Public Credit. [FEBRUARY 18, 1790. tion to the present motion, when taken altoThe arguments of the gentleman in opposigether, seem to rest their whole force upon the idea of a contract said to be made, and of which contract the papers in question are said to be evidences. This is a doctrine which he absolutely denied. If those papers are evidences of any thing, it is of the pre-existing contract carepublics, when brought into calamitous circumstances, than to see this great law super- his sentiments generally on the subject now unMr. SCOTT.-Inasmuch as he had expressed ceding the forms established to regulate civil der consideration, when it bore a shape someintercourse. Without such exercises of power, what different from the present, and considerjustice could not have been done, nor the na-ing that, perhaps, he might be induced to vote tion preserved. And, in such a situation, no in a manner that would not be understood withwise people will ever be bound by the ordinary out an explanation, he requested the indulgence maxims of Government; so that he had no doubt of the committee whilst he attempted to offer of the right of the Government to interfere on his sentiments freely upon the business immethe present occasion. He also thought that, in diately under their notice. all the deliberations of the House, the nature of our Government should be attended to. It was a Government of the people, and nothing like a coercive principle was to be found in it. In order, therefore, to make the administration of it salutary and honorable, our measures should be calculated to meet the popular approbation. Paying taxes was a serious thing; and to induce a free people to pay taxes, they must be convinc-broken. At what period, sir, said he, did Coned of the necessity and equity of them. And if the proposition on the table was calculated to reconcile the public mind to the requisite degree of taxation, every class of the public creditors would, probably, be finally benefited by its adoption. If, on the contrary, our measures should appear irreconcilable to the popular idea of equity and right, is it probable that they would meet with that hearty support, from the community, which, under our Government, is essential to a prosperous administration of it? The general opinion of the people should have its due weight in all our deliberations; and he believed that the calm and unbiassed expression of the public mind, would be always found the best index of that which was just and politic. For his own part, he declared that he had always been convinced of the equity of such an arrangement as that proposed by his colleague, but that he had considerable doubts with regard to the practicability of such a plan, which were not yet altogether removed. But this appeared to him by no means a sufficient reason to prevent us from recognizing the principle. This would be a declaration to the world, and to our distress of his country, and from dire necessity, constituents, that we did not disregard the great accepted of this; and would, with equal geneThe original creditor, in consideration of the principles of natural equity; and if hereafter, on rosity, have accepted of the 2s. 6d. in cash, and further investigation, the plan should be found have signed an acquittance for his pay, as freeimpracticable, this would be a sufficient justifi-ly as he signed over that paper for 28.6d. in cash, cation to us for relinquishing it. gress contract with their soldiers? At what period did they contract with their citizens, who furnished the necessary supplies for our army? Was it at the time those papers were issued, or long before? It was long before. Consequently those papers cannot be considered as evidences of any contract, unless we refer to an implied contract made when they were issued, at the conclusion of the war; which, in fact, was the last conceivable period for the settlement of such engagements as had existed long before, and to fulfil which was totally out of the power of Congress. Surely, then, it must be allowed, since it was not in their power to fulfil the original engagements, and since it was not in the power of interested individuals to compel them to compliance, that the contract reduced to the necessity of offering some conwas completely annihilated, and Congress was sideration in lieu thereof. What did they offer? Paper of the nominal value of twenty shillings, but of no more real value than two shillings and six-pence. tlemen that this transaction implies a contract, to the speculator. Now, if it be urged by genit may be confessed the papers in question are evidences of such implied contract, but of the real existence whereof there is no proof. He concluded with observing, that he had been unexpectedly induced to appear on the floor, and had hastily expressed ideas which were the ebullitions of the moment; and hoped, that, in future, the debate would be conducted without intimating, in the most remote degree, verned by this implied contract, the real value He would also aver, that if we are to be gothat any gentleman was influenced by unwor- of the paper in question is at once fixed by the thy motives. For his own part, when he enter-market price, then current, at 2s. 6d. in the ed the House, he