requires the degradation or destruction of another. There is territory enough for them and for you. Instead of invading their rights, promote their happiness, and give them no reason to curse the folly of their fathers, who suffered yours to sit down on a soil, which the common parent of both had previously assigned to them. Diffuse the means of education, and particularly of religious instruction, through your remotest settlements. Support and strengthen the hands of public teachers, and of worthy clergymen. Let your voluntary contributions confute the dishonourable position, that religion cannot be supported but by compulsory establishments. Remember that there can be no political happiness without liberty; that there can be no liberty without morality; and that there can be no morality without religion.

It is now your turn to figure on the face of the earth, and in the annals of the world. You possess a country, which, in less than a century, will probably contain fifty millions of inhabitants. You have, with a great expense of blood and treasure, rescued yourselves and your posterity from the domination of Europe. Perfect the good work you have begun; and, by the blessing of Heaven, make the American Revolution an era in the history of the world, distinguished by the great and progressive increase of human happiness!

CHAPTER XXX.

Domestic Relations-Public Debt-Funding System—Bank of the United States-Origin of Parties-Insurrection in Pennsylvania-Its suppression.

THE form of government, recently adopted by the United States, went into operation under great advantages. The personal character of the President had a decided influence, in awing the turbulent, repressing the factious, and conciliating all virtuous citizens to the support of good morals and orderly government. The recollection of the many evils, which, for several years, had afflicted the citizens, from the want of union, system, and energy, in the administration of their public affairs, weighed with all who loved their country, to give their influence to the support of the new establishment. The constitution was deemed, by a great majority of the enlightened, virtuous citizens, to be an improvement on all former systems. It was not imposed by the ruffian hand of conquest. It flowed from the people; was their own work. Its provisions were digested by their best men, freely chosen; and its acceptance was their own solemn deliberate act. From such a constitution, administered by such a man as Washington, a melioration of their circumstances was generally and confidently expected. The constitution contained, within itself, a radical remedy for many of the evils, under which the country had, for some time, laboured. The commerce of the United States had been cramped, from the want of power to regulate it, on an uniform principle. The inability of the citizens to pay their debts, and their want of credit, had arisen, not so much from the want of means, as from the incompetency of the old system, to draw forth the resources of the country. The distrust which prevailed among the people, respecting the punctual fulfilment of contracts, arose from the powers claimed, and, in too many instances, exercised by the state legislatures,

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for impairing the obligation of contracts; for making paper money a legal tender, for the discharge of specie debts; and for passing laws, which interfered between debtors and creditors. These prolific sources of evil were completely done away, by the new constitution. From its adoption, and the expected vigorous administration of it, by the virtuous and enlightened President, it became the duty of every state to legislate wisely, and the interest of every citizen to be honest and industrious. The experience of several past years had proved, that liberty without law, or efficient government, could not make a nation happy. The new order of things proved, that a combination of both was requisite, to stimulate men to industry, and to draw forth their energies.

The great capacities of the constitution, for promoting public happiness, and removing national evils, had ample scope for exercise. The treasury was empty. There was an immense sum of floating debt, for which no provision had been made. Commerce was cramped, both by the legislative acts of christian, and the depredations of infidel powers. The Indians, both on the north western and southern frontiers, were in a state of hostility. Serious disputes existed, between the United States and Great Britain, on the north, and also with Spain, on the south. A great revolution had commenced in France, which, in its progress, involved not only the kingdoms of Europe, but the states of America, in serious difficulties. These objects pressed on the United States, in their foreign relations. At home, a respectable minority opposed to the new constitution, was to be conciliated; and many of the citizens, whose morals had been unhinged, by the convulsions of a revolution, and whose principles had been tainted, by a feeble government, incapable of coercing the selfish and refractory, were to be taught to bridle their passions, and submit to the restraints of law.

To replenish the empty treasury of the United States, was the first object of legislative attention. Recourse was immediately had to duties, levied on goods, wares, and merchandise, imported into the United States, and on the tonnage of vessels. The old congress had long applied to the several

states, for leave to collect import duties, for the general benefit of the union; but, as the consent of all the states could not be obtained, this source of revenue was either unimproved, or improved for the particular advantage of individual states. Under these circumstances, the collection of import duties was a source of discontent to the states, which did not directly import for themselves. As the consumers pay all duties, these were virtually taxed by their neighbours, who were more fortunately situated with respect to ports. So great were the jealousies of the importing states, that they were afraid to make a full use of this source of revenue, from an apprehension, that it would drive trade from them to their neighbours, who wer disposed to burden it less. The experience of a few years proved, that import duties, regulated by one will, and collected on an uniform principle, from the time when a system, for that purpose, was first proposed by congress, would have afforded the means of preventing a great part of the pecuniary distress, which took place in the United States, anterior to the establishment of their new constitution. From the latter period, it was a plentiful source of supply, and constantly increasing. It was easily collected; and, at the same time, the collection of it, on a general principle, removed all uneasiness between importing and non-importing states. For it was of no consequence where the duty was paid; since, wherever paid, it was applied for purposes equally beneficial to every part of the union.

In September, 1789, the house of representatives passed two resolutions, highly consolatory to the creditors of the public. One declared," that the house considered an adequate provision, for the support of public credit, as a matter of high importance, to the national honour and prosperity." The other directed the secretary of the treasury, to prepare a plan for that purpose, and to report the same to the house, at its next meeting."

On the 9th of January, 1790, Alexander Hamilton, secretary of the treasury, agreeably to order, reported to the house of representatives, a plan for the support of public credit. This was eloquent, argumentative, and, at the same time, ju

dicious, and practical. It embraced a variety of matter tending to the establishment of a system, for funding the public debts, both of the United and individual States. With great perspicuity and energy, the secretary pointed out the political advantages of credit; the moral obligations, incumbent on public bodies, as well as individuals, to perform their contracts; that the debt of the United States was the price of their liberty; that, if properly funded, it would answer many of the purposes of money, and invigorate the operations of agriculture, commerce, and manufactures. After premising a variety of arguments, in support of these opinions, he proceeded to discuss the principles, on which he proposed to found a system, for the support of public credit. He observed, that the foreign debt should be provided for, according to the precise terms of the contract; but hinted, that domestic creditors should, for their own sakes, voluntarily agree to abate something of what rigid justice gave them a right to demand, lest, by overstraining the faculties of the nation, they might meet with disappointment, from the inability of the states, to make complete, immediate, and punctual payment, of the full amount of the current interest. He therefore proposed a choice of several plans; either to fund the whole, at four per cent., or two-thirds, at six per cent.; and the other third, to be payable in vacant lands, or deferred altogether, and without interest, for ten years. He examined, with great ability, the propriety of discriminating between original holders, and subsequent purchasers; and decided against all discrimination, as involving a breach of public faith, since the evidences of the debt were at all times negociable. He, in like manner, contended, that the proposed funding system should embrace the debts of the individual states, as well as of the union; since they were contracted, in a common cause, for defence against a common enemy. That the consent of the subscribers should be voluntary, he proposed, that the same provisions should be made, for those public creditors, who did not come into the proposed modification of debt, as for those who did.

These propositions, and the principles of the funding system in general, gave birth to animated discussions. The most