[No. XCI.-j
THE TABLET
(Continued from the last number.)
<t are apt to form general couclufiotis from too
f mall a number of particular cases."
AS fonie striking instances can be produced
of the hardfliips fullained by original
claimants, it leads us to imagine that original
creditors, who have alienated their certificates,
are aclafs of people, entitled to general relief.
But those who are intimately acquainted with the
history of public securities must have farmed a
very different opinion. The heaviest lolles that
have accrued by the fall of stocks, have happen
ed to intermediate holders. 1 know a person
who purchased thirty thousand dollars in final
settlements, at the army, for ten ihillings on the
pound : He fold them, two years afterwards, for
one fourth part of the sum he paid for them.
This diftinguilhed fulfercr makes little complaint
and excites 110 pity. The soldiers who fold their
claims 011 unfavorable terms, excited attention
because they complained loudly. Many of the
certificates, it fliould be remembered, were ori
ginally ifiued in finall sums ; and an hundred
thousand dollars fold at a disadvantage brings
forward numerous individuals to complain ; and
yet the aggregate lodes complainantsbear
no proportion to the aggregate amount of certi
ficates, fold on beneficial terms by original credi
tors, Those who'negociated their paper early
got a good price. They are contented and no
thing is said about them.
The most considerable branch of the domestic
debt consists of loan certificates. These must
have fold without any discount, during the whole
period that the loans were opened. It is evident
that while the United States were daily making
new loans,certificates must have been negotiated at
par; for if a person could purchase at market,at any
given discount, why should he lodge his money
at an office and take out securities at par. The fail
proves itfelf, that while tlie public could fell cer
tificates at par, no person was compelled to fell at
much discount. The principal transfers that ori
ginal holders offuch certificates have made, must
have been while they commanded a good price.
The army debt L that, in which, the principal
injury is supposed to have happened to the origi
nal claimants. There are perhaps more hard
cases among the soldiers than among any other
portion of the creditors ; but Hill the aggregate
amount of their loss is not so considerable as has
been imagined. The soldiers of the main army
have not generally any reason to complain.
They anticipated their pay long before it was re
ceived, and obtained from eight to ten {hillings
on the pound. There were many traders and
{peculators about the main army, who raised
a competition in the purchases, that operated
in favor of the soldier. Tliofe troops that were
detached from the main army, had not the bene
fit of felling to {peculators, in such feafon,asto
obtain the bed price. It happened unfortunate
for the southern army under the command of
General Greene, that they were not in a country,
where adventurous monied men speculated in
public paper. By this means, that part of the
army made great Sacrifices, in the disposal of their
securities. This was unavoidable ; but it does
not authorize a conclusion that other creditors
who were not so situated, fuffered fhnilar incon
•veniencies. As these fads are generally known
to men of observation, 1 have no occasion to en
large.
In my next number, I will examine the quefti
on,whether original creditors have generally been
compelled byneceflity to fell their certificates.
FOR THE GAZETTE OF THE UNITED STATES.
MR. FENJCO,
THIS is an awful crifi?. The decision of Congress on the pub
lic debt renders it eminently so. To retain the confidence of
the zvife, the well-informed and the honeji of the -whole world, Ame
ricans and Foreigners, is the task afligncd them. To their native
flock of wisdom and virtue let them carefully, afliduoufly and
anxiously strive to add all the information they can obtain A
■well-informed confcicnce is the best human guide. The Legifla
lor who errs, with that conduttor, is lightly censured by his con
llituents, and will be forgiven by Heaven.
However solicitous Congress may be for public credit as the in
dispensable means of maintaining the future prosperity of the na
tion, they mud not lay themfekes open to opinions that they have
done more than the preservation of public credit requires. An
enquiry fliould be inilituted to determine the fubjlantialjujlicc of
the original contract, for public credit requires 110 more to be ren
dered to any man, whether a purchaser, a lender, or a Tenderer of
iervices. Gratitude may fugged more, but public crcdit will be
completely maintained by the performance of substantial justice
fairly ond accurately afcertaified. Far be it from rulers of a ge
nerous people to fi'!l the hallowed voice of gratitude ; but let us
PUBUSHF.D WEDNESDAYS AND SATURDAYS BY JOHN FEN NO, No. 9, MAIDEN-LANE, NEW-YORK
No. XCI.
