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tion of the conduct of the soldiers, and his desire to make a compensation to the widows and families of the sufferers; which proposition the president declined to accept. This was the "Dartmoor massacre," and, though it was not easy to forgive the outrage, we are glad to say that it led to no rupture of peaceful relations between our country and England.

While the people of the United States were rejoicing at the return of peace, with its manifold blessings, their attention was turned to the necessity of warlike measures in order to protect their rights in the Mediterranean, (p. 290.) A word or two of explanation will make it clear, how it happened that the dey of Algiers, despite the knowledge of American prowess, ventured to take measures which demand ed summary retribution.

During the administration of Washington, in 1795, a treaty had been concluded with Algiers, (see vol. ii., p. 368,) and the United States had agreed to pay to the dey, as tribute for the privilege of not being molested in the Mediterranean, which he and his fellow marauders on the African coast had the insolence to claim as belonging to them, the value, in maritime stores, of $21,600 annually. Year by year, this tribute had been paid to the entire content of the dey; but in July, 1812, he was induced, not improbably by some outside pressure or influence,*

to act in a very different manner. When the Alleghany arrived, loaded with the usual stores, the dey took upon him to complain of the quantity, quality, and worth of the goods sent to him; and in a passion, real or pretended, declared, that he would not receive them. He also ordered the vessel which had brought the stores to quit the port immediately, and the American consul with her, in spite of every attempt made by that officer to explain matters. A new demand was also made, which shows the dey to be an adept in the kind of cunning that enabled him to tyrannize over his own subjects with effect. The year of the Mohammedans, as our readers know, consists of three hundred and fifty-four days only, and therefore there would be a greater number of their years, in any given period, than of years computed in the usual manner. This peremptory Algerine had the assurance to insist, that the years contemplated in the agreement to send an annual tribute, were Mohammedan, not Christian, years; and that there were, in consequence, arrears of half a year's payments due to him, amounting in value to $27,000. The consul, Mr. Lear, was told, that unless he paid this immediately, he should be sent in chains to the galleys, the vessel and the stores in her should be confiscated, every American in Algiers condemned to slavery, and war declared against the United States.

*In Cooper's "Naval History," (vol. iii., p. 8,) there are reasons given for the belief, that British agents in Algiers had led the dey to the conviction, that the United States would be unable to maintain

themselves against the overwhelming naval power of England, and hence, that he might venture with im punity, upon acts of outrage and oppression. See, also, Mackenzie's "Life of Decatur," pp. 260-63.

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Finding that by no other means than compliance with this outrageous order he could avert the threatened penalties, the consul was compelled to get the money by borrowing it of a Jew, and by paying for the use of it, for thirty days, $6,750. But so soon as this was done, and ship, cargo, and consul were gone, the dey commenced a piratical warfare against American vessels, and captured all that he could. Mr. Madison, whose hands were filled with greater troubles, attempted, by confidential and friendly negotiation, to ransom the prisoners thus made; but the terms demanded by the insolent barbarian were so preposterous, that nothing could be done; and the war with Great Britain following immediately, the prisoners were reduced to the necessity of waiting the return of peace, before they could hope to be rescued.

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When that important event occurred, the president lost no time in giving attention to this subject. He fitted out the most effective squadron that could be got together, and put Bainbridge in command. The Guerriere, Constellation, and Macedonian, all famed in combats on the sea, with six smaller ships of war, were dispatched on the 20th of May, to the Mediterranean, in advance, under Commodore Decatur. In little more than three weeks his squadron was at Gibraltar, and there received intelligence which induced him to proceed at once against

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miral of the dey's fleet. fight of twenty-five minutes ensued, and at the end of it the Algerine struck to the Guerriere. Hammida was cut in two by a chain-shot, at the first broadside; and at the second, the pirates, not relishing such sharp shot, left their quarters and ran below, in fact, abandoning the ship to her fate. Dispatching his prize to Carthagena, Decatur continued his search, and two days afterwards came up with a brig of twenty-two guns, which, after a chase of three hours, ran into shoal water off the Spanish coast, and was there attacked and captured by the Epervier and other small vessels.

