Unknown & Unique 1804 United States Loan Office 5.5% Interest One Hundred Dollars Printed Certificate Anderson Unlisted, to “the Selectman of the Town of Medford” MA.
(March 3, 1795 Congressional Funding Act), March 13, 1804-Dated Federal Period. United States Loan-Office Certificate. State of Massachusetts. Fixed Amount Printed at “One Hundred Dollars.” Made to: “the Selectman of the Town of Medford (Massachusetts),” Issued “from the first day of January 1804, Bearing Interest at FIVE AND AN HALF per centum per annum,” Hessler X55, Anderson US 211, Unknown to Exist and Not Imaged, Very Fine.
Anderson US Unlisted. This $100 Denomination, Text and Design Type Unknown and Unrecorded in William G. Anderson’s reference book titled, “THE PRICE OF LIBERTY - The Public Debt of the American Revolution”. Listed by Gene Hessler as: “X55, ACT of March 3, 1795, Section 2, Final redemption March 31, 1815, Payable Quarterly, Time redeemable term, (Authorized purpose) An amount equal to the total foreign debt, Amount $1,848,900.” not illustrated on page 71 of his reference book titled, “An Illustrated History of U.S. Loans,” described with the text only, as taken from his research of congressional records for the original authorization Act. Somewhat close in design to Anderson US-211 having different typeset denomination, text, and other design elements, (also considered Unique, Rarity-8, Not Imaged). We have never before seen 5.5 Percent Interest Bearing Certificate, regardless of its distinct typeset denomination and other significant differences to this current form.
This Partially-Printed Typeset Certificate is impressive. It measures 11.5” x 4.75” having four full large margins and overall nice centering. The engraved vignette of the Great Seal of the United States with boughs (a main branch of a tree) is displayed over the Federal Heraldic American Eagle at upper left. This Certificate was issued for the loan of funds to pay off the remaining French owed and Foreign debts from the American Revolutionary War. Printed denomination of “One Hundred Dollars.” plus “100 Dollars.” are defined in print at the lower left. Text reading, “payable quarter-yearly, subject to redemption” at a very rarely seen 5.5 Percent Interest are also typeset in bold black print. Complete, with a decorative outer border design surrounds. The decorative left margin with inner small text reading, “ONE HUNDRED DOLLAR(S)” and the right margin border with inner small text reading, “FIVE AND AN HALF PERCENT.” Boldly Signed in deep brown ink by “Thomas Atkins” as Commissioner., at bottom right. Previous clear tape reinforcements located along a split at the centerfold with trivial overlap of the paper. There is some slight show-through to the face side, with other scattered fold split and minor internal and marginal repairs from the blank reverse side that cause partial obscuring of reverse side docket near center. The reverse has written notations as follows:
“Caleb Brooks, Sam’l Bud & Benjamin Tufts Selectmen of Medford (forth)with Named do for value received assign and Transfer the within Dept. to Thomas Tudor Tucker Treasurer of the United States in trust for Said State. -- Witness our Hands at the United States Loan Office --- this Eighth Day of January - (Signed) Caleb Brooks - Saml Bud - Benja. Tufts”.
Unique, Previously Unknown and an important “Discovery” missing in all United States Fiscal related collections of the funding of Public Debt through United States Government issues of Loan Debt instruments. A Unique opportunity.
Under the U.S. Constitution of 1789, the new federal government enjoyed increased authority to manage U.S. finances and to raise revenues through taxation. Responsibility for managing debts fell to Secretary of the Treasury Alexander Hamilton.
Hamilton placed U.S. finances on firmer ground, allowing for the U.S. Government to negotiate new loans at lower interest rates. In addition, the United States began to make regular payments on in its French debts starting in 1790, and also provided an emergency advance to assist the French in addressing the 1791 Slave revolt that began the Haitian Revolution.
Although the federal government was able to resume debt payments, total federal expenditures exceeded revenues during many years in the 1790s. Alexander Hamilton therefore sought additional loans on Dutch capital markets, although the improved U.S. financial situation made these loans easier to obtain. These private loans from Dutch bankers also helped pay off loans owed to the Spanish Government, back pay owed to foreign officers, and U.S. diplomatic expenses in Europe.
In 1795, the United States was finally able to settle its debts with the French Government with the help of James Swan, an American banker who privately assumed French debts at a slightly higher interest rate. Swan then resold these debts at a profit on domestic U.S. markets. The United States no longer owed money to foreign governments, although it continued to owe money to private investors both in the United States and in Europe.
Although U.S. finances had been shaky under the Articles of Confederation, the United States was able to place itself on a sound financial footing during the 1790s. This enabled it to preempt diplomatic embarrassment and dependence on foreign powers during that period, and also improved U.S. credit on European capital markets, which enabled the U.S. Government to obtain low-interest loans for the Louisiana Purchase in 1803.