were invited to subscribe, and to pay for the sum subscribed in their securities or notes of a former date. Interest was allowed on the new stock thus created by the loan subscribed to; and a part of the principal to be paid at certain periods in future. Some of the stock bore an interest of six per cent., and some only three. The President was authorized to borrow twelve millions of dollars, on the credit of the United States, to meet demands or part of demands already due, and the interest due to the public creditors.

During this Congress, provision was made for a gradual reduction of the public debt, by paying it in annual instalments, at an early period; so anxious were the members of laying a foundation, or preparing a plan, for this important purpose. But both on the question of funding the public debt, and of assuming the debts of the several States, a warm discussion took place, which continued many days, and called forth the abilities of the distinguished members of Congress. It was not wholly of a sectional character; and political parties were not then formed but different views were expressed; and the members from those States, which had advanced the least in the war of the Revolution, were the most opposed to these propositions. The majority of the House was, at one time, against adopting; but the Senate was in favor of the measure, and the House finally yielded, by a small majority. Had not these measures been adopted, the consequences might have been most unhappy for the welfare of the Union. For the funding system was necessary to revive and support the credit of the country; and the assumption of the State debts was equally necessary to do justice to those States, which expended most largely and suffered most severely, in the contest for liberty and independence. Sedgwick, Gerry, and Ames, of Massachusetts, were very eloquent on this occasion, and declared that the federal government would fail essentially in providing a remedy for existing evils, and in securing justice to the States, which was the express design of its establishment, unless the debts of the States were assumed, and prompt measures adopted for payment of the public debt.

Several members of the first Congress had been delegates in the Convention which formed the federal Constitution, as Strong, Gerry, Sherman, Langdon, Gilman, Carroll, King, Clymer, Fitzsimons, Morris, Bassett, Reed, McHenry, Butler, Few, and Baldwin. Among the most distinguished and active members of the House of Representa

tives, as appears from the debates and proceedings which have been preserved, were Livermore; Ames, Goodhue, Gerry, Sedgwick; Sherman, Trumbull, Wadsworth; Benson, Lawrence; Boudinot; Muhlenburg, Hartley, Fitzsimons; Vining; Contee, Smith, Stone ; Madison, Page, Lee, Bland, Moore, Parker'; Burke, Huger, Smith, Sumpter Baldwin, Jackson.'

The federal government may be justly considered a new political era in the United States. A great change was effected by its influence, through the whole country; which proved highly auspicious to the interests and welfare of all classes of people. The advantages of Independence were now fully perceived; and the blessings of civil liberty, happily realized. And it is difficult to imagine even, the divisions, disorders, and misery which would have ensued, if the federal Constitution had not been adopted, and the general government formed at that period. The common external dangers which had united the several States, and pressed them together in concert and action, had ceased,and the unsettled condition of the American people gave indications of as great evils, as had been endured in the war of the Revolution. The federal government was established by the wisdom and patriotism of that critical period; and thus a remedy, and the means of safety and prosperity were happily provided.

There was a third Session of the first Congress, which was held in the city of Philadelphia, on the first Monday of December, 1790; when much remained to be done, to perfect the operations of the federal government, or to accomplish all the purposes it was designed to effect. At the two former meetings, Congress had been diligent and faithful in setting the great political machine in motion; but time could not fail to discover some defects, or some omissions, which it was necessary to remedy and to supply. Several laws, passed at the former sessions, as that of establishing Judicial Courts, and those for raising and collecting the revenue, were altered at this. The first new State formed by the federal government was that part of Virginia, called the District of Kentucky; and Congress gave its consent to the application for that purpose, (an Act of Virginia having also passed in favor of the measure,) in February, 1791. And Kentucky then became one of the

a New Hampshire. b Massachusetts. c Connecticut. d New York. e New Jersey. f Pennsylvania. g Delaware. h Maryland. i Virginia. k South Carolina. 1 Georgia.

States in the Union, with all the powers and rights of the original members. A few days later, Congress passed an Act for the admission of the State of Vermont into the Union. The latter, however, was to be considered as one of the States in March, then next following; but Kentucky not until June, 1792. Parts of Vermont had been settled long before that period, and had sent commissioners, the year before, to Congress, to make application for that purpose. The Constitution provides for the admission of new States into the Union by Congress; requiring, however, the consent of the Legislature of a State, within whose jurisdiction, the additional State is to be formed, or created. Kentucky being within a part of the State of Virginia, her consent was necessary to the admission of that State; but Vermont was not strictly within the jurisdiction of any other State, although New Hampshire had claimed to have a right to a part of the territory: and therefore the consent of any other individual State was not necessary to her admission into the Union. In February, 1791, an Act was passed by Congress "to give effect to the laws of the federal government within the State of Vermont."

One of the most important Acts of Congress at this session, which was necessarily terminated the third of March, 1791, was that for establishing a Bank of the U. States: This was important, in a practical view, to give efficiency to the fiscal concerns both of the federal government and to individual enterprise, especially in commercial pursuits; and also as to a great constitutional question,-the right of the general government to form and incorporate such an institution. The reasons given for the incorporation of the Bank were, "that it would be conducive to the successful conducting of the national finances, tend to afford facilities to the obtaining of loans, for the benefit of government, in sudden emergencies, and be productive of great advantages to the trade and industry of the country." The preamble further states, "that the bank should be on a foundation sufficiently extensive to answer the purposes, intended by it; and, at the same time, on principles which might afford adequate security for an upright and prudent administration thereof." Notwithstanding the great objections then, and since, at various times, made to a Bank of the United States, it would seem to be highly expedient; alike useful to the government and to individual enterprise, as asserted, and as generally believed; still it is most important, that its administration and management should be in all prudence and uprightness; and not for the benefit of a few; nor,

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 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 cases, 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 clamors 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.