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2 That loan office tickets are the same as money, and therefore in case of the want of money new emissions are equally proper.

In the affirmatíve it was said by Mr Sergant That loan office tickets would be confined only to one State.

By Mr. Jas. Wilson-That Bonds, lands etc. were transferrable as well as loan office tickets, and therefore the argument of their being the same as money is without force. That the money lenders had all their money paid into them, that 3 millions had been received by the usurers in Pensylvania all of which was probably in thier hands, and that if the interest was raised to 6 per cent it wd. procure money.

Mr John Adams. That loan offices tickets would not circulate because they bore an interest. That Massachusetts bay in the last war emitted 50,000 in notes bearing an interest of 6 per cent which were immediately locked up and withdrawn from the circulation even tho' gold and silver was plentiful among them. That new emissions would only encrease the difficulty. that the continent would bear only 7 millions. That Unless the interest was raised, the money holder would employ his money in speculation in buying lands, and in monopolising goods, by which means the necessaries of life were enhanced in thier price. That this alone would regulate the price of goods, that no other wisdom [two lines torn out]

emission he would rather see our army disbanded, and Howe let loose to ravage the whole country."

Upon calling the question The States (10 in number) divided equally. As a proof of the impropriety of each state having a seperate Vote, it is remarkable that there were 18 members for raising the interest and IO only against it. The States that voted in favor of it were New-Hamshire, Massachussettsbay, New Jersey, Pensylvania, and Virginia. The inhabitants of these states collectively make near two thirds of the whole inhabitants of the united States.*

Mr John Adams [Two lines torn out].

political character in the same light as they do a suit of cloaths. They put it on and off at pleasure. But we trifle with all morality, we trifle with the happiness of millions, by not holding up to [] unrea [sonable.]

Dear Sir

5

350. BENJAMIN RUSH TO ROBERT MORRIS.1

BALTIMORE Feby. 11. 1777

I am sorry to inform you that, from the accidental Absence of One State, and the tergiversation of another, the congress divided upon the

3 Adams's ideas of the consequences of new emissions are expressed strongly but somewhat more soberly in his letter to Warren, Feb. 12, no. 352, post.

4 Cf. nos. 352, 375, post.

5 The next leaf of the Diary has been torn out almost entirely, only a narrow strip of the left-hand margin and a small piece of upper right-hand corner, containing a few words and fragments of words, being left. On the second line appears 1777" with what appears to be the fragment of "11" preceding it. Most of the destroyed entry was, therefore, probably under date of Feb. 11.

[350] Copied from the original then in the possession of Mr. Stan. V. Henkels of Philadelphia; Henkels, Catalogue, no. 1183, item 426.

2

important question of raising the interest upon loan office tickets to half cent. We are all in confusion. Nothing can save us but a reconsideration of that question. It is rumoured here that you do not intend to serve in congress in consequence of your late Appointment. For God's Sake do not desert them!-The post is just on the wing.

Yours

B. RUSH.

351. THE PRESident of CongRESS (JOHN HANCOCK) TO THE
MARYLAND COUNCIL OF SAFETY.1

Gentlemen

BALTIMORE, Febry. 11th. 1777

I have it in Charge from Congress to Request that the State of Maryland may be fully and constantly Represented in Congress. the Necessity of every State being fully Represented to Add weight to the Council of America, as well as to keep up that Union and good Correspondence so essential to our Country, will naturally Suggest the propriety of this Application, which I have no doubt you will immediately comply with, more especially as Business of the utmost moment is before Congress.2.

Dear Sir,

1

352. JOHN ADAMS TO JAMES WARREN.1

Baltimore, 12 February, 1777.

The certificates and check-books for the loan-office I hope and presume are arrived in Boston before this time, and, notwithstanding the discouraging accounts which were given me when I was there, I still hope that a considerable sum of money will be obtained by their means.

