The Houses send to your Excellency the Sheme of the projected Loan, but in order to Leave you to Judge of it, that it agrees with one at 6 Per C: intrest, we need to hand your Excelly. the explication of it; but as it is a work of our invention, we find not proper to give the explication of it to our neighbours, and we pray there fore to keep it Secreted, the more as they comprehend it against 6 Per C:, but you’ll reflect that a ballance of ƒ47844:14. is Safed, whch. we regulated also, in order to fund Largely out of it, the higher allowance of 6 instead of 4 1/2 Per C: premium for the charges.

Your Excellency’ll be pleased to reflect, that by the principal of two millions yearly is added 6 Per Ct. intrest, whch. wanted to be payed in case it was plainly to be negotiated at that term, and is yearly deducted the 4 Per C: intrest, whch. now in reality is payed, the amount intrest whch. the 2 Per C: we pay less, saves, compose the prices to be drawn in obl: at 4 Per C: intrest from 1785 to 1797, and the gratifications promised at the redeeming, so you’ll reflect that every year that sums become redeamable, we deduct the principal sum only of the first colom, and the Sum with the 10 gratifications of the secd: colom, whch. enjoys then a ballance as mentioned more favourable, than if really borrowed at 6 Per Ct. 1

We should think very good you desired the Houses to let the subscription be only at our House, but however this would be favourable to it, we may not propose it to them to avoid their displeasure.2

We pray your Excellency to mention nothing of this letter, in your answer to the houses and to believe us with real esteem. / Sir / Your Excellency’s Most / Humb & Obedt Servants

I have received your Favour of the Fourth, and considered its Contents. I am very Sorry to find there is no Hope of obtaining the Money upon the old Obligations with an Additional Gratification.1 The Credit of the United States must be very low indeed, in this Republick, if We must agree to Terms So exorbitant as those in the Plan you have inclosed to me, in order to obtain about two hundred Thousand Pounds sterling.— The News of It will cause Such an Allarm and give Such Disgust in America, that the Effect of it will be positive orders to borrow no more. This indeed would be no Evil to America.

However Since the Bills are drawn, to avoid the Mischief which would follow the final Protest of them, I will agree to the new Plan you propose, provided you can not obtain the Money upon more moderate and reasonable Terms. But I must intreat you Gentlemen to use your Utmost Endeavours to obtain some Diminution of the Gratifications if it is possible.

I am well perswaded of your Disposition to do this Business as Advantageously for the United States as possible, and therefore it is unnecessary for me to Use any Arguments with you, upon the occasion.

I beg Leave to recommend to you that the subscription should be opened, at only one House, Messieus Willinks for Example as this Method, is more convenient for the Subscribers, and not less beneficial for the other Houses.

You will be pleased to make it, an indispensable Condition that the Money be furnished for the Payment of all the Bills, for I am determined if any of them go back protested they shall all share the same Fate.

With great Esteem &c