USA > Pennsylvania > Colonial records of Pennsylvania, Vol. XIV > Part 27
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We, therefore, were of opinion that if the permanent appropri- ation and application by this State as it pleases of portions of its
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quota of the general charges and expenses, " to a particular part of those charges and expenses, so as to reclaim on that account against requisitions of the United States, could be rendered agreeable to them in Congress assembled, it must be by these two considera- tions. First. The distress of the persons provided for; and sec- ondly, the keeping ourselves in capacity, if possible, after such provision, to make competent payments into the 'common trea- sury.'
Both these ends we expected might be attained by confining the provision to the original holders of certificates, and to societies to which they had been given for benevolent purposes, to be continued by the same law to the holders of them, upon alienations subse- quent to the provision, as was done in the case of alienated certifi- cates mentioned in a supplementary act passed the twentieth of September, 1783, so that the original holders, who are the persons distressed, might, in selling their certificates, have the advantage of their raising in value in consequence of the provision being made.
The plea of distress for these " respectable claimants" would be truly affecting, but how much must it be confused and weakened by mixing with these claims the demands of purchasers of certifi- cates. It was with this view we made the few and short observa- tions in our message respecting those purchasers. Their merits or demerits we undertake not to judge, but we contend that their pre- tensions ought not on this occasion to be blended with those of real distress. Let the State deviate as little as possible from the Con- federation, and in deviating, let not the only plea be falsified that can be offered in its excuse. We are for leaving the purchasers of certificates what they voluntarily and cheerfully became, upon terms that must be extremely advantageous to them, that is, credi- tors of the United States, with the priviledge that has raised the value of their certificates, and they have no right to ask, repeatedly held forth by the laws of this State, of laying them out in lands, which, at a price fixed by the last law, we believe may be generally done by them at the rate of from three pence to twelve pence an acre.
In support of these sentiments, permit us to quote the following memorable words from an act of Assembly passed the first day of June, 1780, after the operation of the laws for making Continental bills of credit a legal tender had been suspended, and signed by the worthy gentleman as Speaker who now holds the same honora- ble office :- " The depreciation of the currency of the United States now in circulation, and the speculation which has taken place in consequence thereof, has opened a door to numerous frauds, and may operate to the general injury of virtue and morality and to the great dishonor of the State, unless timely prevented, and the prospect of an appreciation, unless regulated on just and equitable principles, might likewise be followed by a train of evils as per- nicious as those we have already experienced, and not only encour-
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age, but enable such persons as have obtained large sums for small values, to derive an undue advantage therefrom."
Why need this State interfere with the intentions of Congress concerning such purchasers. That honorable body has declared that a proper attention shall be paid to them. Let us remember that they have declared also that, if from the deficiencies " of the least able States, accomodation cannot be effected among the several objects mentioned, a preference shall be given in the discharge of the interest due upon the foreign debt." Surely we cannot forget that in this resolution are involved considerations of the highest consequence to the States.
Speaking of those to whom this debt is due, Congress in their address of the eighteenth of April, 1783, employ this emphatic language. " To an ally, in the first place, who to the exertion of his arms in support to our cause has added the succour of his treasure ; who to his important loans has added liberal donations ; and whose loans themselves carry the impression of his magna- nimity and friendship."
To individuals in a foreign country in the next place, who were the first to give so precious a token of their confidence in our jus- tice and of their friendship for our cause, and who are members of a republic which was second in espousing our rank among nations.
What arguments can justify Pennsylvania for giving a preference "over such creditors to dealers in certificates, and deliberately chusing to pay forty and fifty per cent. interest annually to the latter upon their real capitals, rather than to pay her proportion of four or five per cent. interest annually to the former upon their real capitals ? for the interest of the foreign debt is no higher. What will the nations of Europe think of our honor, our faith, our grati- tude, and our Union, when they hear of such proceedings ? "Tis true, if all the other States were in " happier situation," and could punctually pay their respective quotas, the interest of the foreign debt would still be regularly paid, tho' we should prohibit, as the funding bill proposes, any part of it from being paid by our quota. But, from the words of Congress, it seems that this is not quickly to be expected; and therefore, with the " earnestness and warmth" before mentioned, and excited by their intimate knowledge of our national affairs, they entreat " the abler States" to yield all the aid in their power. Instead of a compliance with this entreaty, the funding bill is calculated to prevent Congress from managing even our quota of the interest of the national debt.
