Constitution of the United States/Art. VI/Clause 1 Obligations of New Federal Government

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Constitutional Law Treatise
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Constitutional Law Outline
Introduction
The Preamble
Article I Legislative Branch
Art. I, Section 1 Legislative Vesting Clause
Art. I, Section 2 House of Representatives
Art. I, Section 3 Senate
Art. I, Section 4 Congress
Art. I, Section 5 Proceedings
Art. I, Section 6 Rights and Disabilities
Art. I, Section 7 Legislation
Art. I, Section 8 Enumerated Powers
Art. I, Section 9 Powers Denied Congress
Art. I, Section 10 Powers Denied States
Article II Executive Branch
Art. II, Section 1 Function and Selection
Art. II, Section 2 Powers
Art. II, Section 3 Duties
Art. II, Section 4 Impeachment
Article III Judicial Branch
Art. III, Section 1 Vesting Clause
Art. III, Section 2 Justiciability
Art. III, Section 3 Treason
Article IV Relationships Between the States
Art. IV, Section 1 Full Faith and Credit Clause
Art. IV, Section 2 Interstate Comity
Art. IV, Section 3 New States and Federal Property
Art. IV, Section 4 Republican Form of Government
Article V Amending the Constitution
Article VI Supreme Law
Article VII Ratification
First Amendment: Fundamental Freedoms
Religion
Establishment Clause
Free Exercise Clause
Free Speech Clause
Freedom of Association
Second Amendment: Right to Bear Arms
Third Amendment: Quartering Soldiers
Fourth Amendment: Searches and Seizures
Fifth Amendment: Rights of Persons
Sixth Amendment: Rights in Criminal Prosecutions
Seventh Amendment: Civil Trial Rights
Eighth Amendment: Cruel and Unusual Punishment
Ninth Amendment: Unenumerated Rights
Tenth Amendment: Rights Reserved to the States and the People
Eleventh Amendment: Suits Against States
Twelfth Amendment: Election of President
Thirteenth Amendment: Abolition of Slavery
Thirteenth Amend., Section 1 Prohibition on Slavery and Involuntary Servitude
Thirteenth Amend., Section 2 Enforcement
Fourteenth Amendment: Equal Protection and Other Rights
Fourteenth Amend., Section 1 Rights
Fourteenth Amend., Section 2 Apportionment of Representation
Fourteenth Amend., Section 3 Disqualification from Holding Office
Fourteenth Amend., Section 4 Public Debt
Fourteenth Amend., Section 5 Enforcement
Fifteenth Amendment: Right of Citizens to Vote
Fifteenth Amend., Section 1 Right to Vote
Fifteenth Amend., Section 2 Enforcement
Sixteenth Amendment: Income Tax
Seventeenth Amendment: Popular Election of Senators
Eighteenth Amendment: Prohibition of Liquor
Eighteenth Amend., Section 1 Prohibition
Eighteenth Amend., Section 2 Enforcement of Prohibition
Eighteenth Amend., Section 3 Ratification Deadline
Nineteenth Amendment: Women's Suffrage
Twentieth Amendment: Presidential Term and Succession
Twentieth Amend., Section 1 Terms
Twentieth Amend., Section 2 Meetings of Congress
Twentieth Amend., Section 3 Succession
Twentieth Amend., Section 4 Congress and Presidential Succession
Twentieth Amend., Section 5 Effective Date
Twentieth Amend., Section 6 Ratification
Twenty-First Amendment: Repeal of Prohibition
Twenty-First Amend., Section 1 Repeal of Eighteenth Amendment
Twenty-First Amend., Section 2 Importation, Transportation, and Sale of Liquor
Twenty-First Amend., Section 3 Ratification Deadline
Twenty-Second Amendment: Presidential Term Limits
Twenty-Second Amend., Section 1 Limit
Twenty-Second Amend., Section 2 Ratification Deadline
Twenty-Third Amendment: District of Columbia Electors
Twenty-Third Amend., Section 1 Electors
Twenty-Third Amend., Section 2 Enforcement
Twenty-Fourth Amendment: Abolition of Poll Tax
Twenty-Fourth Amend., Section 1 Poll Tax
Twenty-Fourth Amend., Section 2 Enforcement
Twenty-Fifth Amendment: Presidential Vacancy
Twenty-Fifth Amend., Section 1 Presidential Vacancy
Twenty-Fifth Amend., Section 2 Vice President Vacancy
Twenty-Fifth Amend., Section 3 Declaration by President
Twenty-Fifth Amend., Section 4 Declaration by Vice President and Others
Twenty-Sixth Amendment: Reduction of Voting Age
Twenty-Sixth Amend., Section 1 Eighteen Years of Age
Twenty-Sixth Amend., Section 2 Enforcement
Twenty-Seventh Amendment: Congressional Compensation

Article VI Supreme Law

Clause 1 Obligations of New Federal Government

Clause Text
All Debts contracted and Engagements entered into, before the Adoption of this Constitution, shall be as valid against the United States under this Constitution, as under the Confederation.

Debts and Engagements Clause[edit | edit source]

This provision, variously called the "Debts Clause," "Engagements Clause," or "Debts and Engagements Clause,"[1] provides that the United States will recognize the debts and engagements of its predecessor governments--namely, the Continental Congresses and the federal government under the Articles of Confederation.[2] This "declaratory proposition" served to assure the United States' foreign creditors, in particular, that the adoption of the Constitution did not have "the magical effect of dissolving [the United States'] moral obligations."[3]

To finance the American Revolutionary War, the Continental Congress borrowed money from foreign and domestic sources.[4] To assure creditors that the new government would honor these obligations, the Articles of Confederation provided:

All bills of credit emitted, monies borrowed, and debts contracted by, or under the authority of Congress, before the assembling of the United States, in pursuance of the present confederation, shall be deemed and considered as a charge against the United States, for payment and satisfaction whereof the said United States, and the public faith are hereby solemnly pledged.Articles of Confederation of 1781, art. XII.

