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had some bearing upon the subject, and some weight in its final decision.

It was next proposed, that certain deductions should be made voluntarily by the public creditors, and that the debt become irredeemable, otherwise than by the consent of the creditor, except in certain specific proportions. This resolution also opened a torrent of debate; but was finally carried in the affirmative. The proceeds of the sale of public lands, lying in the western territory, together with the surplus revenue, and a loan of two million of dollars, which the president was authorised to borrow, at 5 per cent, were to be applied, as a sinking fund, to the redemption of the debt.

This measure laid the foundation of public credit upon such a basis, as raised the depreciated debt from 2s. 6d. immediately up to 20s. on the pound, and in a short time to a handsome per centage above par. The spring thus given to public credit, realised immediate fortunes to the extensive holders of public securities, and gave a general spring to the affairs of the nation. New energies, and new efforts sprang up throughout the nation; public confidence, public, and private credit, a spirit of agriculture, commerce, and enterprise, universally prevailed; a foundation was laid for all that unrivalled prosperity America has enjoyed, and all that greatness she is destined to enjoy.

On the 12th of August, Congress closed the arduous labours of the session, and adjourned to meet at Philadelphia, on the 1st Monday of December following.

Pending these discussions in Congress, a general hostile disposition appeared amongst the western, and southern Indians, which threatened hostilities to the western frontiers of the United States. To obviate this calamity, a Col. Willet was dispatched on an embassy to the Creek nation, with overtures of peace, which so far succeeded as to cause Mc

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Gillivray, with several of his chiefs, to repair to New-York, and there settle a peace on the 7th of August, 1790.

Spain not only attempted by her agents, to counteract this treaty at New York; but at the same time continued to embarrass the western section of the United States, by her restrictions upon the navigation of the Mississippi. Great Britain also continued to hoid the western posts, and through their influence, to excite the savages in their vicinity to acts of hostility with the United States. This evil had increased since the failure of Mr. Adams, at the court of London, to establish a commercial treaty; and more particularly so, since his return to America.

After the return of Mr. Adams, the president, in October, 1789, impowered Mr. Governeur Morris, (then in Europe,) to effect a general negociation with the British cabinet, upon the points in controversy; but it again failed, and the savages upon the western frontiers continued their murders, and depredations,

A war between Great Britain and Spain was at this time seriously talked of, and the president thought it advisable to withdraw the powers of Mr. Morris, and leave the British nation free to pursue their own views upon the subject.

At this time the controversy between Great Britain and Spain was amicably adjusted, through the intervention of France, and all threatened hostilities subsided.

Things being thus generally arranged, the president improved this recess of Congress, to visit his beloved seat at Mount-Vernon, and give a spring to his health, by relaxing his mind from the cares of public life.

Rhode-Island had not yet adopted the constitution, and become one of the United States under the new federal government, and of course had not been visited by the president on his former tour: but to conciliate the passions, and affections of this state. the president Low made an excursion into Rhode-Island, previous to his departure

for his seat in Virginia; where he was received with all those expressions of grateful affection and respect, he had experienced in the other states, on his former tour.

On the first Monday in December, the president met the third session of the first Congress, at Philadelphia, agreeable to their adjournment, by a customary speech; in which he took particular occasion to notice the pleasure he derived from the flattering prospects of public credit, and a productive revenue; as being not only a pledge of the fertility of the national resources; but an honourable testimony of the patriotic integrity of the mercantile part of the community.

The convulsions which had already been produced by the French revolution, and the still greater distresses with which it threatened to involve the powers of Europe, led the president to caution Congress against the evils that might threaten us from the same source, and thus led him to recommend such encouragement to the national commerce, as might render both the agriculture, and commerce of the United States, independent of foreign bottoms. After recommending to their consideration a further attention to the principal, and interest of the public debt, he thus concludes.

"In pursuing the various and weighty business of the present session, I indulge the fullest persuasion, that your consultations will be marked with wisdom, and animated by a love of country. In whatever belongs to my duty, you shall have all the co-operation, which an undiminished zeal for its welfare can inspire. It will be happy for us both, if by our successful administration, we can make the established government more and more instrumental in promoting the good of our fellow citizens, and more and more the object of their attachment, and confidence."

This address was echoed from both houses of Congress, with all that glow of mutual confidence and affection which had marked the replies of former sessions, excepting that part which related to the treaty with the Cherokees ; here a reflection was cast on the president for his neglect of the rights of the state of Georgia; but it was passed over, without further notice.

The secretary of the treasury followed these addresses with sundry reports, suggesting such further measures as were considered necessary to complete the establishment of public credit.

The first object recommended in this report, was an increased duty on wines, spirits, teas, coffee, &c. together with a duty on domestic distilled spirits. When the bill was introduced to support this report, it opened the flood gates of the passions, and produced a torrent of debate, in which reason, good sense, and even common decency and common sense were carried away in the storm; which sometimes vibrated to one point, and sometimes to another; in which, a general increase of duties on imported articles was proposed, with a duty on stamps, or stamped paper, as a substitute for the duty on domestic distilled sprits, &c. An amendment was proposed to strike out the duty on domestic spirits; but was lost; 36 to 16; and when the storm had raged through all the threatening terrors of wordy war, the original bill was carried by a majority of 35 to 21.

The secretary of the treasury next appeared with a recommendation for a national bank. This, like the other recommendations, opened another war of words, and the whole artillery of the south was played off against the bill, as being unconstitutional, as well as inexpedient. These arguments were met by the thunders of the north, and these two great sections of the union, now appeared for

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the first time, arrayed in martial phalanx, against each other.

This all important question thus becoming serious, the president called up the attention of the heads of departments to examine its merits, who were required to give their opinions to the president in writing.

In this arduous struggle the secretary of the treasury supported his measure against the opinions of the secretary of state, and the attorney-general; and the bill when it passed into a law received the sanction of the president. But the parties were still at issue in feeling, and never became reconciled.

This question not only involved the interests of party, but the pride of party, the bitterness of party, with ail those passions which become the necessary attendants on party strife, and they have never subsided, even to this day.

In addition to the division of interest between the north, and south, which was involved in these great questions of national finance, that of a due balance of power between the government of each state, and the federal government, became also a great party question.

Whilst one party considered that the whole strength of the nation depended upon a preponderance of power being attached to the federal government, the other considered that the safety of the nation, not ouly depended on checking this preponderance, but in maintaining such a balance between the government, and the states, that neither should preponderate; but that both should preserve an equilibrium, and the independence of the state governments be preserved entire. This division of sentiment became involved in every national question of importance, and thus continues, and probably will continue, so long as a balance of power can be preserved in the national governments; the same as the strife of party between the

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