That court which on a question of mere jurisdiction travelled out of the record to express an opinion against the administra tion of their country, will court the responsibility of pronouncing judgment against them, if they are not forbidden by principles too strong to be reasoned down.

It is impossible to leave this subject without adverting to the conduct of a portion of the legislature of Massachusetts, the direct tendency of which has been to lead to a separation of the union. Inflammatory resolutions, violent complaints of the injustice and oppression of the general government, have been heaped upon each other, to stimulate public prejudice, to prepare the public mind for stronger and more decided steps. Think not, sir, I advert to these things from any apprehension that these schemes will be effectual. I mention them to express my profound contempt for their impotent madness.

The leaders of these factious spirits are prevented from carrying their wishes fully into operation by two powerful divinities-interest and fear. The love of the union is yet sufficiently strong, in defiance of artifice and falsehood, to strike down the ruffian who dares to lift his sacrilegious hand against the constitution by which that union is to be perpetuated-the love of the union among the people of the east themselves. These infatuated leaders have not the nerve to carry into execution their mad designs. He who cowers under the falcon eye of an indignant adversary, will not court the fiery glance of angry steel.

But if there is to be found a leader, who, to the necessary corruption and to deadly ambition adds the nerve requisite to perform "the firstlings of his heart;" if by his influence madmen enough should enlist under his banners, the eye of reason can look fearlessly beyond the immediate consequences to the final result. That result is not dubious. The elements of society may be set in motion, may mingle in dreadful strife; the earth may rock to its deep foundations, but not one stone of the fabric of our government will be shaken from its place. Dreadful will be the consequences-horrible the scenes which will probably ensue. The fairest region of our country may become a "desert wild." The poor man's cottage and the rich man's palace may together be crumbled to dust. The blood of the innocent and the guilty, of the recreant and the brave, may mingle in one common stream-but one consolation is still left to virtue; those who raised the tempest will be the first victims of its fury.

Mr. Calhoun said, Some arguments and observations of mine on a former occasion, on the nature and character of opposition,

have on this called forth replies from many of the minority, and particularly from Mr. Gaston. He asserted that a majority might also be a faction, and cited the Federalist to prove its truth; with the additional fact, that when it is one, it is far more dangerous than a factious minority. If the gentleman had been more attentive, he would have found that there is nothing in my arguments that contradicts the position taken in the Federalist. What I said was in reply, and was intended to refute the assertion of our opponents on that occasion, that all the misfortunes. and miseries of free states originated in the blunders and folly of majorities. The error of this opinion I then sufficiently exposed, both by experience and reason. It has found no advocate on this occasion. I will not again repeat my reasons, but simply restate, that opposition in free states is strongly inclined to degenerate into a struggle for power and ascendancy, in which the attachment to a party becomes stronger than that to the country. This opinion I conceive is incontrovertibly established; in fact, the truth of it is but too manifest to all who have looked into the character of man, or who are acquainted with his history. On the contrary, I feel no disposition to deny that the majority may possibly become factious-that is, cease to consult the general interest. I claim no peculiar exemption for them-it made no part of my argument; I stated principles, but left their application to the good sense of the community. Much less do I feel disposed to contest the position that, if such a majority could and should by any misfortune exist in this country, it would be more dangerous than a factious minority. I could not doubt, for instance, that if the present minority could be swelled into a majority by the addition of one-third more to their ranks, and that they should, when in power, retain all of the principles which I hear them daily advance in this house, that they would not only be more dangerous than they now are, when their power is to divide and distract; but that it would be the greatest calamity that could befall our country.

The loan bill passed the house on the 3d of March, by a majority of 42, and shortly after became a law.

$10. While the loan bill was under discussion in the house of representatives, an act was passed authorizing the president to issue treasury notes to an amount not exceeding five millions of dollars. He was also authorized to issue a further sum not exceeding five millions, to be deemed as part of the loan subsequently authorized.

CHAPTER IV.

§1. Deficit in the revenue. §2. National bank. §3. New taxes. 54. National bank postponed. 5. Assumption of the direct tax. $6. Duty on distilled spirits. § 7. Licenses to retailers. § 8. Duty on sales at auction. § 9. Compromise of the Yazoo claims. §10. Louisiana land claims. 11. Liquidation of Florida claims. 12. Extension of credit to land purchasers. § 13. Organization of New York district court. § 14. Payment of money into the courts. 15. Allowance to marshals and district attorneys. § 16. Alteration of the judicial system. § 17. Residence of the attorney-general. § 18. Regulation of the post-office. § 19. Trophies of war.

§ 1. In the annual report of the secretary of the treasury the deficiency in the revenue, for the year 1814, had been stated at $700,000. The acting secretary had, however, suggested, that as the revenue for 1815 would produce probably $1,200,000 more than the revenue for 1814, it would rest with congress to decide whether it was necessary that new and additional revenues should be established during the present session. On the 28th of March, the new secretary of the treasury, in answer to a letter from the committee of ways and means on this subject, stated, that the proceeds of the internal revenue for 1814 would so far exceed the estimated amount as to cover the supposed deficit. In consequence of this letter the committee of ways and means had declined reporting any new taxes.

