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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 --FRIDAY, FEBRUARY 3, 1786


Journals of the Continental Congress, 1774-1789 PREVIOUS SECTION .. NEXT SECTION .. NAVIGATOR

Journals of the Continental Congress, 1774-1789
FRIDAY, FEBRUARY 3, 1786

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Congress assembled. Present as before.

On a report of the commissioner for settling the Army Accounts, to whom was referred a petition of John Buchanan, late of the quartermaster's department, and employed in military service by the commander in chief, with the pay and subsistence of a captain,2

[Note 2: 2 "So much of the memorial of John Buchanan as relates to an allowance for depreciation on his pay" was this day referred to Mr. [Rufus] King, Mr. [Pierse] Long and Mr. [Stephen Mix] Mitchell. This committee was discharged July 31. Committee Book No. 190. Buchanan's memorial was read in Congress Jan. 25, 1783.]

Resolved, That John Buchanan, late of the quartermaster's department, and who is disabled by a wound he received in a gallant action, wherein he, with 18 boatmen, killed and took prisoners a party of 25 british New levies, be comprehended within the benefits of the Ordinance of Congress of June 7, 1785, providing for those that have been disabled


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in the service, in the same manner as if he had been a captain in the Army.

On a report of the paymaster general, to whom was referred a petition of Piere Regnier de Rousi, late a lieutenant colonel in the fourth and second New York regiments, praying an allowance for the depreciation of his pay,

Resolved, That Mr. Regnier de Rousi, having resigned his commission prior to any promise of depreciation, cannot, agreeably to the principles adopted by Congress in such cases, be entitled to this allowance.1

[Note 1: 1 See ante, August 5, 1785.]

On a report of the Commissioner for army accounts, to whom was referred a petition of James Gilliland, late a captain in the corps of Sappers and Miners,

Resolved, That as it appears that James Gilliland, late a captain in the corps of Sappers and Miners, resigned his commission before the conclusion of the war, he cannot be entitled to the benefit of the grants of Land and half pay to the Officers of the Army.

The commissioner for settling the Accounts of the Army, to whom was referred a petition of Bryan Bruin; reports, That the resolution of Congress of the 21 February, 1783, "recommending to the several States, to whom the Officers taken from the line to act in the general staff departments belong, to adjust and discharge, on Account of the United States, the depreciation on their extra pay, in the same manner, and to the same time, they settle their accounts as officers in the line," is a sufficient authority to the state of Virginia, for granting the depreciation on the extra pay of the staff Officers taken from the line of that state, and therefore no particular resolution is necessary in the case of Bryan Bruin,


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Resolved, That Congress agree to this report.

The committee, consisting of Mr. [James] Monroe, Mr. [William Samuel] Johnson, Mr. [Nathaniel] Gorham, Mr. [John Cleves] Symmes and Mr. [Samuel] Livermore, appointed to consider whether any, and what measures may be necessary for Congress to adopt, in pursuance of their recommendations to the several states, on the 18 of April, 1783, having reported as follows:

The committee have thought it their duty, upon the subject above referred to them, to present to the view of Congress, a statement of the amount, and the purposes for which Money is required, with the funds the United States are possessed of, for complying with the same, this1 will enable them to judge of the nature and urgency of those demands, of the efficiency of such funds, or of the further measures it may be necessary to take respecting them.

[Note 1: 1 At this point the copying is begun by John Thaxter.]

