837 77 Balance Certificate.
No. 1, dated August 25, He To Rebecca Clarke, of Newport, - - - : - $967 56
The whole number issued was 446—the last of these was to Jacob Richardson, of Newport, dated December 19,1796. Fund- ed Stock, $215 40. Balance Certificate, $48 08.
By these registrations, the debts renewed under the Acts of 1795 are known precisely to a cent, viz.
v
40 THE RHODE ISLAND STATE DEBT.
Funded Stock Certificates, : . aEoNE $419,223 21 Balance Certificates, - : - : - - 83,892 93
These Balance Certiffcates were printed in a check book with a margin, between which and the certificates was a figured space. The certificate was cut through this space with curves and inden- tations. In the margin was written the number, date, to whom issued, and the amount; making it impossible for the ingenuity of man to effect a counterfeit. Further, when payment was made by the State on these certificates, that payment was endorsed in full, and the certificate is now in the Treasury. ‘Those not re- deemed, are in possession of the owner, no endorsement being made, except the two years interest, paid under the Act of 1797.
When all the facts of the Acts of 1795, together with the per- fect execution of the duties enjoined upon the ‘Treasurer are so clearly shown, can any mai doubt that the creditors have fully made out their case? Is it not clear, that the creditors are not bound to go behind the Act renewing and confirming their claims, based on-the Balance Certificates? As evidence of the liability of the State, the creditors need only present the Certificate they hold, which says in so many words—“ I hereby certify, there is due to A. B., or bearer, rrom THE StaTE oF Ruope Isuanp, dollars, which by order of Assembly, are to carry an interest of Four per cent. until paid.”
This Act of 1795, is fully concurrent with that of 1791, and ev- ery Act of Assembly from that time to 1819, inclusive. More than $10,000 interest was paid and endorsed, both on those since redeemed and returned into the ‘Treasury receipted in full, as on those unpaid, and now in the hands of the creditors of the State, on which the two years interest only is endorsed, no other receipt or endorsement being made thereon. Who can examine all these facts, and deny the full validity of the Act of 1791, or that the ob- ject intended by its passage, was one of justice to the State, and justice to the creditors ?
But as the future evidence of State indebtedness, is both mul- titudinous and concurrent with all that has already been present- ed, we give much in continuation, extracted from future legisla- tion, and the records in the Treasury Office.
At the January session, 1797, the General Assembly, well know- ing that a great variety of claims, authorized to have been carried in for renewal under the Acts of 1795, were at that time in pos- session of those, who, from imperfect knowledge, had failed to present them to the General Treasurer, passed an Act authorizing their renewal.
“ State of Rhode Island, June Session, 1797.
AN ACT for calling in the Notes and Securities issued by this State for services and supplies during the late war with Great Britain, which have not been liquidated and exchanged, and for giving the holders of them new securities.
Be it enacted by the General Assembly, and by the authority thereof it is enacted, That the holders of notes and securities is-
iy ‘ ACTS CONCURRENT, FROM 1791 TO 1819. AL
_ sued by the State for services and supplies during the late war with Great Britain, included in the several descriptions of notes and securities in the Act passed at the session held in January, A. D. 1795, and in the Act in addition thereto, passed at the ses- sion held May, 1795, for transferring the debt due from the Uni- ted States to this State, and which have not been liquidated and exchanged agreeably to the provisions of the said Acts, be, and they are hereby authorized and permitted, any time before the first day of January, 1798, to carry the said notes and securities into the General Treasury ; and that the General ‘l'reasurer be, and he is hereby empowered and required to liquidate and adjust such demands, and give new securities for the amount thereof, ‘upon the principles of the said Acts, to carry an interest thereon, at the rate of Four per cent. per annum, from the first day of Jan- uary, A. D. 1799.
