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A Century of Lawmaking for a New Nation: U.S. Congressional Documents and Debates, 1774-1875
Journals of the Continental Congress --MONDAY, APRIL 5, 1784.
Congress assembled: Present, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pensylvania, Maryland, Virginia North Carolina; and from the State of South Carolina, Mr. [Jacob] Read.
Congress took into consideration the report of a grand committee, consisting of Mr. [Thomas] Jefferson, Mr. [Abiel] Foster, Mr. [George] Partridge, Mr. [David] Howell, Mr. [Roger] Sherman, Mr. [John] Beatty, Mr. [John] Montgomery, Mr. [James] Tilton, Mr. [Jeremiah Townley] Chase, Mr. [Richard Dobbs] Spaight and Mr. [Jacob] Read, appointed to prepare and report to Congress, the arrears of interest on the national debt, together with the interest and expences of the year 1784, from the first to the last day thereof inclusive, and a requisition of money on the states for discharging the same.
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A motion was made by Mr. [Hugh] Williamson, seconded by Mr. [Jacob] Read, that it be referred to the superintend.t of finance to report. The report of the grand committee being as follows:
"Resolved, That there will be wanting1 for arrears of interest, and for the interest and services of the present year 1784, from the first to the last day thereof inclusive, the following sums expressed in dollars, tenths and hundredths of Dollars.
[Note 1: 1 From this point the entries in the Journal are in the writing of Benjamin Bankson of the Secretary's office.]
Interest on the National Debt as follows:
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The committee were apprized that the resolutions of Congress of April the 18th, 1783, had recommended to the several States the raising an annual revenue, by the establishment of certain imposts, for the purpose of discharging the national debt, principal and interest: but it occurred to them, that those recommendations were still before several of the legislatures; that however desirable a compliance therewith is for the preservation of our faith, and establishment of a national
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Credit, yet as time has already elapsed, and more must elapse before their final confirmation can be hoped, as, after it shall be obtained, time will also be requisite to advance the plan to the term of actual collection, good faith requires that in the mean while other measures should be resorted to for the purpose of discharging the growing interest.
In the statement of the interest due at the close of the year 1782, the committee have supposed its amount lessened by 1,200,000 Dollars, required and apportioned by the resolutions of Congress of September the 4th and 10th, 1782, and appropriated to the sole purpose of paying the interest of the public debt. This requisition gave licence to the states, to apply so much as should be necessary of their respective quotas of it to the payment of interest due on Certificates issued from the Loan office of their own states, and other liquidated debts of the United States contracted therein. Hence they suppose it has happened, that the actual payment of these quotas, have been uncommunicated to the Office of finance for the United States. The committee are of opinion, that the states should be desired to communicate to the Superintendant of Finance, the payments they have made under its requisition, and where they have been incomplete, to hasten their completion, as the means still relied on by Congress for the discharge of that part of the interest of the public debt. And while on this subject, they beg leave to add, that from the representation to Congress by the Minister of France, referred to this committee, they learn that in some of the states, a discrimination has taken place between the citizens of their own, and subjects or citizens of other countries, which was not authorised by the said resolution: They are of opinion, that such states should be requested to revise and reform their proceedings herein, and to extend the benefits of this provision equally and impartially to all persons within its description.
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Your committee came then to consider in what way it would be best to call for the sums requisite for the services before stated: and they thought it their duty in the first place to enquire, whether no surpluses might remain on former requisitions of Congress, after the purposes were effected to which they were originally appropriated; under an assurance that it would be both the duty and sense of Congress to apply such surpluses, in every instance, towards lessening the next requisitions on the states. They found in fact that such a surplus would remain on the requisition of October 30, 1781, for eight millions of Dollars for the services of the ensuing year; and that this surplus would be great from the following circumstances: that requisition was estimated on supposition, that the continental Army would be completed by the states, to its full establishment; and that cloathing, subsistence and other necessaries for such an army, must of course be provided. The states were far short of producing such an army. Hence the calls for money were proportionally abridged. It was estimated too on the further supposition that we might be disappointed in the endeavours we were then exerting to borrow money, both at home and abroad, and of course that the whole must be supplied by taxes. Loans however were obtained, and the surplus increased by this second cause. A third circumstance has further enlarged it. The payments on this requistion have been small and slow. Hence, instead of money, those who served and supplied the United States have received certificates only that money is due to them, and these debts have been transferred to the fund proposed to be raised by way of impost: so that, though the debts exist, they are removed from this to another fund. To know then the amount of this surplus, the committee extended their enquiries to the sums actually received under this requisition, the purposes to which they have been applied, and the
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anticipations thereof still unsatisfied. They found that 1,486,511.71 only of the eight millions of Dollars had been received at the treasury at the close of the year 1783; that these had been applied to the services of the years 1782 and 1783, and that for other services of the same years, debts were contracted to the amount of about one million of Dollars more, which depend for their discharge on further receipts under this requisition. Your committee then are of opinion, that a surplus of 5,513,488.28 Dollars will remain of this requisition after answering all the demands which actually arose against it, which were not answered by other means, nor transferred to other funds; and that this surplus ought to be applied so far as it will go to the common purposes of the United States, so as to prevent new requisitions on them till the old shall have been exhausted, and to show to those who may have paid their whole quota of any requisition, that they will not be called on anew till all the other states shall in like manner have paid up their quotas.
