Currency issues
Document 1786Letter to the Board of Treasury regarding various currency issues.
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by me and that he has so well immitated my Signature that it is almost impossible to detect them I am therefore Apprehensive that the Loan Officers may by this means have been imposed on & have therefore to request your Attention to the detection of any Person who shall Offer such duplicates for the Payment of Interest, and that you will see if on the back of some of them there is not marked in Small figures the Number of the Certificate in Phelons hand in which Case you may be very certain that the Certificate is a bad one and will require the utmost attention that the Persons through whose hands the same has passed should be Known.
[signature: JP]
The Loan Officers of the
different States
Gentlemen Office of Army Accounts
November 2. 1786.
I In Conformity to the directions of the Board of the 28 ulto. I have Considered the subject of Mr Grahams Letter of the 23d Sept. & beg Leave to Submit the following Opinion—
1st. That the States were bound by the Acts of Congress and must rely on them for their Authority to Support their Payments to which Principle the Commissioners ought invariable Adhere.
2d. That during the Period of the Old Emissions all the Acts and Promises of Congress were in this money & therefore the States were not Warranted to make any other Payments than in those Emissions.
3d. That this Money where paid is to be Considered as a just and Compleat discharge, and Subject to no after Allowance for depreciation, unless a Particular Resolve of Congress has given a further latitude, which Cannot Operate as a rule for the allowance of any other Cases than those expressly mentioned therein. I have founded this Opinion on the following reasons.
On the first Point. Because the States Acted not for themselves alone, and therefore had no right of themselves to lay the Union an expence which would not only introduce disproporstrate and improper allowances but Contravene the Principles of the Confederation which has directed the Manner the National expences and moneys shall be Ascertained and Appropriated & which no individual State can Contravene. and because in Cases of the Most Apparent Equity no one of the State Commissioners (from the Want of a Knowledge of the Circumstances of the demand of other States) can be an Adequate Judge of the extent of a Precedent admitted by him. I have to Observe on the Second Point, whatever that the promises of Congress are to be considered during the time of the old Emissions as made in that Currency. that this Money, was the only medium known in all transactions That many rates of pay were fixed in it much higher than were proper to be done in Specie. that Congress have ever in their Acts Considered it in that light and restated the pay of every Officer and detachment under them, when this money ceased to have a Currency in the Union. and that it appears to be a greater Absurdity that a State should be allowed to pay $139 $month to its Privates in the Militia at the same time that the Soldiers in the Line of the same State could not be allowed by the Resolves of Congress any further Sum than 40$ in the same money.
and on the last Point That the States cannot allow a depreciation on their payments unless Authorized by a Particular Resolve of Congress. I am of this Opinion not only for the reasons mentioned under the Preceding head but because this money being Issued under the faith of the Union was made a tender & a Compleat Satisfaction of which Law there is no general repeal. It is indeed to be doubted whether the Present Authority of the United States can make a Law to set a side payments made under their sanction & whether a greater Confusion & injustice would not arise from such a measure than what now Exists in Consequence of such Laws. I am therefore of Opinion that every exception to the tender Laws ought to be construed in its strictest sense. and that no departure be permitted from the Words of the Act granting such an Exception.
If the above Principles are admitted it follows that the Commissioners are bound in their allowance of the States Payments in old money to the rates of Pay fixed in that Currency by the Resolves of Congress without Considering before it was Officially known that it was depreciated, excepting in Cases which Congress has expressly excepted what those allowances were given to the Militia & whether a depreciation on them has been granted is now to be examined. the Acts of Nov. 7. 1775. of June 5. and Sept. 14. 1776. and of June 6. 1778 appear to place the Militia while in Service at the same rate of Pay and Subsistence with the rest of the Continental Forces. excepting that the Officers and Men should bear a Proportion to each other & that the Subsistence granted by the Resolves of August 17. 1779 was not extended to the Militia. The Resolves which respect the Pay of the Army in that Period are Principally the following; June 14. July 29. Nov. 4 & December 8. 1775. March 30. June 5 & 16th. & Oct. 7. 1776 & May 17. & June 2d 1778. none of which granting more than Six dollars & two thirds $month to a foot Soldier. I presume will Warrant a further Payment; there is However a Resolve of the 10th day of April 1780 which promises to such of the Line of the Army & independant Corps as were then in Service a depreciation on their Original Pay, provided that no Person shall take benefit of the same, unless he was then engaged for the War, or for three Years or Should afterwards engage for the War. and I am of Opinion that this promise is evidently made as a new grant to the Army, that it extends to no other Characters than those to whom the same is Confined and that Congress have always viewed it in the same light, as appears by the Particular cases on which they have decided in their Subsequent Resolves of Aug. 8. 1780 May 13. Aug. 12 1783. & Feb. 7. 3d. 1786.
The Acts of June 1. 1784 & April 13. 1785 I understand to Confine the Credits to be made to the States under the same, to such Payments "as were due from the United States" that is, such as the Resolves of Congress would warrant the Payments of. and not as Mr. Graham supposes to make any new grant or to Cover an unauthorized Payments
The other question proposed by Mr Graham which is whether waggon moneys ought to be allowed. the Militia may be divided into an Allowance to Officers and to Privates — in respect to the former as the Line of the Army have been always allowed Waggons in a Certain proportion from the Qr. M. Department, I am of Opinion that the Officers of the Militia were admitted to the same Priviledge. but in respect to the Soldiers I cannot after a strict view [strikethrough: find any regard paid by Congress to] such a Claim or an Account of this Nature admitted by an Officer of Congress either for the regular Army or the Militia. I am therefore of Opinion that it was expected that the Militia Privates should carry their own Packs of Clothes as well as the Continental Soldiers. and that the only allowance which can be made them while Marching and before they drawn Provisions is one dollar & one third $week. under the Resolve of Congress of October 12. 1775 which I find the Pay Officers of Congress have allowed the Militia by the term of billeting money.
I am with Respect
Honorable the Board of Treasury. J.P.
Sir New York November 13th 1786
I find that there is pay to Benjamin Dance and I will issue the same to you on your producing the Originale papers referred to in your Letter and on Obtaining the Acknowledgement of Dance before some Magistrate to his Power of Attorney
I am Sir
Mr Jere Hill J.P.
Type
Letterbook
Description
Letter to the Board of Treasury regarding various currency issues.
Date
11/02/1786
Author
Recipient
Sent from
Office of Army Accounts
Document number
1786110221055
Page start
176
Notable persons
Board of Treasury
John Pierce
Nathaniel Gorham
Congress
commissioners
soldiers
militia
Notable locations
Office of Army Accounts
States
Union
Notable items
Allowance
currency
specie
paper money
depreciation
wagons
continental dollar
clothes
clothing
substitence


