which uniformly govern the Treasury in the purchase of bills of exchange. Mr. Flewelling is instructed to purchase bills of the petitioner, provided he offers them upon terms as advantageous to the Treasury as they can be obtained from other persons. The solicitude which is manifested in the letter, that the drawers and endorsers should be solvent, would not have been felt, if the proceeds of the public stock intended to be remitted to London had been considered by the Secretary as materially affecting the transaction. If it should be admitted that the Secretary of the Treasury knew that the petitioner relied upon the proceeds of that stock to meet the demand created against him by the sale of the bills of exchange in question, it is not perceived that that circumstance could, in any manner, change the nature of the transaction. The bills were clearly taken upon the general credit of the parties to them, and not upon any specific fund which they might contemplate as a means of complying with their engagements.

I have the honor to be, your most obedient servant,

Hon. JOHN GAILLARD,

President pro tempore of the Senate.

WM. H. CRAWFORD.

TREASURY DEPARTMENT,

April 4, 1814.

NOTICE.

Whereas, by an act of Congress passed on the 24th day of March, 1814, the President of the United States is authorized to borrow, on the credit of the United States, a sum not exceeding twenty-five millions of dollars; and whereas the President of the United States did, by an act or commission under his hand, dated the 29th day of March, 1814, authorize and empower the Secretary of the Treasury to borrow, on behalf of the United States, the aforesaid sum of twenty-five millions of dollars, or any part thereof, pursuant to the act of Congress above recited:

Notice is therefore hereby given, that proposals will be received by the Secretary of the Treasury, until the 2d day of May next, from any person or persons, body or bodies corporate, who may offer, for themselves or others, to loan to the United States, on account and in part of the aforesaid sum of twenty-five millions of dollars, the sum of ten millions of dollars, or any part thereof, not less than twenty-five thousand dollars.

The stock to be issued for the money will bear an interest of six per centum per annum, payable quarter-yearly; and the proposals must distinctly state the amount of money offered to be loaned, and the rate at which the aforesaid stock will be received for the same. The amount loaned is to be paid into a bank or banks authorized. by the Treasury, in instalments, in the following manner,

viz:

One-fourth part, or twenty-five dollars on each hundred dollars, on the 25th day of May next; and one-fourth part on the 25th day of each of the ensuing months of June, July, and August next.

On the day fixed for the payment of any instalment after the first, all the remaining instalments may be paid.

The sum loaned is to be paid into such bank or banks as may be mutually convenient to the lender and to the government, in the State where the lender resides, if desired by him. The proposals must state the bank or banks into which the lender may desire to make payments.

If proposals, differing in terms from one another, should be accepted, the option will be allowed to any person whose proposals may be accepted, of taking the terms allowed to any other person whose proposals may be accepted.

No proposals will be received for a sum less than twenty-five thousand dollars; but a commission of one-fourth of one per cent. will be allowed to any person collecting subscriptions for the purpose of incorporating them in one proposal to the amount of twenty-five thousand dollars, or upwards, provided such proposal shall be accepted.

If proposals shall be made amounting together to a greater sum than that required, the preference will, on equal terms, be given to those made by persons who were subscribers to the loan of eleven millions in the year 1812.

On the failure of payment of any instalment, the next preceding instalment to be forfeited.

Scrip certificates will be issued by the cashiers of the banks where the payments shall be made, to the persons making the payments; and the said cashiers will endorse on these certificates the payments of the several instalments when made.

The scrip certificates will be assignable by endorsement and delivery, and will be funded after the completion of the payments, upon presentation by the proprietor to the Commissioner of Loans for the State where the payments have been made.

The funded stock, to be thus issued, will be irredeemable till the 31st day of December, 1826, will be transferable in the same manner as the other funded stock of the United States, and will be charged for the regular and quarterly payment of its interest, and for the ultimate payment of its principal, upon the annual fund of eight millions of dollars, appropriated for the payment of the principal and interest of the debt of the United States, in the manner pointed out in the aforesaid act of the 24th March, 1814.

GEORGE W. CAMPBELL,
Secretary of the Treasury.

Case stated by the Secretary of the Treasury for the opinion of the Attorney General.

Under the authority of the act of Congress of the 24th of March, 1814, a notice was published by the late Secretary of the Treasury, dated the 4th of April, 1814, inviting proposals to a loan of ten millions of dollars, part of the loan of twenty-five millions authorized by the act. (See the document B, annexed to the Secretary's report of the 23d of September, 1814.)

On the 2d of May, proposals were presented by sundry persons,

which were accepted, in the terms of Mr. Campbell's letter of that date, at eighty-eight dollars in money for each hundred dollars in stock, with a specified condition. (See document B b.) These persons have carried their proposals into complete effect, and they are entitled to the benefit of the terms of the letter.

On the 25th of July, 1814, another notice was published by the late Secretary of the Treasury, inviting proposals to a loan of six millions, another part of the loan of twenty-five millions. (See document C.)

On the 31st of August, 1814, proposals were presented and accepted, under this second notice, upon the terms mentioned in Mr. Campbell's letter dated that day, at eighty dollars in money for one hundred dollars in stock.

There remains a considerable sum of the twenty-five millions of dollars authorized to be loaned, for which proposals have not yet been invited, but they probably will be invited soon.

First question. Does the specific condition in Mr. Campbell's letter of the 2d of May, 1814, admit the first lenders to the benefit of the terms of the second loan for the whole amount of their subscriptions, or only in proportion to the amount of the second loan, which still leaves a considerable part of the twenty-five millions unloaned?

Second. Was the condition absolute, and executed on making the second loan; or does it remain open, subject to all the possible variations of the price of the subsequent loans, and until the whole twentyfive millions have been loaned?

