USA > Pennsylvania > The Register of Pennsylvania : devoted to the preservation of facts and documents and every other kind of useful information respecting the state of Pennsylvania, Vol. III > Part 44
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his Brother-in-Law, came over .! Yet when once he is provoked so strong and Resolute are his passions, so vio- lent his Resentment and so irreconciliable his temper that no Consideration seems sufficient to prevail on him to open his eyes even to his own profit, and Hence are the oppressions the people suffer as well as his own dis- appointments. But we think ourselves more particular- ly obliged to observe, that by these means your luter- est, in the Lower Counties especially, seems to be in imminent danger; nor is it only owing to the repeated hardships he throws these People under, from whence it is to be expected that they, finding their application fruitless may endeavor to extricate themselves by other means, but there is also too much room to suspect some further designs: Thy Letter to the Secretary mentions his Brothers solicitations for renewing his approbation, of which, (excepting from these Letters,) we have oth- erwise never heard one syllable, and the same Person (his Brother) being taxed by one with some warmth of being the fatal Instrument in these divisions, he first de- nied it, but afterwards, before several of us added, that he had been once in England to make things appear as they were, and should goe again next spring to make them yet more clear .- But now we are told he designs over very speedily. These voyages, with the Gover- nors manifest slight of the Proprietors power in those Counties, give such umbrageas that we cannot but be- lieve it will concern you both for your own Interest and the Peace of this People to think on speedy measures before it may prove too late.
We are sensible that he values himself upon some ffriends at home, and if his Letters can gain Cre- dit it is very probable they may represent our affairs very different from what any impartial hand can render them, for in every conversation of his we have but too many Instances of this particular turn. The clearest matters of fact are denied, Imaginations that never had being but in his own thoughts are mentioned as certain Truths: such are the Plots and designs that he believes every man he is offended with has against him, tho they seem out of the reach of every man's understanding but his own But what we more particularly take notice of is, his late custom of branding those he setts himself against with the character of Jacobites, socinians, and enemies to the King and whatever else he thinks pro- per, tho excepting that it is his pleasure, no man that we know of can assign any reason for it. Being well assured that there has been no person mentioned to him by us for any Commission, but who are free to take all the Oaths and Qualifications the Law requires, and are well affected to the present Establishment and settlement of the Crown. But that this method is now used by him to serve a purpose and in hopes that only, is more than probable seeing that his most in- timate Companions since his arrival in the Country have been particularly noted for their disaffection that way, and as 'tis commonly affirmed by those who have had his acquaintance few men have been more open to the same purpose than his great ffriend the Parson, not- withstanding he has lately thought it requisite to take the Oaths, yet this man so warmly espouses under all his Crimes that he has not only Granted nollee Proso- quius to the three Indictm's against him but by support- ing bim on all occasions has in a Great measure kept up the unhappy divisions that at present reign among the people under the pretence of the Church. This method of stigmatising men with such Characters as he thinks may make the deepest impressions and be easiest heard at home we think ourselves obliged to mention because having no excuse for his conduct, we have reason to be- lieve he hopes for success from this practice, the only method that seems left him, by which the most inno- cent may be made to suffer at such a distance where they neither are known, nor can know what is alledged against them. as for our parts, as we have always used the utmost tenderness and caution not to aggravate his Resentments, so in what we have written have taken
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SINKING FUND.
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care to advance nothing but what we are satisfied is Truth, and it would be an ease to us could we be assu- red it would be[confronted with nothing but what is equally ao, which notwithstanding is more than can be expected, for we know by large experience that a jealousy in himself however groundless, or the most tri- ffling story from the meanest hand, weigh more with him of late than the most pressing Instances his Council can make to him, so a very slender amount when once re- ceived too often prevails against all the more solid proofs that can be produced to the contrary.
