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sively than at the rate which the resolution author- CHAP. IV. ized. Those who will not be satisfied with this argument, and say the government may redeem faster, will please to remember, that by making the entire debt redeemable, they will have more to redeem. To an imaginary increase of the power, will be added an actual increase of the task to be performed. But it was believed that the assertion would not seriously be made, that the public would probably command more money than could be employed in the purchase of stock at and under par.

It may be asked, what advantage then is to be derived from giving to stock the irredeemable quality in the resolution?

It is answered, that the object of the legislature is to establish public credit. That is effected when the stock will sell at par. The American market for stock is limited. The people of this country possess little active property, and that little is fully employed in active pursuits. A poor market cannot give credit to a great debt. The great market... the trading and monied world... must be regarded. To qualify stock for the great European market, there must be something permanent in its character. A high interest for a short time will not recommend it so strongly as a lower interest for a longer time. By giving it this character, its price will be raised, and the holders will receive in that augmentation of price, a compensation for the proposed reduction from the amount. This circumstance will contribute also to the permanence of its value, and by diminishing

CHAP. IV. that fluctuation which is so favourable to pernicious speculation, will diminish speculation itself.

1790.

After a long and animated debate, the resolution was carried. A bill at length passed both houses, funding the debt upon principles which lessened considerably the weight of the public burdens, and which gave much satisfaction to the public creditors. The proceeds of the sales of the lands lying in the western territory, and, by a subsequent act of the same session, the surplus product of the revenue after satisfying the appropriations which were charged upon it, with the addition of two millions which the president was authorized to borrow at five per centum, constituted a sinking fund to be applied to the reduction of the debt. The effect of these measures was great and rapid. The public paper suddenly rose, and was for a short time above par. The immense wealth which individuals acquired by this unexpected appreciation, could not be viewed with indifference. By those who participated in its advantages, the author of a system to which they were so greatly indebted was regarded with an enthusiasm of attachment, to which scarcely any limits could be assigned. To many others, this adventitious collection of wealth in particular hands, was a subject rather of chagrin than of pleasure; and the reputation which the success of his plans gave to the secretary of the treasury, was not contemplated with unconcern. As if the debt had been created by the existing government, not by a war which gave liberty and independence to

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the United States, its being funded was ascribed CHAP. IV. by many, not to a sense of justice, and to a liberal and enlightened policy, but to the desire of bestowing on the government an artificial strength by the creation of a monied interest which would be subservient to its will.

The effects produced by giving the debt a permanent value, seemed to justify the predictions. of those whose anticipations from that source had been the most favourable. The sudden increase of monied capital derived from it invigorated commerce, and consequently gave a new stimulus to agriculture.

About this time there was a great and visible improvement in the circumstances of the people. Although in producing this result the funding system was certainly not inoperative, it cannot be justly ascribed to any single cause. Progressive industry had without doubt gradually repaired the losses sustained by the suspension of commerce during the war, and the influence of the constitution on habits of thinking and acting, though silent, was far from being inconsiderable. In depriving the states of the power to impair the obligation of contracts, or to make any thing but gold and silver a tender in payment of debts, the conviction was impressed on that portion of society which had looked to the government for relief from embarrassment, that personal exertions alone could free them from difficulties; and an increased degree of industry and economy was the natural consequence of such an opinion.

CHAP. IV.

1790.

On the 12th of August, after an arduous session in which several acts of general importance were Adjournment passed, congress adjourned, to meet in Philadel phia the first monday in the following December.

of congress.

While the discussions in the national legislature related to subjects, and were conducted in a temper, well calculated to rouse that active spirit of party which in popular governments especially feels too many excitements long to remain dormant, the external relations of the United States presented an aspect which was far from being perfectly serene. To the hostile temper manifested by the Indians on the western and southern frontiers, an increased degree of importance was given by the apprehension that their discontents were fomented by the intrigues of Britain and of Spain. From Canada, the Indians of the north west were understood to be furnished with the means of prosecu ting a war which they were stimulated to continue, and to the influence of the governor of the Floridas had been partly attributed the failure of the negotiation with the Creeks. That this influence would still be exerted to prevent a friendly intercourse with that nation was firmly believed; and it was feared that in the open hostilities threatened by the irritable dispositions of individuals in both countries, Spain might be induced to take a part. From the intimate connexion subsisting between the members of the house of Bourbon this event was peculiarly deprecated, and the means of avoiding it were sought with solicitude. Το renew the pacific overtures which had already been rejected, unless they could be made under

more favourable circumstances, promised no bene. CHAP. IV. ficial result, and might diminish the respect with 1790. which those savages contemplated the American government; yet something was to be essayed to avert a war, which, should it even extend no further, could be attended only with public ex. pense, and private calamity. The motives for negotiating a treaty with the Creeks being so powerful, it was determined to make another effort to accomplish that object; but it was at the same time resolved that the agent to be employed should visit the country on other pretexts, and should carry a letter of introduction to M'Gillivray, blending with other subjects a strong representation of the miseries which a war with the United States would bring upon his people; of the indiscretion of breaking off the negotiation at the Rock landing; and an earnest exhortation to him to repair with the chiefs of his nation to the seat of the federal government, in order to effect a solid and satisfactory peace. The bearer of this letter was also furnished with passports and letters of safe conduct, to be used if the occasion should require them; but he was instructed not to avow the authority with which he was invested, unless he should be well assured that the propositions he was authorized to make would be favourably received. For this service colonel Willett, a gallant and intelligent officer who had served through the war of the revolution, was selected; and he acquitted himself so well of the duty assigned to him, that the chiefs of the nation, with M'Gillivray at their head, were induced to