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DEBTS OF THE STATES.

241

could this tribute be paid to his person exclusively, with. out in some degree producing a share of such feeling for his office. North Carolina, in this recess, gave up her opposition ; and her legislature now by a vote declared its adhesion to the union.

The next session of congress commenced in January, 1790. Its first important business was to act upon the famous report of Mr. Hamilton, the secretary of the treasury, in which he proposed a plan for funding the public debt by raising a loan equal to the whole amount of the debt. "To this the anti-federal party objected; but not withstanding the opposition to the secretary's measure, it was finally agreed to. But a very important part of the arrangement remained behind. This referred to the debts incurred separately by each state for carrying on the war. These 'Hamilton proposed that congress should

pay, and throw into the common fund. The opposition maintained that each state should account for, and settle its own debt. And this they urged, on the principle that if the federal government thus made the paying of interest and raising of funds to centre in itself, it would wield a power inconsistent with the rights and independa ence of the separate states.

This was a question upon which the federalists and anti-federalists, or republicans, as they now began to be called, were brought into direct collision, and the dispute was yet warmer than any hitherto known. Hamilton, however, finally succeeded in effecting a compromise, and by agreeing to have the seat of government removed farther south, secured the votes of the southern members, and carried this important measure, which not only preserved the public credit of the country entire, but gave strength and efficiency to the federal government at a period when weakness would have been highly and per. manently injurious.

The raising of supplies to meet the interest of this newly funded debt, was a task that still remained for the minister, and which was deferred till the following session of congress. This he proposed to accomplish by duties on wine, tea, and other luxuries; but chiefly by an

What state now accepted the constitution ?-When did congress again assemble ?-What was its first important business ?-Who opposed Hamilton's measure ?-Was the measure agreed to ?-What part of the arrangement remained unsettled ?--What was Han.ilton's proposition ? -Who opposed it ?-How did he succeed in carrying his point ?-What was the effect of his success ?---How old Hamilton propose to raise a

revenue?

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excise upon spirits distilled within the country. This last tax was violently opposed, but the opponents of the measure were unable to show any more feasible means of raising the necessary revenue'; and the excise bill passed.

Hamilton's next measure, for the completion of his commercial and moneyed system, was the establishment of a national bank. This was pronounced by the republican party to be aristocratical and unconstitutional. Jefferson apposed it with great earnestness, and both he and Hamilton having, after the passage of the bill, submitted their opinions to the consideration of the president, he after some deliberation decided in favour of his treasury minister; and the establishment of a national bank was in consequence decided.

The effect of this measure was soon felt in the revival of public credit and commercial prosperity. Public paper which had before been at a very great discount, rapidly rose to par, and property which had previously suffered great depreciation, now rapidly increased in value. Every department of industry was invigorated and enlivened by the establishment of a convenient and uniform currency.

While the financial system of the United States was thus acquiring permanence and diffusing prosperity under the directing genius of Hamilton, a cloud of war made its appearance among the Indian nations on the frontier. Of these, the Creeks in the south kept Georgia on the alert: whilst on the north-west beyond the Ohio, certain tribes, cherishing vengeance for past hostilities against them, carried on a desultory warfare; plundering and ravaging detached settlements. The president directed his atten lion first towards the Creeks, with whom adjustment was rendered difficult by their connexion with Spain. The first attempt to bring about an accommodation failed, but in 1790, Gillivray their chief, was induced to proceed to New York, and conclude a treaty.

Similar overtures made to the Indians beyond the Ohio, were not attended with any good result. Washington regarding the employment of a regular force as necessary, pressed on congress the increase of the army, which did

What tax was strongly opposed ?-What was Hamilton's next mea sure ?-Who opposed it!-How did Washington decide the matter ? What were ine immediate consequences of the establishment of a na tional bank :--What Indians were hostile to the United States ?--Wher were the Creeks conciliated ?-What Indians remained hostile :- Wha was proposed by Washington ?

DEFEAT OF GENERAL ST. CLAIR.

243

not at that time exceed 1200 men. But his recommendation was unavailing; and the settlers of the west were left for a time to their own defence.

At length, in 1790, some funds and troops were voted ; and in the autumn of that year, an expedition of 1500 men under General Harmer was sent up the river Wabash, where he succeeded in burning some Indian villages; but, in the end retreated with little honour and much loss. This check procured for Washington permission to raise a greater number of troops. Two expeditions were undertaken in the following year, both without success.

Finally, a considerable force under General St. Clair suffered a most disastrous defeat. He was surrounded by the Indians; and unable either to dislodge them or sustain their fire, the Americans were driven in disorderly flight a distance of 30 miles in four hours. They lost 60 afficers, amongst whom was General Butler, and upwards of 800 men, more than half their force; and yet the Indians were not supposed to outnumber their enemies.

This disaster gave rise to a proposal from the president to raise the military force of the country to 5000 men, which, after some opposition in congress, was finally agreed to.