It is my private opinion, however, that the interest of four per cent. is not an equitable allowance. I mean that four per cent. is not so much as the use of the money is honestly worth in the ordinary course of business, upon an average for a year; and I have accordingly exerted all the little faculties I had, in endeavoring, on Monday last, to raise the interest to six per cent. But after two days' debate, the question was lost by an equal division of the States present, five against five. New Hampshire, Massachusetts Bay, New Jersey, Pennsylvania, and Virginia on one side, and Rhode Island, Connecticut, North Carolina, South Carolina, and Georgia, on the other. Here was an example of the inconvenience and injustice of voting by States. Nine gentlemen, representing about eight hundred thousand people, against eighteen gentlemen, representing a million and a half nearly, determined this point. Yet we must not be startled at this."

2 See no. 326, note 8, ante. Rush appears to have made notes of the debates of Feb. 11, but afterwards (he or another) tore the leaf from his Diary. See no. 349, note 5, ante.

[351] Md. Hist. Soc., Red Book, VI. 22; Arch. of Md., XVI. 130.

2 See the Journals, Feb. 7. Cf. nos. 327, 343, ante.

[352]1 Works, IX. 452.

2 Cf. no. 340, ante. See the postscript to this letter, also no. 326, note 8, ante. 3 Cf. no. 349, ante.

I think it my duty to mention this to you, because it must be astonishing to most people in our State, that the interest is so low. I know they are at a loss to account for it upon any principles of equity or policy, and consequently may be disposed to blame their delegates; but you may depend upon it, they are not in fault.

I tremble for the consequences of this determination. If the loan officers should not procure us money, we must emit more, which will depreciate all which is already abroad, and so raise the prices of provisions and all the necessaries of life, that the additional expense to the continent for supplying their army and navy will be vastly more than the two per cent. in dispute, besides all the injustice, chicanery, extortion, oppression, and discontent, which is always occasioned everywhere by a depreciating medium of trade. I am much afraid of another mischief. I fear that for want of wisdom to raise the interest in season, we shall be necessitated, within a few months to give eight or ten per cent., and not obtain the money we want after all.

I have been so often a witness of the miseries of this after-wisdom, that I am wearied to death of it.

Had a bounty of twenty dollars a man been offered soldiers last June, it would have procured more than the enormous bounties that are now offered will procure. Had government been assumed in the States twelve months sooner than it was, it might have been assumed with spirit, vigor, and decision, and would have obtained an habitual authority before the critical time came on, when the strongest nerves of government are necessary; whereas now, every new government is as feeble as water, and as brittle as glass.

Had we agreed upon a non-exportation, to commence when the nonimportation commenced, what an immense sum should we have saved! Nay, very probably we should have occasioned a very different House of Commons to be chosen, the ministry to have been changed, and this war avoided. Thus it is. You, who will make no ill use of these observations, may read them, but the times are too delicate and critical to indulge freely and generally in such speculations. It is best, I believe, that no mention should be made that the rate of interest has been again debated, lest some saving men should withhold their money in hopes of compelling the public to raise the interest. If the interest should never be raised, those who lend in our State will fare as well as others; if it should, the interest of all will be raised, that which is borrowed now as well as that which shall be borrowed hereafter. I sincerely wish that our people would lend their money freely. They will repent of it if they do not. We shall be compelled to emit such quantities that every man, except a few villains, will lose more by depreciation than the two per cent. Not to mention again the scene of anarchy and horror, that a continuation of emissions will infallibly bring upon us.

The design of loan-offices was to prevent the farther depreciation of the bills by avoiding farther emissions. We might have emitted more bills promising an interest, but if those had been made a legal tender like the

other bills, and, consequently mixed in the circulation with them, they would instantly have depreciated all the other bills four per cent., if the interest was four, and more than that, too, by increasing the quantity of circulating cash. In order to prevent these certificates from circulation, and consequently from depreciating the bills, we should give them such attributes as will induce men of fortune and others who usually lend money, to hoard them up. The persons who usually lend money are, 1. Men of fortune, who live upon their income, and these generally choose to have a surplusage to lay up every year to increase their capitals. 2. Opulent merchants who have more money than they choose to risk, or can conveniently employ in trade. 3. Widows, whose dower is often converted into money and placed out at interest, that they may receive an annual income to live upon, without the care and skill which is necessary to employ money advantageously in business. 4. Orphans, whose guardians seldom incline to hazard the property of their wards in business. 5. A few divines, lawyers, and physicians, who are able to lay by a little of their annual earnings. 6. Here and there a farmer and a tradesman, who is forehanded and frugal enough to make more money than he has occasion to spend. Add to these,-7. Schools, colleges, towns, parishes, and other societies, which sometimes let money. All these persons are much attached to their interest, and so anxious to make the most of it, that they compute and calculate it even to farthings and single days. These persons can get six per cent., generally, of private borrowers, on good security of mortgages or sureties.

