New york June 8th. 1787
Sir.1
I have to ask pardon for my omission in writing last week, and now beg leave to reply to your letters of the 19h & 28h of May.2
The first relates to the detention of the indents for 86 & 87.3 We feel very much distressed to know that our country is groaning under injurys, which we have no opportunity to attempt to releive her from. The remedy being solely in Congress and that body being for the present out of session. The board of treasury are merely executive, and dare not exercise the power of altering resolutions committed to their conduct.
The scheme of indents originated for the purpose of enabling the public to discharge the interest of the domestic debt, & is marked by three conditions which seem clearly to explain the natural operation & effect of this branch of the revenue system - viz - That indents shall be issued only to such state or states as may have passed the requisition, providing for its payment, adequate funds - That the payment of indents shall be in proportion to the payment of specie, & that they shall be receivable only in discharge of the requisition of the year, to which they were allotted.
From the first condition it follows that indents cannot be issued to any state whose compliance with the requisition is not substantial and effective. If then the act of the Legislature of Virginia passed in the last session, is only a compliance in name, the board of treasury are bound to withhold the indents for the present year.
If on the contrary the compliance is effective, the board has criminally neglected their duty, & deeply injured the state. The act of the assembly has been laid before congress, & will be the subject of their deliberation as soon as they re-assemble. Certain it is that our country has been grossly injured, & that the injury is attributable either to the Legislature, or to the board of treasury.
The detention of the indents for the year '86 is authorized by the last of the three recited conditions, for the receipt of indents issued on the requisition of the 27h Septr. 85 is only admissible in payment of the taxes of that year & in the specified ballances stated in the resolve of the 12h Oct. of the same year, it being a fundamental principle of the revenue system that distinct appropriations shall be established for the redemption of indents issued on distinct requisitions.
The letr. of the 28h respects the pay of the third commissioner appointed in conformity to the resolve of Congress for adjusting the claims of Virginia against the union, for moneys expended and services performed in the conquest & protection of the western territory. We communicated the purport of this letr. to the board of treasury, who in compliance with our wishes have been pleased to issue their order for two hundred dollars, in favor of the commissioner, determining to unite with the state in advances of money to this officer, untill the decision of Congress shall be had on the subject. This we trust will prevent any interruption in the concluding a business, which has already too long been neglected.
I have the honor to be sir, with great respect & regard your most obt
Henry Lee Junr.
Receiver's copy, Continental Congress Papers, Library of Virginia. Addressed: "The honl. B. Randolph esqr."
1 Randolph (1754 - 1797) was president of the Virginia executive council and presided as lieutenant governor in the absence of Gov. Edmund Randolph who was attending the Philadelphia Convention. See Journals of the Virginia Council, 4:107.
2 Not in PCC.
3 For an explanation of this "detention," see Virginia Delegates to Edmund Randolph, February 26, note 1.