The Grand Committee, consisting of a member from each.
State, report : That they have considered the contents of a me
morial, presented by the army, and find that they comprehend
five different articles. " 1st. Present pay. 2d. A settlement of
accounts of the arrearages of pay and security for what is due.
3d. A commutation of the half-pay, allowed by different resolu
tions of Congress, for an equivalent in gross. 4th. A settle
ment of the accounts of deficencies of rations and compensation.
5th. A settlement of the accounts of deficencies of clothing and
compensation." Whereupon,
230 HAMILTON'S WORKS. [^E T . 26.
Resolved, As to the first that the Superintendent of Finance
be directed, conformably to the measures already taken for that
purpose, as soon as the state of the public finances will permit,
to make such payment, and in such manner, as he shall think
proper, until the further order of Congress.
Resolved, With respect to the second article so far as re
lates to the settlement of accounts that the several States be
called upon to complete, without delay, the settlement with their
respective lines of the army, up to the first day of August, 1780,
and that the Superintendent of Finance be directed to take such
measures as shall appear to him most proper for effecting the
settlement from that period.
As to what relates to the providing of security for what
shall be found due on such settlement,
Resolved, That the troops of the United States, in common
with all the creditors of the same, have an undoubted right to
expect such security ; and that Congress will make every effort
in their power to obtain from the respective States substantial
funds, adequate to the object of funding the whole debt of the
United States, and will enter upon an immediate and full con
sideration of the nature of such funds, and the most likely mode
of obtaining them.
REPORT BY HAMILTON OF A COMMITTEE UPON THE MEMORIALS
OF THE REPRESENTATIVES OF THE COMMONWEALTH OF PENN
SYLVANIA, OF THE 28TH OF AUGUST, AND 12TH OF NOVEM
BER LAST.
January 30, 1783.
The Committee of the 28th August, states that their con
stituents labor under grievances, because they are not enabled to
settle their accounts against the United States, and because they
cannot obtain payment of the debts due to them by the public,
nor receive interest on loan-office certificates, dated subsequent
to the month of February, 1778. It states further, that appre-
jET.26.] RESOLUTIONS IN CONGRESS. 231
hensions had taken place, that the interest on certificates of a
prior date would be suspended; that other States made, and
were making provision for ascertaining and paying sundry
debts due to their citizens, and that the suspension of debts com
plained of, was a material impediment to the collection of taxes ;
after which follows a request, that Congress will be pleased to
devise and recommend such general plan, as they shall think
adequate and effectual, for settling and ascertaining the un
liquidated debts of the United States, and for paying the same,
or at least some part thereof, and also for the regular and punc
tual payment of the interest on all the public debts, as well on
loan as otherwise, until the principal shall finally be discharged.
The subsequent memorial of the 12th November, after refer
ring particularly to the former, and observing that the business
was yet uneffected, declares the assembly to be deeply impressed
with the absolute necessity, that speedy and effectual measures
be taken to afford relief to the public creditors, at least so far as
to liquidate and ascertain their respective claims, and to secure
to them the payment of the interest due thereon, until the prin
cipal be discharged ; and then requests, that Congress will be
pleased to give them such information as will enable the House
to judge what steps it may be proper to take, in order to afford
that effectual relief to the public creditors in Pennsylvania,
which they conceive it to be their indispensable duty to procure.
On these memorials Congress remark :
That the objects to which they relate must necessarily de
pend on the compliances of the several States with the requisi
tions of Congress. That the interest payable by bills of ex
change on loan-office certificates, continued until an express
declaration made to Congress, that those who should draw bills
for that purpose, must provide for the payment of them. That
Congress are not informed of any State which has taken separate
measures for satisfying its own citizens, who are public credit
ors ; and that there does not appear a possibility of making such
a private and partial provision, because the various certificates
are principally made payable to the bearer of them, and have
been transferred and negotiated. A provision for them by any
232 HAMILTON'S WORKS. [^Er. 26.
State must therefore exclude the demands of many of its own
citizens, or admit the demands of all.
