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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SATURDAY APRIL 26. |
 | The writings of James Madison, |  |
SATURDAY APRIL 26.
Address to the States passed nem. con. It was drawn up by
Mr. Madison.[96]
The address to Rh. Id. referred to as No. 2, had
been drawn up by Mr. Hamilton.
The writer of these notes absent till Monday May 5th.[97]
“Address to the States, to accompany the Recommendations of the 18th.
“The prospect which has for some time existed, and which is now happily
realized, of a successful termination of the war, together with the critical exigencies
of public affairs have made it the duty of Congress to review and
provide for the debts which the war has left upon the United States and to
look forward to the means of obviating dangers, which may interrupt the harmony
and tranquillity of the Confederacy. The result of their mature & solemn
deliberations on these great Objects is contained in their several recommendations
of the 18th instant, herewith transmitted. Although these recommendations,
speak themselves the principles on which they are founded, as well as
the ends which they propose, it will not be improper to enter into a few explanations
and remarks in order to place in a stronger view the necessity of
complying with them.
“The first measure recommended is effectual provision for the debts of the
United States. The amount of these debts, as far as they can now be ascertained
is forty-two millions three hundred and seventy-five dollars as will appear
by the schedule N. I. To discharge the principle of this aggregate debt at
once or in any short period is evidently not within the compass of our resources;
and even if it could be accomplished the ease of the community would require
that the debt itself should be left to a course of gradual extinguishment and
certain funds be provided for paying in the meantime the annual Interest. The
amount of the annual interest as will appear by the paper last referred to is
computed to be two millions four hundred and fifteen thousand nine hundred
and fifty-six dollars. Funds, therefore, which will certainly & punctually
produce this annual sum at least, must be provided.
“In devising these funds Congress did not overlook the mode of supplying the
common treasury provided by the Articles of Confederation. But after the
most respectful consideration of that mode, they were constrained to regard it
as inadequate & inapplicable to the form into which the public debt must be
thrown. The delays & uncertainties incident to a revenue to be established &
collected from time to time by thirteen independent authorities is at first view
irreconcilable with the punctuality essential in the discharge of the interest of a
national debt. Our own experience, after making every allowance for transient
impediments has been a sufficient illustration of this truth. Some departure
therefore in the recommendation of Congress from the federal constitution was
unavoidable; but it will be found to be as small as could be reconciled with the
object in view and to be supported besides by solid considerations of interest
and sound policy.
“The fund which first presented itself on this as it did on a former occasion,
was a tax on imports. The reasons which recommended this branch of revenue
have heretofore been stated in an Act, of which a copy, N. 2 is now forwarded
& need not be here repeated. It will suffice to recapitulate that taxes on consumption
are always least burdensome because they are least felt and are borne
too by those who are both willing and able to pay them; that of all taxes on
consumption those on foreign commerce are most compatible with the genius
and policy of free states; that from the relative positions of some of the more
commercial States it will be impossible to bring this essential resource into use
without a concerted uniformity; that this uniformity cannot be concerted
through any channel so properly as through Congress, nor for any purpose so
aptly as for paying the debts of a revolution from which an unbounded freedom
has accrued to Commerce.
“In renewing this proposition to the states we have not been unmindful of the
objections which heretofore frustrated the unanimous adoption of it. We have
limited the duration of the revenue to the term of twenty five years and we
have left to the States themselves the appointment of the officers who are to
collect it. If the strict maxims of national credit alone were to be consulted,
the revenue ought manifestly to be co-existent with the object of it; and the
collection placed in every respect under that authority, which is to dispense the
former and is responsible for the latter. These relaxations will, we trust, be
regarded, on one hand as the effect of a disposition in Congress to attend at all
times to the sentiments of those whom they serve, and on the other hand, as a
proof of their anxious desire that provision may be made in some way or other
for an honorable and just fulfilment of the engagements which they have formed.
“To render this fund as productive as possible and at the same time to narrow
the room for collusions and frauds, it has been judged an improvement of the plan
to recommend a liberal duty on such articles as are most susceptible of a tax according
to their quantity and are of most equal and general consumption, leaving
all other articles, as heretofore proposed, to be taxed according to their value.
“The amount of this fund is computed to be 915,956 dollars. The estimates
on which the computation is made are detailed in paper No. 3. Accuracy in the
first essay on so complex and fluctuating a subject is not to be expected. It is
presumed to be as near the truth as the defect of proper materials would admit.
“The residue of the computed interest is 1,500,000 dollars & is referred to the
States to be provided for by such funds as they may judge most convenient.
Here again the strict maxims of public credit gave way to the desire of Congress
to conform to the sentiments of their constituents. It ought not to be
omitted however with respect to this portion of the revenue that the mode in
which it is to be supplied varies so little from that pointed out in the articles of
Confederation and the variations are so conducive to the great object proposed,
that a ready & unqualified compliance on the part of the States may be the
more justly expected. In fixing the quotas of this sum, Congress, as may be
well imagined, were guided by very imperfect lights, and some inequalities may
consequently have ensued. These however can be but temporary; and as far
as they may exist at all, will be redressed by a retrospective adjustment as soon
as a constitutional rule can be applied.