By the estimate for the late requisition, it appears that

It appears further to the Committee, that there will be due in the course of the next year, a part of the principal of two of the foreign loans, and afterwards a part of the other loans, agreeably to the stipulations of the several contracts, to be paid annually by instalment, until the whole is extinguished, which will, until that event, proportionally increase the sums called for. That the whole of the domestic debt is not yet liquidated, and that there still remains extensive claims of states and individuals within the same against the United States to be adjusted and settled, which will probably increase the amount beyond what it hath heretofore been estimated at. Nor is there any reason to suppose, from the lights in their possession, that the expences of the government of the United States will be diminished. Some offices have already been abolished, and the Salaries of those absolutely necessary, reduced to as low a scale as can


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be done, to leave any encouragement to men of talents and Character to remain in their service; others, it is true, instituted for the settlement of accounts, will terminate so soon as that desirable end is effected, but this will create but an inconsiderable saving. The Indian department when organized, may also be less expensive than it hath been since the peace, but there must be some appropriation to it. What sum the military department may require, is altogether uncertain, and depends upon many circumstances. Since the peace, it has been thought proper to keep in service about seven hundred men. Upon that compliment the estimate for the requisition was formed; but it is to be recollected that the Indians were at that time suing for peace; that the powers on the coast of Barbary were friendly disposed; and that we had nothing to apprehend from any quarter whatever; and although the necessary measures having been taken to cultivate this good disposition, and to avail ourselves of the favourable juncture; and the Committee have a high confidence in the success of these negotiations, yet they consider it is expedient to be prepared for a contrary event. As, therefore, under this impression, it may be found prudent to establish Magazines in different quarters of the Union, and to keep up at least the aforesaid compliment of men, they apprehend the expences in this department will be encreased. As, therefore, the sums necessary for payment of the interest, and a part of the principal of the foreign loans, will be encreased, those for the payment of the interest on the domestic debt, probably may, and there can be little or no reduction in the expences of the government of the United States, it follows that the demands upon the States, or supplies for federal purposes, must for some time be greater than they have heretofore been.

It remains now to be enquired, how these demands shall be complied with. The federal constitution authorises the United States to obtain money by three means; 1st. by requisition; 2d., by loan; and 3d., by emitting bills of credit. 1st. Of the success of that by requisition, we shall be enabled to form a judgment by a statement of those which have been made, and the compliances of the several Statements1 under them.

[Note 1: 1 "Stats" in the manuscript; see the next footnote.]


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Up to the first day of February, 1786, the payments have been as follows:

It is to be observed, that the two former requisitions were made during the existence and for support of the war; and therefore were not, after its termination, pressed in full on the States; the two latter, however, being a pressure of the former, in the degree, were made upon the estimate of the expences of the government and of the public debt, which must remain the same, or nearly so, subject only to the above incidental alterations, until the debt is paid. So disproportionate, then, have the payments been, and inadequate to the above purposes, that even the interest upon the foreign loans, which had become due, would not have been paid, had it not been that a part of the said loans were as yet unappropriated; this money was therefore applied to this purpose; but this resource is now exhausted.

2d. Shall we then make further loans? In objection to this, it will obviously occur, that unless we can pay the interest due upon the money we have already borrowed, we shall not be able to borrow more, or upon such disadvantageous terms as to make it highly inexpedient: Add to this, that having in a great measure recovered from the Calamities of the late war, being in possession of a free and extensive commerce, at peace with all Nations, and the economy of our own government, thus circumstanced, only to attend to, it would add but little to its credit to admit that it could not discharge those engagements without the aid of other nations.

In objection to the 3d. plan, or emission of paper bills of credit, it may only be observed, that such bills would not even serve to pay off the domestic debt, since hearing no interest, they would in effect put the Creditors in a worse condition than they are now in; much less would they avail to support the current expences of the government of the United States, or discharge the interest due on the foreign debt. The United States, are, however, in possession of another fund, arising from the cession of vacant and unappropriated lands by individual


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States; but this, it is apprehended, as public securities are received in payment, will bring but little specie into the treasury. Being depreciated considerably below, and received at par with specie, it is to be presumed, the purchasers, whether Citizens or foreigners, not possessed of, will procure these securities for the purpose. These lands, therefore, may be calculated on, and in the degree, as a fund only for the discharge of the domestic debt; and as they are not to be disposed of, until surveyed, and some time must elapse before this can be effected, it is obvious that no immediate aid, even for this purpose, can be derived from that source.

