"The only possible way, then, of making them contribute
to the general expense in an equal proportion to their means,
is by general taxes imposed under continental authority.
to the general expense in an equal proportion to their means,
is by general taxes imposed under continental authority.
Hamilton - 1834 - Life on Hamilton - v2
Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl.
handle.
net/2027/uva.
x000275492 Public Domain, Google-digitized / http://www.
hathitrust.
org/access_use#pd-google
? HAMILTON.
43
exceeding eight hundred thousand dollars; while to feed,
clothe, and pay the army, required nearly six millions.
The whole sum within the command of congress, was
and Mr. Fitzsimmons justified the expediency of retaining it, in order to
justify congress the more explicitly in failing to fulfil their engagements to
the public creditors. Mr. Wilson and Madison proposed to strike out the
words ' appropriated by France,' and substitute the words ' applied by con-
gress to the immediate and necessary support of the army. ' This proposi-
tion would have been readily approved, had it not appeared on examination,
that in one or two small instances, and particularly in the payment of the
balance due to Arthur Lee, Esq. , other applications had been made of the aid
in question. The report was finally recommitted. "
This is no less than a charge of stating an untruth, and justifying it on
the score of expediency, on the part of two gentlemen whose probity never
was suspected, and for the motive of justifying congress with the public
creditors. This minute is of the 24th of January. It speaks of a late report
made to congress. The journal of that date does not refer to this report, but
on the thirtieth of January it is given in full, as having been " agreed to as
follows. " A reason assigned by Madison why the clause thus objected to
was not stricken out, is, that there had been a diversion of the money in one
or two small instances. He adds, that it was recommitted. But if these
instances prevented this clause being expunged, if it had been originally in
the report, it must necessarily have been retained. On referring to this re-
port, " agreed to" by congress, no such clause can be found. Its language
is--" But according to the best accounts which can be obtained, the antici-
pations made in the funds for the year 1782 amounted, at the close of 1781,
to four millions of livres. For the service of that year, his most christian
majesty lent the United States 6,000,000 livres. "--4 J. C. 155.
But if it be assumed that the clause was there originally, and was
stricken out, the charge is unsupported. The journals, page 202, contain
the papers which Madison as chairman of a committee reported, and refer-
red to in an address of which he was the author. One of these papers, No.
IV. , is a letter from the French ambassador at Philadelphia, dated March
15, 1783. It commences thus--" Sir: I have the satisfaction to inform you,
that his majesty procures for the United States a loan of six millions, to be
employed in the war department during the course of the current year. "
"The Count de Vergennes informs me, sir, that the six millions are lent to
the United States in the same manner, and under the same conditions, with
the sum which was lent last year. " "I have had the honour to inform you,
air, that this money is lent to the United States to enable them to carry on
the war. The wisdom of congress will determine according to circum-
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 44
THE LIFE OF
little more than a million and a half of dollars; a sum insuf-
ficient to pay the interest then due on the public debts.
"Yet," Hamilton remarked, " notwithstanding the discour-
aging obstacles they have hitherto encountered, they
conceive it a duty to themselves and to their constituents,
to persevere in their intentions to renew and extend their
endeavours to procure the establishment of revenues equal
to the purpose of funding all the debts of the United States;
and they think it proper to inform the assembly of Penn-
sylvania, that this subject is now before them under so-
lemn deliberation, and that her ready and early compliance
with the recommendation of (an impost) assures congress
of the vigorous support of that state. "
Soon after this pledge was given, a report as to the
mode of valuing the lands was taken into consideration.
This report proposed that the states should pass laws
forming themselves into districts, and should appoint com-
missioners to estimate the value of their lands; which
estimate, if approved by congress, was to determine the
requisitions to be made.
Convinced that no efficient plan would be adopted from
the predominance of state jealousies, and regarding the
contemplated mode as involving inequalities and contro-
versy, Hamilton moved to postpone the valuation. He
assigned as reasons, " the great expense of it, to which the
finances were then inadequate, and that in a matter so
stances on the manner of effecting that important object, and of compelling
the enemy, by joint efforts, to conclude a solid and permanent peace. "
That such was the sole object of this loan made by France, then under
great pecuniary pressure, is obvious. Already a creditor for a large amount,
it cannot be supposed that France would have made an additional loan to
the United States to pay their domestic creditors. A declaration such as
that which Madison represents Wilson as concurring with him in endeavour-
ing to substitute, would have been to declare that congress had violated their
pledge to France in applying this loan to the immediate use of the army--
the express use for which the loan was granted.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
45
fundamental in the confederation, it was essential to the
harmony and welfare of the United States, that it should
be carried into effect with great care, circumspection, and
impartiality, and that a short delay would be much less
pernicious than a defective execution. "
After thus urging that the attempt should be deferred,
he pledged congress to proceed to an accurate valuation
of the land by commissioners, appointed by them, and act-
ing under their authority, upon principles uniform through-
out the United States; that when this valuation is com-
plete, congress will finally adjust the accounts of the
United States with the states separately, agreeably to that
standard, making equitable abatements to such as have
been more immediate sufferers by the war: that in the
mean time they would adhere, in the temporary adjust-
ment of these accounts, to the proportions established by
the requisitions of congress; and with a view to an eventual
plan, he requested the states to transmit to them the valua-
tions they had made, with an explanation of the principles
on which they had been made.
This motion, though supported by a majority of mem-
bers, was lost in a vote by states, and the plan reported
was rejected.
The course of their proceedings gave small prospect
of any salutary results. The officers were urgently press-
ing their claims. The justice of those claims was not to
be questioned. The terms of commutation offered by the
army, could not be excepted to. The claimants were
suffering. They had received nothing but assurances, and
they had reason to believe that, on the part of many, those
assurances were deceptive. There was danger. Hamilton
felt it, and after due reflection, he unbosomed his appre-
hensions to the commander-in-chief.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 46
THE LIFE OF
HAMILTON TO WASHINGTON.
Philadelphia, Feb. 7,1783.
SIR,
Flattering myself that your knowledge of me will in-
duce you to receive the observations I make as dictated
by a regard to the public good, I take the liberty to sug-
gest to you my ideas on some matters of delicacy and im-
portance. I view the present juncture as a very interest-
ing one. I need not observe how far the temper and
situation of the army make it so. The state of our finan-
ces was perhaps never more critical. I am under injunc-
tions which will not permit me to disclose some facts that
would at once demonstrate this position, but I think it
probable you will be possessed of them through another
channel. * It is however certain that there has scarcely
been a period of the revolution which called more for
wisdom and decision in congress. Unfortunately for us,
we are a body not governed by reason or foresight, but
by circumstances. It is probable we shall not take the
proper measures; and if we do not, a few months may
open an embarrassing scene. This will be the case, whether
we have peace or a continuance of the war.
If the war continues, it would seem that the army must
in June subsist itself to defend the country; if peace should
take place, it will subsist itself to procure justice to itself.
It appears to be a prevailing opinion in the army, that the
disposition to recompense their services will cease with
the necessity for them, and that if they once lay down
their arms, they part with the means of obtaining justice.
