A statement composed by Thomas Mullett c. December 1799 about the nature of selling and purchasing American debt, a big part of Mullett’s business.

The Debts of the United States of America amount to about Seventeen Millions Sterling, of which Fifteen Millions and a half have been funded by different Acts of Congress, ... [he lists several acts with interest rates ranging from 3% to 6%, which is what all will become after 1 January 1801.]

   The Stock is in dollars equal to 4/6 sterling each.

   All these Funds are redeemable only at the par of 100; and the 6[%] are now paying off on the plan prescribed by an Act of the United States, at the rate of 8[%] Annum on Account of both Principal and Interest. This plan recommended on the 1 January 1796; and according to calculations made, the 6[%] Stock will be extinguished in the Year 1818.

   There is likewise a National Bank at Philadelphia on the same principle as the Bank of England, the capital of which is 2/4 Millions Sterling and is divided into 25,000 shares of 400 Dollars equal to £90 Sterling each; the Dividends are payable 1 January and 1 July in each year and have gradually risen from 7 ¼ to 7 [%] Annum; besides which a surplus Dividend of 1[%] has been once made and may be occasionally expected in future, as the affairs of the Bank are very prosperous.

  The Interest on all these Stocks is punctually paid in America at the times before mentioned, and is received on behalf of the Stockholder by the person he may constitute as his Attorney in like manner as in the English funds: but as many who may wish to become Stockholders have no Correspondents in America, the United States Bank at Philadelphia undertake this business gratuituous for all residents in Europe who are only charged a small Commission by the Agent of the Bank in London for paying them which is done as soon as remittances can arrive after each quarter is due: but the Stockholder must of Course be at the risk of the Exchange, which will be sometimes for & sometimes against him. On their Own Stock the United States Bank the Dividends in London (to all who desire it) free of all expence whatever taking the risk of Exchange &c on themselves only postponing each payment for 6 Months to give time for the remittance arriving & the Bills becoming due: that is to say the Dividends due in January in America, are paid in London in July following; of which notice is given in the public Papers & the Dividends are received with the same facility, and Punctuality as at the Bank of England.

   The Transfers of the American Stocks are made as follows. The Stockholder has a Certificate purporting that the United States of America owe to him or his Assigns the amount therein mentioned; or in the Bank Stock a like Certificate purporting that he is intitled to one or more Shares in the Bank Stock assignable by him. These Certificates are the transferable Evidence of the Property; which being delivered to the purchaser with an Assignment annexed, he becomes the Complete owner thereof; & on transmitting the Certificate & assignment to America a new Certificate issues in his name, which he may sell again in like manner at pleasure. To give the purchaser ample time to make this Transfer, the seller guarantees to pay the Interest for 12 Months from the sale, unless the Transfer is made earlier.

   The Purchase & Sale is transacted by a few Brokers who perform the business of buying & selling at a Commission of one quarter perCent on the nominal Stock. But as the Market for American Stock is not so open & well understood as for English Stock the undersigned have for some years undertaken to manage this business for their friends on the following terms.

         For superintending the purchase of Stock & procuring the transfer thereof in America, they charge one PCent commission on the money laid out; besides the actual expences of Notarial Registering postage &c &c which will be from 20/ to 40/ according to the Number of Certificates of which the stock may happen to consist. If they are not employed to make the purchase but only to procure transfer they charge one half PCent Commission. For making sales which includes the guaranteeing Interest to the buyer as before mentioned they charge one Pcent commission on the Amount. For receiving Interest and remitting it regularly by one half PCent on the Amount.

   From a long and intimate acquaintance with all the Circumstances attending the American Funds & a knowledge of the Brokers & Stockholders they presume to think that it is in their power to give considerable facility to buyers or sellers.

   If any farther explanations are desired, they can at all times be had at their Counting House No 11 Broad St Buildings.  

Thomas Mullett & Co.

London 1799.

  The Solidity of the American Funds is now well and general[ly] understood; but it may not be amiss to remark that the Taxes considerably exceed the charges of the peace establishment in consequence of which the 6 PCent Stock is already begun to be paid off & will be extinguished in the Year 1818 as before mentioned.

   And even should the United States go into a war, they have declared an Intention of raising the supplies within the Year instead of pursuing the European System of adding to a Load of Debt.

   But the growing population & consequent wealth of the United States offer such ample resources to afford the strongest reason to believe that their finances will ever be in a better state than those of Europe already impaired by continual & increasing drains.

Text: MSS HM 73700, Huntingdon Library, San Marino, CA. Title as given in the Huntington Library Catalogue is "American Stocks: a memorandum by the London brokerage firm of Thomas Mullett & Co., 1799."