[From a full view therefore of the purposes for which Money is necessary, or of the publick engagements of the United States, and the means in their hands for complying with the same, it appears that the said means are altogether inadequate; it follows of course that unless some other more efficient and productive fund can be found we must experience the highest national difficulties].

Since, therefore, experience hath evinced, that requisitions have failed to obtain from the States, money sufficient for the support of their own government only, that it would be impolitic, if not impossible, to borrow more; that the emission of paper bills of credit would be altogether ineffectual, and of course inadmissible; and that the vacant and unappropriated lands, ceded by individual States, can be calculated on only as a fund for the discharge, and in the degree, of the interest and principal of the domestic debt, it necessarily follows, that, unless some other more efficient and productive fund can be found out, we shall suffer the highest National difficulties. Although we have already experienced, and may calculate much, on the generosity of our ally; although our domestic creditors, and especially those of the Army, have evinced a patience and magnanimity under their sufferings, which does them the highest credit; yet it is neither consistent with the honour nor the interest of the United States, that justice should be longer delayed, especially while a single effort in their power remains unattempted. After the matures; deliberation, the Committee have been able to devise no other than that recommended on the 18th of April, 1783; To this, therefore, they are of opinion, the United States should turn their attention, as the means of relieving them from their present embarrassments. The system, as therein recommended, consists of two parts; the First, an investment of the United States in Congress, with power to levy for the use of the United States, certain duties upon goods imported into the said states


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from any foreign port, island or plantation: The SECOND, such other substantial and effectual revenues as they may judge most convenient for supplying their respective proportions of one million five hundred thousand dollars Annually, exclusive of the aforementioned duties, as therein more fully delineated.

In examining the conduct of the several States under this recommendation, they find that, except New York and Georgia, they have all complied, in some degree, with the first part, and that onlyhave with the latter. That the relief, therefore, may be as expeditious as possible, and particularly that the United States may be enabled to comply with their foreign engagements, while the aforesaid recommendations shall remain in full force as to the whole, in confidence they will ultimately be complied with, the Committee beg leave to report the following resolution:

Resolved, That it be earnestly recommended to the states of New York and Georgia, to take into their immediate consideration, the said recommendation of the 18th of April, 1783, more especially that part which proposes an investment of the United States, with power to levy, for the use of the said States, certain duties upon goods imported into the said States from any foreign port, island or plantation, and to comply with the same.1

[Note 1: 1 This report, in the writing of a clerk, with corrections and changes by Monroe, is in the Papers of the Continental Congress, No. 24, folio 115. It varies in sundry unimportant verbal details from the copy in the Journal. The amounts needed for the yearly expense have been filled in by a different clerk; the amounts paid by the various States are blank in the report and the portion in brackets above was entirely omitted, though partially incorporated, as may be noted, in the report spread on the Journal. A broadside issue of the report, following the ms. changes but omitting the payments by States, is on folio 111. On it Thomson has noted these State payments, crossed over the amounts of the requisitions for 1781, 1782, 1784, and 1785, and written instead: "For the services of the Union during the war and discharging the interest on the foreign and domestic debt from the 31 Deer. 1781 to 31 Deer. 1785 Congress have called upon the States for 7 mill. dollars." He has also indorsed the broadside: "Feb. 9 Referred to Mr. King, Mr. Pinckney, Mr. Keen, Mr. Monroe, Mr. Pettit." See ante, January 27. The ms. report appears to have been rendered to Congress February 2, ordered printed and this printed copy considered, as above, on February 3.]

A motion was made by Mr. [William] Houstoun, seconded by Mr. [Melancton] Smith, to postpone the consideration of


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the above report until the first day of March next; and on the question for postponing, the yeas and nays being required by Mr. [William] Houstoun,

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So it passed in the negative.

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