It is to be lamented that appearances afford too much
ground for their distrust.
* Probably from the superintendent of finance.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON. 47
It becomes a serious inquiry, What is the true line of
policy? The claims of the army, urged with moderation,
but with firmness, may operate on those weak minds
which are influenced by their apprehensions more than
by their judgments, so as to produce a concurrence in the
measures which the exigencies of affairs demand. They
may add weight to the applications of congress to the
several states. So far a useful turn may be given to
them. But the difficulty will be to keep a complaining
and suffering army within the bounds of moderation.
This your excellency's influence must effect. In order
to it, it will be advisable not to discountenance their en-
deavours to procure redress, but rather, by the intervention
of confidential and prudent persons, to take the direction
of them. This, however, must not appear. It is of mo-
ment to the public tranquillity that your excellency should
preserve the confidence of the army, without losing that
of the people. This will enable you in case of extremity
to guide the torrent, and to bring order, perhaps even
good, out of confusion. 'Tis a part that requires address,
but 'tis one which your own situation as well as the welfare
of the community points out.
I will not conceal from your excellency a truth which it
is necessary you should know. An idea is propagated in
the army, that delicacy carried to an extreme prevents
your espousing its interests with sufficient warmth. The
falsehood of this opinion no one can be better acquainted
with than myself; but it is not the less mischievous for be-
ing false. Its tendency is to impair that influence which
you may exert with advantage, should any commotions
unhappily ensue, to moderate the pretensions of the army,
and make their conduct correspond with their duty.
The great desideratum at present is the establishment
of general funds, which alone can do justice to the credi-
tors of the United States, (of whom the army forms the
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 48
THE LIFE OF
most meritorious class,) restore public credit, and supply
the future wants of government. This is the object of all
men of sense; in this the influence of the army, properly
directed, may co-operate.
The intimations I have thrown out, will suffice to give
your excellency a proper conception of my sentiments:
you will judge of their reasonableness or fallacy; but I
persuade myself you will do justice to my motives.
General Knox has the confidence of the army, and is a
man of sense; I think he may be safely made use of.
Situated as I am, your exellency will feel the confidential
nature of these observations.
A few days after writing this letter,* Hamilton proposed
a resolution, which was passed, that "the commander-in-
chief be informed that congress are always happy to receive
his sentiments on the political and military affairs of these
states, the utility of which they have on so many occasions
experienced. " It also stated "the probability of peace," and
directed the secretary of foreign affairs " to make a confi-
dential communication to him of the state of the negotia-
tions for peace when the last advices were received. "
The day after the date of this letter, the discussion of
the mode of ascertaining the quotas of the states was re-
sumed. Various propositions were made, at different
times, until the seventeenth of February, when a plan was
adopted, five members dissenting. f
By this plan, the legislature of each state was required
to take the most effectual measures to obtain a just and
accurate account of the quantity of its land granted or
surveyed, of the number of buildings, distinguishing dwell-
ings from others, and of the number of white and black
inhabitants. These returns were to be examined by a
? Feb. 20. t Hamilton, Madison, Carroll, Floyd, Leo.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? II A M I I. T O N.
40
grand committee of congress, nine of whom concurring,
were to make an estimate of the value of the granted or
surveyed lands, and of the buildings or improvements, to
be approved or rejected by that body. This estimate was
to be the rule of apportioning among the states the quotas
to be paid into the continental treasury, and also of ad-
justing all accounts between the United States and the
individual states for previous supplies.
As this rule, if strictly adhered to, would charge the
states, which had been the theatres of war, for past sup-
plies according to their future ability, when in an entire
condition, and might operate very unequally upon New-
York, it has been seen that Hamilton embraced in his
resolution, for an eventual valuation, a recommendation
that the states should vest congress with a power of mak-
ing equitable abatements in favour of such as had been
more immediate sufferers by the war.
This motion was in accordance with a recommenda-
tion of the previous congress, that in a final settlement
of the expenses of the war to be borne by each state,
they should be authorized to assume and adopt such prin-
ciples, as from the particular circumstances of the several
states at different periods might appear just and equitable.
It was committed, but as Virginia had disagreed to that
recommendation, a committee reported against it. Ham-
ilton subsequently again brought forward this proposition
in a different form. It was a declaratory resolution by
congress that they would make such abatements.
Though admitted to be within the spirit of the con-
federation, a postponement was moved; but with a view
to defeat it, it was considered and rejected. *
* In vol. 1, page 362, Madison Papers, Madison represents himself as be-
ing in favour of " the abatements proposed by Hamilton"--and in page 418,
as offering an amendment to Hamilton's resolution, for which his reasons are
7
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 50
THE LIFE OF
The importance of this question to the interests of the
community he represented, and the course which he had
taken in reference to it, induced Hamilton to address a
letter* to the governor of New-York.
"I enclose," he said, " for the information of the legis-
lature, the proceedings upon it in different stages, by
which they will see the part I have acted. But as I was
ultimately left in a small minority, I think it my duty to
explain the motives upon which my opposition to the
general sense of the house was grounded. I am of opin-
ion, that the article of confederation itself was ill-judged.
In the first place, I do not believe there is any general
representative of the wealth of a nation, the criterion of
its ability to pay taxes. There are only two that can be
thought of--land and numbers. The revenues of the
United Provinces, general and particular, were computed
before the present war at more than half as much as those
of Great Britain. The extent of their territory is not one
fourth part as great; their population, less than a third.
. ' The comparison is still more striking between those
provinces and the Swiss cantons, in both of which, extent
of territory and population are nearly the same; and yet,
the revenues of the former are five times as large as those
of the latter; nor could any efforts of taxation bring them
to any thing like a level.
"In both cases, the advantages for agriculture are superior
in those countries which afford least revenue in proportion.
I have selected these examples because they are most famil-
iar; but whoever will extend the comparison between the
different nations of the world, will perceive that the position
I have laid down is supported by universal experience.
stated. On the 4th of March, he voted, in common with all the other Vir.
ginia members, first to postpone the consideration of this resolution, and
then to reject it. --i J. C. 170.
<< February 24, 1783.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
51
"The truth is, the ability of a country to pay taxes, de-
pends on infinite combinations of physical and moral
causes, which can never be accommodated to any general
rule; climate, soil, productions, advantages for navigation,
government, genius of the people, progress of arts, and
industry, and an endless variety of circumstances. The
diversities are sufficiently great in these states to make an
infinite difference in their relative wealth, the proportion of
which can never be found by any common measure whatever.
"The only possible way, then, of making them contribute
to the general expense in an equal proportion to their means,
is by general taxes imposed under continental authority.
