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by the treaty of the thirtieth of April, one thousand eight hundred and three, between the United States and the French Republic, and for other purposes." with several amendments; to which they desire the concurrence of this House.

The House proceeded to consider the amendments proposed by the Senate to the said bill: Whereupon, the said amendments, together with the bill, were referred to the Committee of Ways and Means.

An engrossed bill to enable the President of the United States to make restitution to the owners of the Danish brigantine called the Henrick, was read the third time, and passed.

The House, in pursuance of a resolution agreed to on the eleventh instant, proceeded to the hearing of Alexander Moultrie, agent of the South Carolina Yazoo Company, at the bar of the House; and thereupon, the said agent being fully heard, withdrew from the bar.

On a motion made and seconded, "That the order of the day for the House to hear William Cowan, agent of the Virginia Yazoo Company, in person, or by counsel, at the bar of the House, on this day, be postponed until Thursday next:"

The question was taken thereupon, and resolved in the affirmative.

On motion, it was

Resolved, That the SPEAKER of this House be requested to transmit to the Secretary for the Department of State of the United States, the letter from Edward Tiffin, Governor of the State of Ohio, enclosing a certified copy of an act of the Legislature thereof, declaring the assent of the said Legislature to an amendment proposed by Congress, in lieu of the third paragraph of the first section of the second article of the Constitution of the United States, which were received, read, and ordered to lie on the table, on the thir

teenth instant.

DIRECT TAX.

An engrossed bill further to amend the act, entitled "An act to lay and collect a direct tax within the United States," was read the third time; and, on a motion made and seconded, amended by unanimous consent, at the Clerk's table. And on the question that the said bill, as amended, do pass, it was resolved in the affirmative-yeas 100, nays 18, as follows:

JANUARY, 1804.

ther, Nahum Mitchell, Samuel L. Mitchill, Nicholas R. Moore, Thomas Moore, Anthony New, Thomas Newton, jun., Joseph H. Nicholson, Beriah Palmer. Oliver Phelps, Thomas Plater, John Randolph, Thomas M. Randolph, John Rea of Pennsylvania, John Rhea of Tennessee, Cæsar A. Rodney, Thomas Sammons Thomas Sandford, Joshua Sands, Ebenezer Seaver, Tompson J. Skinner, James Sloan, John Smilie, John Cotton Smith, John Smith of New York, John Smith of Virginia, Richard Stanford, Joseph Stanton, William Stedman, James Stephenson, John Stewart, Samuel Tenney, David Thomas, Philip R. Thompson, George Tibbits, Abram Trigg, John Trigg, Philip Van Cortlandt, Isaac Van Horne, Killian K. Van Rensselaer, Joseph B. Varnum, Daniel C. Verplanck, John Whitehill, Lemuel Williams, Marmaduke Williams, Richard Winn, Joseph Winston, and Thomas Wynns.

NAYS-Nathaniel Alexander, Silas Betton, William Blackledge, William Chamberlin, Martin Chittenden, Clifton Claggett, Manasseh Cutler, William Dickson. James Elliot, Edwin Gray, James Holland, David Hough, John B. C. Lucas, James Mott, Gideon Olin, Henry Southard, Peleg Wadsworth, and Matthew

Walton.

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The House resolved itself into a Committee of

the Whole, on the motion of Mr. RODNEY, to extinguish the State balances.

Mr. RODNEY.-I hope the Committee will agree to the resolution as modified, and to the extinguishment of the balances reported against the several States. It is true, as has been remarked, when the subject was before the House sometime since, that it has been repeatedly under discussion, and that by this time it is probably perfectly understood and familiar to every member. It is true that it has heretofore undergone an investigation, more able, perhaps, than I am able to give cussed, its friends have increased in number. I it; I believe, however, every time it has been disflatter myself, therefore, there can be no objection to inquiry into its merits at this period, because I YEAS-Willis Alston, junior, Isaac Anderson, Sime- believe that those who have heretofore voted one on Baldwin, David Bard, George Michael Bedinger, way, have sufficient magnanimity, if it shall be Adam Boyd, Robert Brown, Joseph Brown, Joseph made clearly to appear that these balances ought Bryan, William Butler, John Campbell, Levi Casey, to be extinguished, to think for themselves, withJoseph Clay, Matthew Clay, John Clopton, Frederick Conrad, Jacob Crowninshield, Richard Cutts, Samuel imbibed. It is honorable to any person to alter his out regard to any previous opinions they may have W. Dana, John Davenport, John Dawson, John Dennis, Thomas Dwight, John B. Earle, Peter Early, Eb- opinion whenever he is convinced of his error. enezer Elmer, John W. Eppes, William Eustis, Wm. Besides, there are a great number of new memFindley, John Fowler, James Gillespie, Peterson Good-bers in this House who will not be disposed to pin wyn, Andrew Gregg, Thomas Griffin, G. Griswold, R. Griswold, Samuel Hammond, John A. Hanna, Josiah Hasbrouck, Seth Hastings, J. Heister, Wm. Helms, William Hoge, David Holmes, Benjamin Huger, Walter Jones, William Kennedy, Nehemiah Knight, Michael Leib, Joseph Lewis, jun., Henry W. Livingston, Andrew McCord, William McCreery, David Meriwe

