In the winter session of 1801, the act establishing district courts was repealed by the legislature of Kentucky, and the present circuit courts erected in their stead. At the same session, an insurance company was chartered in Lexington. By a clause which was not thoroughly understood by the members who voted for it, or it would never have been admitted, banking powers were granted to this company, who thus obtained the first bank charter ever granted in Kentucky.

In relation to national affairs,-in which the people of Kentucky, from their devotion to the democratic candidate for president, took an interest far beyond that which they felt in their own state appointments,-the news of the election of Mr. Jefferson over Mr. Adams was received with the most unbounded expressions of satisfaction.

In the course of the year 1802, the interruption of the navigation of the Mississippi produced great excitement in Kentucky. This interruption was effected by suspending the American right of deposit at New Orleans, which under the Spanish treaty had been granted for three years, with a proviso that, if the privilege should be withheld at the expiration of that time, some other place of deposit near the mouth of the river was to be granted. The latter provision not being complied with, the treaty was undoubtedly violated, and western commerce most seriously crippled. So excited were the people of

PURCHASE OF LOUISIANA.

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Kentucky upon the subject, that when it became known that Spain had ceded the territory of Louisiana to France, it would have required a very little additional misunderstanding to have produced a state of war.

Jefferson immediately wrote to Livingston, at that time American minister at Paris, directing him to obtain, if possible, the immediate transfer of Louisiana, or at least of the island of Orleans, to the United States. In this letter he stated emphatically, that if the possession of Louisiana was retained by France, it would completely reverse all the political relations of the United States, and form an epoch in their political course. "There is one spot on the globe," continued Jefferson, "the possessor of which is our natural and habitual enemy. That spot is New Orleans."

This strong protest had its effect; perhaps also the motion which was made in the Senate of the United States, to authorize the president to seize New Orleans by force of arms, may have had a tendency to accelerate the action of the French government. The motion was not carried, but Mr. Monroe was despatched to Paris to arrange the difficulty with the first consul.

Livingston had opened a negotiation for the purchase of New Orleans, and the adjacent tracts on the Mississippi, before Monroe arrived. His prospects of success were at first unpromising enough; but the approach of a new European

war so impressed Napoleon with the necessity of selling a territory which he could not by any possibility defend while the fleets of Great Britain controlled the seas, that just before Monroe reached Paris, Talleyrand had requested Livingston to make an offer for the whole of Louisiana. After a few conferences, Bonaparte agreed to sell to the United States the entire territory of Louisiana for the sum of fifteen millions of dollars, and no time was lost in making the purchase.

On the 20th of December, 1803, William C. Claiborne, governor of the Mississippi Territory, descended to New Orleans and took formal possession of the newly acquired territory in the name of the United States.

In 1804, Christopher Greenup was elected Governor of Kentucky. Mr. Jefferson was the same year re-elected President of the United States.

On the 4th of March, the governor of the commonwealth formally, by proclamation, discharged the militia, who, in expectation of making a military descent upon New Orleans, had volunteered upon the service, with an alacrity which showed how strongly the people of Kentucky were moved upon a subject so vital to their com

merce.

AARON BURR.

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CHAPTER XVIII.

Aaron Burr-Elected Vice President of the United StatesLoses the confidence of his party-Is nominated for Governor of New York-Defeated through the influence of Hamilton-Kills Hamilton in a duel-Flees to South CarolinaReturns to Washington-Sets out for the West-His nominal projects-His association with Wilkinson-Becomes acquainted with Blennerhasset-Actual project of BurrReaches New Orleans-Returns overland to Kentucky-. Spends the spring and summer in Philadelphia and Washington-Attempts to win over Eaton, 'Truxton, and Decatur -His second journey to the West-Builds boats on the Muskingum-Contracts for supplies and enlists volunteers— Wilkinson at Natchitoches-Receives despatches from Burr -Sends a messenger to the president-Orders New Orleans to be strengthened-Proceeds to Natchez-Despatches a second messenger to Washington-Writes to Claiborne and the Governor of the Mississippi Territory-Reaches New Orleans-His measures at that place.

IN the year 1801, Aaron Burr, a native of New Jersey, a graduate of Princeton, a colonel in the war of independence, and subsequently a senator of the United States, was elected Vice President of the Union. He was a man of the most extraordinary talents, plausible, intriguing, daringly ambitious, singularly polished in his address, but of the lowest moral character.

Before the expiration of his term of office, he had lost the confidence of his party, and while Jefferson was unanimously nominated as a candidate for re-election to the presidency; in the

selection of a candidate for vice president, Burr was set aside, and George Clinton nominated in his stead.

Possessing yet some little political power in New York, he was enabled to have himself brought forward by his friends as an independent candidate for governor of that state, in opposition to Chief Justice Lewis, the nominee of the administration party.

Owing to the high character of Alexander Hamilton, and the influence of his opinions upon the active politicians of the state, Burr was defeated, and charging his discomfiture to the instrumentality of Hamilton, only waited a favourable opportunity for accomplishing a signal re

venge.

Hamilton at this time was at the head of the federal party, which, though shorn of its former power, was yet large enough to offer formidable opposition to any candidate whose fitness they doubted, or whose opinions were at variance with their own.

Sinking rapidly in the scale of political reputation, and deeply involved in pecuniary liabilities, Burr brooded over the failure of his latest hope with a malignity, which, gathering strength by nursing, at length impelled him to force his antagonist into a duel. The result was such as might have been expected. Hamilton was shot down at the first fire, and to escape the indignant