convince the projectors themselves of the impracticability of their scheme, and to countervail the impressions they had made, by a direct application to the legislature.”

To carry this plan into effect, a general meeting* of the citizens of New-York was convened, at which McDougal presided, and half a million of dollars were subscribed.

The constitution of the Bank of New-York, framed by Hamilton, was adopted, and he was chosen one of its directors, was chairman of the committee to prepare its bylaws, and was occupied in devising a mode for receiving and paying out gold, which had been done elsewhere by weighing in quantities; a practice attended with many evils, and for which, in the absence of a national coinage, it was difficult to find a substitute.†

The abuses of the banking system of this country have rendered it an object of prejudice; but he has thought little of its infant condition, who cannot trace to these institutions the most important public benefits.

Contemporaneously with them may be remarked the introduction of those habits of punctuality, which, by giving stability to domestic, and, as a consequence, to foreign credit, were highly instrumental in raising the character of the nation and advancing its commercial prosperity. And in the same degree in which can be seen the early introduction into the different states of an enlightened system of banking on commercial principles, in the same ratio the relative advances of those states may be traced. A letter from La Fayette of this period invites attention

* February 26, 1784.

The rates for the value of each foreign coin in circulation were fixed by the bank. A person was employed to regulate each piece according to the standard weight; and an allowance or deduction of three per cent. was made on each gold piece, as it exceeded or fell short of that value. To give effect to this arrangement, the chamber of commerce, on the 4th of May, 1784, adopted a regulation fixing a tariff of values

to another subject. After mentioning an intended visit to the Prussian and Austrian armies, he wrote:-"In one of your gazettes, I find an association against the slavery of negroes, which seems to be worded in such a way as to give no offence to the moderate men in the southern states. As I have ever been partial to my brethren of that colour, I wish, if you are in the society, you would move, in your ɔwn name, for my being admitted on the list."

This association, emanating from one previously formed in Philadelphia, was composed of individuals, of whom the most active were members of the society of Friends. At its second meeting Jay was chosen president, and a committee raised, of which Hamilton was chairman, to devise a system for effecting its objects.

Believing that the influence of such an example would be auspicious, he proposed a resolution that every member of the society should manumit his own slaves.

He never owned a slave; but on the contrary, having learned that a domestic whom he had hired was about to be sold by her master, he immediately purchased her freedom.

Others found the theory of humanity lighter than the practice. This resolution was debated and deferred. Disgusted with the pretensions of persons who were unwilling to make so small a sacrifice, he discontinued his attendance at these meetings.

The condition of New-York at this time is summarily shown in a letter from him to a friend. "Discrimination bills, partial taxes, schemes to engross public property in the hands of those who have present power, to banish the real wealth of the state, and substitute paper bubbles, are the only dishes that suit the public palate at this time."

While the sphere of his political usefulness was limited by such counsels, Hamilton kept aloof from party contests with the secondary men, who succeeded to the great acVOL. III-4

tors in the revolution; and aware that a strong necessity could alone change the unhappy tendency of the public mind, he was content to pause, and, as he beautifully observed, "to erect a temple to time, to see what would be the event of the American drama."

CHAPTER XXXIA

THE failure of the imperfect union of the States either "to provide" prospectively "for the common defence," or "to establish justice," has been shown in the preceding narrative. Its utter incompetency "to promote the general welfare," by the protection of the national industry, and of national rights, or "to ensure domestic tranquillity;" thus failing, in every essential particular, "to secure" to the American people "the blessings of liberty," will now be seen.

The policy to be pursued in their intercourse with other nations would, it may be supposed, early engage the attention of a people by position and habit necessarily commercial. Hence it is perceived that before the declaration of independence, Congress had deliberated upon that subject.

The result of these deliberations was such as was to have been expected under their circumstances. It was a resolution to open the ports of the colonies to the world, excepting the inhabitants, productions, and vessels of Great Britain, and East India tea. This purpose of placing each nation on the footing of "natives," it has been seen, was proposed to France, but was relinquished, and that of the "most favored nation" adopted. This was also the basis of the treaties with Sweden and the Netherlands; in the latter of which, provisions were made defining the state of block

ade, and securing to the people of either country "an en tire and perfect liberty of conscience."

But what should be the terms of intercourse with Great Britain, was the most interesting question.

Soon after Oswald had received his commission recognising this country as an independent nation, Jay prepared the plan of a treaty of commerce, which he submitted to him. This plan proposed that it should be on the footing of "natives." The proposition being announced to con. gress by Franklin, was referred.

Instructions were reported,* that "in any commerciai stipulations with Great Britain," the commissioners were "to endeavour to obtain a direct commerce with all parts of the British dominions and possessions, in like manner as all parts of the United States may be opened to a direct commerce of British subjects; or at least, that such direct commerce be extended to all parts of the British dominions and possessions in Europe and the West Indies;" and they were informed, "that this stipulation will be particularly expected by congress," in case the footing of natives was admitted. Their attention was again called to this subject by a letter from Adams, in which, after reminding them of the revocation of his former powers, he urged the appointment of a resident minister at London; and having referred to the injustice which would be done to him who was the first object of his country's choice, should any other be appointed, he indicates to that body the qualifica tionst necessary for an American foreign minister gene

* By Madison.

"In the first place, he should have had an education in classical learn. ing, and in the knowledge of general history, ancient and modern, and par. ticularly the history of France, England, Holland, and America. He should be well versed in the principles of ethics, of the law of nature and nations, of legislation and government, of the civil Roman law, of the laws of Eng. land and the United States, of the public law of Europe, and in the letters,