resumption of the throne of France, the year 1815 opened with the prospect of another protracted European war. In such an event, the same grounds of controversy would exist, and the same collisions spring up as had induced the war of 1812. The United States, having commenced a war in defence of their rights as neutrals, and having made peace without any satisfaction for their violation, or stipulation for their future observance, would, it was apprehended, be considered as having abandoned them. To prevent such a construction, and obtain, if possible, their recognition, as well as to arrange the subject of commercial intercourse, Messrs. Adams, Clay, and Gallatin, previous to their return from Ghent, were instructed to repair to London, and open a negotiation on these subjects. After considerable delay on the part of the British, and several interviews with the minister, a commission, consisting of Messrs. Adams, and Golburn, two of the Ghent commissioners, and Mr. Robinson, secretary of the board of trade, were designated to treat with the American envoys.

Propositions of the American commissioners. At their first interview, the ministers of the United States being requested to bring forward the subjects on which they wished to negotiate, presented two, which were left unsettled by the treaty of Ghent, viz. commercial intercourse and neutral rights. The first object they stated, embraced the direct trade to the British European dominions, and the trade to their possessions in the East and West Indies, and on the continent of North America. The other, the principles which should regulate the conduct of each nation, when one should be at war and the other at peace. The British commissioners inquired of the American, whether the two subjects were so inseparably connected, that a treaty could not be formed embracing the first, without touching the latter, giving them to understand, that in such an event, further negotiation would be useless, as they were not empowered to treat on the subject of neutral rights. The reply was a consent to treat on commercial subjects only.

The basis upon which the American government have ever been disposed to place their foreign commerce, has been to have the most free and unrestrained interchange of commodities; to suffer any articles which the convenience of their citizens may require, to be imported in the ships of such nation as could afford them cheapest; and their own surplus productions, to be exported in the same manner. They sought to consider the community of merchants

throughout the world as composing one great family, granting to all equal priviliges, and leaving capital, industry, and enterprise, to depend on their own exertions for success. These liberal principles, it is obvious, must be universally adopted, and be reciprocated, or be abandoned. They have been acceded to so far as relates to navigation, by several European powers, in their intercourse with the United States; and treaties, founded on this basis, have been formed with Sweden and Denmark. They are, however, altogether opposed to the British navigation system, the governing principle of which is to suffer no goods to be imported in any ships except their own, or those of the nation of which the imports are the production, and equally opposed to their protecting system, which excludes from their markets any foreign articles which shall interfere with their home industry. The direct intercourse between the United States and Great Britain, consisting principally of an interchange of the raw materials of the one, for the manufactures of the other, was adjusted without difficulty. The British commissioners were disposed to give to it every facility. All discriminating duties on the imports into either nation, whether in the ships of one or the other, were abolished. On the subject of an intercourse with their East India possessions, consisting principally in an exchange of specie for the silk and cotton manufactures of that country, the British were willing to allow the Americans a participation in the trade, provided they brought their goods directly to the United States, not suffering them to be carried to the markets of Europe, without the expense of a double voyage. No arrangement could be made in relation to an intercourse between the United States and the British North American and West India colonies. The lumber, provisions, and live stock of the United States, are articles of the first necessity to the West Indies; while the productions of the sugar cane, their staple, is an article of great consumption in the United States; but since the acquisition of Louisiana, and the extended and increasing cultivation of the cane in that region, their trade is comparatively of little consequence. In relation to the intercourse with the British North American possessions, their productions being the same with the northern sections of the United States, a traffic with them is very readily dispensed with. Still, however, the American commissioners were willing to place the whole on a liberal footing. They were desirous of considering the

whole British empire in a commercial view, as composing one great community, and of opening with it, a liberal, reciprocal, and unrestrained intercourse.

