TO M. DE REYNEVAL.

Washington, March 20, 1801.

Dear Sir,

Mr. Pichon, who arrived two days ago, delivered me your favor of January the 1st, and I had before received one by Mr. Dupont, dated August the 24th, 1799, both on the subject of lands, claimed on behalf of your brother, Mr. Girard, and that of August the 24th containing a statement of the case.  I had verbally explained to Mr. Dupont at the time, what I presumed to have been the case, which must, I believe, be very much mistaken in the statement sent with that letter; and I expected he had communicated it to you.

During the regal government, two companies called the Loyal, and the Ohio companies had obtained grants from the crown for eight hundred thousand, or one million of acres of land, each, on the Ohio, on condition of settling them in a given number of years.  They surveyed some and settled them; but the war of 1755 came on and broke up the settlements.  After it was over they petitioned for a renewal.  Four other large companies then formed themselves, called the Mississippi, the Illinois, the Wabash, and the Indiana companies, each praying for immense quantities of land, some amounting to two hundred miles square, so that they proposed to cover the whole country north between the Ohio and Mississippi, and a great portion of what is south.  All these petitions were depending, without any answer whatever from the crown, when the revolution war broke out.  The petitioners had associated to themselves some of the nobility of England, and most of the characters in America of great influence.  When Congress assumed the government, they took some of their body in as partners, to obtain their influence; and I remember to have heard at the time, that one of them took Mr. Girard as a partner, expecting by that to obtain the influence of the French court; to obtain grants of those lands which they had not been able to obtain from the British government.  All these lands were within the limits of Virginia, and that State determined peremptorily, that they never should be granted to large companies, but left open equally to all:  and when they passed their land law (which I think was in 1778) they confirmed only so much of the lands of the Loyal company as they had actually surveyed, which was a very small proportion, and annulled every other pretension.  And when that State conveyed the lands to Congress (which was not till 1784), so determined were they to prevent their being granted to these or any other large companies, that they made it an express condition of the cession, that they should be applied first towards the soldiers’ bounties, and the residue sold for the payment of the national debt, and for no other purpose.  This disposition has been, accordingly, rigorously made, and is still going on, and Congress considers itself as having no authority to dispose of them otherwise.

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