[14] The close of the Fourth Congress terminates the presidency of General Washington, and presents, a proper point for a retrospective view of the working of the Government for the first eight years of its existence. Such a view is full of instruction, and deserves to be taken; and first of the finances. Moderate expenses, and moderate taxes were the characteristics of this branch of the service. The support of the Government, called the Civil List, and comprehending every object of civil expenditure, was, for the year 1796, (the last of Washington's administration,) $530,392, and the duties on imports about five millions of dollars—or nearly ten times as much as the support of the Government required—leaving nearly nine-tenths to go to the public debt, the preservation of peace with the Indian tribes, defence of the frontiers, protection of commerce in the Mediterranean; and other extraordinary objects. This amount was produced by moderate duties—the ad valorems, 10, 12-1/2, 15 and 20 per centum—and mainly produced by the two first rates, the two latter chiefly applying to objects of luxury not used by the general mass. Thus: The amount of imports subject to the 10 and the 12-1/2 rates was $28,267,000, while those subject to 15 were $7,850,000; and those subject to 20 per centum only the third of one million. The average of the whole was about 13 per centum. The specific duties were on the same moderate scale; and the cost of collecting the whole was 3.73 per cent. The interest on the public debt was three millions and a quarter; the Military Department, $1,300,000; Naval Department, $440,000; tribute to the Barbary powers, veiled under the name of foreign intercourse expense, was $300,000; while the regular diplomatic intercourse was only about $40,000. The whole expenditure of the Government was about 5-1/2 millions: its whole revenue something more—the excise on distilled spirits producing some $400,000. Thus, order and economy were established in the finances. Abroad peace had been maintained. The proclamation of neutrality, unanimously agreed upon in the Cabinet, saved the United States from the calamity of being involved in the wars of the French Revolution. The commercial treaty with Great Britain stopped the depredations which the British had commenced upon American vessels carrying provisions to France, and obtained indemnity for depredations already committed. With Spain the serious question of the free navigation of the Mississippi was settled; and, in addition to the right of navigation, a place of deposit for American produce and merchandise was obtained at New Orleans—the right to be absolute for three years, and afterwards until an equivalent place should be provided. (It was the subsequent violation of this right of deposit which led to the acquisition of all Louisiana.) Safety to the persons and property of American citizens in the Mediterranean Sea had been obtained, according to the means usual at that time, and upon terms to be endured until strong enough to do better. The formidable Indian war in the North-west, and the troublesome hostilities in the South-west, had been terminated, and peace given to the young communities on the Kentucky and Cumberland Rivers which, commencing without authority, were laying the foundations of future great States. A domestic insurrection (that of Western Pennsylvania) had been quelled, and happily without bloodshed—the exhibition of a large force, with Washington at its head, being sufficient to forbid resistance, and a wise humanity sparing all punishment. The new Government was solidly established, and amidst difficulties which might have been insuperable under any other President. Public credit, which had sunk so low under the Confederation, had risen to a high standard under the new Government; and a general commercial and agricultural prosperity pervaded the land.
[15] This was an extra session, called in the early months of Mr. Adams' administration, for the causes stated in his Message to the two Houses.
[16] The following is the speech referred to, Barras being the President of the Directory who addressed it to Mr. Monroe:
"Mr. Minister Plenipotentiary of the United States of America: By presenting to-day your letters of recall to the Executive Directory, you give to Europe a very strange spectacle.
"France, rich in her liberty, surrounded by a train of victories, strong in the esteem of her allies, will not abase herself by calculating the consequences of the condescension of the American Government to the suggestions of her former tyrants; moreover, the French Republic hopes that the successors of Columbus, Ramhiph, and Penn, always proud of their liberty, will never forget that they owe it to France. They will weigh, in their wisdom, the magnanimous benevolence of the French people with the crafty caresses of certain perfidious persons who meditate bringing them back to their former slavery. Assure the good American people, sir, that, like them, we adore liberty; that they will always have our esteem; and that they will find in the French people republican generosity, which knows how to grant peace, as it does to cause its sovereignty to be respected. As to you, Mr. Minister Plenipotentiary, you have combated for principles; you have known the true interests of your country: depart with our regret. In you we give up the representative to America, and retain the remembrance of the citizen whose personal qualities did honor to that title."
[17] This is a view of those depredations which has been lost sight of. Their injuries are now considered as falling exclusively upon the merchants: it was then agreed that they fell upon the community, the merchant indemnifying himself by insurances and increased profits.
[18] And is still so carried on.
[19] Taxed in Great Britain, with the privilege of commutation for a gross sum.
[20] This sum which amounted to one third of the amount of the notes and disposits, was a general rule for regulating the quantity of cash kept to answer their current demands.
[21] This taxation of bank notes presents the ready mode of regulating the paper currency of the States, and suppressing the mischief of small notes which are a constant source of depredation upon the laboring part of the community, a constant source of crime in the making and passing counterfeit paper, and the constant expeller of the constitutional currency. These small notes were hardly known at the time of this tax, which was so readily imposed, and therefore were taxed lightest: now they are a general circulation, and the most profitable part of a bank's issues; and, therefore, should be taxed highest, both on the principle of being most profitable to the banks and most injurious to the community.