University of Virginia Library

SATURDAY, DECR. 7.
No Congress.

The Grand Committee met again on the business of the old
paper emissions, and agreed to the plan reported by the sub-committee
in pursuance of Mr. Fitzsimmons' motion, vz: that the
outstanding bills should be taken up & certificates issued in place
thereof at the rate of 1 real Dollar for—nominal ds., and
that the surpluses redeemed by particular States shod. be credited
to them at the same rate. Mr. Carrol alone dissented to the
plan, alledging that a law of Maryland was adverse to it which he
considered as equipollent to an instruction. For filling up the
blank, several rates were proposed. 1st., 1 for 40 on which the
votes were no except Mr. Howell. 2d., 1 for 75 no Mr. White &
Mr. Howell, ay. 3d., 1 for 100 no Mr. Hamilton & Mr. Fitzsimmons
ay. 4th., 1 for 150 no Mr. Fitzsimmons ay. The reasons
urged in favor of 1 for 40 were—first an adherence to public
faith, secondly that the depreciation of the certificates would reduce
the rate sufficiently low, they being now negotiated at the
rate of three or four for one. The reason for 1 for 75, that the
bills passed at that rate when they were called in, in the Eastern
States; for 1 for 100—that as popular ideas were opposed to the
stipulated rate, and as adopting the current rate might hurt the
credit of other securities which derived their value from an opinion
that they would be strictly redeemed, it was best to take an
arbitrary rate, leaning to the side of liberality,—for 1 for 150
that this was the medium depreciation when the circulation
ceased. The opposition to these several rates came from the
Southern Delegates, in some of whose States none, in others but
little had been redeemed, & in all of which the depreciation had
been much greater. On this side it was observed by Mr. Madison,
that the States which had redeemed a surplus, or even their
quotas, had not done it within the period fixed by Congress but in
the last stages of depreciation, & in a great degree, even after the
money had ceased to circulate; that since the supposed Cessation
the money had generally changed hands at a value far below
any rate that had been named; that the principle established by

the plan of the 18th. of March 1780, with respect to the money in
question was, that the Holder of it sd. receive the value at which
it was current, & at which it was presumed he had received it;
that a different rule adopted with regard to the same money in
different stages of its downfall wd. give general dissatisfaction.
The Committee adjourned without coming to any decision.