t
Washington at once began to consult the Chief Justice, the Vice
President, his three secretaries, and the Attorney-general on matters of
importance. At first he asked their opinions individually and in
writing, but toward the end of his first term he convened a general
meeting of the heads of departments, and by so doing set a custom out of
which, in time, the "Cabinet" has grown.

%213. The Origin of the National Debt.%--As soon as Hamilton was made
Secretary of the Treasury, it became his duty, in accordance with an
order from Congress, to prepare a plan for the payment of the debts
contracted by the Continental Congress. When that body was unexpectedly
called on, in May, 1775, to conduct the war, it had nothing with which
to pay expenses, and was forced to use all sorts of means to
raise money.

[Illustrations: Continental money]

%214. Paper Money.%--The first resort was the issue, during 1775 and
1776, of six batches of Continental "bills of credit," amounting in all
to $36,000,000. These "bills" were rudely engraved bits of paper,
stating on their face that "This bill entitles the bearer to receive
---- Spanish milled dollars, or the value thereof in gold or silver."
They were issued in sums of various denominations, from one sixth of a
dollar up, and were to be redeemed by the states. The amount assigned
each state for redemption was in proportion to the supposed number of
its inhabitants.

%215. Loan-office Certificates.%--In 1776 Congress tried another
means. It opened a loan office in each state and called on patriotic
people to come forward and loan it money, receiving in return pieces of
paper called "loan-office certificates." Interest was to be paid on
these; but after a while Congress, having no money with which to pay
interest, was forced to resort to another form of paper, called
"interest indents."

%216. The Congress Lottery.%--The loan office having failed to bring
in as much money as was needed, Congress, toward the close of 1776, was
driven to seek some other way, and resorted to a lottery. A certain
number of tickets were sold, after which a drawing took place, and all
who drew prizes were given certificates payable at the end of
five years.

%217. More Bills of Credit.%--But the sale of tickets went off so
slowly that Congress had to go back to the issue of bills of credit. In
1777, therefore, the printing press was again put to work, and issues
were made in rapid succession, till more