[No. XCVI.j FOR THE GAZETTE OF THE UNITED STATES. MR. FENNO, A FEW suggestions on the all important fubjett of funding the public debt, which are dittated by a regard to the future welfare and happiness of this country, will I hope meet with a liberal interpretation from a view of the motives which induce them. The late revolution in the government of these States con sidered in an abftra£l light was undoubtedly an event of great magnitude and consequence ; yet upon the a&ive operation of the powers veiled by the new conllitution in the great legiftaterre of the union, will depend all those civil blessings which an enlight ened and well informed people are capable of enjoying. To the de falcation of public promises in this country for many years past, and consequent want of private confidence, may be mostly attri buted the evils we long fuffered, even to the lowed ebb of nation al degradation ; while the general sense entertained of the cause of those evils which was discoverable in the exertions made to pro cure their remedy by the new organization of our political sys tem, seemed to evidence to a candid world, that the defe&ion ex isted rather in the head than the heart, and that we wanted only to become acquainted with the mean? of relief to prattice upon them ; it !s yet to be hoped that this just expe&ation will not fail to become realized in the determination of government relating to the funding system ; and the more especially, when we reflett that a failure now, will be proportionably difadvantagecfcis, as the steps hitherto taken have enhanced the public anticipation and confidence.—Having made these general observations, I come to take a view of that part of the Secretary's report that relates to the afiumption of the State debts, and which appears to be a mea sure recommended by every motive of found policy, evident ex pediency, and substantial justice. I have never been able to dis cern any real difference between the two kinds of debt,continental and State; I mean so far as either were contrasted in the profe «cution of the late war, and to answer the public exigencies ; I be- Uieve on examination, the chief diftinftion will be found merely adventitious, and to exist only in form—nor even so far in form, as to impair the obligation which the united government is finder to provide for their discharge, or equal place in the funding plan ; they are doth the price of our independence, and present national confcquence, and must be both guaranteed by the sceptre of jus tice-—that it is expedient they should be thrown into one general rnafs, will appear from the consideration, that the several States liave relinquished to the government of the union the means by ■which they would be enabled to make a separate provision for their payment—for though they may possess a concurrent power of laying excise, &c. yet the confuhon which would result from the exercise of that power to such a degree is fufficiently obvious, to illuflrate the inexpediency of its adoption, to avoid the great injuries arising to the interest of individuals, as well as to the ef licacv of public meafflres by such complex fyftemsof finance, and diverfc modes of taxation, may be viewed as one of the efficient causes of the late change in our government. The policy of es tablishing one uniform system of finance through the union, must obtrude itfelf on the mind as the natural di&ate of common sense and observation ; and warranted by the happy experience of many other nations ; it will have a great tendency to lelTen those (pecu lations in the funds, which in difcufling the fubie&of discrimina tion were so strongly urged as being of public detriment—for al though negotiations in the public funds will be ever found to ex ist, ye t the degree will be determined by the measures which go vernment shall adopt for the support of public credit—this once well established, will be equally known by all, and private ne cefliti*, rather than a diffidence ot public faith, will in future cause the alienation of public paper much below its nominal value ; by the alfumpiion of the State debts the sinews of government will be placed in a (ituation best calculate 4 for our future support and protection, and draw in that direttion from which their greatest ftren£th will result, while the danger of a division will be much dimiriifhcd—but let me aflc the question, should one class of pub lic cri>diio*s be now deserted, upon what ground? can government place its expectations of future support from individuals, in cases of need ? And that such cases will exist cannot be doubted.—The difctifiion of the fubjett treated of in this paper naturally draws forth the most latent feelings of the human breast—has to combat with deepropted prejudices, State politics, personal envy, ambi tion and avarice—while it involves in its consequences and depen dencies, objc£ts of as much importance as perhaps may ever arrest the attention of government.