CHAPTER III.

Resolutions, Ordinances, and Acts of the old and new Governments relating to the Settlement of the Accounts between the United States and the several States.

[1787, May 7.]

An Ordinance for settling the accounts between the United States and individual States. - Be it ordained by the United States in Congress assembled, That five commissioners be appointed by the board of treasury, whose duty it shall be to go to the several States in the districts hereafter mentioned, for which they may be respectively appointed, for the purpose of stating the accounts of the States within those districts, against the United States.

That the States of New Hampshire, Massachusetts, Connecticut, and Rhode Island, form one district. That the States of New York and New Jersey form one district. That the States of Pennsylvania, Delaware, and Maryland, form one district. That the States of Virginia and North Carolina form one district. And that the States of South Carolina and Georgia form one district.

That it shall be the duty of the said commissioners respectively to receive of the States for which they are appointed, all their accounts and vouchers for payments made on account of bounties, pay, and depreciation of pay, to the late army of the United States; and for advances to the militia called out under the authority of the United States, and actually in their service; and to give descriptive acknowledgments thereof to the States from which they may be received; which accounts and vouchers shall be immediately forwarded to the commissioner of army accounts, whose duty it shall be to examine and pass such as are authorized by the resolves of Congress, and supported by proper vouchers; and to state such as may not fall under the above description, together with such remarks as may tend to elucidate the nature of these claims.

That it shall further be the duty of the said commissioners to receive in like manner the accounts and vouchers for money paid, and supplies furnished on the requisitions of Congress, made previously to October, 1781; and to forward the same to the office of the Comptroller of the Treasury.

That it shall also be the duty of the said commissioners to receive and examine all the claims of the States to which they are appointed, against the United States, for advances or disbursements by them made for the use of the late commissary, quartermaster, clothing, marine, and hospital departments, or under any other description whatsoever; to pass upon all such as are authorized by the resolves of Congress, and supported by proper vouchers, so far as it respects the evidence offered in support of the said claims; and to state such as are not thus warranted or supported, together with such remarks as may explain the nature of these accounts, and the reasons offered for the deficiency of vouchers.

And be it further ordained by the authority aforesaid, That on all the accounts aforesaid, interest shall be allowed at the rate of six per cent. per annum, agreeably to the resolves of Congress.

And whereas it is essential to the welfare of the confederacy, that the accounts of the several States should be speedily adjusted; that this adjustment should be effected on uniform principles; and that provision should be made for allowing such advances or disbursements as may have been made by the respective States for the use of the Union, although the same be not sanctioned by the resolves of Congress, or supported by regular vouchers :

Be it therefore ordained, That the several States be, and they are hereby, limited to the space of six months for exhibiting to the proper commissioner their claims against the United States, of whatever nature the same may be; and that such States as may neglect to exhibit the same within that period of time, after the commissioner has notified to the supreme Executive thereof that he is ready to proceed on the business of his commission, shall be precluded from any future allowance; but shall nevertheless stand chargeable with all advances of money or other articles which may have been made to them respectively by the United States, and with whatever balances may be yet due on their several quotas of the general requisitions.

And be it further ordained, That the said commissioners of districts shall, within twelve months after they enter on the duties of their several appointments, repair to the place where the United States in Congress may hold their sessions, with such accounts and vouchers as they may have in possession, and deliver the same to the Comptroller of the Treasury; on which their commission shall terminate.

Be it further ordained, That a board, consisting of three commissioners, be appointed by the United States in Congress assembled, whose duty it shall be to receive from the Comptroller of the Treasury, and from the commissioner of army accounts, all the accounts and claims of the several States deposited in their respective offices, and to examine such of the said accounts as shall have been passed by the commissioners of the several districts, in order that the same may be finally adjusted on uniform and equitable principles, having reference to the settlement of accounts heretofore made by the commissioners of the different States: Provided, That such revision of the accounts above mentioned shall not in anywise affect the validity of the vouchers admitted by the commissioners of the respective districts.

And be it further ordained, That wherever it shall appear to the said board of commissioners that advances or disbursements, payments or supplies, of the description aforesaid, have been made by any of the States subsequent to the 18th of April, 1775, for articles or services for the use of the United States, that the said commissioners be, and they are hereby vested with full power and authority to make such allowance for the same as they shall think consistent with the principles of general equity, although such advances or disbursements may not be sanctioned by the resolves of Congress, or supported by regular vouchers, so as to enable the said commissioners to make a final adjustment of all the accounts subsisting between the United States and the several members thereof, agreeably to such quota as Congress shall hereafter determine.

And be it further ordained, That a determination of a majority of the aforesaid board of commissioners on the claims submitted to them shall be final and conclusive; and that their commission shall continue in force

for one year and a half from the time of their entering on the duties of their office, unless sooner revoked by Congress.

And be it further ordained, That the ordinance of the 13th of October, 1786, entitled "An ordinance for establishing a board to liquidate and settle all accounts between the United States and individual States," be, and it is hereby, repealed.

[1788, June 24.]

By a resolution of this date, the several States were allowed three months, in addition to the time limited by the aforegoing ordinance, for exhibiting to the district commissioners their respective accounts against the United States; and they were, at the same time, authorized to transmit to the accountant of the treasury, the commissioner of army accounts, and to the general board of commissioners to be appointed in pursuance of the ordinance aforesaid, such additional vouchers or other testimony as they might think necessary to support any claims by them exhibited to the respective officers aforesaid; provided the same be transmitted at least six months previous to the termination of the office of the general board, as fixed by the ordinance aforesaid.

[1788, October 10.]

