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established truth that the purse ought not to be put into the same hands with the sword; that like arguments had been used in favor of ship-money in the reign of Charles the First, it being then represented as essential to the support of the governinent; that the executive should be assured of the means of fulfilling its engagements for the public service. He said, it had been urged by several in behalf of such an establishment for public credit, that without it Congress was nothing more than a rope of sand. On this head he would be explicit; he had rather see Congress a rope of sand than a rod of iron. He urged, finally, as a reason why some states would not, and ought not, to concur in granting to Congress a permanent revenue, that some states (as Virginia) would receive back a small part by payment from the United States to its citizens; whilst others (as Pennsylvania) would receive a vast surplus, and, consequently, be draining the former of its wealth.

Mr. MERCER said, if he conceived the federal compact to be such as it had heen represented, he would immediately withdraw from Congress, and do every thing in his power to destroy its existence; that if Congress had a right to borrow money as they pleased, and to make requisitions on the states that would be binding on them, the liberties of the states were ideal; that requisitions ought to be consonant to the spirit of liberty; that they should go frequently, and accompanied with full information: that the states must be left to judge of the nature of them, of their abilities to comply with them, and to regulate their compliance accordingly; he laid great stress on the omission of Congress to transmit half-yearly to the states an account of the moneys borrowed by them, &c., and even insinuated that this omission had absolved the states, in some degree, from the engagements. He repeated his remarks on the injustice of the rule by which loan-office certificates had been settled, and his opinion that some defalcations would be necessary.

Mr. HOLTON was opposed to all permanent funds, and to every arrangement not within the limits of the Confederation.

Mr. HAMILTON enlarged on the general utility of permanent funds to the federal interests of this country, and pointed out the difference between the nature of the constitution of the British executive and that of the United States, in answer to Mr. Lee's reasoning from the case of ship-money..

Mr. GORHAM adverted, with some warmth, to the doctrines advanced by Mr. Lee and Mr. Mercer, concerning the loan-office creditors. He said the union could never be maintained on any other ground than that of justice; that some states had suffered greatly from the deficiencies of others already; that, if justice was not to be obtained through the federal system, and this system was to fail, as would necessarily follow, it was time this should be known, that some of the states might be forming other confederacies adequate to the purposes of their safety.

This debate was succeeded by a discharge of the committee from the business of devising the means requisite for restoring public credit, &c. &c., and the business referred to a committee, consisting of Mr. Gorham, Mr. Hamilton, Mr. Madison, Mr. Fitzsimmons, and Mr. Rutledge.

No Congress till

TUESDAY, February 25.

In favor of the motion of Mr. GILMAN, (see the Journal of this date,) to refer the officers of the army for their half-pay to their respective states, it was urged that this plan alone would secure to the officers any advantage from that engagement; since Congress had no independent fund out of which it could be fulfilled, and the states of Connecticut and Rhode Island, in particular, would not comply with any recommendation of Congress, nor even requisition, for that purpose. It was also said that it would be satisfactory to the officers; and that it would apportion on the states that part of the public burden with sufficient equality. Mr. DYER said, that the original promise of Congress on that subject was considered, by some of the states, as a fetch upon them, and not within the spirit of the authority delegated Congress. Mr. WOLCOTT said, the states would give Congress nothing whatever, unless they were gratified in this particular. Mr. COLLINS said, Rhode Island had expressly instructed her delegates to oppose every measure tending to an execution of the promise out of moneys under the disposition of Congress.

On the other side, it was urged that the half-pay was a debt as solemnly contracted as any other debt, and was, consequently, as binding, under the 12th article of the Confederation, on the states, and that they could not refuse a requisition made for that purpose;

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that it would be improper to countenance a spirit of that sort by yielding to it; that such concessions on the part of Congress would produce compliances on the part of the states, in other instances, clogged with favorite conditions; that a reference of the officers to the particular states to whose lines they belong would not be satisfactory to the officers of those states who objected to half-pay, and would increase the present irritation of the army; that to do it without their unanimous consent would be a breach of the contract by which the United States, collectively, were bound to them; and, above all, that the proposed plan, which discharged any particular state which should settle with its officers on this subject, although other states might reject the plan, from its proportion of that part of the public burden, was a direct and palpable departure from the law of the Confederation. According to this instrument, the whole public burden of debt must be apportioned according to a valuation of land; nor could any thing but a unanimous concurrence of the states dispense with this law. According to the plan proposed, so much of the public burden as the half-pay should amount to was to be apportioned according to the number of officers belonging to each line; the plan to take effect, as to all those states which should adopt it, without waiting for the unanimous adoption of the states; and that, if Congress had authority to make the number of officers the rule of apportioning one part of the public debt on the states, they might extend the rule to any other arbitrary rule which they should think fit. The motion of Mr. GILMAN was negatived. See the ayes and noes on the Journal.

