perpetuate a moneyed interest in the United States; that this moneyed interest would gain the ascendence of the landed interest; would resort to places of luxury and splendor, and, by their example and influence, become dangerous to our republican constitutions. He said, however, that the variances of opinion and indecision of Congress were alarming, and required that something should be done; that it would be better to new-model the Confederation, or attempt any thing, rather than to do nothing.

Mr. MADISON reminded Congress that the commutation proposed was introduced as a compromise with those to whom the idea of pensions was obnoxious, and observed, that those whose scruples had been relieved by it had rendered it no less obnoxious than before, by stigmatizing it with the name of a perpetuity. He said, the public situation was truly deplorable. If the payment of the capital of the public debts was suggested, it was said, and truly said, to be impossible; if funding them and paying the interest was proposed, it was exclaimed against as establishing a dangerous moneyed interest, as corrupting the public manners, as administering poison to our republican constitutions. He said, he wished the revenue to be established to be such as would extinguish the capital, as well as pay the interest, within the shortest possible period, and was as much opposed to perpetuating the public burdens as any one; but that the discharge of them in some form or other was essential, and that the consequences predicted therefrom could not be more heterogeneous to our republican character and constitutions than a violation of the maxims

portion, her interest lies against a general revenue, otherwise than as she is interested, in common with others, in the support of the Confederacy and tranquillity of the United States; but against abatements, and against a common mass. The vacant lands are a favorite object to her.

Virginia, in common with the Southern States, as likely to enjoy an opulent and defenceless trade, is interested in a general revenue, as tending to secure to her the protection of the Confederacy against the maritime superiority of the Eastern States; but against it, as tending to discharge loan-office debts, and to deprive her of the occasion of taxing North Carolina. She is deeply interested in abatements, and essentially so in a common mass; not only her eccentric expenditures being enormous, but many of her necessary ones having received no previous or subsequent sanction. Her cession of territory would be considered as a sacrifice.

North Carolina is interested in a general revenue, as tending to insure the protection of the Confederacy against the maritime superiority of the Eastern States, and to guard her trade from separate taxation by Virginia and South Carolina. The loans of her citizens are inconsiderable. In abatements, and in a common mass, she is essentially interested. In the article of territory, she would have to make a sacrifice.

South Carolina is interested, as a weak and exposed state, in a general revenue, as tending to secure to her the protection of the Confederacy against enemies of every kind, and as providing for the public creditors, her citizens being not only loan-office creditors beyond her proportion, but having immense unliquidated demands against the United States. As restraining her power over the commerce of North Carolina, a general revenue is opposed to her interests. She is also materially interested in abatements, and in a common mass. In the article of territory, her sacrifice would be inconsiderable.

Georgia, as a feeble and opulent frontier state, is peculiarly interested in a general revenue, as tending to support the Confederacy. She is also interested in it somewhat by the creditors of her citizens. In abatements she is also interested, and in a common mass essentially so. In the article of territory, she would make an important sacrifice.

To make this plan still more complete, for the purpose of removing all present complaints, and all occasions of future contests, it may be proper to include in it a recommendation to the states to rescind the rule of apportioning pecuniary burdens according to the value of the land, and to substitute that of numbers, reckoning two slaves as equal to one freeman.

This, it is to be observed, is only the list of loan-office debts. The unliquidated debts, and Jiquidated debts of other denominations due to individuals, will vary inexpressibly the relativu quantum of credits of the several states. It is to be further observed, that this only shows the original credits, transfers having been constant; heretofore they have flowed into Pennsylvania Other states may hereafter have an influx.

of good faith and common honesty. It was agreed that the report for commuting half-pay should lie on the table till to-morrow, in order to give an opportunity to the delegates of Connecticut to make any proposition relative thereto which they should judge proper.

The report of the committee, consisting of Mr. Gorham, Mr. Hamilton, Mr. Madison, Mr. Rutledge, and Mr. Fitzsimmons, was taken up. It was proposed that, in addition to the impost of five per cent., ad valorem, the states be requested to enable Congress to collect a duty of one eighth of a dollar per bushel on salt imported; of six ninetieths per gallon on all wines, do; and of three ninetieths per gallon on all rum and brandy, do.

On the first article it was observed, on the part of the Eastern States, that this would press peculiarly hard on them, on account of the salt consumed in the fisheries; and that it would, besides, be injurious to the national interest by adding to the cost of fish; and a drawback was suggested.

On the other side, it was observed that the warmer climate and more dispersed settlements of the Southern States required a greater consumption of salt for their provisions; that salt might and would be conveyed to the fisheries without previous importation; that the effect of the duty was too inconsiderable to be felt in the cost of fish; and that the rum in the North-Eastern States being, in a great degree, manufactured at home, they would have greater advantage, in this respect, than the other states could have in the article of salt; that a drawback could not be executed in our complicated government with ease or certainty.

