rders of the Treasury. He touched on the
merits of the funding system, observed there was a difference of opinion
about it, some thinking it very bad, others very good; that experience
was the only criterion of right which he knew, and this alone would
decide which opinion was right. That for himself, he had seen our
affairs desperate and our credit lost, and that this was in a sudden and
extraordinary degree raised to the highest pitch. I told him, all that
was ever necessary to establish our credit, was an efficient government
and an honest one, declaring it would sacredly pay our debts, laying
taxes for this purpose, and applying them to it. I avoided going further
into the subject. He finished by another exhortation to me not to decide
too positively on retirement, and here we were called to breakfast.

October the 31st, 1792. I had sent to the President, Viar and Jaudenes's
letter of the 29th instant, whereupon he desired a consultation of
Hamilton, Knox, E. Randolph, and myself, on these points. 1. What notice
was to be taken hereof to Spain. 2. Whether it should make part of the
communication to the legislature. I delivered my opinion, that it ought
to be communicated to both Houses, because the communications intended
to be made, being to bring on the question, whether they would declare
war against any, and which of the nations or parts of the nations of
Indians to the south, it would be proper this information should be
before them, that they might know how far such a declaration would lead
them. There might be some who would be for war against the Indians, if
it were to stop there, but who would not be for it, if it were to lead
to a war against Spain. I thought it should be laid before both Houses,
because it concerned the question of declaring war, which was the
function equally of both Houses. I thought a simple acknowledgment of
the receipt of the letter should be made by me to the Spanish Charges,
expressing that it contained some things very unexpected to us, but that
we should refer the whole, as they had proposed, to the negotiators
at Madrid. This would secure to us a continuation of the suspension
of Indian hostilities, which the Governor of New Orleans said he had
brought about till the result of the negotiation at Madrid should be
known; would not commit us as to running or not running the line, or
imply any admission of doubt about our tentorial right; and would avoid
a rupture with Spain, which