United States; and to the citizens of the latter, the trade with those tribes in the British territories in America.

After the treaty of peace was signed, but before it was ratified, or extensively known, and early in 1815, the public ships of the United States had encounters with British ships of war, and were generally victorious. The frigate Constitution, under command of Captain Stewart, had an engagement with two British armed vessels, one of thirtyfour guns, and one of twenty-two, and captured both of them at the same time. But the frigate President was taken about this time; having fallen in with several large British men-of-war, in company, from which she was unable to escape.

The commercial enterprise of the United States pursued to ports in the Mediterranean, was still occasionally interrupted, and subject to depredations by Algerine cruisers. The Dey of Algiers had, indeed, renewed a predatory warfare against the United States; and it became necessary to afford protection to American vessels. On the recommendation of the President, in March, 1815, Congress passed an act for equipping and employing such force as the President should judge requisite," For protecting the commerce and seamen of the United States, on the Atlantic, and in the Mediterranean." Algerine cruisers taken, were to be deemed lawful prizes; and merchant vessels were also authorized to be armed in self-defence. A treaty had been made before with that power; and it had felt the severity of American bravery; but like the savage tribes of Indians, it paid little regard to treaties, when there was a prospect of gain by attacking the vessels of other nations. The energetic measures of Congress led the Dey, soon after, to make a treaty with the United States. The appearance of a formidable American fleet on his coast convinced him that his interests required peace; and he relinquished all pretensions to tribute for the future. Captain Bainbridge and Captain Decatur distinguished themselves on this occasion.

An act was passed in March, 1815, by which the federal government gave authority to State courts to sustain and decide on complaints and suits for taxes, duties, &c., imposed by Congress, similar to the power of the federal district courts for these purposes. The national legislature could not justly claim authority to require this duty of any State Court; and it only authorized such Courts to perform this service for the public convenience, as there might be some delay in the District Federal Courts from the numerous cases which arose. And the State Courts in these cases

were no farther under control of the federal government, than to decide according to the laws of the United States relating to this subject. A law of Congress, of a similar character, and founded on the same principle, authorizes a Justice of the Peace, or Justice of a State County Court, to issue a warrant and to decide in cases of sailors deserting a vessel after engaging to go to sea, and to proceed to imprison, or to order the delivery of such seamen, on neglect of his duty. And allows also of an examination of seamen, charged with a mutiny, or an attempt to excite a revolt; and of binding over or committing them for trial before the District or Circuit Federal Courts. This process is found to be for the furtherance of justice, especially in a federal judicial district of extensive territory; and there is no assumption of power by Congress in this procedure.

At the first session of the fourteenth Congress, which began December, 1815, an act was passed for paying off the national debt, which at that period was one hundred and twenty millions of dollars, by annual instalments of ten millions. The bill for this purpose was proposed by an eminent financier of South Carolina, (Mr. Lowndes,) who was some time the chairman of the Committee of Ways and Means, in the House of Representatives. But the public expenses being much less, as peace was restored, there was a reduction of most of the taxes and duties, from the amount required during the three years of war. The additional duty of postage, required in 1814, was abolished, as was that on domestic manufactures, on gold, silver, and articles of jewelry; and on spirits distilled within the United States, the former duties were abolished or reduced. The direct tax was ordered to be three millions of dollars, in lieu of six millions, required by a former law of Congress. The additional duties which had been previously imposed on bank notes, and refined sugars, on salt, and on all goods, wares, and merchandise, imported from foreign countries, were also continued in force. The pay of Customhouse officers was raised fifty per cent. and the members of Congress were granted a salary of fifteen hundred dollars a year, in lieu of the allowance per diem, as formerly established; but this law was repealed at the next session.

In April, 1816, a bank was incorporated by Congress, with thirty-five millions capital, to continue for twenty years. Many of the political friends of the administration were opposed to the law, as they deemed it not within the constitutional power of Congress. The President had objected to a United States Bank, a short time before, from the same

consideration; but his objections were now removed; or he was satisfied of its utility to the government, and to the commercial part of the nation; and he might have considered the establishment of such an institution in 1791, a sufficient precedent. The act of incorporation provided, that the federal government should be a proprietor in the Bank, to the amount of seven millions of dollars; that a bonus of one and a half millions be allowed the United States for the charter, to be paid in two, three, and four years; and that no other Banking company should be authorized by Congress. It was also provided by the act of incorporation, that the board of directors should consist of twenty-five members; five of whom were to be appointed by the President and Senate; that the books and records of the Directors should be subject to examination by a committee of Congress, or of the President; and, if found to have violated the charter, to order scire facias to require the Directors to show cause why it should not be declared forfeited. The Bank proved to be a great accommodation to the government, deeply in debt as it then was; as well as a facility to the trading part of the community, in their monetary transactions.

