Mr. RUTLEDGE and Mr. MERCER proposed, that the impost of five per cent, as altered and to be recommended to the states, should be appropriated exclusively, first to the interest of the debt to the army, and then, in case of surplus, to the principal. Mr. Rutledge urged, in support of this motion, that it would be best to appropriate this fund to the army as the most likely to be obtained, as their merits were superior to those of all other creditors, and as it was the only thing that promised, what policy absolutely required, some satisfaction to them.

Mr. WILSON replied, that he was so sensible of the merits of the army, that if any discrimination were to be made among the public creditors, he should not deny them perhaps a preference, but that no such discrimination was necessary; that the ability of the public was equal to the whole debt, and that before it be split into different descriptions, the most vigorous efforts ought to be made to provide for it entire; that we ought first, at least, to see what funds could be provided, to see how far they would be deficient, and then, in the last necessity only, to admit discriminations.

Mr. GORHAM agreed with Mr. Wilson. He said an exclusive appropriation to the army would, in some places, be unpopular, and would prevent a compliance of those states whose citizens were the greatest creditors of the United States; since, without the influence of the public creditors, the measure could never be carried through the states; and these, if excluded from the appropriation, would be even interested in frustrating the measure, and keeping, by that means, their cause a common one with the army.

Mr. MERCER applauded the wisdom of the Confederation in leaving the provision of money to the states; said that when this plan was deviated from by Congress, their objects should be such as were best known and most approved; that the states were jealous of one another, and would not comply unless they were fully acquainted with, and approved, the purpose to which their money was to be applied; that nothing less than such a preference of the army would conciliate them; that no civil creditor would dare to put his claims on a level with those of the army; and insinuated that the speculations which had taken place in loan-office certificates might lead to a revision of that subject an principles of equity; that if too much were asked from the states, they would grant nothing. He said that it had been alleged, that the large public debt, if funded under Congress, would be a cement of the Confederacy. He thought, on the contrary, it would hasten its dissolution; as the people would feel its weight in the most obnoxious of all forms—that of taxation.

On the question, the states were all no, except South Carolina, which was ay.

A motion was made by Mr. RUTLEDGE, seconded by Mr. BLAND, to change the plan of the impost in such a manner as that a tariff might be formed for all articles that would admit of it; and that a duty, ad valorem, should be collected only on such articles as would not admit of it.

In support of such alteration, it was urged that it would lessen the opportunity of collusion between collector and importer, and would be more equal among the states. On the other side, it was alleged that the states had not objected to that part of the plan, and a change might produce objections; that the nature and variety the imports would require necessarily the collection to be ad valorem on the greater part of them; that the forming of a book of rates would be attended with great difficulties and delays; and that it would be in the power of Congress, by raising the rate of the article, to augment the duty beyond the limitation of five per cent, and that this consideration would excite objections on the part of the states. The motion was negatived.

A motion was made by Mr. HAMILTON, seconded by Mr. WILSON, that, whereas Congress were desirous that the motives and views of their measures should be known to their constituents in all eases where the public safety would admit, When the subject of finances was under debate, the doors of Congress should be open. Congress adjourned, it being the usual hour and the motion being generally disrelished. The Pennsylvania delegates said, privately, that they had brought themselves into a critical situation by dissuading their constituents from separate provision for creditors of the United States, within Pennsylvania, hoping that Congress would adopt a general provision, and they wished their constituents to see the prospect themselves, and to witness the conduct of their delegates. Perhaps the true reason was, that it was expected the presence of public auditors, numerous and weighty, in Philadelphia, would have an influence, and that it would be well for the public to come more fully to the knowledge of the public finances.

A letter was received from Mr. William Lee, at Ghent, notifying the desire of the emperor of Austria to form a commercial treaty with the United States, and to have a resident from them. Committed to Messrs. Izard, Gorham, and Wilson.

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