"T'is also true, that if " a general and effective plan for the good purposes aforesaid can be formed, and ratified by the several States, so as to be put in execution," as the bill recites, that interest may then be regularly paid. But it is uncertain when such a plan will take place-if soon, the provision against which we object is need- less-if late, the objection operates with greater force.
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SUPREME EXECUTIVE COUNCIL.
The second consideration, which in our opinion might have effect in rendering an appropriation and application by this State as it pleases, of portions of its quota of the general charges and expences to a particular part thereof, in the manner before mentioned, agreeable to Congress, was the keeping ourselves in capacity, if . possible, after such provision, to make competent payments into " the common Treasury."
The " bills of credit" to be emitted, are to be received in payment not only for lands, but also " for all customs, imposts, duties, and debts to the State, and for the arrearages of all general taxes, and for all taxes to be assessed." How far this regulation, and a new appropriation by this State of the residue, after one-half of our quota of the eight millions of dollars shall be paid, as the funding bill expressly purports, are reconcilable with the acts of Assembly of 1782, and 1783, by which the faith of this State is given to the United States, " for the payment of our quotas of the eight millions and two millions of dollars, in gold and silver, to the orders of the said States," merits consideration, especially as Congress, in April last, assigned this reason for not immediately making larger de- mands than they then did; that " if the whole balances of those two requisitions should be rigorously called into payment within the course of that year, a compliance with such call would produce much distress."
Our sentiments are, that deducting from our quota of the na- tional debt a sum equivalent to the annual interest on purchased certificates, which upon such an estimate " as present circumstan- ces will admit,". we believe are one-half of all that have been issued in this State, such sum, together with our quota of requisitions for the expences of the government of the Union, be promptly paid from time to time, if our finances can enable us, into "the common Treasury ;" the United States in Congress assembled will then appropriate and apply the money as they ought to do. The dealers in certificates will scarcely venture to say, that those of whom they freely became creditors, are not to be trusted with paying them.
By proceeding in this manner, we shall allow ourselves means to discover what our real strength is, and also what is the real weight of the burthen now treated of; we shall hold ourselves in respect- ful readiness to comply in a satisfactory manner, it is hoped, with requisitions of Congress, which will undoubtedly be made, as honor justice, and the general welfare shall require. If our quota of such requisition shall not equal the income which we can easily raise and spare, how bright a prospect will open to Pennsylvania for employing the opportunity in improving the navigation of our rivers and the passage upon our roads, the defects of which threaten us with immense losses.
By these and other "cares," not unworthy of the rulers of a free people, a lively circulation may be promoted, and a strong connec- tion formed between the several counties; the mutual blessings
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flowing from thence, be universally perceived and valued; and in a short time the whole body of the State, healthy, robust, active and animated, be enabled cheerfully to bear loads that otherwise would be oppressive.
How far the ability of the State will at present extend, is a point demanding the strictest attention and investigation before this Commonwealth, in the circumstances now existing, shall commit her faith and revenue for an indefinite period of time, and for an indefinite sum of money, in the manner designed by the funding bill published for consideration.
It appears by the resolutions of the General Assembly of the fourth of December last, upon which the funding bill is founded, that the sum of one hundred and eighty-three thousand two hun- dred and thirty-two pounds must be annually raised " to pay the interest of the debts of the United States to citizens of this State, the interest of the debt due from and assumed by this State into a separate capacity, and the payments to the late proprietaries, exclu- sively of the civil list and other ordinary expences of government, and also of such other debts as are funded on particular reve- nues."
It further appears from these resolutions, that the estimate of debts is inaccurate, and only such, " as present circumstances will admit, 'and Congress mentioning the national debts, give the amount,' as far as they can be now ascertained."
