five in the House for the bill to pass. Thomas Jefferson wrote years afterward that Hamilton had a discussion with him, around this time period, about the capital of the United States being relocated to Virginia by means of a "pill" that "would be peculiarly bitter to the Southern States, and that some concomitant measure should be adopted to sweeten it a little to them". The bill passed in the Senate on July 21 and in the House 34 votes to 28 on July 26, 1790. Report on a National Bank Hamilton's Report on a National Bank was a projection from the first Report on the Public Credit. Although Hamilton had been forming ideas of a national bank as early as 1779, he had gathered ideas in various ways over the past eleven years. These included theories from Adam Smith, extensive studies on the Bank of England, the blunders of the Bank of North America and his experience in establishing the Bank of New York. He also used American records from James Wilson, Pelatiah Webster, Gouverneur Morris, and from his assistant treasury secretary Tench Coxe. He thought that this plan for a National Bank could help in any sort of financial crisis. Hamilton suggested that Congress should charter the national bank with a capitalization of $10 million, one-fifth of which would be handled by the government. Since the government did not have the money, it would borrow the money from the bank itself, and repay the loan in ten even annual installments. The rest was to be available to individual investors. The bank was to be governed by a twenty-five-member board of directors that was to represent a large majority of the private shareholders, which Hamilton considered essential for his being under a private direction. Hamilton's bank model had many similarities to that of the Bank of England, except Hamilton wanted to exclude the government from being involved in public debt, but provide a large, firm, and elastic money supply for the functioning of normal businesses and usual economic development, among other differences. The tax revenue to initiate the bank was the same as he had previously proposed, increases on imported spirits: rum, liquor, and whiskey. The bill passed through the Senate practically without a problem, but objections to the proposal increased by the time it reached the House of Representatives. It was generally held by critics that Hamilton was