for the destruction of the piratical establishment at Barrataria. One hundred thousand dollars were given to Commodore Decatur and crew, for the capture of the Algerine frigate, in consequence of her being given up to the dey.

Claims for property destroyed in service. The claims of officers and soldiers, and persons connected with the army, for private property lost or destroyed in public service, were so numerous and complicated, that it was impossible that congress should attend to them individually; they therefore referred them to a commissioner of claims, with instructions to allow all those where private property had been used in public service, and was lost without the negligence or fault of the proprietor.

Claims for vessels destroyed in harbors. Another class of applicants, were those whose vessels had been burned in the harbors, or whose houses or other property had been destroyed, when not occupied and employed in public service. These claims were uniformly negatived.

Claims of disbanded officers. The claims of the disbanded officers for a gratuitous allowance, beyond their pay and emoluments while in service, from their number and amount, as well as the precedent which such a measure would establish, required the serious consideration of congress. They were supported by the president's recommendation in his opening message. It was urged in behalf of the officers, that they had left lucrative civil employments, and exposed themselves to danger and suffering, in defence of their country's rights; that their property had suffered, and in many instances been lost in consequence of their absence; that after three years service in the army, it was difficult immediately to resume the functions of civil life, and find employment adapted to their various talents; that sound policy required a liberal provision for disbanded officers, that when on any future emergency the country might require military service, it might avail itself ofthe best talents. Objections to their claims. Against their claims it was urged, that the genius of the American government was pacific, and opposed to the mainteance of a pensioned band of officers, ready to plunge the country into future wars, to gratify their ambition; that it was desirable that this class of citizens should return to the pursuits of civil life, with no marks of distinction from their fellow-citizens; that the greater proportion of the officers now seeking a gratuity, are young men, who had not previously to the war been engaged in regular business, and had made no impor

tant sacrifices to the public interest; that they had no reasonable grounds to expect that their services would be required for a long period, or to consider the profession of arms as an establishment for life; that a pension or a bounty at the close of the war, would encourage idleness, and create in the recipients an invidious distinction between them and their fellow-citizens; that their pay and emoluments while in service, were a liberal compensation for the duties performed; that the numerous applications for appointments at the commencement and during the continuance of the war, and the anxiety universally manifested at its close to be retained in service, afforded the most convincing evidence that the country never would suffer from a reluctance in officers to engage in military service. The charms of command, the various attractions of military life, and the expectations of finding opportunities of acquiring glory in the field, always afford such inducements as will command the best talents. The genius of monarchal governments leads them to bestow highsounding titles and liberal pensions on such of their subjects as have distinguished themselves in the field or the cabinet, that they might draw around their thrones a powerful aristocracy for their support. On the other hand, the principles of republicanism forbid the creation of privileged or pensioned orders. They require that the public functionaries should be liberally rewarded for the service rendered, and when that is no longer required, that they should return to private life, and mingle with ther fellow-citizens without any invidious badges of distinction. Considerations of this nature prevailed, and the proposition to make a gratuitous allowance to the disbanded officers was negatived.

In addition to these various classes of claims, were others not reduceable to any particular head, each depending on its individual merit.

Compensation law. While congress were deliberating upon the various claims which pressed upon the treasury from every quarter, they by no means lost sight of what they deemed due to themselves as a legislative body. As the supreme national representation, the business of fixing their own compensation devolved upon themselves. The constitution, as a matter of necessity, provided, that the senators and representatives should receive a compensation for their services to be ascertained by law, and paid out of the treasury of the United States.

In pursuance of this provision, the first congress under the constitution passed a law allowing to each member of either house six dollars per day for wages, and the like sum for every twenty miles travel to and from their respective residences and the seat of government. Their object was to establish such a rate as would command the best talents, and at the same time not so high as to encourage bribery and corruption at the elections. That congress considered the subject of legislation to be of such a nature, that it could not with propriety be farmed out for a given sum by the year. At the first organization of the government, at the commencement of a war, or in other troublesome and difficult times, the public interest migh require congress to be in session the greater part of the time. After the government had been some time in operation, its course distinctly marked out, the system of finances arranged, and in times of peace and internal tranquillity, the objects of legislation were comparatively few. An annual session of three or four months would probably be sufficient for all legitimate and beneficial objects, and the members might return to their usual occupations without further interruption. In the American system the whole subject of municipal law, the most difficult and perplexed part of legislation is confided to the state authorities, and the general government has little else to occupy itself about, but the maintenance of its foreign relations; and the collection and disbursement of the revenue. Little, therefore, did any of the predecessors of the fourteenth congress think of constituting themselves permanent officers with an annual salary. novel was the idea, and so much at variance with every accustomed principle, that it never was before adopted by any legislative body. Different modes and rates of living, and the different value of money at different times, ought to vary the rate of compensation; still a per diem allowance can be the only proper mode. What was an adequate compensation in 1789, might be very insufficient in 1815. Circumstances required an increase of the sum at the latter period, to render it equal in value to the former. A bill was introduced, entitled "an act to change the mode of compensation to the members of the senate and house of representatives, and delegates from the territories," which granted to each member an annual salary of fifteen hundred dollars; to the speaker of the house of representatives three thousand, and the like sum to that member of the senate who in the absence of the vice-president should be called to pre

