CHAPTER VIII. REVOLUTIONARY WAR DEBT-HOW NORTHERN TRADERS AND SPECULATORS WERE ENRICHED AT THE EXPENSE OF THE SOUTHERN PEOPLE BY THE MANIPULATION OF THE CONTINENTAL AND STATE DEBTS. In the month of January, 1790, Mr. Hamilton, the Secretary of the Treasury, laid before the House of Representatives, at its request, "a plan for the support of the public credit," proposing that the debts of the separate States be assumed by the Congress (without a shadow of Constitutional authority),' and that they, together with the debts contracted by the Continental Congress, be funded, provision for their payment to be made by impost duties, excises, etc., instead of grants of the "waste lands" which had been ceded by certain States. "Several resolutions," says Marshall's Life of Washington, "affirmative of the principles contained in the report of the Secretary, were moved by Mr. Fitzsimmons, of Pennsylvania. To the first, which respected a provision for the foreign debt"-$11,710,000-"the House agreed without a dissenting voice. The second, in favor of appropriating permanent funds for payment of interest on the domestic debt, etc., gave rise to a very 1In the Philadelphia Convention, August 21, Mr. Livingston of the committee, appointed on the 18th, reported that "the Legislature of the United States shall have power to discharge as well the debts of the United States as the debts incurred by the several States during the late war." The report was postponed. On the next day Mr. Morris moved to amend Mr. Livingston's report so that it would read as follows: "The Legislature shall fulfill the engagements and discharge the debts of the United States," thus striking out the State debts. This was agreed to unanimously. -El. Deb., I, 256–57. animated debate." An amendment to allow the public creditors only the then market value of their paperone-eighth of its face value-"was opposed by Messrs. Boudinot, of New Jersey; Lawrence, Ames, and Goodhue, of Massachusetts; Hartley, of Pennsylvania; and Sherman, of Connecticut, and was defeated." "Mr. Madison," says Marshall, "then proposed to pay the present holder of assignable paper the market price, and give the remainder "-seven-eighths of its face value to the original holder. This was opposed by Messrs. Sedgwick, Lawrence, Ames, Gerry, and Goodhue, of Massachusetts; Boudinot, of New Jersey; Hartley, of Pennsylvania; Livermore, of New Hampshire, and others, and was negatived. * * "In the course of the debate severe allusions were made to the conduct of particular States; and the opinions advanced in support of the measure were ascribed to local interests. "After an animated discussion of several days, the question was taken, and the resolution was carried by a small majority; but soon afterwards the delegation from North Carolina took their seats and changed the strength of the parties. By a majority of two voices "31 to 29" the resolution was recommitted and negatived. "A proposition to assume specific sums from each State was then urged, but with no better success.' Now, laying aside Marshall for awhile and turning to Maclay's Journal, we get a better insight into the motives and manoeuvers of the plotters. His account begins some four months before Hamilton's plans were submitted to the Congress. We quote extracts: * * * "August 28, 1789. There was a meeting of the Pennsylvania delegation. The Chief Justice of Pennsylvania and Mr. Petit "-Chairman of the Public CHAPTER VIII. REVOLUTIONARY WAR DEBT-HOW NORTHERN TRADERS AND SPECULATORS WERE ENRICHED AT THE EXPENSE OF THE SOUTHERN PEOPLE BY THE MANIPULATION OF THE CONTINENTAL AND STATE DEBTS. In the month of January, 1790, Mr. Hamilton, the Secretary of the Treasury, laid before the House of Representatives, at its request, "a plan for the support of the public credit," proposing that the debts of the separate States be assumed by the Congress (without a shadow of Constitutional authority),' and that they, together with the debts contracted by the Continental Congress, be funded, provision for their payment to be made by impost duties, excises, etc., instead of grants of the "waste lands" which had been ceded by certain States. "Several resolutions," says Marshall's Life of Washington, "affirmative of the principles contained in the report of the Secretary, were moved by