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.

462 LIFE OF WASHINGTON.,U [1790.
original creditor or bearer. On these terms they had
been sold, and the sellers had relinquished all their
claims to the purchasers for what was deemed an
equivalent. When the transfers were made, it was
understood by both parties to be on this principle, and
the purchaser took the risk of eventual payment. It
was clear, also, that it would be impossible to make the
discrimination, except to a limited extent and in a
partial manner, since the numerous transfers of the
original creditors could not be ascertained and examined; and even at best no provision was offered for
the losses of the intermediate holders by the gradual
depreciation. After a long debate in the House of
Representatives, this scheme was rejected.
Next came up the State debts; and the proposition
to assume them created still greater divisions and heats
in Congress, and much excitement abroad. It brought
into action all the local prejudices and high-toned doctrines of State rights and State sovereignty, which had
been so heavy a stumblingblock in the way of union and
concord from the beginning of the Revolution. The
debts of the respective States were very unequal in
amount. This led to an investigation of the services
rendered by each, and to invidious comparisons. The
project was opposed as unconstitutional and unjust.
Congress, it was said, had no power to take this burden
upon the nation. Such an assumption of power was
moreover an encroachment upon the sovereignty of
the States, tending to diminish their importance, and
lead to a consolidation destructive of the republican
system. Each State was responsible for the debts it
had contracted, and there was no reason for taxing
those States, which owed little, to pay a portion of the
large debt of others.
It was argued in reply, that, as the expenditures had