waited to learn what premium the Yankees would demand for a loan, for the redemption pected that friend Barker, compounding with of which no revenue was provided. They exhis conscientious scruples, which forbids a Quaker to lend aid to warlike operations, would fix such a bonus as would justify a liberal advance to government, and they have sent agents to trade with the Secretary of the Treasury when it is determined how desperate the fortunes of the administration have become.

[Extract from the Federal Republican, May 3, 1814.] "THE LOAN.

"I did send

To you for gold to pay my legions,

Which you denied me.'

"The administration is likely to be left completely in the lurch by the prompters and advocates of the disastrous war into which they have plunged this once prosperous nation, notwithstanding the shrewd calculations of that wonderful financier Eppes, and vaporings of Gales in the Court Gazette, it now amounts to a certainty that the loan will utterly fail. In Baltimore, where the warhawks have, again and again, pledged their lives, their fortunes, and their sacred honors, to strain every nerve in aiding Mr. Madison and Company to take the Canadas, blow up the British fleet, and exterminate the Indians, the whole amount of the loan bid for somewhat exceeds one hundred thousand dollars, or about a two hundred and fiftieth part of the amount which the President is authorized to borrow, this will be rue to the little monarch in his resentment, and his case absolutely calls for commiseration. What! in Baltimore, where patriotism glows and splutters like a red hot poker thrust in a pot of beer, is nothing but frothy words to be expected? One hundred thousand dollars! Call you this backing your friends? a plague on such backing! How much ready money liberality has been displayed towards the administration in Philadelphia we have not yet learned. With such a powerful advocate in that city as Inchiguin Whippoorwill, the amount subscribed there will be at least as great as in Baltimore. The sub-secretary of the treasury, Jacob Barker, has long been on the alert in New York, and it would be woundrous pitiful if the Democrats there should have forgotten that Mr. Madison wants money and must have it. Still greater hope, doubtless, rests on Boston. There, it was promised by the agent for the loan that the names of all the subscribers should be kept a profound secret. As the government is bound to comply with this condition, perhaps we shall never know how much of the twenty-five millions is obtained in that place. "It is said that the Baltimoreans, out of extreme modesty, did not subscribe so largely to to the loan as their dispositions prompted. They were unwilling to be deemed extortioners, and

expected.' Should the administration be hard pushed, it cannot be doubted that their western supporters will shell out a part of the cash which has circulated so freely beyond the mountains since the war was waged. A Secretary of the Treasury has been selected among the backwoodsmen, and in this republican government no office should be suffered to become a sinecure.""

About the 10th of May I arrived at New York and immediately commenced the task of raising money by disposing of the stocks which I held in prior loans, which I was obliged to do at a loss, borrowing from the banks at this place and at Albany, and from individuals, and by procuring it from such other sources as remained within my power.

I was successful in forming my arrangements for the payment of the first instalment. Pending the negotiations for it I received letters from the Hon. Charles J. Ingersoll, a member of Congress from Philadelphia, a particular friend of Mr. Madison, an ardent supporter of the war, and well acquainted with the difficulties the administration were laboring under; and, although that gentleman volunteered to do me full justice, the Philadelphia feeling towards New York seemed to lurk in the background.

The correspondence reads as follows:

“PHILADELPHIA, May 13, 1814. "DEAR SIR: Without any business to trouble you with, I beg leave, nevertheless, to pursue you to New York with a letter of complaint and compliment; of complaint that you did not call to see me, as you promised you would, on your transit through Philadelphia; and of compliment on the important pecuniary services you have just rendered the country in your liberal subscription to the loan, as well as the very patriotic spirit in which this large contribution appears to have been made. If I had been a member of Congress during the war of the revolution, and Robert Morris, just after saving the nation from embarrassment, had failed to keep a promise previously made to honor me with a visit on his way through

During my negotiation for the loan I was in correspondence with the Bank of America, which had a very large capital, I believe the largest of any bank in America, and supposed the advantages of my plan would induce the directors to embark in it.

