70TH CONGRESS 1st Session } SENATE (DOCUMENT No. 50 CLAIMS OF THE STATE OF NORTH CAROLINA LETTER FROM THE COMPTROLLER GENERAL OF THE UNITED STATES TRANSMITTING, IN RESPONSE TO SENATE RESOLUTION NO. 123, A STATEMENT OF THE INDEBTEDNESS OF THE STATE OF NORTH CAROLINA TO THE UNITED STATES UPON CERTAIN BONDS OF THE STATE AND THE CLAIMS OF THE STATE OF NORTH CAROLINA FOR ADVANCES DURING THE WAR OF 1812 FEBRUARY 6, 1928.-Referred to the Committee on Claims and ordered to be printed COMPTROLLER GENERAL OF THE UNITED STATES, Washington, February 6, 1928. The PRESIDENT OF THE UNITED STATES SENATE. SIR: There was received from the Secretary of the United States Senate Senate Resolution No. 123, of January 27, 1928, in which the Comptroller General of the United States is authorized and directed to state an account and report to the Senate of the indebtedness of the State of North Carolina to the United States upon certain bonds of the State and the claims of the State of North Carolina, respectively, for advances during the War of 1812 with interest computed under the Maryland rule and for the proceeds of cotton seized by the United States in the amount of $42,532.54, as set forth in Senate Report No. 248, part 2, Sixtieth Congress, first session, interest thereon to be computed as specified in the instant resolution. In compliance therewith report is made as follows: The bonds of the State of North Carolina representing its indebtedness to the United States in the total sum of $146,140 were formerly held by the Government in the Indian trust fund, and later became the property of the United States when, pursuant to the provisions of section 2, act of August 15, 1894 (28 Stat. 311), the face value thereof was placed to the credit of the several tribes of Indians interested therein. A description of such bonds showing amount of coupons due and unpaid thereon is as follows: With respect to States in default in payment of principal and interest on bonds and stocks issued or guaranteed by them, the ownership of which was vested in the United States, specific direction to institute suit against the States was conferred by section 4 of the act of March 3, 1899 (30 Stat. 1358), and in pursuance thereof the Secretary of the Treasury caused suits to be instituted against the several States so indebted. These suits, however, were discontinued and dismissed as directed by the act of June 6, 1900 (31 Stat. 612). Subsequently in an effort to adjust its indebtedness the State of North Carolina authorized and appointed commissioners to take under consideration a plan of adjustment, but the Congress postponed action on a measure providing for representatives on the part of the Government for the purpose. The matter has thus remained unsettled up to the present time. The claim of North Carolina for advances during the War of 1812 covers loans obtained from different banks by the State for funds for the benefit of the United States on which it paid interest at the rate of 6 per cent and payments made by the United States on account thereof. A full report in connection with the matter was made by this office under date of February 28, 1923, interest being computed in accordance with the Maryland rule to include that date, and the amount found due the State as of March 1, 1923, was $159,566.85. See in this connection Senate Report No. 1559, Sixtyninth Congress, second session (Calendar No. 1566), in which the report appears in full. The principal upon which interest is to be computed from March 1, 1923, is, as given in my previous report herein referred to, $25,910.09, and the amount due the State for advances during the War of 1812-1815, as of February 29, 1928, date adopted for the purpose of this report, is as follows: Balance due the State of North Carolina Feb. 28, 1923_ $159, 566. 85 7,773. 03 167, 339. 88 Total due the State as of Mar. 1, 1928____ Relative to the claim of the State of North Carolina for the proceeds of cotton seized by the United States, the resolution directs that in the statement of the account there shall be allowed the State interest from date of seizure for the same period thereafter and at the same rate of interest as upon the State bonds. Interest at 6 per cent on the bonds was covered by the coupons attached thereto until ma turity, 30 years after their issue. As shown by the table herein before inserted, the bonds issued in 1856 matured in 1886, those issued in 1857 in 1887, and the one issued 1859 in 1889. No interest is charged the State subsequent to the maturity of the bonds. The claim for proceeds of cotton in the sum of $42,532.54 is made up of two different items, one for $36,462.43 being the proceeds of 246 bales of cotton belonging to the State of North Carolina seized August 15, 1865, and the other for $6,070.11, being the proceeds of 175 bales seized April 16, 1866, as more fully set forth in