TWENTY-NINTH CONGRESS, 1845-1847. 395 



loaned were in fact debts due to the General Government; and the 

 fund itself must be regarded as in the Treasury of the United States. 



Mr. 11. MCCLELLAND here rose to explain, and (Mr. Sims yielding) 

 said that a misapprehension prevailed in the committee as to the pay- 

 ment of the interest by the State of Michigan on that portion of the 

 Smithsonian fund invested in the bonds of that State. He considered 

 this interest paid; and from the report of the Secretary of the Treas- 

 ury it appeared that the amount claimed to be due on the 1st of Janu- 

 ary last was $181.07; and this had, in all probability ^ been more than 

 paid by the application of the 5 per cent fund up to this period. In 

 June, 1845, the then auditor-general of the State of Michigan endeav- 

 ored to obtain a statement of this account and the 5 per cent fund, 

 in order to make provision for the payment of any balance that might 

 be found due, but failed. On the 7th of November last he wrote and 

 requested him (Mr. McClelland) to make the necessary inquiries with 

 the same view; and soon after his arrival, at the commencement of 

 this session, he wrote to the proper department for the required infor- 

 mation, but did not receive any reply until the 27th of February, and 

 then he was advised that the small amount before stated was due. 

 This statement he had forwarded to the present auditor-general. He 

 (Mr. McClelland) had no doubt provision would be made for the 

 prompt payment of the interest hereafter to accrue if the 5 per cent 

 fund was found to be insufficient. While up, he would state that the 

 authorities of Michigan had consented to the application of the 5 

 per cent fund to the payment of this interest, and that the resolution 

 passed by the last Congress, directing this application, was shown to 

 him by the chairman of the Committee of Ways and Means [Mr. 

 M -Kay] before it was offered, and was fully approved of by him, and 

 was supported by the entire delegation from Michigan in both Houses. 

 In conclusion, he would say that he believed the State would make 

 every effort to pay all just claims against it, and in regard to this 

 fund would at all times pay the interest fairly and honorably. 



Mr. SIMS continued. He had not intended, he said, by any remark he 

 had made to inculpate any State to which this fund might have been 

 loaned. He merely wished to show what the duty and the obligation 

 of the Government were in regard to the fund itself. Whatever dis- 

 position might finally be made of it whether an institution such as 

 was contemplated should be established; whether the fund should be 

 returned to the British chancery, or whether it should be distributed 

 among the heirs of Smithson no difficulty ought to arise as to the 

 fact of the fund itself having been loaned out by the Government; 

 and that, for all honorable, practical, and proper purposes, it must be 

 regarded in good faith as in the Treasury of the United States, to 

 be devoted to whatever purpose might be thought proper. For his 

 own part, he had no apprehension or fear but what each of the States 