That the attempts to pay any of the past debts would form
so heavy a deduction from the greatest revenue which can be
raised, as would totally obstruct all present service. Wherefore,
the provision to be made at present, ought to be confined to the
interest of the public debts. That such provision would afford
eventual relief to the public creditors, and enable them to sup
port their share of the public burthens, without appropriating
the whole revenue, which can be drawn from the people, to a
payment of debts, and leaving thereby the public service unpro
vided for, which would involve the ruin of all ranks, whether
creditors or others.
That Congress are, and have been long impressed with the
absolute necessity, that speedy and effectual measures should be
taken; first, to liquidate and ascertain the public debts, and,
secondly, to secure the payment of the interest, until the princi
pal could be discharged, as will appear from the following
facts:
That for the first of these essential objects, Congress had
made provision by their Acts of the 20th and 27th of February
last, and have reason to believe, from the information contained
in a letter, from the office of Finance, dated the 3d of December
following, and the report of a committee thereon (both which are
annexed), that the plan adopted will speedily be in an effectual
train of execution throughout the United States. That the duty
of five per cent, was recommended by Congress so early as the 3d
of February, 1781 ; but after a delay of near two years, Congress
have the mortification to find, that one State entirely refuses its
concurrence ; that another has withdrawn its assent once given,
and that a third has returned no answer.
That when Congress received the determination of the State
of Ehode Island on that subject, they resolved to send a solemn
deputation to that State, to induce a reconsideration of the mea
sure. At the moment when the committee were about to de
part, intelligence was received, that Virginia had repealed the
act formerly passed on that recommendation, which has placed
JSx.26.] RESOLUTIONS IN CONGRESS. 233
the business on a new ground, and compelled Congress to take
it up in a more extensive view.
The inability of Congress to perform the engagements taken
with the public creditors will readily appear, when it is consi
dered how defective have been the compliances of the States in
every period of the war. Without recurring to details .previous
to the year 1782, it will be sufficient to state the situation of the
finances for that year, which is as follows : Congress, by their
resolution of the 30th October, 1781, demanded 8,000,000 of
dollars for the service of the ensuing year. Without noticing
the lesser neglects of their requisition, the annexed account will
show, that only 420,031.29-90 have have been received.
The precise account of moneys in Europe cannot be ascer
tained until the final settlement of the accounts there, because
the bills drawn on Spain and Holland, having been finally paid,
and made payable in France, the sum in livres of those which
remained due at the close of the year 1781, and which had been
drawn in guilders and dollars, must depend on the different ex
changes between Amsterdam, Madrid, and Paris. But according
to the best accounts which can be obtained, the anticipations
made in the funds for the year 1782, amounted at the close of
1781, to 4,000,000 of livres. For the service of that year his
most Christian Majesty lent the United States 6,000,000 livres.
In addition thereto, Mr. Adams opened a loan in Holland for
10,000,000 of livres ; but, by the last accounts from him, he had
obtained only 3,000,000. So that the whole sum borrowed for
the year 1782, being 9,000,000, there remained, after deducting
the anticipations, only 5,000,000, which, according to the course
of exchange which has prevailed, will amount to 833,333.30-90
dollars.
By the annexed account of the receipts and expenditures for
the year 1781, it appears, that there were in the treasury, at the
commencement of the year 1782, 292,453.66-90 dollars ; so that
the whole amount of the sums which Congress have had to carry
on the public business for the year 1782, is no more than
1,545,818.30-90 dollars.
From the annexed estimates, it will appear that the pay of
234 HAMILTON'S WORKS. [JEn. 26.
the American army, according to the present reduced establish
ment, amounts to 3,038,795.32-90 dollars that the clothing
amounts to 1,165,263 that the rations, besides those issuable
to prisoners, amount to 1,509,352 = 5,713,610.32-90. So that
the three branches of feeding, clothing, and paying the army, on
its present establishment, would amount to 5,713,610.32-90,
without entering into the other branches of service, or consider
ing the necessity of tents, firing, camp utensils, horses, carriages,
forage, military stores, hospitals, and the like.
