The question whether or not any discrimination could be made between
original holders of the public securities and those who had acquired them
by purchase was considered at length by Hamilton in his report. The public
securities had been at such a heavy discount that now, if they were to be
met at face value, speculators would reap large profits. Hamilton put the
case of the opposition as strongly as possible. It might be urged that it
was unreasonable "to pay twenty shillings in the pound to one who had not
given more for it than three or four; and it is added that it would be
hard to aggravate the misfortune of the first owner, who, probably through
necessity, parted with, his property at so great a loss, by obliging him
to contribute to the profit of the person who had speculated on his
distresses." Nevertheless, Hamilton submitted considerations showing that
discrimination would be "equally unjust and impolitic, as highly injurious
even to the original holders of public securities, as ruinous to public
credit." It is unnecessary to repeat the lucid argument by which Hamilton
demonstrated the soundness of his position, for security of transfer is
now well understood to be an essential element of public credit; but the
special point of interest is that the debate simply ignored Hamilton's
argument and rambled along over the superficial aspects of the case,
dwelling upon the sorrows of those who had parted with their holdings, and
exhibiting their situation as the most important matter to be considered.
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