Richard Henry Lee to Edmund Randolph

By a letter and some enclosures (lately received by the Delegates) from our Executive; it appears that in May last our Treasurer tendered Mr. Hopkins² Indents for something more than 170,000 dollars upon the requisition of 1786 - That he refused to receive them because they were not accompanied with the proper proportion of specie. By the requisition of Congress, the Loan Officers are expressly bound to do so. In consequence of that refusal, it seems, those indents have remained at our risk, and we continue on the Federal books as delinquent for the large sum of 1,425,767.77 dollars. But I think Sir it will be seen, by investigating this subject with attention, that not only the above sum tenderd and refused, but whatever indents may since have been in the Treasury (and it is probable that by this time a further large sum has been paid in) maybe paid to Mr. Hopkins consistently with the acts of Congress, and thereby be removed from our risk, besides lessening the large ballance that now appears against us. Of the several requisitions heretofore made by Congress, none remain at this time to be considered but that of the 4th & 10th of September 1782, and the three subsequent ones of 1784, 1785, & 1786. The first of these was for 1,200,000 dollars for paying interest on the domestic debt. Of this requisition Virginia was quota'd 174,000 dollars, and she was at liberty to apply as much as should be necessary of that sum to discharge the interest of Continental Loan Office certificates, or of Liquidated debts of the U. States due in the State. Virginia stands on the Treasury book here as having paid of this requisition, nothing.

The next in order is the requisition of 1784, where the quota assigned to Virginia is 538,693.47 dollars & ninetieths; of which sum, one fourth part or 134,673.34 dollars might be paid in Certificates of interest by the terms of the requisition: And by a resolve of Congress October the 12th 1785 page 356 of the Journal,³ the Indents issued under the requisition of 1785 may be paid for the whole of the above sum of 134,673.34 dollars, or one fourth of the said requisition of 1784. Of this requisition Virginia has paid 407,511.30 in Specie, and 38,231.25 Indents. By which mode of payment she has paid more of specie than was required by 3,491.17 dollars, and less of Indents than she might, by 96,442.9 dollars. The question now is, whether it will not be advisable to pay Mr. Hopkins Indents to the amount of 96,442.9 dollars and so close the requisition of 1784 completely? Having done this, and sent forward the Account so settled, with the Loan Officers receipt for the 96,442.9 dollars, Virginia will stand on the Treasury books here as having overpaid the requisition of 1784 by 3,491.17 specie dollars. But, at the same time that this account shall be transmitted, notice to the Treasury-board of the Union might accompany it stating, that the above 3,491.17 specie dollars would be carried to the States credit upon the specie requisition of 1785. This will cover two thirds of the sum in Indents agreably to the requisition of 1785. The ballance of all the indents in the possession of our Treasurer above what shall be necessary to close the requisition of 1784, may either be applied, without specie, to satisfy the requisition of Septr. 1782; or they may go (as the Executive shall choose) to the requisition of 1785 which requisition (see journal of Congress Septr. 27th 1785 Page 310) quotas Virginia to 512,974 dollars.⁴ Of which sum, two thirds on 341,983 dollars may be paid in Indents, if accompanied by one third, or 170,991 specie dollars. Of this requisition Virginia is credited with sundry specie payments amounting in the whole to 51,596.71 dollars; but she is only credited for having paid 19,095.10 Indents, altho the above sum of specie will warrant the payment of 103,193.52 Indents exclusive of the ballance of 3,441 dollars specie overpaid of the 84 requisition. And this is the more surprising, as it is stated in one of the enclosures from the Executive as before observed, that more than 170,000 dollars of Indents had been, in May last, tender'd to, and refused by Mr. Hopkins. His refusal could only have been founded on these Indents being offered for the requisition of 1786, which could not have been so receivd. unaccompanied with the proportion of specie that is directed by the said requisition. Whereas, if those Indents, on a much larger sum of them had been offered upon the requisitions of 1782, 1784 & 1785 they might have been received on Congressional principles, and the State credited therewith. For, if this business had been transacted as is here stated, instead of being credited only for 51,596.71 specie dollars & 19,095.10 Indents upon the requisition of 1785; our credit would be for 55,087.71 specie dollars & 10,175.52 Indents without dispute with the Loan Officer. Proceeding in this manner, there will still be a large ballance due from Virginia to the U. States on the requisition of 1785 - the same being of Indents 231,807.38 and of specie 115,903.2 - Which being added to the requisition of 1782 for 174,000, and the requisition of 1786 which remains

(after deducting 493 dollars paid upon this requisition) 645,350 dollars; and will make the whole of our debt upon the several requisitions of 82, 84, 85 & 86 equal to 1,167,060.57 dollars specie & Indents inclusive - Which is 258,707.20 dollars less than we now stand charged on the books of the federal treasury, where the sum stated, is 1,425,767.77 dollars as mentioned in the first part of this letter. The difference may arise from our Indents not having been paid, and from a mistake of Office here, in charging us with our full share of the half of 8 millions required in Octr. 1781, without deducting the payments made previous to the requisition of 1784 as Congress has done. See the Journal 27 April 1784.⁵ Before I quit this subject, permit me Sir to observe that only so many Indents as were in the Treasury on or before the 1st of Jany. 1787 can be paid on the requisition of 1785 as is directed by that requisition - So that 130,654 Indents (the sum in the Treasury of the State on the 1st of Jany. last) should be appropriated to the requisition of 1785, and the ballance, whatever it may be, already paid in; may be applied as hath been already mentioned. Pardon me Sir for the long letter that I have written. My only motive being to remove existing doubts, and to prevent such in future as I see are productive of public inconveniences. The account that I have stated will more concisely place in view the ideas herein contended for than could easily be done in writing.

I am happy to hear that your business in Convention is near a close. You have had a hard time of it - And I hope you will be rewarded with the thanks of this and future generations.

I have the honor to be, with all possible respect and esteem, dear Sir Your affectionate and obedient servant,

Richard Henry Lee.