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more than all, for electioneering, and party purposes. It is in the abuse and perversion of such an institution, that it can be an evil, either to government or to the people.

This act of incorporation for a Bank of the United States, was for the period of twenty years; and the capital was to be ten millions of dollars. There were to be twenty-five shares, of four hundred dollars a share. Threefourths of the amount of shares subscribed for, were payable in evidences of the public debt, which had been loaned agreeably to a previous Act of Congress. The President of the United States was authorized to subscribe two millions of the capital stock on behalf of the general government. The Bank was to be located in Philadelphia; but branch banks were provided for in other parts of the United States, as the directors should think proper, for the purpose of discounting and deposites.

As the chief executive officer of the general government, Washington was most faithfully attentive to every subject relating to the welfare and the rights of the United States. At an early period of his presidency, he remonstrated against the British in holding some forts within the national territory, which they had occupied during the war, but which the treaty of peace of 1783, stipulated should be given up, and abandoned by the British troops. In February, 1791, he sent a message to Congress, in which he says, "that soon after I was called to administer the government, I found it important to come to an understanding with the Court of London, on several points interesting to the United States; and particularly to know, if they were disposed to enter into arrangements by mutual consent, which should fix the commerce of the two nations on principles of reciprocal advantage. For this purpose, I have authorized informal conferences with their ministers; but do not discover any disposition, on their part, to enter into any arrangements merely commercial. This information I have thought proper to communicate, as it may have some influence on your deliberations." It was publicly rumored and believed, that, after the system of duties on goods and articles imported from Great Britain or her colonies was established by Congress, the British ministry made propositions to bind the federal government not to raise these duties; but offering no proper commercial benefits, as reciprocal, these were not accepted by the American administration. Soon after the Message of the President, an Act of Congress was passed prohibiting the importation of goods and products, except in vessels belonging

to the United States, or in such as belonged to the country, of which such goods, or products, were the growth or manufacture; or in ships of such countries as permitted the vessels of the United States to carry goods and products not the manufacture or growth of the United States; and additional duties were also imposed, in cases where shipped at places from which the vessels of the United States were excluded to make exports.

In March, 1791, Congress resolved to establish a mint for the purpose of a national coinage; and the following year, it was ordered, "that the establishment should be at the seat of the federal government, for the time being." The director, assayer and chief coiner, were to be subject to such regulations as Congress might order and require. The coins to be struck and issued were,-of gold, eagles, of the value of ten dollars-half-eagles, quarter-eagles; of silver, dollars of the same value as Spanish-milled dollars-then current in the United States,-half-dollars, quarter-dollars; dimes, of the value of one tenth of a dollar, half-dimes; and cents of the value of one hundredths of a dollar, and half

cents.

It required no ordinary abilities and wisdom, to put the new government in successful operation. The nature of the government was in some respects peculiar. Its powers were to be exercised strictly, or fairly, according to the Constitution; and it was difficult to discriminate, in all eases, between the power of the general and of the State governments. The States were jealous, and justly so, perhaps, of the federal government, fearing it would assume authority not given it by the compact; and might therefore sometimes complain without just cause.

President Washington would not designedly assume power not delegated; nor would he fear to exercise the authority granted, and necessary for the general good, by the elamors of the ignorant or discontented. As in organizing and commanding the army of the United States, in 1775-1783, he had almost to create, and manifested equal decision and moderation; so, in using the power given to the chief magistrate of the Union, he was alike firm and prudent; and, with the aid of the first Secretary of the Treasury, raised the prostrate credit of the country, and gave an impulse to the government, which was long felt, and which produced a state of unexpected national prosperity and respectability.*

*During this session, by recommendation of the President, Congress ordered another regiment of men to be raised, for the public service, to recruit the troops then in the field; which amounted to only 1200.

CHAPTER II.

Second Congress, October, 1791. Closed Doors. Of Senate. Indian Hostilities. Public Finances. Additional Duties. Excise. Militia System. Power of the Federal Government over the Militia. Cessions of Land to the United States by individual States. United States troops under General St. Clair Defeated. Treaties with Indians, and Efforts to have Peace with them. British hold Forts in the Northwest. Message of President, October, 1791. Complaints of British Aggressions. Petitions against Slavery, 1792. Fisheries. Number and Apportionment of Federal Representatives; Opinion of Washington on the subject. Negotiation with Great Britain. Her Restrictions on American Commerce.

