The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-11-04
WAR DEBT FIXED
NATION CAPITAL
Most Interesting Chapter
of American History
Is Placing Seat
SEVERAL WANTED IT
Decision TO Locate II Near
Georgetown Carried After
Other Plans Failed

ono of tho most interesting chap
tors of American history has to do
with tho initial public debt In ~ {.
The strange story OF youthful ma
ion deliberately assuming an nddcd
burden OF debt that was no ubltga.
ton of its own. and bound up with
HE assumption az that debt II the
ttory Of the city Of Washington. ~
how a. tame so no located whore II
De- on the banks Of tho Potomac rlv-
rr. Hut fU tho debt the capital of
the United Statos might have been
placed at Germantown, IA. or
Wrights Very. or Trenton. ". j.. or
any ono of several other places then
runtendlng Tor tho distinction OF be-
coming tho capital of the new re-
public. says the Kansas city Stor.
And, too, hut for that debt tho feeble
might have tottered along 20 an
carly dissolution.
when tho colonies emerged VIC
torloua from tho war of tho RCvoiu-
tion there was tho piper to pay. az
there IL In all wars There was a
debt contracted abroad, which, In
1853, was estimated at nearly t42,-
600, ,00U, including both principal
aud arrears OF interest. aud which
was known as the foreign debt
There was "A domestic debt. prlnci-
pal and interest OF somewhat moro
xian SIO,OOD,OO0. And In addition TO
this, the several states had indlyidu-
ally contracted debts IN tho interest
ot tho revolution amounting 90 an
estimated sci 100000
At the tims tho constitution went
into operation. March 4, 1859, little
had been done with regard 10 these
debts. Tho foreign debt had heon de-
fnultod IN Interest In varying perl
DDS of from four To six years and
installmcnts OF tho principal duo In
1887 had not been paid; some ro'
duction had been made on tho dom
estic debt through the salo of public
lands, and some OF the states. par
tlculnrly in tho south. had succeed
ed In lowering slightly their individ-
ual debts. Moreover there was a ne
hulosity about tho debts II existed
In many different forms OF credit oh.
legations. n portion OF which had
passed current In the community ms
money and. In company with other
outstanding promises OF tho govern. |
mcnt, hnd deprecated In value.
Such was tho situation whom |
Washington, September II, 1883, 1p-
pointed Alexander Hamilton Seore-
tary OF tho treasury. Az n means OF
strengthening tho young repubho he
realized tho value OF establishing It's
credit both at home and abroad. And
as a means tD that end he set about
funding the debts both domcstic
and foreign. ana assuming the debts
of the Individual states which he |
proposed to fund with tho other
two.
II was Tench Coke. assistant sec
rotary OF tho treasury, who first |
proposed TO Senator Maclay of Penn
sylvia mia, June ~. 1700. that In con-
of tho support of Pennsyl-
vania for the assumption of the
state debt, all OF Hnmilton's influ.
cnco with northern senators ana
members would he used to secure
the permanent seat OF government
on the ausquehanna. Tho same pro-
was made 20 Robert Nor
rls, and no and MaclRy talked II
over, Morris wanted to deal with
Hamilton direct. Accordingly he
wrote Hamilton that he would walk
In the muyping on the Battery and
II Hamilton had anything TO pro.
pose 10 him they might meet there
as II by accident and have a private
without attracting any
attention. They met and Hamilton
fOlu MOLIlh iittAt no ht'NsN NAiS '''
vote IN the senate and five In the
house TO carry through the scheme
of assumption. and that II he could
get these votes, he for his part
would agree TO place the capital
either at Germantown or Mt some
place on the Delaware that might
be agreed upon. Norris agreed to
lay the proposition before the Penn
sylvania delegation. but wanted TO
have Philadelphia named ae the
temporary residence until such time
as the new capital could bo built
Hamilton agreed to think this over,
but next day he sent word that he
could not negotiate about the tenn
porary location. Il
The day Hamiiton'c measure loet
In the house, the excitement was 80
great that all business was sus-
pended. Congress met and adjourned
from day 20 day without doing any
thing. Tho eastern members threat
aned secession and dissolution. Ham
ilton was In despair. Jefferson met
him in the street IN New York. be-
fore the presidents house, The ac-
count OF their interview. and the re-
suit OF IL, which settled not only the
state debt question, but the location
OF the capital is thus related by JEFF
ferson In his memoirs:
"Ie GIamilton) walked back and
forth before tho presidents door for
half an houp Ho painted pathetical-
ly tho temper into which the leSis-