WEDNESDAY, February 26.

Mr. LEE observed to Congress, that it appeared, from the newspapers of the day, that sundry enormities had been committed by the refugees within the state of Delaware, as it was known that like enormities had been committed on the shores of the Chesapeake, notwithstanding the pacific professions of the enemy; that it was probable, however, that if complaint were to be made to the British commander at New York, the practice would be restrained. He accordingly moved that a committee might be appointed to take into consideration the means of restraining such practices. The motion was seconded by Mr. PETERS. By Mr. FITZSIMMONS the motion was viewed as tending to a request of favors from Sir Guy Carleton. It was apprehended by others that, as General Washington and the commanders of separate armies, had been explicitly informed of the sense of Congress on this point, any fresh measures thereon might appear to be a censure on them; and that Congress could not ground any measure on the case in question, having no official information relative to it. The motion of Mr. LEE was negatived; but it appearing, from the vote, to be the desire of many members that some step might be taken by Congress, the motion of Mr. MADISON and Mr. MERCER, as it stands on the Journal, was proposed and agreed to, as free from all objections.

A motion was made by Mr. HAMILTON to give a brevet commission to Major Burnet, aid to General Greene, and messenger of the, evacuation of Charleston, of lieutenant-colonel; there being six ayes only, the motion was lost; New Hampshire, no; Mr. Lee and Mr. Mercer, no.

The committee, consisting of Mr. Lee, &c., to whom had been referred the motion of Mr. HAMILTON, recommending to the states to authorize Congress to make abatements in the retrospective apportionment, by a valuation of land in favor of states whose ability, from year to year, had been most impaired by the war, reported that it was inexpedient to agree to such motion, because one state (Virginia) having disagreed to such a measure on a former recommendation to Congress, it was not probable that another recommendation would produce any effect; and because the difficulties of making such abatements were greater than the advantages expected from them.

Mr. LEE argued in favor of the report, and the reasons on which it was grounded. The eastern delegations were for leaving the matter open for future determination, when an apportionment should be in question.

Mr. MADISON said, he thought that the principle of the motion was conformable to justice, and within the spirit of the Confederation; according to which, apportionments ought to have been made from time to time, throughout the war, according to the existing wealth of each state; but that it would be improper to take up this case separately from other claims of equity, which would be put in by other states; that the most likely mode of obtaining the concurrence of the states in any plan.

would be to comprehend in it the equitable interests of all of them; a comprehensive plan of that sort would be the only one that would cut off all sources of future controversy among the states; that as soon as the plan of revenue should be prepared for recommendation to the states, it would be proper for Congress to take into consideration, and combine with it, every object* which might facilitate its progress, and for a complete provision for the tranquillity of the United States. The question on Mr. Hamilton's motion was postponed.

The letter from Mr. Morris, requesting that the injunction of secrecy might be withdrawn from his preceding letter, signifying to Congress his purpose of resigning, was committed.

THURSDAY, February 27.

On the report of the committee on Mr. Morris's letter, the injunction of secrecy was taken off without dissent or observation.

The attention of Congress was recalled to the subject of half-pay by Messrs. DYER and WOLCOTT, in order to introduce a reconsideration of the mode of referring it separately to the states to provide for their own lines.

Mr. MERCER favored the reconsideration, representing the commutation proposed as tending, in common with the funding of other debts, to establish and

* He had in view the following objects: First, the abatements proposed by Mr. HAMILTON. Second, a transfer, into the common mass of expenses, of all the separate expenses incurred by the states in their particular defence. Third, an acquisition to the United States of the vacant territory. The plan, thus extended, would affect the interest of the states as follows, viz.: New Hampshire would approve the establishment of a general revenue, as tending to support the Confederacy, to remove causes of future contention, and to secure her trade against separate taxation from the states through which it is carried on. She would also approve of a share in the vacant territory. Having never been much invaded by the enemy, her interest would be opposed to the abatements and throwing all the separate expenditures into the common mass. The discharge of the public debts from the common treasury would not be required by her interest, the loans of her citizens being under her proportion. See the statement of them. Massachusetts is deeply interested in the discharge of the public debts. The expedition to Penobscot alone interests her, she supposes, in making a common mass of expenses; her interest is opposed to abatements; the other would not peculiarly affect her.

