of confederation, gives expression to the following enlightened and mature reflections:

"Had peace been made before any agreement for a permanent union was formed, it is far from being improbable that the different parts might have fallen asunder, and a dismemberment have taken place. If the confederation really preserved the idea of union, until the good sense of the nation adopted a more efficient system, this service alone entitles that instrument to the respectful recollection of the American people, and its framers to their gratitude."1

The urgent necessity of some independent source of revenue, at the command of Congress, to enable them to provide for a faithful fulfilment of the national engagements, led, at an early period, to an application to the States to vest in Congress a power to levy, for the use of the United States, a duty of five per cent. on foreign merchandise imported into any of the States. A resolution to that effect was passed by Congress on the 3d day of February, 1781; and it was declared, at the same time, that "the moneys arising from the proposed duty were to be appropriated to the discharge of the principal and interest of the debts already contracted, or which may be contracted, on the faith of the United States for supporting the present war, and that the duty be continued until the said debts shall be fully and finally discharged.""

1 Judge Marshall, in Life of Washington, vol. I. pp. 429, 430. 2 Journals of Congress, vol. III. p. 573.

VIRGINIA REPEALS IMPOST ACT.

311

Mr. Madison, in his correspondence with his friends in Virginia, exerted all his influence to induce the State to comply with this application of Congress. The legislature, in its hurried and agitated session at Staunton in the month of June, did not overlook this call upon its patriotism and national spirit. An act was passed granting, in the fullest manner, the power asked by Congress, with authority also to appoint collectors in the Commonwealth to demand and receive the duty. At the ensuing session in the autumn, however, it appearing that many of the States had failed to comply with the application of Congress, a new act was passed, suspending the operation of the former one until the governor should issue his proclamation announcing that the different States have passed similar laws.2

This proceeding of the legislature brought great annoyance and mortification to Mr. Madison, who recognized so fully the vital importance of a system of adequate and independent revenue under the control of the Union. His sentiments on the occasion were freely and strongly expressed in a letter of the 22d of January, 1782, to Mr. Edmund Randolph, now one of his colleagues in Congress, but temporarily absent on a visit to Richmond. We insert here the

1 See particularly his letter of the 29th of May, 1781, to Judge Pendleton, in Madison Debates and Correspondence, vol. I. pp. 94-96. 2 See Hen. Stat. vol. x. p. 451. Also idem, pp. 409, 410.

whole letter, not merely as a fit introduction to the leading part he was soon to take in pressing this great measure on the attention of Congress and the nation, but as announcing a fruitful principle, whose consequences reached farther and deeper than any measure of present policy.

"The repeal of the impost act by Virginia," he said, "is still considered as covered with some degree of mystery. Colonel Bland's representations do not remove the veil. Indeed, he seems as much astonished at it, and as unable to penetrate it, as any of us. Many have surmised that the enmity of Dr. Lee against Morris is at the bottom of it. But had that been the case, it can scarcely be supposed that the repeal would have passed so quietly. By this time, I presume you will be able to furnish me with its true history, and I ask the favor of you to do it. Virginia could never have cut off this source of public relief at a more unlucky crisis than when she is protesting her inability to comply with the continental requisitions. She will, I hope, be yet made sensible of the impropriety of the step she has taken, and make amends by a more liberal grant.

"Congress cannot abandon the plan, as long as there is a spark of hope. Nay, other plans on a like principle must be added. Justice, gratitude, our reputation abroad, and our tranquillity at home, require provision for a debt of not less than fifty millions of dollars, and I presume that

EXPOSTULATION OF MR. MADISON.

313

this provision will not be adequately met by separate acts of the States. If there are not revenue laws, which operate at the same time through all the States, and are exempt from the control of each, the mutual jealousies, which begin already to appear among them, will assuredly defraud both our foreign and domestic creditors of their just claims.

"The deputies of the army are still here, urging the objects of their mission. Congress are thoroughly impressed with the justice of them, and are disposed to do everything which depends on them. But what can a Virginia delegate say to them, whose constituents declare that they are unable to make the necessary contributions, and unwilling to establish funds for obtaining them elsewhere?"

We shall hereafter have occasion to show the bold and manly line of statesmanship which Mr. Madison pursued on this subject. For the present, having recounted the measures adopted by Congress for the prosecution of the war, it becomes necessary to consider what had been done by them to fix the terms and conditions of peace, should negotiations be renewed for that object.

CHAPTER XI.

Proceedings of Congress for settling Conditions of Peace - Instruetions agreed upon and Minister appointed in 1779, with Reference to Negotiations under Mediation of Spain - That Mediation proves abortive Spain becomes a Party to the War, and Empress of Russia and Emperor of Austria offer their Mediation in 1781 New Instructions given, and additional Ministers appointed — Motives and Policy of Instructions in submitting American Ministers to Counsels of France- Statement of Mr. Madison England, persisting in treating United States as Subjects in a State of Rebellion, declines Preliminaries of mediating Powers France accedes in first Instance, but, apprised of Ground taken by England, declares Inutility of proceeding till that Ground is abandoned - Debates in British Parliament upon receiving News of Surrender of Army at Yorktown Resignation of Lord North and Dissolution of his Ministry - Administration of Lord Rockingham make vague Overtures for Peace through Sir Guy Carleton in America, and secret Agents at Paris - Mr. Madison's Views of those Overtures-Renewed Attempt to separate United States and France, indignantly repelled by both - Division in English Cabinet Death of Lord Rockingham - New Administration under Lord Shelburne disclose Views adverse to Recognition of American Independence — Firm Declaration of Congress-Responsive Resolutions of Legislature of Virginia - Spirit of the Times as manifested in their Proceedings against Arthur Lee, Delegate in Congress, suspected of Disaffection to French Alliance.