considered himself as entering into a sanctuary; and that every motive or passion which had not for its object the public good should be left behind. He did not doubt that every gentleman took his seat here with similar impressions; and expressed a hope that the final result of their deliberations would be that which would contribute most to the national honor and advantage. pound. The residue is the last grand sacrifice which the original creditors, as well citizens as soldiers, made to their beloved country. Thence it is evident there was no original consent of parties obtained; and hence no original contract existed. This, said he, is fair reasoning, it is no fine spun logic; but it is arguing from the truth, and the eternal nature and fitness of things. But those papers, it has been said, are not FEBRUARY 18, 1790.] Public Credit. [H. OF R their members, is properly, and to all intens and purposes, before the House. But we are further told, that no facts have been proved; we have no evidence, therefore we cannot proceed. He granted that no witnesses had appeared to make evidence, no swearing in court, but will it follow from thence, that we are not possessed of the facts? He presumed not. If the facts are within our knowledge, we are in as full possession of them as if they had been sworn to; and for many other facts neces only evidences of a contract, but since they are payable to A. B. or bearer, the bearer is an original contractor! Where will this argument lead us? A robber on the highway, a private thief, a fraudulent purchaser, without consideration, if this argument be admitted, may all, or severally, become bearers. Are they severally original contractors? Surely no gentleman will pretend to say that they are. Neither is it possible to detect those frauds, if what has been said is true, that many of those certificates were taken out originally in fictitious names. Sup-sary to the investigation of this business, we can pose one of them has got into the hands of the resort to our public records. Moreover, there is robber, the burglar, or the thief, how will that little use of evidence, other than to inform and man, who never existed, appear in court and convince the minds of the judges. As to the convict him of the fraud? From these premises truth or fallacy of the objection, how that inforI shall infer, that as this was a case without re-mation and conviction happens, it is very indifmedy, the bare possession of a certificate is not a sufficient evidence to prove the holder was an original contractor. ferent, especially in a Legislative body. In a word, the arguments to be contended with appear to move in so small and contracted' a At an early stage of this business, the gentle-sphere as never to extend beyond the pleadings men in opposition to the amendment, appeared at the bar of a county court; and, consequentto lay great stress on the want of authority inly, were very.unworthy of the attention of the Congress to intermeddle in such cases; but as great American Court of Equity. we get forward, the gentlemen appear to give up-they have been beaten off that ground, and impolicy and impracticability of the measure is principally urged. Yesterday, however, these same gentlemen abandoned the latter, and resumed the former station with great eagerness. We are likewise told, that although in the Parliament of Great Britain, which is omnipotent, they can do any thing; yet we, being a Legislative body, whose authority is constitutionally confined to certain objects, cannot make the proposed discrimination. He now remarked that, from these observations, it might be supposed he would vote for the proposed amendment; but he said he believed he would not. Not on account of the demerit of the proposition, or the merit of the arguments which had been used against it. There were other considerations which existed that were not only unprovided for in the amendment, but it seemed to him as if they were barred therefrom. One of these which came immediately within his own knowledge, and which must be likeLet us make some inquiry into this. Is not wise within the knowledge of many gentlemen the whole business before us of such a nature, in this House, one of whom had already menthat, without our interference, it must remain tioned it; it is this-our quartermasters, pureternally as it is? This, it may be presumed, chasers, contractors, &c., or some of them, will be granted on all hands. What follows? have been sent out among our citizens to proThat as it is a proper subject of Legislative dis- cure supplies, without a shilling in their pockcretion, the Legislature must, of necessity, and ets. They have bought on trust from indivifrom the nature of the thing, possess all powers duals; afterwards those individuals have been necessary to do what is right and just in the prevailed upon (without payment being made) premises; and, consequently we have the power to give receipts, as if they had been actually of discriminating if justice and right demand it. paid, on a pretext that the accounts of the purThe argument, therefore, which the gentlemen chases could not be settled, nor money obtainhave adopted on this subject, as well as many ed to pay them, without those previous acquitothers to which they