forming a rule for fettling the accounts, he was persuaded that
North-Carolina would not appear to be illiberal, he presumed also
that (he would be dilpofed to make a generous allowance to the
several states for all services that had usually been called military ;
but he could not reconcile himielf to this system of assuming the
debt fir ft, and talking afterwards conceining its origin* It has
been oblerved that the state debts are not to be funded immediate
ly ; how (hall we account for this extraordinary zeal in declaring
absolutely that thev fliall be aflumed ? Are we afraid that the next
Congress will refute to do justice ? Are we desirous to cut off the
■poUibility of returning if we (hould change our minds on better
information ? One obvious benefit will arise from this sudden
adoption, a few meh who chanced to be near the feat of govern
ment, and were firft. possessed ot the fchemc, who flew to Caroli
na, and there bought up securities at 3s. in the pouud ; those men
-will be liberally rewarded, while his unfortunate fellow citizens
are left to pay a second tax for the fame object, and to complain
of the injustice of government. ,
On this occasion he said ho was not left to conjeflure what
•would be the sense of his constituents ; the late convention had
cxpreffed it fully in one of the amendments they had forwarded
to Congress, in the following words : u Congress shall not dtreftly
or indire&ly, either by themselves or through the judiciary in
terfere with any one of the States in the redemption of paper mo
ney, already emitted and now in circulation', or in liquidating
an<i discharging the public securities of any one of the States, but
<ach and every State (hall have the exclusive right of making such
laws and regulations for the above purpofei as they (hall think
proper."
In this amendment the convention had besi unanimous. On
thij occafiorx he was not only purfumg a measure that accorded
•with the sense of his constituents, but it was a meafurfc that' had
perfect justice for its object. North-Carolina asked for no favors,
Ihe fought for no advantages under cover of general resolves, (he
■was ready to account according to the spirit of the original con
tratt, a contrast that had not been altered by the new torm
of government, for justice was immutable. The new govern
ment could not be strengthened by hasty measures, much less by
any departure from justice.
Mr. Sedgwick said it had been reported abroad, and declared
in the house that those gentlemen who were in favor of the assump
tion, meant to prevent a settlement of the accounts of the indivi
dual dates, with the United States: To remove every obje&ion
arising from that source, he would take the libeity of declaring
once for all, and that in the most .unequivocal and pofitivelanguage,
that he did not now, nor ever had entertained such an intention,
and that he had the fulleft confidence that the fame declaration
-might be applied to every gentleman in favor of the measure.
Mr. Sedgwick said that the house after having exhausted the
fubjett in a most deliberate difcuflion, had again resolved them
selves into a committee, in consequence of the gentleman from
N. C. (Mr. W.) having pledged himfelf, in five minutes to demon
strate that by the afTumptionj the state he represented would be
defrauded of half a million of dollars. That he had attended very
carefully to the process of this demonstration, and perhaps it
might not be altogether time mifpent in communicating to the
committee the observations which had occurred to him upon it.
That he understood the gentleman to have declared that N. C.
had rendered fejvices beyond her proportion, that her debt cre
ated for national purposes, and part of which had been a&ually
assumed, was also beyond her proportion, that the accounts of
the individual states with the United States, would never be adjust
ed, and more, that there was an intention with the majority of
Congrtfs to prevent it; what conclusion was to be drawn from
this ? North Carolina would sustain an injury from the circum
stances dated, if the debt (hall not be aflumed ; common sense
would then di&ate that justice to N. C. required that the debts
ihanld be aflumed. This consequence however, was not deducea
from the premises; the gentleman had agreed that as N.C. inde
pendent of the alTumption would sustain an injury against which
she could by no other means be relieved, therefore he had tvijely
concluded that by the alTumption (he would be defrauded.
Mr. Sedgwick said the gentleman had further dated that N. C.
had been so unfortunate, that fomeof her confidential officers had
iiTued fraudulently 300,000 dollars in certificates; which certifi
cates, if the debt of that state should be aflumed, must be paid by
this government. If so, there could be no doubt but this govern
ment would indeed be defrauded, and N. C. would of course be
fubje&ed *o her proportion of the burden refu] ting from it: But
he wilhed the gentleman to consider whether the national councils
might not, aided by his wisdom and experience, be supposed to
possess neatly - as much fa g« city in detecting frauds and guarding
against their effe&s, as the government of N. C.