After the passage of the loan bill the price of stock experienced a considerable depression, partly in consequence, it is said, of the pressure of the eastern upon the southern banks for specie, which they had been enabled to do from Boston enjoying a monopoly of trade, owing to the existing blockades. This circumstance had excited doubts in the minds of several of the members friendly to the administration, as to the possibility of raising sufficient funds by loan for the service of the year, without making improper sacrifices, unless some further measures were put in operation.

2. Mr. Grundy, of Tennessee, accordingly, on the second of April, submitted the following resolution for consideration in the house of representatives:

Resolved, That a committee be appointed to enquire into the expediency of establishing a national bank; and that they have leave to report by bill or otherwise.

This subject had been previously agitated in the house, having been introduced on the 4th of January, by a petition from sun

dry citizens of New York, which was referred to the committee of ways and means. The petitioners state, that they are desirous of establishing a national bank, and of being incorporated, for the purpose of carrying on the business of banking, with a capital of thirty millions of dollars, at such places as the president and directors of the corporation shall appoint, or as shall be designated in the act of incorporation. That they are induced to make this application to the general government, from a sincere belief, that the establishment of a national bank will be no less beneficial to the public, than to the individuals who may be concerned in it. "Among the most obvious and important advantages which the government would acquire, by such an establishment," say the petitioners, "would be the means of borrowing from it money for the public service, not only on better terms, but with much greater facility, than can be done from individuals. In order to secure to the government this benefit, your petitioners propose, that the bank shall loan to the government, whenever required, such sums as they may want, so as they shall not, at any time, exceed one half of their capital, and that a proper clause be inserted in the act of incorporation, to carry this proposal into effect.

"The other fiscal concerns of the government would also derive great aid from a national bank, through which their operations might be conducted with much more economy and advantage, than they can be through distinct state banks.

"Your petitioners think they may, on this subject, safely appeal to the past experience of the government, for the inconvenience they have suffered for the want of such an institution. Your petitioners, at the same time, beg leave to suggest the impolicy of having the monied transactions of the general government dependent on state institutions, to carry them into effect.

"Your petitioners beg leave further to state, that the whole circulating medium of the United States is now appropriated by the different state banks, who, in lieu thereof, circulate their own paper, to the amount of at least fifty millions of dollars, to the exclusive benefit of their stockholders: whereas, by the establishment of a national bank on the plan proposed, the people in every part of the United States would participate in its benefits, and the government would receive from it accommodations in various ways, which the state banks have not the means of affording and in converting the circulating medium to the use of government, congress will find less difficulty, and less inconvenience will be occasioned, than in raising the same amount of money in any other manner.

"The establishment of a national bank will also be attended with political effects, which the wisdom of government will not fail duly to appreciate. Men of wealth and influence, without regard to party distinctions, will, in the different parts of the United States, embark a part of their fortunes in such an institution; and as its prosperity and security must depend upon the stability of the union and its present form of government, the motives of interest, to such as become stockholders, will be superadded to those of patriotism to contribute to their perpetuity."

The committee of ways and means, to whom this petition had been referred, in a few days reported "that the power to create corporations within the territorial limits of the states, without the consent of the states, is neither one of the powers delegated by the constitution of the United States, nor essentially necessary for carrying into effect any delegated power."

On the 19th of February, however, the same committee reported a bill incorporating a bank in the city of Washington with a capital of thirty millions of dollars, but without the power to establish branches in the states. This bill had not been acted on, though six weeks had elapsed, at the time Mr. Grundy submitted his resolution.

§3. The house having adjourned without a decision, the following day, before the resolution was again taken up, Mr. Desha, of Kentucky, submitted the following:

Resolved, That the committee of ways and means be instructed to enquire into the expediency of authorising the president of the United States, to cause to be issued, if he deems it necessary, any amount of treasury notes not exceeding fifteen millions of dollars, in sums not less than ten nor more than one thousand dollars, bearing an interest of six per centum per annum, payable quarter yearly, except the first year, and that at the end of the year, reimbursable in five years; and also into the expediency of laying duties on watches, gold seals, plate, boots, and fine hats, to discharge the interest on said notes.

Mr. Wright, of Maryland, moved to add to the list of taxable articles, lottery prizes, a tax which he said every body would be glad to pay; saddle and carriage horses, certainly articles of luxury; houses and lots in the District of Columbia, which are now exempt from the direct tax; and a continuance of the direct tax on land; to which Mr. Stuart, of Maryland, moved to add race horses, mares, and fillies.

Mr. Taylor, of New York, said he regretted to see the course this business was now taking. The committee of ways and means had not been inattentive to the subject embraced in