—lt is therefore not to be wondered, that in an aflembly of freemen, it should be a long time debated, thoroughly investigated, and fully examined in every shape and complexion it is capable of assuming ; nor is it less to be doubted that the result will be conformable to those principles of genuine patriotism and liberal policy, ■Which have so often marked the American public transaCtions, and on which depends the future credit of tnefe United States, the refpe&ability of our national go vernment, and perhaps our political exiftcnce. CONGRESS. HOUSE OF REPRESENTATIVES. WEDNESDAY, FEB. 24, 1790. IN committee of the whole, on the report of the Secretary of the TreafUry. Mr. BtKWM in the chair. The afTumption ot the Slate Debts under consideration. Mr. StONi, after ail introduai-on nffome length, observed, that the mcafure of assuming the State Debts is contrary to the Confti tutiom It may be used as a mean to brjbe a State into mcafures to answer particular purposes. He opposed it as tending to anni hilate the State governments. The afTumpiion of the State debts was not contemplated in the Conftttution, the powers of the Constitution are defined ; but the afTumption of the Debts of the States will be an accumulation of power in the hands of the general government—powers not fup f>of<?d to he vested in it. Ho observed. that this business would probably terminate jn the abolition of the State governments, as being altogether fuperfluous. The amount ot the present aggregate of the State Debts being un known, mayoperate unequally and very unjuttlv—efpecially when it is considered that many of the charges arc for unauthorised ser vice», the amount of which is involved in total uncertainty, fothat it is a perfect hazard whether justice is done or not. He adverted to the exertions of Maryland and-Virginia during the war; and observed, that he thought with a gentleman from Virginia, that when the precise exertions* ferviefs, and facrifices of the fevcral States are fully known, the present apparent disparity in their mer its and expences will be found to be much less than it has been sup— Jiofed. r He replied to the observation that the State creditors would be facrificcd it they were not provided for by Congress. He obser ved, that they might do them ftrift justice, if the funds which the PUBLISHED WEDNESDAYS AND SATURDAYS-BY JOHN FENNO, No. 9 , MAIDEN-LANE, NEW-YOR K AMERICAN US. SATURDAY, MARCH, 13, 1790, States have had to pay their interest from, is left to them, and they will not be wanted for the Continent except on the idea of fund ing theie debts. He urged the advantages Which would result to the States, and to the creditors from the particular States raising the revenue themselves, and this he afTerted would be done with great ease and certainty. Mr. Burke was in favor of the afiumption. He adverted to the ft ate ot the debt of South Carolina, and observed, that since the Impost wasaflumed by the Continent, it willbeutterly impolTible w u r° £. ay thC imcrcft °/ 5 000000 of dollars, her State debt, with respect to the weakening or annihilating the State govern ments, if this was likely to be the cafe, it is too late to object as the Constitution is already eftabliftied, and it is our duty to plant it in the foil as firmly and as favorably to the liberties of the people as pollible. He observed that on honest and just principles he must vote for the proposition. Mr. Sedg wick said he rose with great diffidence and confider -3e . ncc > toexprefs his opinion, on this important fubjeft, a iubjett on the just determination of which depended, in his opi nion, the future happiness and welfare of this country. —That his reluctance was founded in a consciousness that many gentlemen, considered MafTachufetts, es having, a very particular interest in the dccifion. But as other gentlemen had witnessed to the sentiments, circumstances and interests, of the dates they repre sented. he should presume to follow their example; and the ra thcr, because by pursuing, this course, there would be exhibited to the view and contemplation of the committee, a pretty just pi6ture of the state, as related to the present fubjcCt of delibera- Mr. Sedgwick declared that he liad been long and intimately acquainted with the people of Maflachufetts, that he believed that in no age or country, had ever existed a people, more disposed to submit to good government, nor more confirmed in virtuous and lnduftrious habits. I hat he had fuffered the inexpreflible pain, of feeing this people, in arms against their own government. A government adminidered by men annually chosen by themselves. That the cause of this infurreftion wasthe opDrcflion under which the citizens groaned, from the imposition of taxes, to fatisfy the public creditors of a debt incurred merely for national purposes. That this debt was created with the utmost economy. That the government in the imposition of taxes, was influenced by the mod virtuous motives of making compensation, to that meritorious class of citizens, on whofc exertions and services, the liberties of this country had depended, in an hour of danger. That from our circumdances, and the nature of our government, the ftatele giflaturcs, by whom thefc debts were contratted, were in fa£t, and ought now to be considered, as the national agents, that therefore the creditors of the dates, had a claim on the honor and judice of Congress, which would be violated, if their demands should remain unprovided for. 1 hat it had been objetted to the afTumption, that it would tend produce a consolidation of the powers of government, by a dedru&ion of the popularity and energy of the date governments. In answer to this, it wasoUferved, that no member of the com mittee, would entertain the anti-national idea, of the continuanae of the present, inequality of burdens in the several dates.