The Franklin Mint History Of The United States, 1776-1973
Manufacturer
The Franklin Mint
DateNo Date
MediumSilver
DimensionsOverall: 1 3/4 in. (45 mm.)
ClassificationsDecorative arts
Credit LineGift of Dr. Eugene F. Poutasse
Object number76.81.15
On View
Not on viewThe 1790 medal: Hamilton and Jefferson Agree on Debt Retirement
The first important example of "logrolling" in Congress occurred after Alexander Hamilton gave his report on the Public Credit on January 14, 1790. Hamilton took the position that all debts of the United States must be paid in full. There was little opposition to paying the foreign debt which amounted to $11,710,378. The $42 million domestic debt, mainly in soldiers' pay certificates, was a different matter. The certificates had been bought by speculators from Revolutionary War soldiers, who needed money or despaired of ever having them redeemed, at an average of ten to thirty cents on the dollar. The speculators were then in the position to reap tremendous profits without having borne the soldiers' hardships.
The oppostion to redeeming the certificates at face value was vehement but, by the time it came to vote, enough Congressmen had obtained certificates that Hamilton's proposal to pay for them in full was passed. While many profited by their "foresight," Hamilton himself had not personally speculated.
The next part of Hamilton's plan concerned the assumption of State debts which totaled an additional $18 million. Virginia and other States that had paid most of their debts thought this unfair. When the measure came to vote on April 12, it lost, 29 to 31.
New York, Pennsylvania and the South wanted the permanent capital in their States. Hamilton grasped that here was the means to secure the few votes needed to pass the assumption bill. In mid-June Hamilton stopped Thomas Jefferson in the street before the Predident's house and walked him back and forth for an hour convincing him that they should meet together on assumption and the location of the capital. Jefferson agreed and a couple Virginia votes were switched to secure the capital on the Potomac. And, to obtain Pennsylvania's vote, the capital was to be located in Philadelphia for 10 years until the permanent capital was ready. Shortly after, the bill was passed which "funded" the debts into new interest-bearing bonds.
