funding the public debt, in a masterly letter to the president of
Congress. On December 16 a sinking fund was provided for by a
resolution, which, though inadequate to the purpose, was at least a
declaration of principle. In February, 1784, Morris notified Congress of
his intended retirement from office. He may justly be termed the father
of the American system of finance. In his administration he inflexibly
maintained the determination, with which he assumed the office, to apply
the public funds to the purpose to which they were appropriated. He
declared that he would "neither pay the interest of our debts out of the
moneys which are called for to carry on the war, nor pay the expenses of
the war from the funds which are called for to pay the interest of our
debts." One new feature of Morris's administration was the beginning of
the sale of public lands.

On the retirement of Mr. Morris, November, 1784, a new board of treasury
was charged with the administration of the finances, and continued in
control until September 30, 1788, when a committee, raised to examine
into the affairs of the department, rendered a pitiful report of
mismanagement for which the board had not the excuse of their
predecessors during the war. They had only to observe the precepts which
Morris had enunciated, and to follow the methods he had prescribed, with
the aid of the assistants he had trained. But the taxes collected had
not been covered into the Treasury by the receivers. Large sums
advanced for secret service were not accounted for; and the entire
system of responsibility had been disregarded. John Adams attributed all
the distresses at this period to "a downright ignorance of the nature of
coin, credit and circulation;" an ignorance not yet dispelled. More
truly could he have said that our distresses arose from willful neglect
of the principle of accountability in the public service.

The first Congress under the new Constitution met at New York on March
4, 1789, but it was not until the autumn that the executive
administration of the government was organized by the creation of the
three departments: State, Treasury, and War.

The bill establishing the Treasury Department passed Congress on
September 2, 1789. Hamilton was appointed secretary by Washington on
September 11. On September 21 the House directed the secretary to
examine into and report a financial plan. On the assembling of Congress,
June 14, 1790, Hamilton communicated to