The Anti-Federal party by their pertinacious, nay morbid perseverance in a wrong course, exposed themselves to the same penalty which was at a later period inflicted upon their old opponents—as a party they were overthrown and ruined.

The merit of discouraging and finally extinguishing this unnatural, unprofitable, and unnecessary struggle between the friends of the General and State governments, and of vindicating the Federal Constitution, by placing the peculiar principle it sought to establish for the government to be constituted under its authority, that of an imperium in imperio, upon a practicable and safe footing, was reserved for the administration of Thomas Jefferson. For the evils arising from the pernicious rivalry between agencies, upon the harmonious coöperation of which the framers of the Constitution relied for the success of that instrument, the remedy recommended by Mr. Jefferson in his inaugural address, as expressed in his own inimitable language, was "the support of the State governments in all their rights, as the most competent administrations for our domestic concerns, and the surest bulwark against anti-republican tendencies: the preservation of the General Government in its whole constitutional vigor, as the sheet-anchor of our peace at home and safety abroad." These propositions, so simple, so natural, and so plainly in accord with the spirit of the Constitution, though, in common with other suggestions from the same source designed by their author to give repose to an over-agitated community, received at the time with indifference by incensed partisans, met with a cordial welcome from the great body of the people. Their fitness and probable efficacy could not be successfully controverted, and although they did not escape factious opposition, a majority of the people, tired of the unavailing agitation which the subject had undergone, and more and more satisfied of Mr. Jefferson's sincere desire to advance the general interest, embraced them with constantly increasing earnestness, and sustained them until they became the successful as well as settled policy of the Government. Angry passions, having their origin in this prolific source of partisan strife, which swept over and convulsed the country during the Government of the Confederation, and for at least twenty years after the adoption of the new Constitution, have been subdued. The State governments, increased in number from thirteen to more than thirty, with no other powers than those reserved to them by the undisputed provisions of the Constitution, have advanced to a degree of dignity and usefulness which has enabled them to extend to their citizens seven eighths of the aid and protection for which they look to government, either State or national, and has also removed from their representatives all fear of the encroachments of the Federal Government; whilst the latter, having proven itself able to sustain itself without the aid of constructive powers, and to perform with promptitude and success all the duties assigned to it, is no longer disturbed by apprehensions of the factious spirit and grasping designs once so freely charged upon the State authorities.

For this auspicious state of things we are beyond all doubt indebted, more than to any other cause, to the conservative character of Democratic principles and the unwavering fidelity of the party that sustains them.

To understand truly the advantages which the country has derived from the success of this policy, and the defeat of that to which it was opposed, we have only to picture to ourselves what the condition of the State governments must have been if the latter had triumphed, and to compare it with the actual state of things. Assuming that the desire to divest them of the authority which they had gradually acquired, as occasions for its exercise were developed by the necessities of the public service, at one time so strong with leading Federalists and as we have seen so openly avowed, had been limited to what was actually proposed, viz., to give to the General Government the power to appoint their governors, and through them the most important of their minor officers, including those of the militia, with an absolute veto upon all State laws,—what, judging according to the experience we have had, would now have been the character and condition of those governments? Without the authority required to make themselves useful, or respectability sufficient to excite the ambition of individuals to be honorably employed in their service, and thus to divide their attention and regard between the Federal and State governments, they would have sunk gradually into feeble, unimportant, characterless establishments—mere places for the sinecure appointments of the former. Contrast institutions like these—and only such could have been possible under the policy advocated by the leading Federalists—with the galaxy of independent governments of which we now boast, such as no confederation, ancient or modern, possessed, vested with authority and dignity, and filling the States respectively with monuments of their wisdom, enterprise, usefulness, and philanthropy; and contrast the Federal Government, resting as it now does on these tried and ample foundations, with one based on establishments like those to which it was proposed to degrade the States, and we will have some idea of the dangers that the people of the United States have escaped, and the advantages they have secured by the wisdom of their course and the patriotism of those who advised it. If the Democratic party of Jefferson's time, and under his lead, had effected nothing else for the country, they would have done enough in this to deserve the perpetual respect and gratitude of the whole people.

Yet this was but the beginning of their usefulness, subsequent to the adoption of the present Constitution.

No sooner had the efforts of the leaders of the Federal party to break down the power and influence of the State governments been arrested through the triumph of the Democratic party in the great contest of 1800, which was to a great extent carried on in their defense, than an attempt was set on foot to rescue a portion of the political power lost by the former, by raising the judicial power—the dispensers of which were to a man on their side—above the executive and legislative departments of the Federal Government. Of this enterprise, its origin, progress, and present condition, I have taken the notice which I thought was demanded by its importance. That it was unsuccessful, and that the balance of power between those departments, so necessary to the security of liberty and to the preservation of the Government, has not been destroyed, is altogether due to the persevering opposition of the Democratic party under the same bold and capable leader.

Where the points in issue between political parties have been of so grave a character as those in the United States, it is not an easy matter to decide on their relative importance, or in which the right and the wrong was most apparent. Whilst some have resolved themselves mainly into questions of expediency, in respect to which errors may be committed without incurable injury to our institutions, there have been others striking at their roots, which would, if differently decided, have ended in their inevitable destruction. The two to which I have referred were emphatically of the latter character, and hence the inestimable value of the successful resistance that was made on the Democratic side.

Hamilton's funding system, though involving in respect to the assumption of the State debts a grave constitutional question, was in its principal features one of expediency. Yet it was an important one, by reason of the serious consequences that were apprehended from its assumed tendency, and produced impressions upon the public scarcely less marked than were made by any public question which had before or has since arisen in this country. The character of that system, and the injuries that were anticipated from its establishment, have been spoken of in a previous part of this essay. Only a slight consideration of the operations of a similar system elsewhere will be sufficient to show how greatly the welfare of nations has been affected by their course in respect to it.

Of these, England, from her present condition in regard to her public debt, compared with that in which it is believed she might have stood if her course in that respect had been guided by wiser counsels, presents the most instructive example. Ours derives interest scarcely less impressive from the evils we have avoided by abandoning, whilst that was yet in our power, the further imitation of her example after we had fully begun to imitate it. That the system was established here with much éclat, and under explanations and circumstances indicative of a determination on the part of the men in power to adhere to it as long as and whenever a public debt existed, all know. It is also known that the practice of funding the public debt, for which it furnished the plan, has long been discontinued. Through what agency and upon what inducements that discontinuance has been brought about, and who is entitled to the credit of protecting the country from the evils flowing from the practice elsewhere, can only be ascertained by an impartial examination of its further history. To bestow that attention upon the subject is perhaps not necessary for instruction or example, as a national bank has not become more completely an "obsolete idea" amongst us, or more thoroughly condemned in public opinion than a funding system. Still there are many considerations which render such an examination an object of curiosity certainly, and one not destitute of higher interest. If the change which was effected in the policy and action of the Government in this regard has been as advantageous as with the light which experience has thrown upon the subject cannot be longer doubted, it is highly proper that those who brought about the reform should have the credit of it.

No important transaction upon which patriotism of such an order and intellects of such caliber as distinguished the public men of that day were earnestly employed, can be without interest to inquiring minds of this. It is so long since the whole affair has passed from public attention as to make it an unfamiliar subject to most of us. I confess it was so to me, and those who read these sheets will not complain if the interest I have taken in following it to its termination shall at least save them from some of the trouble that would otherwise have been necessary to master its details.