WEDNESDAY, FEBRUARY 24, 1790
suspend our obedience to its di&ates till the more sacred rc-quiG- |
tions ot juifice be fulfilled. It may be neceiTjry to exemplify the'
idea here contemplated. Many contratts were formed in August:
1777, for example, between the United States and individuals,
which, by the present regulations, are considered as specie, tho it
is a fatteafily to be ascertained, that the money by which the ob
ligation was created in some instances, and in which it could have
been justly discharged in all the reft, was really and truly worth
but 35 to 40 pr. cent. Does then substantial justice require more
to be paid ? Does public credit require more to be funded ? Will
a well-informed conscience permit the holder of the certificate to
ask more? Will a wife legislator, with a pcr/ctt idea of public
faith, if at the fame time he has a due regard for theeafe and pro
perty of the people, confentto give more. If Congress ihould fi
nally allow one hundred dollars in specie for that which in no way
whatever would have brought, on theday of the contratt, more than
thirty five or forty dollars, will they manifeft to their constituents
and to foreign nations, the necessary ability to cftimate the tfue
value of their obligations, and a fufnciency of that prudent regard
to economy, which, while it is perfettly reconcilable with itrift
and substantial justice, is indispensably necessary to preserve the
public confidence ? Will they not appear willingly to facrifice
their constituents to a fwoln demand of mistaken or miftated Jus
tice ? Let us consider what will be the consequence of such opin
ions arising among foreigners. It is to be feared that they will
think us an inconsiderate or neceflitous nation, with whom any
terms may be made for ready money ; or that our councils are
corrupted, and that from venal iMufes hath proceeded a law,
which, while it grants them unnecelTarily 60 or 65 pr. cent, pro
vides the fame for secret owners of certificates among the members
of our government. Let us also well consider what vtould be the
Gonfequence of such opinions Ihould they arise among the people
of Ahierica.
If an examination were carefully made into the operation of
this unexceptionable totich stone of substantial justice, upon the va
rious debts of the union and of the States, a great and rightful re
duction of their immense amount will be the consequence. Let it
not be said that it will produce too much delay, for justice is the
obje&. Let not an ill judged economy of time occasion a pro
fusion of public money. Let not the husbandman be twice con
demned to pav, by thefweat of his brow, the debts occasioned by
the late diftrefsful war. NECKER.
CONGRESS
HOUSE OF REPRESENTATIVES
TUESDAY, FEB. 16, 1790,
IN committee of the ■whole, on the Report of
the Secretary of the Treasury.—Mr. Madison's
motion for a discrimination under consideration.
Mr. J \ckson, observed that although as
young a politician as any on the floor, and that
he was convinced the weight of experience was
against hi in—on so important a national subject
he could not be silent 7 ysrticularly as he had the
honor of seconding the gentleman's niorijn (Mr.
Madison) now before the house ; that it would
be therefore expelled he should bring forward
his reasons, and the principles which actuated
hiin to it. He confefl'ed that had he not before
leaned to the fide of a discrimination, the argu
ments of that able gentleman would have induc
ed him to support the plan he had brought for
ward. He was induced ou another motive to
rife, ttjfhow that the numerous arguments of the
gentlemen in opposition yesterday, had not con
vinced him of the impracticability orinjuftice of
the composition.
The house said he, were told much yesterday of
the moral obligation we are under of paying our
debts, and the impolicy and injustice of interfer
ing with private contracts. The obligation, I |
believe is no where denied ; the debt is of the |
highest nature ; it is the price of our indepen
dence ; the only difficulty is, how that debt shall
be discharged. I would here observe, that the
jufticeof the plan before the house has not been
so fully objected to as the impracticability, al
though it has been aflerted unjust by some of the
gentlemen who have spoken.
1 will consider the justice of the proposition.
The house has been told the nature of those con
tracts, and the valuable considerations of them.
The contract, falls under the legal terms of do,
ut des ; 1 give that thou mayeft give—or, I give
that 1 may receive. In all contracts there are
three requisites : 1 ft. The agreement; ad. The
consideration ; 3d. The thing to be done or
omitted. The consideration is, to be an equiva
lent or full recompence for the thing to be per
formed Let us examine what this ihing to be
done is, and what these considerations are* The
creditor, who has to perform the third article of
the contract, held 20s. which was to be given for
a valuable consideration ; what was this considera
tion ! 2s. 6d. I argue, that if this 20s. was
worth no more than 2s. 6d. the contract was fair
and substantial ; but if gentlemen carry the idea
farther, and declare this 20s. was money of equal
value with the 2s. 6d. given, 1 contend that the
contract was destroyed : equity would believe,
would declare it an unrighteous bargain, that
there was not an adequate compensation, and
would set aside the contract.
