# Debates in the Several State Conventions/Volume 5/Congress Jan. 1783

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Philadelphia: Lippincott, pages 19–44
Wednesday, January 1, 1783.
The decision of the controversy between Connecticut and Pennsylvania was reported.
​The communications made from the minister of France concurred, with other circumstances, in effacing the impressions made by Mr. Jay's letter and Marbois's enclosed. The vote of thanks to Count Rochambeau passed with unanimity and cordiality, and afforded a fresh proof that the resentment against France had greatly subsided.
Thursday, January 2.
Nothing requiring notice.
Friday, January 3.
The vote of thanks to the minister of France, which passed yesterday, was repealed in consequence of his having expressed to the president a desire that no notice might be taken of his conduct as to the point in question, and of the latter's communicating the same to Congress. The temper of Congress here again manifested the transient nature of their irritation against France.
The motion of Mr. HOWELL, put on the Secret Journal, gave Congress a great deal of vexation. The expedient for baffling his scheme of raising a ferment in his state, and exposing the foreign transactions, was adopted only in the last resort; it being questioned by some whether the Articles of Confederation warranted it.
The answer to the note of the French minister passed unanimously, and was a further testimony of the abatement of the effects of Mr. Jay's letter, &c.
The proceedings of the court in the dispute between Connecticut and Pennsylvania were, after debates as to the meaning of the Confederation in directing such proceeding to be lodged among the acts of Congress, entered at large on the Journals. It was remarked, that the delegates from Connecticut, particularly Mr. Dyer, were more captious on the occasion than was consistent with a perfect acquiescence in the decree.
Monday, January 6.
The memorial from the army was laid before Congress, and referred to a grand committee. This reference was intended as a mark of the important light in which the memorial was viewed.
Mr. Berkley having represented some inconveniences incident to the plan of a consular convention between France and the United States, particularly the restriction of consuls from trading, and his letter having been committed, a report was made proposing that the convention should for the present be suspended. To this it had been objected that, as the convention might already be concluded, such a step was improper; and as the end might be obtained by authorizing the minister at Versailles to propose particular alterations, that it was unnecessary. By Mr. MADISON it had been moved, that the report should be postponed, to make place for the consideration of an instruction and authority to the said minister for that purpose; and this motion had, in consequence, been brought before Congress. On this day the business revived. The sentiments of the members were various, some wishing to suspend such part of the convention only as excluded consuls from commerce; others thought this exclusion too important to be even suspended; others, again, thought the whole ought to be suspended during the war; and others, lastly, contended that the whole ought to be new modelled, the consuls having too many privileges in some respects, and too little power in others. It was observable that this diversity of opinions prevailed chiefly among the members who had come in since the convention had passed in Congress; the members originally present adhering to the views which then governed them. The subject was finally postponed; eight states only being represented, and nine being requisite for such a question. Even to have suspended the convention, after it had been proposed to the court of France, and possibly acceded to, would have been indecent and dishonorable, and, at a juncture when Great Britain was courting a commercial intimacy, to the probable uneasiness of France, of very mischievous tendency. But experience constantly teaches that new members of a public body do not feel the necessary respect or responsibility for the acts of their predecessors, and that a change of members and of circumstances often proves fatal to consistency and stability of public measures. Some conversation, in private, by the old members with the most judicious of the new, in this instance, has abated the fondness of the latter for innovations, and it is even problematical whether they will be again urged.
In the evening of this day the grand committee met, and agreed to meet again the succeeding evening, for the purpose of a conference with the superintendent of finance.
Tuesday, January 7.
See the Journals.
In the evening, the grand committee had the assigned conference with Mr. Morris, who informed them explicitly that it was impossible to make any advance of pay, in the present state of the finances, to the army, and imprudent to give any assurances with respect to future pay, until certain funds should be previously established. He observed, that even if an advance could be made, it would be unhappy that it should appear to be the effect of demands from the army, as this precedent could not fail to. inspire a distrust of the spontaneous justice of Congress, and to produce repetitions of the expedient. He said that he had taken some measures with a view to a payment for the army, which depended on events not within our command; that he had communicated these measures to General Washington under an injunction of secrecy; that he could not yet disclose them without endangering their success; that the situation of our affairs within his department was so alarming that he had thoughts of asking Congress to appoint a confidential committee to receive communications on that subject, and to sanctify, by their advice, such steps as ought to be taken. Much loose conversation passed on the critical state of things, the defect of a permanent revenue, and the consequences to be apprehended from a disappointment of the mission from the army; which ended in the appointment of Friday evening next for an audience to General M'Dougall, Colonel Brooks, and Colonel Ogden, the deputies on the subject of the memorial, the superintendent to be present.
Wednesday, January 8, Thursday, January 9, and Friday, January 10.
On the report for valuing the land conformably to the rule laid down in the Federal Articles, the delegates from Connecticut contended for postponing the subject during the war, alleging the impediments arising from the possession of New York, &c., by the enemy, but apprehending, as was supposed, that the flourishing state of Connecticut, compared with the Southern States, would render a valuation, at this crisis, unfavorable to the former. Others, particularly Mr. HAMILTON and Mr. MADISON, were of opinion that the rule of the Confederation was a chimerical one, since, if the intervention of the individual states were employed, their interests would give a bias to their judgments, or that at least suspicions of such bias would prevail; and without their intervention, it could not be executed but at an expense, delay, and uncertainty, which were inadmissible; that it would perhaps be, therefore, preferable to represent these difficulties to the states, and recommend an exchange of this rule of dividing the public burdens for one more simple, easy, and equal. The delegates from South Carolina generally, and particularly Mr. RUTLEDGE, advocated the propriety of the constitutional rule, and of an adherence to it, and of the safety of the mode in question arising from the honor of the states. The debates on the subject were interrupted by a letter from the superintendent of finance, informing Congress that the situation of his department required that a committee should be appointed, with power to advise him on the steps proper to be taken; and suggesting an appointment of one, consisting of a member from each state, with authority to give their advice on the subject. This expedient was objected to as improper, since Congress would thereby delegate an incommunicable power, perhaps, and would, at any rate, lend a sanction to a measure without even knowing what it was, not to mention the distrust which it manifested of their own prudence and fidelity. It was, at length, proposed and agreed to, that a special committee, consisting of Mr. Rutledge, Mr. Osgood, and Mr. Madison, should confer with the superintendent of finance on the subject of his letter, and make report to Congress. After the adjournment of Congress, this committee conferred with the superintendent; who, after being apprized of the difficulties which had arisen in Congress, stated to them that the last account of our money affairs in Europe showed that, contrary to his expectations and estimates, there were three and a half millions of livres short of the bills actually drawn; that further drafts were indispensable to prevent a stop to the public service; that, to make good this deficiency, there Wiis only the further success of Mr. Adams's loan, and the friendship of France, to depend on; that it was necessary for him to decide on the expediency of his staking the public credit on those contingent funds by further drafts; and that, in making this decision, he wished for the sanction of a committee of Congress; that this sanction was preferable to that of Congress ​itself only as it would confide the risk attending bills drawn on such funds to a smaller number, and as secrecy was essential in the operation, as well to guard our affairs in general from injury, as the credit of the bills in question from debasement. It was supposed, both by the superintendent and the committee, that there was, in fact, little danger of bills drawn on France, on the credit of the loan of four millions of dollars applied for, being dishonored; since, if the negotiations on foot were to terminate in peace, France would prefer an advance in our favor to exposing us to the necessity of resorting to Great Britain for it; and that if the war should continue, the necessity of such an aid to its prosecution would prevail. The result was, that the committee should make such report as would bring the matter before Congress under an injunction of secrecy, and produce a resolution authorizing the superintendent to draw bills, as the public service might require, on the credit of applications for loans in Europe. The report of the committee to this effect was, accordingly, the next day made and adopted unanimously. Mr. DYER alone at first opposed it, as an unwarrantable and dishonorable presumption on the ability and disposition of France. Being answered, however, that without such a step, or some other expedient, which neither he nor any other had suggested, our credit would be stabbed abroad, and the public service wrecked at home, and that, however mortifying it might be to commit our credit, our faith, and our honor, to the mercy of a foreign nation, it was a mortification which could not be avoided without endangering our very existence, he acquiesced, and the resolution was entered unanimously. The circumstance of unanimity was thought of consequence, as it would evince the more the necessity of the succor, and induce France the more readily to yield to it On this occasion several members were struck with the impropriety of the late attempt to withdraw from France the trust confided to her over the terms of peace, when we were under the necessity of giving so decisive a proof of our dependence on her. It was also adverted to, in private conversation, as a great unhappiness, that, during negotiations for peace, when an appearance of vigor and resource were so desirable, such a proof of our poverty and imbecility could not be avoided.
The conduct of Mr. Howell, &c., had led several, and particularly Mr. PETERS, into an opinion that some further rule and security ought to be provided for concealing matters of a secret nature. On the motion of Mr. PETERS, a committee composed of himself, Mr. Williamson, &c., was appointed to make a report on the subject On this day the report was made. It proposed that members of Congress should each subscribe an instrument pledging their faith and honor not to disclose certain enumerated matters.
The enumeration being very indistinct and objectionable, and a written engagement being held insufficient with those who without it would violate prudence or honor, as well as marking a general distrust of the prudence and honor of Congress, the report was generally disrelished; and, after some debate, in which it was faintly supported by Mr. WILLIAMSON, the committee asked and obtained leave to withdraw it.
A discussion of the report on the mode of valuing the lands was revived. It consisted chiefly of a repetition of the former debates.
In the evening, according to appointment on Tuesday last, the grand committee met, as did the superintendent of finance. The chairman, Mr. WOLCOTT, informed the committee that Colonels Ogden and Brooks, two of the deputies from the army, had given him notice that General M'Dougall, the first of the deputation, was so indisposed with the rheumatism as to be unable to attend, and expressed a desire that the committee would adjourn to his lodging at the Indian Queen Tavern, the deputies being very anxious to finish their business, among other reasons, on account of the scarcity of money with them. At first the committee seemed disposed to comply; but it being suggested, that such an adjournment by a committee of a member from each state would be derogatory from the respect due to themselves, especially as the mission from the army was not within the ordinary course of duty, the idea was dropped. In lieu of it, they adjourned to Monday evening next, on the ostensible reason of the extreme badness of the weather, which had prevented the attendance of several members.
Monday, January 13.
The report on the valuation of land was referred to a grand committee.
