ed an augmentation of the duties on imported
wines, spirits, tea, and coffee, to enable the treasury to meet the
increased demand that would be made upon it; and a duty on domestic
spirits was also recommended. Serious trouble grew out of the latter
measure when adopted and put in force.

Hamilton's report, sent to Congress on the fourteenth of January, was
taken up for consideration in the house of representatives on the
twenty-eighth; but action was postponed until the eighth of February.
Its propositions, especially the one relating to the assumption of the
state debts, were vehemently opposed, chiefly because of their tendency
to a centralization of power, as giving an undue influence to the
general government, and as being of doubtful constitutionality. Many in
different parts of the Union thought they saw great political evil in
this financial union of the states; and Virginia, above all others, most
earnestly opposed the scheme. It was believed that the funding of the
state debts would materially benefit the northern states, in which was
almost the entire capital of the country, while the southern states
could see no benefit for themselves.

Finally, on the ninth of March, a bill predicated upon the secretary's
report passed in committee of the whole by a small majority, and went to
the house for discussion. This continued from time to time until August,
when, on the fourth, an act was passed embodying essentially the several
propositions in Hamilton's report. It authorized the president to borrow
twelve millions of dollars, if so much were found necessary, for
discharging the arrears of interest and the overdue installments of the
foreign debt, and for the paying off the whole of that debt, could it be
effected on advantageous terms, the money thus borrowed to be reimbursed
within fifteen years. It also authorized the opening of a new loan,
payable in certificates of the domestic debt at par value, and in
continental bills of credit at the rate of one hundred for one.
Certificates were to be issued for subscriptions in the interest of the
domestic debt to the full amount, redeemable at the pleasure of the
government, and bearing interest at the rate of three per cent., the
interest to be paid quarterly, and to commence with the first day of
January, 1791; all interest becoming due on continental certificates, up
to that time, to be funded as above. Subscriptions in the principal of
the domestic debt were to bea