But a gentleman (Mr. Lawrance) has rold us
that equity has fixed rules, and that none of those
rules would apply* I ngree with him, that it is
incite
PRICK THREE IJULLARS PR. ANN
as necessary for a court of equity to be confined
by rules as a court of law ; but exclusive of the
foimer cafe 1 have mentioned, there are two
others under which the prefeut cafe conies—mis
fortune and oversight. I would quote, Biack-
Itone, diftl not expecft, as in former instances, to
be complained of by that gentleman for it. Here,
lias been one of the greateit of misfortunes ; a
calamity attendinga whole community, a govern
ment unable to pay its debts. Here is likewise
an oversight equal to it. Is it possible for the
poor soldier, uninformed, to forefee, when he
fold his certificates, that they would rife to the
jirefent value ? or that he could anticipate the
present day, and a second revolution ? Equity,
then, requires some irtode of justice, and tlxe tri
bunal exists somewhere. 1 believe with my
friend from Pennsylvania (Mr. Scott) that we arc
the tribunal ; for equity multl exiit somewhere,
lor the government is at an end. The courts of*
law, and common courts of equity, have no power
to interfere ; tliey cannot compel, us to
mode of funding our debts. The injury cries
aloud for redress; iniquity is in tlicland, and we
are bound by every prinoiple of justice, to step
forward, and do what justice we can.
But perfect justice cannot be done, fay gentle
men, and therefore we Ihould not attempt the bu
siness at all. The consequences of this doctrine
are fatal—they tend to a deprivation ofall courts
of juftice—for there is no instance which can be
adduced, where what is termed perfect justice ii
reconciled to the opinions ofall, and where some
objection cannot be raised.
But there is no government on earth, fay gentle
men, which ever interfered with aifignable con
tracts. This doctrine has been both countenan
ced and denied by gentlemen in the opposition.
In their relation of the South Sea scheme, one
gentleman told us that it did not apply, because
the government was not concerned, and that it
was in consequence of their agents villainous prac
tices only ; another acknowledged the govern
ment was concerned, and bid us take warning
from it. I contend that the cafe is in point; but
if there is any difference, it is in its exceeding
the bounds of the present. Ihe government of
England were accefliiry—the parliament of ling
land received 7,000,0001. for the privilege of per
mitting the company to take in the public debts
—and allowed them to fund many millions on a
footing not subject to their private debts ; yet
after all this countenance, the omnipotence of
parliament aflumed the fuprcme powers of equity
—compelled coinpenfations, dilcharged debtors,
and punished those who had done no more than
comply with the letter of the law.
This do&rine was not then novel: ill 1712 par
liament interfered between the Royal African
Company, and its creditors—not when the com
pany was in a state of bankruptcy, but for years
before. The different nations of the world, be
tides, notwithstanding what gentlemen have ad
vanced with refpetft to the constitution, and the
impairing contrails—and the states here, have fol
lowed it, have palled statutes of limitation to ac
tions, although it was not implied in contratfjs.
The house has a right likewise to guard againlt
frauds.
Public justice, he observed, has not been done ;
the soldiers, the original creditors, have not been
paid; they have received but 2s. 6d. and there
was 20s. due them. Many ofthofe creditors, and
the war-worn foldier,are pining in retirement, in
the most cruel situations, and condemning the in
justice of that country which, in consequence ef
their exertions, are legislating here this day.
If then public justice (which he contended the
plan promoted) Ihould be done, public credit
would follow—for justice is reason, and credit is
a natural consequence of reason ; if the interest,
as gentleman have told the house, is paid in pa
per or not, I do not conceive that the plan would
in the least affedl it. It has not injured Britain
in the example before the house.
Public faith, the is informed, ir>akes no
diftin<£Hon ; the public faith, is pledged to the
soldiery and citizens, who furnifhecl supplies.
It never has been fulfilled, 2s. 6d. was not the
20s. they were entitled to. This principle was
even fettled at home by that very Congress, some
gentleman pay so much honor toi The soldiers
were paid with depreciated money during the
war ; that Congress reliquidated their accounts.
A gentleman (Mr. Smith) has observed, that
this plan places those who have alienated in a
better situation than the present original holder,
by adding the 10s. to what he formerly received.
I contend that the present original creditor would
not be injured, nor would thej grumble at feeing