have occasionally resorted, tances. Where this business originated he knew must appear to the committee as perfectly in-not, but he vouched for the facts in a great consistent and futile. number of instances to have come within his It may be necessary, however, to advert to one knowledge. The consequence appears to be, or two other examples of the same complexion. that those purchasers, on producing the reWe are told, that the advocates of the propos- ceipts, had obtained certificates for the aggreed amendment are acting officiously; no com-gate sum in their own names, as if for supplies plaints having been laid before the House; no by them furnished, and have made no satisfacpetitions; no parties contending before us; tion to the individuals. therefore, say they, we have nothing to do with it; the question is not legally before the Court, &c. This is, in a similar phrase," there is no writ sued out, no bill filed, no issue joined between the parties." In answer to this argument, it is necessary only to observe, that every complaint of the people, by virtue of the representative capacity of Now, with respect to this species of paper, thus procured by fraud, and issued without consideration given by the persons to whom issued, he could not consent to fund. Nay, he would sooner part with his right hand than consent to fund certificates thus circumstanced, and thereby subject those very individuals thus robbed of their property, to contribute towards paying the H. OF R.] Public Credit. ice of that very property into the pockets of their robbers. [FEBRUARY 18, 1790. or language which would be offensive; that although the sentiments of other members should differ from his, he wished so far to respect those sentiments as to treat them with decency. Shall it here be said, "the courts are open. and the individuals may there be redressed?" Poor alternative, indeed! Were I to stand up He considered the proposition of the gentleon this floor and hold forth such doctrine as man from Virginia (Mr. MADISON) was designthis, that the courts are open; that the con-ed to effect two purposes. The one, a comstitution contemplates the United States as a pensation to the original creditors, who, during body that may sue and be sued, and points out the late war, in times of distress, had loaned certain proceedings which shall be had when money, furnished supplies, and rendered milithe United States become a party; and that tary services; and who had only received satistherefore every holder of a certificate has the faction therefor in paper of inconsiderable varecovery of the money in his power, on applica- lue, forced on them by the public, and deprecition to the courts; and should I conclude that ated by their acts. This class of citizens, he Congress has nothing to do with the present conceived, had a just and equitable claim for business." Pray, what should I merit by such the full difference in value between that paper, pleadings? I doubt whether I should merit when paid, and specie. The other object of the pity; contempt I might be certain of receiving, proposition alluded to, was, he said, to comSuffer me to ask, if the evil I have mentioned pensate those creditors who now hold alienated be not too general in its nature to admit of any certificates. Each description of those crediremedy, but by Legislative interposition? May tors had, in his opinion, claims on the public. not many of those contractors be in a state of The first was founded on an original contract bankruptcy? May not some of them have tra- between them and the Goverument, part of velled to the Spanish Main to govern Colonies? which only had been complied with, and the reMay not some of them have returned to their sidue still remained undischarged. The other usual places of abode, at many hundred miles was grounded on having possession of the padistance from the defrauded individuals, as per which contained the promise to pay. aforesaid? And can it be supposed, that the widow and the fatherless, the poor and the needy, by them thus defrauded, perhaps of a bullock, or some bushels of wheat, individually, but in the whole, amounting to an enormous sum, can follow them to obtain justice? How are these plunderers to be pursued? And how can any thing be recovered from them in a common Court of Law? Especially when we consider that, to all the difficulties already mentioned, must be added, that the very receipts, under their own hands, would be exhibited as evidence against the injured, honest, original creditor! Is not this case, so often to be met with as it is, beyond remedy, unless by the interposition of Congress? Now, as this case is not only unprovided for, in the amendment proposed by the worthy gentleman from Virginia, but the door seems to be shut against a future provision; and, considering that the same gentleman, or some other, may bring forward something that may strike at the root of the evil, and produce more effectual justice, I shall, at present, vote against the proposition; but if I am disappointed in my expectation, and that gentleman shall bring his proposition again forward in the House, I shall not suppose myself debarred from voting with him. Mr. SENEY rose and observed, that it was with reluctance he attempted to