The question of whether the new constitution should include a similar provision arose at the Constitutional Convention. As originally proposed, the Debts Clause provided that "The Legislature of the U.S. shall have power to fulfil the engagements which have been entered into by Congress, and to discharge as well the debts of the U.S.: as the debts incurred by the several States during the late war, for the common defence and general welfare."[5] There followed some debate over whether the Debts Clause should provide that the new Congress "shall discharge the debts," or merely that it has the power to do so.[6]

Eventually, Edmund Randolph proposed a version stating prior debts "shall be as valid against the United States under this constitution as under the Confederation," which the Convention approved.[7] The second part of the original proposal, concerning Congress's power to pay debts, was separated from the Debts Clause and became part of Congress's Article I spending power.[8] Both of these provisions were quickly put to use by the First Congress, which in 1790 enacted Secretary of the Treasury Alexander Hamilton's plan to settle the Confederation's debts (and, more controversially, those of the states).[9]

After the federal government satisfied the financial obligations inherited from the Confederation, the Debts and Engagements Clause has rarely been a topic of debate.[10] The few Supreme Court cases that discuss the Clause concern the question of whether the Northwest Ordinance of 1787--particulary its prohibition on slavery in what was then the Northwest Territory--was among the "engagements entered into" by the Articles of Confederation, which the new federal government was obliged to respect.[11]

  1. See, e.g., David M. Golove & Daniel J. Hulsebosch, A Civilized Nation: The Early American Constitution, the Law of Nations, and the Pursuit of International Recognition, 85 N.Y.U. L. Rev. 932, 1066 n.282 (2010) (referring to this provision as the "Debts Clause"); Vasan Kesavan, When Did the Articles of Confederation Cease to Be Law?, 78 Notre Dame L. Rev. 35, 51 (2002) (referring to this provision as the "Engagements Clause"); Stephen E. Sachs, Constitutional Backdrops, 80 Geo. Wash. L. Rev. 1813, 1827 (2012) (referring to this provision as the "Debts and Engagements Clause").
  2. Article VI Supreme Law.
  3. The Federalist No. 43 (James Madison); accord 3 Joseph Story, Commentaries on the Constitution of the United States §§ 1826-28 (1833); The Federalist No. 84 (Alexander Hamilton); Lunaas v. United States, 936 F.2d 1277, 1278 (Fed. Cir. 1991) ("[Through the Debts and Engagements Clause] the nation undertook to assure creditors that the adoption of the Constitution would not erase existing obligations recognized under the Articles of Confederation.").
  4. See generally David P. Currie, The Constitution in Congress: Substantive Issues in the First Congress, 1789-1791, 61 U. Chi. L. Rev. 775, 802 (1994) ("The Revolution had been fought in substantial part on credit, and many creditors had not been paid.").
  5. 2 The Records of the Federal Convention of 1787, at 355-56 (Max Farrand ed., 1911).
  6. See id. at 377 (Gouverneur Morris introduces version stating the legislature "shall discharge the debts"), 412 (objection of George Mason to the "shall" language as "too strong").
  7. Id. at 414. Randolph's version is substantially the same as the final constitutional clause, save that the Committee of Style changed the description of the debts as contracted "by or under the authority of Congress" to "before the adoption of this Constitution." Compare id. at 414, with id. at 693 (Committee of Style draft).
  8. See id. at 497; Art. I, Section 8 Enumerated Powers ("The Congress shall have Power . . . to pay the Debts and provide for the common Defence and general Welfare of the United States . . . .").
  9. See Act of Aug. 4, 1790, 1 Stat. 138.
  10. See Jeffrey Sikkenga, Debt Assumption, in The Heritage Guide to the Constitution, [1]!/articles/6/essays/132/debt-assumption ("After some political struggles in the early 1790s, the new federal government made good on the bond obligations inherited from the Articles of Confederation, thus vitiating the possibility for serious constitutional controversy.").
  11. Compare Strader v. Graham, 51 U.S. 82, 97 (1850) (Chief Justice Roger Taney) (expressing view that the Northwest Ordinance "ceased to be in force upon the adoption of the Constitution"), with Pollard's Heirs v. Kibbe, 39 U.S. 353, 417 (1840) (Baldwin, J., concurring) (relying on the Engagements Clause to argue that the Northwest Ordinance, "the most solemn of all engagements, has become a part of the Constitution, and [remains] valid"), and Strader, 51 U.S. at 98 (Catron, J., dissenting) (similar). See generally Downes v. Bidwell, 182 U.S. 244, 320-21 (1901) (White, J., concurring) (summarizing this debate). Chief Justice Roger Taney's view prevailed for a time, infamously, in Dred Scott v. Sanford, 60 U.S. 393, 438 (1857) (holding that the Northwest Ordinance "had become inoperative and a nullity upon the adoption of the Constitution"), superseded by constitutional amendment, U.S. Const. amend XIV. This issue was rendered moot by the passage of the Thirteenth Amendment, whose language parallels the Ordinance and prohibits slavery throughout the United States. Compare Ordinance of 1787 art. VI ("There shall be neither slavery nor involuntary servitude in the said [Northwest] territory, otherwise than in the punishment of crimes whereof the party shall have been duly convicted . . . .") with Thirteenth Amendment Abolition of Slavery ("Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction."). See generally Thirteenth Amendment Abolition of Slavery.