"In this mode, there would no doubt be inequalities, and
for a considerable time material ones; but experience,
and the constant operation of a general interest, which, by
the very collision of particular interests, must in the main
prevail in a continental deliberative body, would at length
correct those inequalities, and balance one tax that should
bear hard upon one state, by another that should have a
proportional weight in others. This idea, however, was
not at the period of framing the confederation, and is not
yet agreeable to the spirit of the times. To futurity we
must leave the discovery how far this spirit is wise or
foolish. One thing, only is now certain, that congress,
having the discretionary power of determining the quantum
of money to be paid into the general treasury towards de-
fraying the common expenses, have in effect the constitu-
tional power of general taxation. The restraints upon
the exercise of this power amount to the perpetuating a
rule for fixing the proportions, which must of necessity pro-
duce inequality, and by refusing the federal government a
power of specific taxation and of collection, without substitu-
ting any other adequate means of coercion, do in fact leave
the compliance with continental requisitions to the good-
will of the respective states. Inequality is inherent in the
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 52
THE LIFE OP
theory of the confederation; and in the practice, that ine-
quality must increase in proportion to the honesty or dis-
honesty of the component parts. This vice will either in its
consequences reform the federal constitution, or dissolve it.
"If a general standard must be fixed, numbers were pre-
ferable to land. Modes might be devised to ascertain the
former with tolerable precision; but I am persuaded, the
experiment will prove that the value of all the land, in
each state, cannot be ascertained with any thing like ex-
actness. Both these measures have the common disad-
vantage of being no equal representative of the wealth
of the people; but one is much more simple, definite, and
certain than the other.
"I have indulged myself in these remarks, to show that
I have little expectation of success from any mode of car-
rying the article in question into execution upon equitable
principles. I owe it, however, to myself to declare, that
my opposition did not arise from this source. The con-
federation has pointed out this mode, and though I would
heartily join in a representation of the difficulties (of which
every man of sense must be sensible on examination) that
occur in the execution of the plan, to induce the states to
consent to a change; yet as this was not the disposition
of a majority of congress, I would have assented to any
mode of attempting it, which was not either obviously
mischievous or impracticable.
"The first plan proposed, as your excellency will see,
was an actual valuation of each state by itself. This was
evidently making the interested party judge in his own
cause. Those who have seen the operation of this prin-
ciple between the counties in the same state, and the dis-
tricts in the same county, cannot doubt a moment that the
valuations on this plan would have been altogether un-
equal and unjust. Without supposing more liberality in
one state than another, the degree of care, judgment, and
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
53
method, employed in the execution, would alone make
extreme differences in the results.
"This mode had also the further inconvenience of
awakening all the jealousies of the several states against
each other. Each would suspect that its neighbour had
favoured itself, whether the partiality appeared or not. It
would be impossible to silence these distrusts, and to make
the states sit down satisfied with the justice of each other.
Every new requisition for money, would be a new signal
for discussion and clamour, and the seeds of disunion,
already sown too thick, would be not a little multiplied.
"To guard against these evils, the plan proposes a revi-
sion by congress; but it is easy to be seen, that such a
power could not be exercised. Should any states return
defective valuations, it would be difficult to find sufficient
evidence to determine them such; to alter would not be
admissible, for congress could have no data which could
be presumed equivalent to those which must have gov-
erned the judgment of commissioners under oath, on an
actual view of the premises. To do either this or to re-
ject, would be an impeachment of the honour of the states,
which it is not probable there would be decision enough
to hazard, and which, if done, could not fail to excite
serious disgusts. There is a wide difference between a
single state exercising such a power over its own counties,
and a confederated government exercising it over sovereign
states which compose the confederacy. It might also
happen, that too many states would be interested in the
defective valuations, to leave a sufficient number willing
either to alter or to reject. These considerations pre-
vailed to prevent the plan being adopted by a majority.
"The last plan may be less mischievous than the first, but
it appears to me altogether ineffectual. The mere quan-
tity of land granted and surveyed, with the general species
of buildings upon them, can certainly be no criteria to
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 54 THE LIFE OF
determine their value. The plan does not even distinguish
the improved from the unimproved land, the qualities of
soil, or degrees of improvement; the qualities of the
houses and other buildings are entirely omitted. These,
it seems, are to be judged of by the commissioners to be
appointed by each state ; but I am unable to conceive how
any commissioner can form the least estimate of these
circumstances with respect even to his own state, much
less with respect to other states, which would be neces-
sary to establish a just relative value. If even there was
a distinction of improved from unimproved land, by sup-
posing an intrinsic value in the land, and adopting general
rates, something nearer the truth might be attained; but
it must now be all conjecture and uncertainty.
"The number of inhabitants, distinguishing white from
black, is called for. This is not only totally foreign to the
confederation, but can answer no reasonable purpose. It
has been said that the proportion of numbers may guide
and correct the estimates; an assertion purely verbal, and
which has no meaning. A judgment must first be formed
of the value of the lands upon some principle. If this
should be altered by the proportion of numbers, it is plain,
numbers would be substituted to land.
"Another objection to this plan is, that it lets in the par-
ticular interests of the states, to operate in the returns of
the quantities of land, number of buildings, and number
of inhabitants. But the principle of this objection applies
less forcibly here, than against the former plan.
"Whoever will consider the plain import of the eighth
article of the confederation, must be convinced that it in-
tended an actual and specific valuation of land, buildings,
and improvements--not a mere general estimate, according
to the present plan. While we insist, therefore, upon ad-
hering to the confederation, we should do it in reality, not
barely in appearance.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
55
"Many of those who voted for this scheme, had as bad
an opinion of it as myself, but they were induced to ac-
cede to it by a persuasion that some plan for the purpose
was expected by the states; and that none better, in the
present circumstances of the country, could be fallen upon.
"A leading rule which I have laid down for the direc-
tion of my conduct, is this:--that while I would have a just
deference for the expectations of the states, I would never
consent to amuse them by attempts which must either
fail in the execution, or be productive of evil. I would
rather incur the negative inconveniences of delay, than
the positive mischiefs of injudicious expedients. A con-
trary conduct serves to destroy confidence in the govern-
ment, the greatest misfortune that can befall a nation.
There should, in my opinion, be a character of wisdom
and efficiency in all the measures of the fcederal council, the
opposite of a spirit of temporizing concession. I would
have sufficient reliance on the judgments of the several
states, to hope that good reasons for not attempting a
thing, would be more satisfactory to them than precipitate
and fruitless attempts.
"My idea is, that taking it for granted the states will ex-
pect an experiment on the principle of the confederation,
the best plan* will be to make it by commissioners, ap-
pointed by congress and acting under their authority.
* In 1 Mad. 318, Madison observes--" Mr. Hamilton concurred in" (his)
"views, and wished the valuation to be taken up, in order that its impraeli.
cability and futility might become manifest. " This statement is at variance
with these facts. It has been seen that on the 6th January, 1783, Hamilton
offered a resolution for "an eventual valuation. " Here again, he urges an
adherence to the confederation, as intending " an actual and specific valua-
tion;" and in notes for a speech, endorsed on a letter from Clinton, respect-
ing Vermont, he says--" We are not to suppose that those who made the
confederation, did not consider various plans. "--"The states do not pay
taxes, because we do not proceed according to the confederation. "--" Oo
according to confederation. "
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 50
THE LIFE OF
Congress might, in the first instance, appoint three or more
of the principal characters in each state for probity and
abilities, with a power to nominate other commissioners
under them in each subdivision of the state. General
principles might be laid down for the regulation of their
conduct, by which uniformity in the manner of conduct-
ing the business would obtain. Sanctions of such solem-
nity might be prescribed, and such notoriety given to every
part of the transaction, that the commissioners could
neither be careless nor partial without a sacrifice of repu-
tation.
