University of Virginia Library

THURSDAY, FEBY. 20, 1783

The motion for limiting the impost to 25 years having been
yesterday lost, and some of the gentlemen who were in the

negative desponding of an indefinite grant of it from the States,
the motion was reconsidered.

Mr. Wolcot & Mr. Hamilton repeat the inadequacy of a definite
term. Mr. Ramsay & Mr. Williamson repeat the improbability
of an indefinite term being acceded to by the States, & the
expediency of preferring a limited impost to a failure of it altogether.

Mr. Mercer was against the impost altogether but would confine
his opposition within Congress: He was in favor of the
limitation as an alleviation of the evil.

Mr. Fitzsimmons animadverted on Mr. Mercer's insinuation
yesterday touching the loan-office Creditors; & the policy of
dividing them from the military Creditors, reprobated every
measure which contravened the principles of justice & public
faith; and asked whether it were likely that Mas: & Pa., to whose
Citizens half the loan office debt was owing would concur with
Virga., whose Citizens had lent but little more than three hundred
thousand dollars, in any plan that did not provide for that in
common with other debts of the U. S. He was against a limitation
to 25 years.

Mr. Lee wished to know whether by Loan office Creditors
were meant the original subscribers or the present holders of the
certificates, as the force of their demands may be affected by this
consideration.

Mr. Fitzsimmons saw the scope of the question, and said
that if another scale of depreciation was seriously in view he
wished it to come out, that every one might know the course to
be taken.

Mr. Ghoram followed the Sentiments of the Gentleman who
last spoke, expressed his astonishment that a Gentleman (Mr.
Lee) who had enjoyed such opportunities of observing the
nature of public credit, should advance such doctrines as were
fatal to it. He said it was time that this point sd. be explained,
that if the former scale for the loan office certificates was to be
revised and reduced as one member from Virga. (Mr, Mercer)
contended, or a further scale to be made out for subsequent depreciation
of Certificates, as seemed to be the idea of the other
member, (Mr. Lee,) the restoration of public credit was not only

visionary but the concurrence of the States in any arrangemts.
whatever was not to be expected. He was in favor of the limitation
as necessary to overcome the objections of the States.

Mr. Mercer professed his attachment to the principles of justice
but declared that he thought the scale by which the loans had
been valued unjust to the public & that it ought to be revised &
reduced.

On the question for the period of 25 years it was decided in
the affirmative seven States being in favor of it; N. Jersey &
N. York only being no.

Mr. Mercer called the attention of Congress to the case of the
goods seized under a law of Pena., on which the Come. had not
yet reported, and wished that Congs. would come to some resolution
declaratory of their rights & which would lead to an
effectual interposition on the part of the Legislature of Pena.
After much conversation on the subject in which the members
were somewhat divided as to the degree of peremptoriness with
which the State of Pa. should be called on, the Resolution on the
Journal, was finally adopted; having been drawn up by the
Secy., & put into the hands of a member.

The Resolution[54] passed without any dissent.[55]

[The evening of this day was spent at Mr. Fitzsimmons' by Mr.

Ghoram, Mr. Hamilton, Mr. Peters, Mr. Carrol, & Mr. Madison.
The conversation turned on the subject of revenue under the
consideration of Congress, and on the situation of the army.
The conversation on the first subject ended in a general concurrence
(Mr. Hamilton excepted) in the impossibility of adding to
the impost on trade any taxes that wd. operate equally throughout
the States, or be adopted by them. On the second subject Mr.
Hamilton & Mr. Peters who had the best knowledge of the temper,
transactions & views of the army, informed the company
that it was certain that the army had secretly determined not to
lay down their arms until due provision & a satisfactory prospect
should be afforded on the subject of their pay; that there was
reason to expect that a public declaration to this effect would
soon be made; that plans had been agitated if not formed for
subsisting themselves after such declaration; that as a proof of
their earnestness on this subject the Com̃ander was already become
extremely unpopular among almost all ranks from his
known dislike to every unlawful proceeding, that this unpopularity
was daily increasing & industriously promoted by many leading
characters; that his choice of unfit & indiscreet persons into his
family was the pretext and with some the real motive; but the
substantial one a desire to displace him from the respect & confidence
of the army in order to substitute Genl. [erased & illegible]
as the conductor of their efforts to obtain justice. Mr. Hamilton
said that he knew Genl. Washington intimately and perfectly,
that his extreme reserve, mixed sometimes with a degree of asperity
of temper, both of which were said to have increased of late, had
contributed to the decline of his popularity; but that his virtue
his patriotism & his firmness would it might be depended upon
never yield to any dishonorable or disloyal plans into which he
might be called that he would sooner suffer himself to be cut to
pieces; that he, (Mr. Hamilton) knowing this to be his true
character wished him to be the conductor of the army in their
plans for redress, in order that they might be moderated &
directed to proper objects, & exclude some other leader who
might foment and misguide their councils; that with this view he
had taken the liberty to write to the Genl. on this subject and to
recommend such a policy to him.]