A motion was made by Mr. PETERS, seconded by Mr. MADISON, "that a ​committee be appointed to consider the expediency of making further applications for loans in Europe, and to confer with the superintendent of finance on the subject." In support of this motion, Mr. PETERS observed that, notwithstanding the uncertainty of success, the risk of appearing unreasonable in our demands on France, and the general objections against indebting the United States to foreign nations, the crisis of our affairs demanded the experiment; that money must, if possible, be procured for the army, and there was ground to expect that the court of France would be influenced by an apprehension that, in case of her failure, and of a pacification. Great Britain might embrace the opportunity of substituting her favors. Mr. MADISON added, that it was expedient to make the trial, because, if it failed, our situation could not be made worse; that it would be prudent in France, and therefore it. might be expected of her, to afford the United States such supplies as would enable them to disband their army in tranquility, lest some internal convulsions might follow external peace, the issue of which ought not to be hazarded; that as the affections and gratitude of this country, as well as its separation from Great Britain, were her objects in the revolution, it would also be incumbent on her to let the army be disbanded under the impression of deriving their rewards through her friendship to their country; since their temper on their dispersion through the several states, and being mingled in the public councils, would much affect the general temper towards France; and that, if the pay of the army could be converted into a consolidated debt bearing interest, the requisitions on the states for the principal might be reduced to requisitions for the interest, and by that means a favorable revolution so far introduced into our finances.
The motion was opposed by Mr. DYER, because it was improper to augment our foreign debts, and would appear extravagant to France. Several others assented to it with reluctance, and several others expressed serious scruples, as honest men, against levying contributions on the friendship or fears of France or others, whilst the unwillingness of the states to invest Congress with permanent funds rendered a repayment so precarious. The motion was agreed to, and the committee chosen—Mr. Gorham, Mr. Peters, and Mr. Izard.
In the evening, according to appointment, the grand committee gave an audience to the deputies of the army, viz.: General M'Dougall and Colonels Ogden and Brooks. The first introduced the subject by acknowledging the attention manifested to the representations of the army by the appointment of so large a committee; his observations turned chiefly on the three chief topics of the memorial, namely, an immediate advance of pay, adequate provision for the residue, and half-pay. On the first, he insisted on the absolute necessity of the measure, to soothe the discontents both of the officers and soldiers; painted their sufferings and services, their successive hopes and disappointments throughout the whole war, in very high-colored expressions; and signified that, if a disappointment were now repeated, the most serious consequences were to be apprehended; that nothing less than the actual distresses of the army would have induced, at this crisis, so solemn an application to their country; but the seeming approach of peace, and the fear of being still more neglected when the necessity of their services should be over, strongly urged the necessity of it. His two colleagues followed him with a recital of various incidents and circumstances tending to evince the actual distresses of the army, the irritable state in which the deputies left them, and the necessity of the consoling influence of an immediate advance of pay. Colonel OGDEN said, he wished not, indeed, to return to the army, if he was to be the messenger of disappointment to them. The deputies were asked, first, what particular steps they supposed would be taken by the army in case no pay could be immediately advanced; to which they answered, that it was impossible to say precisely; that although the sergeants, and some of the most intelligent privates, had been often observed in sequestered consultations, yet it was not known that any premeditated plan had been formed; that there was sufficient reason to dread that at least a mutiny would ensue, and the rather as the temper of the officers, at least those of inferior grades, would with less vigor than heretofore struggle against it. They remarked, on this occasion, that the situation of the officers was rendered extremely delicate, and had been sorely felt, when called upon to punish in soldiers a breach of engagements to the public, which had been preceded by uniform and flagrant breaches by the latter of its engagements to the former. General M'DOUGALL said, that the army were verging to that state, which, we are told, will make a wise man mad; and Colonel BROOKS said, that his ​apprehensions were drawn from the circumstance that the temper of the army was such that they did not reason or deliberate coolly on consequences, and, therefore, a disappointment might throw them blindly into extremities. They observed, that the irritations of the army had resulted, in part, from the distinctions made between the civil and military lists, the former regularly receiving their salaries, and the latter as regularly left unpaid. They mentioned, in particular, that the members of the legislatures would never agree to an adjournment without paying themselves fully for their services. In answer to this remark it was observed, that the civil officers, on the average, did not derive from their appointments more than the means of their subsistence; and that the military, although not furnished with their pay properly so called, were in fact furnished with the same necessaries.
On the second point, to wit, "adequate provision for the general arrears due to them," the deputies animadverted with surprise, and even indignation, on the repugnance of the states—some of them at least—to establish a federal revenue for discharging the federal engagements. They supposed that the ease, not to say affluence, with which the people at large lived, sufficiently indicated resources far beyond the actual exertions; and that if a proper application of these resources was omitted by the country, and the army thereby exposed to unnecessary sufferings, it must naturally be expected that the patience of the latter would have its limits. As the deputies were sensible that the general disposition of Congress strongly favored this object, they were less diffuse on it. General M'DOUGALL made a remark which may deserve the greater attention, as he stepped from the tenor of his discourse to introduce it, and delivered it with peculiar emphasis. He said that the most intelligent and considerate part of the army were deeply affected at the debility and defects in the federal government, and the unwillingness of the states to cement and invigorate it, as, in case of its dissolution, the benefits expected from the revolution would be greatly impaired; and as, in particular, the contests which might ensue among the states would be sure to embroil the officers which respectively belonged to them.
On the third point, to wit, "half-pay for life," they expressed equal dissatisfaction at the states which opposed it, observing that it formed a part of the wages stipulated to them by Congress, and was but a reasonable provision for the remnant of their lives, which had been freely exposed in the defence of their country, and would be incompatible with a return to occupations and professions for which military habits, of seven years' standing, unfitted them. They complained that this part of their reward had been industriously and artfully stigmatized in many states with the name of pension, although it was as reasonable that those who had lent their blood and services to the public should receive an annuity thereon, as those who had lent their money; and that the officers, whom new arrangements had, from time to time, excluded, actually labored under the opprobrium of pensioners, with the additional mortification of not receiving a shilling of the emoluments. They referred, however, to their memorial to show that they were authorized and ready to commute their half-pay for any equivalent and less exceptionable provision.
After the departure of the deputies, the grand committee appointed a sub-committee, consisting of Mr. Hamilton, Mr. Madison, and Mr. Rutledge, to report arrangements, in concert with the superintendent of finance, for their consideration.
Tuesday, January 14.
Congress adjourned for the meeting of the grand committee, to whom was referred the report concerning the valuation of the lands, and who accordingly met.
The committee were, in general, strongly impressed with the extreme difficulty and inequality, if not impracticability, of fulfilling the article of the Confederation relative to this point; Mr. Rutledge, however, excepted, who, although he did not think the rule so good a one as a census of inhabitants, thought it less impracticable than the other members. And if the valuation of land had not been prescribed by the Federal Articles, the committee would certainly have preferred some other rule of appointment, particularly that of numbers, under certain qualifications as to slaves. As the Federal Constitution, however, left no option, and a few only were disposed to recommend to the states an alteration of it, it was necessary to proceed, ​first, to settle its meaning; secondly, to settle the least objectionable mode of valuation. On the first point it was doubted, by several members, whether the returns which the report under consideration required from the states would not be final, and whether the Articles of Confederation would allow Congress to alter them after they had fixed on this mode; on this point, no vote was taken. A second question, afterwards raised in the course of the discussion, was, how far the articles required a specific valuation, and how far it gave a latitude as to the mode; on this point, also, there was a diversity of opinions, but no vote taken.
Secondly, as to the mode itself, referred to the grand committee, it was strongly objected to by the delegate from Connecticut, Mr. Dyer, by Mr. Hamilton, by Mr. Wilson, by Mr. Carroll, and by Mr. Madison, as leaving the states too much to the bias of interest, as well as too uncertain and tedious in the execution. In favor of the report was Mr. Rutledge, the father of it, who thought the honor of the states, and their mutual confidence, a sufficient security against frauds and the suspicion of them. Mr. Gorham favored the report also, as the least impracticable mode, and as it was necessary to attempt at least some compliance with the federal rule before any attempt could be properly made to vary it An opinion entertained by Massachusetts, that she was comparatively in advance to the United States, made her anxious for a speedy settlement of the mode by which a final apportionment of the common burden could be effected. The sentiments of the other members of the committee were not expressed.
Mr. HAMILTON proposed, in lieu of a reference of the valuation to the states, to class the lands throughout the United States under distinctive descriptions, viz., arable, pasture, wood, &c., and to annex a uniform rate to the several classes, according to their different comparative value, calling on the states only for a return of the quantities and descriptions. This mode would have been acceptable to the more compact and populous states, but was totally inadmissible to the Southern States.
Mr. WILSON proposed, that returns of the quantity of land and of the number of inhabitants in the respective states should be obtained, and a rule deduced from the combination of these data. This also would have affected the states in a similar manner with the proposition of Mr. Hamilton. On the part of the Southern States it was observed, that, besides its being at variance with the text of the Confederation, it would work great injustice, as would every mode which admitted the quantity of lands within the states into the measure of their comparative wealth and abilities.
Lastly, it was proposed by Mr. MADISON, that a valuation should be attempted by Congress without the intervention of the states. He observed, that, as the expense attending the operation would come ultimately from the same pockets, it was not very material whether it was borne in the first instance by Congress or the states, and it at least deserved consideration whether this mode was not preferable to the proposed reference to the states.
The conversation ended in the appointment of a sub-committee, consisting of Mr. Madison, Mr. Carroll and Mr. Wilson, who were desired to consider the several modes proposed, to confer with the superintendent of finance, and make such report to the grand committee as they should judge fit.
Wednesday, January 15.
A letter dated the 19th of December, from General Greene, was received, notifying the evacuation of Charleston. It was, in the first place, referred to the secretary of Congress for publication; excepting the passage which recited the exchange of prisoners, which, being contrary to the resolution of the 16th of October against partial exchanges, was deemed improper for publication. It was in the next place referred to a committee, in order that some complimentary report might be made in favor of General Greene and the southern army. Dr. RAMSAY, having come m after this reference, and being uninformed of it, moved that a committee might be appointed to devise a proper mode of expressing to General Greene the high sense entertained by Congress of his merits and services. In support of his motion, he went into lavish praises of General Greene, and threw out the idea of making him a lieutenant-general. His motion being opposed as somewhat singular and unnecessary, after the reference to General Greene's letter, he withdrew it.
A letter was received from General Washington, enclosing a certificate from Mr. Chittenden, of Vermont, acknowledging the receipt of the communication which ​General Washington had sent him of the proceedings of Congress on the 5th of December.
Thursday, January 16.