Third. To whom is the stock, for the difference between the price of the first and second loans, to be issued-to the contractors, the assignees, or the pledgers of the stock issued on the first loan?

Fourth. If the condition remains open until the whole sum of the twenty-five millions has been loaned, ought there to be successive issues of stock for the difference, or ought there to be only one issue of stock, to be made at the final execution of the authority to borrow the twenty-five millions of dollars?

Answer.

First. I think that, looking to Mr. Campbell's letter of the 2d of May, 1814, with a view to its fair construction on behalf of the public creditors, the first lenders are entitled to the benefit of the terms of the second loan to the whole amount of their subscriptions. Its language could scarcely fail to have awakened in them that expectation. Second. I think that the condition stated in the Secretary's letter attached as soon as the second loan was made. That, on the happening of that event, it no longer remained open and executory, subject to all the possible variations in price which might mark subsequent loans, until the whole twenty-five millions should be exhausted.

Third. I think that the owners of the previous stock, at the time the second loan was made, were the persons entitled to the additional stock for the difference between the price of the first and second loans.

Fourth. The answer to this question is embraced in the answer to the second question. The arguments from inconvenience are too

strong to have it supposed that it could have been the intention of the government to authorize successive and indefinite emissions of supplemental stock, until the entire loan, divided, perhaps, into several distinct portions, even after the second, should be completed. This view of the subject may serve to corroborate the propriety of the second answer, which treats the condition held out to the first lenders as having become absolute the moment the second loan was made. RICHARD RUSH,

WASHINGTON, October 22, 1814.

Attorney General.

Mr. Dallas takes the liberty of asking the Attorney General, in answer to the third question, to state to whom the supplemental stock must be issued at this time, as the Attorney General only states who were entitled to it on the 31st of August, when the second contract was formed.

OCTOBER 25, 1814.

Explanatory answer.

In answer to the third question, I have stated that the owners of the previous stock, at the time the second loan was made, were the persons entitled to the additional or supplemental stock for the difference between the price of the loans.

It must, therefore, be issued to them if they are still the owners of the first stock; but if they have passed it away, I think that the supplemental stock should be issued in favor of the present owners of the first stock, whoever they may be, to whom the beneficial condition has also passed by transfer. It is to be presumed that the market price of the first stock was affected by the second loan to the amount of the difference; and that each new transferee has taken the former under the expectation that such difference would ultimately be made good in his hands. This construction appears to me most congenial with the spirit of the contract, and most conducive to its convenient and practicable exccution. R. RUSH.

OCTOBER 25, 1814.

NOVEMBER 17, 1814.

The Secretary of the Treasury having further asked from what periods the supplemental stock should bear interest, I answer that I think interest ought to commence upon it from the dates respectively at which interest began to accrue upon the primary stock, to which the supplemental is the increase.

R. RUSH, Attorney General.

Circular to certain Commissioners of Loans.

TREASURY DEPARTMENT,

Comptroller's Office, November 30, 1814.

SIR: I enclose, for your information and government, a copy of a notification, bearing date this day, issued by the Secretary of the

Treasury, respecting additional stock to be issued to the subscribers, or those claiming under them, to the loan of ten millions of dollars of the 2d May, 1814.

The additional stock in question is to be issued to the persons holding, at the time of application for the additional stock, scrip certificates, or funded certificates of stock of the aforesaid loan of ten millions of dollars, and not to those who may have held the said certificates on the 31st of August last, the day on which a part of the loan for six millions of dollars was taken, unless they shall also hold them at the time of application for the additional stock.

The loan of 2d May, 1814, having been effected at the rate of one hundred dollars in stock for eighty-eight dollars in money, and the loan of August, 1814, having been made at the rate of one hundred dollars in stock for eighty dollars in money, the amount of additional stock which the holders of the stock of May, 1814, are entitled to receive is ten dollars on every hundred dollars of the stock they may now hold. The additional stock thus to be issued is, in conformity with the opinion of the Attorney General of the United States, to bear interest from the same day as the original stock to which it is an appendage. This fact will be ascertained from the face of the original certificate, in all cases where no dividend and transfer on it have been made and declared; and in cases where a dividend and transfer have been made and declared, by having recourse to the books of the treasury, or to those of the commissioner of loans where the dividend was declared. You will be pleased to take care that no mistakes be made in regard to the commencement of interest on the supplemental stock. Where the dividends have been declared on books other than those of your office, you will of course obtain a certificate of the fact, as to the time from which the stock originally bore interest, from the commissioner of loans on whose books the dividend may have been declared, or, if declared at the treasury, from the Register of the Treasury.

Persons possessing a general and regular power of attorney to transfer stock in the ten-million loan, and holding the stock, are to be considered as entitled to the additional stock; and where a power is produced, authorizing a transfer to a particular person, that person is to be considered as entitled to the additional stock. In every case where the supplemental stock may be applied for, and before it can be delivered, the original certificate in the hands of the party at the time of such application is to be surrendered to you and cancelled; and, in lieu of it, you will issue a new certificate for the same amount, entitled "funded six per cent. stock of 1814; loan of ten millions of dollars of the 2d May, 1814, on which the supplemental stock has issued," together with a separate certificate for the amount of the supplemental stock, entitled "supplemental funded six per cent. stock of 1814; loan of ten millions of dollars of 2d May, 1814."

On the original certificate, thus surrendered, there must be an assignment by the proprietor, or his attorney, agreeably to the forms herewith, marked B. You will perceive that the accounts of the old stock are to be closed on your books, and new accounts opened, corresponding with the alteration in the funded certificates hereafter to