charged to them by the Union, then every part of that assumption which had not been repaid by the States, must be contemplated as an increase of the Public Debt of the Union; and it was not the partial effect produced by a specific charge, but the whole effect produced by the assumption itself, on the final settlement of the accounts of the several States, which must be taken into consideration. They well knew the amount of the Debt incurred by the mode which had been adopted, of assuming before the accounts were settled-about eighteen millions and a half assumed, and three millions and a half funded to the creditor States for the balances due them-made an aggregate of near twenty-two millions of dollars, against which they had nothing but three millions and a half, to be recovered from the debtor States. It remained to examine what would have been the final balances due to and by the several States, if no assumption had taken place. Although the books of the Commissioners were not opened to their inspection, yet they had sufficient data to make the calculation. Mr. G. said he had made it, and found that the aggregate amount of the balances which would have been found due to the creditor States, (and of course due by the debtor States, if no assumption had taken place,) would have been very little more than eight millions of dollars. From whence it resulted, that, supposing the balances due by the debtor States to be lost in both cases, the increase of Debt arising from the assumption was fourteen millions of dollars-it being the difference between twenty-two millions which had actually been funded, and eight millions which would have been funded for balances due to the creditor States, if no assumption had taken place; that, supposing the balances due by the debtor States to be recovered in both cases, the increase of Debt arising from the assumption was the amount assumed, exclusively of the balances, to wit, near eighteen millions and a half of dollars; that, supposing the balances due by the debtor States to be lost, and that, in case no assumption had taken place before the settlement of accounts, the United States had after settlement, in order to equalize the loss arising to the creditor States from the debtor States not paying their balances, assumed four millions and a half in addition to the eight millions balances funded to the creditor States-the aggregate (making twelve-and-a-half millions of dollars) would still have been less, by a sum of nine millions and a half, than the twenty-two millions which had been funded according to the plan which had been adopted. Thus, a statement made on the principles upon which the objection of the gentleman from South Carolina did rest, would present, on the most favorable position, an increase of more than nine millions of dollars for the assumption alone. [H. OF R. to be debtor States exceeded two millions of dollars. That sum was an increase of Debt arising solely from the operations of Government, and which would be eventually lost unless recovered from those debtor States-an event which was not contemplated by many. And here, he would observe, that the remarks made by the gentleman from South Carolina on the subject of the recovery of those balances, if he meant to convey an idea that they should constitute an item to the credit of the United States, were altogether failacus; for they could be set off only against the balances funded to the creditor States; and these had not been charged, either by that gentleman's or by his own statement, as an increase of Debt under the present Government. Mr. G. concluded by observing, that, having fully demonstrated that the gentleman from South Carolina, so far from having disproved any of the facts stated by him, had on the contrary supported them by his own statements; and having submitted to the House his reasons in support of those points on which they differed as matters of opinion, he would rot object to the resolutions moved by that gentleman, although there was not a single document he asked for which was not already in the possession of the House, and although the sole object of the call on the Treasury Department was to procure statements in that shape and for those periods only which were best calculated to favor the gentleman's opinions, and to give some support to his systems. For the statements to be given, in conformity to those resolutions, would present a view neither of the interest accrued on the Domestic and Foreign Debt during the year 1790, nor of the interest accrued on the Assumed Debt during the years 1790 and 1791, nor of the expenditures, as compared with receipts, which were exactly the three points upon which they differed. As Mr. W.SMITH admitted that there was one point, and only one, in which he and the gentleman agreed; that was, in vindicating the Administration from every blame for this supposed increase of debt. He was glad to find the gentleman so ready now to acknowledge that the Administration had done everything in their power, with the means in their hands, and that if any blame did attach, it was on Congress, for not providing more resources. the gentleman disclaimed an intention of censuring the Administration, Mr. S. was at a loss to discover the motives for his statements. In every other respect, the gentleman and himself differed altogether. There were four items respecting which they differed essentially, the result from which was, that the gentleman's statement produced an increase of Debt of five millions, and his exhibited an increase of means of two millions. 1. The first item related to the amount of antiMr. G. said that not only he had forborne mak-cipations or expenditures beyond the receipts at ing his calculation on that principle, but that he had not even presented another view of the same subject, which, although not so correct, in an abstract point of view, was more simple and practically true. The amount of Debts actually assumed and funded for States who had turned out 4th CON.