Front Page Titles (by Subject) SECOND OPINION ON NEW LOAN 1 - The Works, vol. 7 (Correspondence 1792-1793)
The Online Library of Liberty
A project of Liberty Fund, Inc.
Search this Title:
SECOND OPINION ON NEW LOAN 1 - Thomas Jefferson, The Works, vol. 7 (Correspondence 1792-1793) 
The Works of Thomas Jefferson, Federal Edition (New York and London, G.P. Putnam’s Sons, 1904-5). Vol. 7
About Liberty Fund:
Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.
The text is in the public domain.
Fair use statement:
This material is put online to further the educational goals of Liberty Fund, Inc. Unless otherwise stated in the Copyright Information section above, this material may be used freely for educational and academic purposes. It may not be used in any way for profit.
SECOND OPINION ON NEW LOAN1
June 17, 1793.
I cannot see my way clear in the case which the President has been pleased to ask my opinion, but by recurring to these leading questions:
Of the 7,898,999 dollars so borrowed, or rather of the 7,543,912 dollars net proceeds thereof, how much has been applied to the payment of the foreign and purchase of the general debt?
To the balance thereof, which should be on hand, and the two millions of florins now borrowed, is any addition necessary for the same objects, for the years 1793, 1794?
The statement furnished by the Secretary of the Treasury does not answer these questions. It only shows what has been done with somewhat less than three millions out of near eight millions of dollars which have been borrowed, and in so doing it takes credit for two sums which are not to come out of this fund, and therefore not to be left in the account. They are the following:
1. A sum of 284,901 dollars 89 cents expended in purchases of the public debt. In the general report of the trustees of the sinking fund, made to Congress the 23d of February last and printed, it appears, page 29, that the whole amount of money laid out by them was 1,302,407 dollars 64 cents; from which were to be deducted, as is mentioned in the note there subjoined, the purchases made of the interest fund (then about 50,000 dollars as well as I recollect) call the sum paid then 1,252,407 dollars 60 cents. By the Treasury Report, page 38 (new edition), it appears that the surplus of domestic revenue to the end of 1790, appropriated to this object, was 1,374,656 dollars 10 cents; and page 34, that the moneys drawn from Europe on account of the foreign loans, were not the instrument of these purchases; and in some part, to which I am not able to turn, I recollect pretty certainly that it is said these purchases were actually carried to account, as was proper, against the domestic surplus; consequently they are not to be allowed in the foreign account also; or if allowed in this, the sum will then be due from the surplus account, and so must lessen the sum to be borrowed from the sinking fund, which amounts to the same.
2. The first instalment due to the bank—200,000 dollars. Though the first payment of the subscription of the United States to the bank might have been on the first instant, out of the foreign moneys, to be immediately repaid to them by the money borrowed of the bank, yet this useless formality was avoided, and it was a mere operation of the one on paper, without the displacement of a single dollar (see Report, page 12); and in any event the final reimbursement was never to be made out of the foreign fund, which was appropriated solely to the Payment of the foreign and purchase of the general debt. These two sums, therefore, of 284,901 dollars 89 cents and 200,000 are to be added to the balance of 565,464 dollars 28 cents; subject to future disposition, and will make 1,050,386 17 cents actually here and still to be applied to the proper appropriation.
However, this account, as before observed, being only a part of the moneys borrowed, no judgment can be formed from it of the expediency of borrowing more; nor should I have stopped to make a criticism on it, but to show why no such sums as the two above mentioned were inserted in the general account sketched for the President, June 5. I must add, that the miscellaneous sum of 49,000 dollars in this account is probably covered by some other articles of that, as far as it is chargeable in this fund; because that account, under one form or another, takes up all the articles chargeable in this fund which had appeared in the printed reports. I must therefore proceed to renew my statement of June 5, by inserting therein the first instalment of the Dutch loan of 484,000 dollars 40 cents, payable this month, which not having been mentioned in any of the reports heretofore published, was noticed in no statement. I will add a like sum for the year 1794, because I think we should now prepare for the NA of that year.
As the Secretary of the Treasury does not seem to contemplate the purchasing any fixed sum for the sinking fund, I shall leave that article of the account, NA add to its result any sum he may decide to have purchased to that fund.
[1 ]See first opinion under June 5, 1793.