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capitalists would consider five years interest at eight per centum, as a premium fully equal to what can be otherwise obtained without risque, especially accompanied with the resulting security, of having the capital returned at the end of that time, or continued on loan, at the highest rate of interest.

The permanent revenues which can be pledged, are of unquestionable solidity, and may be computed till the end of 1800, at three millions of dollars, and afterwards, at two millions of dollars per annum.

I have to request that you would freely communicate your sentiments of this plan, or any other which may occur to your mind as being more eligible, and ascertain, without making the affair too public, whether I may rely upon a combined effort to support the credit of such a loan, as, after a consideration of circumstances, it shall be determined to propose. Though I have suggested a proposition for consideration, yet, you will consider the whole subject open for discussion, both in respect to the general principle, and the subordinate details.

During the months of November and December, Washington, with Hamilton and Pinckney, were at the seat of government, concerting the arrangements for raising and organizing men, and these were, in this winter, carried into effect. It may not be improper to mention, that the talents of Gen. Hamilton, as exhibited at this period, and his bold, and comprehensive views of military affairs, justified the preference of Washington; and were considered as equalling those he had displayed while directing the finances of the country.

There is one fact worth recording, which illustrates the spirit of the self-styled "republican" party. The BLACK COCKADE, handed down to our day as a badge of infamy and disgrace, was the one designated by Washington, to mark the troops levied for the defence of the country against foreign invasion, and servile war. Every exertion was indeed used by these patriots, to bring odium upon the army. It was asserted by the Jacobin press, that the design of all these warlike preparations was the suppression or intimidation of their party. A kind of journal, entitled the "Cannibal's Progress," was published to chronicle offences alleged against the troops; and the fact is known, that when the new regiments were officered,

endeavors were made by the anti-federalists, to obtain commissions for the purpose of creating disaffection among the soldiers.a The wearing of the tri-colored

cockade in the streets of our cities, was a common oc

currence.

a Vide Washington to James McHenry, Sparks, XI. p. 316.

CHAPTER III.

FIFTH CONGRESS-SECOND SESSION.

FROM THE PRESIDENT.

QUINCY, Oct. 10, 1798.

Sir,

It is time to consider whether it will be prudent for Congress to meet in Philadelphia, and also what communications and recommendations will be necessary in the address to both Houses. I request you to turn your thoughts upon these subjects, and write me your opinions as early as may be. I have the honour to be, sir, your most obedient,

JOHN ADAMS.

TO THE PRESIDENT.

November, 1798.

The Secretary of the Treasury, in obedience to the command of the President of the United States, respectfully submits the following observations.

It is conceived that it will be natural, and very proper for the President, in the beginning of his address, to advert to the deplorable situation to which several of our principal cities have been reduced by contagious, or epidemic sickness, during the last season; and when it is considered that similar diseases have successively appeared in different places—that the loss of thousands of lives, the sacrifice of time and property, and the stagnation of public and private business, are evils of immense magnitude, which deeply affect the national interests, it may be proper to invite the legislature to examine the expediency of establishing suitable regulations in aid of those provided by the respective States for investigating the causes, arresting the progress, or mitigating the effects of like calamities in future.

It will probably be asserted by some, that Congress have no constitutional power to legislate on a subject of this kind; but it is presumed that all objections of this nature may be refuted; and while the health-laws of the respective States proceed upon the supposition that contagious sickness may be communicated by the channels of commercial intercourse, there seems to be a necessity that Congress

who alone can regulate trade, should frame a system which, while it may tend to secure the general health, may be compatible with the interests of commerce, and the safety of the revenue.

The state of our foreign relations, particularly with France, being a subject of the first importance, will of course constitute a principal topic of the address.

