No Congress, but a grand committee composed of a member from each state.

[Note *: * The proceedings of grand committees, though often rendered particularly important by the freedom and fulness of discussion, make no part of the Journal, except in the reported result.]

The states of New Hampshire and Massachusetts, having redeemed more than their quota of the emissions prior to the 18th of March, 1780, had called on Congress to he credited for the surplus, on which the superintendent of finance reported, that they ought to be credited at the rate of one dollar specie for forty of the said emission, according to the act of March aforesaid. This report, being judged by Congress unjust, as the money had been called in by those states at a greater depreciation, was disagreed to. Whereupon, a motion was made by Mr. OSGOOD, that the states who had redeemed a surplus, should be credited for the same according to its current value at the time of redemption.

This motion, with a letter afterwards received from the state of Massachusetts on he same subject, was referred to the grand committee in question.

The committee were unanimous that justice required an allowance to the states who should sink a surplus, to be apportioned on the different states. The different expedients were—

That Congress should renew their call on the states to execute the act of the 18th of March, 1780, and leave it to the states to levy the money by negotiations among themselves. This was Mr. HAMILTON’S idea. The objections against it were, that either nothing would be done in the case, or the deficient states would be at the mercy of the hoarding states; although the former were, perhaps, prevented from doing their part by invasions, and the prosperity of the latter enabled them to absorb an undue proportion.

By Mr. MADISON it was proposed that Congress should declare that, whenever it should appear that the whole of the bills emitted prior to the 18th of March, 1780, shall have been collected into the treasuries of the several states, Congress would proceed to give such credit for any surplus above the quotas assigned as equity might require, and debit the deficient states accordingly. In favor of this expedient, it was supposed that it would give a general encouragement to the states to draw the money outstanding among individuals into the public treasuries, and render a future equitable arrangement by Congress easy. The objections were, that it gave no satisfaction immediately to the complaining states, and would prolong the internal embarrassments which have hindered the states from a due compliance with the requisitions of Congress.

It was lastly proposed, by Mr. FITZSIMMONS, that the commissioners appointed to traverse the United States, for the purpose of settling accounts, should be empowered to take up all the outstanding old money? and issue certificates to be apportioned on the states as part of the public debt; the same rule to determine the credit for redemptions by the states. This proposition was, on the whole, generally thought by the committee least objectionable, and was referred to a sub-committee, composed of Mr. Rutledge, Mr. Fitzsimmons, and Mr. Hamilton, to be matured and laid before the grand committee. One consideration suggested by Mr. HAMlLTON in its favor was, that it would multiply the advocates for federal funds for discharging the public debts, and tend to cement the Union.

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