-49 the end of 1794. Those anticipations must have arisen from Loans; in order, therefore, to ascertain the amount, it was necessary to state the whole amount of Loans to that period, and then deduct the amount of Debts paid thereout; the balance constituted the true amount of anticipations. By H. OF. R.J Sundry Business—Adjournment. this process, it was demonstrable that the true amount at the end of 1794 was only 1,723,615, instead of 2,700,000, as stated by the gentleman. 2. The second item related to the amount of excess of anticipations during the year 1795. By pursuing the same process, this appeared to be only 382,674, instead of 1,500,000, as stated by the gentleman. 3. The third item arose from a different view taken by them as to the interest accruing on the Domestic and Foreign Debt during the year 1790. This amounted to 1,400,000. On this point, it was to be remarked, (in addition to his former observations,) that while the gentleman charged this item as an increase of Debt, under the present Government, he had omitted to credit the Treasury with the sum actually produced by the surplus revenue of that year. That surplus, instead of being applied to the discharge of the interest of the Foreign and Domestic Debt for 1790, was more profitably employed in buying up, considerably under par, the principal of the Domestic Debt. If, therefore, it was right in the gentleman to charge that interest as an increase of Debt. it was equally so to credit the Government with the whole sum produced by the fund, which was diverted from the payment of that interest. This sum was about 1,700,000, but the gentleman had only credited the Treasury for 957,000. 4. The last item was the interest of the Assumed Debt for 1790 and 1791. It was admitted that this was a charge against the States. Whether the United States would ultimately recover from the debtor States the whole of the balances due, was a question not necessary then to be discussed. It could not, however, be a question whether a part would not be recovered. These balances, and the interest due thereon, at only four per cent., amounted to upwards of four millions. Supposing that only 25 per cent should be recovered, it would be a sufficient set-off against this item of $1,050,000 in the gentleman's statement of the increase of Debt. [JUNE, 1796, be made in adding up the sums, so as to make the balance beyond ordinary expenditures $13,900,000, instead of $18,400,000.] SUNDRY BUSINESS. Mr. SWANWICK proposed the following resolution, which was agreed to: Resolved, That the Secretary of the Treasury be directed to lay before this House a statement of the drawback paid on the sundry dutiable articles exported from the United States in the years 1793, 1794, and 1795, compared with the amount of the duties collected on the same respectively." Mr. SITGREAVES, from the committee to whom was referred the Message of the PRESIDENT respecting the posts of Detroit and Michilimackinac, reported that he had not been able to get the neces sary information to make a report; therefore, he moved that the committee might be discharged; which was accordingly done. The Senate, by their Secretary, informed the House that they had resolved that the bill for altering the time of holding the next session of Congress do not pass. The amendments of the Senate to the bill for making appropriations for the Military and Naval Establishments for the year 1796 were read and agreed to. One of the amendments was to reduce the sum for the purchase of horses from $7,500 to $3,750; another was to reduce the sum for the defence and protection of the frontiers from $130,000 to $100,000; the other was to conform the whole amount to these amendments-making it, instead of $1,352,623, $1,318,773. The Senate's amendments to the bill indemnifying the estate of Major General Greene from a certain bond, were agreed to without debate. Sundry resolutions were proposed and agreed to, making additional allowances to the Sergeant-atArms, Clerks, and Doorkeepers of the House for the present session. The House then adjourned till five o'clock this evening. EVENING SESSION. Mr. S. expressed his satisfaction that he had had an opportunity, before the recess, of exhibiting a more agreeable view of the finances than had been The Senate informed the House, by their Secredone by the member from Pennsylvania, who had tary, that they had resolved that the bill authoriztaken uncommon pains to present a very melan- ing the PRESIDENT OF THE UNITED STATES to lay, choly one indeed. Mr. S. concluded with observ-regulate, and revoke embargoes, during the ensu ing, that, when he contemplated the very heavy reading to-day. ing recess of Congress, do not receive its third unforeseen expenses incurred since the year 1793, by the necessary efforts for protection, and by un-wait upon the PRESIDENT OF THE UNITED STATES, Mr. J. SMITH, from the committee appointed to avoidable negotiations, the Western insurrection, the long and persevering obstructions to the col- to notify him of the intention of both Houses to lection of the excise, and the aversion in that adjourn on this day, reported his approbation House to an augmentation of the revenues, he was astonished, as well as delighted, to find that the finances were in so flourishing a situation, and that the Government had got along so well. [In Mr. SMITH'S Statement of the Finances, printed at the foot of page 918, ante, the item, Paid of Unfunded Debt. $5,000,000," should read $500,000; and the corresponding alterations should thereof. The business before the House being finished, a message was sent to the Senate, to inform them that the House was ready to adjourn. Whereupon. might be sent thereto, without receiving any after waiting some time to receive any answer that The SPEAKER adjourned the House until the first Monday in December next. |