"To carry this plan, however, into effect with sufficient
care and accuracy, would be a work both of time and
expense; and, unfortunately, we are so pressed to find
money for calls of immediate necessity, that we could not
at present undertake a measure which would require so
large a sum.
"To me it appears evident, that every part of a business
which is of so important and universal concern, should be
transacted on uniform principles, and under the direction
of that body which has a common interest. In general, I
regard the present moment, probably the dawn of peace,
as peculiarly critical; and the measures which it shall pro-
duce, as of great importance to the future welfare of these
states. I am, therefore, scrupulously cautious of assenting
to such as appear to me founded on false principles.
"Your excellency will observe that the valuation of the
lands is to be the standard for adjusting the accounts for
past supplies, between the United States and the particular
states. This, if adhered to without allowance for the cir-
cumstances of those states which have been more imme-
diately the theatre of the war, will charge our state for
the past according to its future ability, when in an entire
condition, if the valuation should be made after we regain
possession of the parts of the state now in the power of
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
57
the enemy. I have, therefore, introduced a motion for re-
peating the call in a more earnest manner upon the states
to vest congress with a power of making equitable abate-
ments, agreeably to the spirit of the resolution of the
twentieth of February last, which few of the states have
complied with. This motion has been committed. I
know not what will be its fate.
'* Notwithstanding the opposition I have given, now the
matter has been decided in congress, I hope the state will
cheerfully comply with what is required. Unless each
state is governed by this principle, there is an end of the
union. Every state will no doubt have a right, in this
case, to accompany its compliance with such remarks as
it may think proper.
"After the plan was agreed upon, it was committed to
be put into form; and when reported, instead of commis-
sioners, an alteration was carried for making the estimate
by a grand committee. "
"February twenty-seventh. --Mr. Morris has signified to
congress his resolution to resign by the first of June, if
adequate funds are not by that time provided. This will
be a severe stroke to our affairs. No man fit for the
office will be willing to supply his place for the very rea-
sons he resigns. 'Tis happy for us we have reason to
expect a peace. I am sorry that by different accounts it
appears not to have been concluded late in December. "
While this subject was under consideration, the question
of providing for the public debt was again brought for-
ward. The temper of congress led Hamilton to doubt
whether its policy would be such as the interests of the
nation demanded. He believed that the influence of pub-
lic opinion might be beneficially exerted, and he resolved
to endeavour to cause it to be felt.
It is known that the deliberations of the congress of the
confederation were secret. During the earlier periods of
8
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 58
THE LIFE OP
the revolution, this precaution in an assembly exercising
not only legislative but executive powers, was absolutely
necessary. But this necessity was felt by discerning men
not to be the least of the evils attending a government by
a single body. The salutary control of public sentiment
was not felt, intrigues often prevailed over the maturest
counsels, and the highest talent mourned the absence of
that great support--the warm sympathies of the people.
Obvious as the consequences of this secrecy were, no at-
tempt had been made, during all the long period of the
revolution, to break through it.
It remained for Hamilton to make the first effort in
favour of open debate. He saw the congress sinking
rapidly in public esteem, its recommendations disregarded,
its resolves disobeyed, its counsels misrepresented; the
fears of the timid, stimulated by the arts of the factious,
viewing it as the theatre of cabals, hostile to liberty, when
in fact, the jealousies of particular states prevented the
exercise of those powers which were essential to the chief
object of its institution--the common defence. He saw
these influences at this moment unusually active, while the
clamours of the public creditors and of the army were
heard at their doors demanding an audience.
He had resorted in vain to private solicitation; in vain
had he exerted all the powers of eloquent persuasion to
induce a compliance with their just demands. The stern
prejudices of New-Hampshire could not be overcome;
Connecticut was not to be soothed. By those states it
was intended that a most solemn pledge for a most sacred
debt, the price of their independence, should be deliber-
ately violated.
On the eighteenth of February, the day appointed to
consider the proposition to raise substantial funds, a call,
which Hamilton seconded, for an estimate of the principal
of the liquidated and unliquidated debt, was followed by
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON. 59
a motion, in pursuance of instructions from Connecticut,
asking an account of the names and titles of all civil and
diplomatic officers, and a statement of the amount of all
grants for the pay, half-pay, and gratuities, for their past
services.
Hamilton felt that the honour of the nation was at stake,
and that it was a question for the nation to decide. He
proposed the following resolution:--" Whereas, it is the
desire of congress that the motives of their deliberations
and measures, (as far as they can be disclosed consistently
with the public safety,) should be fully known to their
constituents--therefore, resolved, That when the establish-
ment 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. "
This resolution was postponed almost without a reply,
for the only answer given to so important a proposition,
was the remark of the delegate from Rhode Island, as to
whom he had reported a vote of censure, " that if the
member wishes to display his eloquence, he should address
the people from the balcony. "
Immediately after the defeat of this proposal, a report
was made to the house by the grand committee, which
contained a modification of Hamilton's resolution so as
to declare the necessity of permanent and adequate funds,
but omitted the provision that they should be collected by
congress. In this form it passed by the votes of seven
states, and, on the twenty-first of February, was referred
to a special committee. *
Congress nowf resumed the consideration of the claims
of the officers. The committee of which Hamilton was
a member, reported that the officers then in service, and
who should continue until the end of the war, should
* Fitzsimmons, Gorham, Hamilton, Madison, Rutledge. t Feb. 25.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 60 THE LIFE OF
receive in commutation of their half-pay, full pay for years, either in money, or securities at interest, giv-
ing to the lines of the respective states, and not to the
individual officers, the option of accepting such commuta-
tion. This provision was extended to all officers who had
retired on a promise of half-pay, and to the widows of
such as should die in the service.
A motion was made to postpone this report, with a
view to substitute a provision by the states, which was
rejected. * Hamilton then moved to. fill the blank with
five and a half years' pay, as nearer to an equivalent of
full pay, on the valuations of lives; but this motion failed,
and the commutation was established at five years' full
pay. The subject was resumed, and on the 28th of Feb-
ruary seven states voted in favour of it. It being a ques-
tion which required, by the confederation, the concur-
rence of nine states, the provision was not made.
Soon after this vote, Hamilton received a reply to his
letter to Washington, in which will be perceived the con-
currence of the commander-in-chief in the views he had
suggested as to the course to be pursued, though Washing-
ton appears not to have entertained equal apprehensions
of the impending commotions in the army.
Newburgh, 4th March, 1783.
DEAR SIR,
I have received your favour of February; I thank you
for the information and observations it has conveyed
to me. I shall always think myself obliged by a free com-
munication of sentiments, and have often thought, (but
suppose I thought wrong, as it did not accord with the
practice of congress,) that the public interest might be
? All of the New England members, one from New Jersey, and one from
Virginia, supported this proposition.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
?