The Act of 1795 ordered the Treasurer to make an abstract showing the origin and details of certificates then presented,—the certificates then rendered in for renewal were afterward Burnt by order of Assembly. But the Act of June, 1797, ordered no such abstract; it was only to receive old and issue new certificates, adding the interest. ‘Those then rendered in were subsequently ordered to be Burnt, and their origin is lost both to the State and to the holders. |
“ It is further enacted by the authority aforesaid, that the Gen- eral Treasurer pay and endorse on all Notes, carrying the said in- terest of Four per cent. per annum, from the first day of January 1795, which have been already issued, and upon such as shall be issued pursuant to this Act, two years interest, in certificates, for the amount of such payments, to be paid out of the next State Tax, or any other money that may be in the General ‘Treasury.”
Although this Act of 1797 fully recognised the certificates to be brought in under its provisions, as equally valid against the State as those heretofore brought in under the Act of 1795; the results to the holders were far different. Those in 1795 were presented when the Treasury was in receipt of the final claims of the State against the United States; five-sixths of the claims presented were
aid and a new certificate on interest issued for the balance—but in 1797 the Treasury was empty, and all the State could then do was, to make up the principal and interest onthe claim, giving new certificates for the old surrendered. The interest from 1795 to 1797, was by the subsequent Act ordered to be paid alike on both, and was shortly afterwards paid on both.
1797. October Session.
« An Act” passed “for granting.and apportioning a T'ax ot Twenty Thousand Dollars upon the inhabitants of this State.”
“ Be it enacted by the General Assembly, and by the authority thereof it is hereby enacted, That a T'ax for raising the sum of Twenty Thousand Dollars be assessed upon the Ratable Estates and Polls of the inhabitants of this State, to be collected and paid into the General Treasury,of this State on or before the twenty- fifth day of March next: And that the same be apportioned to
6
49 = THE RHODE ISLAND STATE DEBT.
and for such uses as the General Assembly shall or may hereafter direct.” |
In the last section of the Act is ordered the manner of its ex- penditure. . | how
“ And be it further enacted, That the said ‘Tax be received by the Collectors, and paid in silver or gold, and in the Certificates newly issued by the General Treasurer, for the two years interest upon this State’s Debt.” |
The Interest payment thus ordered exceeded Eleven Thousand Dollars. The Certificates issued by the Treasurer, were from a Check Book, in the same manner as heretofore described of the issue of the Balance Certificates, making it totally impossible to present a counterfeit—and as in the Balances, so in the interest payment, that can be told to a single cent.
These acts of June and October present some strong points for consideration. ‘The first section of the Act of June 1797 refers to the Act of 1795, placing the certificates issued under the two Acts of equal validity against the State. 'The second section orders an interest payment on all securities issued either under the Act of 1795, or that shall be issued under that of 1797. The simple or- der of an interest payment was a full, perfect, and complete ae- knowledgment that the State, and the State alone, was liable for the payment of all obligations issued under both Acts. Although we have heretofore strongly asserted, that the creditors had pre- sented proof clearly establishing their case as set up; that they were not bound to go behind the Act of renewal in 1795; and have seen no reason to change the opinion then expressed; still the Act of 1797 o1dering the interest payment, is a confirmation of our former position. It is proof, (to use the language of our hard-handed Farmers,) full, heaped, running over measure.
Another important feature in the two Acts, is—that the Act of — June directs the interest to be paid out of the next State tax, or any other money that may be in the General Treasury. But to make surety doubly sure, the Act of October, which created the tax, peremptorily declared, “that this tax be paid in silver or gold, or in certificates for the two years’ interest upon this State’s Debt.”
All the Acts of January and June, 1795, and those of June and October, 1797, are in perfect keeping, each one strongly supports the other, and all are perfectly concurrent; clearly demonstrating the intentions of the General Assembly to place the claims of all creditors of the State above all controversy.
Here again we might stop, having presented testimony in sup- port of our claims, against which no man of intelligence and in- tegrity can entertain even a shadow of doubt.
