14 The Financial History of Connecticut. 



was made (section 13) for a loan of $21,500,000, which was to be sub- 

 scribed for "in the principal and interest of the certificates or notes" 

 which, prior to January 1, 1790, had been issued by the states as 

 acknowledgments or evidences of debt, provided those certificates 

 had been issued for "expenditures for services or supplies towards 

 the prosecution of the late war." Each state was allowed to subscribe 

 for a specified portion of this loan and the amount allotted to Connecti- 

 cut was 480,000 pounds^ or $1,600,000.^ For each state a commis- 

 sioner of loans was appointed to receive the state certificates present- 

 ed in payment for subscriptions to the federal loan and to issue to 

 the subscribers new certificates according to the following method: 

 four-ninths of the sum received for a subscription was to be exchanged 

 for a certificate bearing six per cent interest annually, the interest 

 payable quarterly, and the entire amount payable in any one year 

 for interest and redemption not to exceed eight per cent of the face 

 value of the certificate ; two-ninths of the sum received was to be 

 exchanged for a certificate bearing six per cent interest annually 

 after the year 1800, with the interest and the principal payable as 

 above ; and the remaining one-third to be exchanged for a certificate 

 bearing three per cent interest annually, said interest payable quar- 

 terly, subject to redemption by payment of the sum specified therein 

 at the will of congress (Section 15). To ascertain the interest due on 

 the different evidences of state debt, the interest was to be computed 

 to December 31, 1791, and interest upon the stock created by this 

 act was to begin on January 1, 1792 (Section 16). The time for open- 

 ing the loan was set at October 1, 1790, and the books were to be 

 closed at the expiration of one year (Section 3). The act also pro- 

 vided that if the full amount allotted to any state were not subscribed 

 within the prescribed time, the United States would pay to that 

 state, upon the terms already described, interest upon the unsub- 

 scribed portion of the loan (Section 17). 



At the end of the period for subscription to the United States debt 

 in evidences of state debt £46,060 9s. Id. of the £480,000 allotted 

 to Connecticut remained unsubscribed.^ The state received from the 

 commissioner of loans, William Imlay, the first quarter's interest 



1 Compt. Report (Ms.), Oct. 1790. 



2 Compt. Report (M?.), Oct. 1790; Acts of Congress, chap. 34, sec. 13. 

 Note. In all the reports of this period, whenever the old and the new systems 

 of money notation are used together, the ratio of the pound to the dollar is 

 always three and one-third to one. 



3 Compt. Report (Ms.), May 1793, p. 3i 