their faith on the sleeves of their predecessors. It is well known the State I have the honor to represent is more affected by the heavy balance against her hanging over her head, than any State in the Union. It will be recollected, agreeably to the report of the Commissioners who settled the accounts between the United States and the re

889

JANUARY, 1804.

HISTORY OF CONGRESS.

State Balances.

H. OF H.

ery case substantial justice. It will be recollected what was the nature and extent of the accounts which they had to adjust. Rudis indigesta que moles. They were not accounts kept with the regularity of those of a merchant's countinghouse, they were not confined to the transactions of a single voyage, nor to the business of one company, but comprehended the complicated transactions of independent States, the multiplied and intricate accounts of entire sovereignties, and those too, not in time of peace, but during the stormy period of a Revolution, in which we were contending against one of the most powerful nations in Europe for our liberties and independence. I believe them to have done the best they could, and to have attempted faithfully to bring about a settlement so important to be effected, and which Congress, as early as 1787, attempted to make. Congress in that year passed a resolution by which the States were districted, and Commissioners appointed to go through the several States to receive accounts; but all those accounts were war

spective States, that $612,000 were reported to be due by her; this with interest from the year 1793, amounts to about $1,000,000. This is a very serious subject to the State of Delaware; one which she severely feels; which depreciates the price of her land and paralyzes the industry of her citizens. I beg leave to say it is not my object to touch the settlement of the Commissioners, so far as it regards the creditor States; like the ark of the covenant, I deem it too sacred to be touched by impure hands. I am likewise far from imputing to them any improper or unjust motives whatever. Whilst I subscribe to this doctrine, and that the creditor States receive the balances reported in their favor, permit me to take a retrospective view of the business, to show, so far as can be proved from the nature of the case, that there may have been, nay, must have been, some important mistake in the settlement, the Commissioners having no standard to resort to, by which to determine with mathematical or arithmetical certainty what was due by the States. If the Committee shall be of opinion that some mis-ranted by acts of Congress themselves; at the same take may have occurred, when they consider that so far as relates to the claims of the creditor States, they have been provided for, I trust they will view with indulgence the claims now made by the debtor States.

When in consequence of the acts of a flagitious Ministry, who attempted to forge chains for our free country, America rose as one man to assert her rights and destroy the tyranny of that Government which wished to enslave her, she was understood as one nation engaged in a common cause; certain articles of Union were proposed, one of which stipulated that the proportion in which each State should contribute to the gen. eral defence, should be according to the value of lands in the respective States. It will be recollected that the Articles of Confederation were not agreed to until the war had nearly terminated, and that this ratio was not uniformly acted upon by Congress as the basis on which requisitions were made. It was not relied on in all cases and on all occasions; if it had been agreed upon, Congress would have still been at a loss how to proceed. Every apportionment must therefore have necessarily been arbitrary. In this embarrassing situation, with a view to relieve themselves from the difficulties which surrounded them, Congress, in the month of April, in the year 1783, recommended to the several States the adoption of that rule of apportionment which is to be found in the Federal Constitution. This rule. however, was not adopted by the States, until it was incorporated in that instrument. I mention these facts to show that there was no permanent, universal, and unerring foundation on which the ratio of taxation rested. If each member of the Board of Commissioners, had possessed the fiscal talents and financial knowledge of the present Secretary of the Treasury, and instead of the comparatively short time they were occupied in the settlement, had consumed a series of years, it is scarcely within the confines of possibility, and much less of probability, that they should have attained in ev

time they constituted a Board to audit accounts for particular defence, and such as were not authorized by the resolutions of Congress, considering what a State did for herself she did for the Union.