? HAMILTON.
43
exceeding eight hundred thousand dollars; while to feed,
clothe, and pay the army, required nearly six millions.
The whole sum within the command of congress, was
and Mr. Fitzsimmons justified the expediency of retaining it, in order to
justify congress the more explicitly in failing to fulfil their engagements to
the public creditors. Mr. Wilson and Madison proposed to strike out the
words ' appropriated by France,' and substitute the words ' applied by con-
gress to the immediate and necessary support of the army. ' This proposi-
tion would have been readily approved, had it not appeared on examination,
that in one or two small instances, and particularly in the payment of the
balance due to Arthur Lee, Esq. , other applications had been made of the aid
in question. The report was finally recommitted. "
This is no less than a charge of stating an untruth, and justifying it on
the score of expediency, on the part of two gentlemen whose probity never
was suspected, and for the motive of justifying congress with the public
creditors. This minute is of the 24th of January. It speaks of a late report
made to congress. The journal of that date does not refer to this report, but
on the thirtieth of January it is given in full, as having been " agreed to as
follows. " A reason assigned by Madison why the clause thus objected to
was not stricken out, is, that there had been a diversion of the money in one
or two small instances. He adds, that it was recommitted. But if these
instances prevented this clause being expunged, if it had been originally in
the report, it must necessarily have been retained. On referring to this re-
port, " agreed to" by congress, no such clause can be found. Its language
is--" But according to the best accounts which can be obtained, the antici-
pations made in the funds for the year 1782 amounted, at the close of 1781,
to four millions of livres. For the service of that year, his most christian
majesty lent the United States 6,000,000 livres. "--4 J. C. 155.
But if it be assumed that the clause was there originally, and was
stricken out, the charge is unsupported. The journals, page 202, contain
the papers which Madison as chairman of a committee reported, and refer-
red to in an address of which he was the author. One of these papers, No.
IV. , is a letter from the French ambassador at Philadelphia, dated March
15, 1783. It commences thus--" Sir: I have the satisfaction to inform you,
that his majesty procures for the United States a loan of six millions, to be
employed in the war department during the course of the current year. "
"The Count de Vergennes informs me, sir, that the six millions are lent to
the United States in the same manner, and under the same conditions, with
the sum which was lent last year. " "I have had the honour to inform you,
air, that this money is lent to the United States to enable them to carry on
the war. The wisdom of congress will determine according to circum-
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 44
THE LIFE OF
little more than a million and a half of dollars; a sum insuf-
ficient to pay the interest then due on the public debts.
"Yet," Hamilton remarked, " notwithstanding the discour-
aging obstacles they have hitherto encountered, they
conceive it a duty to themselves and to their constituents,
to persevere in their intentions to renew and extend their
endeavours to procure the establishment of revenues equal
to the purpose of funding all the debts of the United States;
and they think it proper to inform the assembly of Penn-
sylvania, that this subject is now before them under so-
lemn deliberation, and that her ready and early compliance
with the recommendation of (an impost) assures congress
of the vigorous support of that state. "
Soon after this pledge was given, a report as to the
mode of valuing the lands was taken into consideration.
This report proposed that the states should pass laws
forming themselves into districts, and should appoint com-
missioners to estimate the value of their lands; which
estimate, if approved by congress, was to determine the
requisitions to be made.
Convinced that no efficient plan would be adopted from
the predominance of state jealousies, and regarding the
contemplated mode as involving inequalities and contro-
versy, Hamilton moved to postpone the valuation. He
assigned as reasons, " the great expense of it, to which the
finances were then inadequate, and that in a matter so
stances on the manner of effecting that important object, and of compelling
the enemy, by joint efforts, to conclude a solid and permanent peace. "
That such was the sole object of this loan made by France, then under
great pecuniary pressure, is obvious. Already a creditor for a large amount,
it cannot be supposed that France would have made an additional loan to
the United States to pay their domestic creditors. A declaration such as
that which Madison represents Wilson as concurring with him in endeavour-
ing to substitute, would have been to declare that congress had violated their
pledge to France in applying this loan to the immediate use of the army--
the express use for which the loan was granted.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
45
fundamental in the confederation, it was essential to the
harmony and welfare of the United States, that it should
be carried into effect with great care, circumspection, and
impartiality, and that a short delay would be much less
pernicious than a defective execution. "
After thus urging that the attempt should be deferred,
he pledged congress to proceed to an accurate valuation
of the land by commissioners, appointed by them, and act-
ing under their authority, upon principles uniform through-
out the United States; that when this valuation is com-
plete, congress will finally adjust the accounts of the
United States with the states separately, agreeably to that
standard, making equitable abatements to such as have
been more immediate sufferers by the war: that in the
mean time they would adhere, in the temporary adjust-
ment of these accounts, to the proportions established by
the requisitions of congress; and with a view to an eventual
plan, he requested the states to transmit to them the valua-
tions they had made, with an explanation of the principles
on which they had been made.
This motion, though supported by a majority of mem-
bers, was lost in a vote by states, and the plan reported
was rejected.
The course of their proceedings gave small prospect
of any salutary results. The officers were urgently press-
ing their claims. The justice of those claims was not to
be questioned. The terms of commutation offered by the
army, could not be excepted to. The claimants were
suffering. They had received nothing but assurances, and
they had reason to believe that, on the part of many, those
assurances were deceptive. There was danger. Hamilton
felt it, and after due reflection, he unbosomed his appre-
hensions to the commander-in-chief.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 46
THE LIFE OF
HAMILTON TO WASHINGTON.
Philadelphia, Feb. 7,1783.
SIR,
Flattering myself that your knowledge of me will in-
duce you to receive the observations I make as dictated
by a regard to the public good, I take the liberty to sug-
gest to you my ideas on some matters of delicacy and im-
portance. I view the present juncture as a very interest-
ing one. I need not observe how far the temper and
situation of the army make it so. The state of our finan-
ces was perhaps never more critical. I am under injunc-
tions which will not permit me to disclose some facts that
would at once demonstrate this position, but I think it
probable you will be possessed of them through another
channel. * It is however certain that there has scarcely
been a period of the revolution which called more for
wisdom and decision in congress. Unfortunately for us,
we are a body not governed by reason or foresight, but
by circumstances. It is probable we shall not take the
proper measures; and if we do not, a few months may
open an embarrassing scene. This will be the case, whether
we have peace or a continuance of the war.
If the war continues, it would seem that the army must
in June subsist itself to defend the country; if peace should
take place, it will subsist itself to procure justice to itself.
It appears to be a prevailing opinion in the army, that the
disposition to recompense their services will cease with
the necessity for them, and that if they once lay down
their arms, they part with the means of obtaining justice.
It is to be lamented that appearances afford too much
ground for their distrust.