The naxt argument of the gentleman, Mr. S. observed was
flill more extraordinary, and indeed greatly beyond his compre
hension. That he'had stated to the committee that N. C. had is
sued paper money to a certain amount, with this money they had
purchafrd certificates ; here then he concludes the state had made
one purchase for which it (hould have a credit; flill, however,
this money i*to be reduced, which will be an additional burden
on the people. Here thtn it is supposed to have been proved a
double payment has been made, and yet it is justly concluded
that only a (ingle credit rs proposed ,to be given for this wonder
fiA operation. Mr. Sedgwick said he would llluftrate the ingenr
oui argurtient of the gentleman by an example exactly similar, " I
borrov" «« said he" of my friend an hundred pounds for which* I
pay him ny bond, the man at the time agreed upon for the
jpaynwnt of the money, applies for it, whereupon I with a fobcr
iace tell him, that when I received his money he was paid for it
hy mv bond, nd should he he so unconscionable ai to insist on
his monfcy, h#- would receive double payment. Surely any reafona
i>icm*n would be convinced by the argument. f° N- C.
.•pureh fed certificates with her valuable paper profiles, thi&isone
payment, fhc performs her promise are now double pay-
ments
Mr. Sedgwick observed that the gentleman had said, thatwhile
fomr- dates had made provision for the payment of the interest ot
the debt,' N. C. had not done so, Hie had redeemed the principal.
He said if indeed N. C. had neglected to make any provision for
the payment of the interest, and had caused the immAfe depre
ciation which would unavoidably arise from that iource, and had
then laid a fpecific tax payable in the principal, it was an argu
inrnt infinitely stronger than any he had fieard in favor of difcrf
mination ; but how it could operate againfl the proposed aflump
tion was beyond the powers of his mind to discover.
He further observed that the gentleman had produced the N. C.
amendment, as a reason agatnft. the assumption, that it had also
been declared to be a substantial argument against the meafurethat
the idea had never been contemplated by any bodkin the South
ern States until since the report of the Secretary. He said he
could not very well understand how the convention of N. C.
could propose an amendment with an intention to prevent a mea
furc they had never thought of.
The gentleman from North-Carolina had said he was sen
sible some of the states were unduly and unequally burdened, and
that he was willing to afford them relief when the accounts (hould
be fettled. At the fame time he was so candid as to declare that
he did not believe those accounts ever would be fettled. He said
that if the gentleman had pofTefTed less confidence in his own
powers of persuasion, he would perhaps have permitted at lead
one day to intervene between the one of those declarations and the
other.
" Thefc" said Mr, Sedgwick " are the arguments, the weigh
ty arguments, which the gentleman pledged himfelf fliould have
all the force of demonstration, nd in expv&ation of hearing
-which the majority qonfidered themselves authorised to suspend a
determination on a question the inoft important that ever came
- before this houfc ; a determination on which, the public mind has
long expfftcd with 3n anxiety proportioned to its magnitude."
Mr. Sedgwick concluded by observing that if the majority of»
the committee was influenced in their determination on this im
portant question by an enlarged, li beral and extended national po
licy, there could be no doubt of the result, but on the contrary,
if local and narrow ideas should prevail, he should despair of
fuccefs,and with it of those benefits which he had fondly hoped
would attend the administration of this government.
Mi. Williamfon, in reply to Mr. Sedgwick said that he had not
a fie r ted that North-Carolina had paid more ihan her proportion;
the gentleman does not hear well;he had said (he observed) that
North-Carolina had afTum«d-to herfelf, more than her proportion
of the continental debt. He repeated his lemark that there was
a design to prevent afettlement. Let the settlement firft be made;
and North-Carolina will cheartully concur in alfuming the balan
ces which may appear to be due from the United States—\but the
present plan is to get the whole funded, and let the settlement
come on as it will.
Mr. Page in opposition to afTumption said, it was a mcauire
which did not meet the approbation of the creditors themielvcs.