Thus the business rested when the Federal Constitution was brought about; that Constitution the State of Delaware had the honor first to adopt, and was, I believe, the only State whose Legislature adopted it unanimously. When Congress met under the Constitution, the general principle on which the settlement of the accounts of the several States should take place was not much disputed. No man pretended to say, when South Carolina was overrun with internal foes and subject to civil war, the United States were not benefitted in proportion to the efforts she made to crush those enemies; everything she did was for the general good, and every man acquiesced in the justness of the principle, that she should bring forward her accounts for particular as well as general deState fence, and it was seen that the United States would fall in debt from this circumstance to every in the Union: every State had to contend with the external enemy, or with the internal foe in the shape of insurrections.

It may be proper at this place, to advert to the report of the Secretary of the Treasury, which laid the foundation for the assumption of the State debts. I am not about to inquire into the policy of the measure, or whether it was best to be effected in this way, in that, or the other; I take it as I find it; when examined, it will be found that the then Secretary thought the ratio or rule of apportionment adopted by the Commissioners under the act of Congress, passed in the year 1790, would not be the correct one, as will appear from the report and supposititious statement made by him of the relative situation of the different States, as debtor, and creditor. Delaware, so far from being considered at that time as a debtor State, was contemplated in the light of a creditor State, and in proportion to her ability

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more so than any in the Union. I will read a passage or two from the report, and advert to the statement. The Secretary, after concluding that a discrimination ought not to be made between original holders and subsequent purchasers, proceeds to examine "whether a difference ought to be permitted, to remain between them and another description of public creditors-those of the States individually.

"The Secretary, after mature reflection on this point, entertains a full conviction that an assumption of the debts of the particular States by the Union, and a like provision for them as for those of the Union, will be a measure of sound policy and substantial justice.

"It would, in the opinion of the Secretary, contribute in an eminent degree to an orderly, stable, and satisfactory arrangement of the national finances.

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Admitting, as ought to be the case, that a provision must be made in some way or other, for the entire debt, it will follow that no greater revenues will be required, whether that provision be made wholly by the United States, or partly by them, and partly by the States separately.

"There is an objection, however, to an assumption of the State debts, which deserves particular notice. It may be supposed that it would increase the difficulty of an equitable settlement between them and the Uni

ted States.

"The principles of that settlement, whenever they shall be discussed, will require all the moderation and wisdom of the Government. In the opinion of the Secretary, that discussion, till further lights are obtained, would be premature.

"All, therefore, which he would now think advisable on the point in question, would be, that the amount of the debts assumed and provided for, should be charged to the respective States, to abide an eventual arrangement. This the United States, as assignees to the creditors, should have an indisputable right to do. "But as it might be a satisfaction to the House to have before them some plan for the liquidation of accounts between the Union and its members, which, including the assumption of the State debts, would consist with equity, the Secretary will submit in this place such thoughts on the subject as have occurred to his own mind, or been suggested to him, most compatible, in his judgment, with the end proposed.

JANUARY, 1804.

appear in favor of all the States, against the United States.

"To equalise the contributions of the States, let each be then charged with its proportion of the aggregate of those balances, according to some equitable ratio, to be devised for that purpose.

"If the contributions should be found disproportionate, the result of this adjustment would be, that some

States would be creditors, some debtors to the Union.

"This plan seems to be susceptible of no objection, which does not belong to every other, that proceeds on the idea of a final adjustment of accounts. The difficulty of settling a ratio is common to all. This must, probably, either be sought for in the proportions of the requisitions, during the war, or in the decision of the Commisssioners, appointed with plenary power. The rule prescribed in the Constitution, with regard to representation and direct taxes, would evidently not be applicable to the situation of parties, during the period in question."

He then makes a supposititious statement, by which it appears that Delaware was considered as having a demand against the United States of about $10,000. [Here Mr. RODNEY particularly adverted to the statement below.]

It may abundantly appear to the minds of gentlemen that in this business it was impossible, from the nature of the case, for the Commissioners to ascertain with mathematical certainty the balances due to or from any one State to the United States. If considered in this point of view, I hope gentlemen will be not over anxious in pressing the debtor States for every shilling alleged to be due by them, when the creditor States have had their demands fully satisfied.