Several laws were passed by Congress at the fourteenth session, in favor of the settlers on lands of the United States, of which there had been no specific sales. There were then great numbers who had sat down on the public lands, without purchase or legal authority. The law was intended to quiet the actual settlers on such vacant lands, on payment of a moderate sum, and causing a registry thereof in the proper offices provided for that purpose.

Owing to the interference by the arbitrary decrees and orders of the two great belligerent nations of Europe, with the commerce of the United States, to a long embargo, and to non-importation and non-intercourse laws of the federal government, and to the war from 1812 to 1815, declared by Congress, the growing prosperity of the country was greatly impeded. The exports were far less, and the trade consequently less; and much property taken and confiscated by the belligerent powers whose vessels covered the ocean. In the years 1808-1812, the exports, domestic and foreign, were two hundred and forty-one millions of dollars. In 1813-1814, in time of the war, they amounted to little more than thirty-four millions. Of the first amount of exports, eighty-two millions and a half were articles of foreign growth or produce, and the rest domestic; of the latter, for 1813 and 1814, the foreign articles exported amounted to

three millions; and the domestic, to thirty-one millions eight hundred thousand. The greater part of the exports of domestic growth consisted of grain and rice, and was shipped to Spain and Portugal. Nearly twenty millions value in flour, wheat, and rice, were carried to those countries from the United States in 1813, though war then existed between America and Great Britain.

The message of the President to Congress, at the opening of the session in December, 1815, gave a full expose of the state of the nation, as to its relations with foreign governments, to the public debt and finances, to domestic manufactures, to the navy and other means of defence, and to a national currency. It was generally approved as an able state paper, and politically correct in its views, with the exception taken to it by those who considered the war unjustifiable, in that it spoke of that measure "as necessary to the honor and interest of the United States, and to the asserting of our national rights and independence."

The President referred to the termination of the war, which the Dey of Algiers had carried on against the United States, in which the interests of navigation had greatly suffered to the Convention on the subject of commerce, then recently concluded with Great Britain-to the state of the Indian tribes, and the importance of maintaining peace with them, and of rendering them strict justice in all our transactions. He also recommended due encouragement for domestic manufactures; and the regulation of the currency of the United States by legal and specific acts of Congress. It was suggested that a national bank might be useful for this purpose; or that State banks might be used for the same object; and that for an immediate support of the public credit, the issue of treasury notes might be necessary. The President also expressed himself in favor of a military academy; and of a national seminary of learning to be located in the District of Columbia. On the subject of domestic manufactures, he observed, that in adjusting the duties on imports to the object of revenue, the influence of the tariff on manufactures would present itself for consideration. "However wise the theory may be, which leaves to the sagacity and interest of individuals the application of their industry and resources, there are in this, as in other cases, exceptions to the general rule. Besides, the condition, which the theory implies, of a reciprocal adoption by other nations, experience teaches, that so many circum

* During the session a national bank was established, as mentioned before.

stances may occur in introducing and maturing manufacturing establishments, especially of the more complicated kinds, that a country may remain long without them, although sufficiently advanced, and in other respects even peculiarly fitted for carrying them on with success. Under circumstances, giving a powerful impulse to manufacturing industry, it has made among us a progress, and exhibited an efficiency, which justify the belief, that with a protection not more than is due to the enterprising citizens whose interests are now at stake, it will become, at an early day, not only safe against occasional competition from abroad, but a source of domestic wealth, and even of external commerce. In selecting the branches more especially entitled to the public patronage, a preference is obviously claimed by such as will relieve the United States from a dependence on foreign supplies, ever subject to casual failures, for articles necessary for public defence, or connected with the primary wants of individuals."

The suggestion of fostering domestic manufactures by the federal government, for the prosperity of the country, was evidently dictated by patriotic views, as well as a correct estimate of national resources, and the means of future national wealth. A similar opinion was given, at an early period of the federal government, by the Secretary of the Treasury, (Hamilton,) in a very elaborate and able report, made according to the directions of Congress. He proposed, that, in fixing the duties on goods and articles imported into the United States, for the purpose of revenue, a regard should be had, as far as judicious and proper, in the state of the country, to the extension of home manufactures of various kinds, as being favorable to internal improvements, to real independence, and to general prosperity. In the time of the war of 1812-1815, experiments were made, in most cases from necessity, for the manufacture of woollen and cotton cloths; and that of hats, shoes, and boots, was much extended, in various parts of the country. The former being new, and not well understood, was pursued with little profit; and good policy dictated that the patronage of the general government should be given to all proper attempts in this branch of industry. In revising the tariff of imposts, in 1816, reference was had to this great national concern, and twenty-five per cent. ad valorem was then fixed as a duty on cotton and woollen goods imported from foreign nations; which was higher than the duty on most other imported articles. And yet the policy of protecting these goods, so as to pre