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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 --TUESDAY, APRIL 27, 1784.
Congress assembled: Present, eleven states as before.
Congress resumed the consideration of the report of the grand committee, appointed to report to Congress the arrears of interest, &c.
A motion was made by Mr. [John Francis] Mercer, seconded by Mr. [Richard Dobbs] Spaight, to postpone the consideration of the report, in order to take up the following:
Resolved, That there will be wanting for the services of the year 1784, from the first to the last day thereof inclusive, the following sums expressed in dollars.
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It must be here observed, that Congress by their resolutions of the 18 of April, 1783, had recommended to the several states the raising an annual revenue for the purpose of discharging the principal and interest of the national debt, by the establishment of certain imposts, and providing such supplementary funds, for a given term of years, as they may judge convenient; but as those recommendations are still under suspense with several of the legislatures, some of them having as yet only acceded to the impost, and others decided neither on the impost nor supplementary funds, however desirable a full compliance therewith is for the preservation of our faith and establishment of a national credit, yet as time has already elapsed and more must elapse, before their final confirmation can be hoped; as after it shall be attained, time will also be requisite to advance the plan to the term of actual collection, good faith requires that in the mean time other measures should be resorted to, for the purpose of discharging the growing interest. It is considered by Congress, that a demand upon the states for the whole arrearages of interest due on the foreign and domestic debt, at the critical moment when they are just emerging from the complicated distresses of a ruinous internal war, would only be attended with a failure of compliance on the part of the states; a consequence that could not but be destructive of public credit. During the continuance of the war, a non-compliance with the requisitions of Congress was attributed to the ravages of the enemy, the loss of commerce, and the employment of our
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citizens in defending instead of cultivating the soil, but if on the conclusion of peace, the same remissness on the part of the states be continued, no other cause can be assigned but a defect in the powers of government, or an inability or disinclination in the citizens of America, to do justice to their public creditors; conclusions equally ruinous and dishonourable. To avoid which, it is indispensably necessary that Congress conform their requisitions to the abilities of their constituents to pay. If this can be accomplished by calling for the interest for one year on the principal and interest heretofore due, and the requisition is punctually complied with, compleate justice will then be rendered to public creditors, as it is a well known fact, that whenever the payment of interest on a principal sum can be well secured, such is the nature of monied operations, that the proprietors of the evidences of such a principal sum can always transfer them for their full value. The requisitions of October 30, 1781, for eight millions of dollars, and of October 16, 1782, for two millions of dollars, have been so partially complied with, and in such unequal proportions, that Congress can retain no hopes of their full execution, and it only remains for them now to adjust the proportions paid by the several states, and where any State has exceeded her equal proportion, to give such State credit in the ensuing requisitions, and charge the deficiency that will then arise on those states, who have failed in paying in an equal ratio.
Individual states, &c. (here take in the paragraph in the report beginning with those words:)
But it will be necessary also to remind the states, &c. (here also take in the paragraph in the report beginning with those words:)
Resolved, That the above sum of 2,986,952.33 dollars, be furnished by the respective states in the following proportions, viz.
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New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pensylvania, Delaware, Maryland, Virginia, North Carolina, South Carolina, Georgia; according to the apportionment made in April, 1783.
And in order to ascertain the precise sum due to the domestic creditors, the Superintendant of finance is hereby directed to cause all the loan-office certificates, and other public securities, to be revised and liquidated anew, and the interest due thereon, to the last day of the year, 1783, to be added to the principal sums and securities issued agreeable thereto.
On the question to postpone for the purpose above-mentioned, the yeas and nays being required by Mr. [John Francis] Mercer,
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So it passed in the negative.
The report of the grand committee, appointed to prepare and report to Congress, the arrears of interest on the national debt, together with the expences for the year 1784, and a
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requisition of money on the states for discharging the same, being amended to read as follows:
Resolved, That there will be wanting for arrears of interest on the national debt, to the end of the year 1783, and for the interest of the foreign debt 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.