Rhode Island, as a weak state, is interested in a general revenue, as tending to support the Confederacy, and prevent future contentions; but against it, as tending to deprive her of the advantage, afforded by her situation, of taxing the commerce of the contiguous states. As tending to discharge, with certainty, the public debts, her proportion of loans interest her rather against it. Having been the seat of war for a considerable time, she might not, perhaps, be opposed to abatements on that account. The exertions for her defence having been previously sanctioned, it is presumed in most instances she would be opposed to making a common mass of expenses. In the acquisition of vacant territory, she is deeply and anxiously interested. Connecticut is interested in a general revenue, as tending to protect her commerce from separate taxation from New York and Rhode Island, and somewhat as providing for loan-office creditors. Her interest is opposed to abatements, and to a common mass of expenses. Since the condemnation of her title to her western claims, she may, perhaps, consider herself as interested in the acquisition of the vacant lands. In other respects, she would not be peculiarly affected.

New York is exceedingly attached to a general revenue, as tending to support the Confederacy, and prevent future contests among the states. Although her citizens are not lenders beyond the proportion of the state, yet individuals of great weight are deeply interested in provision for public debts. In abatements New York is also deeply interested; in making a common mass, also, interested; and since the acceptance of her cession, interested in those of other states.

New Jersey is interested, as a smaller state, in a general revenue, as tending to support the Confederacy, and to prevent future contests, and to guard her commerce against the separate taxation of Pennsylvania and New York. The loans of her citizens are not materially disproportionate. Although this state has been much the theatre of the war, she would not, perhaps, be interested in abatements. Having had a previous sanction for particular expenditures, her interest would be opposed to a common mass. In the vacant territory, she is deeply and anxiously interested."

Pennsylvania is deeply interested in a general revenue, the loans of her citizens amounting to more than one third of that branch of the public debt. As far as a general impost on trade would restrain her from taxing the trade of New Jersey, it would be against her interest. She is interested against abatements, and against a common mass, her expenditures having been always previously sanctioned. In the vacant territory she is also interested.

Delaware is interested, by her weakness, in a general revenue, as tending to support the Confederacy and future tranquillity of the states; but, materially, by the credits of her citizens. Her interest is opposed to abatements, and to a common mass. To the vacant territory she is firmly attached.

Maryland having never been the seat of war, and her citizens being creditors below her pro

perpetuate a moneyed interest in the United States; that this moneyed interest would gain the ascendence of the landed interest; would resort to places of luxury and splendor, and, by their example and influence, become dangerous to our republican constitutions. He said, however, that the variances of opinion and indecision of Congress were alarming, and required that something should be done; that it would be better to new-model the Confederation, or attempt any thing, rather than to do nothing.

Mr. MADISON reminded Congress that the commutation proposed was introduced as a compromise with those to whom the idea of pensions was obnoxious, and observed, that those whose scruples had been relieved by it had rendered it no less obnoxious than before, by stigmatizing it with the name of a perpetuity. He said, the public situation was truly deplorable. If the payment of the capital of the public debts was suggested, it was said, and truly said, to be impossible; if funding them and paying the interest was proposed, it was exclaimed against as establishing a dangerous moneyed interest, as corrupting the public manners, as administering poison to our republican constitutions. He said, he wished the revenue to be established to be such as would extinguish the capital, as well as pay the interest, within the shortest possible period, and was as much opposed to perpetuating the public burdens as any one; but that the discharge of them in some form or other was essential, and that the consequences predicted therefrom could not be more heterogeneous to our republican character and constitutions than a violation of the maxims

portion, her interest lies against a general revenue, otherwise than as she is interested, in common with others, in the support of the Confederacy and tranquillity of the United States; but against abatements, and against a common mass. The vacant lands are a favorite object to her.

Virginia, in common with the Southern States, as likely to enjoy an opulent and defenceless trade, is interested in a general revenue, as tending to secure to her the protection of the Confederacy against the maritime superiority of the Eastern States; but against it, as tending to discharge loan-office debts, and to deprive her of the occasion of taxing North Carolina. She is deeply interested in abatements, and essentially so in a common mass; not only her eccentric expenditures being enormous, but many of her necessary ones having received no previous or subsequent sanction. Her cession of territory would be considered as a sacrifice.

North Carolina is interested in a general revenue, as tending to insure the protection of the Confederacy against the maritime superiority of the Eastern States, and to guard her trade from separate taxation by Virginia and South Carolina. The loans of her citizens are inconsiderable. In abatements, and in a common mass, she is essentially interested. In the article of territory,

she would have to make a sacrifice.

South Carolina is interested, as a weak and exposed state, in a general revenue, as tending to secure to her the protection of the Confederacy against enemies of every kind, and as providing for the public creditors, her citizens being not only loan-office creditors beyond her proportion, but having immense unliquidated demands against the United States. As restraining power over the commerce of North Carolina, a general revenue is opposed to her interests. She is also materially interested in abatements, and in a common mass. In the article of territory, her sacrifice would be inconsiderable.

