THE FIRST SESSION OF THE FIRST CONGRESS.

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War; Thomas Jefferson, Secretary for Foreign Affairs CHAP. John Jay, Chief Justice of the United States, and Edmund Randolph, Attorney-General.

The first session of Congress, a laborious one of six months, was spent in organizing the government. It shows the spirit of the times, that before they adjourned Congress passed a resolution, requesting the President to recommend a "day of public thanksgiving and prayer, in acknowledgment of the many signal favors of Almighty God, and especially his affording the people an opportunity peaceably to establish a constitution of government for their safety and happiness."

1789.

In January, the second session of the First Congress 1790. commenced. The President, instead of sending a written message, as is now the custom, made to both Houses, assembled in the Senate chamber, an address. He directed their attention to the public defence; to the encouragement of agriculture, manufactures, commerce, and literature; to the enactment of naturalization laws, and especially to the payment of the national debt. These various heads of business were referred to committees. During this session the official intercourse between the heads of departments and the Houses of Congress took the form of written communications.

Hamilton made his celebrated financial report, in which he recommended certain measures for obtaining revenue to defray the current expenses of the Government and pay off the national debt. This debt was in the form of certificates or notes of obligation to pay for value received. During the war they had been issued by the States as well as by Congress, to persons who furnished supplies to the army, and for other services. Congress assumed these debts, and also the foreign debt. The expenses of two distinct governments-the Federal and that of the separate States were to be borne. The revenue could be derived only from taxes on property.

As the control of commerce

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CHAP had been transferred to Congress by the States, it was fitting that the revenue derived from the tax or duty levied 1790. on imported merchandise should be appropriated to the support of the Federal Government, while that arising from real estate and other sources, should be assigned to the use of the States. Hamilton proposed, and the gov ernment adopted the system of indirect taxation by raising revenue from the duties thus imposed; and to meet a certain deficiency at the time, an excise, or tax on the manufacture of domestic spirits.

Near the close of this session, Congress, after much discussion, passed a bill to locate the seat of the General Government on the banks of the Potomac, and authorized the President to select the spot within certain limits, and to make arrangements for the erection of suitable buildings. Until these should be ready for occupation, its sessions were to be held in Philadelphia, at which place, acDec. cordingly, the second Congress began its first session.

6.

The President congratulated the members on the increasing prosperity of the country, and the unexpected success in obtaining revenue. On the recommendation of Hamilton, Congress gave a charter for twenty years for a National Bank, with the privilege to establish branches in any of the States. The capital of the Bank was ten mil lions, of which the government took two millions, and individuals the remainder. The Bank was as beneficial to the government as it was to the commercial interests of the country. Its bills were payable in gold or silver when presented at its counters. This feature had a decided effect; it raised the credit of the General Government, and inspired confidence in the commercial world. The first census, just taken, showed the population of the States to be almost four millions.

By assuming the debts contracted by the States in the defence of their common liberties, Congress had simply performed an act of justice; provision was made to pay