[AMERICAN REVOLUTION]
Rare 1777 Georgia issued United States Loan Receipt. The loan receipt on a large slip of laid paper watermarked "Continental Loan Office", the left edge scalloped, the text and right border printed in black, the top and bottom border and left edge printed in green. The text references the resolution of Congress passed 22 February 1777 and the receipt accomplished in ink on 23 December 1777. The notes promise to repay lender Thomas Stone, with 6% interest, for his four $400 loans on December 1st, 1781. The receipt is numbered "64" in ink at upper right, signed in ink by Samuel Hillegas, and countersigned in ink by E. Davis "by order of T.A. Treutlen, Governor of Georgia." The verso records an interest payment made in 1781 and is signed in ink by Michael Hillegas as Continental Treasurer. The sheet 5 1/4 x 10 inches (13 x 24 cm). A few spots in the lower margin, the recto ink somewhat faint, minor edgewear.

A revolutionary loan receipt from a group with a controversial history. To support the War effort, in October 1776 Congress resolved to raise five million in Continental currency by offering loan certificates in various amounts to be repaid with interest. For expediency, Continental Loan Offices were set up in each of the new United States and loan receipts were authorized to be signed by a local commissioner. Samuel Hillegas, son of Continental Treasurer Michael Hillegas, was also authorized to sign these loan certificates on behalf of the Continental Treasury. Present here is an example of a $400 certificate issued in the state of Georgia to an apparently wealthy and generous patriot, Thomas Stone. The receipts is not cancelled but an interest payment dated December 1781 is recorded on the verso and signed by Continental Treasurer Michael Hillegas.

Claims on Revolutionary loans were settled in the late 18th century and persisted deep into the 19th century. These particular Georgia issued receipts drew contemporary scrutiny for the unknown identity of E. Davies, who countersigned each receipt "by order of J.A. Treutlen, Governor of Georgia." In 1792, the authenticity of this specific group of Georgia issued loan receipts was called into question by the Secretary of the Treasury of the United States, Alexander Hamilton, who reported to Congress that the receipts "should be previously countersigned by certain officers, denominated Commissioners of Loans, who were to be appointed under the authority of the particular States. After diligent inquiry within the State of Georgia, no evidence has been obtained, either of the appointment of E. Davies, (the person by whom the certificates in question were countersigned) to the office of Commissioner of Loans for that State, or that he was ever known or reputed to have acted in that capacity. It is to be remarked, that E. Davies does not even stile himself, Commissioner of Loans, but, instead of this, adds to his signature, the words 'by order of J. A. [Treutlen], Governor of Georgia.' The Certificates, however, are signed, by the proper officer, and all such as have appeared are genuine; and interest, as alleged in the petition, has been paid upon them by the late Treasurer of the United States, as in other cases."

The case of the E. Davies signed receipts was still being debated in 1860, when another report on claims was made to Congress. In Judge Blackford's dissenting decision he states "It is clear that the certificates so sent to Georgia were of no validity whilst they remained without being countersigned by the loan office commissioner there, and issued by him. Mr. Davies shows, by that language, that in countersigning the certificates, he acted, not as a United States loan office commissioner for Georgia, but in pursuance of an order of the governor of Georgia. Now did Davies, in signing and writing, act as an agent of the United States? The writing plainly shows that he did not so act, because it shows that he acted by order of the governor of the state. There is not the slightest evidence that Davies was a loan office commissioner . Believing, therefore, as I do, that these certificates are not countersigned by the loan office commissioner for Georgia, I must consider them, so far as the United States are concerned, as absolutely void." It took until 1870 for the Supreme Court to finally definitively decide against these certificates.

Edward Davies proves to be an elusive figure but we find reference to him as deputy postmaster in Savannah in 1787. We also find reference to him in the seminal lawsuit Chisolm vs. Georgia in which Davies and - interestingly - Thomas Stone - acting as commissioners for Georgia were authorized in 1777 to buy goods for Continental troops in dire need stationed in Savannah. The goods received, the debt was never paid, and this suit grew to become the first Supreme Court case of impact. Edward Davies was dead by 1791. Also complicating the history of the loan receipts is the mysterious death of Governor John Adam Treutlen who died at the hands of a violent mob in 1782.

We do not trace other examples of these 1777 loan certificates besides those offered in this sale.

See:

For Alexander Hamilton's 1792 report to Congress see:
https://founders.archives.gov/documents/Hamilton/01-11-02-0164
For the 1860 decision see:
https://www.google.com/books/edition/Reports_from_the_Court_of_Claims_Submitt/b5VYMp7GAI4C?hl=en&gbpv=1&bsq=thomas%20stone