Having now acquitted ourselves of what we thought was incumbent on us we must refer the whole to thy consideration there, and as nothing less than necessity, (we assure thee) has forced us to give thee this trouble, so we cannot doubt but thou wilt believe it should all have been prevented had it been in our power, who shall at length conclude with sincere respects to the Proprietor, Thyselfand all the Family, and with earnest desires for his wellfare and all your prosperity. Thy very loving Friends JAMES LOGAN
ROBT. ASHTON
RICHARD HILL
ISAAC NORRIS SAM'L PRESTON
JONATH'N DICKINSON The rest of the members happen to be out of Town.
THE CITY SINKING FUND.
The Sinking Fund was created by Councils some years ago, to enable them to carry on to completion the Water Works and other important improvements, which could only be done by means of loans; to ob- tain which, it was necessary that some security other than taxation, should be given. Many citizens are not acquainted with this great palladium of security, which the city creditors have, and which has caused those loans to be obtained on more advantageous terms than those of the state. A report made to Councils, by the Committee of Ways and Means, gives a lucid and ex- plicit state of that Fund; and shows clearly, that if it is not encroached on, the whole of the city debt, as it stood at the date of this report, would be paid off in the year 1858 .- Some additional loans, to be sure, have been made, but the surprising increase of the water rents and other sources, which will flow into this fund, will render it more than adequate to all demands that may be made upon it.
To the Select and Common Councils.
In pursuance of a Resolution of Councils, of 22d. January last, the Committee of Ways and Means have prepared a draft of an ordinance in relation to the Sinking Fund, differing in some measure from their former view of the subject; which has arisen from their desire to effect a more speedy relief to their fellow-ci- tizens from the burthen of interest, and from a necessi- ty of looking to the operation of the Sinking Fund, to be founded on an investment of 5 per cent. interest, in- stead of 6 per cent. as heretofore calculated.
The Committee now propose to continue the appli- cation of $22,000 a year to the Sinking Fund, as long as any debt shall remain, and to rely on the increase of the Fund to pay off the debts as they fall due, and thus by their extinguishment, gradually reduce the sums now required for the annual interest upon them.
Aa the first step, there would be cancelled the City Debt, placed in the Sinking Fund under Ordinance of 28th February, 1811, amounting to 65,500 dollars, re- lieving the City from the interest thereon, of 3930 dol- lars; while, at the same time, more than an equivalent will be found in the continuance of the sum of 22,000 dollars, annually applied to the Sinking Fund, of which it appears doubtful whether more than 15,000 dollars are bona fide pledged, to the holders of the Stocks.
As there is a doubt, it should lean to the support of the public faith.
The principle of all Sinking Funds should be, that upon the creation of the debt, a sufficient appropriation should be made to the Fund to ensure its redemption at the period it falls due; and when this happens, the debt should be paid off, and the people relieved from the burthen of the interest.
The Committee have formed a new calculation, here- with submitted, of the operation of the Sinking Fund, at 5 per cent. interest, founded on the plan here pre- sented, of paying off the loans as they fall due, until the year 1846, when $456,000 becomes payable, and which, as the burthen will be then reduced to one half of the interest on the present debt, may be extended to 1856, 1857, and 1858; and then the Fund will operate to the discharge of the remaining debts as they come round. The following statement will show the gradual relief afforded to the public, in the annual appropria- tions for taxes :- viz.