Before the appointed day I received a letter from the president of that bank proposing that I should transfer the negotiation to them. This I declined, promising to secure for the banks who might assist me all possible aid from the treasury, and to return to New York and confer with them before I committed myself to any other bank or made public my plans. I did so, and used every argument in my power to induce them to embark. They loaned to me, through my brother Abraham, who was a director, $250,000, declining all further connexion with the subject.

Had that bank embarked to the extent of its

capacity the Secretary would have been likely to have put my whole plan into immediate operation, the circulation and deposits which would have resulted therefrom would have enabled it to have encompassed not only the whole five millions, but the residue of the twenty-five millions authorized by the law. It would have given such a character to the stock that the bank would have sold to monied men as fast as their necessities required them to do so. Large as was its capital, the profits of those operations, had they been carried out through that bank, would have gone far towards doubling its capital.

A great majority of the directors were politically opposed to the administration, which, doubtless, had an influence on their minds in deciding the question, however much they may have endeavored to rise above such considerations.

What influence Messrs. Astor and Parish had on the minds of individual directors cannot be known. Those gentlemen, in connexion with John Donald, of Baltimore, had a favorite project of introducing British fabrics into the United States through Canada, and supposed, if they could defeat my operations, the necessities of the government would induce the administration to adopt their plan, hence their opposition; it did not arise from any political feeling. Oliver Walcott, the president of the bank, having previously refused to co-operate

in procuring subscriptions, lest it should interfere with Mr. Astor's plans, it is not unreasonable to conclude that the same influence continued to operate.

"NEW YORK, fifth month, 11th, 1814. "GENTLEMEN: I wish to borrow of you one million two hundred and fifty thousand, ($1,250,000,) for which I will allow you six cent. per annum interest, to be paid in advance every sixty days.

per

To secure the payment, I will transfer to you a sufficient amount of funded stock in the twenty-five millions loan, estimated at eightyeight, (88,) to cover your advances, this amount to be placed to my debit and to the credit of government in your books on the 25th instant. It will be drawn out as sparingly as the convenience of government will permit, and great pains will be taken when it is drawn out that your bills be received for it and circulated through the Union.

"Should I at any time be disposed to redeem a part or the whole of this stock, I am to be at liberty to do so, and, in that case, to have the right, on giving three months' notice, to require the same amount, or such part of it as I may choose, to be loaned to me again on a like security, so long as the said bank shall custom-house bonds, and one-fourth of the receive one-fourth part of the collection of other government business at this place, which business I will undertake to procure from government, and if I do not succeed within thirty days from the 25th instant, the bank shall have a right to require me to refund the amount loaned, and to sell the stock for the most it will fetch to accomplish that object. And although this loan may be refunded in a month, the said bank may calculate on having the and no other loan in lieu thereof be required, benefits of said business from government for at least two years, and that they will not be disposed to change it after that period without some more powerful cause exists than anticipated; and although I only stipulate for a quarter of the government business, I will do all in my power to increase that proportion. "Very respectfully, I am your assured friend, "JACOB BARKER. "To the PRESIDENT AND DIRECTORS OF THE BANK OF AMERICA."

"NEW YORK, fifth month, 14th, 1814. "DEAR FRIEND: I have raised a large sum of old stocks at a loss, and shall be enabled to money, through my friends, and are selling my pay the first instalment on the day promised, although I find it totally impossible to make any satisfactory arrangements with either of our leave the banks to reflect for a few days, and banks in season. I have thought it best to to bring all my own resources into action for the first payment. I therefore have to beg

thee to retain in thy own hands all the patronage of government, and not grant any favors to any banks until thee hears again from me. Please withhold from the City Bank all share of the public deposits for a few weeks.

"I go this evening to Albany with the hope of doing something at that place; and depend upon it that the scarcity of cash existing among the banks is even more serious than we supposed, and thee may also depend upon my overcoming the difficulty, provided government lend all their former aid in favor of the best interest of the country.

"Avoid, if possible, drawing on New York for a few weeks. A little repose for our banks is absolutely necessary.

"I consider the news about the allies entering as a palpable fabrication.