The incompetency of the revenue will appear from a com
parison of it with the sums necessary for feeding and clothing
the army, which services alone amount to above 2,500,000
dollars.
And what must place the matter in a still more striking
point of view, is, that the whole sum which Congress could com
mand was not sufficient to pay the interest then due on the pub
lic debts. Every circumstance, therefore, which has hitherto
retarded the measures which Congress have adopted for making
provision for the public debt, has increased the necessity of ma
king such provision. And, therefore, notwithstanding the dis
couraging obstacles they have hitherto encountered, they con
ceive it a duty to themselves and to their constituents to perse
vere in their intentions, and to renew and extend their endea
vors to procure the establishment of revenues equal to the pur
pose of funding all the debts of the United States. And they
think it proper to inform the Assembly of Pennsylvania, that
this subject is now before them under solemn deliberation, and
that the ready and early compliance of the Legislature of Penn
sylvania with the recommendation of the 3d of February, 1781,
assures Congress of the vigorous support of that State.
Among the steps taken by Congress to secure the debts in
curred for the common defence, they must not omit to mention
the recommendation of the 6th of September, 1780, for a cession
of part of the Western territory, claimed by particular States. In
consequence thereof, New- York has made a cession, accepted by
Congress, the nature of which will appear by the act herewith
communicated.
^ET.26.] RESOLUTIONS IN CONGRESS. 235
Yirginia and Connecticut have also made cessions, the accept
ance of which has hitherto been delayed by peculiar circum
stances. Other States, claiming Western territory, have not yet
complied with the recommendation. Congress cannot help call
ing the serious attention of the Legislature of Pennsylvania to
that subject, which they consider as of importance, not only as it
may affect the public credit, but as it will contribute to give ge
neral satisfaction to the members of the Union. They intend
also to renew their instances with the other States on the same
occasion.
VALUATION OF LANDS DEFERRED.
February 6, 1783.
Whereas, the carrying into execution the eighth article of the
Confederation, relative to a valuation of land for ascertaining the
quotas of each State, towards the general expense, in a manner
consistent with justice to all the members of the Union, and with
such accuracy as the importance of the subject demands, will ne
cessarily be attended with very considerable expense, to which
the present state of the public finances is inadequate ; and
whereas, in a matter so fundamental in the Confederation, it is
essential to the harmony and welfare of the United States that
the said article should be carried into eifect with great care, cir
cumspection, and impartiality, and a short delay will be much
less pernicious than a defective execution ; therefore,
Resolved, That Congress are under a necessity of deferring
the attempt to a period when the situation of the finances of the
United States will admit of the necessary expense for effecting
the object with as much precision and equity as possible; and
that they will then proceed to such valuation by Commissioners
appointed by them, and acting under their authority upon prin
ciples uniform throughout the United States.
Resolved, When the valuation is complete, Congress will
finally adjust the accounts of the United States with the States
236 HAMILTON'S WORKS. [J3r. 26.
separately, agreeable to that standard, making equitable abate
ments to such States as have been more immediate sufferers by
the war, and in the mean time will adhere, in the temporary ad
justment of those accounts, to the proportions established from
time to time by the several requisitions of Congress.
Resolved, For the information of Congress, in forming an
eventual plan, that those States which have already made valua
tions of their lands respectively, be requested to transmit to Con
gress the amount of such valuations, with an explanation of the
principles on which they have been made.
PERMANENT AND ADEQUATE FUNDS TO BE COLLECTED BY CON
GRESS.
February 12, 1783.
Resolved, That it is the opinion of Congress that complete
JUSTICE cannot be done to the creditors of the United States, nor
the restoration of PUBLIC CREDIT be effected, nor the future ex
igencies of the War provided for, but by the establishment of
permanent and adequate funds to operate generally throughout
the United States, to be collected by Congress.
Feb. 20, 1783.