Mr. Fitzsimmons, of Pennsylvania. To the first, which respected a provision for the foreign debt"-$11,710,000-"the House agreed without a dissenting voice. The second, in favor of appropriating permanent funds for payment of interest on the domestic debt, etc., gave rise to a very 1 In the Philadelphia Convention, August 21, Mr. Livingston of the committee, appointed on the 18th, reported that "the Legislature of the United States shall have power to discharge as well the debts of the United States as the debts incurred by the several States during the late war." The report was postponed. On the next day Mr. Morris moved to amend Mr. Livingston's report so that it would read as follows: "The Legislature shall fulfill the engagements and discharge the debts of the United States," thus striking out the State debts. This was agreed to unanimously. -El. Deb., I, 256-57, animated debate." An amendment to allow the public creditors only the then market value of their paperone-eighth of its face value-"was opposed by Messrs. Boudinot, of New Jersey; Lawrence, Ames, and Goodhue, of Massachusetts; Hartley, of Pennsylvania; and Sherman, of Connecticut, and was defeated." "Mr. Madison," says Marshall, "then proposed to pay the present holder of assignable paper the market price, and give the remainder "seven-eighths of its face value "to the original holder. This was opposed by Messrs. Sedgwick, Lawrence, Ames, Gerry, and Goodhue, of Massachusetts; Boudinot, of New Jersey; Hartley, of Pennsylvania; Livermore, of New Hampshire, and others, and was negatived. * * * "In the course of the debate severe allusions were made to the conduct of particular States; and the opinions advanced in support of the measure were ascribed to local interests. 66 After an animated discussion of several days, the question was taken, and the resolution was carried by a small majority; but soon afterwards the delegation from North Carolina took their seats and changed the strength of the parties. By a majority of two voices "31 to 29" the resolution was recommitted and negatived. "A proposition to assume specific sums from each State was then urged, but with no better success.' Now, laying aside Marshall for awhile and turning to Maclay's Journal, we get a better insight into the motives and manoeuvers of the plotters. His account begins some four months before Hamilton's plans were submitted to the Congress. We quote extracts: * * * "August 28, 1789. There was a meeting of the Pennsylvania delegation. The Chief Justice of Pennsylvania and Mr. Petit "-Chairman of the Public CHAPTER VIII. REVOLUTIONARY WAR DEBT-HOW NORTHERN TRADERS AND SPECULATORS WERE ENRICHED AT THE EXPENSE OF THE SOUTHERN PEOPLE BY THE MANIPULATION OF THE CONTINENTAL AND STATE DEBTS. In the month of January, 1790, Mr. Hamilton, the Secretary of the Treasury, laid before the House of Representatives, at its request, "a plan for the support of the public credit," proposing that the debts of the separate States be assumed by the Congress (without a shadow of Constitutional authority),' and that they, together with the debts contracted by the Continental Congress, be funded, provision for their payment to be made by impost duties, excises, etc., instead of grants of the "waste lands" which had been ceded by certain States. "Several resolutions," says Marshall's Life of Washington, "affirmative of the principles contained in the report of the Secretary, were moved by Mr. Fitzsimmons, of Pennsylvania. To the first, which respected a provision for the foreign debt"-$11,710,000—“the House agreed without a dissenting voice. The second, in favor of appropriating permanent funds for payment of interest on the domestic debt, etc., gave rise to a very 1 In the Philadelphia Convention, August 21, Mr. Livingston of the committee, appointed on the 18th, reported that "the Legislature of the United States shall have power to discharge as well the debts of the United States as the debts incurred by the several States during the late war. The report was postponed. On the next day Mr. Morris moved to amend Mr. Livingston's report so that it would read as follows: "The Legislature shall fulfill the engagements and discharge the debts of the United States," thus striking out the State debts. This was agreed to unanimously. -El. Deb., I, 256–57. |