. 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.

Madison was most active in making that branch of the case the leading
issue, and in a series of elaborate speeches which cannot now be read
without regret, he urged that the present holders should be allowed only
the highest market price previously recorded, and that the residue should
go to the original holders. Boudinot at once pointed out that there was
nothing on record to show who might be an original bona fide holder. Great
quantities of the certificates of indebtedness had, as a mere matter of
convenience, been issued to government clerks who afterwards distributed
them among those who furnished supplies to the government or who performed
services entitling them to pay. He mentioned that he himself appeared on
the record as original holder in cases wherein he had really acted in
behalf of his neighbors to relieve them of the trouble of personal
appearance. Madison's proposition would therefore invest him with a legal
title to property which really belonged to others. But this and other
evidence of the real effect of Madison's proposal failed to move him,
further than to cause him to declare that "all that he wished