Others had made no provision for the interest; but all, by taxes, paper money, or purchase, had, in some measure, reduced the principal.

In their exertions some degree of inequality had obtained; and they looked anxiously to a settlement of accounts, for the ascertainment of claims which each supposed itself to have upon the union.

Measures to effect this object had been taken by the former government; but they were slow in their progress, and intrinsic difficulties were found in the thing itself, not easily to be overcome.
The secretary of the treasury proposed to assume these debts, and to fund them in common with that which continued to be the proper debt of the union.
The resolution which comprehended this principle of the report, was vigorously opposed.
It was contended that the general government would acquire an undue influence, and that the state governments would be annihilated by the measure.

Not only would all the influence of the public creditors be thrown into the scale of the former, but it would absorb all the powers of taxation, and leave to the latter only the shadow of a government.

This would probably terminate in rendering the state governments useless, and would destroy the system so recently established.