The writings of James Madison, comprising his public papers and his private correspondence, including numerous letters and documents now for the first time printed. |
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TUESDAY, FEBY. 18. |
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 | The writings of James Madison, |  |
TUESDAY, FEBY. 18.
Come. of the whole on the subject of genl. funds.
Mr. Rutledge & Mr. Mercer proposed that the Impost of 5 Per
Ct. as altered & to be recommended to the States, should be appropriated
exclusively, first to the interest of ye. debt to the army &
then in case of surplus to the principal. Mr. Rutledge urged in
support of this motion that it would be best to appropriate this
fund to the army as the most likely to be obtained as their merits
were superior to those of all other Creditors, and as it was the
only thing that promised, what policy absolutely required, some
satisfaction to them.
Mr. Wilson replied that he was so sensible of the merits of the
army that if any discrimination were to be made among the public
creditors, he should not deny them perhaps a preference, but
that no such discrimination was necessary; that the ability of the
public was equal to the whole debt, and that before it be split into
different descriptions the most vigorous efforts ought to be made
to provide for it entire. That we ought first at least to see what
funds could be provided, to see how far they would be deficient,
and then, in the last necessity only to admit discriminations.
Mr. Ghoram agreed with Mr. Wilson. He said an exclusive
appropriation to the army would in some places be unpopular and
would prevent a compliance of those States whose Citizens were
influence of the public creditors, the measure could never be carried
through the States, and these if excluded from the appropriation
would be even interested in frustrating the measure &
keeping by that means their cause a common one with the army.
Mr. Mercer applauded the wisdom of the Confederation in
leaving the provision of money to the States, said that when this
plan was deviated from by Congress, their objects should be such
as were best known & most approved; that the States were jealous
of one another, & wd. not comply unless they were fully acquainted
with & approved the purpose to which their money was to be applied,
that nothing less than such a preference of the army would
conciliate them, that no Civil Creditor would dare to put his
claims on a level with those of the army, and insinuated that the
speculations which had taken place in loan office certificates might
lead to a revision of that subject on principles of equity, that if
too much were asked from the States they would grant nothing.
He said that it had been alledged, that the large public debt if
funded under Congress would be a cement of the Confederacy.
He thought on the contrary it would hasten its dissolution; as
the people would feel its weight in the most obnoxious of all forms
that of taxation.[52]
On the question the States were all no except S. Carolina,
which was ay.[53]
A motion was made by Mr. Rutledge, 2ded. by Mr. Bland to
change the plan of the impost in such a manner as that a tariff
might be formed for all articles that would admit of it, and that a
duty ad valorem sd. be collected only on such articles as would
not admit of it.
In support of such an alteration it was urged that it would
lessen the opportunity of collusion between Collector & importer
& would be more equal among the States. On the other side it
was alledged that the States had not objected to that part of the
plan, and a change might produce objections—that the nature
& variety of imports would require necessarily the collection to
be ad-valorem on the greater part of them, that the forming of a
book of rates wd. be attended with great difficulties & delays, and
that it would be in the power of Congress by raising the rate
of the article to augment the duty beyond the limitation of 5 per
ct. and that this consideration would excite objections on the part
of the States—The motion was negatived—
A motion was made by Mr. Hamilton 2ded. by Mr. Wilson; that
whereas Congres was desirous that the motives & views of their
public safety wd. admit, that when the subject of finances was
under debate the doors of Congs. sd. be open. Congs. adjourned it
being the usual hour & the motion being generally disrelished
—The Pa. delegates said privately that they had brought themselves
into a critical situation by dissuading their Constituents from
separate provision for creditors of U. S. within Pena. hoping that
Congs. wd. adopt a general provision, & they wished their constituents
to see the prospect themselves & to witness the conduct of
their Delegates. Perhaps the true reason was that, it was expected
the presence of public creditors numerous & weighty in Philada. wd.
have no influence & that it wd. be well for the public to come more
fully to the knowledge of the public finances.
Letter recd. from Wm. Lee at Ghent notifying the desire of the
Emperor [of Austria] to form a commercial treaty with the U. S.,
and to have a residt. from them. Comd. to Mr. Izard, Ghoram &
Wilson.
"I am glad to find by your favor of the 7th. [ins] tant that the necessity of a readoption
of the impost presses so strongly on your mind. To give it a fair experiment
with the ensuing Assembly it will be indispensable that you should be
its advocate on the floor. Those who effected its repeal will never inactively
suffer it to be reinstated in our code. Mercer from what motive God knows says
that he will crawl to Richmond on his bare knees to prevent it. Having already
changed his opinion on the subject he fears perhaps the charge of unsteadiness.
Perhaps too his zeal against a general revenue may be cooled by the accomplishment
in Congress of a plan for a valuation of land on the ruins of which
he among others suspected the former was to be established. This plan passed
Congress yesterday. It proposes that the States shall return to Congs. before
Jany. next their respective quantities of land the number of houses thereon distinguishing
dwelling houses from others, and the no of Inhabitants distinguishing
Whites from blacks. These data are to be referred to a Grand Come, by
whom a report in which nine voices must unite, is to be made to Congress
which report is to settle the proportions of each State, & to be ratified or rejected
by Congs. without alteration. Who could have supposed that such a
measure could ever have been the offspring of a zealous and scrupulous respect
for the Confederation? . . ."—Madison to Edmund Randolph, February
18, 1783. (Italics for cypher.)
On the same day he wrote to Jefferson:
"The last paper from N. Y., as the inclosed will show you has brought us
another token of the approach of peace. It is somewhat mysterious nevertheless
that the preliminaries with America should be represented by Sect. Townsend
as actually signed and those with France as to be signed, as also that the
signing of the latter would constitute a general peace. I have never been without
my apprehensions that some tricks would be tried by the British Court notwithstanding
their exterior fairness of late, and these apprehensions have been
rendered much more serious by the tenor of some letters which you have seen and
particularly by the intimation of Minister of France to Mr. Livingston. These
considerations have made me peculiarly solicitous that your mission should be
pursued as long as a possibility remained of your sharing in the object of it."
(Italics for cypher).—Mad. MSS.
| The writings of James Madison, | |