Now, is it reasonable in the State to expect that monied men will lend to the public at a less interest than they can get from private persons?

I answer, yes, when the safety of the State is not in doubt, and when the medium of exchange has a stable value, because larger sums may be put together, and there is less trouble in collecting and receiving the interest, and the security is better. But the case is otherwise, when men are doubtful of the existence of the State, and it is worse still, when men see a prospect of depreciation in the medium of trade. All governments in distress are obliged to give a higher interest for money than when they are prosperous.

The interest of money always bears some proportion to the profits of trade. When the commerce of a country is small, lodged in few hands, and very profitable, the interest of money is very high. Charles the Fifth was necessitated to give twenty-four per cent. for money; afterwards it fell in Europe to twelve, and since to six, five, four, and three.

I think I shall never consent to go higher than six per cent., as much as I am an advocate for raising it to that, and in this I have been constant for full nine months. The burden of six per cent. upon the community will very soon be heavy enough. We must fall upon some other methods of ascertaining the capitals we borrow. A depreciating currency we must not have, it will ruin us. The medium of trade ought to be as unchangeable as truth, as immutable as morality. The least variation in its value does injustice to multitudes, and in proportion it injures the morals of the people, a point of the last importance in a republican government.

15 March, 1777.

Thus far I had written a long time ago, since which, after many days deliberation and debate, a vote passed for raising the interest to six per cent. If this measure should not procure us money, I know not what resource we shall explore.*

To read this will be punishment enough for your omission to write to me all this while. I have received nothing from you since I left Boston.

353. THOMAS BURKE, ABSTRACT OF DEBATES.1

Feb'y. 12th. Maryland and Pennsylvania were very solicitous to procure a vote of Congress, approving a meeting lately held by committees appointed by the four New England Governments, to the end that this approbation might imply a right to disapprove. It occasioned very long and interesting debates. At length the general opinion was that Congress had necessarily a right to inquire into the cause of any meeting and to require to know what was transacted at any such meetings, and also to require an explanation of anything that was dubious, and satisfaction for anything that was alarming to the whole, or any one of the States; that this right necessarily existed in their power to take care each for his respective State that no injury happened to her from without. But that Congress had no right to prohibit meetings, or censure them if the transactions in them were not injurious to others. The delegate of North Carolina refuse [d] to say what his State could not do, declaring he thought she could do every thing which she had not precluded herself from by plain and express declaration: to yield up any of her rights was not in his power, and very far from his inclination: that by the Law of Nations she had a right to demand a satisfactory account and explanation of any transaction of one or more States, and she had appointed him to watch lest any injury should come to her from without. In this he would use his best endeavours. The question put, the approbation was denied, many voting against it lest its ambiguity should create further disputes; of this number was North Carolina.2

Sir

354. THE MEDICAL COMMITTEE TO GEORGE WASHINGTON.1 BALTIMORE Feby 13th 1777

The Congress Apprehending that the Small Pox may greatly endanger the Lives of our fellow Citizens who compose the army under your Excellency's Command, and also very much embarrass the Military Operations, have directed their Medical Committee to request your Excellency to give orders that all who have not had that Disease may be Inoculated, if your Excellency shall be of Opinion that it can be done without prejudice to your Operations.2

4 See the Journals, Feb. 26.

[353]1 N. C. State Recs., XI. 389.

2 See no. 323, note 2, ante, and especially no. 357, post.

[354]1 Library of Congress, Letters to Washington, XIII. 244.

2 See the Journals, Feb. 12.

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