Mr. RUTLEDGE informed Congress, that there was reason to apprehend that the train of negotiation in Europe had been so misrepresented in the state of South Carolina, as to make it probable that an attempt might be made in the legislature to repeal the confiscation laws of that state; and even if such attempt should fail, the misrepresentations could not fail to injure the sale of property confiscated in that state. In order, therefore, to frustrate these misrepresentations, he moved that the delegates of South Carolina might be furnished with an extract from the letter of the 14th of October, from Dr. Franklin, so far as it informed Congress "that something had been mentioned to the American plenipotentiaries relative to the refugees and to English debts, but not insisted on; it being answered, on their part, that this was a matter belonging to the individual states, and on which Congress could enter into no stipulations." The motion was seconded by Mr. GERVAIS, and supported by Mr. RAMSAY. It was opposed by Mr. ELLSWORTH and Mr. WOLCOTT as improper, since a communication of this intelligence might encourage the states to extend confiscations to British debts,—a circumstance which would be dishonorable to the United States, and might embarrass a treaty of peace. Mr. FITZSIMMONS expressed the same apprehensions; so did Mr. GORHAM. His colleague, Mr. OSGOOD, was in favor of the motion. By Mr. MADISON the motion was so enlarged and varied as "to leave all the delegates at liberty to communicate the extract to their constituents, in such form and under such cautions as they should judge prudent." The motion, so varied, was adopted by Mr. Rutledge, and substituted in place of the original one. It was, however, still opposed by the opponents of the original motion. Mr. Madison observed that, as all the states had espoused, "in some degree, the doctrine of confiscations, and as some of them had given instructions to their delegates on the subject, it was the duty of Congress, without inquiring into the expediency of confiscations, to prevent, as far as they could, any measures which might impede that object in negotiations for peace, by inducing an opinion that the United States were not firm with respect to it; that in this view it was of consequence to prevent the repeal, and even the attempt of a repeal, of the confiscation law of one of the states; and that if a confidential communication of the extract in question would answer such a purpose, it was improper for Congress to oppose it. On a question, the motion was negatived. Congress being much divided thereon. Several of those who were in the negative were willing that the delegates of South Carolina should be licensed to transmit to their state what related to the refugees, omitting what related to British debts, and invited Mr. Rutledge to renew his motion in that qualified form. Others suggested the propriety of his contradicting the misrepresentations in general, without referring to any official information received by Congress. Mr. Rutledge said he would think further on the subject, and desired that it might lie over.
Friday, January 17.
The committee on the motion of Mr. Peters, of the 13th instant, relative to a further application for foreign loans, reported that they had conferred with the superintendent of finance, and concurred in opinion with him, that the applications already on foot were as great as could be made prudently, until proper funds should be established. The latent view of this report was to strengthen the argument in favor of such funds, and the report, it was agreed, should lie on the table, to be considered along with the report which might be made on the memorial from the army and which would involve the same subject.
The report thanking General Greene for his services was agreed to without opposition or observation. Several, however, thought it badly composed, and that some notice ought to have been taken of Major Burnet, aid to General Greene, who was the bearer of the letter announcing the evacuation of Charleston.
Mr. Webster and Mr. Judd, agents for the deranged officers of the Massachusetts and Connecticut lines, were heard by the grand committee in favor of their constituents. The sum of their representations was, that the said officers were equally distressed for, entitled to, and in expectation of, provision for fulfilling the rewards stipulated to them as officers retained in service.
From Friday, 17, to Tuesday, 21.
See Journals.
A letter from Mr. Adams, of the 8th of October, 1782, containing: prophetic. observations relative to the expedition of Lord Howe for the relief of Gibraltar, and its consequences, &c. &c., excited, &c. &c.
Another letter from the same, relative to the treaty of amity and commerce, and the convention with the States General concerning vessels recaptured, copies of which accompanied the letters. These papers were committed to Mr. Madison, Mr. Hamilton, and Mr. Ellsworth.
Wednesday, January 22.
Congress adjourned to give the committee on the treaty and convention time to prepare a report thereon.
Thursday, January 23.
The report of the committee last mentioned—consisting of a state of the variations, in the treaty of amity and commerce with the States General, from the plan proposed by Congress, of a form of ratification of the said treaty and of the convention, and of a proclamation comprehending both—was accepted and passed; the variations excepted, which were not meant to be entered on the Journals. Both the committee and Congress were exceedingly chagrined at the extreme incorrectness of the American copies of these national acts, and it was privately talked of as necessary to admonish Mr. Adams thereof, and direct him to procure, with die concurrence of the other party, a more correct and perspicuous copy. The report of the committee, as agreed to, having left a blank in the act of ratification for the insertion of the treaty and convention, and these being contained both in the Dutch and American languages,—the former column signed by the Dutch plenipotentiaries only, and the latter by Mr. Adams only,—the secretary asked the direction of Congress whether both columns, or the American only, ought to be inserted. On this point several observations were made, and different opinions expressed. In general, the members seemed to disapprove of the mode used, and would have preferred the use of a neutral language. As to the request of the secretary, Mr. Wilson was of opinion that the American columns only should be inserted. Several others concurred in this opinion; supposing that, as Mr. Adams had only signed those columns, our ratifications ought to be limited to them. Those who were of a different opinion considered the two parts as inseparable, and as forming one whole, and consequently that both ought to be inserted. The case being a new one to Congress, it was proposed and admitted that the insertion might be suspended till the next day, by which time some authorities might be consulted on the subject.
A committee, consisting of Mr. Madison, Mr. Mifflin, and Mr. Williamson, reported, in consequence of a motion of Mr. Bland, a list of books proper for the use of Congress, and proposed that the secretary should be instructed to procure the same. In favor of the report, it was urged, as indispensable, that Congress should have at all times at command such authors on the law of nations, treaties, negotiations, &c., as would render their proceedings in such cases conformable to propriety; and it was observed, that the want of this information was manifest in several important acts of Congress. It was further observed, that no time ought to be lost in collecting every book and tract which related to American antiquities and the affairs of the United States, since many of the most valuable of these were every day becoming extinct; and they were necessary, not only as materials for a History of the United States, but might be rendered still more so by future pretensions against their rights from Spain, or other powers which had shared in the discoveries and possessions of the New World. Against the report were urged, first, the inconvenience of advancing even a few hundred pounds at this crisis; secondly, the difference of expense between procuring the books during the war and after a peace. These objections prevailed by a considerable majority. A motion was then made by Mr. WILSON, seconded by Mr. MADISON, to confine the purchase, for the present, to the most essential part of the books. This also was negatived.
Friday, January 24.
Some days prior to this, sundry papers had been laid before Congress by the war office, snowing that a cargo of supplies which had arrived at Wilmington for the ​British and German prisoners of war, under a passport from the commander-in-chief, and which were thence proceeding by land to their destination, had been seized by sundry persons in Chester county, under a law of Pennsylvania, which required in such cases a license from the executive authority, who exposed to confiscation all articles not necessary for the prisoners, and referred the question of necessity to the judgment of its own magistrates. Congress unanimously considered the violation of the passport, issued under their authority, as an encroachment on their constitutional and essential rights; but, being disposed to get over the difficulty as gently as possible, appointed a committee, consisting of Mr. Rutledge, Mr. Wolcott, and Mr. Madison, to confer with the executive of Pennsylvania on the subject. In the first conference, the executive represented to the committee the concern they felt at the incident, their disposition to respect and support the dignity and rights of the federal sovereignty, and the embarrassments in which they were involved by a recent and express law of the state to which they were bound to conform. The committee observed to them, that the power of granting passports for the purpose in question being inseparable from the general power of war delegated to Congress, and being essential for conducting the war, it could not be expected that Congress would acquiesce in any infractions upon it; that as Pennsylvania had concurred in the alienation of this power to Congress, any law whatever contravening it was necessarily void, and could impose no obligation on the executive. The latter requested further time for a consideration of the case, and laid it before the legislature, then sitting; in consequence of which a committee of their body was appointed, jointly with the executive, to confer with the committee of Congress. In this second conference, the first remarks made by the committee of Congress were repeated. The committee of the legislature expressed an unwillingness to intrench on the jurisdiction of Congress, but some of them seemed not to be fully satisfied that the law of the state did so. Mr. Montgomery, lately a member of Congress, observed that, although the general power of war was given to Congress, yet that the mode of exercising that power might be regulated by the states in any manner which would not frustrate the power, and which their policy might require. To this it was answered, that if Congress had the power at all, it could not, either by the Articles of Confederation or the reason of things, admit of such a controlling power in each of the states; and that to admit such a construction would be a virtual surrender to the states of their whole federal power relative to war, the most essential of all the powers delegated to Congress. The committee of the legislature represented, as the great difficulty with them, that even a repeal of the law would not remedy the case without a retrospective law, which their constitution would not admit of, and expressed an earnest desire that some accommodating plan might be hit upon. They proposed, in order to induce the seizors to waive their appeal to the law of the state, that Congress would allow them to appoint one of two persons who should have authority to examine into the supplies, and decide whether they comprehended any articles that were not warranted by the passport The committee of Congress answered, that whatever obstacles might lie in the way of redress by the legislature, if no redress proceeded from them, equal difficulties would lie on the other aide; since Congress, in case of a confiscation of the supplies under the law, which the omission of some formalities required by it would probably produce, would be obliged, by honor and good faith, to indemnify the enemy for their loss out of the common treasury; that the other states would probably demand a reimbursement to the United States from Pennsylvania, and that it was impossible to say to what extremity the affair might be carried. They observed to the committee of the legislature and executive, that although Congress was disposed to make all allowances, and particularly in the case ot a law passed for a purpose recommended by themselves, yet they could not condescend to any expedient which in any manner departed from the respect which they owed to themselves and to the Articles of union. The committee of Congress, however, suggested that, as the only expedient which would get rid of the clashing of the power of Congress and the law of the state would be the dissuading the seizors from their appeal to the latter, it was probable that, if the seizors would apply to Congress for redress, such steps would be taken as would be satisfactory. The hint was embraced, and both the executive and the committee of the legislature promised to use their influence with the persons of most influence among the seizors for that purpose. In consequence thereof, a memorial from John Hannum, Persifor Frazer, and Joseph Gardner, was ​sent in to Congress, committed to the same committee of Congress, and their report of this day agreed to, in which the president of Pennsylvania is requested to appoint one of the referees. It is proper to observe, that this business was conducted with great temper and harmony; and that President Dickinson, in particular, manifested throughout the course of it, as great a desire to save the rights and dignity of Congress, as those of the state over which he presided. As a few of the seizors only were parties to the memorial to Congress, it is still uncertain whether others may not adhere to their claims under the law, in which case all the embarrassments will be revived.
In a late report which had been drawn up by Mr. Hamilton, and made to Congress, in answer to a memorial from the legislature of Pennsylvania, among other things showing the impossibility Congress had been under of paying their creditors, it was observed, that the aid afforded by the court of France had been appropriated by that court, at the time, to the immediate use of the army. This clause was objected to as unnecessary, and as dishonorable to Congress. The fact also was controverted. Mr. Hamilton and Mr. Fitzsimmons justified the expediency of retaining it, in order to justify Congress the more completely, in failing in their engagements to the public creditors. Mr. WILSON and Mr. MADISON proposed to strike out the words "appropriated by France," and substitute the words "applied by Congress to the immediate and necessary support of the army." This proposition would have been readily approved, had it not appeared, on examination, that in one or two small instances, and particularly in the payment of the balance due to Arthur Lee, Esquire, other applications had been made of the aid in question. The report was finally recommitted.