"In great haste, thy assured friend,

"JACOB BARKER.

"GEORGE W. CAMPBELL."

On the 14th of May I notified the treasury that I would place to the credit of the government, on the 25th of that month, in the Mechanics' Bank $625,000, in the Bank of America $250,000, and in the City Bank $375,000, as will be seen by the following: [Extract.]

"5th Month, 14th, 1814.

"I will place to the credit of government, on the 25th of this month-in the Mechanics' Bank, $625,000; in the City Bank of America, $250,000; and in the City Bank, $375,000. Please give the cashiers of those banks orders to issue such scrip certificates as will enable me to obtain funded stock for the whole, or funded stock for a part, and scrip with only one instalment endorsed on it for the balance. If, however, there should be an objection to my taking two descriptions of scrip I will take funded stock for the whole.

"Very respectfully, thy assured friend, "JACOB BARKER. "G. W. CAMPBELL, Secretary."

"NEW YORK, fifth month, 17th, 1814. "DEAR GENERAL: The vast responsibility which I have assumed engross a large portion of my thoughts, because the difficulties I have to overcome before I can accomplish the desirable end are ten times greater than my friends at Washington anticipated; I, however, neither doubt or despair, but, had my original plan been adopted, to wit, had the Secretary of the Treasury by contract given to the banks the patronage which he will give as a free will offering, I should have less trouble and anxiety; to remedy existing difficulties, I am sacrificing a few thousand dollars in selling old stock and and other ways converting my property into cash, but for my misfortunes since the I should have had an estate of nearly half a

war,

million of dollars, the whole of which should have been devoted to the service of my country, and, as it is, I have about half that sum, of which the last dollar, if necessary, shall be sacrificed to enable me to fulfil my contractthe pleasure of the nation at the success of the loan, both as to rate and amount offered, is more easily conceived than described. I have not met a man of any political description that has not expressed his disappointment-a new current in respect to our loan will henceforth prevail. *

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"It will require all the support and friendship of the Treasury Department to carry me through, to the importance of which I beg thee to call the attention of the Secretary of the Treasury. I was at Albany yesterday and had a conference with the banks at that place, those institutions must all have a little time to reflect. I, therefore, after exhibiting to their view the advantage to be derived from taking a share with me in my contract, left them without manifesting any solicitude for them to do so, and they promised to send agents to this place to negotiate with me. I shall do something to advantage with them. *

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from Liverpool that there will certainly be

"A cartel has arrived. My brother writes

peace in July or sooner-he is well informed.

Mullet & Co., of London, who are also well informed, write a different opinion.

No news from the John Adams; the season had been so bad that 23 mails were due from Gottenburg when the cartel left England.

"British manufactures fell 20 per cent. between the 15th of March and the 8th of April, in consequence of the impossibility of selling them in the continental markets, they were all glutted, and no purchasers in consequence; very large quantities destined for the continent had been shipped for Halifax, for which place a richer convoy was near about sailing than had ever been sent there, and the manufactories were in great distress for cottons, which, together with the general blockade will, I think, convince every man in the nation of the bad policy of repealing the restrictive system.

"The success of the allies and the general blockade operate very much against the loan; so difficult is it to raise money that Parish told me it was impossible for him to raise a single $100,000 in Philadelphia on a deposite of United States stock; a Mr. Williams, a director in one of the banks at Baltimore, and Mr. Lawrence, a director in the Manhattan Bank, went to Boston to borrow money for those banks, and, although they offered to deposite United States stock at 50 per cent. and the security of their banks, they could not get a single $100,000.

"Thus, my friend, if I accomplish what I have undertaken, my enemies, I hope, will give me some credit.

"Very respectfully, your assured friend, "JACOB BARKER. "General JOHN ARMSTRONG.

[Extract.]

"NEW YORK, fifth month, 19th, 1814. "ESTEEMED FRIEND: I wrote thee under date of the 14th, saying that I should pay, on the 25th instant, to the credit of government in the Mechanics' Bank, $625,000; in the Bank of America, $250,000; in the City Bank, $375,000; in all, $1,250,000; the amount of the first instalment on my subscription to the ten millions loan, which I now confirm.

