ations
of the sinking fund the utmost activity of which it was susceptible,
he had, with the approbation of the President, directed a part of the
first loan to be paid in discharge of the instalments of the foreign
debt which were actually due, and had drawn a part of it into the
public treasury in aid of the sinking fund.

In May, 1791, instructions were given to the agent of the United
States in Europe, to apply the proceeds of future loans, as they
should accrue, in payments to France, except such sums as should be
previously and specially reserved. In the execution of these
instructions, some delay intervened, which was to be ascribed, among
other causes, to representations made by the French minister of marine
that a plan would be adopted, to which a decree of the national
assembly was requisite, for converting a large sum into supplies for
St. Domingo: and to a desire on the part of the agent to settle,
previously to further payments, a definitive rule by which the monies
paid should be liquidated, and credited to the United States. The
disordered state of French affairs protracted both the one and the
other of these causes of delay, to a later period than had been
expected; and, in the mean time, the secretary continued to draw into
the United States such portions of these loans, as were destined to be
brought in aid of the sinking fund. Such was the state of this
transaction, when the commencement of those calamities, which have
finally overwhelmed St. Domingo, induced the American government, on
the urgent application of the French minister, to furnish supplies to
that ill fated colony, in payment of the debt to France. This being a
mode of payment which, to a certain extent, was desired by the
creditor, and was advantageous to the debtor, a consequent disposition
prevailed to use it so far as might comport with the wish of the
French government; and a part of the money designed for foreign
purposes, was drawn into the United States. In the course of these
operations, a portion of the instalments actually due to France, had
been permitted to remain unsatisfied.

A part of the money borrowed in Europe being thus applicable to the
extinguishment of the domestic debt, and a part of the domestic
revenue being applicable to the payment of interest due on the loans
made in Europe, the secretary of the treasury had appropriated a part
of the money arising from foreign loans to the payment of interest due
abroad, wh