A letter from the superintendent of finance was received and read, acquainting Congress that, as the danger from the enemy, which led him into the department, was disappearing, and he saw little prospect of provision being made, without which injustice would take place, of which he would never be the minister, he proposed not to serve longer than May next, unless proper provision should be made. This letter made a deep and solemn impression on Congress. It was considered as the effect of despondence in Mr. Morris of seeing justice done to the public creditors, or the public finances placed on an honorable establishment; as a source of fresh hopes to the enemy, when known; as ruinous both to domestic and foreign credit; and as producing a vacancy which none knew how to fill, and which no fit man would venture to accept. Mr. GORHAM, after observing that the administration of Mr. Morris had inspired great confidence and expectation in his state, and expressing his extreme regret at the event, moved that the letter should be committed. This was opposed, as unnecessary and nugatory, by Mr. WILSON, since the known firmness of Mr. Morris, after deliberately taking a step, would render all attempts to dissuade him fruitless; and that, as the memorial from the army had brought the subject of funds before Congress, there was no other object for a committee. The motion to commit was disagreed to. Mr. WILSON then moved that a day might be assigned for the consideration of the letter. Against the propriety of this, it was observed, by Mr. MADISON, that the same reasons which opposed a commitment opposed the assignment of any day. Since Congress could not, however anxious their wishes or alarming their apprehensions might be, condescend to solicit Mr. Morris, even if there were a chance of its being successful, and since it would be equally improper for Congress, however cogent a motive it might add in the mind of every member to struggle for substantial funds, to let such a consideration appear in their public acts on that subject, the motion of Mr. Wilson was not passed. Congress, supposing that a knowledge of Mr. Morris's intentions would anticipate the ills likely to attend his actual resignation, ordered his letter to be kept secret.
Nothing being said to-day as to the mode of insertion of the treaty and convention with the States General, the secretary proceeded in retaining both columns.
In consequence of the report of the grand committee on the memorial from the army, by the sub-committee, the following report was made by he former to Congress, and came under consideration to-day.
The grand committee, having considered the contents of the memorial presented by the army, find that they comprehend five different articles.
First. Present pay.
Third. A commutation of the half-pay allowed by different resolutions of Congress for an equivalent in gross.
Fourth. A settlement of the accounts of deficiencies of rations and compensation.
Fifth. A settlement of accounts of deficiencies of clothing and compensation.
The committee are of opinion, with respect to the first, that the superintendent of finance be directed, conformably to measures already taken for that purpose, as soon as the state of the public finances will permit, to make such payment, and in such manner as he shall think proper, till the further order of Congress.
With respect to the second article, so far as relates to the settlement of accounts, that the several states be called upon to complete the settlement, without delay, with their respective lines of the army up to the ——— day of August, 1780; that the superintendent be also directed to take such measures as shall appear to him most proper and effectual for accomplishing the object in the most equitable and satisfactory manner, having regard to former resolutions of Congress, and the settlements made in consequence thereof.—And so far as relates to the providing of security for what shall be found due on such settlement,—Resolved, that the troops of the United States, in common with all the creditors of the same, have an undoubted right to expect such security; and that Congress will make every effort in their power to obtain, from the respective states, general and substantial funds adequate to the object of funding the whole debt of the United States; and that Congress ought to enter upon an immediate and full consideration of the nature of such funds, and the most likely mode of obtaining them.
With respect to the third article, the committee are of opinion that it will be expedient for Congress to leave it to the option of all officers entitled to half-pay, either to preserve their claim to that provision as it now stands by the several resolutions of Congress upon that subject, or to accept ——— years' full pay, to be paid to them in one year after the conclusion of the war, in money, or placed upon good funded security, bearing an annual interest of six per cent.; provided that the allowance to widows and orphans of such officers as have died or been killed, or may die or be killed, in the service during the war, shall remain as established by the resolution of the ——— day of ———.
With respect to the fourth and fifth articles, the committee beg leave to delay their report until they have obtained more precise information than they now possess on the subject.
The first clause of this report, relative to immediate pay, passed without opposition. The superintendent had agreed to make out one month's pay. Indeed, long before the arrival of the deputies, he had made contingent and secret provision for that purpose; and to insure it now, he meant, if necessary, to draw bills on the late application for loans. The words "conformably to measures already taken," referred to the above secret provision, and were meant to show that the payment to the army did not originate in the memorial, but in an antecedent attention to the wants of the army.
In the discussion of the second clause, the epoch of the ——— of August, 1780, was objected to by the eastern delegates. Their states having settled with their lines down to later periods, they wished now to obtain the sanction of Congress to them. After some debate, a compromise was proposed by Mr. HAMILTON, by substituting the last day of December, 1780. This was agreed to without opposition, although several members disliked it The latter part of the clause, beginning with the word "Resolved," &c., was considered as a very solemn point, and the basis of the plans by which the public engagements were to be fulfilled, and union cemented. A motion was made by Mr. BLAND to insert, after the words "in their power," the words "consistent with the Articles of Confederation." This amendment, as he explained it, was not intended to contravene the idea of funds extraneous to the Federal Articles, but to leave those funds for a consideration subsequent to providing constitutional ones. Mr. Arnold, however, eagerly seconded it. No question, however, was taken on it, Congress deeming it proper to postpone the matter till the next day, as of the most solemn nature, and to have as full a representation as possible. With this view, and to get rid of Mr. Bland's motion, they adjourned; ordering all the members not present, and in town, to be summoned.
Saturday, January 25.
The secretary of Congress having suggested to a member that the contract with the court of France specifying the sums due from the United States, although extremely generous on the part of the former, had been ratified without any such acknowledgments by the latter; that this was the first instance in which Buch acknowledgments had been omitted, and that the omission would be singularly improper at a time when we were soliciting further aids; these observations being made to Congress, the ratification was reconsidered, and the words "impressed with," &c., inserted.
The report on the memorial was resumed By Mr. Hamilton. Mr. ​Fitzsimmons, and one or two others who had conversed with Mr. Morris on the change of the last day of December for the ——— day of August, it was suggested that the change entirely contravened the measures pursued by his department; and moved for a reconsideration of it, in order to inquire into the subject Without going into details, they urged this as a reason sufficient. The eastern delegates although, they wished for unanimity and system in future proceedings relative to our funds and finances, were very stiff in retaining the vote which coincided with the steps taken by their constituents. Of this much complaint was made. Mr. RUTLEDGE, on this occasion, alleging that Congress ought not to be led by general suggestions derived from the office of finance, joined by Mr. Gervais, voted against the reconsideration. The consequence was, that South Carolina was divided, and six votes only in favor of the reconsideration. Mr. HAMILTON having expressed his regret at the negative, and explained more exactly the interference of the change of the epoch with the measures and plans of the office of finance, which had limited all state advances and settlements to August ———, 1780, Mr. RUTLEDGE acknowledged the sufficiency of the reasons, and at his instance the latter date was reinstated. On this second question Connecticut also voted for August.
The ——— day of August being reinstated, before a question on the whole paragraph was taken, Mr. GORHAM objected to the word "general" before funds, as ambiguous, and it was struck out; not, however, as improper, if referring to all the states, and not to all objects of taxation. Without this word the clause passed unanimously, even Rhode Island concurring in it.
Congress proceeded to the third clause relative to the commutation of half-pay. A motion was made, by Mr. HAMILTON, to fill the blank with "six;" this was in conformity to tables of Dr. Price, estimating the officers on the average of good lives. Liberality in the rate was urged by several as necessary to give satisfaction, and prevent a refusal of the offer. For this motion there were six ayes, five noes; the Southern States and New York being in the affirmative, the Eastern and New Jersey in the negative. Colonel BLAND proposed six and a half, erroneously supposing the negative of six to have proceeded from its being too low. It was, on the contrary, rather doubtful whether the Eastern States would concur in any arrangement on this head, so averse were they to what they call pensions. Several having calculated that the annual amount of half-pay was between four and five hundred thousand dollars, and the interest of the gross sum nearly two thirds of that sum. Congress were struck with the necessity of proceeding with more caution, and for that purpose committed the report to a committee of five—Mr. Osgood, Mr. Fitzsimmons, Mr. Gervais, Mr. Hamilton, and Mr. Wilson.
On the motion of Mr. WILSON, Monday next was assigned for the consideration of the resolution on the second clause of the report on the memorial from the army. He observed, that this was necessary to prevent the resolution from being, like many others, vox et præterea nihil.
Monday, January 27.
A letter from General Washington was received, notifying the death of Lord Stirling, and enclosing a report of the officer sent to apprehend Knowlton and Wells. (See p. 8.)
The following is an extract from the report:—
"He (one Israel Smith) further said, that Knowlton and Wells had received a letter from Jonathan Arnold, Esquire, at Congress, part of which was made public, which informed them that affairs in Congress were unfavorable to them, and would have them to look out for themselves. What other information this letter contained, he could not say. I found, in my march through the state, that the last-mentioned gentleman was much in favor with all the principal men in that state I had any conversation with."
Mr. ARNOLD, being present at the reading, informed Congress that ho was surprised how such a notion should have prevailed with respect to him; that he had never held any correspondence with either Knowlton or Wells; and requested that he might be furnished with the extract above. In this he was indulged without opposition. But it was generally considered, notwithstanding his denial of the correspondence, that he had, at least at second-hand, conveyed the intelligence to Vermont.
A long petition was read, signed, as alleged, by nearly two thousand inhabitants ​(but all in the same hand-writing) of the territory lately in controversy between Pennsylvania and Virginia, complaining of the grievances to which their distance from public authority exposed them, and particularly of a late law of Pennsylvania interdicting even consultations about a new state within its limits, and praying that Congress would give a sanction to their independence, and admit them into the Union. The petition lay on the table, without a single motion or remark relative to it.
The order of the day was called for—to wit, the resolution of Saturday last in favor of adequate and substantial funds.
