making of the laws for the payment of these securities. Vessels were dis patched from New York, their destination being southern ports, and the object in view, the purchase of obligations of the government at the very lowest rate, before information of the measures proposed in Congress should reach remote points; couriers with relays of horses penetrated to the interior of the country on the same errand; every advantage was taken of the ignorance of holders of bonds and securities. It was in the midst of this speculative mania that the House began discussion of the report. Resolutions were offered embodying the recommendations of the report. The first, affirming the propriety of making adequate provision for fulfilling the engagement of the United States regarding foreign obligations, was passed without debate. The second, declaring that "permanent funds ought to be appropriated for the payment of interest on, and a gradual discharge of, the domestic debt," gave rise to debate, which continued two days.

Recognizing the obligation of the government to pay the bonded debt, both foreign and domestic, Mr. Madison felt the injustice that would be done by paying the full amount to speculators. He therefore proposed in such cases that payment should be equalized between the sufferer and the speculator. In upholding this course in the House he said: "They may appeal to justice, because the value of the money, the service, or the property advanced by them has never been really paid to them. They may appeal to good faith, because the certificates, which were in fact forced upon them by the government, cannot be fairly adjudged an extinguishment of the debt. They may appeal to the motives for establishing public credit, for which justice and faith form the natural foundation. They may appeal to the precedent furnished by the compensation allowed to the army during the late war, for the depreciation of bills, which nominally discharged the debts due to them. They may appeal to humanity; for the sufferings of the military part of the creditors can never be forgotten, while sympathy is an American virtue; to say nothing of the singular hardships, proclaimed by so many mouths, of requiring those who have lost four fifths, or seveneights of their due, to contribute the remainder in favor of those who have gained in the contrary proportion.” Admitting, with fairness, the claims. that might be allowed on behalf of the purchasers of the public securities, he further said: "Such then, being the interfering claims on the public, one of three things must be done : pay both, reject wholly one or the other, or make a composition between them on some principle of equity. To pay both is perhaps beyond the public facilities; and as it would far exceed the value received by the public it will not be expected by the world, nor even by the creditors themselves. To reject wholly the claims of either, is equally inadmissible. Such a sacrifice of those who hold the written engagement of the government would be fatal to the establishment of public credit. To make the other class the sole victims was an idea at which human nature

recoiled. A composition, then, is the only expedient that remains. Let it be a liberal one, in favor of the present holders; let them have the highest price which has prevailed in the market; and let the residue belong to the original sufferers." Referring then to the fluctuations of stocks in Europe as compared with those of the United States in her extremity, he concluded: "It may be objected that such a provision as I propose will exceed the public ability. I do not think the public unable to discharge honorably all its engagements, or that it will be unwilling, if the appropriations shall be satisfactory. I regret as much as any member, the unavoidable weight and duration of the burthens to be imposed,-having never been a proselyte to the doctrine, that public debts are public benefits. I consider them, on the contrary, as evils which ought to be removed as fast as honor and justice will permit, and shall heartily join in the means necessary for that purpose. I conclude with declaring, as my opinion, that if any case were to happen among individuals, bearing an analogy to that of the public here, a court of equity would interpose its redress; or that, if a tribunal existed on earth by which nations could be compelled to do right, the United States would be compelled to do something not dissimilar in its principles to what I have contended for."

