TO THE PRESIDENT OF CONGRESS. Office of Finance, March 8th, 1783. Sir, I received yesterday afternoon a report, which is to be considered on Monday the 10th instant, and with it I received an order to transmit my observations. The shortness of the time obliges me to ask indulgence for deficiencies or inaccuracies. I have always believed that Congress were disposed to do _justice_ to the public creditors, and I shall presume that the _power_ of Congress will be exerted for that purpose. There appear, therefore, two principal points to be considered. I. What justice requires; and, II. What Congress have power to do. To the first I answer. _Justice requires that the debt be paid._ The _principles_ of justice require that from a government, which a _court_ of justice exacts from an individual. Government have no right to oblige creditors to commute their debts for anything else. Any revenues, therefore, to be pledged for the restoration of public credit must be such, that money may be borrowed on them to pay those to whom it is due; any plan which falls short of that object will not do justice. And no plan will embrace that object unless it be such that under it individuals would prefer government security to any other. In our particular situation it appears clear, that such public creditor has a complete right to demand his whole debt from Congress, and to name the terms on which he will forego it, and that Congress have a similar right in regard to the States. In order to determine on the second question, viz. the _power_ of Congress, we must resort to the confederation. By the eighth article it will appear, that Congress have a right to determine on the sum to be paid by the States, and the time of payment; and that this sum is to be paid by the States in proportion to their respective value, or an estimation to be made in the mode to be appointed by Congress. It is, therefore, in the _power_ of Congress to call for payment of the whole debt by any day; such for instance as the 1st of January; and to have a valuation made some previous day; such for instance as the 1st of September. _The right of Congress is perfect, and the duty to pay absolute._ It appears necessary that this power be exerted in the most _decisive form_, and that whatever _general plan_ of finance may be adopted, the concurrence of each State in such plan should be admitted _as an alternative_ for not paying her apportioned quota of the whole debt. My reasons are these. 1st. It will not be believed, that Congress have no power to do justice until the power which they have is exerted. 2dly. The public creditors have a right to expect that exertion. 3dly. Until it be made, a compliance with the demands of Congress will be considered by the States as a matter of favor and not of right. 4thly. Congress having a right to the whole money, it follows that they have the _exclusive_ right to name those precise terms on which they will commute it.