The labor world. [volume] (Duluth, Minn.) 1896-current, 1913-08-16
His Plan Of Finance.

His Plan Of Finance.
! Having done it's work Of organize
tion during its first summer session.
the congress came together again,
January 4, 1870, to attempt the formu-
lation of q policy of government, and
Hamilton at once laid before it plan
for the settlement of the public debt"
which he had drawn. and Washington
had sanctioned. He proposed that
provision should be made for the pay.
ment of the foreign debt in full-that
despised promises ana paper Of the
Confederation, should be funded and
paid; and that the debts contracted by
the several states in the prosecution
of the war for independence should
be assumed by the general govern
ment as the debt of the nation.
No one could doubt that the foreign
debt must be paid in full: to that con.
gress agreed heartily and without he's:
1tation. But there was much in the
rest of the plan to give prudent men
pause. To pay off the paper of The
Confederation would be to give to the
spectators, who had bought it up In
the hope of just such a measure,
gratuity Of many times what they had
paid for it. To assume the state debts
would be taken to mean that the
states were bankrupt or delinquent
that the federal government was to
be their guardian and financial provi
dence, and that the capital OF the
country must look only to the govern.
ment of the nation, not to the govern.
ment Of the states, for security and
profitable employment. This was ma,
tionalizing the government with a ven,
geance, and was plain bid. besides,
to win the money class to it's support.
Members whose constituencies lay
away from the centers Of trade looked
askance at such measures, and
deemed them no better than handing
the government over to the money
lenders of the towns. But boldnesa
and energy prevailed, as they, had pre-
vailed in the adoption Of the Constitu
ton itself, and both measures were
carried through the houses-the first
at once, the second after close and
doubtful struggle-by stratagem and
barter.
j Part Of Plan Opposed.
Jefferson had been in France when
washington called him to assume the
headship of foreign affairs at home:
had not reached New York on his re-
turn voyage until December %, 1889:
and did not take his place in washing.
toms council till March Fl, 1890. All
Gof Hamilton's great plan had by that
time passed congress, except the as.
sumption of the state debts. Upon
that question crisis had been
reached. It had wrought congress to
q dangerous heat Of feeling. Mem.
lbers from the south, where trade was
not much astir and financial interests
told for less than local pride and
sharp jealousy of a too great central
power, were set holly against the
measure; most Of the northern mem
bers were as hotly resolved upon ita
adoption.
Mr. Jefferson must have caught
echoes and rumors Of the great debata
as he fingered at Monticello In order
to adjust his private affairs before en-,
tering upon his duties in the cabinet
The measure had been lost at last
In the house by the narrow margin OF
two votes. But the minority we're in
no humor to submit. They declined to
transact any business at all till they
should be yielded to in this matter,
There we're even ugly threats to be
heard that some would withdraw from
congress and force a dissolution of the
Union rather than make concessions
upon the one side or the other.
Jefferson's Support Won.
! It was to this pass that things had
come when Mr.. Jefferson reached the
seat of government; and his arrival
gave Hamilton an opportunity to show
how consummate politician he could
be in support of his craftsmanship.
The southern members wanted the
seat Of the federal government estab.
l1shed within their reach, upon the Pc.
tomac, where congress might at least
he rid of 1mportunate merchants and
money lenders clamoring at It's DOORS
and OF impracticable Quakers with
their petitions for the abolition OF
slavery; and were almost as hot al
their failure to get their will in that
matter. as the northern. men were ia
lind themselves defeated upon the
question of the state debts.
Mr. Jefferson was fresh upon the
Aeld, was strong among the southern
members, was not embroiled or com
United in the quarrel. Hamilton be
sought him to intervene. The SUCCESS
of tho government was at stake. be
said, and Mr.. Jefferson could plucl
It out of peril. Might it not be that
the southern men would consent tt
vote for the assumption of tho state
debts If the northern members woult
vote for, capital on the Potomac
:. The suggestion came as If upon thu
thought Of the moment, at a chance
meeting on the street, as the two mer
\ walked and talked Of matters of thu
day; but it was very eloquently
I urged. Mr.. Jefferson declared he wa,
IS ~ l.