Mr. MERCER, on this occasion, declared, that, although he thought those who opposed a general revenue right in their principles, yet, as they appeared to have formed no plan adequate to the public exigencies, and as he was convinced of the necessity of doing something, he should depart from his first resolution, and strike in with those who were pursuing the plan of a general revenue.

Mr. HOLTEN said, he had come lately into Congress with a predetermination against any measures, for discharging the public engagements, other than those pointed out in the Confederation, and that he had hitherto acted accordingly; but that he saw now so clearly the necessity of making provision for that object, and the inadequacy of the Confederation thereto, that he should concur in recommending to the states a plan of a general revenue.

A question being proposed on the duties on salt, there were nine ayes; New Hampshire alone being no; Rhode Island not present.

It was urged, by some, that the duty on wine should be augmented; but it appeared, on discussion, and some calculations, that the temptation to snuggling would be rendered too strong, and the revenue thereby diminished. Mr. BLAND proposed, that instead of a duty on the gallon, an ad valorem duty should be laid on wine; and this idea, after some loose discussion, was agreed to, few of the members interesting themselves therein, and some of them having previously retired from Congress.

FRIDAY, February 28.

A motion was made by Mr. WOLCOTT and Mr. DYER, to refer the half-pay to the states, little differing from the late motion of Mr. Gilman, except that it specified five years' whole pay as the proper ground of composition with the officers of the respective lines. On this proposition the arguments used for and against Mr. Gilman's motion were recapitulated. It was negatived, Connecticut alone answering in the affirmative, and no division being called for.

On the question to agree to the report for a commutation of five years' whole pay, there being seven ayes only, it was considered whether this was an appropriation, or a new ascertainment of a sum of money necessary for the public service. Some were of opinion, at first, that it did not fall under that description, viz., of an appropriation. Finally, the contrary opinion was deemed, almost unanimously, safest, as well as the most accurate. Another question was, whether seven or nine votes were to decide doubts; whether seven or nine were requisite on any question. Some were of opinion that the secretary ought to make an entry according to his own judgment, and that that entry should stand unless altered by a positive instruction from Congress. To this it was objected, that it would make the secretary the sovereign in many cases, since a reversal of his entry would be impossible, whatever that entry might be; that, particularly, he might enter seven votes to be affirmative

on a question where nine were necessary, and if supported in it by a few states it would be irrevocable. It was said, by others, that the safest rule would be to require nine votes to decide, in all cases of doubt, whether nine or seven were necessary. To this it was objected, that one or two states, and in any situation six states, might, by raising doubts, stop seven from acting in any case which they disapproved. Fortunately, on the case in question, there were nine states of opinion that nine were requisite; so the difficulty was got over for the present.

On a reconsideration of the question whether the duty on wine should be on the quantity or on the value, the mode reported by the committee was reinstated, and the whole report recommitted, to be included with the five per cent., ad valorem, in an act of recommendation to the states.

MONDAY, March 3.

The committee on revenues reported, in addition to the former articles recommended by them, a duty of two thirds of a dollar per one hundred and twelve pounds on all brown sugars; one dollar on all powdered, lumped, and clayed sugars, other than loaf sugars; one and one third of a dollar per one hundred and twelve pounds on all loaf sugars; one thirtieth of a dollar per pound on all Bohea teas, and one fifteenth of a dollar on all finer India teas. This report, without debate or opposition, was recommitted, to be incorporated with the general plan.

TUESDAY, March 4, and WEDNESDAY, March 5.

The motion of Mr. HAMILTON, on the Journal, relative to abatement of the quotas of distressed states, was rejected, partly because the principle was disapproved by some, and partly because it was thought improper to be separated from other objects to be recommended to the states. The latter motive produced the motion for postponing, which was lost.

The committee to whom had been referred the letters of resignation of Mr. Morris, reported, as their opinion, that it was not necessary for Congress immediately to take any steps thereon. They considered the resignation as conditional, and that, if it should eventually take place at the time designated, there was no necessity for immediate provision to be made.

Mr. BLAND moved, "that a committee be appointed to devise the most proper means of arranging the department of finance."

