1790.]

CONGRESS ADJOURNS.

445

of the United States at its market price, if that did not exceed the par value.

An act for establishing the temporary and permanent seat of government. By this, Congress was to meet at Philadelphia until the year 1800, after which the permanent seat of government was to be on the Potomac.

An act providing further revenue, by which an excise was laid on distilled spirits, and an addition made both to the specific and the ad valorem duties.

An act allowing pensions to disabled soldiers and sea

men.

To this list we may add the following acts as meriting special notice :

An act to regulate the trade with the Indians; to favor the progress of the useful arts; to secure the copyright to authors; to authenticate records and judicial proceedings from one State to another.

After a laborious session of seven months, Congress adjourned on the seventh of August, to meet again on the seventh of December.

The line of division between the two parties of Federalists and anti-Federalists had become marked during this long and busy session; and no one question had contributed so much to that result as the funding of the public debt, and the assumption of the State debts. Those measures had added strength to the jealousy entertained of the power of the Federal government, and the manifestation of this jealousy had augmented the zeal to support the government, and excited a further dread of the unfriendly feelings entertained towards it.

At the succeeding session of the Virginia Legislature, in defence of the rights of the States, it was fain to express its dissatisfaction with the assumption of the State debts as unwarranted by the Constitution, which

446

OPPOSITION TO THE ADMINISTRATION. [CHAP. V.

limited the power of the Federal government to pay the debts of the States in their collective capacity. It also condemned the irredeemable quality of a part of the public debt, as contrary to sound policy, and as indicating a disposition to perpetuate the debt by way of increasing the influence of the Federal government. It, lastly, condemned the practice of the Senate in sitting with closed doors, which practice had been for some time an object of popular jealousy, and a theme of newspaper censure. The assumption was also condemned by the Legislatures of Pennsylvania, Maryland, and North Carolina. These sentiments extensively prevailed in the last-mentioned State, and were adopted by individuals in all the States. A beginning, in fact, was now formed of a regular opposition to the views and objects of the party of which Mr. Adams, the Vice-President, and Mr. Hamilton were regarded as the head; for though their plans often had the support of General Washington, his attachment to republican government was not then doubted, or if it was by a very small number of minds prone to suspicion, the attachment of the people to him, and their confidence in his integrity were too great to be shaken; and no one could then venture to assail him, without being certain of injuring himself in the public estimation.

The next session of Congress was held at Philadelphia. In the President's opening speech, delivered on the eighth of December, he congratulated them on the continuance of the public prosperity, and of the progress of public credit, manifested by the rise in the price of the American stocks;' and that the product of the revenue had exceeded expectations.

He adverted to the hostile incursions of the Indians on the north-west, which had induced him to order out

1 The price had now risen to seventy-five cents in the dollar.

1790.]

CESSION OF INDIAN TERRITORY.

447

both regulars and militia for the defence of that frontier. Encouragement to navigation was recommended; the appointment of consuls abroad; the militia; a mint; weights and measures; the post-office and post-roads, were also brought to their notice.

He hopes not only that adequate provision will be made for paying the interest of the public debt, but also, as the resources of the country permit, for discharging the principal itself; and the western lands are spoken of as in all respects a desirable and valuable resource for that object.

The answer of the two Houses indicated undiminished harmony between them and the President, and that the opposition, which had been so plainly manifested, by minorities in each House, to Mr. Hamilton and his supporters, had not yet extended to Washington himself: yet in the debate which preceded the response of the House to the President's speech, there was evidence of some individual exceptions to the general rule.

In a treaty which had been recently concluded by the United States with the Creek Indians within the chartered limits of Georgia, an extensive territory, in which that State had claimed the right of soil, but which had been generally admitted to be in the Indians, was ceded to the United States. With this treaty Georgia had been much dissatisfied, and Mr. Jackson, from that State, with his wonted impetuosity, condemned the treaty for ceding away more than three millions of acres of land belonging to Georgia, and also for its containing secret articles, which he denounced as incompatible with the Constitution.

There was also some difference of opinion manifested as to the encouragement which should be given to navigation.

448

LAND OFFICE EXCISE.

[CHAP. V.

Notwithstanding these animadversions, the answer to the speech proposed by the Committee was unanimously adopted.

Two reports were received from the Secretary of the Treasury one on the subject of the public debt, and the other recommending the establishment of a national bank.

The first subject, however, which engaged the deliberations of the House was the establishment of a system of militia, which then, as at all subsequent periods, proved one of the most impracticable subjects. After much discussion of the details of the bill reported by a committee, it was recommitted, and an amendatory bill proposed, which was not finally acted on.

The next subject of their deliberations was the public lands. In the bill for the establishment of a land office, the price of the lands was inconsiderately limited to the low price of thirty cents an acre, though Mr. Sherman proposed to substitute fifty cents an acre, remarking that they would probably soon be worth that sum. The bill which was passed by the House, was postponed by the Senate.

Early in January, the subject of a duty or excise on spirits distilled in the United States, which the Secretary of the Treasury had recommended, was taken up, and it having been referred to a Committee of the Whole, it gave rise to a long and warm discussion.

This measure was opposed by Mr. Jackson, of Georgia, as bearing oppressively on the Southern States, which, having neither breweries nor orchards, were great consumers of spirituous liquors. Excises were denounced as a species of tax peculiarly odious in England. They were also said to be unnecessary, as the additional revenue might not be required.

1790.]

POLICY OF AN EXCISE DISCUSSED.

449

Similar arguments were urged by Mr. Parker, of Virginia.

Mr. Stone had no objection to additional revenue, but was averse to an excise.

Mr. Madison considered that, of all excises, that on ardent spirits was the least exceptionable. He said he should prefer direct taxation, were it not that this was against the public sentiment, and the opinion of a majority of the House.

Mr. Lawrence, of New York, was in favor of the bill. Mr. Steele, of North Carolina, was opposed to an excise.

He stated that the Assembly of North Carolina had refused to take an oath to support the Federal Constitution, and also to admit prisoners under the laws of the United States into the jails of their State-all indicating hostility to the General government; and he urged that nothing should be done to increase the local discontent. He preferred a direct, or even a poll tax; and urged that, under an excise, the people of his State would pay ten times as much as the people of Connecticut.

Mr. Livermore was in favor of the bill, as this tax was every way preferable to direct taxation.

Mr. Bloodworth, of North Carolina, was opposed to the bill.

Mr. Sedgwick spoke in favor of it; and of the four ordinary modes of taxation, he pronounced this to be the least objectionable.

Mr. Smith, of South Carolina, defended the bill, and insisted on the necessity of obtaining further revenue.

Mr. Giles, of Virginia, agreed that a further revenue was required, and he thought that the objections made to the excise were for want of information. He believed the people would acquiesce in it.

VOL. I.-29