BANK AND TARIFF.

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NATIONAL BANK.

During the continuance of the war, ineffectual attempts were made to adjust the currency of the country in order to establish public credit and meet the rapidly accruing public debt. At the close of the war, Government set earnestly at work to establish financial credit. Mr. Dallas, Secretary of the Treasury, reported in favor of a National Bank. The measure was indorsed by the Democrats in Congress, among whom were Messrs. Clay, Calhoun, and Crawford, and a bill passed the House by a vote of eighty to seventy-one; the Senate by twenty-two to twelve. Politically, the yeas were more than twothirds Democrats, the nays about three-fourths Federalists. All of these, however, were not opposed to the bill, but objected to certain provisions, and voted against it in order to recommit and amend.

The revolution on the question of a bank, since the ineffectual effort of five years previous, to effect a recharter of the old bank, is marked. This last is eminently a Democratic measure. The Secretary who recommended, the committee which drafted the bill, the Congress which passed it, and the President who sanctioned it, were of Democratic faith.

TARIFF-REVENUE AND PROTECTIVE.

The revenue system, established immediately subsequent to the adoption of the Federal Constitution, afforded an incidental protection to American industry. But during the war of 1812, the necessity of articles for national defence, and requisites essential to individual comfort—which formerly had been the subjects of importation -rendered apparent the importance of furnishing a do

mestic supply. Manufactories were consequently established. This interest grew in magnitude and importance during the hostilities with England, and under the heavy duties imposed temporarily, for revenue, after the war had terminated. It had increased to a prominence second only to agriculture and commerce. This development of American capabilities awakened a new interest, and gave direction to the popular mind. Protection, hitherto secondary, now became of primary importance, and was advanced for the sake of protection. This reversed the old course of legislation, and introduced a new and important question of constitutional law and of national expediency.

The first bill, providing for a tariff of duties, was brought before Congress in 1816. This measure was opposed by Mr. Webster and most of the members from the eastern States; also by John Randolph. Mr. Clay, ever a resolute defender of the protective system, gave it his entire support, and was seconded by Messrs. Calhoun and Lowndes of South Carolina. The measure received support from the South on the ground of the advantages arising therefrom to the cotton-growing interest; while, with equal pertinacity many of the old school Southern Democrats, under the lead of Mr. Randolph, threw their weight against it, as having a tendency to build up the manufactures of the middle and eastern States, at the expense of the South. At the same time the mercantile representatives" denounced the system of protection to American manufactures, as but a mere continuation of that scheme of commercial restrictions and governmental interferences which had already involved the country in so many calamities." The Federalists, in their opposition to the protective system on this ground, and because of the general demoralization of a manufacturing population,

THE TARIFF ITS CHARACTER.

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appeared to have forgotten Hamilton's report and their position respecting it, and the Democrats seemed equally oblivious of past predilections; as they now republished that famous report in their newspapers, and employed Federal thunder to destroy present Federal power. A few years afterward we shall find this position of parties entirely reversed, and each party in its new relations advocating with undiminished zeal free trade or protection.

The new tariff measure-which was slightly modified prior to its final passage-arranged imported articles into three classes: 1st. Those of which a full domestic supply could be produced; 2d. Those of which only a partial domestic supply could be afforded; and, 3d. Those produced at home very slightly, or not at all. On the first class it was proposed to levy a duty heavy enough to secure the market to the domestic manufacturer, leaving it to domestic competition to keep down the price. On the articles of the second class a duty of twenty per cent. was proposed, thus leaving the field open for foreign competition, and so protecting home labor that it might successfully rival and ultimately supply the whole market. The duties on the third class were adjusted more with reference to revenue than tariff, being articles of quite general consumption, and were, for the most part, of foreign production.

The selection of a successor to Mr. Madison attracted general attention both in and out of Congress. Mr. Monroe was indorsed by Mr. Madison; but his nomination was strenuously resisted from personal considerations and an unwillingness to continue the "Virginia Dynasty," which had furnished the Union with Presidents twenty-four years out of twenty-eight. The opposition to Mr. Monroe was not concentrated, and at a caucus of

the Democratic members of Congress, held March 16th, after two ineffectual attempts to pass a resolution declaring it inexpedient to make caucus nominations by members of Congress, Mr. Monroe was nominated, receiving sixty-five votes, to fifty-eight for William H. Crawford. Daniel D. Tompkins received eighty-five votes for Vice-President, and Simon Snyder of Pennsylvania received thirty votes. These nominations were declared

unanimous.

The Federalists, still adhering to their party organization, put in nomination Rufus King for President. The Democratic candidates were elected by an overwhelming majority, receiving one hundred and eighty-three votes to thirty-four for the Federal candidates.

CHAPTER VII.

ADMINISTRATION OF JAMES MONROE, 1817-1825.

MR. MONROE was inducted into office on the 4th of March, 1817. His administration commenced under auspicious circumstances. The war with England had been brought to a peaceful and happy issue; party spirit was subdued, and the energies of the people were directed anew to the development of our national resources. The liberal tone of the President's inaugural address inspired confidence, and the future was hailed as an era of good feeling.

The President selected as his cabinet officers, John Quincy Adams, Secretary of State; William H. Crawford, Secretary of the Treasury; John C. Calhoun, Secretary of War; and William Wirt, Attorney-General. These were all of the Republican or Democratic school of politics.

The Administration was sustained by an overwhelming majority in both Houses of the fifteenth Congress. This body convened Dec. 1st, 1817. Henry Clay was chosen Speaker by a vote almost unanimous. From this time the old party lines, which had been drawn with so much rigor, became extinct in the national Congress.

Interests of great national magnitude demanding the consideration of Congress, evolved, as all momentous in