British views. Not so the British; they, steadily adhering to the principle of restraining their colonial trade to themselves, except when a partial and temporary admission of other nations to a participation of it suited their convenience, were willing to sacrifice the essential interests of the West India Islands to a temporary and uncertain benefit of the mother country. The colonial trade has ever since been the subject of legislative contest between the two governments, each trying to out-do the other in embarrassing it, to the great injury of that portion of the British empire.

Result of the negotiation. A temporary convention of four years, grounded upon the foregoing principles, was the result of this protracted and laborious negotiation.

This meagre convention, obtained after much difficulty and delay, in a commercial view, was by no means worth the time and talents spent. in obtaining it; but the negotiation, as it unfolded to the view of the American government the principles upon which the British meant to conduct their commercial and maritime system, was attended with important results. Their refusal to treat on the subject of neutral rights clearly manifested a determination to improve their naval superiority in the European war, then expected to be renewed, to impose on neutral navigation, all the restrictions and embarrassments to which it had heretofore been subjected. Paper blockades, impressments, searches, seizures, and unwarranted condemnations were again to be expected, and the maritime rights of neutral nations were only to be measured by the spirit and ability manifested to support them. This disposition, on the part of the British government, fortunately produced on the American, a determination to pursue a system of naval preparation, adequate to resist the first aggressions on neutral rights. The renewed European war terminated in the battle of Waterloo, on the 17th June, 1815. The spirit of defensive preparation continued in the United States; and produced a navy of heavy ships competent to defend the coast, and of light vessels to assail British commerce; so that in any future contest with that nation, the advantage must be on the side of America.

In a subsequent negotiation on the subject of the colonial trade, the parties differed only on one point. The American government insisted, that the duties imposed on their

lumber and provisions imported into the West Indies, should be no higher than those imposed on similar articles when imported from Nova Scotia, New Brunswick, and the Canadas. The British rejected this proposition on two grounds-one, that the great abundance of these articles in the United States, and the facility with which they could be transported, would destroy a profitable branch of trade between different portions of the empire; the other, that they would not consent to regulate such trade at the suggestion of any foreign power. Soon after the commencement of Mr. Adams' presidency, this point was given up; the British then took other grounds, so that no arrangement could be made; and a state of non-intercourse succeeded.

CHAPTER II.

First meeting of the 14th Congress-Message-Proceedings of Congress-Repeal of the internal duties-Debates on the Tariff-Sectional divisions on the subject of encouraging manufactures-Adjustment of claims resulting from the war-Claims of the Canadian volunteers-Of the crews of public armed ships for enemy's vessels captured and destroyed-Of persons connected with the army for losses of private property-Of the disbanded officers for a gratuitous allowance-Compensation law passed-National currency -Depreciated paper, its effects on the community-Origin and nature of banking institutions-Defects in the American system of banks-Proposition for a national bank-Constitutional objections-A bill for its establishment passed-Its provisions--Debates on the bill relating to the convention with Great Britain-Law passed for the admission of Indiana into the Union-Its provisions-Presidential election for 1817-Preparatory caucus -Proceedings and result of it-View of the origin and effects of the caucus system.

Meeting of congress. ON the fourth of December, the period fixed by the constitution for the first meeting of the fourteenth congress, a quorum of both branches assembled, and the house of representatives organized themselves by the choice of Mr. Clay, speaker. On the 5th, the president sent his message, congratulating them on the successful termination of the Algerine war; a general pacification with the Indian tribes; and the general prosperity of the country on the return of peace.

Message. The measures recommended were, the proper arrangement of the finances, with a view to the receipts and expenditures of a permanent peace establishment:

The adjustment of the impost duties to the objects of revenue, and the encouragement of manufactures:

The establishment of a corps of invalids, with a view to make provision for the aged, infirm, and disabled officers of the late army:

The enlargement of the military academy at West Point, and the establishment of others in different sections of the union:

A classification, and a new organization of the militia : The preservation, and gradual increase of the navy: A provision for the disbanded officers of the late army : The establishment of a uniform national currency; And internal improvements by means of roads and canals. On the latter subject he remarks: "No objects within the