Mr. Hamilton, to whom the organization of the financial system was due, and who left public life just as Gallatin began his Congressional career, had belonged to a different school and had acted on different principles. Adhering more or less closely to the English financial and economical theories then in vogue, he had intentionally constructed a somewhat elaborate fabric, of which a considerable national debt was the foundation. Had Mr. Hamilton foreseen in 1790 the course public affairs would take during the next ten years, he would perhaps have modified his plan and would have guarded more carefully against overloading the Treasury; but at that moment it was not unreasonable to suppose that what the country wanted was centralization, and that a national debt was one means of consolidating divergent local interests. Mr. Hamilton, therefore, accepted as much debt as he thought the country could reasonably bear, and allowed the rest to be expunged. In forming this debt he had at least in one respect permitted an unnecessary and very mischievous addition to be made to the acknowledged and existing national burden. In order to settle the accounts between the States, he had permitted Congress--perhaps forced Congress--to assume a large proportion of the State debts. The balance to be adjusted by payment of the debtor to the creditor States was ultimately ascertained to be a little more than $8,000,000. To settle this account as nearly as it was settled in fact, required an assumption of State debts to the amount of $11,609,000; but, instead of waiting for a settlement of accounts, Congress had, in 1790, voted to assume a certain amount of State debts at once and to charge each State in the ultimate settlement with the amount assumed on her account. A sum of over $18,000,000 was thus funded, and so much debt transferred from the States to the national government. In addition to this sum a further amount of about $3,500,000 was funded in order to get rid of the balances in favor of the creditor States. Altogether, including back interest from 1790 to 1795, a debt of $22,500,000 was imposed on the new government, where half that sum would have answered the purpose, and of this about $2,000,000 was actually new debt, created for the occasion.