Opponents were not wanting to combat the views of Mr. Madison. In answer to him arose Mr. Sedgwick and Mr. Ames, of Massachusetts; Mr. Laurence and Mr. Benson, of New York; Mr. Boudinot, of New Jersey, and Mr. Smith, of South Carolina. With the strength born of numbers they overbore his arguments, and during the week's debate that ensued were strengthened by the outside pressure brought to bear. When the question was put to a vote, his proposition was rejected by a very large majority. Two months later, notwithstanding the result of the vote on this question, Congress was under the necessity of recognizing the right of the principle he enunciated. An appropriation had been made to pay to the North Carolina and Virginia line certain arrearages, which claims had been bought up at prices much below their real value, and assignments obtained by speculators, who took advantage of the ignorance or distresses of the claimants. Proof of these facts being adduced, Congress passed resolutions virtually annulling the assignments, and directing the secretary of the treasury to pay the claims only to the original claimants, or to persons duly authorized by them under a power of attorney, attested by two justices of the peace, authorizing the receipt of a specific sum. These matters have been treated thus fully in order to a better understanding of the principles that governed every action of Mr. Madison in his official life, principles from which he never deviated during his eventful public career, and which are worthy of emulation by the men of this and succeeding generations.

Previous to the adoption of the Constitution no system had been fol lowed in obtaining a census of the several states. It therefore devolved

upon Congress to provide for the periodical enumeration of the inhabitants. The Constitution enjoined such census, as a basis on which to estimate federal representation, and direct taxes. A committee consisting of one member from each state, was appointed and reported a bill for this purpose. Mr. Madison believed that a more comprehensive census would be of great value to law-makers, and he proposed an amendment to the bill, providing for an analytical and classified enumeration, distinguishing by their respective pursuits the different classes of the people, thus enabling legislatures to adapt the public measures to the requirements of different communities. This was an idea twenty years in advance of the most progressive European statesmen, and was adopted by the House. In its mutations in the Senate the provision was afterward dropped, and did not appear upon the statute books until some fifty years later. However, the far-seeing statesmanship of Mr. Madison should have credit for this effort at advancement.

The subject of the assumption of state debts followed soon after action had been taken in support of the public credit, and developed a great amount of discussion, as well as a spirit of determined opposition from members representing states which had made successful efforts to provide for their individual liabilities incurred in the contest for independence. Such were opposed to the payment of debts contracted by neighboring states, after meeting their own obligations. Mr. Madison took strong grounds against assumption, arguing that the state debts were not in their nature debts of the United States. For a time after the delivery of Mr. Madison's speech the subject was dropped. It was again brought forward in the course of the discussion relating to the permanent location of the seat of government. This latter question developed a great amount of feeling, particularly among the southern members, who saw in the effort to locate the capital at New York, or at farthest, on the Susquehanna, an attempt at belittling the interests of Virginia, the Carolinas, and Georgia. In this contest the lines between north and south were for the first time sharply drawn. There seemed no other resort than a compromise, whereby the assumption of the state debts would be granted, and the capital located on the bank of the Potomac after remaining for ten years at Philadelphia. On this basis the question was finally settled.

On December 6, 1790, Congress assembled at Philadelphia, in accordance with the resolutions providing for a temporary and a permanent seat of government. It was opened as before, by a speech from the President. The House of Representatives again appointed a committee, of which Mr. Madison was a member, to prepare an address in answer to the speech. This being done, the attention of the House was called to the necessity for making provision looking to the payment of the state debts assumed at the late session. It seemed probable that resort would be had to excises, to meet the demand that would soon be made. To this Mr. Madison was

opposed, as "giving arbitrary powers to the collector, exposing the citizen to vexatious searches, and opening the door to fraud and perjuries, that tend equally to vitiate the morals of the people, and to defeat the public revenue." He preferred a direct tax to the imposition of excises, but knowing that such would meet with determined opposition from the people, he was with reluct ance constrained to vote for an excise to be imposed on spirituous liquors, which was carried by a vote of thirty-five to twenty.

