The Trust for Loans, Dr. - Thomas Jefferson, The Works, vol. 7 (Correspondence 1792-1793) [1905]
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The Works of Thomas Jefferson, Federal Edition (New York and London, G.P. Putnam’s Sons, 1904-5). Vol. 7
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The Trust for Loans,Dr.
| To net amount of loans to June 1, 1792 | 755,912 dollars. |
the loan now going for 2,000,000 florins.
Cr.
By charges on remittance to France,
By reimbursement to Spain,
By interest paid to foreign officers,
By amount of French debt, principal and interest, payable to end of year 1791,
By do. for 1792,
By do. for 1793,
By first instalment of Dutch debt, 1st June, 1793,
By instalments and interest to France for 1794,
By instalment to Holland for 1794,
Balance will then remain in hands of the Trust,
$
So that it appears there will be a balance in the hands of the Trust—the clear sum of 499,393 dollars 84 cents—were no moneys to be furnished in the mean time to the sinking fund. But should the President determine to furnish that, with the 90,000 dollars proposed in my statement of June 5, then a loan would be necessary for about 405,000 dollars—in near round numbers, 1,000,000 of guilders, in addition to the 2,000,000 now borrowing. I am, individually, of opinion that that sum ought to be furnished to the sinking fund, and consequently that an additional loan to this extent should be made, considering the subject in a legal point of view only. The reasons in favor of the extensions are:
The apprehension of the extension of our war to other Indian nations, and perhaps to Europe itself. The disability this might produce to borrow at all [this is in my judgment a weighty consideration].
The possibility the government of France may become so settled, as that we may hazard the anticipation of payment, and so avoid dead interest.
The reasons against it are:
The possibility that France may continue for some time yet so unsettled as to render an anticipation of payments hazardous.
The risk of losing the capital borrowed, by a successful invasion of the country of deposit, if it be left in Europe; or by an extension of the bankruptcies now shaking the most solid houses; and when and where they will end we know not.
Loss of interest on the dead sum, if the sum itself be safe.
The execution of a power for one object, which was given to be executed for a very different one.
The commitment of the President, on this account, to events, or to the criticisms of those who, though the measure should be perfectly wise, may misjudge it through error or passion.
The apprehension that the head of the department means to provide idle money to be lodged in the banks ready for the corruption of the next legislature, as it is believed the late ones were corrupted, by gratifying particular members with vast discounts for objects of speculation.
I confess that the last reasons have most weight with me.
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