Interest on the national debt, as follows:
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The committee were apprised that the resolutions of Congress of April the 18, 1783, had recommended to the several states the raising an annual revenue, for the purpose of discharging the principal and interest of the national debt, by the establishment of certain imposts, and providing supplementary funds for a given term of years, to be raised in such a way as they might judge most convenient: but it occurred to them, that those recommendations were still under suspense with several of the legislatures; some of them having as yet acceded to the impost only, and others decided neither on the impost nor supplementary funds: that however desirable a compliance therewith is, for the preservation of our faith, and establishment of a national credit, yet as time has already elapsed, and more must elapse before their final confirmation can be hoped, as, after it
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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 resolution of Congress of September 4 and 10, 1782, and appropriated to the sole purpose of paying the interest of the public debt. This requisition gave license 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 payments 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 this 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 required to revise and reform their proceedings herein, and to extend the benefits, both past and future of this provision, equally and impartially to all persons within its description.
Your committee then came to consider in what way it would be best to call for the sums requisite for the services
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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 compleated by the states, to its full establishment; and that cloathing, subsistance 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 requisition 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 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
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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; a statement of the expenditures of which sums should be made out and forwarded to the legislatures of the several states. 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 shew 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
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necessaries and habitual comforts, and therefore needing new supplies out of the first proceeds of their labour. Forbearance then, to a certain degree, will suggest itself to them. Congress entrusted with the dispensation of justice between the public and its creditors, 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 a proportion 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 one half of their original quota thereof. And that these payments be appropriated 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, and the punctual compliance of every State is expected, to enable the Federal administration with certainty to satisfy these demands, it is earnestly and warmly recommended to the abler states to go as far beyond this proportion in specie, as their happier situation will admit, under an assurance, that such further contributions will be applied towards discharging the public debt, agreeably to the preceding statement, and will be placed to their credit in the next requisitions, with interest thereon from the time of payment: and also that before any further
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demand is made upon the states, under the requisition for two millions of dollars, or the requisition for eight millions of dollars, Congress will revise the quotas of the several states mentioned in the said requisitions respectively, and will make them agreeable to justice, upon the best information Congress may have when such demand is made. But as all our exertions will probably fall short of their full object, in that case it is believed, that the public creditors seeing the load of interest accumulated during the war, greater than can be discharged in the first year of peace, will be contented for the present, to receive the earlier part of these arrears, and to rely for the residue on the efforts of the ensuing year.
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 taken measures, and will continue their endeavours 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 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 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
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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 shew itself, and desirous that no time should be unnecessarily lost, they followed it with another recommendation of the 18th of 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 second the apportionment of the 1,200,000 dollars; the third that of
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the eight millions; the fourth that of the two millions; the fifth the sums paid by the several states in part of their respective quotas to the last day of the year 1783; and the sixth the sums now required to make up one half of their respective quotas of the eight millions, expressed in dollars, tenths and hundredths of dollars.
[A Table of the several existing Requisitions, and of the Payments made under them.]
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Resolved, That Congress agree to the said report.
On the report of a committee, consisting of Mr. [Thomas] Jefferson, Mr. [Roger] Sherman and Mr. [Elbridge] Gerry,
Resolved, That the Superintendant of finance be, and he hereby is directed to take order for the payment of three hundred and thirty-three dollars and one-third of a dollar, to the guardian of Hugh Mercer, son of the late General Mercer, for one year's education and board.1
[Note 1: 1 This report, in the writing of Thomas Jefferson, is in the Papers of the Continental Congress, No. 19, IV, folio 57. The motion, in the writing of Jefferson, is on folio 59. It was seconded [David] Howell.]
The Committee consisting of Mr [James] McHenry, Mr. [Jacob] Read and Mr. [Jeremiah Townley] Chase to whom was referred the account of Mr George Mann of the City of Annapolis tavern keeper for a public entertainment given by order of the United States in
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Congress assembled to the Commander in chief on the 22d. of December, 1783--Report:
That the entertainment was given to a very numerous assemblage of guests was exceedingly plentiful and the provisions and liquors good in their kind.
The Committee are therefore of opinion that an order do issue in favour of the said Mr. George Mann for the sum of six hundred and sixty four dollars and 75/90 of a Dollar in full of his said account.1
[Note 1: 1 This report, in the writing of Jacob Read, is in the Papers of the Continental Congress, No. 19, IV, folio 3. The indorsement states that it was referred on this day, with the account, to the Superintendent of finance to take order. "Copies transmitted Accot. enclosed delivd. Mr. Mann May the 13, 1784."]
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