The subject was introduced by Mr. WILSON, with some judicious remarks on its importance, and the necessity of a thorough and serious discussion of it. He observed, that the United States had, in the course of the revolution, displayed both an unexampled activity in resisting the enemy, and an unexampled patience under the losses and calamities occasioned by the war. In one point only, he said, they had appeared to be deficient, and that was, a cheerful payment of taxes. In other free governments, it had been seen that taxation had been carried farther, and more patiently borne, than in states where the people were excluded from the governments; the people considering themselves the sovereign as well as the subject, and as receiving with one hand what they paid with the other. The peculiar repugnance of the people of the United States to taxes, he supposed, proceeded, first, from the odious light in which they had been, under the old government, in the habit of regarding them; secondly, from the direct manner in which taxes in this country had been laid, whereas in all other countries taxes were paid in a way that was little felt at the time. That it could not proceed altogether from inability, he said, must be obvious; nay, that the ability of the United States was equal to the public burden, could be demonstrated. According to calculations of the best writers, the inhabitants of Great Britain paid, before the present war, at the annual rate of at least twenty-five shillings sterling per head. According to like calculations, the inhabitants of the United States, before the revolution, paid, indirectly and insensibly, at the rate of at least ten shillings sterling per head. According to the computed depreciation of the paper emissions, the burden insensibly borne by the inhabitants of the United States had amounted, during the first three or four years of the war, to not less than twenty millions of dollars per annum—a burden, too, which was the more oppressive as it fell very unequally on the people. An inability, therefore, could not be urged as a plea for the extreme deficiency of the revenue contributed by the states, which did not amount, during the past year, to half a million of dollars; that is, to one sixth of a dollar per head. Some more effectual mode of drawing forth the resources of the country was necessary. That, in particular, it was necessary that such funds should be established as would enable Congress to fulfil those engagements which they had been enabled to enter into. It was essential, he contended, that those to whom was delegated the power of making war or peace should, in some way or other, have the means of effectuating these objects; that, as Congress had been under the necessity of contracting a large debt, justice required that such funds should be placed in their hands as would discharge it; that such funds were also necessary for carrying on the war, and as Congress found themselves, in their present situation, destitute both of the faculty of paying debts already contracted, and of providing for future exigencies, it was their duty to lay that situation before their constituents, and at least to come to an éclaircissement on the subject. He remarked, that the establishment of certain funds for paying would set afloat the public paper; adding, that a public debt, resting on general funds, would operate as a cement to the Confederacy, and might contribute to prolong its existence, after the foreign danger ceased to counteract its tendency to dissolution. He concluded with moving that it be resolved,—
"That it is the opinion of Congress that complete justice cannot be done to the creditors of the United States, nor the restoration of public credit be effected, nor the future exigencies of the war provided for, but by the establishment of general funds, to be collected by Congress."
This motion was seconded by Mr. FITZSIMMONS.
Mr. BLAND desired that Congress would, before the discussion proceeded further, receive a communication of sundry papers transmitted to the Virginia ​delegates by the executive of that state, two of which had relation to the question before Congress. These were—first, a resolution of the General Assembly, declaring its inability to pay more than fifty thousand pounds, Virginia currency, towards complying with the demands of Congress; secondly, the act repealing the act granting the impost of five per cent. These papers were received and read.
Mr. WOLCOTT expressed some astonishment at the inconsistency of these two acts of Virginia; supposed that they had an unfavorable aspect on the business before Congress, and proposed that the latter should be postponed for the present. He was not seconded.
Mr. GORHAM favored the general idea of the motion, animadverting on the refusal of Virginia to contribute the necessary sums, and at the same moment repealing her concurrence in the only scheme that promised to supply a deficiency of contributions. He thought the motion,- however, inaccurately expressed, since the word "general" might be understood to refer to every possible object of taxation, as well as to the operation of a particular tax throughout the states. He observed that the non-payment of the one million two hundred thousand dollars demanded oy Congress, for paying the interest of the debts for the year ———, demonstrated that the constitutional mode of annual requisitions was defective; he intimated that lands were already sufficiently taxed, and that polls and commerce were the most proper objects. At his instance, the latter part of the motion was so amended as to run "establishment of permanent and adequate funds to operate generally throughout the United States."
Mr. HAMILTON went extensively into the subject; the sum of it was as follows: he observed that funds considered as permanent sources of revenue were of two kinds—first, such as would extend generally and uniformly throughout the United States, and would be collected under the authority of Congress; secondly, such as might be established separately within each state, and might consist of any objects which were chosen by the states, and might be collected either under the authority of the states or of Congress. Funds of the first kind, he contended, were preferable; as being, first, more simple, the difficulties attending the mode of fixing the quotas laid down in the Confederation rendering it extremely complicated, and in a manner insuperable; secondly, as being more certain, since the states, according to the said plan, would probably retain the collection of the revenue, and a vicious system of collection prevailed generally throughout the United States—a system by which the collectors were chosen by the people, and made their offices more subservient to their popularity than to the public revenue; thirdly, as being more economical, since the collection would be effected with fewer officers, under the management of Congress, than under that of the states.
Mr. GORHAM observed, that Mr. Hamilton was mistaken in the representation he had given of the collection of taxes in several of the states, particularly in that of Massachusetts, where the collection was on a footing which rendered it sufficiently certain.
Mr. WILSON, having risen to explain something which had fallen from him, threw out the suggestion that several branches of the revenue, if yielded by all the states, would perhaps be more just and satisfactory than any single one; for example, an impost on trade combined with a land tax.
Mr. DVER expressed a strong dislike to a collection by officers appointed under Congress, and supposed the states would never be brought to consent to it.
Mr. RAMSAY was decidedly in favor of the proposition. Justice, he said, entitled those who had lent their money and services to the United States to look to them for payment; that if general and certain revenues were not provided, the consequence would be that the army and public creditors would have soon to look to their respective states only for satisfaction; that the burden in this case would fall unequally on the states; that rivalships relative to trade would impede a regular impost, and would produce confusion among the states; that some of the states would never make, of themselves, provision for half-pay, and that the army would be so far defrauded of the rewards stipulated to them by Congress; that although it might be uncertain whether the states would accede to plans founded on the proposition before the house, yet, as Congress was convinced of its truth and importance, it was their duty to make the experiment.
​Mr. BLAND thought, that the ideas of the states on the subject were so averse to a general revenue in the hands of Congress, that if such a revenue were proper it was unattainable; that as the deficiency of the contributions from the states, proceeded, not from their complaints of their inability, but of the inequality of the apportionments, it would be a wiser course to pursue the rule of the Confederation, to wit, to ground the requisition on an actual valuation of lands; that Congress would then stand on firm ground, and try a practicable mode.
Tuesday, January 28.
The subject yesterday under discussion was resumed. A division of the question was called for by Mr. WOLCOTT, so as to leave a distinct question on the words "to be collected by Congress," which he did not like.
Mr. WILSON considered this mode of collection as essential to the idea of a general revenue, since, without it, the proceeds of the revenue would depend entirely on the punctuality, energy, and unanimity of the states, the want of which led to the present consideration.
Mr. HAMILTON was strenuously of the same opinion.
Mr. FITZSIMMONS informed Congress that the legislature of Pennsylvania had, at their last meeting, been dissuaded from appropriating their revenue to the payment of their own citizens, creditors of the United States, instead of remitting it to the Continental treasury, merely by the urgent representations of a committee of Congress, and by the hope that some general system in favor of all the public creditors would be adopted; that the legislature were now again assembled, and, although sensible of the tendency of such an example, thought it their duty, and meant, in case the prospect of such a system vanished, to proceed immediately to the separate appropriations formerly in contemplation.
On the motion of Mr. MADISON, the whole proposition was new-modelled, as follows:—
"That it is the opinion of Congress that the establishment of permanent and adequate funds, to operate generally throughout the United States, is indispensably necessary for doing complete justice to the creditors of the United States, for restoring public credit, and for providing for the future exigencies of the war."
The words "to be collected under the authority of Congress" were, as a separate question, left to be added afterwards.
Mr. RUTLEDGE objected to the term "generally," as implying a degree of uniformity in the tax which would render it unequal. He had in view, particularly, a land tax, according to quality, as had been proposed by the office of finance. He thought the prejudices of the people opposed the idea of a general tax; and seemed, on the whole, to be disinclined to it himself, at least if extended beyond an impost on trade; urging the necessity of pursuing a valuation of land, and requisitions grounded thereon.
Mr. LEE seconded the opposition to the term "general." He contended that the states would never consent to a uniform tax, because it would be unequal; that it was, moreover, repugnant to the Articles of Confederation; and, by placing the purse in the same hands with the sword, was subversive of the fundamental principles of liberty. He mentioned the repeal of the impost by Virginia—himself alone opposing it, and that, too, on the inexpediency in point of time—as proof of the aversion to a general revenue. He reasoned upon the subject, finally, as if it was proposed that Congress should assume and exercise a power immediately, and without the sanction of the states, of levying money on them.
Mr. WILSON rose, and explained the import of the motion to be, that Congress should recommend to the states the investing them with power. He observed that the Confederation was so fur from precluding, that it expressly provided for, future alterations; that the power given to Congress by that act was too little, not too formidable; that there was more of a centrifugal than centripetal force in the states, and that the funding of a common debt in the manner proposed would produce a salutary invigoration and cement to the Union.
Mr. ELLSWORTH acknowledged himself to be undecided in his opinion; that, on the one side, he felt the necessity of Continental funds for making good the ​Continental engagements; but, on the other, desponded of a unanimous concurrence of the states in such an establishment. He observed, that it was a question of great importance, how far the federal government can or ought to exert coercion against delinquent members of the Confederacy; and that without such coercion, no certainty could attend the constitutional mode which referred every thing to the unanimous punctuality of thirteen different councils. Considering, therefore, a Continental revenue as unattainable, and periodical requisitions from Congress as inadequate, he was inclined to make trial of the middle mode of permanent state funds, to be provided at the recommendation of Congress, and appropriated to the discharge of the common debt.
Mr. HAMILTON, in reply to Mr. ELLSWORTH, dwelt long on the inefficacy of state funds. He supposed, too, that greater obstacles would arise to the execution of the plan than to that of a general revenue. As an additional reason for the latter to be collected by officers under the appointment of Congress, he signified, that, as the energy of the federal government was evidently short of the degree necessary for pervading and uniting the states, it was expedient to introduce the influence of officers deriving their emoluments from, and consequently interested in supporting the power of, Congress.
Mr. WILLIAMSON was of opinion, that Continental funds, although desirable, were unattainable, at least to the full amount of the public exigencies. He thought, if they could be obtained for the foreign debt, it would be as much as could be expected, and that they would also be less essential for the domestic debt.
Mr. MADISON observed, that it was needless to go into proofs of the necessity of paying the public debts; that the idea of erecting our national independence on the ruins of public faith and national honor must be horrid to every mind which retained either honesty or pride; that the motion before Congress contained a simple proposition, with respect to the truth of which every member was called upon to give his opinion; that this opinion must necessarily be in the affirmative, unless the several objects of doing justice to the public creditors, &c. &c., could be compassed by some other plan than the one proposed; that the two last objects depended essentially on the first; since the doing justice to the creditors would alone restore public credit, and the restoration of this would alone provide for the future exigencies of the war. Is, then, a Continental revenue indispensably necessary for doing complete justice, &c.? This is the question. To answer it, the other plans proposed must first be reviewed.
In order to do complete justice to the public creditors, either the principal must be paid off, or the interest paid punctually. The first is admitted to be impossible on any plan. The only plans opposed to the Continental one for the latter purpose are, first, periodical requisitions according to the Federal Articles; secondly, permanent funds established by each state within itself, and the proceeds consigned to the discharge of public debts.
