Resolved, That such of the debts of the individual States as have been incurred by them, during the late war, ought to be assumed by the General Government, and like funds provided for them.[34]
Resolved, That the arrearages of interest, on the Continental and State debts, ought to be funded, and consolidated with the principal.
Resolved, That the interest to be paid thereon does not exceed —— per cent. per annum, for the present.
These motions were severally expressive of objects contemplated in the Secretary's report. The last was upon a principle of modification, such as was held out in the plan for reloaning the debt.
Tuesday, February 9.
Public credit: Providing for the public debt: Assuming the State debts: Funding their certificates: Report of General Hamilton, Secretary of the Treasury.
[To the first object, that of providing for the public debt, there was no objection; to the assumption and the funding there was a strenuous opposition, and their adoption became one of the landmarks of party.]
Mr. Jackson.—Believe me, Mr. Chairman, I have as high a sense of the obligation we are under to the public creditors, and feel as much gratitude towards them as any man on this floor. I shall ever cheerfully acknowledge the duty we owe to our benefactors, and in a peculiar manner to those brave soldiers who, at the risk of their lives and fortunes, secured the independency of America. I have also the most sincere wishes for the re-establishment of public credit, and that upon firm and solid ground, and on principles which cannot be called in question; but there appears to me a previous question, which has not yet been brought forward; it is this, whether there exists an immediate necessity for funding the national debt in the permanent manner proposed?
The high regard I have for the nature and circumstances of the foreign debt, induced me to let the first proposition pass without any animadversion. The vote which has been taken on that point will serve to show foreigners that we are concerned to preserve our credit with them by a rigid performance of our stipulations; trusting, at the same time, that our fellow-citizens cannot object to a distinction so just and proper in itself; for, notwithstanding what the domestic creditors may say, it is the money of foreigners that has, in a great measure, established our independence.