Some of the debts were contra&ed for purposes in which the left
were no more intended than a foreign nation. He then repeated
the observations refpe&ing consolidation ; the meafurc would tend
to that, and from that to monarchy. He enlarged on the idea of
a spirit of rivalfhip's giving rife to the debts of the fcparate States ;
they were free, sovereign and independent—were at liberty to con
trast what debts they plcafed and the United States were not bound
to pay debts contrfftcd from such motives ; he hoped the com
mittee would abandon the proportion and go on to consider the
reft, which are totally independent of it.
Mr. Goodhue, after obfervmg that,the comparative view of
the merits and ferviccs of the (pveral States has nothing to do with
the prelent question, said, the war commenced when there was
no legiflatiye body to represent the Union ; it was carried on by
paper money ; when that ceased, and the credit of the l-nited
•States was gone—they applied td the individual States ; Congreis
depended on the credit of the States, separately ; hence arofethe
debts of the States—and thus it appears demonstratively, that those
debts aie the debts of the United States ; contra&cd on their ac
count and which they are bound by every principle of justice and
policy to provide for. This obligation it appears is greatly en
hanced by this confederation that the funds on which these debts
were dependant, and from which the interest on them was paid,
is nowaflumed by the United States. The impost and excise un
der the management of the individual States was barely fufficient
for this purpose ; they have now nothing left, but the excise,
which is found to be very^inproduftive—the consequences of di
rest taxation have been severely felt. lam cleatly of opinion that
if W£ do not make this aflumption, the verv existence of this go
vernment will be endangered ; the competition for revenue will
excite such heats and animosities, as will destroy revenue alt<?,
gether.
He concluded by wishing that the fubje& might be taken up on
fair and equal principles—and from thence he doubted not, it
would appear a measure of indispensable neceflity and justice to
adopt the proportion for the assumption.
WEDNESDAY, APRIL 20.
Sundry petitions were read.
A Committee was appointed on Col. Ely's memorial.
In committee of the whole on the Report of the Secretary of
the Treasury for the support of the public credit.
The 2d alternative,* in the following words was read, viz. -
To have the whole sum funded at an annuity or yearly interest of
4 per cent, irredeemable by any payment exceeding five dollars pr.
annum, on account both of principal and interest, and to receive
as a compensation for the redu&ion of interest, fifteen dollars and
eighty cents, payable in lands as in the preceding cafe.
It was moved toftrike out " five dollars" in order to admit a
larger sum, so that the ledemption of the principal should take
place at an earlier period than that proposed. This was agreed to,
and Six inserted.
The following propofin<J«t 66J dollars funded im
mediately at an annuity w y*Wly interest ol o per cent, irredeema
ble by any payment exceeding four dollars and two thirds of a
dollar, pr. annum, on account both of principal and interest ; and
to have at the expiration of ten years 26 dollars, and 88 cents,
funded at the like intcreft and rate of redemption." The propor
tion being amended to read as follows, was agreed to.
" To have 66§ dollars funded immediately at an annuity or
yearly intcreft of fix per cent, irredeemable by any payment ex
ceeding fix dollars and two thirds of a dollar per annum, on ac
count both of principal and interest ; and to have, at the end of
seven years, thirty-three dollars and one third of a dollar funded
at the likeintereil and rate of redemption."
Mr. Sherman then proposed to modify the rcfolution so as
admit of the following proposition— u That the debts contra&ed
by the several states for the common defence and benefit of the
union, ought to be confidercd as a part of the domestic debt of
the United States : That proper provision ought to be made for
the immediate debt of the United States; and that the faith of go
vernment ought to be pledged to make provision, at the next ses
sion, for so much of the dcbt3 of the refpe&ive states as shall have
been fubferibed upon any of the terms exprcfled in the last resolu
tion ; provided that fubferiptions (hall not be received tor a great
er amount, than the following sums, viz.
[Here the names of the several states were inserted without any
sums.]
That the remainder ought to be left to the refpe&ive states to
provide for, until a final settlement of their accounts with the U
nitcd States, for which settlement effectual provision ought now to
be made.
Provided thatjio debts be aflumed but such as have been liqui
dated in specie value, and evidenced by notes or certificates iflued
by authority of the refpe&ive States, before the day of
1790.