* Probably from the superintendent of finance.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON. 47
It becomes a serious inquiry, What is the true line of
policy? The claims of the army, urged with moderation,
but with firmness, may operate on those weak minds
which are influenced by their apprehensions more than
by their judgments, so as to produce a concurrence in the
measures which the exigencies of affairs demand. They
may add weight to the applications of congress to the
several states. So far a useful turn may be given to
them. But the difficulty will be to keep a complaining
and suffering army within the bounds of moderation.
This your excellency's influence must effect. In order
to it, it will be advisable not to discountenance their en-
deavours to procure redress, but rather, by the intervention
of confidential and prudent persons, to take the direction
of them. This, however, must not appear. It is of mo-
ment to the public tranquillity that your excellency should
preserve the confidence of the army, without losing that
of the people. This will enable you in case of extremity
to guide the torrent, and to bring order, perhaps even
good, out of confusion. 'Tis a part that requires address,
but 'tis one which your own situation as well as the welfare
of the community points out.
I will not conceal from your excellency a truth which it
is necessary you should know. An idea is propagated in
the army, that delicacy carried to an extreme prevents
your espousing its interests with sufficient warmth. The
falsehood of this opinion no one can be better acquainted
with than myself; but it is not the less mischievous for be-
ing false. Its tendency is to impair that influence which
you may exert with advantage, should any commotions
unhappily ensue, to moderate the pretensions of the army,
and make their conduct correspond with their duty.
The great desideratum at present is the establishment
of general funds, which alone can do justice to the credi-
tors of the United States, (of whom the army forms the
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 48
THE LIFE OF
most meritorious class,) restore public credit, and supply
the future wants of government. This is the object of all
men of sense; in this the influence of the army, properly
directed, may co-operate.
The intimations I have thrown out, will suffice to give
your excellency a proper conception of my sentiments:
you will judge of their reasonableness or fallacy; but I
persuade myself you will do justice to my motives.
General Knox has the confidence of the army, and is a
man of sense; I think he may be safely made use of.
Situated as I am, your exellency will feel the confidential
nature of these observations.
A few days after writing this letter,* Hamilton proposed
a resolution, which was passed, that "the commander-in-
chief be informed that congress are always happy to receive
his sentiments on the political and military affairs of these
states, the utility of which they have on so many occasions
experienced. " It also stated "the probability of peace," and
directed the secretary of foreign affairs " to make a confi-
dential communication to him of the state of the negotia-
tions for peace when the last advices were received. "
The day after the date of this letter, the discussion of
the mode of ascertaining the quotas of the states was re-
sumed. Various propositions were made, at different
times, until the seventeenth of February, when a plan was
adopted, five members dissenting. f
By this plan, the legislature of each state was required
to take the most effectual measures to obtain a just and
accurate account of the quantity of its land granted or
surveyed, of the number of buildings, distinguishing dwell-
ings from others, and of the number of white and black
inhabitants. These returns were to be examined by a
? Feb. 20. t Hamilton, Madison, Carroll, Floyd, Leo.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? II A M I I. T O N.
40
grand committee of congress, nine of whom concurring,
were to make an estimate of the value of the granted or
surveyed lands, and of the buildings or improvements, to
be approved or rejected by that body. This estimate was
to be the rule of apportioning among the states the quotas
to be paid into the continental treasury, and also of ad-
justing all accounts between the United States and the
individual states for previous supplies.
As this rule, if strictly adhered to, would charge the
states, which had been the theatres of war, for past sup-
plies according to their future ability, when in an entire
condition, and might operate very unequally upon New-
York, it has been seen that Hamilton embraced in his
resolution, for an eventual valuation, a recommendation
that the states should vest congress with a power of mak-
ing equitable abatements in favour of such as had been
more immediate sufferers by the war.
This motion was in accordance with a recommenda-
tion of the previous congress, that in a final settlement
of the expenses of the war to be borne by each state,
they should be authorized to assume and adopt such prin-
ciples, as from the particular circumstances of the several
states at different periods might appear just and equitable.
It was committed, but as Virginia had disagreed to that
recommendation, a committee reported against it. Ham-
ilton subsequently again brought forward this proposition
in a different form. It was a declaratory resolution by
congress that they would make such abatements.
Though admitted to be within the spirit of the con-
federation, a postponement was moved; but with a view
to defeat it, it was considered and rejected. *
* In vol. 1, page 362, Madison Papers, Madison represents himself as be-
ing in favour of " the abatements proposed by Hamilton"--and in page 418,
as offering an amendment to Hamilton's resolution, for which his reasons are
7
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 50
THE LIFE OF
The importance of this question to the interests of the
community he represented, and the course which he had
taken in reference to it, induced Hamilton to address a
letter* to the governor of New-York.
"I enclose," he said, " for the information of the legis-
lature, the proceedings upon it in different stages, by
which they will see the part I have acted. But as I was
ultimately left in a small minority, I think it my duty to
explain the motives upon which my opposition to the
general sense of the house was grounded. I am of opin-
ion, that the article of confederation itself was ill-judged.
In the first place, I do not believe there is any general
representative of the wealth of a nation, the criterion of
its ability to pay taxes. There are only two that can be
thought of--land and numbers. The revenues of the
United Provinces, general and particular, were computed
before the present war at more than half as much as those
of Great Britain. The extent of their territory is not one
fourth part as great; their population, less than a third.
. ' The comparison is still more striking between those
provinces and the Swiss cantons, in both of which, extent
of territory and population are nearly the same; and yet,
the revenues of the former are five times as large as those
of the latter; nor could any efforts of taxation bring them
to any thing like a level.
"In both cases, the advantages for agriculture are superior
in those countries which afford least revenue in proportion.
I have selected these examples because they are most famil-
iar; but whoever will extend the comparison between the
different nations of the world, will perceive that the position
I have laid down is supported by universal experience.
stated. On the 4th of March, he voted, in common with all the other Vir.
ginia members, first to postpone the consideration of this resolution, and
then to reject it. --i J. C. 170.
<< February 24, 1783.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
51
"The truth is, the ability of a country to pay taxes, de-
pends on infinite combinations of physical and moral
causes, which can never be accommodated to any general
rule; climate, soil, productions, advantages for navigation,
government, genius of the people, progress of arts, and
industry, and an endless variety of circumstances. The
diversities are sufficiently great in these states to make an
infinite difference in their relative wealth, the proportion of
which can never be found by any common measure whatever.
"The only possible way, then, of making them contribute
to the general expense in an equal proportion to their means,
is by general taxes imposed under continental authority.
"In this mode, there would no doubt be inequalities, and
for a considerable time material ones; but experience,
and the constant operation of a general interest, which, by
the very collision of particular interests, must in the main
prevail in a continental deliberative body, would at length
correct those inequalities, and balance one tax that should
bear hard upon one state, by another that should have a
proportional weight in others. This idea, however, was
not at the period of framing the confederation, and is not
yet agreeable to the spirit of the times. To futurity we
must leave the discovery how far this spirit is wise or
foolish. One thing, only is now certain, that congress,
having the discretionary power of determining the quantum
of money to be paid into the general treasury towards de-
fraying the common expenses, have in effect the constitu-
tional power of general taxation. The restraints upon
the exercise of this power amount to the perpetuating a
rule for fixing the proportions, which must of necessity pro-
duce inequality, and by refusing the federal government a
power of specific taxation and of collection, without substitu-
ting any other adequate means of coercion, do in fact leave
the compliance with continental requisitions to the good-
will of the respective states. Inequality is inherent in the
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 52
THE LIFE OP
theory of the confederation; and in the practice, that ine-
quality must increase in proportion to the honesty or dis-
honesty of the component parts. This vice will either in its
consequences reform the federal constitution, or dissolve it.