Sixteen supplementary Acts, ordering renewal of certificates passed from 1800 to 1819. On all the certificates issued under these several Acts, the two years’ interest, from 1795 to 1797, was paid by the General Treasurer. Books were opened for the regis- tration of all issued, and all were cut from Check Books making a counterfeit impossible. No Act was "here passed ordering any
ACTS CONCURRENT, &c. 43>.
Abstract of claims, but the Book of registration was subjected to
an examination by an Audit committee. George Champlin, Ni- cholas Taylor, Constant Taber, William Anthony, Christopher Fowler, John L. Boss, William Hunter, William Moore, Henry Bull and Peter P. Remington, are found to have been on the com-
mittees. Would these gentlemen audit a claim which was not
due from the State ? !
We will here observe that the General Assembly entrusted to Col. Henry Sherburne, then General Treasurer, the whole duty of carrying into effect all these acts and resolutions for arranging and renewing all the notes, securities, and other claims specified in their various acts in 1795 and 1797 and other Acts supplementary thereto. In so doing they manifested their great prudential care
in the business of the State. Col. Sherburne was a man of good
discriminating mind. He was well educated, a thorough and careful accountant. He had commanded a regiment in the rev- olutionary war, had subsequently represented the town of New- port in the General Assembly, and was most particularly acquain- ted with the various details of the whole subject so committed to him. No other man could have done that duty more in accord- ance, with the rights of individuals and the interests of the State, than Henry Sherburne.
The arguments in support of these claims which plainly present themselves to our consideration from the foregoing facts, are so numerous, that it is difficult so to compress them that they may make a part of this publication. We will, however, at this time say, that the General Assembly having by its own deliberate en- actments directed the issue of the securities under which we claim, and that issue having been made by their fully constituted officer, is of itself a fulland perfect obligation against the State. ‘That the State, or in other words, the General Assembly, so considered their own obligations is demonstrated by the legislative acts for the payment of the two years’ interest. As that payment was made on all that were issued, no matter from which description of the original claims, it follows that the General Assembly by these acts confirmed the universality of right to the holders, and the obligation of the State to pay.
It would seem proper here to recapitulate such general facts in relation to State claims, as naturally present themselves for our consideration. It is already scen that the war of the Revolution exhausted the resources of the State; stillthe Legislature did not permit the obligations which they had created to pass unnoticed, and Acts imposing onerous duties on the whole community were frequently passed, having reference to some means of relief to their necessitous creditors. Taxes to a large amount were levied —different Excise Acts passed—the Custom House revenue enured to the State Treasury; portions of each of these were appropriated to satisfy some of the demands against the State. We have space only for a brief reference to some few acts, their dates, and their objects.
1778—December. Holders of Treasury Notes to be paid interest.
44 THE RHODE ISLAND STATE DEBT.
1779—March. Act for paying small securities. | 1781—May. Specie Tax, - £37,000 1781— August. Pay certificates té be Becired for Taxes. 1782—January and June. Specie Tax, - - £18,000 1783—February. Excise Act for paying securities and support of Government. shave? ef Abstracts of military services to be re- ceived for Taxes. General ‘Treasurer to deed estates in Trust to pay Greene, Sherburne and Angell’s sa eae é June. Specie Tax, - : £20,000 : re Impost Act to ‘pay interest on securities. December. One year’s interest on State debt to , be paid Col. Olney’s Battalion. 1784—February. Impost orders to pay interest on State
debt. * June. Specie Tax, - - £20,000 Y August. Act for Impost to pay securities of the
State. . J Second year’s interest to be paid on se-
curities.
1785—May. State securities to be taken for demands : of the State against individuals. 66 é Act forbidding being taken at less than par. General Treasurer to pay invalids. Impost to be collected to pay interest on
securities. 66 June. Certificates to be received for Taxes. August. Specie Tax, - - - £20,000
1786—February. George Hunt. to pay his Note with General T'reasurer’s Note.
6 March. Excise Act. Money received thereon to pay in- terest on Notes, and interest orders to be re- ceived in payment of Excise to Collectors. (This act 32 pages in the schedules.)