express to the Committee, his ideas upon a question which had been so fully and ably discussed. How ever, as it had been expected that gentlemen would not, in a case of such magnitude, be content with merely a silent vote, he rose to declare the reasons upon which his decision was founded. In doing this, he hoped that he should not use epithets which might be deemed harsh, It has been contended that the United States have not ability to pay both. In this case a question arises: What is, upon the whole, most just and expedient? Some gentlemen contend, that it is incumbent on us to make full provision for those who hold the assigned certificates, without any for the original creditors who have alienated them. Others think, that the misfortune of Government, in this respect, should not be felt by either class solely, but be borne by both. That it is more just to adopt a mode of composition, by which those creditors should mutually share in this misfortune, and be mutually benefited by a provision within our power to make; with those his sentiments accorded. He could not be impressed with the justice or reason of a measure calculated to make a total sacrifice of one class of creditors, and full payment to the other class. Such a step could not, in his opinion, be justified in any distinction or precedence which existed in their claims. When it was considered that the original creditors furnished money and supplies, and rendered services essential to the preservation of their country, and at a time when its liberties were invaded, and every thing which can be dear to freemen was in jeopardy and at stake, he could not apprehend that their claims would be deemed inferior to those of their rivals. In his opinion, these circumstances entitled them to superior notice. Believing, however, that the amendment under consideration would, upon the whole, effect more substantial justice than any other practicable scheme that had been proposed to the Committee, or which he had heard of, his assent would, therefore, be given to it. He then noticed a variety of objections which had, in the course of debate, been urged against INDEX TO THE PROCEEDINGS AND DEBATES IN THE SENATE A. First Session. Third Session. Accounts between the United States and individual | Algiers-a letter from the Secretary of State on the States, a bill from the House for the settle- ment of, 53; passed, 56. Acts and records, a bill for the safe keeping of them, Adams, John, elected Vice-President of the U. States. Amendments to the constitution recommended, 73; Answer to the address of the President of the U. Second Session. Accounts between the United States and the several a bill from the House, for adding two commis- Acts and records, bill from the House, to prescribe Balances due the United States, a bill concerning Adjournment, a resolution from the House, propos- report made and laid on the table, 1031. resolution from the House, proposing to ad- resolution repealing the last resolution, and 1071. Algiers and Tunis, the plan of a truce presented Amendments to the constitution-See constitution. Answer of the Senate to the President's speech, 971. priations for the service of the present year, Army accounts; a resolve from the House, providing C. establishment; passed, 1791. a bill supplementary to the above, was re- First Session. Congress, a bill for altering the time of its next Constitution of the United States, VIII— proposed amendment to-See amendments. Second Session. Census, a bill received from the House for enumerat- a bill to extend the act to Rhode Island, 1034; Chaplain.—Rev. Dr. Samuel Provost appointed, 968. Clerks, bill for increasing the salaries of clerks in Second Session. office of the commissioners for settling ac- Debt of the United States, a bill from the House, Collectors, the Secretary of the Treasury, ordered a bill to prevent the exportation of goods not gress shall hold their next session in Phila- a resolution received from the House, pro- assent of, to certain acts of Maryland, Geor- .Do. ratified by Maryland and New Do. do. by Rhode Island, 1037. Third Session. Carrying trade, a memorial from masters of vessels Coins, a bill from the House concerning the rate of Congress, a committee appointed to report at what making provision for the debt of the United a bill to make further provision for the pay- a bill from the House, making provision for Delaware, a message from the President announces Dobson, Thomas, his letter proposing to pre- Doors of the Senate, a proposition made for opening Duties, a bill from the House, further to suspend Duties on tonnage-See tonnage. a bill from the House, to provide more effec- Third Session. Debt of the United States, a bill reported supple- the commissioners under the act of last ses- a bill from the House to explain and amend a bill from the House supplementary to the Consuls, a bill in relation to, reported, 1787; bill Doors of the Senate, a proposition made for opening Duties, a bill from the House to regulate the collec- a bill to suspend part of the above act, 77; amending a part of the above original act, 85; Duties on imports, a bill from the House for laying a them when acting in their legislative capa- Duties, a bill from the House, making further pro- |