"If a general standard must be fixed, numbers were pre-
ferable to land. Modes might be devised to ascertain the
former with tolerable precision; but I am persuaded, the
experiment will prove that the value of all the land, in
each state, cannot be ascertained with any thing like ex-
actness. Both these measures have the common disad-
vantage of being no equal representative of the wealth
of the people; but one is much more simple, definite, and
certain than the other.
"I have indulged myself in these remarks, to show that
I have little expectation of success from any mode of car-
rying the article in question into execution upon equitable
principles. I owe it, however, to myself to declare, that
my opposition did not arise from this source. The con-
federation has pointed out this mode, and though I would
heartily join in a representation of the difficulties (of which
every man of sense must be sensible on examination) that
occur in the execution of the plan, to induce the states to
consent to a change; yet as this was not the disposition
of a majority of congress, I would have assented to any
mode of attempting it, which was not either obviously
mischievous or impracticable.
"The first plan proposed, as your excellency will see,
was an actual valuation of each state by itself. This was
evidently making the interested party judge in his own
cause. Those who have seen the operation of this prin-
ciple between the counties in the same state, and the dis-
tricts in the same county, cannot doubt a moment that the
valuations on this plan would have been altogether un-
equal and unjust. Without supposing more liberality in
one state than another, the degree of care, judgment, and
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
53
method, employed in the execution, would alone make
extreme differences in the results.
"This mode had also the further inconvenience of
awakening all the jealousies of the several states against
each other. Each would suspect that its neighbour had
favoured itself, whether the partiality appeared or not. It
would be impossible to silence these distrusts, and to make
the states sit down satisfied with the justice of each other.
Every new requisition for money, would be a new signal
for discussion and clamour, and the seeds of disunion,
already sown too thick, would be not a little multiplied.
"To guard against these evils, the plan proposes a revi-
sion by congress; but it is easy to be seen, that such a
power could not be exercised. Should any states return
defective valuations, it would be difficult to find sufficient
evidence to determine them such; to alter would not be
admissible, for congress could have no data which could
be presumed equivalent to those which must have gov-
erned the judgment of commissioners under oath, on an
actual view of the premises. To do either this or to re-
ject, would be an impeachment of the honour of the states,
which it is not probable there would be decision enough
to hazard, and which, if done, could not fail to excite
serious disgusts. There is a wide difference between a
single state exercising such a power over its own counties,
and a confederated government exercising it over sovereign
states which compose the confederacy. It might also
happen, that too many states would be interested in the
defective valuations, to leave a sufficient number willing
either to alter or to reject. These considerations pre-
vailed to prevent the plan being adopted by a majority.
"The last plan may be less mischievous than the first, but
it appears to me altogether ineffectual. The mere quan-
tity of land granted and surveyed, with the general species
of buildings upon them, can certainly be no criteria to
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 54 THE LIFE OF
determine their value. The plan does not even distinguish
the improved from the unimproved land, the qualities of
soil, or degrees of improvement; the qualities of the
houses and other buildings are entirely omitted. These,
it seems, are to be judged of by the commissioners to be
appointed by each state ; but I am unable to conceive how
any commissioner can form the least estimate of these
circumstances with respect even to his own state, much
less with respect to other states, which would be neces-
sary to establish a just relative value. If even there was
a distinction of improved from unimproved land, by sup-
posing an intrinsic value in the land, and adopting general
rates, something nearer the truth might be attained; but
it must now be all conjecture and uncertainty.
"The number of inhabitants, distinguishing white from
black, is called for. This is not only totally foreign to the
confederation, but can answer no reasonable purpose. It
has been said that the proportion of numbers may guide
and correct the estimates; an assertion purely verbal, and
which has no meaning. A judgment must first be formed
of the value of the lands upon some principle. If this
should be altered by the proportion of numbers, it is plain,
numbers would be substituted to land.
"Another objection to this plan is, that it lets in the par-
ticular interests of the states, to operate in the returns of
the quantities of land, number of buildings, and number
of inhabitants. But the principle of this objection applies
less forcibly here, than against the former plan.
"Whoever will consider the plain import of the eighth
article of the confederation, must be convinced that it in-
tended an actual and specific valuation of land, buildings,
and improvements--not a mere general estimate, according
to the present plan. While we insist, therefore, upon ad-
hering to the confederation, we should do it in reality, not
barely in appearance.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
55
"Many of those who voted for this scheme, had as bad
an opinion of it as myself, but they were induced to ac-
cede to it by a persuasion that some plan for the purpose
was expected by the states; and that none better, in the
present circumstances of the country, could be fallen upon.
"A leading rule which I have laid down for the direc-
tion of my conduct, is this:--that while I would have a just
deference for the expectations of the states, I would never
consent to amuse them by attempts which must either
fail in the execution, or be productive of evil. I would
rather incur the negative inconveniences of delay, than
the positive mischiefs of injudicious expedients. A con-
trary conduct serves to destroy confidence in the govern-
ment, the greatest misfortune that can befall a nation.
There should, in my opinion, be a character of wisdom
and efficiency in all the measures of the fcederal council, the
opposite of a spirit of temporizing concession. I would
have sufficient reliance on the judgments of the several
states, to hope that good reasons for not attempting a
thing, would be more satisfactory to them than precipitate
and fruitless attempts.
"My idea is, that taking it for granted the states will ex-
pect an experiment on the principle of the confederation,
the best plan* will be to make it by commissioners, ap-
pointed by congress and acting under their authority.
* In 1 Mad. 318, Madison observes--" Mr. Hamilton concurred in" (his)
"views, and wished the valuation to be taken up, in order that its impraeli.
cability and futility might become manifest. " This statement is at variance
with these facts. It has been seen that on the 6th January, 1783, Hamilton
offered a resolution for "an eventual valuation. " Here again, he urges an
adherence to the confederation, as intending " an actual and specific valua-
tion;" and in notes for a speech, endorsed on a letter from Clinton, respect-
ing Vermont, he says--" We are not to suppose that those who made the
confederation, did not consider various plans. "--"The states do not pay
taxes, because we do not proceed according to the confederation. "--" Oo
according to confederation. "
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 50
THE LIFE OF
Congress might, in the first instance, appoint three or more
of the principal characters in each state for probity and
abilities, with a power to nominate other commissioners
under them in each subdivision of the state. General
principles might be laid down for the regulation of their
conduct, by which uniformity in the manner of conduct-
ing the business would obtain. Sanctions of such solem-
nity might be prescribed, and such notoriety given to every
part of the transaction, that the commissioners could
neither be careless nor partial without a sacrifice of repu-
tation.