6 August. - Collectors of Taxes to receive Treasury and In- valid certificates.
Lidifegetebmiary. Rents due the State to be paidin State Notes. cF ‘Taxes to be paid in State Notes. May. ‘Towns to advance to military invalids, that to be a part of their 'lax. 1788—February. State Notes to be received for Taxes.
“ October. General Treasurer to pay securities.
1789—March. Act for paying securities.
a September. Act for levying and collecting Impost,(20 pp.)
é< October, 2d session. Allow ance to inv alias to be paid by
the General Treasurer.
We next briefly copy from the Schedules, Acts and dates of a
66
RECOGNITIONS. | 45
portion of the recognitions of the State debt by the General As-
sembly, beginning with the Act of January 1795:
1795—January. Act to callin old and issue Certificates for Funded Stock, and Balance Certificates for amount unpaid.
1 June. Actto issue Certificates on other claims. 1796—June. Report of General Treasurer on certificates issued. 1797—February. General 'Treasurer’s report of State Debt.
rf June. Act for calling in old and issuing new securities and interest payments. ‘ October. Report of General Treasurer, advising to burn | certificates brought in. . December. Report of Committee who burnt. ps fs General Treasurer’s Report, and Act extend-
ing time to renew.
1798—January. Gen. Treasurer’s Report, amount of debt then _ issued, $111,547 41.
- October. Act to bring in claims for Notes not liquidated.
92 Committee to examine State Notes.
“ June. General Treasurer’s Report, amount then issued, $125,139 13.
7 “Gen. Treasurer’s Report, Interest certificates then
issued, $9,547 49. 1800—June. Gen. Treasurer’s Report, State debt then issued, $125,834 27. 1802—February. Act to receive claims as evidence of State Debt. Under this Act 41 Certificates were issued, amount $5,749 37. f June. Gen. Treasurer reports State Debt then issued, $128,018 05. 1803—February. Gen. Treasurer reports State Debt then issued $131,583 64.
The different recognitions as above stated, and by subsequent recognitions by Special Acts of Assembly, reports of the General Treasurer, subsequent appointment of Committees and their re- ports—subsequent issue of principal certificates, and interest cer- tificates down to 1820, brings the subject home to the attention of the Legislature more than one hundred and fifty times, and we challenge all men to produce during all that timea single instance of a denial by the Legislature of the indebtedness of the State.
At the commencement of the revolution, the whole taxable pro- perty of the State probably did not exceed $10,000,000, and the population not much over 50,000. The great work of Independ- ence was commenced with such feeble means. But the spirit of the people was aroused, and they rallied under the standard of Union, rather than means and numbers. ‘The energies of all were at the service of the State. Under such influence they cheerfully met every trial, and bore themselves up against every surround- ing difficulty. Such were the causes which sustained the State in her efforts to maintain her integrity to individuals, who had been first in furnishing the pecuniary and physical means, to car-
a
AG THE RHODE ISLAND STATE DEBT.
ry out the measures of defence. Partial payments of State debts were made, and the residue acknowledged to the extent of the obligation. in
From the first origin of State indebtedness for revolutionary services, May 1775, perfect harmony existed between the debtor and creditor parties. All requisitions for the defence of the coun- try were promptly responded to, and every possible measure adopt- ed to secure a repayment. If a debt was created when a paper currency existed, the State called the claim into the Treasury, consolidated it to a specie value, and in renewal issued a new obligation for the true amount due, payable in lawful silver money, thereby doing justice to the State against creditors ; and that too by their own assent. At the close of the war, as shown in page 41, ‘Taxes great in amount were ordered—heavy Excise on property and business was imposed—the Revenue from Customs then enuring to the State, were pledged to meet the demands of creditors, and if not possible to do more, to pay such portions of an accumulating interest as these means could satisfy. The minds of all were occupied in devising some system to avert the evils consequent to the deep indebtedness of the State, and the general poverty of the whole people. A new issue of paper bills was by many believed to be the prudential course, although the measure was as earnestly opposed by others. In 1786 a paper money partly prevailed, as detailed on page 19. The result disap- pointed its friends, and they with the opponents of paper money united as one to arrest the evils which followed. 'The PAPER MONEY MEN of 1786 did by their own legislation, October 1789, acknowledge that ‘‘ FROM VARIOUS AND UNFORESEEN CAUSES, the bills had greatly depreciated, and that the continuing them a Tender would be productive of the greatest injustice,” and the Tender Act was by them repealed. ‘The new Assembly in September 1790 passed Acts for the protection of those who had received that money, and therefore were indebted to the State under its first issue, see page 24. In June 1791, by assent of all, all were the protectors of the creditors of the State, to whom payments had been made by the State under the forcing acts from March 1787 to March 1789. These payments were consolidated to specie value, by a scale of depreciation established by the State, and a reissue made for the residue, doing the same justice to the credit- ors of the State, as had been done the State by the consolidation in 1782.
