The Debates and Proceedings in the Congress of the United States, First Congress, First Session, Volume 2 Page: 1,355
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1355 OF DEBATES IN CONGRESS. 1356
February 23, 1790. ] Public
ted States certain Western lands therein de-
scribed, on the conditions therein contained,
■and that whea a deed shall be executed for the
same, Congress express their acceptance there-
of by a legislative act: to which resolution they
tlesire the concurrence of this House.
Mr. Fitzsimons, from the committee appoint-
ed For the purpose, presented a bill For regulat-
ing the Post Office of the United States, which
was read the first time.
PUBLIC CREDIT.
The House then again went into Committee
fif the whole on the Report of the Secretary of
She Treasury, Mr. Benson in the Chair.
The assumption of the State debts under con-
sideration.
Mr. LsvBftMOBB thought this proposition one
of a very extensive nature, and of which the
committee, at the present, had no complete
idea. But why are we to use such expedition
in determining upon it? The Secretary does
not consider it of importance to provide for it
for a long time to come. Are the creditors of
the respective States, or the States themselves,
clamorous for the measure? They have not, as
yet, applied to Congress on this head; perhaps
the creditors are satisfied with what the States
have done for them; why then are we to under-
take a work of this extent, when nothing ap-
?ears to show its necessity, or even propriety?
s not the task of providing for the real debts
of the Unian sufficiently arduous, without un-
dertaking more, when more is unnecessary?
Heside, will not the assumption of more debts
than we owe disable us from doing our real cre-
ditors justice? And will they not have a right
to complain of our conduct? But the merits
and amount of these debts are both unascer-
tained. It would argue a want of foresight to
adopt a measure wrapped up in uncertainly.
We know there are Commissioners appointed
and employed in the settlement of the accounts
between the individual States and the United
States; let us know first from them what balan-
ces are due to the respective States, before we
undertake to assume them. I think these con-
siderations alone sufficient to induce us to sus-
pend our determination for the present; but if
we cannot pass it over regularly, and consis-
tently with the rules of order, of which, by the
by, I profess myself no judge, I hope it may be
negatived.
Mr. Lawrence,—I view this, sir, as one of
the most important subjects which can come
before Congress. I conceive that it requires all
the investigation and consideration which rea-
son and the most experienced judgment can be-
stow. I hope, therefore, that gentlemen are
prepared to enter on the discussion with candor
anil moderation; and furnish their associates
with all the light they can reflect upon the sub-
ject
For my own part, after paying some attention
to (he measure, I must own that I am at pre-
sent in favor of assuming the State debts; 1
87
[H. ofR
think I discover great advantages resulting
therefrom. I believe it will be much easier,
and more productive, for one body to draw forth
the resources of the Union, than it will be for
many. Those resources must be drawn out for
the particular purposes Tor which they are want-
ing; the debt of the General and particular
Governments must be provided for, either
by the General Government, or part by the
General Government, and part by the particu-
lar State Governments; for I apprehend the cre-
ditors of the respective States will think their
State Governments as much bound, in justice,
to satisfy their claims, as the creditors of the
General Government think the United States
bound to satisfy theirs. Therefore it seems to
follow, if the General Government does not
make provision for both, that they must leave
some of the resources for the satisfaction of that
part for which they themselves decline to make
provision. Supposing the whole must be satis-
fied, I am led to conclude it might be done with
greater ease, less expense, and more facility, if
it was all provided for under one general sys-
tem. This is my general idea; and I am con-
vinced, the more it is examined, the more it
will be found beneficial to the Union.
It is well known, that particular States are
in the exercise of deriving revenue from excise,
for the satisfaction oF particular creditors; and
that part of the Secretary's plan contemplates
the excise as a branch of revenue whereby to
provide For the domestic debt of the United
States. Perhaps, and it is highly probable, that
the excise may be laid by both on the same ar-
ticles; if they both go on, there will be such
clashing and confusion, such prejudice and loss
of revenue, that the product cannot be relied
on by either: but if the debts are assumed, we
can have the whole of these funds, and there
is no doubt but they will be fully adequate, in
this way, to the purpose for which they are
wanted.
The objections made by the gentleman from
New Hampshire may be easily obviated. He
has mentioned that we know nothing of the
state or amount of this debt. The Secretary
of the Treasury, from authentic accounts in
many instances, and from well grounded con-
jectures in others, has ascertained that all the
claims of individuals upon the several States
does not exceed twenty-five millions of dol-
lars; hence, here is some certainty as to the ex-
tent of the debt; but if there is any objection
on this ground, Congress may bind them to that
amount, that they shall not go further.
He further objected, that it was improper to
assume these debts, because we do not know
the merits of the particular claimants. We
must have some confidence on this subject, and
suppose that when the particular States settled,
liquidated, and admitted a debt, that they did
not admit improper ones; the States having ad-
mitted them is our security; the merit was prov-
ed to their satisfaction, and no doubt will be to
ours, provided we think proper to assume them.
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Gales, Joseph, 1761-1841. The Debates and Proceedings in the Congress of the United States, First Congress, First Session, Volume 2, book, 1834; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc29466/m1/42/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.