The deputy secretary at war reported to Congress the result of the inquiry directed by them, on the 24th of January, into the seizure of goods destined for the British prisoners of war, under passport from General Washington. From this report, it appeared that some of the seizors had pursued their claim under the law of the state; and that, in consequence, the goods had been condemned and ordered for sale. The papers were referred to a committee, consisting of Mr. Rutledge, Mr. Gorham, and Mr. Lee, who, after having retired for a few moments, reported that the secretary of war should be authorized and directed to cause the goods to be taken from the places where they had been deposited; to employ such force as would be sufficient; and that the Duke de Lauzun, whose legion was in the neighborhood, should be requested to give the secretary such aid as he might apply for.

This report was generally regarded by Congress as intemperate, and the proposed recourse to the French legion as flagrantly imprudent. Mr. HAMILTON said, that if the object had been to embroil the country with their allies, the expedient would have been well conceived.* He added, that the exertion of force would not, under these circumstances, meet the sense of the people at large. Mr. GORHAM said, he denied this with respect to the people of Massachusetts.

Mr. LEE, on the part of the committee, said that the Duke de Lauzun had been recurred to as being in the neighborhood, and having cavalry under his command, which would best answer the occasion; and that the report was founded on wise and proper considerations.

Mr. MERCER, Mr. WILLIAMSON, Mr. RAMSAY, Mr. WILSON, and Mr. MADISON, strenuously opposed the report, as improper altogether, as far as it related to the French legion, and in other respects so until the state of Pennsylvania should, on summons, refuse to restore the articles seized.

Mr. RUTLEDGE, with equal warmth, contended for the expediency of the measures reported.

Mr. MERCER and Mr. MADISON at length proposed that Congress should assert the right on this subject, and summon the state of Pennsylvania to redress the wrong immediately. The report was recommitted, with this proposition, and Mr. Wilson and Mr. Mercer added to the committee.

The speech of the king of Great Britain on the 5th of December, 1782, arrived and produced great joy in general, except among the merchants who had great quantities of merchandise in store, the price of which immediately and materially fell. The most judicious members of Congress, however, suffered a great diminution of their joy from the impossibility of discharging the arrears and claims of the army, and their apprehensions of new difficulties from that quarter.

FRIDAY, February 14.

Mr. Jones, Mr. Rutledge, and Mr. Wilson, to whom had been referred, on Tuesday last, a letter from Mr. Jefferson, stating the obstacles to his voyage, reported that they had conferred with the agent of marine, who said there was a fit vessel ready for sea in this port, but was of opinion the arrival of the British king's speech would put a stop to the sailing of any vessels from the ports of America until something definitive should take place; and that if Congress judged fit that Mr. Jefferson should proceed immediately to Europe, it would be best to apply to the French minister for one of the frigates in the Chesapeake. The general opinion of Congress seemed to be that, under present circumstances, he should suspend his voyage until the further order of Congress; and on motion of Mr. GORHAM, seconded by Mr. WOLCOTT, the secretary of foreign affairs was accordingly, without opposition, directed to make this known to Mr. Jefferson.

The report of the committee for obtaining a valuation of land was made and considered. See the Journal of this date.

MONDAY, February 17.

The report respecting a valuation of land being lost, as appears from the Journal, was revived by the motion of Mr. DYER, seconded by Mr. MERCER, as it stands ; the appointment of commissioners by Congress for adjusting the quotas being changed for a grand committee, consisting of a delegate present from each state, for that purpose.

* This was an oblique allusion to Mr. Lee, whose enmity to the French was suspected by him, &c.

A motion was made to strike out the clause requiring the concurrence of nine voices in the report to Congress; and on the question, Shall the words stand? the states being equally divided, the clause was expunged. It was therefore reconsidered and reinserted.

The whole report was agreed to, with great reluctance, by almost all by many from a spirit of accommodation only, and the necessity of doing something on the subject. Some of those who were in the negative, particularly Mr. Madison, thought the plan not within the spirit of the Confederation; that it would be ineffectual, and that the states would be dissatisfied with it.

A motion was made by Mr. HAMILTON, seconded by Mr. FITZSIMMONS, to renew the recommendation of the February, 1782, for vesting Congress with power to make abatements in favor of states, parts of which had been in possession of the enemy. It was referred to a committee.

TUESDAY, February 18.

Committee of the Whole on the Subject of general Funds.