When we advert to the particular case of the State I have the honor of representing, we shall find abundant reason why her balance should be extinguished. The State of Delaware does not stand in need of any eulogium from me, and, if she did, I am not accustomed to the language of panegyric; but I may say, that in proportion to her resources, her efforts in the Revolutionary cause were second to no State in the Union. When we find in the report that the State of Delaware was not heard before the Commissioners, though she re

"Let each State be charged with all the money ad-quested a hearing, gentlemen may account for the vanced to it out of the Treasury of the United States, liquidated according to the specie value at the time of such advance, with interest at six per cent.

"Let it also be charged with the amount, in specie value, of all its securities which shall be assumed, with the interest upon them, to the time when interest shall become payable by the United States.

"Let it be credited for all moneys paid and articles furnished to the United States, and for all other expenditures during the war, either towards general or particular defence, whether authorized or unauthorized by the United States; the whole liquidated to specie value, and bearing an interest of six per cent. from the several times at which the several payments, advances, and expenditures accrued.

"And let all sums of Continental money now in the treasuries of the respective States, which shall be paid into the Treasury of the United States, be credited at specie value.

"Upon a statement of the accounts according to these principles, there can be little doubt that balances would

extraordinary result of a settlement so far as related to her. She was told, it was true, she might have a hearing, but she was informed at the same time that the case on which she desired to be heard was already decided; this will appear from an official document laid before the Senate of that State.

"The late Commissioner for stating and supporting the claims of this State against the United States, in obedience to the order of the honorable the General Assembly of the 17th instant, makes the following report:

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Having in his report to the General Assembly at October sessions, 1791, exhibited a general statement, he now transmits the particular accounts, as far as they are in his possession, from whence the said statement was drawn.

"The accounts exhibited to the district Commissioners, marked No. 1, in general statement, are contained in a book lodged in the office of the Board of Commis

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Union by the State of Delaware.

H. or R.

sioners, which book ought now to be returned to this A General Statement of Charges exhibited against the State. These included all charges for general defence, depreciating certificates, recruiting accounts, supplies to the army, and every other expense which could be supported against the Union under the ordinance of May 7, 1787.

"The accounts in the second line, marked No. 2., are for general and particular defence; containing expenditures by the State, not warranted by resolutions of Congress, and therefore inadmissible under the ordinance of May 7, 1787. This is accompanied by a sheet marked No. 2, and an account of particulars answering to No. 19, in the said sheet.

"The accounts in the third line, marked No. 3, being for payments on warrants and requisitions of Congress, was drawn from the books of the State, in the Auditor's office, and needs no explanation.

"The late Commissioner reports what he mentioned in his former report, that he never had an opportunity given him to advocate the claims of Delaware, after their first delivery. He applied to the Commissioners several times, both personally and by letter, to know when he should attend for that purpose. The answer was, that notice should be given him; and the notice was, that his further attendance was unnecessary, as the Commissioners had already determined on the accounts of Delaware.

"All which is respectfully submitted.

"ELEAZER M'COMB.

"Wilmington, January 25, 1794. "Also were delivered the general account, with the other papers and documents referred to in the aforesaid report, which said general account stood as follows:

Description of accounts. Old emissions.

1. Amount of accounts to the District Commissioners

2. Amount of acc'nts exhibited for general and particular defence 3. Amount of payments on warrants and requisitions of Congress

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Specie.

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Note.-Fractions of cents omitted.

I do not mean to impute improper motives to the Commissioners, but merely to state a fact proved by the highest authority. The simple, plain, and stubborn fact is, that in this settlement Delaware was not heard; and I call on gentlemen to bring the case home to their own business and bosoms.

Suppose they were individually condemned to pay sums to an enormous extent without being heard, would they consider it fair or just? It is a maxim of eternal and immutable justice to hear both sides before a decision is made, and I have heard it observed by a celebrated character, that he was an unrighteous judge who decided without hearing both parties, even where

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H. OF R.