Proper methods are in process for determining with certainty and in reasonable time, the debts due by the United States, and by this State, but the business is not yet accomplished. At present it is unknown what may be the amount of the engagements meditated by this State, especially as by the act of Assembly passed the first of December last, for appointing additional Commissioners, if it is carried into execution, debts may be assumed by this State as due by the United States, for which no credit may be allowed by them to this State. Another risque this State will be exposed to by the multiplicity of counterfeit certificates ; a mischief which can only be effectually guarded against by the authority of Congress from their controul over the public offices. This we are assured of, that there is a great mass of demands against the United States, · still remaining to be liquidated, in this State, whatever may prove to be the amount of them, when they shall be settled, the funding bill includes them all. The duties upon importations, and the taxes of seventy-six thousand nine hundred and forty five pounds seventeen shillings and six pence, are appropriated for paying the interest upon the whole; and agreeably to the principle of the bill, if those duties and taxes are not sufficient, others must be imposed.
Your Honorable House is well apprised of these additional impo- sitions, for your own resolutions of the 4th of last December, a few minutes before our message was delivered, and which are the foun-
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SUPREME EXECUTIVE COUNCIL.
dations of the funding bill, declare that "an annual tax of one hundred thousand pounds is necessary." It cannot be imagined, that the State will make a scramble for the interest money among the citizens, and pay the most importunate, leaving the rest unpaid. Indeed, if the money upon this fund should not come into the Trea- sury as fast as it is demanded, which will probably be the case, there can be no doubt but some creditors will, from their activity and situation, have a manifest superiority over others who live at a greater distance, and are not so well acquainted with public affairs, and the management of money to the best advantage.
.
To the sums necessary for these purposes, supposing as much and no more necessary for them than the bill mentions, are to be added our quota of the expences of the Federal Government, and all the expences of our own, computing the former at thirty thous- and pounds, and the latter at twenty thousand pounds, which we think a moderate calculation, this State must annually raise two hundred and thirty-three thousand two hundred and thirty-two pounds, besides the interest of the debts already funded on particu- lar revenues, and amounting yearly to eleven thousand two hun- dred and eighty four pounds six shillings and four pence, exclusive of county rates and levies, and of the taxes peculiar to the city. Of this sum of two hundred and thirty-three thousand two hundred and thirty-two pounds, one hundred and fifty thousand pounds, at least, are to be taken from the people by direct taxation, and levied by Collectors ; nor is this the whole sum to be thus taken from them. The expence of assessing and collecting, &c., will amount to above ten thousand pounds more. 'Tis true, there are some branches of revenue that may possibly lessen these direct taxes; but they cannot be relied upon to any large amount when contrasted with the encrease of public expences.
By a report adopted by the Honorable the Council of Censors, the thirteenth of last August, and since approved by your Honora- ble House, it appeared that these were the following balances of taxes unpaid :- In Continental money three millions one hundred and sixty-one thousand eight hundred and ninety-seven pounds seven shillings and. eight pence ; in State money one hundred and thirty- six thousand six hundred and eighty-one pounds four shillings and eleven pence ; and in specie four hundred and seventy-six thousand two hundred and thirty-nine pounds and ten pence half-penny.
Considering it as our duty upon this occasion to make enqui- ries that might lead to just conclusions respecting the circumstances of the State, and its ability to pay the intended taxes, we have en- deavored to obtain information. From accurate accounts, that may be depended on, we learn that the annual amount of all taxable property, together with the rates upon polls, in 1771, was only three hundred and sixty-eight thousand and forty-five pounds ; that the increase of population from 1760 to 1770, a period of public prosperity, was but about one fourth, and that the exports of staple
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comodities from this city in 1773 greatly exceeded those of the same kind in 1784, as will appear from the inclosed schedules .*
It is said, in the answer to our message, " We see no cause to de- preciate the ability of the State, as well as its credit, when we re- flect that in the year 1782, when we had neither rested from the ravages of the war, nor tasted the blessings of peace, a tax of four hundred and twenty thousand pounds was imposed, and tho' heavy, was not insupportable. In the year 1783, a farther tax was laid for two hundred and twenty-five thousand pounds, without any aid from the sale of lands."
