Sir,
My last letter to Congress was on the twentyseventh of last month; since which an account of the new loan is received from London, and as this may, perhaps, afford to Congress the clearest proof of the weakness of their enemies, it is of importance, that it should be transmitted to them. Some accounts say, that the loan is to be seven millions, others eight. The conditions of the loan are, in general, the established interest of three per cent, an annuity for three and three quarters per cent for twentynine years, and seven lottery tickets for every thousand pounds.
In one account the advantages are thus stated.
| 100 3 per cent, | £61 00 00 |
| £3 15s. annuity for twentynine years, at twelve years' purchase, | 45 00 00 |
| Two fifths of a year's interest and annuity, gained by both beginning from the 5th of January, | |
| although the money is paid monthly, and not ended until December, | 2 14 00 |
| £3 premium of seven lottery tickets for each £1000, gives for each hundred, | 2 2 00 |
| ________ | |
| For each £100 paid, there is received | £110 16 00 |
This statement for the first year is pretty accurate. Another account makes it ten and one quarter per cent for the first year. The subsequent years, however it will not be so much. Yet for all the subsequent years, during the term of the annuity, it will be six and three quarters per cent. Upon the whole, it is generally looked upon as good as seven and a half per cent. In a country where the highest interest, that is tolerated by the standing laws, is five per cent, this is a terrible symptom.
While this system has any credit among the money lenders in Holland, Switzerland, Geneva, &c. Congress will perceive, that there is little hope of procuring a private loan for the United States from any of those places. Whether any may be procured from any State, or Prince, time must discover.
I have the honor to be, &c.
JOHN ADAMS.