Gentlemen Office of Army Accounts November 2. 1786. In Conformity to the directions of the Board of the 28 Ult^o. I have considered the Subject of M^r. Grahams Letter of the 23^d Sep^t. they desire to Submit the following Opinion — 1. That the States were bound by the Acts of Congress and must rely on them for their Authority to Support their Payments to which Principles the Commissioners ought invariably to adhere. 2^d That during the Period of the Old Emissions as the Acts and Promises of Congress were in this money & therefore the States were not Warranted to make any other Payments than in those Emissions. 3^d That this Money where paid is to be Considered as a full and Compleat discharge and Subject to no after Allowances for depreciation unless a Particular Resolve of Congress has given a further Latitude which Cannot Operate as a rule for the allowances of any other Cases than those explicitly mentioned therein. I have founded this Opinion on the following Reasons. On the first Point: Because the States Acted each for themselves alone, and therefore had no right of themselves to lay the Union an expense which would not only introduce disproportionate and improper allowances but Contradict the Principles of the Confederation which has directed the Manner the National expenses and moneys shall be ascertained and appropriated, which no Individual State can Contravene; and because in Cases of the most Apparent Equity no one of the State Commissioners from the Want of a knowledge of the Circumstances of the demand of other States can be an Adequate Judge of the extent of a Precedent admitted by him. I I have to observe on the Second Point what is that the Promises of Congress are to be considered during the time of the Old Emissions as made in that Currency, that this Money was the only medium known in all Transactions, that many values of Pay were fixed in it much higher than were proper to be done in Specie, that Congress have ever in their Acts Considered & is that as above, and related the pay of every Officer and detachment under them, when this money ceased to have a currency in the Union, and that it appears to be a greater Absurdity that each State should be allowed to pay a Sgt. [undecipherable] to its Privates in the Militia at the same time that the Soldiers in the Line of the same State could not be allowed by the Resolves of Congress any further Sum than 40/ in the same in money. and on the Last Point, That the States Cannot allow a Depreciation on their Payments unless authorized by a Particular Resolve of Congress — I am of this Opinion not only for the reasons mentioned under the foregoing head but because this money being issued under the faith of the Union was made a tender & [undecipherable] of which Law there is no general repeal & in so as to be doubted whether the Present Authority of the United States can make a Law to set a side [undecipherable] made under their sanction & whether a greater Concern of Injustice would not arise from such a measure than what now Exists in Consequence of such Laws. I am therefore of Opinion that every exception to the tender Laws ought to be construed in its strictest sense, and that no depreciation be permitted from the Words of the Act granting such an Exception. If the above Principles are admitted it follows — That the Commissioners are bound in their allowances of the States Payments in old money to the rates of Pay fixed in that Currency by the Resolves of Congress without considering before it was Officially known that it was deprecated, except in Cases which Congress has specially exempted that their allowances were given to the Militia: Whether a Depreciation on them has been granted is now to be examined. The Acts of Nov. 4. 1775, of June 3. and Sep^t 19. 1776, and of June 6. 1778 appear to place the Militia while in Service at the same rate of pay and Subsistence with the rest of the Continental Forces, excepting that the Officers and Men should bear a proportion to each other that the provisions granted by the Resolves of August 17. 1779 was not extended to the Militia. The Resolves which respect the pay of the Army in that Period are Principally the following, June 14. July 29. Nov. 4. 8. December 8. 1775. March 30. June 5. 28. [undecipherable] 7. 1776. [undecipherable] May 17. & June 21. 1778, none of which granting more than Six dollars & two thirds p month to a foot Soldier. I presume will Warrant a further Payment. There is however a Resolve of the 10^th day of [undecipherable] 1780, which [undecipherable] persons out of the Line of the Army under Independent [undecipherable] as was then in Service a Depreciation on their [undecipherable] pay, provided that no person shall take benefit of the same, unless he was then engaged in the War or for three years & should afterwards engage in the War, and I am of Opinion that this promise is evidently made as a new grant to the Army, that it extends to no other Characters than those to whom the same is Confin'd and that Congress have always viewed it in the same light, as appears by the Particular Cases in which they have decided in their Subsequent Resolves of Aug. 8. 1780, May 13. Aug 13. 1785, & July 25^th 1786. The Acts of June 1. 1784 & June 12. 1785, I understand to Confirm the Credits to be made to the States under the same, to such Payments as were due from the United States, that is, such as the Resolves of Congress would warrant the Payments of and not as M^r. Graham supposes to make any new grant or to Offer an unauthorized Payment. The other question proposed by M^r. Graham which is whether waggon money ought to be allowed. The Militia may be divided into an Allowance to Officers and to privates — in respect to the former as the Line of the Army have been always allowed Waggons in a Certain proportion from the Q^r M^r Department, I am of Opinion that the Officers of the Militia were admitted