—That all men of intelligence contemplated an adjudment of the claims of the individual dates, as a thing indifpenfible to the preserva tion of our national union. That whenever that desirable obje£l wis obtained, the state debts, which were the claims of the indi vidual dates, mud be annihilated, that therefore the evil contem plated, if it was such, mud eventually take place. Mr. Sedgwick observed, however, that he had never been a srofelyte to the do&rine, that the date debts were a neceflary en gine to the exidence of the energy or populaiity of the date go vernments. That in his mind it was a drange and unfounded af ertion, that the poflcflion of the affettionate regard of the people, )y a government, depended on the neceflity of imposing grievous •urdens. That it was true, that the state governments were in he pofleflion and etfercife of almod all those powers by which overnment was endeared to man. They afforded protection and ;ave security to life, liberty and properity; punished offences njurious to foci ty ; and gave to individuals a redress for the njuries they fuflered. They operated, therefore, only in a£ls of >eneficence, except in the imposition of taxes, which had very bfurdly been considered, as the foundation of their importance ind popularity. / r ' r - 7 • Mr. Sedgwick then observed that the difcuflion of the propo rtion before the committee, neceflarily involved twoqueftions. lft, Is Congress by the principles of the conllitution, authorlf ed to afTume the state debts. SuDpofing the power to exist, does prudence, policy and justice dictate the proposed measure ? With regard to the firft of these questions, he said, it lhould be observed ; that Congress by the constitution is authorised, to levy money in all instances ; where in their opinion, the expenditure lball be tor the M general welfare an answer therefore, to the second of these questions, would determine on the firft; for if prudence, policy and justice, di&ated theaflumption of the state debts, it must be for the general welfare that they (hould be a(Tu med. " Let itthenbe enquired'* said Mr. Sedgwick for what pnrpo fes were these debts contra&ed ? The true answer is known to all, to fecurc the peace, liberty and independence of the United States. Can it want demonstration, that an expence incurred for a joint benefit, (hould be a general charge on all, in proportion to their refpeftive abilities? By the principles of our constitution, the in equality arising from our former (ituation, which is already so se verely felt, and fronl the continuance of which, such enormous mifcjiiefs are to be apprehended, is ftri&ly guarded against, and this alteration is justly considered as one of the most important improvements in our national system. If this equality of burden, in a common cause, and for the support of a joint interest, is equi table, and that it is my mind is fclf evident ; will it not un questionably follow, that the proposition now under consideration lhould be adopted ? To this Mr. Scdgwick observed, it might be objettcd that by the fettlemcnt of the accounts, of the individuals States, with the United States, the purpoles hewifhed would be obtained. To this he answered, that the aflumption of the State debts would facilitate the fettlemen: of those accounts ; and indeed re move almofl all the obfltacles, in the execution of that arduous bufinefy. For although a State, after the aflumption takes place, may be in such circumftancrs as to have no particular benefit, re sulting from an ultimate adjustment of the accounts, yet it can have no strong motive to oppose it. But that independent of the aflumption, there are so many difficulties to be surmounted, as to render the event, if not wholly impra&icable, at lcaft highly im probable. He remarked, that as yet no ratio was provided for the apportionment of the expencts of the war ; to obtain this, one of two modes might be adopted, either id. an arbitrarv deter mination by the legislature, or 2d. by a like determination by commifTioncrs, who Ihould be appointed, with plenary powers for that purpofc.— Hecrmfulturd thifc determination arbitrary, Jvkks. PRICE THREE DOLLARS PR. ANN t, a ,';^ th r e W T "? data, from which the ratio cv^ntnall 6 at Aether the one or the other mode fhor.ld ,r, ! y cl( &ed, it was agamik every calculation of proba bility that it would afford universal fatisfaftio.,, ' here the,, !:> d he m the commencement of this bufmefs w,U exist a can'e of ailanection, whereas the traiitjuil accomplishment of n, will re quire the molt cordial good will and all the KTTTP- ? utf "PP° fe the ratio provided, and suppose er, e debts and credits of the several States afcertaiued, the insurmountable obftaclethen occurs, how shall those balances be aajultea Here three modes of ad mimftering justice for the ex traordinary exertions of particular States arc to be considered, lit. by an afiumption in a manner similar to the one now propo led—2d. by some kind of compullton to be administered to the eiinqucnt States, and 3d. bv a voluntary contribution to the SUtes rnoft in advance, cither by the general government or by the individual States which were comparatively in arrear ? He observed that he conceived it mud be obvious, from a con templation of the fubjett that if the assumption was ever to take place now was the proper time. That he believed no gentlemaii would fcnoufly contemplate the execution of justice on any vi iionary schemes of compulsion—is then, said lie we are to aban on the proposition now before the committee for an afiumption: it we cannot expect by compulsion to do what justice so loudly demands, it is of the utmost importance, deliberately and candidly to confidcr, whether we can reasonably expect the event we to wish from voluntary contribution. Horn our own experience, and that of others, could .we even guess what measures would be adopted by a government, under any given circumstances ? In the fuccefsful struggle of the United Netherlands against the tyranny of the Spanish monarch the ne celldry fupphes had been very unequally, furnilhed by the several States ; those States which made the most extraordinary exertions, had never been able to obtain any just compensation. Mr. Sedgwick observed, that the unfortunate tranfaftion, which Was denominated the Penobfcot