Will the first be adequate to the object? The contrary seems to be maintained by no one. If reason did not sufficiently premonish, experience has sufficiently demonstrated, that a punctual and unfailing compliance, by thirteen separate and independent governments, with periodical demands of money from Congress, can never be reckoned upon with the certainty requisite to satisfy our creditors, or to tempt others to become our creditors in future.
Secondly. Will funds separately established within each state, and the amount submitted to the appropriation of Congress, be adequate to the object? The only advantage which is thought to recommend this plan is, that the states will be with less difficulty prevailed upon to adopt it. Its imperfections are, first, that it must be preceded by a final and satisfactory adjustment of all accounts between the United States and individual states, and by an apportionment founded on a valuation of all the lands throughout each of the states, in pursuance of the law of the Confederation; for although the states do not as yet insist on these prerequisites in the case of ​annual demands on them, with which they very little comply, and that only in the way of an open account, yet these conditions would certainly be exacted in case of a permanent cession of revenue; and the difficulties and delays, to say the least, incident to these conditions, can escape no one. Secondly, the produce of the funds being always, in the first instance, in the hands and under the control of the states separately, might, at any time, and on various pretences, be diverted to state objects. Thirdly, that jealousy which is as natural to the states as to individuals, and of which so many proofs have appeared, that others will not fulfil their respective portions of the common obligations, will be continually and mutually suspending remittances to the common treasury, until it finally stops them altogether. These imperfections are too radical to be admitted into any plan intended for the purposes in question.
It remains to examine the merits of a plan of a general revenue operating throughout the United States, under the superintendence of Congress.
One obvious advantage is suggested by the last objection to separate revenues in the different states; that is, it will exclude all jealousy among them on that head, since each will know, whilst it is submitting to the tax, that all the others are necessarily at the same instant bearing their respective portions of the burden. Again, it will take from the states the opportunity, as well as the temptation, to divert their incomes from the general to internal purposes, since those incomes will pass directly into the treasury of the United States.
Another advantage attending a general revenue is, that, in case of the concurrence of the states in establishing it, it would become soonest productive, and would, consequently, soonest obtain the objects in view; nay, so assured a prospect would give instantaneous confidence and content to the public creditors at home and abroad, and place our affairs in a most happy train.
The consequences, with respect to the Union, of omitting such a provision for the debts of the Union, also claimed particular attention. The tenor of the memorial from Pennsylvania, and of the information just given on the floor by one of its delegates, (Mr. FITZSIMMONS,) renders it extremely probable that that state would, as soon as it should be known that Congress had declined such provision, or the states rejected it, appropriate the revenue required by Congress to the payment of its own citizens and troops, creditors of the United States. The irregular conduct of other states on this subject, enforced by such an example, could not fail to spread the evil throughout the whole continent. What, then, would become of the Confederation? What would be the authority of Congress? What the tie by which the states could be held together? What the source by which the army could be subsisted and clothed? What the mode of dividing and discharging our foreign debts? What the rule of settling the internal accounts? What the tribunal by which controversies among the states could be adjudicated?
It ought to be carefully remembered, that this subject was brought before Congress by a very solemn appeal from the army to the justice and gratitude of their country. Besides immediate pay, they ask for permanent security for arrears. Is not this request a reasonable one? Will it be just or politic to pass over the only adequate security that can be devised, and, instead of fulfilling the stipulations of the United States to them, to leave them to seek their rewards separately from the states to which they respectively belong? The patience of the army has been equal to their bravery; but that patience must have its limits, and the result of despair cannot be foreseen, nor ought to be asked.
It has been objected, against a general revenue, that it contravenes the articles of Confederation. These articles, as has been observed, presupposed the necessity of alterations in the federal system, and have loft a door open for them. They, more over, authorize Congress to borrow money. Now, in order to borrow money, permanent and certain provision is necessary; and if this provision cannot be made in any other way, as has been shown, a general revenue is within the spirit of the Confederation.
It has been objected, that such a revenue is subversive of the sovereignty and liberty of the states. If it were to be assumed, without the free gift of the states, this objection might be of force; but no assumption is proposed. In fact, Congress are already invested by the states with the constitutional authority over the purse as well as the sword. A general revenue would only give this authority a more certain and equal efficacy. They had a right to fix the quantum of money necessary for the common purposes. The right of the states is limited to the mode of supply. A ​requisition of Congress on the states for money is as much a law to them as their revenue acts, when passed, are laws to their respective citizens. If, for want of the faculty or means of enforcing a requisition, the law of Congress proves inefficient, does it not follow that, in order to fulfil the views of the Federal Constitution such a change should be made as will render it efficient? Without such efficiency the end of this Constitution, which is to preserve order and justice among the members of the Union, must fail; as without a like efficiency would the end of state constitutions, which is to preserve like order and justice among their respective members.
It has been objected, that the states have manifested such aversion to the impost on trade, as renders any recommendations of a general revenue hopeless and imprudent It must be admitted that the conduct of the states on that subject is less encouraging than were to be wished. A review of it, however, does not excite despondence. The impost was adopted immediately, and in its utmost latitude, by several of the states. Several, also, which complied partially with it at first, have since complied more liberally. One of them, after long refusal, has complied substantially. Two states only have failed altogether; and, as to one of them, it is not known that its failure has proceeded from a decided opposition to it On the whole, it appears that the necessity and reasonableness of the scheme have been gaining ground among the states. He was aware that one exception ought to be made to this inference; an exception, too, which it peculiarly concerned him to advert to. The state of Virginia, as appears by an act yesterday laid before Congress, has withdrawn its assent once given to the scheme. This circumstance could not but produce some embarrassment in a representative of that stale advocating the scheme—one, too, whose principles were extremely unfavorable to a disregard of the sense of constituents. But it ought not to deter him from listening to considerations which, in the present case, ought to prevail over it One of these considerations was, that, although the delegates who compose Congress more immediately represented, and were amenable to, the states from which they respectively come, yet, in another view, they owed a fidelity to the collective interests of the whole: secondly, although not only the express instructions, but even the declared sense of constituents, as in the present case, were to be a law in general to their representatives, still there were occasions on which the latter ought to hazard personal consequences, from a respect to what his clear conviction determines to be the true interest of the former; and the present he conceived to fall under this exception: lastly, the part he took on the present occasion was the more fully justified to his own mind, by his thorough persuasion that, with the same knowledge of public affairs which his station commanded, the legislature of Virginia would not have repealed the law in favor of the impost, and would even now rescind the appeal.
The result of these observations was, that it was the duty of Congress, under whose authority the public debts had been contracted, to aim at a general revenue, as the only means of discharging them; and that the dictate of justice and gratitude was enforced by a regard to the preservation of the Confederacy, to our reputation abroad, and to our internal tranquillity.
Mr. RUTLEDGE complained that those who so strenuously urged the necessity and competency of a general revenue, operating throughout all the United States at the same time, declined specifying any general objects from which such a revenue could be drawn. He was thought to insinuate that these objects were kept back intentionally, until the general principle could be irrevocably fixed, when Congress would be bound, at all events, to go on with the project; whereupon—
Mr. FITZSIMMONS expressed some concern at the turn which the discussion seemed to be taking. He said, that, unless mutual confidence prevailed, no progress could be made towards the attainment of those ends which all, in some way or other, aimed at It was a mistake to suppose that any specific plan had been preconcerted among the patrons of a general revenue.
Mr. WILSON, with whom the motion originated, gave his assurances that it was neither the effect of preconcert with others, nor of any determinate plan matured by himself; that he had been led into it by the declaration, on Saturday last, by Congress, that substantial funds ought to be provided; by the memorial of the army from ​which that declaration had resulted; by the memorial from the state of Pennsylvania holding out the idea of separate appropriations of her revenue unless provision were made for the public creditors; by the deplorable and dishonorable situation of public affairs, which had compelled Congress to draw bills on the unpromised and contingent bounty of their ally, and which was likely to banish the superintendent of finance, whose place could not be supplied, from his department. He observed, that he had not introduced details into the debate, because he thought them premature, until a general principle should be fixed; and that, as soon as the principle should be fixed, he would, although not furnished with any digested plan, contribute all in his power to the forming such a one.
Mr. RUTLEDGE moved, that the proposition might be committed, in order that some practicable plan might be reported before Congress should declare that it ought to be adopted.
Mr. IZARD seconded the motion, from a conciliatory view.
Mr. MADISON thought the commitment unnecessary, and would have the appearance of delay; that too much delay had already taken place; that the deputation of the army had a right to expect an answer to their memorial as soon as it could be decided by Congress. He differed from Mr. Wilson in thinking that a specification of the objects of a general revenue would be improper, and thought that those who doubted its practicability had a right to expect proof of it from details, before they could be expected to assent to the general principle; but he differed also from Mr. Rutledge, who thought a commitment necessary for the purpose; since his views would be answered by leaving the motion before the House, and giving the debate a greater latitude. He suggested, as practicable objects of a general revenue, first, an impost on trade; secondly, a poll-tax under certain qualifications; thirdly, a land-tax under ditto.
Mr. HAMILTON suggested a house and window tax. He was in favor of the mode of conducting the business urged by Mr. Madison.
On the motion for the commitment, six states were in favor of it, and five against it; so it was lost. In this vote, the merits of the main proposition very little entered.
Mr. LEE said, that it was a waste of time to be forming resolutions and settling principles on this subject. He asked whether these would ever bring any money into the public treasury. His opinion was, that Congress ought, in order to guard against the inconvenience of meetings of the different legislatures at different and even distant periods, to call upon the executives to convoke them all at one period, and to lay before them a full state of our public affairs. He said, the states would never agree to those plans which tended to aggrandize Congress; that they were jealous of the power of Congress, and that he acknowledged himself to be one of those who thought this jealousy not an unreasonable one; that no one who had ever opened a page, or read a line, on the subject of liberty, could be insensible to the danger of surrendering the purse into the same hands which held the sword.
The debate was suspended by an adjournment.
Wednesday, January 20.
Mr. FITZSIMMONS reminded Congress of the numerous inaccuracies and errors in the American column of the treaty with Holland, and proposed that a revision of it, as ratified, should take place, in order that some steps might be taken for redressing the evil. He added, that an accurate comparison of it with the treaty with France ought also to be made, for the purpose of seeing whether it consisted in all its parts with the latter. He desired the committee who had prepared the ratification to give some explanation on the subject to Congress.
​Mr. MADISON, as first on that committee, informed Congress, that the inaccuracies and errors, consisting of misspelling, foreign idioms, and foreign words, obscurity of the sense, &c., were attended to by the committee, and verbally noted to Congress when their report was under consideration; that the committee did not report in writing, as the task was disagreeable, and the faults were not conceived to be of sufficient weight to affect the ratification. He thought it would be improper to reconsider the act, as had been suggested, for the purpose of suspending it on that account or any other; but had no objection, if Congress were disposed, to instruct Mr. Adams to substitute, with the consent of the other party, a more correct counterpart in the American language. The subject was dropped, nobody seeming inclined to urge it.