The interest on the present debt is $74,391
The appropriation to the Sinking Fund is 22,000
Making the annual charge 96,391
But if the old debt, held by the Sinking Fund were cancelled, the sum would be reduced, by the interest on 65,500 dollars, 3,930
Leaving to be appropriated for 1824, 92,461
In 1825, there falls due 2,500 dollars, the in- terest on which is 150
Appropriation for 1825 and 1826, 92,311 In 1827, there is due 11,600 dollars and the interest is 580
Appropriation for 1827,
91,731
In 1828 there is due 8,000 dollars, and the interest is 480
Appropriation for 1828,
21,251
In 1829, there is due 2,500 dollars, and the interest is 125
Appropriation for 1829,
91,126
In 1830, there is due 50,000 dollars, and the interest is 3,000
Appropriation for 1830, 88,126 In 1831, there is due 149,600 dollars, and the interest is 7,480
Appropriation for 1831 and 1832, 80,646 In 1833, there is due 85,000 dollars, and the interest is 4,950
Appropriations, from 1833 to 1839, 75,696 In 1840, there is due 380,400 dollars, and the interest is 22,070
Appropriations from 1840 to 1842,
53,626
So that, in sixteen years, by the operation of the pro- posed plan, the annual appropriation will be reduced from 96,391 dollars to 53,626 dollars; making a differ- ence of 42,765 dollars, a sum nearly double the present amount of the appropriation to the Sinking Fund; and so continuing to operate until the final extinguishment of the debt, as appears by the accompanying statement.
This gradual reduction is the more proper, on account of the operation on the value of real estate; for if the pre- sent plan be pursued, the annual appropriation will con- tinue to be 96,391 dollars, until the final extinguisliment of the debt, when it will suddenly cease, and relieve the citizens at a remote period, to the burthen of all in the mean time. This was never intended by the origi- { nal plan of the Sinking Fund, and no Ordinance is to
1829.]
SINKING FUND.
157
be found warranting such a system, except in the case of particular stock, under the Ordinance of 28th Feb- ruary, 1811.
Many other reasons present themslves, amongst which one however is most prominent. If the Sinking Fund goes on according to the present plan, the Com- missioners will have to receive an increased sum of inte- rest every year from the City Treasury, amounting, for instance, in 1840, to 44,760 dollars, upon stock actually redeemed; and of course this increased sum is to be an- nually invested, making complex what ought to be plain. But if the proposed plan is adopted, the only investment will be the interest of the sums remaining in the Sinking Fund after the payment of every debt, and the annual appropriation of 22,000 dollars. Respectfully submitted,
J. W. THOMPSON, Chairman.
February 12, 1824.
CALCULATION OF THE SINKING FUND, With an Appropriation of 22,000 dollars per annum, in- vested at 5 per cent. and paying off the debts as they fall due, except the debt due in 1846, amounting to 456,000 dollars, which is to be extended to three equal payments, falling due in 1856, 1857, and 1858; and funding the present temporary and other Loans, amounting to 58,000 dollars, due In 1823 and 1824, making them payable in 1851, and cancelling the sum of 65,500 dollars of Old Stock, now held in the Sink- ing Fund.
Amount of fund, January 1, { 1824,
$257,850
Interest
Deduct old stock, 65,500
Appropriation
22,000
Actual fund, Jan.
367,900
1, 1824,
192,350
Debt due, 1831,
149,600
Add one year's in-
terest,
9,615
Fund, 1831,
218,300
Fund, 1848,
266,215
Debt due, 1857
Appropriation
22,000
Interest
10;915
Interest
13,310
Fund, January 1, 1825
223,965
Fund, 1832,
251,215
Fund, 1849,
301,525
Appropriation
22,000
Payment of debt due ditto
2,500
Appropriation
22,000
Appropriation
22,000
Debt due 1858
156,000
Fund, 1850,
338,600
Interest
11,070
Debt due, 1833,
85,000
Appropriation