And if the creditors of any state lhall not fubferibe to the a
mount of the debt of such state to be aflumed as aforefaid, such
state (hall receive interest at the rate of 4 per cent per annum, on
the remainder of said sum, until a final settlement of its accounts
with the United States, to be applied to the payment of interest to
its non-fubferibing creditors, for which, and for the sums that may
be aflumed, the refpc&ive states (hall be accountable to the Uni
ted Sutes." *
Mr. Sherman being called upon to ascertain in what proporti
on he meant to fill up the blanks,read the following as a statement
of the debts owing by the states, and the proportions he wanted
to have aflumed.
AJfumption oj the State Debts, not exceeding thefums in the lajl column.
Due as per Sec'ry's Report. Sums to be ajfumed.
DOL LARS.
N. Hampshire.
MafTachufetts
Connecticut
New-York.
Ncw-Jerfey
Pennsylvania
Delaware
Maryland
Virginia
N. Carolina
S. Carolina
Georgia
19,300,000
These resolutions Were opposed with as much spirit as the ori
ginal proportion for the aflumption. The Committee rose with
out coming to a vote on them. ,
* In our la.si wdfiated that the feccvd. alternative wax acceded to : this
was an error ; it was proposed to rejlore it t but the proportion was not
then decided upon.
-14-
300,000
5,226,801
»»95M73
1.167,575
788,680
2,200,000
300,000
4,000,000
1,600,000
1,000,000
750,000
2,000.000
100,000
800,000 750,000
3,600,743 3,000,000
1,600,000
4,000,000
5,386,232
200,000
THURSDAY, APkIL 22,
Reports on sundry memorials and petitions from the Secre»?r V
at War were read.
Mr. Madison made the following motion : Mr. Speakrr
As we have been informed not only through the channel o l '
the newspapers but by a more c\trect communication, of (| h .
decease of an illustrious charatlej-, whop.* native genius has rendn
ed diftinguilhed ferviees to the cauie of faience and ot mankind m
general; and whose patriotic exertions have contributed in a h;<r>,
degree to the independence and prosperity of this country in par.
ticular—the occasion seems to call upon us to pay iome tribute to
his memory exprcflive of the" tender veneration his countrv fp f \
for such diltinguifticd merit—l therefore move the Lollowmg r.%
solution :
" The house being iniormcd of-the deccnfr of K NjA-i
MIN Franklin, a citir.etr 4ho ft native g< v us was not
more an ornament to human nature. than his various exer
tions of it have been precious to fc-ience, to freedom,and
to his country, do refold, as a mark of the venerat ion due ,
to his memory, that the member* wear the cultoinary
badge of mourning for one month."
On the question f thii motion paflfea without a division.
Mr. Partridge brought in a bill for allowing compenfatioofo I
John Ely, which was read a firft t:me.
Mr. Gilman of the committe- of enrolment, reported
that the committee had examined the bill entitled an ast fortfe
punilhment of certain crimes the United States ; v<hcr C .
upon, the speaker signed the said bill.
In committee of the whole on the report of the Secretarjof
the Treasury, Mr. Sherman's resolutions were again read, and*
interesting debate ensued but no deeifion took place.
FRIDAY, APRIL 23.
The bill for granting compenfaiiori to Col. John Ely, for hfj
services and expcncesas a surgeon to the prisoners on Long Island
during the late war, was read the second time, and referred to»
committee of the whole, to be taken into confidcration this day
week.
A report frortt thr Secretary of the Treasury pursuant so order*
of the house on the 19th January last, refpeftmg anv difficulties
attending 4»he-execntion of the revenue laws was read, and referred
to a committee, conhAing of Mr. Goodhue, Mr. Fitzfimoss, Mr.
Lawrance, Mr.Boudinot, and Mr. Lee.
Sundry reports from the Secretary for the department of war,
petitions and-memorials were read.
A petition and remonstrance from themerchan'sofGer;'own
on Potowmac, concerned in (hipping, was prefentcd by Mr.
Carroll, and read.