Senate Report No. 248, part 2, Sixtieth Congress, first session. In view of the fact that the bonds matured at different dates and there are two dates involved in the seizure of the cotton, it would appear that such dates should be given due consideration in the computation of interest on the cotton claim. Accordingly, in the computation of such interest, one bond of the State, par value of $1,000, not having matured until April 1, 1889, interest on $1,000 of the amount of $36,462.43 will be computed from August 15, 1865, the date of seizure, to April 1, 1889; interest on $16,000 of the amount of $36,462.43 will be computed from August 15, 1865, to April 1, 1887, and interest on the balance of $19,462.43 will be computed from August 15, 1865, to October 1, 1886. Interest on the second item of $6,070.11 will be computed from April 16, 1866, date of seizure of the cotton, to October 1, 1886, the date of maturity of $41,000 par value State bonds. The amount due the State of North Carolina for cotton seized in 1865 and 1866, with interest computed at 6 per cent, as herein indicated, is as follows: Interest at 6 per cent per annum on $1,000 from Aug. 15, 1865, to Apr. $1, 417. 67 20, 762. 67 Interest at 6 per cent per annum on $19,462.43 from Aug. 15, 1865, to 24, 671. 87 Interest at 6 per cent per annum on $6,070.11 from Apr. 16, 1866, to 7, 451. 06 Total interest.. 54, 303. 27 Amount of claim for proceeds of seized cotton, including the two items hereinbefore discussed... 42, 532. 54 Total claim, including interest_ _ _ _ _ 96, 835. 81 A recapitulation of the debits and credits between the State of North Carolina and the United States as hereinbefore set forth and considered in the statement of account is as follows: Due the State of North Carolina: For advances during the War of 1812-1815, including interest For proceeds of cotton seized by the United States in 1865 and Due the United States: For bonds of the State of North Carolina held by the United States, including principal and unpaid coupons_-_ Balance due the State as of Feb. 29, 1928..... $167, 339. 88 96, 835. 81 264, 175. 69 146, 140. 00 118,035. 69 It should be stated in this connection that this report does not take into consideration the amount of $1,433,757.39 carried and shown on the books of the Treasury as an indebtedness of the State of North Carolina on account of moneys deposited with said State under section 13, act of June 23, 1836 (5 Stat. 55), as amended. The act of June 25, 1910 (36 Stat. 776), authorized credit to be given the Treasurer of the United States for the amounts he had been charged on account of moneys advanced to various States under the act of 1836, but provided that the credit authorized should in no wise affect or discharge the indebtedness of the States, and that such credit should be acted upon in such manner as to debit the respective States chargeable therewith upon the books of the Treasury Department "until otherwise directed by Congress.' No further direction has been given by Congress in this respect. This matter has been previously reported by this office and appears in Senate Report No. 1559, Sixty-ninth Congress, second session, herein before mentioned. Respectfully, J. R. MCCARL, Comptroller General of the United States. O FUNDING OF GREEK WAR DEBT TO THE UNITED STATES MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING COPY OF THE REPORT OF THE SECRETARY OF THE TREASURY REGARDING THE PROPOSED PLAN FOR SETTLEMENT OF THE DEBT OWED BY GREECE TO THE UNITED STATES AND OF THE DIFFERENCES EXISTING BETWEEN THE TWO GOVERNMENTS ARISING OUT OF THE TRIPARTITE LOAN AGREEMENT FEBRUARY 6, 1928.-Read; referred to the Committee on Finance and ordered to be printed To the Congress of the United States. I am submitting herewith for your consideration a copy of the report of the Secretary of the Treasury regarding the proposed plan for the settlement of the debt owed by Greece to the United States and of the differences existing between the two Governments arising out of the tripartite loan agreement entered into at Paris under date of February 10, 1918. The plan of settlement has my approval, and I recommend that the Congress enact the necessary legislation authorizing it for the following reasons: It provides for the funding of the Greek war debt to our Government and for the settlement of the Greek claim for further advances under the tripartite loan agreement made during the war. While our Government is to advance some twelve millions to Greece, the loan is amply secured, is to be repaid over a period of 20 years at an adequate rate of interest, and is to be used exclusively for reconstruction work of great humanitarian as well as economic value. This loan discharges what the Greek Government has consistently contended is a legal and moral commitment of our Government. THE WHITE HOUSE, February 6, 1928. CALVIN COOLIDGE. |