So

side in their deliberations. This bill passed through its various stages, and became a law with much less debate than is usual for bills of this importance. Its advocates contended, that many of the members were professional men, whose absence from their business during the winter occasioned the loss of almost their whole support, in consequence of which many men of talents were obliged to resign their seats, or decline an election; that the increased rate of living required an addition to their wages; that the proposed sum would not greatly exceed in value the average amount of compensat on for ten years past; that changing the mode would probably prevent much unnecessary and prolix debate, and shorten the session of congress to the advancement of the public interest. These and other considerations prevailed; and the bill passed the senate, ayes 22, noes 11, and the house of representatives, ayes 81, noes 67.

Public opinion. There was another party who took an interest in this bill, whose feelings were not easily quieted. The sovereign people expressed their disapprobation of the measure in unequivocal terms. The legislature of Rhode Island resolved almost unanimously, "that while they disclaim all interference in the ordinary proceedings of the federal government, within the sphere of their constitutional powers, cannot avoid expressing the strong dissatisfaction which they feel, and which they believe is universally felt, at the late act of congress, appropriating high salaries to themselves out of the public moneys collected into the treasury by a course of burthensome taxes, and which the people were led to believe, and had a right to expect, would be applied to the discharge of the public debt." Similar sentiments, expressed in a great variety of forms by other state legislatures, grand juries, and other meetings of the citizens, together with the result of the elections to the 15th congress, clearly indicated the public sentiment on this measure. In a widely extended country, containing a population of every variety of character, manners, and opinions, it is very rare that any measure of government should be so universally obnoxious, as not to meet with some support: aside from the small circle of legislators who passed this act, it found no advocates in the nation.

State of the currency. One of the most important and difficult subjects which came under the consideration of congress, was the situation of the national currency. The little specie remaining in the country at the close of the

war, had found its way to England and the East Indies, in return for their imports, and the currency now consisted almost entirely of the paper of banks chartered by the state authorities, over which the general government had no control, and which had suspended specie payments. These corporations are formed upon principles somewhat different from institutions of the same name in Europe. A number of persons associate together, and subscribe a capital stock varying from fifty thousand to several millions of dollars, according to their location, and the extent of the contemplated business. On this capital they make loans, by discounting bills and notes on time. Their advances are usually made in notes of the bank, payable at their banking house on demand. These being generally for small sums, pass from hand to hand, and form the circulating medium of the country. The bank is also a place of deposit of money for safe keeping. Their charters usually limit the amount of bills allowed to be issued, or debts contracted, to fifty per cent. beyond their capital and deposits. Every bank conducted upon correct principles, has as many debts due, as it owes, with an accumulation of interest, and a capital stock of money paid in to the amount of two thirds of its outstanding debts, to meet the demands to which it is subject; and with a moderate share of discretion in its managers, can seldom be embarrassed, and never insolvent. While bank bills are what they purport to be, the representative of specie, and convertible into money at the pleasure of the holder, they furnish to all desirable purposes a convenient specie medium; and may be considered an important improvement in the commerce of society, rendering exchanges much more rapid and easy, and dispensing with a tedious and laborious process in the interchange of property. The facility too with which loans are made by the banks, to be repaid by easy instalments, greatly promotes the business and enterprise of the country. The first institution of this nature was the bank of North America, established at Philadelphia on the suggestion of Robert Morris, near the close of the revolutionary war. The public and private benefits resulting from this institution were soon perceived, and the example followed by the principal cities in the union. The banking system continually increased, and extended to all parts of the country; so that at the commencement of the war of 1812, there were several hundred institutions of this character in the United States. Soon after that period, specie being out of the