THE Second Congress met at Philadelphia, on the 24th of October, 1791. The time designated by the Constitution for the assembling of every new Congress, was December, unless some other time should be appointed by a law of the federal Legislature. There was much urgent business before the first Congress, at its last session, which terminated on the third of March, by an express provision in the Constitution; and therefore October was fixed for the meeting of the next Congress. A great proportion of the Representatives were the same as composed the House in the first Congress. And the whole number was now sixty-five; usually fifty-eight or sixty present, at the same time; Vermont and Kentucky had each two Representatives now in the House.

During the first and second sessions of Congress, the Senate chamber was not open to strangers and spectators; but there was always free admission into the galleries of the House of Representatives, so that the speeches of the members were heard, and generally fully reported. On several occasions, however, the galleries were cleared, and the House sat with closed doors. This was matter of complaint with a few persons, of suspicious and jealous dispositions. It was afterwards known, that subjects were under discussion, which fully justified secrecy at the time. They related to an increase of the military force, on the western frontiers. And the people very generally admitted the prudence of the measure. In subsequent periods, the House has often ordered its doors closed, and all spectators excluded, when the business before them was deemed of

such a nature as to require secrecy for a short time. When engaged in executive business, the Senate still holds its meetings with closed doors. But at that Congress, and afterwards, the Senate chamber was also open to those who wished to hear the discussions of that branch of the legislature on other subjects.

In 1791, the troops of the United States on or near the Ohio river, were attacked by the hostile tribes of Indians in that part of the country, and many Americans were slain. This defeat led to an increase of regular troops in that quarter; which was the occasion of some complaint, as if the military operations of the United States were offensive and unjust. But the western frontiers of Virginia and Pennsylvania, were then fast settling, and it became necessary for the general government to afford protection to the inhabitants. And it was only on the territory which belonged to the United States by treaty and fair purchase, that the Americans were settled. During the same year, the Creek tribe of Indians appeared in a hostile attitude, committed some depredations, and threatened farther injuries. The Society of Friends in Pennsylvania, remonstrated to Congress against the war with the Indian tribes, and expressed an opinion that it was unnecessary and unjust. But it appears not to have had any effect. Washington would not approve or maintain hostilities against them, had he not deemed it just and proper for the government to give protection to the people of the United States, who were exposed.

In January, 1792, the Secretary of the Treasury of the United States, was required by the House of Representatives, to lay before them a statement of the public finances, that they might more correctly judge of the sufficiency of the revenue to meet all the demands on the government; and whether any additional duties were necessary to maintain the credit of the nation. The Secretary made a report in the same month; in which he stated, that the sums required by the appropriations voted in 1791, amounted to $7,082,190; that the net product of all the public revenue during the year 1791, was $7,029,750; that the total annual expenditures of the United States, amounted to $3,688,043, and that the product for the year 1792, was estimated at $3,700,000.

An Act of Congress was passed in 1792, altering the duties, previously required to be paid on spirits, distilled within the United States; whether from molasses, sugar,

and other foreign materials, or from materials of the growth or produce of the United States. The first enactment of the general government, imposing duties on spirits distilled within the United States, was August, 1790; and the law, now adopted, was not materially different from the first. It was called the "Excise Act," to distinguish it from that of laying duties on goods and products, imported from foreign countries; and the officers appointed to collect and receive these duties, were distinct from the collectors of the customs on imported articles, and were called Supervisors. The law for raising a revenue by an excise, was considered unreasonable, by a large portion of the citizens; and it was contended that as Congress had the whole revenue arising from duties on imported goods and products, an excise, if necessary, should be under the control and for the benefit of the several States. For each State had a large debt to pay, notwithstanding the greater portion had been assumed by the federal government. The Act laying an excise, however, was evidently within the power of Congress, as granted by the federal Constitution. The legislature of the United States was desirous of paying the interest on the public debt, promptly; and also for its reduction as soon as possible. And though the revenue was as great as most had anticipated, it was not sufficient, as first established, to meet the expenses of government, and to discharge, as good policy dictated, the heavy debt of the nation, so rapidly as was generally desired.

The Constitution gives Congress power to provide by law, for calling out the militia of the United States, to execute the laws of the Union, to suppress insurrections, and to repel invasions; for organizing, arming and disciplining the militia; and for governing those called into the public service. But the right was justly reserved to the States of appointing the officers of the militia; and the laws relating to the militia it was intended, no doubt, should be uniform throughout the United States. In 1792, Congress passed a law on this subject, with an ultimate view of providing for the national defence, and to prevent the necessity of constantly maintaining a large army of regular troops. The law provided for an uniform militia system in all the States of the Union; in which, the ages of men liable to do duty in the militia, were stated, and directions given for arming them, and for the mode of discipline. But this did not prevent the State authorities from making laws more in detail, requiring how often the militia should be obliged to assemble for training and for military discipline in each

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