JOURNAL OF EXECUTIVE COMMITTEE. 443 



fund, to the amount of $240,000, or for United States stocks in its stead, with a view 

 of putting that amount on interest until it shall be wanted for building purposes, &c., 

 reached me at this city, not until last evening, or it should have received an earlier 

 answer. 



I appreciate the motive of the Executive Committee, and would most cheerfully 

 unite with them in asking for the money, did I believe the act incorporating the In- 

 stitution authorized such application ; but I cannot give it any such interpretation. 

 It provides, that the money may be drawn from the Treasury upon the certificate of 

 the Chancellor and Secretary, that it is wanted for payment in erecting buildings 

 and other incidental expenses of the Institution, but not for the purpose of being 

 loaned, &c. And should an application be made for it to the Secretary of the Treas- 

 ury, this, I presume, would be the objection with which you would be met. If, how- 

 ever, it shall be ascertained that the Secretary will give us the money, or stocks in its 

 stead, then I most cheerfully join you in an application for it. 



I am, sir, with esteem, your obedient servant, 



WILLIAM J. HOUGH. 



"W. W. Seaton, Esq. 



Harrisonburg, September 20, 1846. 



Sir: I have just received yours of the 12th instant, post-marked the 18th, and I 

 hasten to answer it, as you request me to do. 



I concur with you fully, that it would be very desirable that interest should accrue 

 on the $240,000 of which you speak, until it should be wanted for the purposes of the 

 act ; but I am sorry to say, that I have not been able to satisfy myself, as you have 

 done, that " we have now the right to draw out of the Treasury the whole of the 

 $242,129, and purchase with it United States stocks," &c. Nor have I been able to 

 satisfy myself that it would be competent for the Secretary of the Treasury to issue 

 United States stocks, for the sum you mention, bearing interest. You may be right, 

 and I may be wrong, but these doubts are entertained ; and I consider myself bound 

 frankly to say so to you. By your leave I will state my reasons for those doubts. 



In the first place, then, it appears to me, that the fund, of which we are speaking, 

 can be drawn from the Treasury only for the purposes mentioned in the act, and be 

 applied only for those purposes. The last clause of the third section says : 



" Whenever the money is required for the payment of the debts or the performance 

 of the contracts of the Institution, or for making the purchases and executing the 

 objects authorized by this act, the Board of Kegents, &c, may certify to the Chan- 

 cellor, &c, that such sum is required ; whereupon, they shall examine the same, and, 

 if they shall approve thereof, shall certify the same to the proper officer of the Treas- 

 ury for payment," &c. 



This would seem to imply, that the fund could be drawn upon only whenever the 

 money was required to be paid out for the purposes just mentioned. The Govern- 

 ment intended to keep the money in its own hands, and not to pay it to the Kegents, 

 except for the purposes mentioned. If they could draw the money before it was ac- 

 tually wanted for the purposes mentioned, and buy United States stocks with it, "at 

 or near par," it can be imagined that the money might not be as safe as if it had re- 

 mained as the law had placed it. 



In the next place, I am not satisfied that the Secretary can issue the stocks of which 

 you speak. It appears to me, that Congress did not intend that the Government 

 should pay interest on the interest which had accumulated. If they had so intended 

 they would probably have said so. It must have been known to them that the whole 

 of the $242,129 could not be at once expended. Nay; they must have known that 

 it would take sometime to put up the buildings which would be the principal drain 

 on the sum in question. They, therefore, knew that a large portion of the sura 

 would remain in the Treasury for sometime unexpended. Why did they not then 

 declare that the unexpended balance should, after a certain period of time, bear inte- 

 rest, as the principal sum of $515,169 bears interest? Simply because, as it appears 

 to me, they did not intend it. 



This inference is strongly supported by the language of the act. The second sec- 

 tion seems to negative the idea, that there is to be paid interest upon interest. It de- 

 clares that the sum of $515,109 is "lent" to the Treasury "at six per centum per 

 annum interest," from the 1st of September, 1838, when the said sum was first re- 

 ceived into the Treasury. That is the sum that was "lent" and " at interest." 

 The $242,129 was not "lent," and therefore could draw no interest; but on the con- 

 trary, it was directly " apj>ropriatcd for the erection of suitable buildings," &c. 



