That the financial structure of the Continental Congress had collapsed and that immediate remedies were necessary Jefferson knew as well and probably better than any other member of the Cabinet. He had not the expert knowledge of Hamilton, but more than once he had had to deal with financial questions, and when in Paris had displayed considerable skill in dealing with the members of the Committee of Commerce. He had prepared schedules for the payment of the French and Dutch loans and discussed finances with Dutch bankers in Amsterdam. Furthermore, his governorship of Virginia during the war had acquainted him with the question of State debts. If he could be tricked and made to hold the candle, as he said, there was no man who could resist the superior genius and Machiavellism of the arch financier of the United States. As a matter of fact, if he was hoodwinked, he was not at the beginning, at least, a blind or an unwilling victim. Following the financial reorganization defined by the Constitution and the appointment of a Secretary of the Treasury, according to the Act of 1789, Hamilton prepared for the period under consideration four documents: Report on Public Credit, January 9, 1790; Report on a National Bank, December 5, 1790; Report on the Establishment of a Mint, May 1, 1791; Report on Manufactures, December 5, 1791. The first subject for consideration was the national debt. The foreign debt was unquestionably a matter of national honor and had to be paid in full, according to the terms of contract: with the arrears of interest it amounted to $11,710,000. The domestic debt was estimated at $27,383,000 for the principal, $13,030,000 for accrued interest and $2,000,000 for unliquidated debt. After some opposition it was finally decided that holders of certificates would receive their face value with interest. But there remained the question of States debts which was hopelessly confused and destined to lead to a bitter controversy. The reorganization plan proposed that repayment could be made in a more orderly way through some sort of a central organization rather than through the States, and outlined the famous "Assumption" by which the Federal Government would "assume", with a discount to be determined, the debts incurred by the several States during the course of the war. It naturally meant that additional revenue had to be raised by Federal measures and consequently distributed between all the States, whose debts varied in nature and amount from State to State, some of which having already proceeded to a semi-reorganization, while others, having not suffered from the war, were financially in good condition. The opposition came naturally from the Southern States, whose population was smaller in comparison with the Northern States.