The payment by the United States to the State, in 1792, was equally a matter of gratulation to those who were recipients, and to those who were not; so also, the payment in 1795, of the resi- due of the debt due from the United States, subject to the order of the State Treasurer. ‘The whole amount then in the Treasury was appropriated to the State creditors; for the balance due them after such payment, new certificates were issued, payable by the State with interest. Under the Act of 1795, certificates outstand- ing against the State, specially described, including every liability from the first indebtedness in 1775 to the re-issued certificates in
23 re we 4 , * ,
BRIBERY. _ : A7
1791, were, after consolidation, equally held as claims against the
State, and never, never, was any denial or objection made against their perfect justice and full validity. ‘The re-issue was made by the honest men of those days, who knew all the facts, and who controlled all the measures in relation to State claims. The sub- sequent issues, under the act of 1797, and after, together with the interest payment on all issued, or to be issued under these acts, was equally gratifying, both to the debtor and creditor parties. It was a noble effort of the many, to partially satisfy the just de- mands of the few, for claims which originated in advances made and services performed for the good of the whole; cementing the kind feelings, both of debtor and creditor parties. The living could not forget, that the independence of the country was ob- tained by the sacrifice of treasure and of life, and made every ef- fort to pay the heirs of those who were slain on the battle field, or had died in the service, the certificate held as evidence of ia: debtedness of the State. Such were the feelings and such the acts of the honest men of the revolution.
Sadly, indeed, is it to be deplored, that a new state of things has taken place amongst us—that political corruption now rides supreme—that trading politicians controll the action of State legisiation—that BRIBERY and tts influences elects the officers of the State—that the rights of creditors—that the honor of the
state, are lost sight of in the scramble for office; for it is well known to every citizen of the State, that’ more money has been spent for the last three years, in open BRIBERY by office-seekers and their friends, than is required to pay the whole State claims now presented against the State.
As stated in page 42, supplementary Acts, either general or special, passed at different dates down to 1819, for the renewal of certificates omitted to have been brought in. All were of the same general form, confirmed the same rights to holders, imposing also, like obligations on the State. All to carry an interest from January, 1795, and on all was the interest payment made and en- dorsed, from 1795 to 1797.
It has been fully shown that the compulsory payments in the paper bills of 1786 were acts of injustice to the creditors, under the Sovereign Power of the State; and it has been shown that the State, in the exercise of the same Sovereign Power, retraced her own steps, and by the Act of 1791 did correct her own unjust legislation. As individuals have the power, as it is their duty, to amend their own errors; so the State, can by her own sovereign power, under a like sense of duty, amend her own errors, by her own subsequent legislation.
The Act of 1791, was of itself, a full and perfect repeal of all the Acts enforcing payment of State debts in the depreciated pa- per of 1786; and that repeal, and the consequent re-issue of evi- dence of the indebtedness of the State, fully confirms the validity of thatissue. Butif any additional proof is wanted, that is found in all the future legislation of the State, from January, 1791, to June, 1820. Allis concurrent, and every Legislative Act with-
AS THE RHODE ISLAND STATE DEBT.
in the foregoing dates, and every transaction in the ‘Treas
department, confirms and substantiates the Act of 1791, which or- :
dered the re-issue of State j ODL EROS.
