y provision was made for the payment of the vast debt.

[Illustration: ALEXANDER HAMILTON.

(1757-1804).]

Hamilton's plan was to fund the entire debt and issue new certificates.
It was vehemently opposed, especially the provision that the State debts
should be assumed by the general government; but solely by his wonderful
ability he carried the measure through Congress. The debate sharpened
the lines between the Federalists and Anti-Federalists or Republicans.

It will be remembered that at that time neither North Carolina nor Rhode
Island had adopted the Constitution. The former called a convention,
and, on the 13th of November, 1789, ratified it, but Rhode Island
continued to sulk until Providence and Newport withdrew from the State,
and Massachusetts and Connecticut made ready to parcel the State between
them. This frightened her, and, on May 29, 1790, she joined her
sisters.

The following year Hamilton gave another proof of his power by carrying
through Congress, in the face of the strongest opposition, a measure for
the relief of the financial straits of the government. The only banks in
the country were one each in Philadelphia, New York, and Boston, all of
which were State institutions. He advocated the establishment of a bank
in which the government should be one-fifth owner of the capital stock
of $10,000,000 and a preferred borrower to the same amount. It was to be
under private management. In the face of the strong opposition, the act
creating it was passed, and it was chartered for twenty years. The
subscriptions required that one-fourth should be paid in specie and the
rest in six per cent. certificates of the bank. Within two hours after
the subscription books were opened the entire amount of stock was
subscribed. The United States Bank was destined to play an important
part in national affairs in after years.

PASSAGE OF A TARIFF BILL.

Having provided the means for funding the debt and for borrowing money,
it yet remained to find some way of earning the money. The method was so
apparent that Congress lost no time in passing a tariff bill. A law
placed a duty on imported and domestic spirits, and, in February, 1792,
a protective tariff bill was enacted. This provided that the materials
from which goods are manufactured should not be taxed, while articles
competing with those made in this country were prohibited. A mint was
also established in Philadelphia for coining money.

THE FEDERAL JUD