The state of Vermont, which having been formally claimed by New York and New Hampshire, had, in 1777, refused to submit to either, and declared itself independent, applied in 1791 to be admitted into the Union, and was accordingly received. Kentucky, which had hitherto been a part of Virginia, was also admitted by an act which was to take effect on the first of June in the succeeding year.

In order to determine the ratio of representation according to the population, a census was required by the constitution to be taken every tenth year. The first was completed in 1791; by which it appeared that the whole number of inhabitants was 3,921,326, of whom 695,655 were slaves.

In the spring of 1791, Washington made a tour through the southern states, on which occasion, stopping upon the Potomac, he selected, according to the powers entrusted to him, the site for the capital of the Union. He was

What was the progress of the Indian war in 1790 ?--What is said of St. Clair's expedition ?--What increase of the military force of the na tion was the consequence of this disaster ?-- What states were admitted o the union ?-What is said of the census ?-What was its result in 1791 ? --What place did Washington seleci for the metropolis of the country? 244

WASHINGTON RE-ELECTED PRESIDENT.

greeted throughout his progress with affectionate welcome; nor was a murm:r allowed to reach his ear, although the odious excise law was, just about that period, brought into operation.

A new congress met at Philadelphia in the latter end of October; and, in his opening speech, the president principally alluded to the great success of the bank scheme, the shares for which had all been subscribed for in less than two hours after the books were opened ; to the operations of the excise law, and the obstinate resist ance of the Indians.

Washington's first term of office being about to expire, he was, in the autumn of 1792, elected a second time to the office of president, for another term of four years, commencing March 4th, 1793. Mr. Adams was again elected vice-president.

Washington accepted the presidency at a moment when the country was about to stand most in need of his impar tial honesty and firmness. The French revolution had just reached its highest point of fanaticism and disorder; and the general war which it occasioned in Europe put it out of the power of the president and the people of the United States to remain indifferent spectators of what was passing.

The French republic was about to appoint a new envoy to the United States; and questions arose as to whether he should be received, and whether the treaty concluded with the monarch of France, stipulating a defensive alliance in case of an attack, upon the part of England, was now binding on America.

These, and other questions arising out of them, being submitted by the president to his cabinet, after much discussion, in which' Hamilton and Knox were for breaking with the new government of France, and Jefferson and Randolph were for recognising it; they agreed that, for the sake of preserving neutrality, a proclamation should be issued, forbidding the citizens of the United States from fitting out privateers against either power. The president resolved to receive the envoy, and it was agreed that no mention should be made of the treaty, or of its having been taken into consideration.

How was he received on his tour through the southern states?_When did a new congress meet ?-To what did Washington allude in his ?pening speech ?-When were he and Mr. Adams re-elected ?--What was now passing in Europe ?-What questions arose respecting the rela :ions of the United States with France !-How was the cabinet divided ? -What was finally agreed on ?

PROCEEDINGS OF CITIZEN GENET.

245

The new envoy, M. Genet, an ignorant and arrogant individual, instead of sailing to Philadelphia, the seat of government, and communicating immediately with the president or ministers, landed at Charleston, in South Carolina, and there remained six weeks superintending and authorising the fitting out of cruisers to intercept British vessels. The enthusiasm with which he was welcomed by the people, both at Charleston and during his land journey to Philadelphia, induced citizen Genet to elieve that the envoy of France must as powerful as its name was revered. He deemed that, relying on the popular support, he might set himself above the cautious scruples of the existing government.

Accordingly, in the discussion which ensued between him and Jefferson on his improper conduct, he used the most insulting tone, and threatened to appeal from the president to the people.

This expression sealed his fate. The people at once abandoned the spoiled favourite, when he talked of insulting their beloved chief in this manner. The well earned popularity of Washington could not be shaken by the blustering of this insolent foreigner. He was deserted by his warmest admirers, and when the government determined on preserving its neutrality, had demanded and obtained his recall, the envoy, not daring to return to a country where it might be considered one of the rights of man to take off his head, quietly retired into obscurity and oblivion, and lived for many years under the protection of the very government which he had dared to insult.

General Wayne, who had been appointed to carry on the Indian war, after the defeat of St. Clair, marched against them at the head of 3000 men, and in an action fought on the banks of the Miami, August 20, 1794, totally routed them and destroyed their forts and villages. This action was followed by a treaty which gave security to the north-western frontier, and soon occasioned a rapid increase in the population of that favoured region.

"The excise law was highly unpopular in many parts of the country. The inquisitorial character of such regulations must always render them obnoxious to popular hatred. In Pennsylvania, particularly, the dislike rose

How did the French envoy proceed ?-What was Genet's threat ?What was ine consequence ?-What was done by General Wayne ? What was the consequence of his victory ?-In whatala?e was the excise law forcibly opposed ?

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