This motion produced, on these two days, lengthy and warm debates; Mr. LEE and Mr. BLAND, on one side, disparaging the administration of Mr. Morris, and throwing oblique censure on his character. They considered his letter as an insult to Congress; and Mr. LEE declared that the man who had published to all the world such a picture of our national character and finances was unfit to be a minister of the latter. On the other side, Mr. WILSON and Mr. HAMILTON went into a copious defence and panegyric of Mr. Morris; the ruin in which his resignation, if it should take place, would involve public credit and all the operations dependent on it; and the decency, though firmness, of his letters. The former observed, that the declaration of Mr. Morris, that he would not be the minister of injustice, could not be meant to reflect on Congress, because they had declared the funds desired by Mr. Morris to be necessary; and that the friends of the latter could not wish for a more honorable occasion for his retreat from public life, if they did not prefer the public interest to considerations of friendship. Other members were divided as to the propriety of the letters in question. In general, however, they were thought reprehensible; as in general, also, a conviction prevailed of the personal merit and public importance of Mr. Morris. All impartial members foresaw the most alarming consequences from his resignation. The prevailing objection to Mr. Bland's motion was, that its avowed object and tendency was to reestablish a board, in place of a single minister of finance. Those who apprehended that, ultimately, this might be unavoidable, thought it so objectionable that nothing but the last necessity would justify it. The motion of Mr. BLAND was lost, and a committee appointed, generally, on the letters of Mr. Morris.1

THURSDAY, March 6. The committee on revenue made a report, which was ordered to be printed for each member, and to be taken up on Monday next.

FRIDAY, March 7.

Printed copies of the report above-mentioned were delivered to each noinber, e follows. viz. :

1. "Resolved, That it be recommended to the several states, as indispensably necessary to the restoration of public credit, and the punctual and honorable discharge of the public debts, to vest in the United States, in Congress assembled, a power to levy, for the use of the United States, a duty of five per cent., ad valorem, at the time and place of importation, upon all goods, wares, and merchandises of foreign growth and manufactures, which may be imported into any of the said states from any foreign port, island, or plantation, except arms, ammunition, clothing, and other articles imported on account of the United States, or any of them; and except wool-cards, cotton-cards, and wire for making them; and also except salt during the war.

2. Also, a like duty of five per cent., ad valorem, on all prizes and prize goods condemned in the Court of Admiralty of these United States as lawful prize.

3. Also, to levy a duty of one eighth of a dollar per bushel on all salt, imported as aforesaid, after the war; one fifteenth of a dollar per gallon on all wines; one thirtieth of a dollar per gallon on all rum and brandy; two thirds of a dollar per one hundred and twelve pounds on all brown sugars; one dollar per one hundred and twelve pounds on all powdered, lump, and clayed sugars, other than loaf sugars; one and one third of a dollar per one hundred and twelve pounds on all loaf sugars; one thirtieth of a dollar per pound on all Bohea tea; and one fifteenth of a dollar per pound on all finer India teas, imported as aforesaid, after in addition to the five per cent. above mentioned.

4. Provided, that none of the said duties shall be applied to any other purpose than the discharge of the interest, or principal, of the debts which shall have been contracted on the faith of the United States for supporting the present war, nor be continued for a longer term than twenty-five years; and provided, that the collectors of the said duties shall be appointed by the states within which their offices are to be respectively exercised; but when so appointed shall be amenable to, and removable by, the United States, in Congress assembled, alone; and, in case any state shall not make such appointment within after notice given for

that purpose, the appointment may then be made by the United States, in Congress assembled. 5. That it be further recomiended to the several states to establish for a like term, not exceeding twenty-five years, and to appropriate to the discharge of the interest and principal of the debts which shall have been contracted on the faith of the United States, for supporting the present war, substantial and effectual revenues, of such a nature as they may respectively judge most convenient, to the amount of and in the proportion following, viz.:

#

The said revenues to be collected by persons appointed as aforesaid, but to be carried to the separate credit of the states within which they shall be collected, and be liquidated and adjusted among the states according to the quotas which may from time to time be allotted to them. 6. That an annual account of the proceeds and application of the afore mentioned revenues shall be made out and transmitted to the several states, distinguishing the proceeds of each of the specified articles, and the amount of the whole revenue received from each state.

7. That none of the preceding resolutions shall take effect until all of them shall be acceded to by every state; after which accession, however, they shall be considered as forming a mutual compact among all the states, and shall be irrevocable by any one or more of them without the concurrence of the whole, or a majority, of the United States in Congress assembled.

8. "That, as a further means, as well of hastening the extinguishment of the debts as of establishing the harmony of the United States, it be recommended to the states which have passed no acts towards complying with the resolutions of Congress of the sixth of September and the tenth of October, 1780, relative to territorial cessions, to make the liberal cessions therein recommended; and to the states which may have passed acts complying with the said resolutions in part only, to revise and complete such compliance.

9. "That, in order to remove all objections against a retrospective application of the constitutional rule of apportioning to the several states the charges and expenses which shall have been supplied for the common defence or general welfare, it be recommended to them to enable Congress to make such equitable exceptions and abatements as the particular circumstances of the states, from time to time, during the war, may be found to require.

10. "That, conformably to the liberal principles on which these recommendations are founded, and with a view to a more amicable and complete adjustment of all accounts between the United States and individual states, all reasonable expenses which shall have been incurred by the states without the sanction of Congress, in their defence against, or attacks upon, British or savage enemies, either by sea or by land, and which shall be supported by satisfactory proofs, shall be considered as part of the common charges incident to the present war, and be allowed

as such.

