The First Soveregn Default of the United States on the Military

QUESTION: I had an argument with my son that what they teach in school is never the truth, not even about history. I was trying to find that writing you did years ago that the GI Bill was enacted only because they defaulted on the soldiers twice before. If I remember correctly, I think you said Congress fled Philadelphia because of a riot by the soldiers from the Revolution that they also defaulted on as they did with the debts from the Continental Congress. My son said he never heard such a story and called it a conspiracy theory. We seem to be drifting further apart. We cannot agree on much of anything these days.

I guess Mark Twain’s comment about his father is still valid. It reminds me of that song in The Living Years. Perhaps we are in this endless generational war. Is this part of 2032?

Paul

ANSWER: Yes, Paul. It seems that these times are even dividing families. From the emails I get, I see that this is not unique. It appears to have begun with COVID. I had dinner with a friend who said his sister is in California and they have not spoken in years. My old partner Jack King, out of the blue, turned to me and said if he died, make sure his children got nothing and protect his second wife. Another two friends also no longer talk to their kids. Perhaps this is just part of the cycle going into 2032. We are witnessing that publicly with RFK as well.

My father wanted me to be a lawyer, but I did not want to follow that path. But when he was on his deathbed, we settled our differences with respect, and I am thankful for that. He was proud of me but would say that only to friends. Likewise, I always respected my father and what he taught me. I guess I had not told him how much I was also proud of him. At least we came to that understanding before he died. I guess those days of pride and respect are old-fashioned ideas in these days of chaos and uncertainty.

Perhaps your son respects you but cannot get the guts to tell you. Hopefully, he will come to see that what they teach in school is never the full story. There are no courses that connect all the dots. The only thing I regret is that the family name will die with me, although I am Martin VII. I have no heir to carry the name, so I guess that also dies in 2032. As a boy, I was always told that I had a duty to the family to name my son Martin, according to the traditional Scottish tradition. A neighbor who is in his early 70s, married someone in their 30s, and they are a great match. His wife is having twins. I am very happy for him since he, too, is estranged from his prior children. It seems to be more common than we perhaps thought when you first have kids. Guess that was the Hollywood sales job – happily ever after.

Turning to your question about defaulting on the military, you remembered correctly. As I pointed out, the new United States defaulted on ALL debts of the previous Continental Congress despite Article VI expressly stating in the Constitution that they would honor those debts. When George Washington became the first US president in 1789, the capital city of the United States was New York. Then, in 1792, he was re-elected for his second term. However, the capital district had moved to Philadelphia. They may teach that Philadelphia was the capital for ten years. Yet, before becoming the capital, Philadelphia had been the home to Congress. That is where even the Declaration of Independence was signed. But there is a lot more to it than just that.

What they do NOT teach in school because it would taint the image of the government. Congress fled Philadelphia much like the Senate of Rome fled when Julius Caesar crossed the Rubicon, and the people did not support the Senate but cheered Caesar. The unspoken history is that in 1783, there was an uprising of the military against Congress, who refused to pay what they owed them. They called it the Pennsylvania Mutiny that chased Congress out of Philadelphia.

The Pennsylvania Mutiny of 1783 was an anti-government uprising over a sovereign default/debt crisis, not unlike Caesar crossing the Rubicon—nearly 400 soldiers of the Continental Army stormed Congress on June 17th, 1783. The mutiny and the refusal of the Executive Council of Pennsylvania to stop it was very significant. If you watched that series, I recommended the Sons of Liberty. The one man who walked out and refused to sign the Declaration of Independence was John Dickinson, who just so happened to be the President of the Executive Council of Pennsylvania and refused to act. I believe he was against the entire Revolution and supported the King. When Congress refused to honor the debts owed to the soldiers, curiously, Dickinson sought revenge and stood down, allowing the troops to go after Congress.

From March 1781, Congress shared the Pennsylvania State House (now known as Independence Hall) with the Supreme Executive Council of the Commonwealth of Pennsylvania. Under the authority of the Articles of Confederation, Congress did not have direct control over the military, except in times of war, and was largely reliant on state militias to enforce laws and keep order. There had been a previous uprising called the Mutiny of the Pennsylvania Line that occurred in January 1781. The soldiers had legitimate grievances since they were not paid in almost a year.