expedition, had been repeatedly mentioned. That therefore, he would take the liberty to declare, as his opinion, that from thatcirciimftance alone, a ftmng argument was afforded, in favor of the proposition under confidei ation. He would not at prefent,be understood in exprefling the fentimcnts of his constituents on this fubjeftjto declare his own. Language to the following import was, however, the language of the well inform ed in thcState he represented. Wc have already,experienced wkatjufl dependence may be placed, on national engagements, when a performance depends alone on a cool and inoperativefenfe oj honor or duty. The citi zem of MaJJachufetts have during the war,by an unparrailelled exertion, andjpirit of entcrprije, created a navy, which was necejjary, Jor the pro tection of her commerce y andher extended sea coafl. This nqvy, in a fin git day was deinolifhed, in an unfuccef jul attempt; to repel an invafioh oj her territory, by the public enemy. Yet alt ho the payment offuch ex pence s, was expressly provided for, by the terms on which we vJere then, united, every application for juflicti hath been hitherto incjfetlual. On the other hand, there were not wanting, perhaps in each of the states, refpcftable and influential men, who considered this claim of MafTachufetts as not only an unfounded, but an audacious demand. That this demand would ultimately be either allowed or rejetted ; if the latter, it would operate in that State, as a cause ngainft voluntary contribution : If the former, it would tend to produce the fame effe£f, perhaps in every other State. Mr. Sedgwick further observed that the extra expence of MafTa chufetts in raising men for thc general defence, and what fae and her citizens had loft by the old money, Was equal to all the debt fne now owes ; that other States too had pretentions which ap peared to them to be equally Well-founded. Supposing, he said, that in the ultimate settlement, justice shall be done to all, will not the prejudices,refulting from felf-intereft, and the expectations created by them, be disappointed ? Have not the citizens of Ame rica been taught to believe, and do they not in fa6t suppose, that the States to which they belong, are in advance, greatly beyond their refpeftive proportions ? Can it be imagined, that perfect confidence will cxift, and the public mind remain in a slate of tranquility, when its ardent hopes and expectations shall be disap pointed ? Will not a general belief, unfavorable to the honor and integrity of the government prevail ? And can it be believed that the energy of our government, or its existence, to any valuable P u *"P°' e i can remain, under the operation of jealousy and distrust ?" Mr. Sedgwick declared that he did verily believe, that an honest, an equitable settlement submitted to and discharged, would ope rate greatly in favor of MafTachufetts, and he fiippofed other gen tlemen had the fame opinion of the States to which they belonged; but when it was remembered, that the accounts must be fettled by men interested, as belonging to some of the States, he believed mould their ultimate decision be certainly right—should it even be di&ated by the fpijrit of inspiration, the energy of the fame spirit, would be necefTiry to induce a fubmiflion, and acquiescence thro the United States.—Now then, he concluded, was the time, with that magnanimity and spirit of conceflion, which would be so honorable to ourselves, and beneficial to our country, forever to banish the causes of jealousy and distrust. Mr. Sedgwick observed that on this occasion it would well be come the committee, to reflect, on the causes which had produced a difference in the relative magnitude of the State debts; they were lft. A difference of exertion. 2d A difference resulting from the avails derived to particular States from confifcatcd property, and territorial acquisitions. With regard to the fiift, it would not be urged as a reason a gainst an assumption, because it was a strong, and an unanswera ble argument in its favor, for no one would venture to afTert, thst the States which had exhibited, the highest evidence of patriotifni should fuffer beyond their neighbors, who had lefc painfully firuggled for freedom. With regard to the other cause of difference, confifcated pro perty, Mr. Sedgwick requested gentlemen to reflect upon the in fluence it would have on voluntary contribution, in instances where it might have produced considerable effefta. On princi ples ofjnftice said he, will gentlemen, whose States have derived, a benefit from this source, permit me to enquire into the origin of their right ? Against whom did the citizen of New-York offend; who adhered to the public enemy ? Undoubtedly against united America. If by such conduct he justly forfeited his property, to whom should the benefit of that forleiture accrue ? To the general government which poffefTed the rights of treaty, of peace and of war; yet New-York who in the instance supposed, received the whole advantage, neither commenced, prosecuted nor concluded the war, nor had she power to do either. Again with regard to territorial acquisitions, he asked " bv whose exertions, were those acquisitions made ? By those of the in dividual States ? No, but by the national force, and under na tional dirc&ion." He added, that although the property thus acquired, being in pui fuance of the existing compact, should be held sacred, yet he wished gentlemen seriously to reflect, whether it was in human nature, voluntarily to contribute, to perpetuate an inequality arising from those source? ?—On the whole he con cluded, that independent of the ailiunption, there was no reafoA
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