CHAPTER LXI.

THE length of the debate on the proposed discrimination of duties caused a postponement of the discussion on the Finances, until the nineteenth of May, when the bill making provision for the Debt was again considered.

Early in this renewed debate, and as it would seem, with a view to defeat the whole Funding system, a motion was made to expunge the section which contained a specific provision for the current public service.

This motion was strongly opposed on the ground, that it struck at the principle of the bill, which contemplated a sacred appropriation for the Public creditors, any violation of which would defeat the whole object in view. It was rejected by a large vote. The clause authorizing a loan to be made by the Secretary of the Treasury, was so modified, on the motion of Madison, as to confide that trust to the President; and a proposition for such a modification of this clause as that the power to borrow, should devolve upon the President, agreeably to the Constitution, and not by Law, was rejected. He was also, by an amendment to the bill, to direct the application of the loan to the several objects, for which it was to be effected. A clause was inserted to fund the continental bills of credit, at the rate of one hundred dollars for one specie dollar. The exchangeable rate per acre of the Western Land was

raised from twenty to thirty cents, and a proposition, to fund the interest accruing to non-subscribers, was negatived.

On reading the twelfth section of the bill, which provided for the appointment of Commissioners of Loans in each State-a motion was made by Gerry, to insert a clause for the Assumption of the State Debts. In support of this amendment, he alleged, as one ground, that the observations of Madison had not been made until the moment previous to their adjournment, and therefore could not be replied to; that it appeared to several members of the House, that his arguments were unfounded, and required not only investigation, but contradiction. Since which time, documents had been received to show the relative exertions of the several States from which the arguments for the assumption would derive new force, if any additional force was wanting.

A very animated debate arose upon this motion. Its opponents insisted, that the Funding bill should be completed without a provision for the State Debts. Its friends objected, that if that bill was completed without such provision, all hopes of the Assumption would be at an end.

It was considered by the Secretary of the Treasury, as an essential part of his plan. Some of the States would be wholly unable to discharge their debts, and others could not do it without burthening the people with very oppressive Taxes.

The opponents of the Assumption had been repeatedly called upon to give their views upon this subject, and to indicate the funds they intended to appropriate to this object. But they had been called upon in vain. They did not disclose what part of the funds appropriated by the States they meant to invade. To separate these subjects, would be to form two Funding systems, and to render

that intricate and perplexed, which might be simple and intelligible.

Fitzsimmons objected to connecting the assumption with the present bill, and it was resolved, that the committee should rise and report progress. The committee rose, but before the Chairman could make his Report, it was moved, in the House, that he should report particularly, how far the committee had proceeded in the bill; and that it should be discharged from any further consideration of it. This motion was vehemently urged, and as warmly opposed; Boudinot, strenuously enlarging on the impropriety of precluding the advocates of the assumption from replying to the observations of Madison, and of preventing a free and full discussion. Sedgwick, also alluding to them, remarked, that, "the gentleman from Virginia, at the end of eight weeks debate on this subject, during which time, he had remained silent, had come forward in a speech which had been given to the public, and he was informed, with great accuracy. That by means of discharging, immediately afterwards, the committee from the further consideration of this subject, no answer had been given to it-that this speech, which he feared was designed to make an unfair and undue impression on the public mind, was a performance, in his opinion, composed of unfounded facts-monstrous premises, and inconclusive deductions. It would well become the magnanimity of the gentleman, and the partiality of his friends, to permit a full examination of his argument, that it might justly be determined, how far it deserved the character he imputed

to it."

This earnest appeal was not to be resisted; and the motion to discharge the committee from the further consideration of the assumption, was withdrawn.

The discussion of Gerry's proposed amendment to the

Twelfth Section of the bill was resumed, the following day, when Ames, Boudinot, and Sherman replied to Madison at much length.

A motion was then made, that the committee should rise, to which an amendment was offered, that the Chairman report, that they had gone through the discussion of the twelve first Sections of the Funding bill, and that they be discharged from its further consideration. After a warm debate upon this amendment, it was carried in the affirmative; but the question on the discharge of the committee was prevented being taken in the House, by a motion for adjournment.

An unsuccessful

The succeeding day, the House took up the report of the committee, and the motion to discharge the committee from its further consideration passed. The amendments proposed to it were then agreed to. effort was made to strike out the provision for the Indents; and a paragraph was added, which gave to the non-subscribing creditors, interest to the end of the year seventeen hundred and ninety.

The Bill, thus amended, was ordered to a third reading, on the twenty-first of May.

A series of resolutions had been introduced by Boudinot, providing for the assumption of the State Debts, similar, in some respects, to the rejected proposition of Gerry. These were laid on the table, and a resolution was offered by Fitzsimmons, who, it will be recollected, had objected to the connection of the assumption with the Funding bill, that Congress will meet and hold their next session at PHILADELPHIA !

An attempt was again made to induce the consideration of the resolutions for the assumption, when, after a motion to postpone this subject beyond the session, the seventh of June was appointed for its consideration.

On the next day of the Legislative proceedings, a resolution was brought forward in the House, for the establishment of the future SEAT of GOVERNMENT. After much argument upon the propriety of proceeding in the Funding bill, which was the special order of the day, it was resolved, by a majority of five votes, to take up the question of RESIDENCE.

This subject had been considered during the previous Session. On the fifteenth of May, eighty-nine, Virginia presented to Congress, an offer to cede a district, ten miles square, situate anywhere Congress might select, within that State, as the seat of the General Government. A similar offer was made, the next day, by Maryland. Resolutions passed, after much controversy, to establish the seat of Government on the banks of the Susquehanna.

After various efforts to select New York and Baltimore, a resolution prevailed in favor of Philadelphia. This question, which had intermingled itself with others, being thus disposed of, the Funding bill was, on the second of June, completed and passed.

Some members of the party, who had opposed the assumption, having committed themselves to provide for the settlement of the accounts between the United States, and the individual States, the bill which had been framed for this object, was brought under consideration, and progress was made in it. Upon being reported to the House, Madison, though he had previously urged a liqui dation of the accounts, moved that the Committee should be discharged from any further consideration of it. It was, nevertheless, acted upon; was afterwards recommitted to a select committee; and, with several amendments, ultimately became a law.

The bill making provision for the Debt, was immedi