11. That, as a more convenient and certain rule of ascertaining the proportions to be supplied by the states, respectively, to the common treasury, the following alteration, in the Articles of Confederation and Perpetual Union between these states, be, and the same is hereby, agreed to in Congress; and the several states are advised to authorize their respective delegates to subscribe and ratify the same, as part of the said instrument of union, in the words following, to wit:

"So much of the eighth of the Articles of Confederation and Perpetual Union between the thirteen states of America as is contained in the words following, to wit,-" All charges of war. and all other expenses that shall be incurred for the common defence or general welfare, and allowed by the United States in Congress assembled, shall be defrayed out of a common treasury, which shall be supplied by the several states, in proportion to the value of all land within each state granted to, or surveyed for, any person, as such land, and the buildings and improvements thereon, shall be estimated according to such mode as the United States in Congress assembled shall. from time to time, direct and appoint," is hereby revoked and made veid.

and n place thereof it is declared and concluded, the same having been agreed to in a Congress of the United States, that all charges of war, and all other expenses that shall be incurred for the common defence or general welfare, and allowed by the United States in Congress assembled, shall be defrayed out of a common treasury, which shall be supplied by the several states in proportion to the number of inhabitants, of every age, sex, and condition, except Indians not paying taxes in each state; which number shall be triennially taken and transmitted to the United States, in Congress assembled, in such mode as they shall direct and appoint; provided, always, that in such numeration no persons shall be included who are bound to servitude for life, according to the laws of the state to which they belong, other than such as may be between the ages of * years.'"

MONDAY, March 10.

The committee, consisting of Mr Carroll, Mr. Dyer, and Mr. Mifflin, to whom was referred the report of the committee on two paragraphs of a report of the grand committee, brought in a report; and the report of the committee being taken into consideration, and amended, so as to read as follows,

"That such officers as are now in service, and shall continue therein to the end of the war, shall be entitled to receive the sum of five years' full pay, in money or securities, on interest at six per cent. per annum, at the option of Congress, instead of the half-pay promised for life by the resolution of the twenty-first of October, 1780; the said securities to be such as shall be given to the other creditors of the United States; provided that it be at the option of the lines of the respective states, and not of officers individually in those lines, to accept or refuse the same; that all officers who have retired from service upon the promise of half-pay for life shall be entitled to the benefits of the above resolution; provided that those of the line of each state collectively shall agree thereto; that the same commutation shall extend to the corps not belonging to the lines of particular states, the acceptance or refusal to be determined by corps; that all officers entitled to half-pay for life, not included in the above resolution, may, collectively, agree to accept or refuse the commutation,”

much debate passed relative to the proposed commutation of half-pay; some wishing it to take place on condition only that a majority of the whole army should concur; others preferring the plan above expressed, and not agreed to.

TUESDAY, March 11.

The report entered on Friday, the 7th of March, was taken into consideration. It had been sent, by order of Congress, to the superintendent of finance for his remarks, which were also on the table. These remarks were, in substance, that it would be better to turn the five per cent., ad valorem, into a tariff, founded on an enumeration of the several classes of imports, to which ought to be added a few articles of exports; that, instead of an apportionment of the residue on the states, other general revenues - from a land-tax, reduced to one fourth of a dollar per hundred acres, with a house-tax, regulated by the numbers of windows, and an excise on all spirituous liquors, to be collected at the place of distillery - ought to be substituted, and, as well as the duties on trade, made coëxistent with the public debts; the whole to be collected by persons appointed by Congress alone. And that an alternative ought to be held out to the states, either to establish the permanent revenues for the interest, or to comply with a constitutional demand of the principal within a very short period.

In order to ascertain the sense of Congress on these ideas, it was proposed that the following short questions should be taken:

1. Shall any taxes, to operate generally throughout the states, be recommended by Congress, other than duties on foreign commerce?

2. Shall the five per cent., ad valorem, be exchanged for a tariff?

3. Shall the alternative be adopted, as proposed by the superintendent of finance?

On the first question the states were- New Hampshire, no; Connecticut, no; New Jersey, no; Maryland, no; Virginia, no; six noes and five ayes — lost. On the second question there were seven ayes.

The third question was not put, its impropriety being generally proclaimed.

* In the draft, as laid before the committee by in the tenth paragraph, the word "reasonable" before the word "expenses" was not inserted; but to the paragraph was added, "provided that this allowance shall not be extended to any expenses which shall be declared, by nine votes in Congress, to be manifestly unreasonable." In other respects the original draft was unaltered, except that a former resolution of Congress, in the words of the ninth paragraph. was incorporated by the secretary before it went to the press.