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Georgia, as a feeble and opulent frontier state, is peculiarly interested in a general revenue, as tending to support the Confederacy. She is also interested in it somewhat by the creditors of her citizens. In abatements she is also interested, and in a common mass essentially so. In the article of territory, she would make an important sacrifice.

To make this plan still more complete, for the purpose of removing all present complaints, and all occasions of future contests, it may be proper to include in it a recommendation to the states to rescind the rule of apportioning pecuniary burdens according to the value of the land, and to substitute that of numbers, reckoning two slaves as equal to one freeman.

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This, it is to be observed, is only the list of loan-office debts. The unliquidated debts, and liquidated debts of other denominations due to individuals, will vary inexpressibly the relative quantum of credits of the several states. It is to be further observed, that this only shows the original credits, transfers having been constant; heretofore they have flowed into Pennsylvania. Other states may hereafter have an influx.

of good faith and common honesty. It was agreed that the report for commuting half-pay should lie on the table till to-morrow, in order to give an opportunity to the delegates of Connecticut to make any proposition relative thereto which they should judge proper.

The report of the committee, consisting of Mr. Gorham, Mr. Hamilton, Mr. Madison, Mr. Rutledge, and Mr. Fitzsimmons, was taken up. It was proposed that, in addition to the impost of five per cent., ad valorem, the states be requested to enable Congress to collect a duty of one eighth of a dollar per bushel on salt imported; of six ninetieths per gallon on all wines, do; and of three ninetieths per gallon on all rum and brandy, do.

On the first article it was observed, on the part of the Eastern States, that this would press peculiarly hard on them, on account of the salt consumed in the fisheries; and that it would, besides, be injurious to the national interest by adding to the cost of fish; and a drawback was suggested.

On the other side, it was observed that the warmer climate and more dispersed settlements of the Southern States required a greater consumption of salt for their provisions; that salt might and would be conveyed to the fisheries without previous importation; that the effect of the duty was too inconsiderable to be felt in the cost of fish; and that the rum in the North-Eastern States being, in a great degree, manufactured at home, they would have greater advantage, in this respect, than the other states could have in the article of salt; that a drawback could not be executed in our complicated government with ease or certainty.

Mr. MERCER, on this occasion, declared, that, although he thought those who opposed a general revenue right in their principles, yet, as they appeared to have formed no plan adequate to the public exigencies, and as he was convinced of the necessity of doing something, he should depart from his first resolution, and strike in with those who were pursuing the plan of a general revenue.

Mr. HOLTEN said, he had come lately into Congress with a predetermination against any measures, for discharging the public engagements, other than those pointed out in the Confederation, and that he had hitherto acted accordingly; but that he saw now so clearly the necessity of making provision for that object, and the inadequacy of the Confederation thereto, that he should concur in recommending to the states a plan of a general revenue.

A question being proposed on the duties on salt, there were nine ayes; New Hampshire alone being no; Rhode Island not present.

It was urged, by some, that the duty on wine should be augmented; but it appeared, on discussion, and some calculations, that the temptation to smuggling would be rendered too strong, and the revenue thereby diminished. Mr. BLAND proposed, that instead of a duty on the gallon, an ad valorem duty should be laid on wine; and this idea, after some loose discussion, was agreed to, few of the members interesting themselves therein, and some of them having previously retired from Congress.

FRIDAY, February 28.

A motion was made by Mr. WOLCOTT and Mr. DYER, to refer the half-pay to the states, little differing from the late motion of Mr. Gilman, except that it specified five years' whole pay as the proper ground of composition with the officers of the respective lines. On this proposition the arguments used for and against Mr. Gilman's motion were recapitulated. It was negatived, Connecticut alone answering in the affirmative, and no division being called for.

On the question to agree to the report for a commutation of five years' whole pay, there being seven ayes only, it was considered whether this was an appropriation, or a new ascertainment of a sum of money necessary for the public service. Some were of opinion, at first, that it did not fall under that description, viz., of an appropriation. Finally, the contrary opinion was deemed, almost unanimously, safest, as well as the most accurate. Another question was, whether seven or nine votes were to decide doubts; whether seven or nine were requisite on any question. Some were of opinion that the secretary ought to make an entry according to his, own judgment, and that that entry should stand unless altered by a positive instruction from Congress. To this it was objected, that it would make the secretary the sovereign in many cases, since a reversal of his entry would be impossible, whatever that entry might be; that, particularly, he might enter seven votes to be affirmative

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