On the 28th of June, the squadron proceeded to Algiers, both to intercept the rest of the dey's fleet, and to open communications with him as soon as possible. Taking a position out of reach of their guns, Decatur, by a signal, invited the Swedish consul on board. With him came the captain of the port, and the terms proposed, as the basis of a treaty, were the absolute and unqualified relinquishment of all claims to tribute from the United States. The Algerine rejected this proposal quite scornfully, until he was assured of the destruction of the two ships, and the death of the admiral. When he found, to his amazement, that Decatur was in a condition to enforce whatever terms he pleased, after offering fruitless objections to some of the articles in the draft produced, the negotiation was closed. All the American captives were released, and the treaty was executed in three hours afterwards, to the satisfaction of the dey, as it

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proved, for another of the Algerine vessels hove in sight during the interval, and a single hour's delay would have been repaid by its capture. "Tribute renounced for ever," says Ingersoll, "prisoners emancipated, compensation for whatever losses were stated, together with stipulations for humanities of international law, were the terms of this treaty, which served as a model to similar conditions, soon afterwards submitted to, unresistingly, by Tunis and Tripoli."

Decatur, with considerate policy, restored to the dey the two captured vessels, and, before proceeding further, determined to dispatch one of the smaller ships to the United States with the news of his success. The Epervier The Epervier was selected, and she departed, but was never seen or heard of, after passing Gibraltar on the 12th of July. Early this month, Decatur left Algiers, and on the 25th, arrived with his

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squadron in the Bay of Tunis. Having learned that two American prizes, during the late war, had been taken out of that port, and carried off by a British cruiser, in despite of neutral rights and treaty stipulations, and that other injuries to the United States had been allowed, Decatur demanded and procured instant satisfaction for the insults, and full restoration of the property. On the 5th of August, Decatur arrived at Tripoli, the pacha of which had permitted two American vessels to be taken under the guns of his castle, and had refused protection to an American cruiser within his jurisdiction. For these wrongs, in like manner, full compensation was demanded and given, and

the chivalrous Decatur had the additional satisfaction at both these places, of being able to effect the liberation of Neapolitan and Danish subjects doomed to hopeless servitude.

Commodore Bainbridge, in the Independence, seventy-four, and with other ships, arrived not long after Decatur's prompt and decisive measures had taken effect; and finding that every thing required by the honor and the interest of the United States had been accomplished, he left part of his force to winter in the Mediterranean, and in October, returned home, where he found Decatur, who had arrived at New York on the 12th of November.

The first session of the fourteenth Congress was begun at Washington, on the 4th of December. The federalists had gained strength in the Senate, but the administration party was active and efficient in carrying forward the plans and purposes of Mr. Madison and his supporters. In the House, the democratic majority was a little increased, and amounted to fifty-two over the federalists; but the absence of any inducement to organize an opposition, owing to the return of peace, was of greater advantage than the numerical strength of the party. Gaillard was once more elected president of the Senate, pro tempore; and Henry Clay, by eightyseven votes against thirty-two, divided amongst four candidates, was placed, for the third time, in the speaker's chair.

The president's message spoke first of the war which had broken out anew with the Algerines; of the treaty of Ghent and the convention on the sub

CH. 1.]

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FINANCIAL STATE OF AFFAIRS.

299

ject of commerce which appropriately and "the probable operation of a nafollowed it; and of the wars and trea- tional bank" was mentioned as one exties with the Indians. It next pedient to be considered. requested "legislative aid" in "the execution of the act for fixing the military peace establishment;" and thence passed to the satisfactory "revival of the public credit;" although, it must be confessed, the financial statement was sufficiently disheartening.

