First, that a certain net annual revenue of two millions and a half of dollars is sufficient for sinking the loan proposed of 25,000,000 in sixteen years, and to leave a surplus of $673,103 after discharging both principal and interest. In the second place, that by this plan the public will save the sum of $9,673,103 more than if the same sum is borrowed in the usual way of simple interest; or in other words, the money on this plan will be borrowed at 31/2 per cent interest nearest, a sum well deserving the attention of the public at this, and at every other time, and it is for that purpose the foregoing plan and calculations are submitted.
The only difficulties, that can possibly occur in the carrying this plan and every part of it into execution, are in the establishing such a fund, as will be certain for raising the two millions and a half of dollars annually, and in the next place in procuring the loan. The first may be obviated with greater ease and certainty than the second. It cannot in justice be concealed, that the loan cannot be obtained with the same ease now as it might have been six or seven months past, nor that the longer it is delayed, the greater the difficulty will be. It is however attainable if applied for in season, and in a proper manner. It is but too probable, that if delayed many months longer, it will not be obtained on any terms whatever. The war now kindling in Europe will probably in the course of another year become general, the consequence of which will be, that the emperor of Germany, the empress of Russia, and some other powers, the two former in particular, who have improved the late peace to regulate their finances, and to reduce and pay off their foreign debts, will on this change of affairs become borrowers afresh; in a word, there will be in Europe seven or eight, or more powers under the necessity of borrowing, and not more than two or three at the most in a situation to lend, and when so many demands are made for money, it will be very difficult to have ours preferred. To obtain it, therefore, requires immediate application, interest, and address; which thoughts, with the above plan, are respectfully submitted to the wisdom of Congress.
SILAS DEANE.
Proposals for equipping such a fleet, as will be sufficient to defend the coasts and commerce of the United States against any force, which Great Britain will be able to send to America.
It is necessary to premise, that the obtaining a loan, and setting on foot a naval force, are so connected with, and dependent on each other, and so many important consequences depend on both, that I have preferred placing one directly after the other, that my ideas on these great subjects may be perceived at one view, rather than the placing them in any manner separate or disjointed from each other. Without a naval force sufficient to protect in some degree our commerce as it revives, it will be very difficult, if not impossible, to pay either the principal or interest of the money we may borrow, and without some probably certain prospect of doing this, it would hardly be honest to borrow at all. I have only to add, that the following calculations are not founded on light and uncertain estimates, but on the most certain knowledge of the quantity of each of those articles necessary for the purpose. The prices are fixed at what they were last season in Sweden, and in the north of Europe; what I have ventured to say respecting ships of a new construction carrying fortytwo to fortyeight cannon, being equal to sixtyfour and even seventyfour line of battle ships, I am convinced of the truth of, not merely from my own observation and reasoning on the subject, but from the opportunities I have had of conversing with some of the most able and experienced constructors and commanders of ships in Europe, as well as in America. France, as well as England, has already several ships of such a plan on the stocks, which is a full proof in what light they view this plan of building; but fortunately for these States, their old prejudices, as well as the opposition of commanders of large ships, and a great number of men, to the changing them for ships of a less rate and fewer men, as well as of less pomp and appearance, will in a great measure prevent either of those nations from much immediate success in this plan for an improvement or reform.
1st. A fleet consisting of twenty such ships as mentioned above, joined by twenty frigates from twentyfour to thirtysix guns, will be sufficient to guard this coast against any naval force, which Great Britain, or any other maritime power can spare, to send against us. An American fleet, opposing a foreign one on this coast, will always have many very decisive circumstances in their favor, which are obvious at first view, particularly that of clean ships and healthy men against foul ships and sickly men, or fatigued by a long voyage, and that of being able with ships of the proposed construction to enter harbors in case of storm or other accident, which larger ships cannot.
2dly. The twenty large ships, and ten or a less number of the frigates may be put on the stocks and built in America, and though the present price of labor is dear, yet were the undertakers to be paid in sterling bills, or in specie, the hulls or bodies of the ships may perhaps be had nearly at the same price as before the war; but suppose they cost more, yet if every other article be procured from Europe at the first cost and common charges, the ships complete will not amount to much more than such ships usually cost before the war in America, probably not so much.
3dly. Suppose also that eight of the frigates be built in America, and twelve purchased in Europe, to transport the materials from thence for the rest. In the first place, let a calculation be made what all these materials, allowing a large proportion, will amount to, and also for the purchase of the twelve frigates, or ships for frigates, which are to transport those materials over to America.