« PreviousContinue »
militia and volunteers of the state late in the service of the mited States, on the conditions and for the purposes prescribed in an act passed by our legislature on the 11th day of Marck 1815. It now becomes my duty to obtain on loan, from any of the incorporated banks in Pennsylvania, a sum equal to the contemplated object. I am prompted by the large interest the state has in the institution of which you are directors on behalf of the commonwealth, through you first to ask how much of that sum, or whether the whole sum that may be necessary for the contemplated object, can be obtained on loan from the Bank of Pennsylvania in the course of about tnree weeks, on the terms and conditions prescribed in the said law, a copy whereof, as well as a copy of a letter from the Secretary at War on the subject, is herewith forwarded.
With high respect,
SIMON SNYDER. Messrs. John Binns, John Jennings and others, directors on behalf of the
state in the Bank of Pennsylvania.
Philadelphia, April 1st, 1815. DEAR SIR-In consequence of your letter, received on the 30th ult. addressed to myself and the other directors on the part of the state in the Bank of Pennsylvania, I waited the same day on the secretary of the treasury of the United States, to ascertain whether some arrangement could not be made, so as that the Bank of Pennsylvania should transfer, to the general government such an amount of treasury notes as a loan from the state, as would suffice to pay the militia and volunteers of Pennsylvania, which had been in the service of the United States. My anxiety to make this arrangement arose out of my belief, that from the heavy loans made by the bank to the United States, and the large amount of treasury notes held by the bank, that the institution could not make to the state the loan required. The secretary made objections to such an arrangement, which I was unable to overrule. The next day Messrs. Connelly, Cary, Richards, Jennings and myself, signed a letter addressed to the board of directors in obedience to your instructions, which letter was that day presented and referred to a committee. The state directors concurring with me in opinion, that the board will not be able to make the loan required, suggested that I should on their behalf, suggest to you, the propriety of so extending your authority to borrow, as to authorize them to apply to the other incorporated banks, so as among them to be able to raise the sum wanted in the time required. The same ideas and opin. ions being stated at the board of directors, I feel it my duty to submit them to your consideration, and accompany them with the foregoing statement of facts.
I have the honor to be,
Governor' of Pennsylvania.
Harrisburg, 5th April, 1815. To John Binns, John Connelly and others
directors of the Bank of Pennsylvania.
The suggestion through Mr. Binns, that the Bank of Pennsylvania should transfer to the United States, a sum of treasury notes as would be equal to the payment of the Pennsylvania mi. litia ana volunteers late in the service of that government, and that such transfer be considered as a loan from the state to the United States, would have essentially advanced the interest of the commonwealth, which holds two-thirds of the stock in that insti.. tution. It is to be lamented that such an arrangement could not be acceded to by the secretary of the treasury. A report, that the Bank of Pennsylvania had it in contemplation to make a loan to the United States of $ 500,000, induced the application by me to that institution alone. But learning from your letter of the 1st April, which came to hand yesterday, that the board will not be able to make the loan required, you and others, directors on behalf of the state, will therefore consider the authority in you vested, by my letter of the 28th March, extended to, and you will now apply to any and all the incorporated banks in the city and Liberties of Philadelphia, for a loan or loans, so as that the object contemplated by the law of the 11th March last, may be at tained,
I am very respectfully,
Philadelphia, April 24th, 1815, DEAR SIR-I am at length enabled to announce to you completion of the loan of 300,000 dollars, and I beg you to be as. sured, that the commissioners to whom you entrusted this negoci
the ation, have been neither inactive nor unanxious. Difficulties arising out of the want of a general circulating medium, and the desire felt by all the banks to arrange their affairs preparatory to the resumption of specie payments, were to be surmounted and others were to be overcome. Without detaining you to detail the several steps taken, it will, I presume, be sufficient to acquaint you with the general result; such was the sentiment of the commissioners, and they appointed me to communicate them to your Excellency. The Bank of Philadelphia agrees to take
$ 50,000 North America
50.000 Farmers and Mechanics
$ 170,000 In conformity to the act of Assembly passed March 11th, 1815. The Mechanics Bank agrees to take
$ 50,000 Commercial
20,000 Northern Liberties
$ 300,000 In conformity to the above act of Assembly, and the sums they geverally lend, to be considered as lent in accordance to the 9th section of the act regulating banks. It was found necessary to give them the assurance that the sums lent would be so regarded, before it was possible to procure the money. I enclose the resolution of the Northern Liberties bank, that
the more distinctly understand the subject.