As to the former part of this sentence, we see much greater evils likely to arise from exaggerating the ability of the State, some of which it would perhaps be more prudent to think. than speak of, than from depreciating it, if that was done. As to the taxes men- tioned, tho' they were laid early in each year, yet of the whole six hundred and forty-five thousand two hundred and ninety-seven pounds and fifteen shillings, for that was the exact amount, no more than two hundred and two thousand three hundred and sixty-seven pounds two shillings and four pence, not one-third of the whole, were paid into the treasury of this State, on the first day of the
*Increase of Population in Pennsylvania from 1760 to 1770.
Taxables in 1760.
In 1770.
Bucks,
-
Exports from Philadelphia.
In 1773.
In 1784.
Excess, 1773. Do. '84
Bushels of wheat,
182,391
24,490
157,901
Barrels of flour,
265,967
201,365
64,602
Barrels of bread,
48,103
28,525
19,578
Barrels of beef, &c.,
9,659
2,354
7,305
Bushels Ind'n corn,
179,217
73,527
105,690
Kegs of lard,
732
507
225
Boxes of candles,
1,165
1,288
123
Boxes of soap,
3,740
1,733
2,007
Tons of pearl ashes,
57ª
both, 64
643
Tons of pot ashes,
131
Pounds of leather,
31,696
7,080
24,616
Pounds bees wax,
64,546
46,585
17,961
Bushels of flaxseed,
63,681
71,592
2911
M staves and head,
5,114
4,083
1,031
M of plank boards,
3,309
3,098
599
Tons of iron,
1,564
667 and -
Bars, 10,402 about 400
.
-
.
5,631
6,608
York, -
-
3,302
4,426
Cumberland, -
1,501
3 521
Berks,
-
.
3,016
3,302
Northampton,
-
1,987
2,793
31,667
39,665
Philadelphia city and county,
8,321
10,455
.
-
3,148
3,177
Chester,
4,76L
5,483
Lancaster,
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present year : that is, on an average, only sixty-seven thousand four hundred and fifty-five pounds fourteen shillings one penny and three farthings in each of the three years, tho' in that period, those who · were zealous in the cause of their country, made the most strenuous exertions to pay their taxes, in order to determinate a destructive war, and thereby obtain peace, liberty, safety, and sovereignty ; and we are convinced that many thousand of our fellow citizens have ex- . perienced very severe difficulties in paying their shares of the col- lections. Among these are to be reckoned large numbers of that respectable class of our fellow citizens, the mechanics and manu- facturers, who have been lately, and now are, less able to pay taxes than they were in several preceding years. Is it to be reasonably ' expected then, that this State can, without "producing much dis- tress," raise annually, by direct taxation, one hundred and fifty thousand pounds, besides the expences of the collection?
We cannot, therefore, upon a review of facts forbear believing, that the following expressions of Congress last April, in describing the condition of America, are as applicable to our fellow citizens in general, and to great numbers of them in the frontier counties and elsewhere, as pointedly as to the people of other States. " Their abilities must be measured in weighing their burthens. Their creditors themselves will view them, just relieved from the ravages of prodatory armies-returning from an attendance on camps to the culture of their fields-beginning to sow, but not yet having reaped-exhausted of necessaries and habitual comforts, and therefore, needing new supplies out of the first proceeds of their labor. Forbearance then, to a certain degree, will suggest itself to them. Congress, entrusted with the dispensation of justice between the public and its creditors, will suppose both parties desirous that their mutual situations should be considered and accommodated."
Indeed the resolutions of the General Assembly of the fourth of December last, which contain the funding plan, expressly acknowl- edge the distresses that would attend the burthens to be imposed, for there it is resolved that " in order to enable the good people of this State to pay the tax and arrearages of taxes with greater ease and facility, bills of credit to the amount of the aforesaid sum of one hundred and eighty-three thousand two hundred and thirty-two pounds be prepared and issued."
