PUBLISHED WEDNESDAYS AND SATURDAYS BY 7OHN FFNXn i, JUHN f * N *o, No. ~, BROAD-STREET, NEAR THE EXCHANGE, NEW-YORK [No. 11, cf Vol. ll.j CONGRESS. HOUSE OF REPRESENTATIVES, THURSDAY, APRIL 22, 1790. On the Report of the Secretary of the Treasury. Mr. Sherman's motion for ajfutning a part of the State debts, under cons.deration. MR. Madison. It is not without much reluct ance that I tioublethe committee with any observations on a fubjedl which has been so long under discussion, and may be thought to be en tirely exhausted. I must refer for iny apology to i the uncommon perseverance with which the ad vocates for an assumption adhere to their obje<sl, notwithstanding the difficulties which oppol'e it. On the supposition that the measure in quellion were ever so eligible, if it could be so modified as to be acceptable to the general fcnfe of the go vernment, and of its conllituents at large, every member ought I thiuk to be (truck with the im propriety of pressing a matter of such peculiar importance and delicacy, by a bare majority. The proposition now under debate is liable to all the objections to the former one, as well as to the many others that have been stated agaiult it. friom the explanation g*iven by the gentleman from Connecticut, it is evident that this proposi tion may in the result assume the fliape of the original one. It may therefore be fairly comba ted by all tliofe arguments that were brought ci ther against the original proposition, or against the very objectionable manner in which the blanks are proposed to be filled up. I am not insensible that an afliimptjon H"fc4>e state debts is under certain afpecfts, a measure hot unworthy of a favorable attention. If it had nqt leall plausible recommendations, 1 do rtot think it could have obtained so refpetftabie a pa tronage here : lam sure it would not have ori ginated in the quarter which proposed it. But, Sir, it is a quellion that must be coniidered and reconsidered in all its various points of view, and fljtrmore'u'ius already been inveitigacccl, the more objections have multiplied, and the more solid they have appeared. The arguments used in favor of the measure have been supposed weighty,but,Sir, I consider them as unsupported. It has been contended that the state debts are in their nature d#bts of the United States ; that they were only from different offices, and have borne a different denomination, but that in justice they are the debts of the United States, #nd that the individual creditors can of right claim payment ofthe fame from the general government. I deny the principle, Sir, and I think it is dis proved by the arguments of the gentlemen them selves. If the debts of the particular states be nothing more than the debts of the United States underanotherdenoinination,andifwe are bound to provide for them precisely as for the debts of the United Slates,let gentlemen consider whether they are not bound to view them in this light wherever they may be found. If they are debts of the United States in the hands of individual citizens, for the fame reason that the other debts in private hands are debts of the United States, must they not be debts of the United States also when in the Treasuries ofthe different states ? Will gentlemen fay that what are called the state debts ought to be viewed in that light when in the hands of citizens, and that this quality foi fakes them the moment they are received into ® -^ ate Treasury. If they wish to preserve con iiftency in their reasoning, they must fay, either that the debts are diflimilar in the hands of pri vate citizens, or that they are limilar in the hands of the states. rhe debts ofrhe particular states cannot in any point of view be considered as actual debts of the United States; and the United States arc not b'lund by any part requisition, or any refoluttons now existing to afiume them, till the accomus are fettled and the balances afcerrained. We have een told, fir, not only that the aflumption of f ie Hate debts by the United States is a matter of ught on the part of the states, and a matter of obligation on the part of the United States, but ikewife that iris equitable; nay, that it is a matter of necefiity. - It has been said that rhe United States are in- v t with the resources of the particular states, aii< t i u therefore they are bound to provide for ,r' fHS tlL *°f e states. I think I may fafely 4\ r. 1 'vm u s t ' l ' s queftiou on a qiieftiou of L ' ' lct ''er the states most urgent in this bu- Kr e r^ tJIe d from providing for their y t»;c eftabjiflmien? of the preient confti WEDNESDAY, MAT i 9, 1790, tution ? If gentlemen aflbrt that to be the cafe, I think it is incumbent upon them then to prove either that the resources which they have eiven, up would exceed their quota of the federal Tequi htions or that the use of these resources by the general government will throw a difproportioned burthen upon that particular part of thecommu mty. Let us consider, fir, what is the ratio in which the states, in their individual capacity, ought to bear the debts of vie United States, and what is the ratio in which' :hey will contribute under the taxes that it is proposed to levy. The only evidence by which we can guide ourselves 111 this enquiry is a ftatenient from the several custom houses. I believe indeed, that such a ftatenient may not be concluftve. I think it is imperfect ; at the fame time it is the best guide in our rcach, and probably it will be fuflicient to illuitrate the present argument—The state of New-Hampshire, accordingto this statement, will contribute about one hundredth part of what will be contributed by the whole. Her ratio of contribution according to her representation would be nearly about one twentieth. Here then, in'fasTt, isafavingof four fifrhs to that state. The state may then take this saving and apply it to the purpose of discharging her domestic debt ; flie is relieved in that proportion, aind therefore in that proportion she is more able to provide for her state debt under the new cjnftitution than under the old one. i lie state of Connedlicut will contribute about one thirty-eighth ; her proper quota would be a- one thirteenth. Here then is a favino- of two-thirds to the state of Connecticut ; ami in that proportion is her fuuation better under the new Conllitution than the oil. Taking theftates eastward of New-York altogether, that the gen tlenxen rendered incapable of bearing the burthen oftheltate debts, l.y the adoption of the new conftirution ; I fay, take the whole together, and they will contribute 'bout a sixth only ; whereas they \vo;?!d b;<\ iad to contribute, a foui th, ii thisconflitutioi. idnotbeeueftablilh ed,and they had paid their part of the debt of the United States In my apprehension, then, fir, as the payment of the state debts cannot beclaiin ed as a matter ofright, neither can such payment be called for 011 die principles of equity, or what is molt of all urged, ncceflity. But