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In some laws found in our volume, particularly he decided correctly; because he acted against the first maxim of justice, and because his decision, in a law of 1787, it will be found that the State though right, was the effect of accident. If this of Delaware was compelled to pay requisitions statement be correct, will not gentlemen advert to whose proportion was greater than they ought to the fact and suffer it to make a proper impression have been according to any known federal rule. on their minds? It appears, from the account of Still, even when she considered the imposition Mr. McComb, that $3,261,044 was furnished by made upon her more than it ought to be, when Delaware in paper money, and $380,228 in specie. her representatives in the Legislature in the act Much of the first description of money was paid of 1787 declared, "that her proportion was greater before it had undergone any considerable depre- than it ought to be on any known or acknowledged ciation by the scale established in that State. principle of federal taxation," she cheerfully acOwing to fortuitous circumstances the paper me- quiesced and paid the money required from her. dium was better, and the State had to pay more, It has been, I believe, on a former occasion when consequence, than any other State in the Union. this subject was before the House, ably and eloBy the laws of Delaware it will also appear that quently observed by my friend from Virginia (Mr. Congress no sooner made a requisition than the J. RANDOLPH) that if the State of Delaware had Legislature of that State passed an act to comply been asleep during the whole Revolutionary conwith it-no sooner was the call made than the flict, and had not contributed a cent or soldier to people were compelled to pay their taxes to meet the common cause, the balance charged against it. Every requisition Congress made till the year her could not amount to the enormous sum of one million of dollars. When, on the contrary, 1787, was promptly complied with, and on some occasions we raised more than sixty thousand we take into consideration the great sums which dollars a year to enable us to comply with the she actually paid, and the gallant soldiers furnishrequisitions of the United States; and it will be ed in her regiment and from her militia, ought found from the report of the Auditor of the State, not gentlemen to listen to the reasons now urged, (Thomas Montgomery,) a man every way quali- and ought they not to have great weight on the fied for that situation, for the year 1794, that, minds of liberal and candid men? As I said prior to the year 1784, there was not a single tax before, I do not mean to impeach the original setlevied that was not paid, nor a single county be- tlement; but if such an inexplicable result has hindhand a single dollar. Afterwards there was occurred in the case of Delaware, what may not a small balance remaining unpaid by the county have occurred in the settlement of the accounts of of Sussex, a smaller from the county of Kent, and the other States? With their cases I am unaca still smaller perhaps from the county of New-quainted. I will not, therefore, trespass on the castle. I mention these circumstances to show that more must have been paid by that State than is allowed in the settlement, for all this money was certainly levied and collected from the pockHow are the United States by any competent ets of the people of that State; and to prove that the account rendered by our Commissioner (Mr. authority to obtain payment of these balances? McComb) against the United States, was accu- Are they to put any State to the ban of the emAre they to make war upon any State by rate and just. An account supported by such pire? plain, unequivocal testimony as the solemn acts means of an army on land or a navy at sea? This of our Legislature, and the report of that officer is a position for which, I presume, no gentleman to whom the State confided the superintendence of will contend. Are they to fund the balances due her finances, for sums of such magnitude, in specie in the proportion of the creditor States? If it is as well as in paper currency, ought to make a the wish of gentlemen to add to our debt millions, favorable impression on the members of this Com-I know not how many, the object may, perhaps, mittee. It proves most manifestly that our State contributed the sum of in Continental money and — in gold or silver coin towards the exigencies of the war, besides the services of her soldiers, than whom none were braver, especially those who composed her intrepid regiment. One charge of the United States against the several States referred to a certain species of certificates, known by the name of depreciation certificates, given to the officers and soldiers in consequence of the depreciation of their pay. At this moment there lie in her chest sixty or eighty thousand dollars of these certificates, and, if she had been disposed to act unfairly, she might at the proper time have loaned them, and that amount might have gone into the coffers of the State, but she would not descend to this act, she was disposed to do as she would be done by, and I trust this will be considered as a meritorious act on her part.

patience of the Committee further on this score, but considering the subject in this favorable point of right as to Delaware, I will advance to the strongest ground which presents itself.

be accomplished in this way; but such a measure, I presume will not be adopted. Will gentlemen then preserve this bone of contention with the States? For a bone it literally is; it contains not an atom of nutrition to the United States. Will they preserve it when it will not bring one shilling into their pockets? will they keep alive this coal which may hereafter be fanned into a flame, and which may, at some future day, become a subject of compromise, not to say bargain, and may be made an instrument of much greater injury even to the creditor States than the nominal balances can possibly be of benefit to them? Remember that two of the principal debtor States are, from their wealth and numbers, among the most respectable in the Union. If you will keep these balances suspended over them, what may not be apprehended? If the subject be considered in this point of view, it will appear that it is for

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