During the first nine months of the current year, $12,500,000 were received at the treasury from all branches of the revenue; $14,000,000 of treasury notes were issued; and a loan of $9,000,000 (six in cash, and three in treasury paper) was subscribed. In addition to all which, there were $1,500,000 in the treasury to begin with. There had been paid in the same period, "exclusively of the amount of treasury notes subscribed to the loan, and of the amount redeemed in the payment of duties and taxes," $33,500,000; so that there were $3,000,000 in hand. It was also estimated, that "existing ways and means" would sufficiently provide for certain arrearages, interest on the debt, and other expenditures needful before the end of the year. The amount of the debt, consisting of the unredeemed balance of the former debt, $39,000,000, the funded debt arising from the recent war, $64,000,000, and the unfunded and floating debt, $17,000,000,-might be set down as $120,000,000; which might perhaps be a little increased; but the foating part of which was in process of payment. This would, as the president suggested, point out the chief subject for the deliberation of the session;

The national defences, the militia, and the navy, were spoken of as requiring the attention of Congress. And "reciprocity" and "protection" were urged as the principles which ought to determine the legislation regarding the tariff. Internal improvement and a national university were also recommended; and the goodness and mercy of God's providence were properly, and in a Christian-like manner, urged upon the notice of Congress and the country at large.

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The financial statement of Mr. Dal. las, the secretary of the treasury, went over the same ground as the president's message, but more fully and distinctly; recommending definite measures, where the message had only indicated topics for consideration. Especially it counselled the reduction of the direct tax by one half, and the retention of the duty on stamps, and of that on refined sugars; whilst other taxes were marked for abolition or for reduction. Above all, it proposed the establishment of a national bank.

The able financier, who was at the head of the treasury department, was of opinion, that, whilst inconvenient and unproductive taxes should be repealed, and every impediment removed which might retard the progress of domestic manufactures, a permanent system of internal duties should be set up; and he calculated that an increasing income might be obtained from that source, which at the outset could not be less than some $7,000,000. From im

ports he reckoned upon receiving nearly there will exist a constant demand, $20,000,000 yearly.

Mr. Lowndes, who was chairman of the committee of ways and means, reported strongly in favor of such an arrangement of the revenue system as would provide for the rapid extinction of the public debt. In respect to the sources, the report advised that duties on imports should be principally, but not exclusively, relied on; and that the scale should be regulated so as to discourage no branch of national productiveness, and not to make evasion of payment desirable. Mr. Clay contended, that "in time of peace, we should look to foreign importations as the chief source of revenue; and that in war, when they were cut off, it was time enough to draw deeply on our internal resources." Mr. Calhoun was of opinion, that "the financial resources of the nation would daily become weaker and weaker, instead of growing with its growth, if we did not resort to other objects than our foreign commerce for taxation." The result of the discussion was, the adoption substantially of Mr. Dallas's plan of a moderately productive tariff.

In regard to the proposed national bank, we cannot do better than quote the passage referring to that subject in the secretary's report. "The establishment of a national bank," said Mr. Dallas, "is regarded as the best, and perhaps the only adequate resource, to relieve the country and the government from the present embarrassment. Authorized to issue notes which will be received in all payments to the United States, the circulation of its issues will be co-extensive with the Union; and

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leaving a just proportion to the annual amount of the duties and taxes to be collected, independent of the general circulation for commercial and social purposes. A national bank will, therefore, possess the means and the opportunity of supplying a circu lating medium, of equal use and value in every state, and in every district of every state. Established by the authority of the United States; accredited by the government to the whole amount of its notes in circulation; and intrusted, as the depository of the gov ernment, with all the accumulations of the public treasure; the national bank, independently of its immediate capital, will enjoy every recommendation which can merit and secure the confidence of the public. Organized upon principles of responsibility, but of independence, the national bank will be retained within its legitimate sphere of action, without just apprehension from the misconduct of its directors, or from the encroachments of the government. Eminent in its resources, and in its exam ple, the national bank will conciliate and lead the state banks in all that is necessary for the restoration of credit, public and private. And acting upon a compound capital, partly stock and partly of gold and silver, the national bank will be the ready instrument to enhance the value of the public securities, and to restore the currency of the national coin."

The proposition of Mr. Dallas was referred to a committee on the currency, of which Mr. Calhoun was chairman; and soon afterwards, early in January.

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