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to be divided by the surveyors into townships of ten geographi cal miles square, the townships into hundreds of one mile square, and with such precautions that the wilderness could be mapped out into ranges of lots so exactly as to preclude uncertainty of title. As to inheritance, the words of the ordinance were: "The lands therein shall pass in descent and dower according to the customs known in the common law by the name of gavelkind." * Upon this ordinance of Jefferson, most thoughtfully prepared and written wholly by his own hand, no final vote was taken.

Congress had already decided to establish a mint. For the American coinage, Robert and Gouverneur Morris proposed the decimal system of computation, with silver as the only metallic money, and the fourteen hundred and fortieth part of a Spanish piece of eight reals, or, as the Americans called it, the dollar, as the unit of the currency. Jefferson chose the dollar, which circulated freely in every part of the American continent, as the money unit for computation; and the subdivision of the dollar into a tenth, a hundredth, and a thousandth part. For coinage, he proposed a gold coin of ten dollars; silver coins of one dollar and of one tenth of a dollar; and copper coins of one hundredth part of a dollar. † This system steadily grew in favor; and, in 1786, was established by congress without a negative vote. +

The total cost of the war, from the first blood shed at Lexington to the general orders of Washington in April 1783, proclaiming peace, was reckoned by Jefferson # at one hundred and forty millions of dollars. Congress, before the formation of the confederacy, had emitted paper money to the amount of two hundred millions of dollars, which at the time of its emission might, as he thought, have had the value of thirty-six millions of silver dollars; the value of the masses of paper emitted by the several states at various stages of the war he estimated at thirty-six millions more. This estimate of the values of the paper money rests in part upon conjecture, and

* Papers of Old Congress, xxx., 59. MS.

† Jefferson, i., 54. Notes on the establishment of a money unit and of a coinage for the United States. Ibid., 162–174.

Journals of Congress, iv., 376, for 8 August 1786.

# Jefferson, ix., 260.

the materials for correcting it with accuracy, especially as it regards the issues of the states, are wanting. The remaining cost of the war, or sixty-eight millions of dollars, with the exception of about one and a half million paid on requisition by the sev eral states, existed on the first of January 1784, in the form of debts in Europe to the amount of nearly eight millions of dollars; of debts due to the several classes of domestic creditors; and of debts due to states for advances on the common account. The value of the paper money issued by congress had perished as it passed from hand to hand, and its circulation had ceased.

In preparing the appropriations for the coming year, congress was met at the threshold by an unforeseen difficulty. Bills of Morris on Holland, that were protested for non-acceptance, would amount, with damages on protest for non-acceptance, to six hundred and thirty-six thousand dollars. To save the honor of the country, this sum was demanded of the separate states in a circular letter drawn by Jefferson. But, meantime, John Adams, in Amsterdam, manfully struggled to meet the drafts, and, by combining the allurement of a lottery with that of a very profitable loan, he succeeded.

The court of France, with delicacy and generosity, of its own motion released the United States from the payment of interest on their obligations during the war and for the first period of peace; and they on their part by formal treaty bound themselves to the payment of interest as it should accrue from the beginning of the year 1784.

For that year the sum required for the several branches of the public service was estimated at about four hundred and fifty thousand dollars; for the interest on the foreign debt, nearly four hundred thousand dollars; the balance of interest and the interest on the domestic debt, about six hundred and eighty thousand dollars; the deficit of the last two years, one million; other arrears connected with the debt, nearly one million three hundred thousand dollars: in all, about four millions. This was a greater sum than could be asked for. Instead of making new requisitions, Jefferson credited all federal payments of the states to the requisition of eight millions of dollars in the first year of the confederacy. One half of that requisition was remitted; of the other, three states had paid

nothing, the rest had paid less than a million and a half; a balance would remain of nearly two millions seven hundred thousand dollars; and of this balance a requisition was made on each of the states for its just proportion. The apportionment, if collected within the year, would defray the expenses of all the departments of the general government and the interest on the foreign and domestic loans, leaving only some part of domestic arrears to be provided for at a later day. Could this system be carried into effect, the credit of the government would be established.