The Continental Army soldiers stationed in Philadelphia sent a message on June 17th, 1783, demanding payment as contractually required for their service during the American Revolutionary War. Congress had refused to pay the army. The soldiers, in response, threatened to take action that day if their complaints were not addressed. Congress just ignored them, calling their bluff. The soldiers did not act on their threat. However, two days later, Congress received word that about 80 soldiers had left their post at Lancaster, Pennsylvania, about 60 miles outside of Philadelphia. They joined the soldiers stationed in Philadelphia. Now, the group was nearly 500 men. They seized control of all weapons and stores and munition depot.

Now, three days after their initial demand on the morning of June 20th, the State House was mobbed by a huge number of soldiers demanding payment. The soldiers blocked the door and initially refused to allow the delegates to leave. Alexander Hamilton (1757-1804), who at the time was a delegate from New York, stepped forward to persuade the soldiers to allow Congress to meet later to address their concerns. The soldiers yielded, allowing the members of Congress to adjourn that afternoon peacefully. However, Hamilton then called a small Congressional committee that night in secret to draft a message to John Dickinson, the President of the Executive Council of Pennsylvania. They asked him to protect Congress from the mutineers since they had no military. Hamilton had no intention of paying them. The letter threatened Dickinson that Congress would be forced to move elsewhere if Dickinson did not act.

The next day, June 21st, 1783, the Congress met again at the State House with members of the Pennsylvania Executive Council, including John Dickinson. The members of Congress petitioned Dickinson to protect the federal government. Dickinson said he would talk with the militia commanders and reply to Congress the next day. Dickinson, who walked out of the convention and refused to sign the Declaration of Independence, refused Congress’s request to protect them. The members of Congress then realized that perhaps Dickinson wanted the Congress to be wiped out. Congress fled Philadelphia and moved north to Nassau Hall in Princeton, New Jersey, which became the next capital of the United States.

George Washington, learning about the mutiny in Philadelphia on June 24th, ordered 1,500 troops under the joint command of Major General Robert Howe and Major General William Heath to suppress the mutiny. Some of the mutineers were finally arrested. Congress then called an investigation into the event from a position of safety in Princeton, New Jersey.

Some have argued that John Dickinson did not act because he was uncertain that the local militiamen would comply and protect Congress from their fellow soldiers. Yet, many suspected Dickinson’s loyalties since he had been an officer in the militia and supported the soldiers’ actions. Some also believed that since Dickinson refused to sign the Declaration of Independence, he was anti-federalist and against the entire Revolution. Dickinson’s refusal to comply with Congress’s request to bring full military action against the soldiers caused some hesitancy regarding Dickinson.

Congress then moved from Princeton, New Jersey, in early November 1783, transferred to the next capital, Annapolis, Maryland, and then back to Trenton, New Jersey, in November 1784. Finally, Congress then moved again to New York City in January 1785. It was not until the Constitutional Convention in 1787 that the delegates decided to meet again in Philadelphia. Many assumed that Pennsylvania failed to protect Congress in 1783 due to Dickinson. This incident led many to insist that the federal government should have a separate location for its own security. Washington, DC, was a compromise between the North and the South. Jefferson agreed to support Hamilton’s idea of a national debt if the capital was to be removed to the middle of the colonies with land donated by Maryland and Virginia.

At the Constitutional Convention, the delegates agreed on Article I, Section 8, giving Congress the power “to exercise exclusive legislation in all cases whatsoever, over such District (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States.”

After the Constitution was ratified by the colonies/states in 1788, the delegates agreed to keep New York City as the temporary federal capital. 1790, Congress passed the Residence Act, which created the District of Columbia. Robert Morris (1734–1806), a major funder of the Revolution, convinced Congress to return to Philadelphia while Washington, DC, was being built. As a result, the Residence Act declared Philadelphia to be the temporary capital for 10 years. In a final attempt to convince Congress to keep the capital in Philadelphia, the city began constructing a new presidential palace and expanding to Congress Hall. Those efforts failed, no doubt influenced by the failure of Dickinson in 1783. Congress met in Philadelphia for the last time on May 14th, 1800.

Herbert Hoover lost the 1932 election largely because he called out the army against the protests of the World War I veterans, the Bonus Army, who were protesting simply to be paid what they had been promised. Just as the 1783 Mutiny over the refusal to honor the promises to veterans, they pulled the same stunt on the World War I veterans. When World War II came, Congress passed the GI Act and this time honored their promises for if they did not, the Neocons could not expand around the world following Korea.

The Freeman’s Journal or The North-American Intelligencer
Philadelphia, Pennsylvania · Wednesday, July 02, 1783

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