22,000
Fund, 1833,
200,775
Fund, 1826
254,535
Interest
10.035
Interest
12,725
Appropriation
22,000
Fund, 1834,
232,810
Interest
11,640
Debt due, 1827,
11,600
Appropriation
22,009
Fund, 1827,
277,660
Fund, 1835,
266,450
Interest
13,880
Interest
13,320
Appropriation
22,000
Appropriation,
22,000
313,540
Fund, 1836,
301,770
Debt due, 1828,
8,000
Interest
15,085
Appropriation
22,000
Fund, 1828,
305,540
Present charge,
96391
Interest
15,275
Fund, 1837,
338,855
Interest
16,940
Appropriation
22,000
342,815
Debt due, 1829,
2,500
Fund, 1838,
377,795
Interest
18,890
Fund, 1829,
340,315
Interest
17,015
Appropriation
22,000
Fund, 1839,
418,685
Interest
20,930
379,330
Debt due, 1830,
50,000
Debt due, 1840, 380,400
377530 58000
Fund, 1840,
81,215
Interest,
Fund, 1851,
319530
Appropriation
4,060 22,000
Interest 15975
Appropriation 22000
Fund, 1841,
107,275
Interest
5,360
357,505
Appropriation
22,000
Debt due 1852
50,000
Fund, 1842,
134,635
Fund, 1852,
307505
Interest
6,730
Interest
15,375
Appropriation
22,000
Appropriation
22,000
163,365
Fund, 1853,
344,880
Debt due, 1843,
50,000
Interest
17,280
Fund, 1843,
113,365
Interest
5,665
Appropriation
22,000
Debt due, 1854, 51,000
Fund, 1844,
141,030
Fund, 1854,
333,160
Interest
7,050
Interest
16,655
Appropriation
22,000
Appropriation
22,000
Fund, 1845,
170,080
Fund, 1855, 371,815
Interest
8,500
Interest
18,590
Appropriation
22,000
Appropriation
22,000
Fund, 1846,
200,580
412,405
Interest
10,025
Debt due 1856
150,000
Appropriation
22,000
Fund, 1856,
262,405
Fund, 1847,
232,605
'Interest
13,110
Interest
11,610
Appropriation
22,000
Appropriation
22,000
Appropriation
22,000
Appropriation
22,000
Interest
7,375
Interest
12,560
Interest
15,075
176,890
Interest
16,930
Surplus, Jan. 1, 1858.
20,890
Appropriation
22,000
STATEMENT
To show the effect of the gradual Reduction of the City Taxes, by the annual Appropriation of 22,000 dollars to the Sinking Fund, and paying out of the same the Funded Debt, as it falls due-viz.
Present Debt, including the sums unfunded, now due, and the Loan authorized to be raised in 1824,
$1354600
Interest thereon. per annum, Appropriation to the Sinking Fund,
22000
Deduct interest on stock redeemed, but held in the Sinking Fund, $65500, interest, 3930
Appropriation required for 1824, Debt cancelled January 1, 1825, $2500, inte- rest,
150
Appropriation
22,000
92311
Appropriation required for 1825 and 1826, Debt cancelled January 1, 1827, $11600 inte- rest, 580
91731
Appropriation for 1827,
461,615 Debt due Jan. 1, 1828, $8000, interest,
480
Appropriation
22,000
Appropriation
22,000
297,515 150,000
147,515
221,466
285,775
289,260
Fund, 1830,
329,330 16,570
Debt due 1851
74391
Appropriation
22,000
92461
Appropriation
22,000
384,160
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WAREHOUSING SYSTEM.
[MARCH
Appropriation for 1828,
91251 125
Debt due Jan. 1, 1829, $2500, interest,
Appropriation for 1829,
91126
Debt due Jan. 1, 1830, 50000, interest
3000
Appropriation for 1830,
88126
Debt due Jan. 1, 1831, 149600, interest
7480
Appropriation for 1831 and 1832,
80646
Debt due Jan. 1, 1833, 85000, interest
4950
Appropriation from 1833 to 1839,
75696
Debt due Jan. 1, 1840, 380400, interest
22070
Appropriation for 1840, 1841, and 1842,
53626
Debt due Jan. 1, 1843, 50000, interest,
3000
Appropriations from 1843 to 1850,
50626
Debt due Jan. 1, 1851, 58000, interest
2900
Appropriation for 1851,
47726
Debt due Jan. 1, 1852, 50000, interest
3000
Appropriation for 1852 and 1853,
44726
Debt due Jan. 1, 1854, 51000, interest
2550
Appropriation for 1854 and 1855, 42176
Debt due Jan. 1, 1856, 150000, interest
7500
Appropriation for 1856,
34676
Debt due Jan. 1, 1857, 150000, interest
7500
Appropriation for 1857,
27176
Debt due Jan. 1, 1858, 150000, interest
7500
Jan. 1, 1858, appropriation will pay off the 19676 Debt, with the aid of the Sinking Fund .- Poulson.