Under the Act of 1795, four hundred and forty-six were brought : in amounting to $503,115. 14. ‘The funded stock in the control of the ‘Treasury was more than $420,000. ‘The payments from that
then made, were $419,223.21, and 446 balance certificates were given for $83,892.93. In this whole payment and re-issue of bal- ances, no distinction was made between the certificates re-issued under the Act of 1791, and those on which no paper of 1786 had ever been made. All, all were alike received, and on all were the like payments made,—here, then, is 446 recognitions of the va- lidity of the Act of 1791.
Under the Act. of 1797, and other Acts supplementary to Feb. | 1803, there were brought in for renewal 308 certificates ; on these — the interest was made up to January, 1795, new certificates issued
for the amount due to that time, and an interest payment made of two years, from 1795 to 1797. On the whole, 754 issued under
these Acts, no distinction was made between those re-issued under ~ the Act of 1791, and those on which no paper of 1786 had ever —
been paid; the 754 issued are so many recognitions.
From February 1803, to June 1819, the following issues were |
made under special Acts of Assembly: 1803, May and June. To Samuel Dexter and Simeon Potter. 1804, January and March. ‘To Mary Lawton and Daniel Wall. 1805, August. To Doctor E. Bowen.
1806, March, May and June. To B. Hutchings, Abraham Rus- :
sell, and Moses Cooper.
1807, March and June. ‘To Henry Ward and John Collins.
1808, June. To John Coates.
1812, May. ‘To Dyer Greene, heir of Oliver Greene, a soldier in the revolution.
1813, January. ‘To James Burrill and Almy Hall.
1814, June and November. 'T'o William Davis, of Plymouth, Joseph Russell, of Weston, and C. Cooly, of Providence.
1819, March. ‘To James Draper, administrator of Josiah Dra- er.
1819, June. Twenty-nine certificates to Ephraim Hart, of New York; in all, 802 certificates.
‘These several issues were alike received under all the appropri- ations—on all an interest of two years was paid—no distinction was made, whether re-issued under the Act of 1791, or not having been put under the forcing Acts of 1786.
This last issue to Ephraim Hart of 29 certificates, June 1819, is deserving more than this passing notice. Hart held 29 certificates which had not been renewed either in 1795 or after, and at the June session 1819 petitioned for their renewal. His petition was granted, and 29 new certificates issued, interest added as in other cases to 1795. At the October session 1819, only four months after the issue, he petitioned for the payment of the two years in- terest from 1795 to 1797, as had been paid on all others issued.
Eee
CERTIFICATES ISSUED TO EPHRAIM HART. 49
This was granted and the interest on the whole 29 was paid, and on the whole face of the paper. At the June session 1820 he came before the Assembly with 20 of the 29, as also with one is- sued him in 1795, all amounting to $3,127 69, petitioning for payment. It was voted that the Treasurer pay these claims, if Hart would accept 66 per cent. on the face of the paper—this was only eight months after interest had been paid on the whole face of the paper. There was then outstanding 9 certificates of the issue unpaid, and had passed from Hart to others. One of these was held by Mary B. Allen, of Smithfield, R. 1, $108 53—an- other held by J. M. Bradhurst, of New York, $76 23; the other 7, amounting to $915 50, are held by persons unknown. The 29 were all for the same consideration,viz.: soldiers certificates—they were all issued on the same day, were of the same form and phraseology, and were issued to the same person. If the posses- sor of the 20 consented to sell them at a discount, it did not in- validate those then in the hands of others, who had given no assent to a like discount on paper given fora valuable consideration, on which full interest had been paid, thereby affirming the whole debt. ‘These 9 certificates will be hereafter again referred to.
After the distribution of the $420,000 to creditors in 1795, no payments were made on State claims, except the two year’s inter- est, until 1803. At the February session of that year Constant Tabor and Samuel