The report of the Secretary of the Trcafnrv on t'le metronalof
General James Warren, was read—this report beingagainllthe
prayer of the petition: Mr. Partridge ftatingthe circumftau
ces on which the application to the house was founded, noved
that the sum of 3801. be granted to General lames barren,
in full for so much {hort paid him on a warrant cfrawn inlrsfj.
vor on the state of Maflachufetts ; this motion was feeonded by !
Mr. Gerry, who likewise spake to the merits of the petition.
The question being taken, the motion was negatived.
Mr. AMEs,ff»id, that previous to taking up the order of
the dav, he wished to introduce a rrrot ion for the confidcratiofl
of the house ) he ohferved that it had been ailVrted in the :ourtc
of the debates riif the sffumption of the State debt?, thnt the State
of Virginia had.advanced for the common defence, beyond he
proportion s advantage appeared to be taken of such alfcruons;
ht thought it npcefTary that fa£ls fhoula he known—tn3t thecotr
mittee might ast with certainty in cOuduftingthisimportantcjiie!-
tion ; he therefore moved the followirig in fubftanre, viz-'Thlt
the Sopretaryinr ths r°" »
the house a statement of the troops including the militia, and ord
nance stores furnifhed by the rcfpeft'.ve States for the df
fence, during the late war.—This motion was opposed 3S tend
ing to procrastinate the funding business, and as leading to ex
cite invidious companfons rcfpe£iip-g the relative merits ana exer
tionsof theX/cveral States.——lt was however carried in the affir
mative, with this addition piopofed bv Mr. Bland, " ana that
the CommifTioners of acfctfurtts between the Staff? an
individual states, be dire&ed to furnifh an abftraft. ofrhe dim
ofthe several states against: the United States, fpecifviugtaeprm
ciples on which the claims are founded. On the aboverao
tion. the previous question was called for by Mr. Lee, wit.
was loft, and the main question agreed to,-28 to 26.
Mr. Gerry then moved, that the Secretary of the Treajon' f
directed to report to the house a statement of all payments sot 0
Indents and other paper, as well as specie which have hecni? e
by the several states to Congrefsfrom the commencement
eod of the late war, This was agreed to.
Mr Madison moved that a statement ol the !
ofthe several ftatesagainft the United States, should befurn.w
by the Commiflioner? —this was also agreed to.
The above report of the Secretary of the Treasury is veryfl.
nute and lengthy—the reading of it and the debates 011 0
motions employed the whole day—so that the House did not -
into Committee.
(Adjourned till Monday.)
fOR THE GAZETTE OF THE UNI'.
MR. FEXNO,
IT was expefled that a spirit of accommodation woi
the minds of mofl of ourfiatefmen under the frej
that even facrificcs would have been chearfullymade
but we are sorry to find the time is not yet come,and
of the old leaven Jlill remaining.
I doubt the bufnefs of pa\in? the national debt '
proper groundj. ana that many of the members in the
atives are too much attached to the principles of the
able to properly of a ,<yW Svftem f/ Fi*"
cult\ appears to he a' nut 'hat part of the debt zen
dividual States ; and it might with us much propn
portion the whole, or to make a djcrminutwn m t,
contracted by our different Agents in Europe, as to'
ed parts of the domestic debt to be providedfor '
It was certainly right unde r the late government, f
rovifion in their individual capacities forJuch di hi.
o alTume on account of the Union, beciufe no bette
o pursue such measures now, would, defeat the hcjl
ution, and he fuiverfive of the foundefl principle
tional policy. ' W
The refufal of the States to relinquifk the debts, o* the P'/ a
would do them iniuflice, appears to me, to have nc J OUT ! ' o j! r , fifth
for Jurely an Ast that would put it in the option ojthe cret -<
scribe to the funds of the Union, could not operate agaivj a j
adjuflment of the accounts ; and retaining the debts wil no
the States on a Jooting of equality.
Every friend to the Union would be happy to fee a f)Ca rri
modate, when necejjary ; but J would ovlyajk m tnepreje" <■ \lt
into operation the great objetfs of tk,e government. »
bufwefs fhoxild lie over for the present, lam confident t a e
the States and their creditors will be as willing, to Jurun
the general government as any member of that bodyrwi c ryioS.
them. A CREDITOR OF THE
Philadelphia, April 20, 1790.
h