The writings of George Washington; being his correspondence, addresses, messages, and other papers, official and private, selected and published from the original manuscripts; with a life of the author, notes and illustrations. By Jared Sparks.

460 LIFE OF WASHINGTON. [1790.
national honor and prosperity, and the Secretary of the
Treasury was directed to prepare a plan for the purpose, and report it to the house at the next session.
The national debt had its origin chiefly in the Revolution. It was of two kinds, foreign and domestic. The
foreign debt amounted to nearly twelve millions of
dollars, and was due to France, the Hollanders, and
a very small part to Spain. The domestic debt, due
to individuals in the United States for loans to'the
government and supplies furnished to the army, was
about forty-two millions. These debts had been contracted by Congress, and were acknowledged to be a
national charge. There was another description of
debts, amounting by estimate to about twenty-five
millions of dollars, which rested on a different footing.
The States individually had constructed works of defence within their respective limits, advanced pay and
bounties to Continental troops and militia, and supplied
provisions, clothing, and munitions of war. The secretary proposed, that all the domestic debts, including
those of the particular States, should be funded, and
that the nation should become responsible for their
payment to the full amount.
The report was able, perspicuous, and comprehensive, embracing a complete view of the subject, and
containing arguments of great cogency in support of
the plan suggested. As to the foreign debt, there was
no question in the mind of any one, that it ought to be
discharged according to the strict letter of the contracts, but in regard to the domestic debts a difference
of opinion prevailed. The secretary endeavoured to
prove, that no distinction should be admitted, that the
expenditures had all been made for national objects,
and that in equity the public faith was solemnly pledged
for their reimbursement. The obligation was increased