American History

Virginia’s Remonstrance Against the Assumption of State Debts

16 December 1790

Though Madison and Jefferson believed that they had struck a necessary bargain, and one which

rendered the details of the assumption fairer to Virginia, the alterations in the plan—even when

combined with the decision that the seat of government would move to the Potomac—were not

enough to reconcile other Virginia politicians. Issuing from a committee that included Henry Lee

and Patrick Henry, the remonstrance of the state legislature provoked Alexander Hamilton to his

earliest surviving denunciation of opposition to his plans.

The General Assembly of the Commonwealth of Virginia to the United States in Congress

assembled, represent:

That it is with great concern they find themselves compelled, from a sense of duty, to call the

attention of Congress to an act of their last session, entitled “An act making provision for the

debt of the United States,” which the General Assembly conceives neither policy, justice, nor the

Constitution warrants. Republican policy, in the opinion of your memorialists, could scarcely

have suggested those clauses in the aforesaid act which limit the right of the United States in

their redemption of the public debt. On the contrary, they discern a striking resemblance between

this system and that which was introduced into England at the Revolution—a system which has

perpetuated upon that nation an enormous debt, and has, moreover, insinuated into the hands of

the Executive an unbounded influence, which, pervading every branch of the Government, bears

down all opposition, and daily threatens the destruction of every thing that appertains to English

liberty. The same causes produce the same effects.

In an agricultural country like this, therefore, to erect and concentrate and perpetuate a large

moneyed interest is a measure which your memorialists apprehend must, in the course of human

events, produce one or other of two evils: the prostration of agriculture at the feet of commerce,

or a change in the present form of Federal Government fatal to the existence of American liberty.

The General Assembly pass by various other parts of the said act which they apprehend will have

a dangerous and impolitic tendency and proceed to show the injustice of it as it applies to this

Commonwealth. It pledges the faith of the United States for the payment of certain debts due by

the several states in the Union, contracted by them during the late war.

A large proportion of the debt thus contracted by this state has been already redeemed by the

collection of heavy taxes levied on its citizens, and measures have been taken for the gradual

payment of the balance, so as to afford the most certain prospect of extinguishing the whole at a

period not very distant. But, by the operation of the aforesaid act, a heavy debt, and consequently

heavy taxes, will be entailed on the citizens of this Commonwealth, from which they never can

be relieved by all the efforts of the General Assembly whilst any part of the debts contracted by

any state in the American Union, and so assumed, shall remain unpaid; for it is with great

anxiety your memorialists perceive that the said act, without the smallest necessity, is calculated

to extort from the General Assembly the power of taxing their own constituents for the payment

of their own debts in such a manner as would be best suited to their own ease and convenience.

Your memorialists cannot suppress their uneasiness at the discriminating preference which is

given to the holders of the principal of the Continental debt over the holders of the principal of

the state debts, in those instances where states have made ample provision for the annual

payment of the interest and where, of course, there can be no interest to compound with the

principal, which happens to be the situation of this Commonwealth.

The continental creditors have preferences in other respects which the General Assembly forbear

to mention, satisfied that Congress must allow that policy, justice, and the principles of public

credit abhor discrimination between fair creditors.

Your memorialists turn away from the impolicy and injustice of the said act and view it in

another light, in which, to them, it appears still more odious and deformed.

During the whole discussion of the federal constitution by the convention of Virginia, your

memorialists were taught to believe “that every power not granted, was retained;” under this

impression, and upon this positive condition, declared in the instrument of ratification, the said

Government was adopted by the people of this Commonwealth; but your memorialists can find

no clause in the constitution authorizing Congress to assume debts of the states! As the

guardians, then, of the rights and interests of their constituents; as sentinels placed by them over

the ministers of the Federal Government, to shield it from their encroachments, or at least to

sound the alarm when it is threatened with invasion; they can never reconcile it to their

consciences silently to acquiesce in a measure which violates that hallowed maxim—a maxim,

on the truth and sacredness of which, the Federal Government depended for its adoption in this

Commonwealth. But this injudicious act not only deserves the censure of the General Assembly,

because it is not warranted by the constitution of the United States, but because it is repugnant to

an express provision of that constitution. This provision is “that all debts contracted, and

engagements entered into, before the adoption of this constitution, shall be as valid against the

United States, under this constitution, as under the Confederation;” which amounts to a

constitutional ratification of the contracts respecting the state debts in the situation in which they

existed under the Confederation; and, resorting to that standard, there can be no doubt that, in the

present question, the rights of states, as contracting parties with the United States, must be

considered as sacred.

The General Assembly of the Commonwealth of Virginia confide so fully in the justice and

wisdom of Congress, upon the present occasion, as to hope that they will revise and amend the

aforesaid act generally and repeal, in particular, so much of it as relates to the assumption of the

State debts.

1790, December 23.

Agreed to by the Senate