“The necessity of making the two foregoing provisions one indivisible &
irrevocable act is apparent. Without the first quality, partial provision only
might be made, where complete provision is essential; nay as some states
might prefer and adopt one of the funds only, and the other States the other
fund only, it might happen that no provision at all would be made. Without
the second, a single state out of the thirteen might at any time involve the
nation in bankruptcy; the mere practicability of which would be a fatal bar to
the establishment of national credit. Instead of enlarging on these topics, two
observations are submitted to the justice and wisdom of the legislatures. First,
the present creditors or rather the domestic part of them having either made
their loans for a period which has expired or having become creditors in the
first instance involuntarily, are entitled on the clear principles of justice and
good faith to demand the principal of their credits instead of accepting the
annual interest. It is necessary therefore as the principal cannot be paid to
them on demand, that the interest should be so effectually & satisfactorily
secured as to enable them, if they incline to transfer the stock at its full value.
Secondly if the funds be so firmly constituted as to inspire a thorough & universal
confidence, may it not be hoped that the capital of the domestic debt,
which bears the high interest of 6 per cent, may be cancelled by other loans
obtained at a more moderate interest? The saving by such an Operation would
be a clear one, and might be a considerable one. As a proof of the necessity of
substantial funds for the support of our credit abroad we refer to paper N 4.
“Thus much for the interest of the national debt. For the discharge of the
principal, within the term limited, we rely on the natural increase of the revenue
from commerce, on requisitions to be made from time to time for that purpose
as circumstances may dictate, and on the prospect of vacant territory. If these
resources should prove inadequate it will be necessary at the expiration of 25
years to continue the funds now recommended or to establish such others as may
then be found more convenient.
“With a view to the resource last mentioned, as well as to obviate disagreeable
controversies and confusions, Congress have included in their present recommendations
a renewal of those of the 6 day of Septr and of the 10 day of
October 1780. In both these respects a liberal and final accommodation of all
interfering claims of vacant territory is an object, which cannot be pressed with
too much solicitude.
“The last object recommended is a constitutional change of the rule by which
a partition of the common burthens is to be made. The expediency and even
necessity of such a change, has been sufficiently enforced by the local in justice
and discontents which have proceeded from valuations of the soil in every state
where the experiment has been made. But how infinitely must these evils be
increased on a comparison of such valuations among the States themselves! On
whatever side indeed this rule be surveyed the execution of it must be attended
with the most serious difficulties. If the valuations be referred to the authorities
of the several states, a general satisfaction is not to be hoped for. If they
be executed by Officers of the United States traversing the country for that
purpose, besides the inequalities against which this mode would be no security,
the expense would be both enormous and obnoxious. If the mode taken in the
act of the 17th day of february last, which was deemed on the whole least objectionable,
be adhered to, Still the insufficiency of the data to the purpose to
which they are to be applied must greatly impair, if not utterly destroy all confidence
in the accuracy of the result; not to mention that as far as the result
can be at all a just one, it will be indebted for the advantage to the principle
on which the rule proposed to be substituted is founded. This rule, although
not free from objections, is liable to fewer than any other that could be devised.
The only material difficulty, which attended it in the deliberations of Congress
was to fix the proper difference between the labour and industry of free inhabitants
and of all other inhabitants. The ratio ultimately agreed on was the
effect of mutual concessions, and if it should be supposed not to correspond
precisely with the fact, no doubt ought to be entertained that an equal spirit of
accommodation among the several legislatures will prevail against little inequalities
which may be calculated on one side or on the other. But notwithstanding
the confidence of Congress as to the success of this proposition, it is their duty to
recollect that the event may possibly disappoint them, and to request that measures
may still be pursued for obtaining and transmitting the information called
for in the act of the 17 of february last, which in such event will be essential.
“The plan thus communicated & explained by Congress must now receive its
fate from their constituents. All the objects comprised in it are conceived to
be of great importance to the happiness of this confederated Republic; are
necessary to render the fruits of the Revolution a full reward for the blood, the
toils, the cares, and the calamities which have purchased it. But the object, of
which the necessity will be peculiarly felt, and which it is peculiarly the duty
of Congress to inculcate, is the provision recommended for the national debt.
Although this debt is greater than could have been wished, it is still less on the
whole than could have been expected: and when referred to the cause in which
it has been incurred and compared with the burthens which wars of ambition
and of vain glory have entailed on other nations ought to be borne not only with
cheerfulness but with pride. But the magnitude of the debt makes no part of
the question. It is sufficient that the debt has been fairly contracted and that
justice and good faith demand that it should be fully discharged. Congress had
no option but between different modes of discharging it. The same option is
the only one that can exist with the states. The mode which has after long and
elaborate discussion been preferred is we are persuaded, the least objectionable
of any that would have been equal to the purpose. Under this persuasion we
call upon the justice and plighted faith of the several states to give it its proper
effect, to reflect on the consequences of rejecting it; and to remember that
Congress will not be answerable for them.