we are told that policy is alio in favor of the measure. A gentleman from Mafl'achufetts has said, that the people of Maflachufetts never would submit to a rejection of the measure; that it will create a Ipirit of opposition to the government ; in short, that it will endanger the union itfelf. I confefi that thefearc consequences that would be dreadful to ine, if I could suppose they would really take place, and that evils of greater mag nitude wouht not ensue from an adoption of the measure. It is my opinion, fir, that if the refu fal to alluine the state debts would produce dan gerous consequences to the union, from the dis contents that it is apprehended will grow out of the measure, much more have we to Fear from an afl'umption, particularly if hazarded by a small majority. Sir, it we (ould ascertain the opini ons of our constituents, individually, I believe we rtiould find fourfifths of the citizens of the United States againftthe afl'umption ; I believe we should find more ; I believe I speak within bounds when 1 fay, that those who would be for an afl'umption would not amount to one-fifth; this is indeed probable conjecture only. But on the other hand let meafk, what evidence have we that there will be any great disappointment or difcontenlsfrom a non-afl'umption > The Legislature of the state of New-Hampshire have lately been in felfion ; have they asked for this afl'umption ? No; on the contrary, tho* they have not inftruifted their de legates to vote against it, it appears that it was thought of, and that the bulk of the members disapproved of it. The Legislature of Maflachu fetts hive been in session; they were apprized that this matter was under consideration, and yet there has been no declaration from them, as far as 1 know, that can induce us to believe they wish for it; on the contrary, it would appear from the measures they have taken to provide for the paymentof theirftate debt, that they had proceeded on a supposition that an aflumption would not take place. With refpetfi to several other states, their Legislatures have also been in none of them, except South-Cafolina, have made any declaration on the fubjed:. If we are to disregard that species of evidence, a"nd to look back to the expeiftations of the people, I do not think that there is afingle indication that 457 , this measure was ever thought of by our condim ents. Sir, I may fafely fay, it was never expected by the generality of them. It has been said, too, that policy recommends the measure. It has been repeated that if the as sumption does not take place, no part of the re venues drawn from the union at large will return to the distant parts of it. Sir, I thought this ar gument had been set aside fouitiine lince The very reverie will happen. The Hate debts have begun already to travel towards the central parts ot the union, and to such an amount as to make it probable, that it they are provided for by us nearly the whole will follow. Should this be the cafe, I believe such disadvantages will ensue as will prove the measure very impolitic. Ia proportion as the whole money contributed in the way of taxes shall center near the government or in a particular part of the union, yon increase the evil ofdifcordant interests and local jealousies which is already too much felt. Bur, perhaps tnis is not the worst consequence to be apprehen -1 concieve that a very great part of the proper debt of the United States will q;o into the hands of foreigners, and that wethalfbe heavily burdened in paying an interest to them which cannot be expected to remain in the country ; and in proportion as you increase thedebtof the uni ted States you will increase this evil. l am of opinion alf6 that the measure is not politic, because, if the public debt is a public e vil, an adainption of the state debts will enor mously increase, and perhaps, perpetuate i»- It is my idea, Sir, that the United States and the ieveral ltates could discharge a debt of eighty millions, with greater ease and in less time ?lian the United States alone could do it. I found my opinion on this consideration, that after the United States/hall have resorted to every means oi taxation within their power, there will still re main resources from which monies mayberaifed by the ltates Nay I will go farther, and illustrate the remark by adding, that after a state shall l ts P ower of taxation to every ob ject falling under general laws, there would still remain resources from which further taxes mia-hc be drawn within subdivisions of it, by the subor dinate authorities of the state. But lir, when we consider, that in foine parts of the union there is an unconquerable aversion to direcltaxes, at least it laid by the general government; that in other parts an equal aversion to excises prevails ; how will the United States, so circumscribed as to the held of taxation, be able to draw forth such re- It has been aderted that it would be politic to afluine the state debts, because it would add itrength to t;he national government. There is no man more anxious for the success of the go vernment than lam, and no one who will join more heartily in curing its defects ; but I wifli tliefe de ters to be remedied by additional constitutional poweis, i t they should be found neceflary This mJdy y P '° l)er ' Cffed:aa] > and Permanent re- Several gentlemen, Sir, have gone into another held of argument in favor of this measure. It has been said, that theconftitution itfelf requires the aflumption. One of u.y colleagues has alked a very proper quell, on,—lf as we have been told the aflumption originated in the convention why were not words inferred that would have incor porated and made the state debts part of the debts of the United States? Sir, if there was a majority who disapproved of the measure, certainly ~0 ar gument can be drawn from this source • if there was a majority who approved of it, but thought it inexpedient to make it a part of the constituti on, they mull have been reitrained by a fear thac it might produce diffentions and render the fuc cess ot their plan doubtful. Ido recoiled: that fiich a measure was proposed, and, if my memory does not deceive me, the very gentleman who now appeals to the constitution in support of his argument, disrelished the measure at that time and alfigned for a reason, that it would adminis ter relief perhaps exadlly in proportion as the ltates had been deficient in making exertions It has been also remarked that the constitution, having been established for obtaining perfect jus tice, it cannot be carried into effect unless full justice is done on this fubjedl, orin other words, unless the state debts are assumed. Sir, if we are to take these words in their full extent, we must not stop merely with securing justice to the cre ditors of the government, we Ihould also endea vour to secure justice to every private creditor Hi(so [Whole No. irj.]
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