Your committee found also that there was a requisition of Congress of October 16, 1782, for two millions of dollars for the services of the year 1783, on which some small payments had been tendered, but that the Superintendant of Finance had found it better to receive and credit them as part of the eight millions. They are accordingly comprehended in the sum before stated to have been paid in under that head.
Having thus stated the demands existing against the states, the committee would have performed but half their duty, had they passed over, unnoticed, their condition to pay them. Their abilities must be measured in weighing their burthens. Their creditors themselves will view them just relieved from the ravages of predatory armies, returning from an attendance on camps, to the culture of their fields; beginning to sow, but not yet having reaped; exhausted of necessaries and habitual comforts, and therefore needing
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new supplies out of the first proceeds of their labour. Forbearance then, to a certain degree, will suggest itself to them. Those entrusted with the dispensation of justice between them, will suppose both parties desirous that their mutual situations should be considered and accommodated. Your committee are of opinion, that if the whole balances of the two requisitions of eight and of two millions, should be rigorously called into payment within the course of the present year, a compliance with such call would produce much distress; and that some term short of this should be fixed on, within the reach of the least as well as of the most able states. They propose therefore, that the states be required to furnish, within the course of the present year, such part of their deficiencies under the requisition of eight millions, as, with their payments to the close of the last year, will make up three-fourths of their original quota thereof: and that these payments be appropriated to the services of the present year 1784, in conformity with the statement in the first part of this report, giving generally where accommodation cannot be effected among the several objects, a preference according to the order in which they are arranged in the said statement.
But while this proportion of former deficiencies is of necessity called for, under the pressure of demands which will admit neither denial nor delay, the committee must acknowledge that even the punctual compliance expected from all the states will not effect completely all the purposes of their preceding statement. To accomplish these perfectly, to enable the federal administration to fulfil the whole of those just and desirable objects, they wish earnestly and warmly to encourage the abler states to go as far beyond this proportion as their happier situation will admit, under an assurance that their further contributions will be applied towards reducing the interest and principal of the public
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debt, and will be placed to their credit in the next requisitions, with interest thereon from the time of payment.
Individual states have at times thought it hard that while, in their own opinion, they were in advance for the United States on accounts existing and unsettled between them, they should yet be called on to furnish actual contributions of money. The committee observe in answer to this, first, that almost every State thinks itself in advance: And secondly, that it has been the constant wish of Congress that these accounts should be settled, and the contributions of each be known and credited. They have accordingly put it in the power of the states to effect these settlements: And as a further encouragement to hasten this desirable work, the committee are of opinion Congress should declare, that so soon as these accounts shall be all settled, and it shall appear in favour of what states balances arise, such states shall have credit for the same in the requisitions next ensuing.
But it will be necessary also to remind the states, that no materials have yet been furnished to enable Congress to adjust the ultimate ratio in which the expenditures of the late war shall be apportioned on the states. The Confederation directs that this shall be regulated by the value of the lands in the several states with the buildings and improvements thereon. Experiments made, however, since the date of that instrument, for the purposes of ordinary taxation, had induced doubts as to the practicability of this rule of apportionment; yet Congress thought it their duty to give it fair trial, and recommended to the several states, on the 17th of February, 1783, to furnish an account of their lands, buildings and number of inhabitants, whereon they might proceed to estimate their respective quotas: but apprehending that the incompetence of the rule would immediately show itself, and desirous that no time should be unnecessarily lost, they followed it with another recommendation of the 18th of
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April, 1783, to substitute in lieu of that article in the Confederation another, which should make the number of inhabitants, under certain modifications, the measure of contribution for each State. Both these propositions are still under reference to the several legislatures; the latter accompanied by the earnest wishes and preference of Congress, under full conviction that it will be found in event as equal, more satisfactory, and more easy of execution: The former only pressed if the other should be rejected: The committee are informed, that the states of Connecticut, New Jersey, Pensylvania and South Carolina, have acceded to the alteration proposed; but have no evidence that the other states have as yet decided thereon. As it is necessary that the one or the other measure should be immediately resorted to, they are of opinion it should be recommended to the legislatures which have not yet decided between them, to come to decision at their next meeting.
In order to present to the eye a general view of the several existing requisitions, and of the payments made under them, the Committee has subjoined them in the form of a table, wherein the first column enumerates the states; the 2d the apportionment of the 1,200,000 dollars; the 3d that of the 8,000,000; the 4th that of the 2 millions; the 5th the sums paid by the several states in part of their respective quotas to the last day of the year 1783; and the 6th the sums now required to make up three-fourths of their respective quotas of the 8 millions expressed in Dollars, tenths and hundredths of Dollars.