Resolved, That the Commander-in-Chief be informed that Con
gress, always happy to receive his sentiments on the political and
military affairs of these States, the utility of which they have
upon so many occasions experienced, have paid all the attention
to his letter of the thirtieth of January which the importance of
it demands. That should the war continue another campaign,
every motive of policy and economy would operate in favor of
the enterprise suggested, but that, on the present situation and
prospects of these States, it would be inexpedient at this time to
^ET.26.] RESOLUTIONS IN CONGRESS. 23<T
determine upon the plans, or to enter upon the extensive pre
parations it would require.
That the official accounts received by Congress, correspond
ing with other intelligence, afford appearances of an approaching
peace.
Resolved, That the Secretary of Foreign Affairs be directed
to make a confidential communication to the Commander-in-
Chief of the state of the Negotiations for Peace, when the last
advices were received.
OPEN DEBATE.
1783.
Whereas it is the desire of Congress that the motives of their
deliberations and measures (as far as they can be disclosed con
sistently with the public safety) should be fully known to their
constituents, therefore Eesolved, that when the establishment
of funds for paying the principal and interest of the public debt
shall be under the consideration of this House, the doors shall
be opened.
1783.
The Committee to whom were referred certain letters of the
Commander-in-Chief, submit the following resolution :
Resolved, That Congress consider the conduct of the Com
mander-in-Chief on the occasion of some late attempts to create
disturbances in the army, as a new proof of his prudence and
zealous attention to the welfare of the community ; that he be
informed that Congress also entertain a high sense of the patri
otic sentiments expressed by the officers in their proceedings,
which evince their unshaken perseverance in those principles
which have distinguished them in every period of the war, and
have so justly entitled the troops of the United States to the
esteem and gratitude of their country, and to the character of a
PATKIOT ARMY.
238 HAMILTON'S WORKS. [JSr. 26.
1783.
Resolved, That a Committee be appointed to consider of the
best manner of carrying into execution the engagements of the
United States for certain allowances of land to the army at the
conclusion of the war.
1783.
Resolved, That the Commander-in-Chief be informed, it is the
intention of Congress to effect the settlement of the accounts of
the respective lines previous to their reduction, and that Congress
are doing, and will continue to do, every thing in their power
towards procuring satisfactory securities for what shall be found
due on such settlement.
19th March, 1783.
Resolved, That as Congress are desirous of manifesting at all
times the most perfect confidence in their ally, the Secretary of
Foreign Affairs be directed to communicate to the Minister from
the Court of France to these States, the separate article of the
Provisional Treaty between the United States and his Britannic
Majesty, and that he inform the Commissioners from these States
for making peace of the reasons for that communication, repeat
ing to them the desire of Congress that they will upon all occa
sions maintain perfect harmony and confidence with an ally to
whose generous assistance the United States are so signally
indebted.
Resolved, That Congress entertain a high sense of the services
of their Commissioners for their steady attention to the dignity
and essential interests of the United States, and in obtaining
from the Court of Great Britain articles so favorable and so im
portant to those interests.
JET. 26.] RESOLUTIONS IN CONGRESS. 239
NATIONAL FUNDS.
March 20th, 1783.
Whereas Congress did, on the twelfth day of February last,
resolve, that it is the opinion of Congress, that the establishment
of adequate and permanent funds, in taxes or duties, which shall
operate, generally and on the whole, in just proportions through
out the United States, are indispensably necessary towards do
ing complete justice to the public creditors for restoring public
credit, and for providing for future exigencies of the war ; and
whereas, it is the duty of Congress, on whose faith the public
debts have been contracted for the common safety, to make every
effort in their power for the effectual attainment of objects so
essential to the honor and welfare of the United States, relying
on the wisdom and justice of their constituents for a compliance
with this recommendation : Therefore,
Resolved, That it be earnestly recommended to the several
States, without delay, to pass laws for the establishment of the
following funds, to be vested in the United States, and to be
collected and appropriated by their authority. Provided, that
the officers for the collection of the said funds shall be inhabit
ants of each State respectively in which they reside, and being
nominated by Congress, shall be approved and appointed by
such State, accountable to, and removable by, Congress; and
provided that, if after any nomination being reported to the
State, the same is not approved or rejected at the next meeting
of the legislature, the person or persons so nominated shall be
deemed to be duly appointed, viz. :