I have the honor to be sir,
Marrisburg, April 29th, 1815. SIR– The Governor having negociated a loan of 300,000 dollars with certain incorporated banks in the city of Philadelphia, is desirous to know, how much of that sum will be required by the United States, to pay the militia and volunteers, which have lately been in the service from this state. This information is asked, because we have no data here from which an estimate can be made, as it is said some of the troops, which served in - Maryland, have been paid, some partly so-also some of those stationed on the Delaware have been paid in part. It will be proper to take into the estimate, the pay probably due to the de. tachment of four thousand men, ordered by the secretary at war, 17th October last, to rendezvous near Snowdens, in Marylandthese, on an average, were in service about fifteen days. It is also desired to know, whether the sum which the United States government will take on loan for the purposes of the act of the legislature of this state of the 11th of March last, shall be at once placed by the individual banks to the credit of the United States, or whether the whole sum shall be paid into any one or more of them ? and whether from the day the state will be charged with interest, the United States will he chargeable with interest also ? and whether the state may expect to have the principal refunded within three years, the time fixed by law for the repayment of it by the state? A list of the banks, with the sums agreed to be loaned by each, is subjoined. Anxious that the militia and volunteers may be paid off as early as possible, the GoTernor requests your immediately attention to the subject.
N. B. BOILEAU, Secretary. ALEXANDER J. DALLAS, Esa:
Secretary of the Treasury, U. 8.
Treasury Department, 4th May, 1815. SIR-I have received your letter of the 29th ultimo. By my letter of 24th March, I informed Governor Snyder, that the loan of 300,000 dollars, which the state of Pennsylvania offered to the United States for the payment of her militia and volunteers, called into their service, would be accepted on the terms proposed by the act of the General Assembly : that is, to bear interest at the rate of six per cent. per annum, and to be re-imbursed within three years.
I have sent a copy of your letter to the paymaster of the army, with a request that he will furnish you with all the information in his department, to ascertain the amount of the pay of the militia and volunteers which remains due. Upon this information it would be my wish, that the paymaster in the service of the state, should be directed by the Governor to settle with the individu. als; that he be supplied from time to time by the Governor with the funds to enable and complete the payments; and that the amount thus disposed should be considered as the sum loaned to the United States, bearing interest from the day of advertising for the payment of the militia and volunteers, or from any other day which shall be thought more equitable.
I am very respectfully,
A. J. DALLAS.
of Pennsylvania, Harrisburg.
Harrisburg, May 4th, 1815. SIR-Yours of the 24th ult. to the Governor has been receiv. ed, and a letter written to the secretary of the treasury, informing him that the loan had been negociated; requesting him to say, whether the sums agreed to be loaned by the several banks shall be at once placed to the credit of the United States, on the books of the respective banks, or whether the whole sum shall be placed in one or more of the said banks. As soon as an answer is received, the necessary papers will be forwarded to you, pledg. ing the state for the repayment of the money, which you will hand over to the proper officers of the banks. It was deemed proper to mention the foregoing circumstances as explanatory of the reason of delay, in not forwarding the Governor's pledge for the repayment of the loan. An answer is expected from the secretary of the treasury this week.
N. B. BOILEAU, Secretary.
Harrisburg, May 10th, 1815. SIR-Yours of the 4th instant I received to day. There is no paymaster in the service of this state, nor is the Governor authorized to appoint any, except in those cases in which a bounty or additional pay to that allowed by the United States, is directed to be paid out of the state treasury. This circumstance prevents the Governor from a compliance with your suggestion. It may also be remarked that, possibly paymasters under the state might settle accounts of pay, which would not be allowed by the United States, and thus difficulties would occur in the final adjustment of the accounts between the two governments. As no intimation has been given in your letter, whether the money