On the motion of Mr. RUTLEDGE, and for the purpose of extending the discussion to particular objects of general revenue. Congress resolved itself into a committee of the whole, to consider of the most effectual means of restoring public credit; and the proposition relative to general revenue was referred to the committee. Mr. Carroll was elected into the chair, and the proposition taken up.
Mr. BLAND proposed to alter the words of the proposition, so as to make it read establishment of funds "on taxes or duties, to operate generally," &c. This was agreed to as a more correct phraseology. Mr. HAMILTON objected to it at first, supposing, through mistake, that it might exclude the back lands, which was a fund in contemplation of some gentlemen.
Mr. MADISON, having adverted to the jealousy of Mr. RUTLEDGE, of a latent scheme to fix a tax on land according to its quantity, moved that between the words "generally" and "to operate" might be inserted the words "and in just proportion."
Mr. WILSON said he had no objection to this amendment, but that it might be referred to the taxes individually, and unnecessarily fetter Congress; since, if the taxes collectively should operate in just proportion, it would be sufficient. He instanced a land-tax and an impost on trade, the former of which might press hardest on the southern, and the latter on the eastern, but both together might distribute the burden pretty uniformly. From this consideration he moved that the words "on the whole" might be prefixed to the words "in just proportion." This amendment to the amendment of Mr. MADISON was seconded by Mr. BOUDINOT, and agreed to without opposition, as was afterwards the whole amendment.
Mr. WILSON, in order to leave the scheme open for the back lands as a fund for paying the public debts, moved that the proposition might be further altered so as to read, "indispensably necessary towards doing complete justice," &c. The motion was seconded by Mr. BOUDINOT, and passed without opposition.
The main proposition by Mr. WILSON, as thus amended, then passed without opposition, in the words following:—
"That it is the opinion of Congress that the establishment of permanent and adequate funds on taxes or duties, which shall operate generally, and, on the whole, in just proportion, throughout the United States, is indispensably necessary towards doing complete justice to the public creditors, for restoring public credit, and for providing for the future exigencies of the war."
Mr. BLAND proposed, as the only expedient that could produce immediate relief to the public creditors, that Congress should, by a fixed resolution, appropriate to the payment of interest all the moneys which should arise from the requisitions on the states. He thought this would not only give relief to the public creditors, but, by throwing into circulation the stagnant securities, enliven the whole business of taxation. This proposition was not seconded.
Mr. WILSON proceeded to detail to Congress his ideas on the subject of a Continental revenue. He stated the internal debt, liquidated and unliquidated, at 21,000,000 dollars; the foreign debt at 8,000,000 dollars; the actual deficiency of 1782, at 4,000,000 dollars; the probable deficiency of 1783 at 4,000,000 dollars; making, in the whole, 37,000,000 dollars; which, in round numbers, and probably without exceeding the reality, may be called 40,000,000 dollars. The interest of this debt, at six per cent., is 2,400.000 dollars; to which it will be prudent to add 600,000 dollars, which, if the war continues, will be needed, and in case of peace may be applied to a navy. An annual revenue of 3,000,000 of dollars, then, is the sum to be aimed at, and which ought to be under the management of Congress. One of the objects already mentioned, from which this revenue was to be sought, was a poll-tax. This, he thought, was a very proper one, but, unfortunately, the Constitution of Maryland, which forbids this tax, is an insuperable obstacle. Salt he thought a fit article to be taxed, as it is ​consumed in a small degree by all, and in great quantities by none. It had been found so convenient a subject of taxation, that among all nations which have a system of revenue it is made a material branch. In England, a considerable sum is raised from it In France, it is swelled to the sum of 54,000,000 of livres. He thought it would be improper to levy this tax during the war, whilst the price would continue so high; but the necessary fall of price at the conclusion of it would render the tax less sensible to the people. The suspension of this particular tax during the war would not be inconvenient, as it might be set apart for the debt due to France, on which the interest would not be called for during the war. He computed the quantity of salt imported into the United States, annually, at 3,000,000 of bushels, and proposed a duty of one third of a dollar per bushel, which would yield 1,000,000 of dollars. This duty, he observed, would press hardest on the Eastern States, on account of the extraordinary consumption in the fisheries.
The next tax which he suggested was on land. One dollar on every hundred acres, according to the computation of the superintendent of finance, would produce 500,000 dollars. This computation, he was persuaded, might be doubled; since there could not be less than 100,000,000 of acres comprehended within the titles of individuals, which, at one dollar per hundred acres, yields 1,000,000 of dollars. This tax could not be deemed too high, and would bear heaviest, not on the industrious farmer, but on the great landholder. As the tax on salt would fall with most weight on the Eastern States, the equilibrium would be restored by this, which would be most felt by the Middle and Southern States.
The impost on trade was another source of revenue, which, although it might be proper to vary it somewhat, in order to remove particular objections, ought to be again and again urged upon the states by Congress. The office of finance has rated this at 500,000 dollars. He thought a peace would double it, in which case the sum of 3,000,000 would be made up. If these computations, however, should be found to be too high, there will still be other objects which would bear taxation. An excise, he said, had been mentioned. In general, this species of taxation was tyrannical and justly obnoxious, but in certain forms had been found consistent with the policy of the freest states. In Massachusetts, a state remarkably jealous of its liberty, an excise was not only admitted before, but continued since, the revolution. The same was the case with Pennsylvania, also remarkable for its freedom. An excise, if so modified as not to offend the spirit of liberty, may be considered as an object of easy and equal revenue. Wine and imported spirits had borne a heavy excise in other countries, and might be adopted in ours. Coffee is another object which might be included. The amount of these three objects is uncertain, but materials for a satisfactory computation might be procured. These hints and remarks he acknowledged to be extremely imperfect, and that he had been led to make them solely by a desire to contribute his mite towards such a system as would place the finances of the United States on an honorable and prosperous footing.
Mr. GORHAM observed, that the proposition of Mr. Bland, however salutary its tendency might be in the respect suggested, could never be admitted, because it would leave our army to starve, and all our affairs to stagnate, during its immediate operation. He objected to a duty on salt, as not only bearing too heavily on the Eastern States, but as giving a dangerous advantage to rivals in the fisheries. Salt, he said, exported from England for the fisheries, is exempted particularly from duties. He thought it would be best to confine our attention, for the present, to the impost on trade, which had been carried so far towards an accomplishment, and to remove the objections which had retarded it, by limiting the term of its continuance, leaving; to the states the nomination of the collectors, and by making the appropriation of it more specific.
Mr. RUTLEDGE was also for confining our attention to the impost, and to get that before any further attempts were made. In order to succeed in petting it, however, he thought it ought to be asked in a new form. Few of the states had complied with the recommendation of Congress, literally. Georgia had not yet complied. Rhode Island had absolutely refused to comply at all. Virginia, which at first complied but partially, has since rescinded even that partial compliance. After enumerating the several objections urged by the states against the scheme, he proposed, in order to remove them, the following resolution, viz.:—
"That it be earnestly recommended to the several states, to impose and levy a duty of five per cent., ad valorem, at the time and place of importation, on all goods, wares, and merchandises,
of foreign growth and manufacture, which may be imported into the said states, respectively except goods of the United States or any of them, and a like duty on all prizes and prize goods condemned in the court of admiralty of said states; that the money arising from such duties be paid into the Continental treasury, to be appropriated and applied to the payment of the interest, and to sink the principal, of the money which the United States have borrowed in Europe, and of what they may borrow; for discharging the arrears due to the army, and for the future support of the war, and to no other use or purpose whatsoever; that the said duties be continued for twenty-five years, unless the debts above mentioned be discharged in the mean time, in which case, they shall cease and determine; that the money arising from the said duties, and paid by any state, be passed to the credit of such state on account of its quota of the debt of the United States."
The motion was seconded by Mr. LEE.
Mr. WOLCOTT opposed the motion, as unjust towards those states which, having few or no ports, receive their merchandise through the ports of others; repeating the observation that it is the consumer, and not the importer, who pays the duty. He again animadverted on the conduct of Virginia in first giving, and afterwards withdrawing, her assent to the impost recommended by Congress.
Mr. ELLSWORTH thought it wrong to couple any other objects with the impost; that the states would give this, if any thing; and that, if a land tax or excise were combined with it, the whole scheme would fail. He thought, however, that some modification of the plan recommended by Congress would be necessary. He supposed, when the benefits of this Continental revenue should be experienced, it would incline the states to concur in making additions to it. He abetted the opposition of Mr. Wolcott to the motion of Mr. Rutledge, which proposed that each state should be credited for the duties collected within its ports; dwelt on the injustice of it; said that Connecticut, before the revolution, did not import one fiftieth, perhaps not one hundredth, part of the merchandise consumed within it, and pronounced that such a plan would never be agreed to. He concurred in the expediency of new-modelling the scheme of the impost by defining the period of its continuance; by leaving to the state the nomination, and to Congress the appointment, of collectors, or vice versa, and by a more determinate appropriation of the revenue. The first object to which it ought to be applied was, he thought, the foreign debt. This object claimed a preference, as well from the hope of facilitating further aids from that quarter as from the disputes in which a failure may embroil the United States. The prejudice against making a provision for foreign debts which should not include the domestic ones was, he thought, unjust, and might be satisfied by immediately requiring a tax, in discharge of which loan-office certificates should be receivable. State funds, for the domestic debts, would be proper for subsequent consideration. He added, as a further objection against crediting the states for the duties on trade respectively collected by them, that a mutual jealousy of injuring their trade by being foremost in imposing such a duty would prevent any from making a beginning.
Mr. WILLIAMSON said, that Mr. Rutledge's motion, at the same time that it removed some objections, introduced such as would be much more fatal to the measure. He was sensible of the necessity of some alterations, particularly in its duration, and the appointment of the collectors. But the crediting the states, severally, for the amount of their collections, was so palpably unjust and injurious, that he thought candor required that it should not be persisted in. He was of opinion that the interest of the states which trade for others also required it, since such an abuse of the advantage possessed by them would compel the states for which they trade to overcome the obstacles of nature, and provide supplies for themselves. North Carolina, he said, would probably be supplied pretty much through Virginia, if the latter forbore to levy a tax on the former; but in case she did not forbear, the ports of North Carolina, which are nearly as deep as those of Holland, might, and probably would, be substituted. The profits drawn by the more commercial states, from the business they carry on for the others, were of themselves sufficient, and ought to satisfy them.
Mr. RAMSAY differed entirely from his colleague, Mr. Rutledge. He thought that, as the consumer pays the tax, the crediting the states collecting the impost unjust. North Carolina, Maryland, New Jersey, and Connecticut, would suffer by such a regulation, and would never agree to it.
