To the honorable the Senate and House of Representatives in Congress assembled.

The memorial of Richard R. Ward, Fitz G. Halleck, and Jacob Little, of the City of New York, respectfully represents:

That your memorialists are assignees of the estate of Mr. Jacob Barker, of the said city, and that they feel it to be their duty to present to your consideration certain claims in favor of that estate against the government of the United States, the origin and character of which your memorialists will endeavor to explain with as much brevity. and clearness as the nature of the subject will permit.

On the 24th of March, 1814, Congress passed an act authorizing the President to borrow twenty-five millions of dollars for the use of the United States, without any restriction as to terms. By a previous act they had authorized the emission of treasury notes, limited at par; but, as those notes could not be negotiated upon such terms, the loan presented the only resource from which to supply the necessities of the nation. Fearing that an appeal to the moneyed men for the whole sum would alarm them to such a degree that little or no money would be offered, the Treasury Department announced, through the public papers, that ten millions thereof would be contracted for on the 2d of May, 1814, and invited proposals for the same.

On that day the Secretary of the Treasury, having been duly authorized by the President, on behalf of the United States, made a Rep. 1403

contract with Mr. Barker, who was then at Washington, and with sundry other persons, for portions of the ten million loan, the terms of which contract were as follows: "Eighty-eight dollars in money for each hundred dollars in stock; and the United States engage, if any part of the sum of twenty-five millions of dollars, authorized to be borrowed by the act of the 24th of March, 1814, is borrowed upon terms more favorable to the lenders, the benefit of the same terms shall be extended to the persons who may then hold the stock, or any part of it, issued for the present loan of ten millions." For the purpose of indicating more clearly the character of this transaction, and the obligations which arise from it, it may be useful to revert to the circumstances under which it occurred.

Congress had adjourned on the 25th of April, without providing other adequate means to meet the pressing wants of the nation. The treasury was empty; commercial restrictions and war had cut off nearly all the ordinary receipts of the customs. The spring campaign was about opening; our seaboard, as well as the whole line of our frontier, was hard pressed by a powerful enemy, whose fleets and armies the United States were, by the restoration of the Bourbons, left to combat singly. Nothing could be done without money. The Executive had received confidential letters from the American ministry in Europe, (or from one of them,) who were intrusted with the negotiation for peace, stating that the British ministry relied on the failure of our resources, and that there was no chance of obtaining peace on honorable terms, so long as that opinion lasted; and urging the necessity of dispelling those hopes of the enemy, by obtaining means to carry on another year's campaign, and thereby keeping up the appearance of abundant resources.

Mr. Barker being apprized how matters stood, offered to become an agent, or to be otherwise employed by the administration, as might be deemed most useful to his country. As he did not embark with any prospect of profit, he would have preferred an employment as the agent of government in those negotiations, even without salary or commission; but a contract was preferred by the administration, and was accordingly made upon the terms and with the condition before stated. To contract for the loan at 88, was, at that time, a great object with the government, as the previous loans had been obtained at about that rate, although the then market price of stock had fallen considerably below that rate.

That circumstance, and the possibility that future events might sink it still lower, rendered the condition absolutely necessary, and it was accordingly agreed on, in the words before quoted. At first its form was objected to by Mr. Barker, who endeavored to impress it upon the Secretary of the Treasury that it would be a very unpopular as well as injurious measure to all parties concerned, and suggested that the condition should be similar to that allowed by Mr. Gallatin to Messrs. Girard and others, to wit, exclusively for the benefit of the contractors. Mr. Barker urged, in favor of this course, that it would be for the interest of the contractors to sustain the price of stock, as they had to raise money to enable them to fulfil their contracts by a sale of the stock, or by hypothecating it as a security to money lend

ers; and if they allowed it to be run down, they could not raise money on it either by a sale or by hypothecation.

And as there was no certainty that more favorable terms would be allowed for any part of the said loan, a positive evil would happen if the stocks became depressed for a remote and uncertain prospect of gain. Not so with those who only invested their money, and who were expected to be the holders when the more favorable terms might be allowed; as they would not wish to sell or raise money on the security of the stock, no injury would accrue to them by a depression, but it would increase their chances for greater benefit from the condi

tion.

The Secretary of the Treasury, however, thought otherwise, and that giving the benefit of the condition to those who might hold the stock, when more favorable terms should be allowed, would be more likely to induce those whose funds were, by the operation of the war, released from commercial employment, to invest the same in this particular stock, and thereby enable the contractors to fulfil their engagements, which, he feared, they would not otherwise be able to do.

It was, therefore, concluded that Mr. Barker would best aid the operations of the administration, and most effectually serve his country, by offering proposals for a large portion of the ten million loan, upon the above-mentioned terms; and he accordingly determined to take

that course.

The 2d of May arrived, and but for Mr. Barker's proposal the loan for the ten millions would have failed, as will appear by reference to the report of the Secretary of the Treasury, dated on the 23d of September, 1814; offers for a part only being made, and some of them being as low as seventy-five dollars money for one hundred dollars stock.

Mr. Barker's first object, after he contracted for the loan of May, 1814, being to get the money, that he might be enabled to relieve the distresses of the nation, he offered to the moneyed men, in all our principal cities, any share they might desire of his contract, on the same terms allowed by the government, and without the least benefit to himself; but, although he made these offers in all the principal places in the Union, scarce a man could be found willing to share with him in the hazards of that contract.

All agreed that he had made a very bad bargain; at the same time, however, they offered him the money on other terms, which they supposed better for themselves, and which he was obliged to comply with in order to fulfil his engagement with the government.

Notwithstanding all these discouraging circumstances, the exertions of Mr. Barker were unremitting, and he succeeded in raising funds far beyond the expectations of those who were in the least acquainted with the money market; indeed, so active were his exertions, and so signal his success, that he paid into the treasury, during the war, in specie, or its equivalent, more than five millions of dollars. To do this, he was obliged to transfer or hypothecate the stock received from government, and to furnish security to a very great amount in addition to such stock. With the City Bank (New York) he deposited fifty thousand dollars in cash, to remain a year as collateral security,