Mr. RUTLEDGE and Mr. MERCER proposed, that the impost of five per cent., as altered and to be recommended to the states, should be appropriated exclusively, first to the interest of the debt to the army, and then, in case of surplus, to the principal. Mr. Rutledge urged, in support of this motion, that it would be best to appropriate this fund to the army as the most likely to be obtained, as their merits were superior to those of all other creditors, and as it was the only thing that promised, what policy absolutely required, some satisfaction to them.

Mr. WILSON replied, that he was so sensible of the merits of the army, that if any discrimination were to be made among the public creditors, he should not deny them perhaps a preference, but that no such discrimination was necessary; that the ability of the public was equal to the whole debt, and that before it be split into different descriptions, the most vigorous efforts ought to be made to provide for it entire; that we ought first, at least, to see what funds could be provided, to see how far they would be deficient, and then, in the last necessity only, to admit discriminations.

Mr. GORHAM agreed with Mr. Wilson. He said an exclusive appropriation to the army would, in some places, be unpopular, and would prevent a compliance of those states whose citizens were the greatest creditors of the United States; since, without the influence of the public creditors, the measure could never be carried through the states; and these, if excluded from the appropriation, would be even interested in frustrating the measure, and keeping, by that means, their cause a common one with the army.

Mr. MERCER applauded the wisdom of the Confederation in leaving the provision of money to the states; said that when this plan was deviated from by Congress, their objects should be such as were best known and most approved; that the states were jealous of one another, and would not comply unless they were fully acquainted with, and approved, the purpose to which their money was to be applied; that nothing less than such a preference of the army would conciliate them; that no civil creditor would dare to put his claims on a level with those of the army; and insinuated that the speculations which had taken place in loan-office certificates might lead to a revision of that subject on principles of equity; that if too much were asked from the states, they would grant nothing. He said that it had been alleged, that the large public debt, if funded under Congress, would be a cement of the Confederacy. He thought, on the contrary, it would hasten its dissolution; as the people would feel its weight in the most obnoxious of all forms that of taxation. On the question, the states were all no, except South Carolina, which was ay.* A motion was made by Mr. RUTLEDGE, seconded by Mr. BLAND, to change the plan of the impost in such a manner as that a tariff might be formed for all articles that would admit of it; and that a duty, ad valorem, should be collected only on such articles as would not admit of it.

In support of such alteration, it was urged that it would lessen the opportunity of collusion between collector and importer, and would be more equal among the states. On the other side, it was alleged that the states had not objected to that

* Virginia — Mr. Jones, Mr. Madison, Mr. Bland, no; Mr. Lee, Mr. Mercer, ay.

part of the plan, and a change might produce objections; that the nature and variety of the imports would require necessarily the collection to be ad valorem on the greater pect of them; that the forming of a book of rates would be attended with great difficurties and delays; and that it would be in the power of Congress, by raising the rate of the article, to augment the duty beyond the limitation of five per cent., and that this consideration would excite objections on the part of the states. The motion was negatived.

A motion was made by Mr. HAMILTON, seconded by Mr. WILSON, that, whereas Congress were desirous that the motives and views of their measures should be known to their constituents in all cases where the public safety would admit, when the subject of finances was under debate, the doors of Congress should be open. Congress adjourned, it being the usual hour, and the motion being generally disrelished. The Pennsylvania delegates said, privately, that they had brought themselves into a critical situation by dissuading their constituents from separate provision for creditors of the United States, within Pennsylvania, hoping that Congress would adopt a general provision, and they wished their constituents to see the prospect themselves, and to witness the conduct of their delegates. Perhaps the true reason was, that it was expected the presence of public auditors, numerous and weighty, in Philadelphia, would have an influence, and that it would be well for the public to come more fully to the knowledge of the public finances.

A letter was received from Mr. William Lee, at Ghent, notifying the desire of the emperor of Austria to form a commercial treaty with the United States, and to have a resident from them. Committed to Messrs. Izard, Gorham, and Wilson.

WEDNESDAY, February 19.

The motion made yesterday by Mr. HAMILTON, for opening the doors of Congress when the subject of the finances should be under debate, was negatived; Pennsylvania alone being ay.

A motion was made by Mr. HAMILTON, seconded by Mr. BLAND, to postpone the clause of the report, made by the committee of the whole, for altering the impost, viz., the clause limiting its duration to twenty-five years, in order to substitute a proposition declaring it to be inexpedient to limit the period of its duration; first, because it ought to be commensurate to the duration of the debt; secondly, because it was improper in the present stage of the business, and all the limitation of which it would admit had been defined in the resolutions of, 1782.