Mr. BLAND was equally against the regulation. He thought it replete with injustice, and repugnant to every idea of finance. He observed, that this point had ​been fully canvassed, at the time when the impost was originally recommended by Congress, and finally exploded. He was, indeed, he said, opposed to the whole motion of Mr. Rutledge. Nothing would be a secure pledge to creditors that was not placed out of the control of the grantors. As long as it was in the power of the states to repeal their grants, in this respect, suspicions would prevail, and would prevent loans. Money ought to be appropriated by the states as it is by the Parliament of Great Britain. He proposed that the revenue to be solicited from the states should be irrevocable by them without the consent of Congress or of nine of the states. He disapproved of any determinate limitation to the continuance of the revenue, because the continuance of the debt could not be fixed, and that was the only rule that could be proper or satisfactory. He said he should adhere to these ideas in the face of the act of Virginia repealing her assent to the impost; that it was trifling with Congress to enable them to contract debts, and to withhold from them the means of fulfilling their contracts.
Mr. LEE said, he seconded the motion of Mr. Rutledge, because he thought it most likely to succeed; that he was persuaded the states would not concur in the impost on trade without a limitation of time affixed to it. With such a limitation, and the right of collection, he thought Virginia, Rhode Island; and the other states, probably would concur. The objection of his colleague, Mr. Bland, he conceived to be unfounded. No act of the states could be irrevocable, because, if so called, it might, notwithstanding, be repealed. But he thought there would be no danger of a repeal, observing that the national faith was all the security that was given in other countries, or that could be given. He was sensible that something was, of necessity, to be done in the present alarming crisis, and was willing to strike out the clause crediting the states for their respective collections of the revenue on trade, as it was supposed that it would impede the measure.
Mr. HAMILTON disliked every plan that made but partial provision for the public debts, as an inconsistent and dishonorable departure from the declaration made by Congress on that subject He said, the domestic creditors would take the alarm at any distinctions unfavorable to their claims; that they would withhold their influence from any such measures recommended by Congress; and that it must be principally from their influence on their respective legislatures, that success could be expected to any application from Congress for a general revenue.
Thursday, January 30.
The answer to the memorials from the legislature of Pennsylvania was agreed to as it stands on the Journal, New Jersey alone dissenting.
In the course of its discussion, several expressions were struck out which seemed to reprehend the states for the deficiency of their contributions. In favor of these expressions, it was urged that they were true, and ought to be held forth as the cause of the public difficulties, in justification of Congress. On the other side, it was urged that Congress had, in many respects, been faulty as well as the states—particularly in letting their finances become so disordered before they began to supply any remedy; and that, if this were not the case, it would be more prudent to address to the states a picture of the public distresses and danger than a satire on their faults; since the latter would only irritate them, whereas the former would tend to lead them into the measures supposed by Congress to be essential to the public interest.
The propriety of mentioning to the legislature of Pennsylvania the expedient, into which Congress had been driven, of drawing bills on Spain and Holland without previous warrant, the disappointment attending it, and the deductions ultimately ensuing from the aids destined to the United States by the court of Franco, was also a subject of discussion. On one side, it was represented as a fact which, being dishonorable to Congress, ought not to be proclaimed by them, and that in the present case it could answer no purpose. On the other side, it w as contended that it W88 already known to all the world; that, as a glaring proof of the public embarrassments, it would impress the legislature with the danger of making those separate appropriations which would increase the embarrassments; and particularly would explain, in some degree, the cause of the discontinuance of the French interest due on the loan-office certificates.
Mr. RUTLEDGE, and some other members, having expressed less solicitude ​about satisfying or soothing the creditors within Pennsylvania, through the legislature, than others thought ought to be felt by every one, Mr. WILSON, adverting; to it with some warmth, declared that, if such indifference should prevail, he was little anxious what became of the answer to the memorials. Pennsylvania, he was persuaded, would take her own measures without regard to those of Congress, and that she ought to do so. She was willing, he said, to sink or swim according to the common fate, but that she would not suffer herself, with a mill-stone of six millions of the Continental debt about her neck, to go to the bottom alone.
Friday, January 31.
The instruction to the Virginia delegates from that state, relative to tobacco exported to Now York, under passport from the secretary of Congress, was referred to a committee. Mr. FITZSIMMONS moved that the information received from said state of its inability to contribute more than ——— towards the requisitions of Congress, should be also committed. Mr. BLAND saw no reason for such commitment. Mr. GORHAM was in favor of it. He thought such a resolution from Virginia was of the most serious import, especially if compared with her withdrawal of her assent to the impost. He said, with much earnestness, that, if one state should be connived at in such defaults, others would think themselves entitled to a like indulgence. Massachusetts, he was sure, had a better title to it than Virginia. He said the former had expended immense sums in recruiting her line, which composed almost the whole northern army; that one million two hundred thousand pounds (a dollar at six shillings) had been laid out; and that without this sum the army would have been disbanded.
Mr. FITZSIMMONS abetting the animadversions on Virginia, took notice that of ——— dollars required by Congress from her for the year 1782, she had paid the paltry sum of thirty-five thousand dollars, and was, notwithstanding, endeavoring to play off from further contributions. The commitment took place without opposition.
The sub-committee, consisting of Mr. Madison, Mr. Carroll, and Mr. Wilson, had this morning a conference with the superintendent of finance, on the best mode of estimating the value of land throughout the United States. The superintendent was no less puzzled on the subject than the committee had been. He thought some essay ought to be made for executing the Confederation, if it should be practicable; and if not, to let the impracticability appear to the states. He concurred with the sub-committee, also, in opinion, that it would be improper to refer the valuation to the states, as mutual suspicions of partiality, if not a real partiality, would render the result a source of discontent; and that even if Congress should expressly reserve to themselves a right of revising and rejecting it, such a right could not be exercised without giving extreme offence to the suspected party. To guard against these difficulties it was finally agreed, and the sub-committee accordingly reported to the grand committee,—
That it is expedient to require of the several states a return of all surveyed and granted land within each of them; and that, in such returns, the land be distinguished into occupied and unoccupied.
"That it also was expedient to appoint one commissioner for each state, who should be empowered to proceed, without loss of time, into the several states, and to estimate the value of t le lands therein, according to the returns above mentioned, and to such instructions as should, from time to time, be given him for that purpose."
This report was hurried in to the grand committee for two reasons; first, it was found that Mr. Rutledge, Mr. Bland, and several others, relied so much on a valuation of land, and connected it so essentially with measures for restoring public credit, that an extreme backwardness on their part affected all these measures, whilst the valuation of land was left out. A second reason was, that the sub-committee were afraid that suspicions might arise of intentional delay, in order to confine the attention of Congress to general funds, as affording the only prospect of relief.
The grand committee, for like reasons, were equally impatient to make a report to Congress; and accordingly, after a short consultation, the question was taken, whether the above report of the sub-committee, or the report referred to them, should be preferred. In favor of the first were Mr. Wilson, Mr. Carroll, Mr. Madison, Mr. ​Elmore, Mr. Hamilton. In favor of the second were Mr. Arnold, Mr. Dyer, Mr. Hawkins, Mr. Gorham, Mr. Rutledge, and Mr. Gilman. So the latter was immediately handed in U Congress, and referred to a committee of the whole, into which they immediately resolved themselves.
A motion was made by Mr. BLAND, seconded by Mr. MADISON, that the report should be taken up in preference to the subject of general funds. Mr. WILSON opposed it as irregular and inconvenient to break in on an unfinished subject and supposed that, as some further experiment must be intended than merely a discussion of the subject in Congress, before the subject of general funds would be seriously resumed, he thought it unadvisable to interrupt the latter.
Mr. MADISON answered, that the object was not to retard the latter business, but to remove an obstacle to it; that as the two subjects were, in some degree, connected, as means of restoring public credit, and inseparably connected in the minds of many members, it was but reasonable to admit one as well as the other to a share of attention; that if a valuation of land should be found, on mature deliberation, to be as efficacious a remedy as was by some supposed, it would be proper at least to combine it with the other expedient, or perhaps to substitute it altogether; if the contrary should become apparent, its patrons would join the more cordially in the object of a general revenue.
Mr. HAMILTON concurred in these ideas, and wished the valuation to be taken up, in order that its impracticability and futility might become manifest The motion passed in the affirmative, and the report was taken up.
The phraseology was made more correct in several instances.
A motion was made by Mr. BOUDINOT, seconded by Mr. ELLSWORTH, to strike out the clause requiring a return of "the names of the owners," as well aa the quantity of land. Mr. ELLSWORTH also contended for a less specific return of the parcels of land. The objection against the clause was, that it would be extremely troublesome, and equally useless. Mr. BLAND thought these specific returns would be a check on frauds, and the suspicion of them. Mr. Williamson was of the same opinion, as were also Mr. Lee, Mr. Gorham, and Mr. Ramsay. The motion was withdrawn by Mr. Boudinot.
* ↑ This proposed to require the states to value the land, and return the valuations to Congress.
* ↑ Mr. Hamilton was most strenuous on this point. Mr. Wilson also favored the idea; Mr. Madison also, but restrained, in some measure, by the declared sense of Virginia; Mr. Gorham and several others, also, but wishing previous experience.
* ↑ Drawn by Colonel Hamilton.
* ↑ The papers just read, from Virginia, complained of her inability, without mentioning an inequality. This was deemed a strange assertion.
* ↑ This remark was imprudent, and injurious to the cause which it was meant to serve. This influence was the very source of jealousy which rendered the states averse to a revenue under collection, as well as appropriation of Congress. All the members of Congress who concurred in any degree, with the states in this jealousy, smiled at the disclosure. Mr. Bland, and still more Mr. Lee, who were of this number, took notice, in private conversation, that Mr. Hamilton had let out the secret.
* ↑ He was apprehensive that a tax on land according to its quantity, not value, as had been recommended by Mr. Morris, was in contemplation.
* ↑ A poll-tax to be qualified by rating blacks somewhat lower than whites; a land-tax, by considering the value of land in each stale to be in an inverse proportion of its quantity to the number of people; and apportioning on the aggregate quantity in each state accordingly, leaving the state at liberty to make a distributive apportionment on its several districts on a like or any other equalizing principle.
* ↑ Mr. Hamilton told Mr. Madison, privately, that M. de Marbois, speaking of the treaty, asked him emphatically whether there were not some articles which required animadversion. Mr. H. did not, at the time, know what was alluded to. He now supposed the allusion to be to some article supposed to be inconsistent with the treaty with France; particularly the article referring to the select articles of the latter, instead of the whole; which article, Mr. Adams informed Congress, had been satisfactory to the Duke de la Vauguyon.
* ↑ He supposed that sum due, by the United States, to citizens of Pennsylvania, for loans.
* ↑ Mr. DYER ludicrously proposed, as a proviso to the scheme of referring the valuation to the states, "that each of the states should cheat equally."