From Alexander Hamilton to Rufus King, 26 February 1795
To Rufus King1
N York
Feby. 26. 1795
My Dear Sir,
I have received your letter2 with the printed Bills.3 The new clause4 is an additional bad feature. Yet ’tis better the thing should pass as it is than not at all. Every thing should be gained that can be.
So: It seems that under the present administration of the Department, Hillhouse & Goodhue are to be the Ministers in the House of Representatives5 & Elsworth & Strong in the Senate.6 Fine work we shall have.
But I swear the Nation shall not be dishonored with impunity. Yr. Affecty.
A Hamilton
R King Esq
ALS, New-York Historical Society, New York City.
1. For background to this letter, see the introductory note to “Report on a Plan for the Further Support of Public Credit,” January 16, 1795; H to Theodore Sedgwick, February 18, 1795; H to King, February 21, 1795.
2. Letter not found.
3. These “bills” concerned the measure to implement H’s “Report on a Plan for the Further Support of Public Credit,” January 16, 1795. On February 23, 1795, “A message from the House of Representatives informed the Senate that the House have passed a bill, entitled ‘An act making further provision for the support of Public Credit, and for the redemption of the Public Debt,’ in which they desire the concurrence of the Senate” ( , IV, 833).
4. The “new clause” was inserted by the Senate in the second section of the bill passed by the House. As passed by the House on February 21, 1795, Section 2 of “An Act making further provision for the support of Public Credit, and for the redemption of the Public Debt” reads: “And be it further enacted, That a loan be opened at the treasury, to the full amount of the present foreign debt, to continue open until the last day of December, in the year one thousand seven hundred and ninety-six, and that the sums which may be subscribed to the said loan, shall be payable and receivable, by way of exchange, in equal sums of the principal of the said foreign debt; and that any sum, so subscribed and paid, shall bear an interest, equal to the rate of interest which is now payable on the principal of such part of the foreign debt, as shall be paid or exchanged therefor, together with an addition of one half per centum per annum; the said interest to commence on the first day of January next succeeding the time of each subscription, and to be paid quarter yearly, at the same periods at which interest is now payable and paid upon the domestic funded debt: Provided, that the principal of the said loan, may be reimbursed at any time, at the pleasure of the United States” (copy, printed by John Fenno, RG 46, Records of the United States Senate, National Archives).
The Senate amendment was made in the proviso in Section 2 where the words “may be reimbursed at any time” were struck out and the words “shall be reimbursed within twenty years, & may be reimbursed at any time after the expiration of twelve years” were substituted (D, RG 46, Records of the United States Senate, National Archives).
The Senate amendment was, however, rejected by the House (
, IV, 1273), and the bill which was finally adopted was the same as the original House measure. See “An Act making further provision for the support of Public Credit, and for the Redemption of the Public Debt” ( 433–38 [March 3, 1795]).5. On February 18, the House had approved a motion to strike out “the provision contemplated in this bill for non-subscribing creditors” ( , IV, 1237–40). This motion had been made by James Hillhouse of Connecticut and seconded by Benjamin Goodhue of Massachusetts, both of whom were Federalists. For a legislative history of “An Act making further provision for the support of Public Credit, and for the redemption of the Public Debt,” see the introductory note to “Report on a Plan for the Further Support of Public Credit,” January 16, 1795.
6. Oliver Ellsworth of Connecticut and Caleb Strong of Massachusetts were Federalists and members of the Senate committee to which was referred “An act making further provision for the support of Public Credit, and for the redemption of the Public Debt” after it had passed the House ( , IV, 833). For Ellsworth, see H to King, February 21, 1795, note 5.