“If other motives than that of justice could be requisite on this occasion, no
nation could ever feel stronger. For to whom are the debts to be paid?
“To an ally, in the first place, who, to the exertion of his arms in support of
our cause has added the succours of his treasure; who to his important loans
has added liberal donations, and whose loans themselves carry the impression
of his magnanimity and friendship. For more exact information on this point
we refer to paper no. 5.
“To individuals in a foreign country, in the next place, who were the first to
give so precious a token of their confidence in our justice, & of their friendship
for our cause; and who are members of a republic, which was second in
espousing our rank among nations. For the claims and expectations of this
class of creditors we refer to paper No. 6.
“Another class of creditors is that illustrious & patriotic band of fellow-citizens,
whose blood and whose bravery have defended the liberties of their
country, who have patiently borne, among other distresses, the privation of
their stipends, whilst the distresses of their country disabled it from bestowing
them; and who even now ask for no more than such a portion of their dues as
will enable them to retire from the field of victory and glory into the bosom of
peace and private citizenship, and for such effectual security for the residue of
their claims as their country is now unquestionably able to provide. For a full
view of their sentiments & wishes on this subject we transmit the paper n 7,
and as a fresh & lively instance of their superiority to every species of seduction
from the paths of virtue and of honor we add the paper No. 8.
“The remaining class of creditors is composed partly of such of our fellow
citizens as originally lent to the public the use of their funds, or have since manifested
most confidence in their country by receiving transfers from the lenders;
and partly of those, whose property has been either advanced or assumed for
the public service. To discriminate the merits of these several descriptions
of creditors would be a task equally unnecessary & invidious. If the voice of
humanity plead more loudly in favour of some than of others; the voice of
policy no less than of justice pleads in favour of all. A wise nation will never
permit those who relieve the wants of their country, or who rely most on its
faith, its firmness and its resources, when either of them is distrusted, to suffer
by the event.
“Let it be remembered finally that it has ever been the pride and boast of
America, that the rights for which she contended were the rights of human
nature. By the blessing of the Author of these rights on the means exerted
for their defence they have prevailed against all opposition and form the basis
of thirteen independent States. No instance has heretofore occurred, nor can
any instance be expected hereafter to occur, in which the unadulterated forms
of Republican government can pretend to so fair an opportunity of justifying
themselves by their fruits. In this view the citizens of the United States are
responsible for the greatest trust ever confided to a political society. If justice,
good faith, honor, gratitude and all the other qualities which enoble the character
of a nation & fulfil the ends of government, be the fruits of our establishments,
the cause of liberty will acquire a dignity and lustre, which it has never
yet enjoyed, and an example will be set, which cannot but have the most
favourable influence on the rights of Mankind. If on the other side, our governments
should be unfortunately blotted with the reverse of these cardinal and
essential virtues, the great cause which we have engaged to vindicate, will be
dishonored and betrayed; the last and fairest experiment in favor of the rights
of human nature will be turned against them; and their patrons and friends
exposed to be insulted and silenced by the votaries of tyranny and usurpation.”
—Cont. Cong.
Paper No. 1 referred to in the address was an estimate of the national debt.
As to the foreign debt the figures are the same as in the estimate of April 8
(p. 443); as to the domestic debt they are the same with the addition of “Commutation
to the army” (Act of March 22) 5,000,000 livres and “Bounty due to
privates” 500,000 livres, making the total domestic debt $34,115,290 and the
total debt $42,000,375, the aggregate of interest being $2,415,956. For Paper
No. 2, the letter of December 16 to Rhode Island on the subject of the import
duties, see p. 288 n. Paper No. 3 was an estimate of the revenue that the import
duties would produce. All goods from Europe, exclusive of tea, brandy and
wine were estimated at a value of £3,000,000 sterling, which at 4s. 6d. per dollar
would make $15,555,554, giving, at five per cent., $777,773. From spirits,
wines, teas, sugar, coffee and cocoa, and molasses the revenue would be $217,777,
making a total of $995,550. Deducting 8 per cent. for collection, the net
estimated revenue would be $915,956. Paper No. 4 was a copy of Franklin's
letter from Passy, December 23, 1782, stating that a knowledge that the states had
not agreed to the impost had hurt the credit of the United States in France and
Holland, and of the French Minister's letter to Congress, March 15, 1783,
stating that no further assistance could be expected from France, or from any
other source abroad, unless measures for securing regular revenue should be concerted.
Papers No. 5 and 6 gave the contracts between the United States and
France and Holland, respectively, for the repayment of the loans made by those
governments. Paper No. 7 was the address of the army dated “Cantonments,
Hudson's River, December, 1782,” setting forth the unendurable distress caused
by a want of funds. Paper No. 8 was a copy of Washington's letter giving the
anomynous communications to the army and his orders for the meeting of the
officers, the results of the meeting and all the correspondence. All the papers
may be found in extenso in Journals of Congress, iv, 197, et seq.
| The writings of James Madison, | |