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.

JET. 62.] LIFE OF WASHINGTON. 501
In the President's speech to Congress, after mentioning somewhat in detail the course he had taken to
suppress the insurrection, he recommended further provisions for defence, particularly a reform of the militia
system, and also advised that some plan -should be
adopted for redeeming the public debt, which. now
amounted to about seventy-six millions of dollars. While
this last subject was under discussion in Congress, the
Secretary of the Treasury reported a scheme, which he
had matured on the basis of the laws previously enacted
for regulating the fiscal operations of the government.
A sinking fund had already been established by setting
apart for that purpose a portion of certain specified
taxes; and he proposed that this fund should be enlarged
by increasing the duties on imports, tonnage, and distilled spirits, by the money accruing from the sales of
public lands, the dividends on bank stock, and the surplus revenue remaining after the annual appropriations
had been expended, and that the fund, thus increased,
should be applied to the redemption of the debt. This
report occasioned much debate, but the secretary's plan
was substantially approved, and an act conformable, to
it was passed.
Before the end of the session, Hamilton resigned the
office of Secretary of the Treasury. The vacancy was
filled by Oliver Wolcott, who was strongly recommended by Hamilton, and whose character was well known
and highly respected by the President. General Knox
likewise retired from the war department, and was succeeded by Timothy Pickering, at that time Postmastergeneral, whose services in the revolution had qualified
him in an eminent degree for executing the duties of
Secretary of War.