In the early part of the session the secretary of the treasury had presented his report, in which he urged the incorporation of an United States bank, to be modeled after the similar institution in England. The excises being disposed of, the bank bill was called up, and debate begun by Mr. Madison, who opened with a general review of the advantages of banks. He held that greater advantages would be obtained by the establishment of several banks, but denied that the authority for the establishment of such an one as was proposed could be derived from the Constitution. He then discussed the text of that document, and the conclusions arrived at relating to the powers delegated by each article as it was presented to the convention that framed it, and from these deduced that the ground on which he stood was the only one tenable. In closing his argument he said: "The exercise of the power asserted in the bill involves all the guilt of usurpation; and establishes a precedent of interpretation, leveling all the barriers which limit the power of the general government and protect those of the state governments." He was answered by Messrs. Ames, Sedgwick, and Gerry, of Massachusetts; Laurence, of New York; Boudinot, of New Jersey; Smith, of South Carolina, all of whom "united in the doctrine, that Congress, in the exercise of power, was not restricted to the means necessary and proper for the execution of the powers specifically granted, according to the language of the Constitution; but might do whatsoever it deemed necessary and proper to the ends for which the Constitution was adopted and those powers were conferred," and contended that the eighth section of the first article, relative to the "common defense and general welfare," in connection with the power of taxation, were the sources from which they derived the power to establish a national bank. In reply to them able speeches were made by Mr. Stone, of Maryland; Mr. Giles, of Virginia; and Mr. Jackson, of Georgia. The debate was closed by Mr. Madison, in a vigorous review of the arguments of his opponents, and a strengthening of the ground he had taken by further reference to the binding force of the Constitution. His logical deductions were of no avail, however, the bill being carried in the affirmative by a vote of thirty-nine to twenty, Maryland, Virginia, North Carolina, South Carolina, and Georgia, voting in the negative. Thus the division between the north and the south was strengthened.

Previous to its adjournment, March 3d, 1791, Congress adodtep a reso

ton. The address of the House was but an echo of the sentiments of the speech. During the session of Congress the secretary of the treasury was charged with disobedience of instructions, in employing certain funds in a manner different from that specified in the act of appropriation. The charges being sustained, a resolution of censure was proposed by Mr. Giles, of Virginia, which was vigorously debated by leading members of the House, Mr. Madison making a powerful speech in support of the measure. Such was the composition of the House, however, that on being brought to a vote, the proposition was lost.

Immediately after the close of Congress, in the latter part of March, 1792, Mr. Madison returned to Montpelier, and devoted much of the vacation to his estate, seeking relief for his mind, which had been severely taxed in the consideration of public questions. He abandoned for a time, the political and philosophical articles he had been preparing for publication in Frenau's Gazette, in answer to those of Colonel Hamilton, which were published in the United States Gazette. The condition of the growing crops, particularly of the wheat, which was severely injured by unfavorable weather, attracted his attention, as it had a direct bearing upon his income. He was also experimenting, to some extent, in improved agricultural implements, and wrote, as follows, to Mr. Jefferson, who had invented a very useful and serviceable plow: "Repeat my thanks to Dr. Logan, if you have an opportunity. The patent plough is worth looking at, if you should visit his farm. You will see your theory of a mould-board more nearly realized than in any other instance; and with the advantage of having the iron wing (which, in common bar shares as in great, lies useless under the wood) turned up into the sweep of the board, and relieving it from the brunt of the friction. By fix ing the coulter, which is detached, to the point of the share, it will, I think, be nearly complete. I purpose to have one so constructed. The detached form may answer best in old, clean ground, but will not stand the shocks of our rough and rooty land, especially in the hands of our ploughmen." Mr. Madison's correspondence with Mr. Jefferson contains frequent mention of agricultural matters, in which both were much interested, and to which, in the intervals of public life, they devoted themselves. Progressive farmers they were, as well as progressive statesmen. Whatever promised to be of value early received trial, and if it realized the expectations that had been raised, its merits were made known to the people.

During this season of relief from the tiresome duties of committee work, and labor in the halls of Congress, he made short visits to Colonel James Monroe, and Colonel Wilson Cary Nicholas, being absent ten days. On his return to his father's seat, he found a number of friends who purposed remaining his guests several weeks; he was thus constrained to occupy some time with them, instead of resuming his literary work. He also continued his correspondence with Mr. Jefferson, and earnestly entreated him to

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