rs, pay off the
principal and interest of the twentyfive millions borrowed, and leave
a surplus of $673,103 in the hands of the States, which may be
supposed equivalent to the charge of managing the money, and paying
the loan in Europe.

4thly. A fund of two millions and a half for sixteen years amounts to
forty millions, but twentyfive millions at six per cent simple
interest will in that time amount to fortynine millions, supposing the
interest annually paid; hence it is evident, that a sinking fund of
one million operating on such a loan of twentyfive millions, will make
a saving of nine millions of dollars to the States out of what will
otherwise be paid on the same capital, on the plan of borrowing
practised in our, and indeed in most other loan offices; or in other
words would reduce the interest from six to little more than three and
a half per cent, which is demonstrated in the following calculations.

5thly. Twentyfive millions of dollars may be computed in value equal
to L5,625,000 sterling. Of this, let one million and a half, or
L1,620,000 sterling be applied to the payment of debts contracted in
Europe, contracted by the commissioners, for the discharge of which no
particular mode has been stipulated and agreed upon, and for the
establishing a bank or fund for other uses and benefit of the United
States.

6thly. As the sum of L125,000 sterling will be equal to the public
debts already contracted in Europe, except those to the
Farmers-General and the house of Rodrique Hortalez & Co. there will
remain, agreeable to the plan, one million and a half sterling, or
$6,666,666-2/3 in the Congress' Bank in Europe, and four millions
sterling, or $17,777,777-2/3, for the purpose of sinking the sum of
fiftythree millions proposed.

7thly. The present rate of exchange is from five to six for one; it
must happen that as bills are brought to market to a greater amount
they will fall, but if it be considered that the ordinary demand of
these States on Europe for goods exceeded four millions sterling
annually in times of peace, that the demand at present and for two or
three years to come, even if peace should take place immediately, must
exceed the former usual demand, that though the cancelling and sinking
of fiftythree millions of dollars will tend to appreciate the
remainder in circulation, yet as there will still remain in
circulation a greater nominal sum than the commerce of these States
call for, the appreciat