Madison had acceded to the wishes of his county, that he should be one of its representatives in the legislature, believing that he might there best awaken Virginia to the glory of taking the lead in the rescue of the union and the blessings staked on union from an impending catastrophe.* Jefferson had kept him thoroughly informed of the movement for bringing order into the public finances. At the instigation of Madison, Philip Mazzei, an Italian, then in quest of a consular appointment in Europe,† paid a visit to Patrick Henry, "the great leader who had been violently opposed to every idea of increasing the power of congress." On his return, Mazzei reported that the present politics of Henry comprehended very friendly views toward the confederacy, and a support of the payment of British debts.#

At Richmond, on the fourteenth of May, before the assembly proceeded to active business, Henry sought a conference with Madison and Jones, and declared to them that "a bold example set by Virginia would have influence on the other states;" "he saw ruin inevitable unless something was done to give congress a compulsory process on delinquent states." This conviction, he said, was his only inducement for coming into the present assembly. It was agreed that Jones and Madison should sketch some plan for giving greater power to the federal government, and Henry promised to sustain it on the floor. A majority of the assembly were new members, composed of young men and officers of the late army, so that

* Gilpin, 693, 694; Elliot, 113.

Jefferson to Madison, 16 March 1784.

Edward Bancroft to William Frazer, 28 May 1784.
* Madison to Jefferson, 25 April 1784. Madison, i., 78.

new measures were expected. Great hopes were formed of Madison, and those who knew him best were sure that he would not disappoint the most sanguine expectations.*

Virginia passed an act empowering congress, for any term not exceeding fifteen years, to prohibit the importation or exportation of goods to or from that state in vessels belonging to subjects of powers with whom the United States had no commercial treaty. † They consented that the contributions of the state to the general treasury should be in proportion to the population, counting three fifths of the slaves. All apprehension of danger from conceding a revenue to the confederacy seemed to have passed away; and it was agreed that, pending the acceptance of the amendment to the constitution, any apportionment of the requisitions directed by congress for the purpose of discharging the national debt and the expenses of the national government ought to be complied with. It was further resolved that the accounts subsisting between the United States and individual states should be settled, and that then the balance due ought to be enforced, if necessary, by distress on the property of defaulting states or of their citizens. These resolutions passed the legislature without a division. It remained to see what effect the measures of Virginia would have on the other twelve states and on herself.

Experience had proved the impossibility of keeping together a sufficient representation of the states in congress. It began to be thought better to hold but a short and active annual session of the national congress with compulsory attendance of its members, and appoint commissioners of the states to conduct executive business for the rest of the year. This proposition was one of the last which Jefferson assisted to carry through. He had wished to visit Washington before his voyage; but, armed with at least one-and-twenty commissions for himself and his two associates to negotiate treaties with foreign powers, he was obliged to repair to Boston,

* William Short to T. Jefferson, 14 May 1784; Madison to Jefferson, 15 May 1784, Madison, i., 80; Edward Bancroft to William Frazer, 28 May 1784. In the letter of Short to Jefferson, the date is probably an error for May 15. See Madison, i., 80, "last evening."

Hening, xi., 388.

Journal of the Committee of the States, p. 7.

where, after "experiencing in the highest degree its hospitality and civilities," he embarked for France on the fifth of July, full of hope that the attempt to negotiate a treaty of commerce with Great Britain would meet with success. † Before leaving the country he wrote to Madison: "The best effects are produced by sending our young statesmen to congress. Here they see the affairs of the confederacy from a high ground; they learn the importance of the union, and befriend federal measures when they return." ‡

The committee of states came together on the fourth of June. Four states never attended; and, as the assent of nine was required to carry any proposition except adjournment, the absence or the negative of one state stopped all proceedings. A difference occurring on the eleventh of August, the members from three New England states went home; the remaining six states met irregularly till the nineteenth of that month; and then, from inability to do any manner of business, they withdrew. The United States of America were left without any visible representation whatever. The chief benefit from the experiment was to establish in the minds of Americans the necessity of vesting the executive power, not in a body of men, but, as Jefferson phrased it, in a single arbiter.

This was the state of the government when, on the first of November, Robert Morris retired from his office as superintendent of the finances of the United States. He had conciliated the support of the moneyed men at home.# His bank of North America, necessarily of little advantage to the United States, proved highly remunerative to its stockholders; the bankruptcy of the nation could have been prevented only by the nation itself. Congress passed an act that for the future no person, appointed a commissioner of the treasury of the United States, should be permitted to be engaged, either di

# Hamilton, i., 316, 317.

* Jefferson to Gerry, 2 July 1784. Austin's Life of Gerry, i., 55. Information from Edward Bancroft, 26 August 1784. Jefferson to Madison, 25 April 1784. The dividend for the first half year of the bank was four and a half per cent; for the second, four and one fourth; for the third, six and one half; for the fourth, eight; for the fifth, a little more than nine and a half per cent. Official report in Pennsylvania Packet for 6 July 1782; 7 January 1783; 8 July 1783; 6 January 1784; 8 July 1784.

VOL. VI.-10

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