REPORT ON THE WAREHOUSING SYSTEM.
In the House of Representatives, February 23, the following report was read, and laid upon the table.
Mr. Cambreleng, from the Committee on Com- merce, to which the subject had been referred, made the following Report.
The Committee on Commerce, to which were referred various memorials recommending cash du- ties, warehousing, and other commercial regulations report:
The measures proposed in these memorials would effect an almost entire revolution in the laws regu- lating the collection of our revenue. Previous to any decision on the expediency of such a change, the committee felt it to be their duty, fully to examine the complaints urged against our existing commer- cial system, to ascertain whether it had pro- duced such serious mischief as warranted Congress in unsettling laws as ancient as the government itself. A thorough consideration of these objections has satisfied the committee that our regulations have been precipitately denounced, and that there is no- thing in the condition of the country requiring so material a change in its commercial policy. On the other hand, an examination of the question has per- suaded them that the acts of the first Congress in this branch of legislation have not been improved by sub- sequent amendments: and that it would be wiser to repeal the latter, and restore the system to its origi- nal form. As this may be a subject of future legis. lation, in answering the arguments of the memori- alists, the committee deem it a proper occasion to suggest such modifications as they think would be serviceable to our revenue and commerce.
The memorialists complain of credits on revenuc bonds, as ruinous to trade, and as a means of creat- ing fictitious capital. This indulgence is represent- ed as the principal, if not sole cause, of the violent
reactions in trade, which occasionally visit us with bankruptcies. Every country has, at least for a sea- son, some imaginary, but very mischeivous source of such reactions. With us custom house credits have recently become the fashion of the day. Vicisitudes in commerce are, nevertheless, common to all times and all nations; and it is not probable that conse- quences which are visible every where can be pro- duced by the particular laws of any one country. How- ever general the opinion may be, reactions in trade are neither caused, nor even sensibly affected, by our credits on revenue bonds. The committee can- not attach much importance to statements of the pernicious influence of credits generally upon trade. Whatever form it may assume, credit is a common theme of declamation, and its permanent advantages are too frequently overlooked in contemplating the temporary mischiefs resulting from its abuse. It is notwithstanding one of those modern improvements, which when properly regulated, facilitates commerce and accelerates the growth of national wealth. To doubt its benefits, would lead us to question whether the rapid facilities and quick returns of an enlighten- ed era are more salutary in their influence than the dull circulations of a barbarous age. Government credits neither produce, nor would their abolition prevent, reactions in trade. The example of Great Britain herself should admonish the memorialists that the proposed remedy would be entirely abortive. No legislation can relieve a country from fluctua- tions in commerce, which are incidental to activity and enterprise, and which always agitates nations enjoying the most rapid accumulation of wealth and resources.
The treasury returns afford a satisfactory reply to arguments founded on an opinion that cash duties, with warehousing, would make our revenue more secure. To the first of January last, about six hun- dred and eighty-eight millions of revenue had ac- crued from customs; and with the exception of losses by frauds in warehousing teas, the ratio of loss was less than the half of one per cent. Forty years ex- perience has proved most satisfactorily that a more secure system cannot possibly be devised. General warehousing would render a multiplicity of private warehouses necessary; frauds would be increased, and a considerable loss of revenue would be sus- tained from fire, waste and other causes, incidental to warehousing. These would far exceed the half of one per cent. In addition to this, withdrawing a facility equivalent to the use of a capital of twenty- five or thirty millions would diminish the number of importers, increase prices and profits, restrict im- portations, and lessen consumption and revenue.