Mr. HAMILTON said, in support of his motion, that it was in vain to attempt to gain the concurrence of the states by removing the objections publicly assigned by them against the impost; that these were the ostensible and not the true objections; that the true objection on the part of Rhode Island was the interference of the impost with the opportunity afforded by their situation of levying contributions on Connecticut, &c., which received foreign supplies through the ports of Rhode Island; that the true objection on the part of Virginia was her having little share in the debts due from the United States, to which the impost would be applied; that a removal of the avowed objections would not therefore remove the obstructions, whilst it would admit, on the part of Congress, that their first recommendation went beyond the absolute exigencies of the public; that Congress, having taken a proper ground at first, ought to maintain it till time should convince the states of the propriety of the measure.

Mr. BLAND said, that as the debt had been contracted by Congress with the concurrence of the states, and Congress was looked to for payment by the public creditors, it was justifiable and requisite in them to pursue such means as would be adequate to the discharge of the debt; and that the means would not be adequate, if limited in duration to a period within which no calculations had shown that the debt would be discharged.

On the motion, the states were - New Hampshire, divided; Massachusetts, no; Rhode Island, ay; Connecticut, divided; New York, ay; New Jersey, ay; Pennsylvania, ay; Virginia, no, (Mr. Bland, ay;) North Carolina, ay; South Carolina, ay. Mr. RUTLEDGE said he voted for postponing, not in order to agree to Mr. Hamilton's motion, but to move, and he accordingly renewed the motion made in committee of the whole, viz., that the impost should be appropriated exclusively to the army. This motion was seconded by Mr. LEE.

Mr. HAMILTON opposed the motion strenuously; declared that, as a friend to the army as well as to the other creditors and to the public at large, he would never assent to such a partial distribution of justice; that the different states, being differently attached to different branches of the public debt, would never concur in establishing a fund which was not extended to every branch; that it was impolitic to divide the interests of the civil and military creditors, whose joint efforts in the states would be necessary to prevail on them to adopt a general revenue.

Mr. MERCER favored the measure, as necessary to satisfy the army, and to avert the consequences which would result from their disappointment on this subject. He pronounced, that the army would not disband until satisfactory provision should be made, and that this was the only attainable provision; but he reprobated the doctrine of permanent debt supported by a general and permanent revenue, and said that it would be good policy to separate, instead of cementing, the interests of the army and the other public creditors; insinuating that the claims of the latter were not supported by justice, and that the loan-office certificates ought to be revised.

Mr. FITZSIMMONS observed, that it was unnecessary to make a separate appropriation of the impost to one particular debt; since, if other funds should be superadded, there would be more simplicity and equal propriety in an aggregate fund for the aggregate debt funded, and that, if no other funds should be superadded, it would be unjust and impolitic; that the states whose citizens were the chief creditors of the United States would never concur in such a measure; that the mercantile interest, which comprehended the chief creditors of Pennsylvania, had by their influence obtained the prompt and full concurrence of that state in the impost; and if that influence were excluded, the state would repeal its law. He concurred with those who hoped the army would not disband unless provision should be made for doing them justice.

Mr. LEE contended, that, as every body felt and acknowledged the force of the demands of the army, an appropriation of the impost to them would recommend it to all the states; that distinct and specific appropriation of distinct revenue was the only true system of finance, and was the practice of all other nations who were enlightened on this subject; that the army had not only more merit than the mercantile creditors, but that the latter would be more able, on a return of peace, to return to the business which would support them.

Mr. MADISON said, that, if other funds were to be superadded, as the gentleman (Mr. Rutledge) who made the motion admitted, it was at least premature to make the appropriation in question; that it would be best to wait till all the funds were agreed upon, and then appropriate them respectively to those debts to which they should be best fitted; that it was probable the impost would be judged best adapted to the foreign debt, as the foreign creditors could not, like the domestic, ever recur to particular states for separate payments; and that, as this would be a revenue little felt, it would be prudent to assign it to those for whom the states would care least, leaving more obnoxious revenues for those creditors who would excite the sympathy of their countrymen, and could stimulate them to do justice.

Mr. WILLIAMSON was against the motion; said he did not wish the army to disband until proper provision should be made for them; that if force should be necessary to excite justice, the sooner force was applied the better.

Mr. WILSON was against the motion of Mr. Rutledge; he observed that no instance occurred in the British history of finance in which distinct appropriations had been made to distinct debts already contracted; that a consolidation of funds had been the result of experience; that an aggregate fund was more simple, and would be most convenient; that the interest of the whole funded debt ought to be paid before the principal of any part of it; and, therefore, in case of surplus of the impost beyond the interest of the army debt, it ought, at any rate, to be applied to the interest of the other debts, and not, as the motion proposed, to the principal of the army debt. He was fully of opinion that such a motion would defeat itself; that, by dividing the interest of the civil from that of the military creditors, provision for the latter would be frustrated.

