Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: CHAPTER III. THE FUNDING OF THE REVOLUTIONARY DEBT. Perhaps the gravest subject that ever confronted Congress was the Revolutionary debt. The more thoughtful political leaders felt that the destiny of the republic would turn upon the plans adopted for determining the amount, and providing for its payment. No one saw more difficulties than Hamilton, yet he was confident of finding a safe path for the nation. Nor was his faith, begotten by a profound study of the subject, shared by him alone. When President Washington was once conversing with Robert Morris about the condition of the finances of the country, he inquired, " What are we to do with this heavy debt?" To which Morris replied, "There is but one man in the United States who can tell you: that is Alexander Hamilton."1 Doubtless Morris's reply was still fresh in Washington's mind when selecting Hamilton for chief of the treasury department. Soon after the first convening of Congress, the House instructed Hamilton to prepare a report on the public debt for presentation at the next session. The subject was vast and intricate: nevertheless, the clear eye of Hamilton was able to pierce through it, and discover the true principles of settling the multifarious obligations i Hamilton's Hist. of Republic, vol. iv. p. 30. of the government, and also of providing for their payment after the amount should be determined. The public indebtedness was of two kinds, — foreign and domestic. The foreign creditors were France, Holland, and Spain. The amount due to each government was clearly known; and no one thought of repudiating, or changing the terms of, the several contracts under which the loans had been made. A small sum also was due to foreign officers who had served in the war for independence. The domestic indebtedne... --This text refers to an alternate Paperback edition.