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[A Table of the several existing Requisitions, and of the Payments made under them]
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It remained lastly to consider, whether no facilities might be given to the payment of these sums by the several states. The Committee observed, that of the purposes for which money is wanting, about a moiety can be answered by nothing but money itself; but that the other moiety, consisting of interest on our domestic Debt, may be effected by procuring discount of the demand in the hands of the holders; an operation which will be shorter, and less impoverishing to the State. And however, in times of greater plenty, the accuracy of fiscal administration might require all transactions to be in actual money, at the treasury itself; yet till our constituents shall have had some respite from their late difficulties, it behoves us to prefer their easement. The committee are therefore of opinion, that the several legislatures may be admitted so to model the collection of the sums now called for, as that, the one half being paid in actual money, the other may be discharged by procuring discounts of interest with our domestic creditors; only taking care that the collection of money shall proceed at least in equal pace with the operations of discount. And to ascertain the
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evidence of discount which shall be receivable in lieu of money, the holders of Loan Office Certificates shall be at liberty to carry them to the office from which they issued; and the holders of certificates and of other liquidated debts of the United States, to carry the same to the Loan Office of that State wherein the debt was contracted, and to have the interest due thereon, settled and certified to the last day of the year, 1783: for which interest, the Loan Officer shall give a certificate in such form, and under such cautions and instructions, as the Superintendant of Finance shall transmit to him: which certificates of interest being parted with by the holder of the principal, shall be deemed evidence that he has received satisfaction for the same, and therefore shall be receivable from the bearer, within the same State, in lieu of money in the proportion before stated. And where Loan Office Certificates, issued after the first day of March, 1778, shall be presented to the Loan Officer, they shall be reduced to their specie value, according to the resolutions of Congress of June 28, 1780, that specie value expressed on some part of the certificate, and the interest thereon settled and certified as in other cases.
The report of a committee on the subject of western Territory, having been referred to the Grand Committee, they have had the same under their consideration, and agreed to the following report:
Congress by their resolution of September 6, 1780, having thought it advisable to press upon the states having claims to the western country, a liberal surrender of a portion of their territorial claims: by that of the 10th of October, in the same year, having fixed conditions to which the union should be bound, on receiving such cessions: and having again proposed the same subject to those states in their address of April 18th, 1783, wherein, stating the national debt, and expressing their reliance for its discharge, on the
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prospect of vacant territory, in aid of other resources, they, for that purpose, as well as to obviate disagreeable controversies and confusions, included in the same recommendations, a renewal of those of September the 6th, and of October the 10th, 1780; which several recommendations have not yet been finally complied with:
Resolved, That the same subject be again presented to the attention of the said states, that they be urged to consider that the war being now brought to a happy termination by the personal services of our soldiers, the supplies of property by our citizens, and loans of money from them as well as from foreigners; these several creditors have a right to expect that funds shall be provided on which they may rely for indemnification; that Congress still consider vacant territory as a capital resource; that this too is the time when our confederacy, with all the territory included within its limits, should assume its ultimate and permanent form: And that therefore the said states be earnestly pressed, by immediate and liberal cessions, to forward these necessary ends, and to remove those obstacles which disturb the harmony of the union, which embarrass its councils, and obstruct its operations.1
[Note 1: 1 At this point Charles Thomson resumes the entries in the Journal.]
On the question to refer the said report to the Superintendant of finance to report thereon, the yeas and nays being required by Mr. [David] Howell,
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So it passed in the negative.
A motion was then made by Mr. [James] McHenry, seconded by Mr. [Richard Dobbs] Spaight, that the first part of the report, from the word "Resolved," to the word and figures "total, 5,480,203.33," inclusive; together with the paragraphs beginning with the words, "in order to present to the eye," down to the words, "and certified as in other cases," inclusive, be referred to the Superintendant of finance to report.
And on this question, the yeas and nays being required by Mr. [James] McHenry,
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So the question was lost.1
[Note 1: 1 This report, in the writing of Jonathan Blanchard, is in the Papers of the Continental Conqress, No. 32, folio 545. According to the indorsement it was presented on this day. Hart's memorial is in No. 42, 3, 467. According to the indorsement it was read April 5. A later indorsement shows that the claim was carried to U. S. Congress, July 10, 1790.
Also, a letter of 20 March, 1784, from Richard Butler. It is in No. 56, folio 303.
Also, a letter of 5 March, 1784, from John Ettwein. It is in No. 78, VIII, folio 409.
Also, a letter of 16 March from James Wood. It is in No. 78, XXIV, folio 453.
Also, a letter of March 16 from John Pierce, which was referred to Mr. [Hugh] Williamson, Mr. [Roger] Sherman and Mr. [Samuel] Hardy. It is in No. 62, folio 13. Committee Book, No. 186, says that no report was made.]
The Committee of the week [Mr. Jonathan Blanchard, Mr. James Wadsworth and Mr. John Beatty] on the memorial of Thomas Hart, setting forth that he had furnished supplies for the army in 1781 and had assurance of being paid in specie. That the memorial and papers accompanying be read in Congress.1
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