UNITED STATES.

Period VE.

DISTINGUISHED FOR THE FORMATION AND ESTABLISHMENT OF THE FEDERAL CONSTITUTION,

Extending from the disbanding of the army, 1783, to the inauguration of George Washington, as president of the United States, under the Federal Constitution, 1789.

Section I. During the revolutionary war, the American people looked forward to a state of peace, independence, and self-government, as almost necessarily ensuring every possible blessing. A short time was sufficient, however, to demonstrate that something, not yet possessed was necessary to realize the private and publick prosperity that had been anticipated. After a short struggle so to administer the existing system of government, as to make it competent to the great objects for which it was instituted, it became apparent that some other system must be substituted, or a general wreck of all that had been gained would ensue.

Section II. At the close of the war, the debts* of the Union were computed to amount to somewhat more than forty millions of dollars. By

* These debts were of two kinds, foreign and domestick. The foreign debt amounted to near eight millions of dollars, and was due to indivi duals in France-to the crown of France-to lenders in Holland and Spain. The domestick debt amounted to some more than thirty-four millions of dollars, and was due to persons who held loan office certifi cates to the officers and soldiers of the revolutionary army, &c.

the articles of confederation and union between the States, congress had the power to declare war, and borrow money, or issue bills of credit to carry it on; but it had not the ability to discharge debts, incurred by the war. All that congress could do, was to recommend to the individual States to raise money for that purpose.

Soon after the war, the attention of congress was drawn to this subject; the payment of the national debt being a matter of justice to creditors, as well as of vital importance to the preservation of the Union. It was proposed, therefore, by congress, to the States, that they should grant to that body the power of laying a duty of five per cent. on all foreign goods, which should be imported, and that the revenue arising thence should be applied to the dimi nution of the publick debt, until it was extinguished.

To this proposal, most of the States assented, and passed an act, granting the power. But Rhode-Island, apprehensive that such a grant would lessen the advantages of her trade, declined passing an act for that purpose. Subsequently, New-York joined in the opposition, and rendered all prospect of raising a revenue, in this way, hopeless.

The consequence was, that even the interest of the publick debt remained unpaid. Certificates of public debt lost their credit, and many of the officers and soldiers of the late who army, were poor, were compelled to sell these certificates at excessive reductions.

Section III. While the friends of the national government were making unavailing ef

forts to fix upon a permanent revenue, which might enable it to preserve the national faith, other causes, besides the loss of confidence in the confederation, concurred to hasten a radical change in the political system of the United States.

Among these causes, the principal was the evil resulting from the restrictions of Great Britain, laid on the trade of the United States with the West Indies; the ports of those islands being shut against the vessels of the United States, and enormous duties imposed on our most valuable exports.

Had congress possessed the power, a remedy might have been found, in passing similar acts against Great Britain; but this power had not been delegated by the States to the congress. That thirteen independent sovereignties, always jealous of one another, would separately concur in any proper measures to compel Great Britain to relax, was not to be expected. The importance of an enlargement of the powers of congress was thus rendered still more obvious.

Section IV. During this enfeebled and disorganized state of the general government, attempts were made, in some of the states, to maintain their credit, and to satisfy their creditors. The attempt of Massachusetts to affect this, by means of a heavy tax, produced an open insurrection among the people. In some parts of the State, the people convened in tumultuous assemblies-obstructed the sitting of courts, and, finally, took arms in opposition to the laws of the State. The prudent measures of Gov. Bowdoin and his council, seconded by an armed force, under Gen. Linco'n, in the winter of 1786, gra