TWENTY-NINTH CONGRESS, 1845-47. 437 



made by him was paid over to the United States. The 

 money, under the action of Congress, was loaned out to 

 certain States. JSTo matter for what purpose that fund 

 might be dedicated, the faith and the honor of the country, 

 by the action of Congress, were pledged to regard it at all 

 times as being in the Treasury of the United States ; and 

 the United States was in tact itself a creditor of the States 

 to^vhom the money was loaned; so that the Arkansas, or 

 Michigan, or Illinois bonds or securities or the securities 

 of any State to which this money had been 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. MCCLELLAND here rose to explain, and (Mr. SIMS 

 yielding) Mr. McClelland said that a misapprehension pre- 

 vailed in the committee as to the payment 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 ; arid from the report of the Secretary of the 

 Treasury, it appeared that the amount claimed to be due on 

 the 1st of January last was $181.07 ; and this had, in all 

 probability, been more than paid by the application of the 

 five per cent, fund up to this period. In June, 1845, the 

 then auditor-general of the State of Michigan endeavored 

 to obtain a statement of this account, and the five 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. McClel- 

 land) 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 informa- 

 tion, but did not receive any reply until the 27th of Febru- 

 ary, and then he was advised that the small amount before 

 stated was due. This statement he had forwarded to the pres- 

 ent auditor-general. He (Mr. McClelland) had no doubt pro- 

 vision would be made for the prompt payment of the interest 

 hereafter to accrue if the five per cent, fund was found to 

 be insufficient. Whilst up, he would state that the authori- 

 ties of Michigan had consented to the application of the 

 five 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 Com- 

 mittee of Ways and Means [Mr. McKAY] before it was 

 offered, and was fully approved of by him, and was sup- 

 ported by the entire delegation from Michigan in both 

 Houses. In conclusion, he would say, that he believed the 