On the question on Mr. Rutledge's motion, the states were — New Hampshire, no; Massachusetts, no; Connecticut, no; New Jersey, no; Virginia, no; (Mr. Lee and Mr. Mercer, ay ;) North Carolina, no; South Carolina, ay.

On the clause reported by the committee of the whole, in favor of limiting the impost to twenty-five years, the states were - New Hampshire, ay; Massachusetts, ay;

Connecticut, divided; (Mr. Dyer, ay; Mr. Wolcott, no;) New York, no; New Jersey, no; Pennsylvania, ay; (Mr. Wilson and Mr. Fitzsimmons, no ;) Virginia, ay; (Mr. Bland, no;) North Carolina, ay; South Carolina, ay: so the question was lost. On the question whether the appointment of collectors of the impost shall be left to the states, the collectors to be under the control of, and be amenable to, Congress, there were seven ayes; New York and Pennsylvania being no, and New Jersey divided.

THURSDAY, February 20.

The motion for limiting the impost to twenty-five years having been yesterday lost, and some of the gentlemen who were in the negative desponding of an indefinite grant of it from the states, the motion was reconsidered.

Mr. WOLCOTT and Mr. HAMILTON repeat the inadequacy of a definite term. Mr. RAMSAY and Mr. WILLIAMSON repeat the improbability of an indefinite term being acceded to by the states, and the expediency of preferring a limited impost to a failure of it altogether.

Mr. MERCER was against the impost altogether, but would confine his opposition within Congress. He was in favor of the limitation, as an alleviation of the evil. Mr. FITZSIMMONS animadverted on Mr. Mercer's insinuation yesterday touching the loan-office creditors, and the policy of dividing them from the military creditors; reprobated every measure which contravened the principles of justice and public faith; and asked, whether it were likely that Massachusetts and Pennsylvania, to whose citizens half the loan-office debt was owing, would concur with Virginia, whose citizens had lent but little more than three hundred thousand dollars, in any plan that did not provide for that in common with other debts of the United States. He was against a limitation to twenty-five years.

Mr LEE wished to know whether by loan-office creditors were meant the original subscribers or the present holders of the certificates, as the force of their demands may be affected by this consideration.

Mr. FITZSIMMOMS saw the scope of the question, and said that, if another scale of depreciation was seriously in view, he wished it to come out, that every one might know the course to be taken.

Mr. GORHAM followed the sentiments of the gentleman who last spoke; expressed his astonishment that a gentleman (Mr. Lee) who had enjoyed such opportunities of observing the nature of public credit should advance such doctrines as were fatal to it. He said it was time that this point should be explained; that if the former scale for the loan-office certificates was to be revised and reduced, as one member from Virginia (Mr. Mercer) contended, or a further scale to be made out for subsequent depreciation of certificates, as seemed to be the idea of the other member, (Mr. Lee,) the restoration of public credit was not only visionary, but the concurrence of the states in any arrangement whatever was not to be expected. He was in favor of the limitation, as necessary to overcome the objections of the states. Mr. MERCER professed his attachment to the principles of justice, but declared that he thought the scale by which the loans had been valued unjust to the public, and that it ought to be revised and reduced.

On the question for the period of twenty-five years, it was decided in the affirmative, seven states being in favor of it; New Jersey and New York only being no. Mr. MERCER called the attention of Congress to the case of the goods seized under a law of Pennsylvania, on which the committee had not yet reported, and wished that Congress would come to some resolution declaratory of their rights, and which would lead to an effectual interposition on the part of the legislature of Pennsylvania. After much conversation on the subject, in which the members were somewhat divided as to the degree of peremptoriness with which the state of Pennsylvania should be called on, the resolution on the Journal, which is inserted below, was finally adopted; having been drawn up by the secretary, and put into the hands of a member, the resolution passed without any dissent.*

Resolved, That it does not appear to Congress that any abuse has been made of the passport granted by the commander-in-chief for the protection of clothing and other necessaries sent from New York, in the ship Amazon, for the use of the British and German prisoners of war.

* The result proved that mildness was the soundest policy — the legislature, in consequence, having declared the law under which the goods were seized to be void, as contradictory to the Federal Constitution. Some of the members, in conversation, said that, if Congress had declared the law to be void, the displeasure of the legislature might possibly have produced a different issue