For who will give
ninety-six per cent, for the foreign obligations of the same nation,
whose domestic ones can be bought at the same market for fifty-five
per cent.; the former, too, bearing an interest of only five per cent.,
while the latter yields six. If any discouragements can be honestly
thrown on this transfer, it would seem advisable, in order to keep the
domestic debt at home. It would be a very effectual one, if, instead of
the title existing in our treasury books alone, it was made to exist
in loose papers, as our loan office debts do. The European holder would
then be obliged to risk the title paper of his capital, as well as his
interest, in the hands of his agent in America, whenever the interest
was to be demanded; whereas, at present, he trusts him with the interest
only. This single circumstance would put a total stop to all future
sales of domestic debt at this market. Whether this, or any other
obstruction, can or should be thrown in the way of these operations,
is not for me to decide; but I have thought the subject worthy your
consideration.
I have the honor to be, with sentiments of the most perfect esteem and
respect, Gentlemen, your most obedient and most humble servant,
Th: Jefferson.
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