Whether this mode of "enabling" those who have not paid will ap- pear equitable to citizens who have paid their taxes in specie upon the same assessments, and whether it be adviseable to give such favor to delinquency, are matters that call for some attention. How it can possibly add to the commerce, wealth, or prosperity of the State, when all our products are at such high prices, and industry in raising them is sure of receiving adequate rewards, we are utterly unin- formed ? In what part of the world has such an operation ever produced such effects ? This truth we are assured of, that it never
VOL. XIV .- 22.
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can "enable" the delinquents to pay their taxes, unless the paper comes depreciated into their hands, or they happen to be. public creditors who receive it in the first instance. For, if it should continue on a par with gold and silver, how can they get more of it by their labor, or by their products, than they can of gold and silver at present. Can it, by any intrinsic energy, raise the real prices of labor or products ? If it can, what a misfortune will it be for this State to have them raised within itself by means ope- rating solely within itself, to prices disproportionate to the relative demands of commerce abroad ?
Whether, after recent experience, and while State money to the amount of upwards of one hundred and sixty thousand pounds al- ready issued, and depreciated to two and a half for one, is still falling in price, though lands may be patented by it, and it is call- ed for in taxes, and while such quantities of certificates are passing, it will be practicable to render paper money "a medium of com- merce," rather than an article of commerce, is to be determined.' If Pennsylvania was a State the commerce of which was entirely internal, and gold and silver could be proseribed and utterly ban- ished, paper might be that medium. But if our merchants are to deal in a currency which has no estimation in other States and countries, we cannot answer other uses of money, and is subject to dangers and apprehensions of fluctuation in value, to what em- barrassments will they, and to what hazards will the commerce of the State be exposed ? How is it in the nature of things, possi- ble that paper can answer all the purposes of gold and silver, unless the possessor can, when he pleases, convert it into such money ? Is it not likely then, that these metals will at length prevail over such a currency, and that it must depreciate ? We also fear it will open a new source of speculation to the profit of the artful and the affluent, at the expence of the uninformed and the necessitous, whom your Honorable House, in distinguishing some of the same kind from the purchasers of certificates, has been pleased to call " the foolish and the necessitous." Whether their weakness be ac- cidental or natural, we desire that the protection of laws may be extended to them.
We ardently wish to save widows, orphans, officers, soldiers, and other worthy citizens, who have contributed their property by pla- cing it in the Loan office, or otherwise, to the use of their country, or who have served her, and still hold their certificates from such unequal contests as have been just mentioned, and from any possi- bility that what their country pays to them should again deceive them by depreciating in their hands. Let their case be separated from that of dealers in certificates, and let them be truly paid in specie. That this provision should not be exceeded by this State at this time, and in the manner proposed, is, in our judgment, re- commended by honor, justice, humanity, policy, and a regard for the Confederation.
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SUPREME EXECUTIVE COUNCIL.
Should the paper to be emitted not answer all the ends of a me- dium of commerce, though receivable for any demands by the State, it may yet have pernicious efficacy in expelling, for some time, large quantities of gold and silver from circulation. During that period the difficulty of paying debts, and the disappointment of the benevolent purposes for which the paper was originally intended, will be earnestly displayed.
Your successors may urge that the making it a legal tender is the only provision wanting to cure these disorders. With what pro- bability of success any person acquainted with public transactions can easily determine.
The iniquities of tender laws, and the evils of a paper currency, may, we hope, be avoided, if the funding plan is confined to the objects we wish to be comprehended. For this purpose the arreara- ges of taxes and the imposts, may be sufficient for several years to turn all the gold and silver arising from the imposts, &c., into paper, and to re-tax those citizens who have paid their shares of former taxes, while such large sums are still unpaid by others; and to make these extraordinary efforts in order to pay an immense interest to the purchasers of certificates, are measures that tend to the injury of the Commonwealth, however profitable they may be to some in- dividuals.
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