It is believed that France has no sincere disposition, and it is questioned whether she possesses the ability, to maintain any engagements upon which the United States can rely with confidence and tranquillity; though there appears to be an unwillingness to open rupture, yet there exist no symptoms of a desire for real peace; the system of self-aggrandizement at the expense of every nation within her power, without regard to the principles of justice, or the most solemn engagements, still continues to be enforced; it may therefore be presumed, that her treatment of us will be governed, not by present professions, but by the views which she may from time to time, take of her own interests; we can only perceive in her last acts, either a vindication of ancient controversies, or shameless pretexts for the gratification of unbounded ambition. Common prudence, therefore, requires of us, to see in the pacific overtures of such a nation, nothing more than an insidious design to foster divisions in our country, and unnerve the vigour of our councils, and measures of defence. The conditions, views, and policy of the United States, are, in every respect, opposite to those of France; we have no national ambition which cannot be best gratified by being left to develope the resources which we possess. The great object of the United States, is therefore, to obtain a secure peace with all nations. Having been injured by France, having sought reparation without success, and having no confidence in the equity of her government, a system has been adopted, of which the following are the principles :

1st. To arm internally, and otherwise provide against invasion. 2nd. To desist from all commercial or political intercourse.

3rd. To defend our commerce by force, and destroy the means of annoyance employed by France.

The situation of the United States in respect to France, may be considered as anomalous. We cannot strictly be said to be either at peace, or in a state of war. We are as much at peace as is safe, or indeed possible, considering the diversity of the views and characters of the American and French people. We have not formally declared war, because we do not wish to conquer any of the dominions of France, and because she possesses no commerce or property upon which we can make reprisals.

This situation is attended with advantages and disadvantages, which require consideration.

The advantages are, that by abstaining from any and every degree of hostility, not required by some present and immediate interest, public opinion is consulted, and its favours secured; responsibility for misfortunes is diminished; odium is accumulated upon France, not only in America, but through the world; and thus, the energy of her power and influence are diminished.

The disadvantages of our situation are, that until war is declared, there will be constantly some danger that the intrigues of France will be successful in pro15

VOL. II.

ducing a revolution of public opinion, which may compel a premature and dangerous accommodation, upon which no reliance can be placed; that her measures will continue to be justified, or at least palliated, while those of the government will be misrepresented and censured; that our system of defence will be exposed to be weakened by proposals for delusive negotiations; and generally, that by continuing in a state which cannot be defined as being either peace or war, the government will be deprived of those rights and powers, both with respect to the domestic partisans of France, and neutral nations, which would result from an open and avowed state of hostility.

There is, moreover, another circumstance, which must be deemed an advantage or disadvantage incident to our situation, according to the opinion which may be formed, respecting the expediency or inexpediency of an alliance with Great Britain. Of the practicability of forming such an alliance there can be little doubt, and to attain this object, a declared state of war with France is necessary, or, at least, would be a resulting consequence. The expediency of such an alliance is, however, diminished by the recent reduction of the French marine and by the prospect of other disasters, which threaten the power and influence of that nation in Europe, and which of course lessen her ability to invade the United States.

The result of the foregoing reflections is, that a declaration of war, considering the state of public opinion and other circumstances, is inexpedient and ought not to be recommended; that it is the true policy of the government to retain its present position, to invigorate the system of defence, to baffle skill by skill, to pre-occupy the ground which France has attempted to take, and which, being seized by her, would serve as the rallying point of opposition to the government. As France continues to annoy us, and at the same time to profess friendly sentiments and intentions, we ought to continue our resistance, offering at the same time, in a dignified manner, to put the sincerity of her declarations to the test. By avoiding all inconsistency and preserving the confidence which has been gained, by choosing the situation in which to receive an attack, or from which to repel intrigues, and by compelling France either to desist from her present plan, or in the pursuit to make reparation for the wounded honour of the United States, and, moreover, by a firm confidence in the moral sense of the American people, it is believed that all difficulties may be surmounted. If the principles before mentioned shall be approved, the following is deemed a proper style for this part of the address:

The course of the transactions between the United States and France, which have come to my knowledge during your recess, will be seen in a communication which by my direction will be laid before you from the Department of State. This will confirm to you the ultimate failure of the measures which were taken by this government towards an amicable adjustment of differences. You will at the same time perceive that the French government now appears solicitous to impress the opinion that it is averse from rupture with this country, and that it has, in a qualified manner, declared itself willing to receive a new minister from us for restoring a good understanding.

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