"I wish scrip issued by the Mechanics' Bank for about $50,000 of the above; and for the balance I wish stock; if I cannot have both, I

wish funded stock for the whole.

"Please give timely instructions to the cashiers of the different Banks.

"Some Philadelphians are here who have been disappointed in getting part of the loan, who say that I have backed out of the contract, and that in consequence thereof new books for subscription to the loan are open at the banks in Philadelphia.

"This base fabrication cannot injure me, as I look upon everything with composure, and am determined to be quiet and apparently unconcerned until after the first instalment is paid. "Gallatin writes from Amsterdam, under date of the 8th of March, that he left St. Petersburg on the 25th January, and reached Amsterdam on the 4th March, where he only waited the arrival of the Neptune to depart for America; she was frozen up in the outer har bor of Gottenburg, from which place no vessel had departed for seven weeks previous, the winter having been uncommonly severe.

"He expected her by the 15th, and to depart by the 1st of April, but no packet reached England prior to the 8th of April, the ice must have detained the Neptune longer than he calculated. "He had not the least intention of stopping in England. Bayard would proceed to Gottenburg to attend to his new appointment.

"Gallatin had not received any information of his new appointment, nor was it known in Liverpool on the 8th of April.

"When he left St. Petersburg, he did not know that the Russian mediation had been entirely rejected, nor had he any official advice of his own rejection by the Senate, his last letters from the American government being dated in June.

"At Amsterdam, Bayard received the information in a letter from the Secretary of State, dated January 8th. It is probable the John Adams will arrive out in season to detain Gallatin in Europe.

"Thy assured friend,

"JACOB BARKER.

“GEORGE W. CAMPBELL, esq”. The story of my having backed out of my contract arose from subscriptions going on at a bank in Philadelphia, through Cashier Whann, of the District of Columbia, for a portion of the remaining million; the National Intelli

gencer, the organ of the government, having announced that the whole ten millions had been taken, the Philadelphians concluded, from books being immediately thereafter opened to receive subscriptions in the ten millions loan, that the contractors had backed out, and did

not hesitate to assume it as a fact and circulate it to my prejudice. No banks had been opened in Philadelphia by authority of government. The whole proceeding was an effort of individuals to encompass this million, who were aided by the bank doing business with government, who wished to defeat my plan of taking away a portion of its business. They failed in their attempt to encompass the million.

"WASHINGTON, May 19, 1814.

"DEAR SIR: I have to acknowledge the receipt of your several favors since you left this, including those of the 14th inst., and the pressure of current business alone prevented an earlier answer to either of them.

"I regret you should have found it necessary to make any sacrifice, in order to effect your object in relation to the loan. I trust, however, that the price of stock will soon advance so as to enable the holders of it to realize without difficulty, not only the full amount it cost them, but such an additional profit as will be an ample reward for their trouble and exertions, as well as the dispositions by them manifested to aid the fiscal operations of the government.

"You request that directions may be given to the cashiers to issue such scrips as will enable you to obtain stock. The scrip is all issued in the same manner. The instructions to issue stock upon the scrip are given to the Commissioner of Loans. It is, however, submitted whether any real advantage would result to you from authorizing stock to be issued on the scrip immediately for the first instalment.

"The authority, if given, must be general, and such as choose allowed to take advantage of it. It would seem to me the scrip would be as valuable, and would be made to answer all the purposes of stock, at least for the one month; after which stock would issue in the usual course for the first instalment. The objections, however, to issuing stock on each instalment were not deemed insuperable, nor are they yet considered so upon proper assurances being given. It will, therefore, be done to such as may require it, if you shall consider it necessary to insist on it as it was stated in your proposal. Some additional assurance, however, besides the retaining the one-fourth per cent. would be desirable; not to stimulate you but for other reasons which you will readily to exertions, which is not considered necessary, perceive, and to which you will no doubt give their due weight. Your determination on this