James Madison Papers
Note: this document has content that may require expanded/print view for best results (icons above right)

Notes for Speech in Congress, [22 April] 1790

Notes for Speech in Congress

[22 April 1790]

1.
No security for final balances
2.
Criterion of federalism—
  • —consistent with former argts.
  • —inconsistency on other side
  • —distrust of States—goes to private debts &c.
3.
Criterion of nationality
  • —threat from Cont. vs fedl Dbts & Govt.
  • —offend ½ Sts—especially N. Carolina

  • no Sts call for it but S. Carolina
  • —concentrate debts still more in one part
  • —prolong the national evil of Nat. debt
  • Sts can pay sooner
  • —not true that more funds given up than
  • proportion of fedl. quotas—
  • —case of Genessee lands1
4.
Not just—proper to know its operation
  • on every State. Virga. Col: Bland
    • —paid not less during war
    • —quotas
    • —paid off her own debt
    • —ultimately Creditor
5
yet advance now—& beyond ratio of ⅙
  • —will pay near ⅕ } ratio ⅙
    —little more received 1/7
  • —Massts. pay little more than 1/7 } ratio 1/7 & ½
    —receive more than ⅕

  • This disproportion increased by
    • —drawbacks on salt &c.
    • —by coasting & land imports
    • —by probable accumulation of State Dbts

  • Col: Bland supposes
    • 1. assumption to look
    • 2. Virga. not to pay after it

  • Relieve State from 1/7 by imposing ⅕–3 Mil: 5 dr
  • plundered—district from due share of 3 by impose
  • more than share of 5. Million
6.
Mode of excises obnoxious
  • —unequal among Sts & individls.
  • —arbitrary & vexatious
  • —frauds & perjuries, part[icular]ly
  • —Seller charge more than tax
  • —more expensive in collection
  • in G. B. 10 Pt. direct taxes less than 3 Pt.
  • —discourage manufactures America has
  • run from one extreme to another—
  • case of Maryland Constitution
7.
Not equalize condition of Citizens
  • —public debt—a private debt
  • —internal private debts of Va.
  • —British debts £1,500,000
  • —payable at once
  • —Money sent [out] of Country
  • —not urged as just tho’ accumulated by war
  • —enforced by estabt. of New Govt.
  • Massts—Genessee lands
8
  State of S. Carolina—hard
  • but 1. instalments
  • 2. tender of lands
  • 3. paper money
  • 4. has full faith in final settlemt.


Distrust of Sts— sd. Sts done all they cd.

9.
Difficulties
  • 1—partial subscription of Credrs.
  • 2. Who & how discriminate nature of debts
  • 3. Compound Certificates
  • 4. Certificates not bearing interest
  • 5. paper money of States
  • 6. private transactions referring to
    State certificates & State paper money.
  • 7. Depreciation made up in some States
    to more of army than in others—
  • 8. Some States have provided for army
    in ways not forming an existing dbt.
  • 9. State debts in part unliquidated
    —as Illinois claims— if rejected unjust
    if admitted dangerous
  • 10. Kentucky Indian Expeditions since peace
  • 11. Case of 500,000 drs. liquidd. to Va. by Comsrs.2
  • 12 Is it meant to provide funds now?

Not beneficial to Natl. Govt. in
present form

Not just

Not equalizing not practicable

bare majority—

Since 31. Mar: 1783 pd. to Treay. U. S.

Specie Indents
N. H. 35,630 86,474
Masst. 242,270 681,275
R. I. 38,533
Cont. 125,732 108,275
N. Y. 357,801 399,358
N. J. 104,948
Pena. 483,479 434,265
Del: 47,686 57,330
Maryd. 396,420
 
Va. 613,151 477,252
N. C. 48,626
S. C. 102,942
G.
2,597,233 2,244,231.
payts. to U. S. prior to March 1783.
Old money paid in
On requisitions of 93,000,000 for which New 1
Specie Old paper money prior to 1780 Specifics for 40 to issue3
N. H 3,000,000 New Emission Specie value N. H. 5,200,000
Mass 122,263 13,420,000 requisition of, 10,642,988. Mass 3,288. Mass 29,900,000
R. I 49,417 1,401,988 R. I 2,593,353
Cont. 84,687 9,887,714 Cont 9,151,484
N. York 17,224 2,760,438 N. Y 7,905,355
N. Jersy 53,993 1,647,370 5,149 N. J 6,826,675
Pena 174,922 6,454,873 Pena 295,096. Pena 28,454,674
Del: 1,000,000 Del 2,210,000
Maryd 47,271 3,923,003 Maryd 9,149,585
Virga 37,390 9,877,037 Virga 13,040,376
N. Ca. 2,380,000 N. C
S. C. 343,301 S. C. 87,925 S. C
Georga Ga.
930,471 55,752,425 5,149 386,311 114,431,505.

Aggregate of Specie & Indents pd. before & after peace4

N.H. 35,630 86,474
Mas 364,533 681,275
R. I. 87,950
Cont 210,419 108,275
N. Y 375,025 399,358
N. J 158,942
Pena 658,402 434,265
Delaw 47,686 57,330
Md. 443,691
Virga 650,542 477,252
N. C 48,626
S. C. 446,244
Geo
3,527,694 2,244,231.

Ms (DLC). In JM’s hand. Listed under date of February 1790 in the Index to the James Madison Papers. Undoubtedly these notes were made by JM as a memorandum for his speech of this day in the assumption debate.

1The Genesee lands in western New York were acquired by Massachusetts in 1786. In April 1788 Oliver Phelps and Nathaniel Gorham contracted to purchase this tract from the legislature for £300,000 in Massachusetts currency, payable in depreciated state securities. The purchase was never consummated, however, owing to difficulties from securing Indian titles and from the rise in value of the securities (in anticipation of the federal assumption of state debts). In March 1790 they returned two-thirds of the purchase to the state.

2In 1787 the commissioners for settling accounts awarded Virginia $500,000 as compensation for its cession of the Northwest Territory (PJM description begins William T. Hutchinson et al., eds., The Papers of James Madison (vols. 1–10, Chicago, 1962–77; vols. 11—, Charlottesville, Va., 1977—). description ends , X, 353–54 n. 1).

3JM’s figures in this column agree with those in the statement appended to Secretary Hamilton’s report of 11 May 1790 to the House (ASP description begins American State Papers: Documents, Legislative and Executive, of the Congress of the United States … (38 vols.; Washington, 1832–61). description ends , Finance, I, 58–59).

4Except for a slightly lower specie sum for New Jersey, and lower indent sums for Connecticut, Massachusetts, and Pennsylvania, JM’s figures match those in Hamilton’s report (ibid., I, 54).

Index Entries