that as to that interested spirit in the legislature, it was what could not be avoided in any government, unless we were to exclude particular descriptions of men, such as the holders of the funds, from all office.  I told him, there was great difference between the little accidental schemes of self-interest, which would take place in every body of men, and influence their votes, and a regular system for forming a corps of interested persons, who should be steadily at the orders of the Treasury.  He touched on the merits of the funding system, observed there was a difference of opinion about it, some thinking it very bad, others very good; that experience was the only criterion of right which he knew, and this alone would decide which opinion was right.  That for himself, he had seen our affairs desperate and our credit lost, and that this was in a sudden and extraordinary degree raised to the highest pitch.  I told him, all that was ever necessary to establish our credit, was an efficient government and an honest one, declaring it would sacredly pay our debts, laying taxes for this purpose, and applying them to it.  I avoided going further into the subject.  He finished by another exhortation to me not to decide too positively on retirement, and here we were called to breakfast.

October the 31st, 1792.  I had sent to the President, Viar and Jaudenes’s letter of the 29th instant, whereupon he desired a consultation of Hamilton, Knox, E. Randolph, and myself, on these points. 1.  What notice was to be taken hereof to Spain. 2.  Whether it should make part of the communication to the legislature.  I delivered my opinion, that it ought to be communicated to both Houses, because the communications intended to be made, being to bring on the question, whether they would declare war against any, and which of the nations or parts of the nations of Indians to the south, it would be proper this information should be before them, that they might know how far such a declaration would lead them.  There might be some who would be for war against the Indians, if it were to stop there, but who would not be for it, if it were to lead to a war against Spain.  I thought it should be laid before both Houses, because it concerned the question of declaring war, which was the function equally of both Houses.  I thought a simple acknowledgment of the receipt of the letter should be made by me to the Spanish Charges, expressing that it contained some things very unexpected to us, but that we should refer the whole, as they had proposed, to the negotiators at Madrid.  This would secure to us a continuation of the suspension of Indian hostilities, which the Governor of New Orleans said he had brought about till the result of the negotiation at Madrid should be known; would not commit us as to running or not running the line, or imply any admission of doubt about our tentorial right; and would avoid a rupture with Spain, which was much to be desired, while we had similar points to discuss with Great Britain.