Richard Henry Lee to William Lee

I have this day received your two letters by Post with the Certificates, which, though I have not counted, I suppose to be right - The manœuvres concerning funding & assumption have been many and subtil - the latter had been frequently voted out in the H. of R. and a bill sent up for funding the Continental debts proper of the U.S. upon the 3 alternatives of the Secretary’s report - The assumption having been voted against unanimously by our Representatives - In the Senate we rejected the Secretary’s plan, funded the principal of Contl debt 2 thirds immediately at 6 pr Cent & the other third at same interest after 10 years - The whole Interest of this debt amounting to 13 millions was to be at 3 pr cent immediately - and directed the Fund to be kept a sacred deposit for sinking the principal - But - upon this, and in the same Bill, they, the Senate, assumed for State debts 21.500.000 dollars to be funded in fact on terms as good as the Continentals - This bill passed the Senate by a very small majority - say 2 -

It was generally supposed that the Assumption part of our Bill would be rejected by the H.R. but Mssr. R. B. Lee & White from our Country, with Gale & Dan’l Carroll from Maryland, changing sides, the Assumption was agreed to, and the Cont. interest upon interest raised to 4 pr cent - and 7 instead of 10 years proposed for funding the postponed third of the principal of the Continental debt at 6 pr cent - These latter amendments with respect to interest are now before the Senate - It seems probable that the whole will be agreed to, because the contenders (some of them) for low interest, are still greater Contenders for the Assumption; so that ’tis probable they will take the increased interest rather than hazard the loss of Assumption - you contend for 15 Shillings, if the debt is funded - Mr. Wm. Lee will take 12/ - My idea is, altho I give all possible credit to the prevailing & powerful interest of Speculators, yet, with the Assumption of 21,500,000 for State debts, with the other Mass, that more is undertaken than can be accomplished - so that if the certificates were mine I would take 12/ and run no further risk - A large Seller in the Broker way, tells me that finals are now 10/ and that if the bill passes they will be at 12/ but then they who purchase, will not allow anything for interest, since the issuing of indents ceased - Or, since there was any provision for paying interest made by Congress - perhaps they may alter if the bill should pass giving 4 pr. cent on all the interest presently - Thus have told you all that I know about the matter and you will, by return of post, give me your Ultimatum - Bank Stock, I understand is not easily to be purchased here, the regularly paid quarterly interest being 7 pr Cent - How it is at Phila - I do not know - I think it probable that we shall adjourn at the close of next week, i.e. the 6th of Aug., so that I must hear from you before that time - I enclose you a letter for Capt. Chilton whom I forgot, & who is certainly a very influential Man - My love to my friends.

Yours affectionately.

Richard Henry Lee