"To carry this plan, however, into effect with sufficient
care and accuracy, would be a work both of time and
expense; and, unfortunately, we are so pressed to find
money for calls of immediate necessity, that we could not
at present undertake a measure which would require so
large a sum.
"To me it appears evident, that every part of a business
which is of so important and universal concern, should be
transacted on uniform principles, and under the direction
of that body which has a common interest. In general, I
regard the present moment, probably the dawn of peace,
as peculiarly critical; and the measures which it shall pro-
duce, as of great importance to the future welfare of these
states. I am, therefore, scrupulously cautious of assenting
to such as appear to me founded on false principles.
"Your excellency will observe that the valuation of the
lands is to be the standard for adjusting the accounts for
past supplies, between the United States and the particular
states. This, if adhered to without allowance for the cir-
cumstances of those states which have been more imme-
diately the theatre of the war, will charge our state for
the past according to its future ability, when in an entire
condition, if the valuation should be made after we regain
possession of the parts of the state now in the power of
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON.
57
the enemy. I have, therefore, introduced a motion for re-
peating the call in a more earnest manner upon the states
to vest congress with a power of making equitable abate-
ments, agreeably to the spirit of the resolution of the
twentieth of February last, which few of the states have
complied with. This motion has been committed. I
know not what will be its fate.
'* Notwithstanding the opposition I have given, now the
matter has been decided in congress, I hope the state will
cheerfully comply with what is required. Unless each
state is governed by this principle, there is an end of the
union. Every state will no doubt have a right, in this
case, to accompany its compliance with such remarks as
it may think proper.
"After the plan was agreed upon, it was committed to
be put into form; and when reported, instead of commis-
sioners, an alteration was carried for making the estimate
by a grand committee. "
"February twenty-seventh. --Mr. Morris has signified to
congress his resolution to resign by the first of June, if
adequate funds are not by that time provided. This will
be a severe stroke to our affairs. No man fit for the
office will be willing to supply his place for the very rea-
sons he resigns. 'Tis happy for us we have reason to
expect a peace. I am sorry that by different accounts it
appears not to have been concluded late in December. "
While this subject was under consideration, the question
of providing for the public debt was again brought for-
ward. The temper of congress led Hamilton to doubt
whether its policy would be such as the interests of the
nation demanded. He believed that the influence of pub-
lic opinion might be beneficially exerted, and he resolved
to endeavour to cause it to be felt.
It is known that the deliberations of the congress of the
confederation were secret. During the earlier periods of
8
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 58
THE LIFE OP
the revolution, this precaution in an assembly exercising
not only legislative but executive powers, was absolutely
necessary. But this necessity was felt by discerning men
not to be the least of the evils attending a government by
a single body. The salutary control of public sentiment
was not felt, intrigues often prevailed over the maturest
counsels, and the highest talent mourned the absence of
that great support--the warm sympathies of the people.
Obvious as the consequences of this secrecy were, no at-
tempt had been made, during all the long period of the
revolution, to break through it.
It remained for Hamilton to make the first effort in
favour of open debate. He saw the congress sinking
rapidly in public esteem, its recommendations disregarded,
its resolves disobeyed, its counsels misrepresented; the
fears of the timid, stimulated by the arts of the factious,
viewing it as the theatre of cabals, hostile to liberty, when
in fact, the jealousies of particular states prevented the
exercise of those powers which were essential to the chief
object of its institution--the common defence. He saw
these influences at this moment unusually active, while the
clamours of the public creditors and of the army were
heard at their doors demanding an audience.
He had resorted in vain to private solicitation; in vain
had he exerted all the powers of eloquent persuasion to
induce a compliance with their just demands. The stern
prejudices of New-Hampshire could not be overcome;
Connecticut was not to be soothed. By those states it
was intended that a most solemn pledge for a most sacred
debt, the price of their independence, should be deliber-
ately violated.
On the eighteenth of February, the day appointed to
consider the proposition to raise substantial funds, a call,
which Hamilton seconded, for an estimate of the principal
of the liquidated and unliquidated debt, was followed by
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? HAMILTON. 59
a motion, in pursuance of instructions from Connecticut,
asking an account of the names and titles of all civil and
diplomatic officers, and a statement of the amount of all
grants for the pay, half-pay, and gratuities, for their past
services.
Hamilton felt that the honour of the nation was at stake,
and that it was a question for the nation to decide. He
proposed the following resolution:--" Whereas, it is the
desire of congress that the motives of their deliberations
and measures, (as far as they can be disclosed consistently
with the public safety,) should be fully known to their
constituents--therefore, resolved, That when the establish-
ment 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. "
This resolution was postponed almost without a reply,
for the only answer given to so important a proposition,
was the remark of the delegate from Rhode Island, as to
whom he had reported a vote of censure, " that if the
member wishes to display his eloquence, he should address
the people from the balcony. "
Immediately after the defeat of this proposal, a report
was made to the house by the grand committee, which
contained a modification of Hamilton's resolution so as
to declare the necessity of permanent and adequate funds,
but omitted the provision that they should be collected by
congress. In this form it passed by the votes of seven
states, and, on the twenty-first of February, was referred
to a special committee. *
Congress nowf resumed the consideration of the claims
of the officers. The committee of which Hamilton was
a member, reported that the officers then in service, and
who should continue until the end of the war, should
* Fitzsimmons, Gorham, Hamilton, Madison, Rutledge. t Feb. 25.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 60 THE LIFE OF
receive in commutation of their half-pay, full pay for years, either in money, or securities at interest, giv-
ing to the lines of the respective states, and not to the
individual officers, the option of accepting such commuta-
tion. This provision was extended to all officers who had
retired on a promise of half-pay, and to the widows of
such as should die in the service.
A motion was made to postpone this report, with a
view to substitute a provision by the states, which was
rejected. * Hamilton then moved to. fill the blank with
five and a half years' pay, as nearer to an equivalent of
full pay, on the valuations of lives; but this motion failed,
and the commutation was established at five years' full
pay. The subject was resumed, and on the 28th of Feb-
ruary seven states voted in favour of it. It being a ques-
tion which required, by the confederation, the concur-
rence of nine states, the provision was not made.
Soon after this vote, Hamilton received a reply to his
letter to Washington, in which will be perceived the con-
currence of the commander-in-chief in the views he had
suggested as to the course to be pursued, though Washing-
ton appears not to have entertained equal apprehensions
of the impending commotions in the army.
Newburgh, 4th March, 1783.
DEAR SIR,
I have received your favour of February; I thank you
for the information and observations it has conveyed
to me. I shall always think myself obliged by a free com-
munication of sentiments, and have often thought, (but
suppose I thought wrong, as it did not accord with the
practice of congress,) that the public interest might be
? All of the New England members, one from New Jersey, and one from
Virginia, supported this proposition.
? ? Generated for (University of Chicago) on 2014-08-20 03:41 GMT / http://hdl. handle. net/2027/uva. x000275492 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
?