Credits are further complained of because they oblige Government to claim a prior right in the dis- tribution of bankrupt estates; in the exercise of which right very little remains for other creditors. It is doubtful whether any legislative provisions will ever sensibly increase dividends on bankrupt estates .- Surities will, under any plan, be provided for. The committee cannot perceive how it would make any substantial difference in the division of the bankrupt's property, whether the claims of Government were to be satisfied out of the particular merchandise in its possession, or from the general estate of the impor. ter .- It is a common opinion, that this priority is ar- bitrary, unjust, and impolitic: and even some of the memorialists, who protest against cash duties, pray that Government would relinquish it. The origin and nature of this contract seem to be entirely mis- understood. The Government is in possession of the merchandise upon which the duties are levied on importation. For the accommodation of the mer- chant, and to facilitate commerce, the property is relinquished on certain conditions; one of which is, tbe transfer of the lien from the particular to the general estate of the importer. This is merely exer-
-
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WAREHOUSING SYSTEM.
1829.]
cising a right which is common to all who release one security for another equally good; and the committee can see nothing unjust or arbitrary in it. If the facilities extended to commerce by this arrangement are not equivalent to the inconveniences resulting from it-if Government must relinquish all hold upon the estate of the importer, cash duties are inevitable; for bonding without other security would be ruinous to our Treasury. Wherever two houses, which is the common practice, are mutual sureties for each other, the interest of the Government would be uni- formly sacrificed were this priority relinquished, and the customhouse would, in truth, become a loan office for the use of fraudulent bankrupts. The committee are of opinion that it is far better for commerce to bear with its occasional losses than to part with a facility of permanent and general advantage.
The committee are not, however, entirely oppos- eil to any modification of our laws regulating credits. Some of the credits have been unnecessarily extend- ed beyond the measure of mere facility to commerce. 'These have, in some instances, produced specula- tions and voyages, not for profit, the legitimate object of trade, but for the sole purpose of creating an arti- ficial capital through the agency of custom-house bonds .- Our China trade has been much embarrass- ed from this cause. It has been occasionally almost monopolized by merchants whose capital was entire- ly realized through respondentia and custom-house bonds. It is not sound policy to encourage specula- ions which disturb the regular current of trade and diminish the capital of the Union. Some of our credits may be moderated with advantage both to commerce and revenue, and all of them want regu- lation. There certainly can be no sound reason for the strange irregularity now existing. Under the act of March, 1799, we have the following various terms: 3 and 6 months; 6, 9 and 12; 8, 10 and 12; some at 9 months; some at 12 months; and special provisions with regard to teas, equal to 12 months' warehous- ing, and 12 months' credit, in addition. As if these terins were not sufficiently irregular, the act of April 1818, made them more so, by introducing two new terms of 6 and 9 months, and 8, 10 and 18 months. The committee are satisfied that no sufficient reason can be given for this singular confusion in our terms of credit. The same credit should be allowed, from whatever quarter of the world the merchandise may be imported. The terms now existing were proba- bly designed for the usages of trade and the extent of the voyage. Though generally a correct rule, there is a perplexing difficulty in applying it to the varying customs of trade. In this instance, it would be far better to require that the usage of trade should accommodate itself to the law, than to attempt by constant legislation to frame the latter to suit the capricious changes of the former. But we have acted on neither rule; for, while we have been ex- tending the terms of credit, commerce perceiving the advantage of quick returns, has abandoned the use of long credits. The committee cannot perceive any substantial reason for varying the terms of credit on duties, whether the produce be of Europe or of Asia, nor for discriminating between the productions of countries north or south of the equator .- The same credits should be allowed on all merchandise, without regard to the length of the voyage; tlie object of government not being to furnish capital for our foreign commerce, but simply to grant an indulgence in collecting its revenue upon consump- tion.
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