By the resolve of this date, the board of commissioners appointed pursuant to the ordinance of the 7th May, 1787, were restrained from entering upon the business of their appointment, or finally determining any matter to them referred by the said ordinance, unless all three of the said commissioners shall be present.

An Act to provide more effectually for the settlement of the accounts between the United States and the individual States.

Sec. 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That a board to consist of three commissioners be, and hereby is established, to settle the accounts between the United States and the individual States; and the determination of a majority of the said commissioners on the claims submitted to them shall be final and conclusive; and they shall have power to employ such number of clerks as they may find necessary.

Sec. 2. And be it further enacted, That the said commissioners shall, respectively, take an oath or affirmation before the Chief Justice of the United States, or one of the associate or district judges, that they will faithfully and impartially execute the duties of their office; and they shall, each of them, be entitled to receive at the rate of two thousand two hundred and fifty dollars per annum, payable quarter-yearly, at the Treasury of the United States, for their respective services.

Sec. 3. And be it further enacted, That it shall be the duty of the said commissioners to receive and examine all claims which shall be exhibited to them before the first day of July, one thousand seven hundred and ninety-one, and to determine on all such as shall have accrued for the general or particular defence during the war, and on the evidence thereof, according to the principles of general equity, (although such claims may not be sanctioned by the resolves of Congress, or supported by regular

vouchers,) so as to provide for the final settlement of all accounts between the United States and the States individually; but no evidence of a claim heretofore admitted by a commissioner of the United States for any State or district shall be subject to such examination, nor shall the claim of any citizen be admitted as a charge against the United States in the account of any State, unless the same was allowed by such State before the twentyfourth day of September, one thousand seven hundred and eighty-eight.

Sec. 4. And be it further enacted, That it shall be the duty of the said commissioners to examine and liquidate to specie value, on principles of equity, the credits and debits of the States already on the books of the Treasury, for bills of credit subsequent to the eighteenth of March, one thousand seven hundred and eighty.

Sec. 5. And be it further enacted, That the commissioners shall debit each State with all advances which have been or may be made to it by the United States, and with the interest thereon, to the last day of the year one thousand seven hundred and eighty-nine, and shall credit each State for its disbursements and advances on the principles contained in the third section of this act, with interest to the day aforesaid; and having struck the balance due to each State, shall find the aggregate of all the balances, which aggregate shall be apportioned between the States, agreeably to. the rule hereinafter given; and the difference between such apportionments, and the respective balances, shall be carried, in a new account, to the debit or credit of the States respectively, as the case may be.

Sec. 6. And be it further enacted, That the rule for apportioning to the States the aggregate of the balances first mentioned, shall be the same that is prescribed by the constitution of the United States for the apportionment of representation and direct taxes, and according to the first enumeration which shall be made.

Sec. 7. And be it further enacted, That the States who shall have balances placed to their credit on the books of the Treasury of the United States, shall, within twelve months after the same shall have been so credited, be entitled to have the same funded upon the same terms with the other part of the domestic debt of the United States; but the balances so credited to any State shall not be transferable.

Sec. 8. And be it further enacted, That the clerks employed, or to be employed, by the said commissioners, shall receive like salaries as clerks employed in the Treasury Department.

Sec. 9. And be it further enacted, That the powers of the said commissioners shall continue until the first day of July, one thousand seven hundred and ninety-two, unless the business shall be sooner accomplished. Approved August 5, 1790.

An Act to extend the time limited for settling the accounts of the United States with the individual States.

Sec. 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the powers of the board of commissioners, which, by an act passed in the second session of the first Congress, was established to settle the accounts between the United States and individual States, shall continue until the first day of July, one thousand seven hundred and ninety-three, unless the busi-. ness shall be sooner accomplished.

Sec. 2. And be it further enacted, That the aforesaid act shall extend to the settlement of the accounts between the United States and the State of Vermont, and that until the first day of December next shall be allowed for the said State to exhibit its claims.

Sec. 3. And be it further enacted, That from and after the passing of this act, the pay of the principal clerk of the said board shall be the same as the pay of the principal clerk in the Auditor's office.

Approved January 23, 1792.

An Act in addition to, and alteration of, the act entitled “An act to extend the time limited for settling the accounts of the United States with the individual States."

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the second section of the act entitled "An act to extend the time limited for settling the accounts of the United States with the individual States," which extended the powers of the board of commissioners to the settlement of the accounts between the United States and the State of Vermont, be, and hereby is, repealed.

Sec. 2. And be it further enacted, That the board of commissioners established to settle the accounts between the United States and the individual States, in apportioning the aggregate of all the balances due to each State, between the States, agreeably to the act entitled "An act o provide more effectually for the settlement of the accounts between the United States and the individual States," shall have no regard to the State of Vermont.

Sec. 3. And be it further enacted, That, in the apportioning of the balances aforesaid, the State of Kentucky shall be deemed to be included in the State of Virginia, the admission of the said State of Kentucky as a member of the Union' notwithstanding.

Approved February 27, 1793.

Copy of the Commissioners' letter to the President of the United States. OFFICE OF ACCOUNTS, June 29, 1793. SIR: We have the honor to submit to you the enclosed report upon the claims of the several States against the United States.

The difficulties we had to encounter, owing to the magnitude, intricacy, complexity, and variety of the claims, have been numerous. These, added to the loss of papers and other accidents, together with the peculiar nature of some of them, and the variety of paper which circulated during the war, have rendered it impracticable for us to follow with such minute precision the several charges, as might be expected in the settlement of the concerns of individuals.

We conceived that a speedy adjustment, having substantial justice for its basis, would best promote the end for which we were appointed; we have therefore used our utmost endeavors to effect it, and we trust that the principles upon which we have proceeded, considered as a system, will in as great a degree produce the thing aimed at as could be done by