A duty of five per cent, ad valorem, at the time and place of
importation, upon all goods, wares, and merchandises of foreign
growth and manufacture, which may be imported into any of the
said States, from any foreign part, island, or plantation, except
240 HAMILTON'S WORKS. [JET. 26.
arms, ammunition, clothing, and other articles imported on ac
count of the United States, or any of them, and except wool-
cards, cotton-cards, and wire for making them, and also except
the articles hereinafter enumerated, the duty on which shall be
regulated according to the specified rates thereunto annexed.
(Here the duties inserted in the report, to which it was a substi
tute, were enumerated.)
Also, a duty of five per cent, ad valorem on all prizes and
prize goods condemned in the Court of Admiralty of any of
these States as lawful prize.
A land tax, at the rate of a nineteenth of a dollar for every
hundred acres of located and surveyed land ; a house tax at the
general rate of half a dollar for each dwelling-house (cottages
excepted), and at the additional rate of two and a half per cent.
on whatever sum the rent of the said house may exceed twenty
dollars, to be calculated on the actual rent when the house is
rented, and when in the occupancy of the owner, on an ap
praised rent by commisioners, under oath, appointed by the
State once in years. The lot and its appurtenances in towns
and in the county, the out-houses, and garden and orchard, to be
comprehended with the dwelling-house.
The duties on imports to pass to the general benefit of the
United States, without credit for the proceeds to any particular
State ; but the product of the land and house taxes to be credit
ed to each State in which it shall arise. The said funds to con
tinue till the principal of the debt due by the United States, at
the termination of the present war, shall be finally discharged.
Resolved, That an estimate be transmitted to each State of the
amount of the public debt, as far as the same can be now ascer
tained, and that Congress will inviolably adhere to their resolu
tions of the sixteenth day of December .last respecting the appro
priation of any funds which might be granted, and the annual
transmission of the state of the public debt, and the proceeds and
disposition of the said funds, by which all doubts and appre
hensions respecting the perpetuity of the public debt, may be
effectually removed.
. 26.] RESOLUTIONS IN CONGRESS. 241
NUMBERS BASIS OF TAXATION,
Passed April 1, 1783.
Resolved, That as a more convenient and certain rule of ascer
taining the proportions to be supplied by the States respectively
to the common treasury, the following alteration in the articles
of confederation and perpetual union between these States be,
and the same is hereby agreed to in Congress ; and the several
States are advised to authorize their respective delegates to
subscribe and ratify the same, as part of the said instrument of
union, in the words following, to wit :
So much of the 8th of the articles of confederation and perpe
tual union between the thirteen States of America, as is con
tained in the words following, to wit, " All charges of war, and
all other expenses that shall be incurred for the common defence
or general welfare, and allowed by the United States in Congress
assembled, shall be defrayed out of a common treasury, which
shall be supplied by the several States in proportion to the value
of all land within each State, granted to or surveyed by any
person, as such land, and the buildings and improvements thereon,
shall be estimated, according to such mode as the United States
in Congress assembled shall, from time to time 7 direct and ap
point," is hereby revoked, and made void; and in place thereof,
it is declared and concluded, the same having been agreed to in
a Congress of the United States, that all charges of war, and all
other expenses that have been, or shall be incurred for the com
mon defence or general welfare, and allowed by the United States
in Congress assembled, except so far as shall be otherwise provi
ded for, shall be defrayed out of a common treasury, which shall
be supplied by the several States in proportion to the whole
number of white and other free citizens and inhabitants of every
age, sex, and condition, including those bound to servitude for a
term of years, and three-fifths of all other persons not compre
hended in the foregoing description, except Indians not paying
taxes, in each State ; which number shall be triennially taken
and transmitted to the United States in Congress assembled^
in such mode as they shall direct and appoint.