t year to check the growth of the country; the revenue continued on a
rising scale, and reached close upon fifteen millions of dollars.

So far Mr. Gallatin had met but inconsiderable obstacles in his course,
and these he used to his advantage to impress economy upon the Army and
Navy Departments, and enforce his principle of minute appropriations
for their government. All that he had already accomplished in the
establishment of a sound financial system and the support of the credit
of the United States was but the basis of a broader structure of
national economy. His extensive scheme of internal improvements was
hardly matured when the thunder broke in the clear sky.

The acquisition of Louisiana, the large carrying trade which had passed
under the American flag, and the rapid prosperity of the financial and
industrial condition of the country aroused the jealousy of Great
Britain, and determined her to check the further progress of the United
States by war, if need be. The capture of the American frigate
Chesapeake by the man-of-war Leopard, June 22, 1807, was only the first
in a series of outrages which rendered the final collision, though long
delayed, inevitable. Mr. Gallatin at once recognized that the Treasury
could no longer be conducted on a peace basis. "Money," he wrote to
Joseph H. Nicholson, "we will want to carry on the war; our revenue will
be cut up; new and internal taxes will be slow and not sufficiently
productive; we must necessarily borrow. This is not pleasing to me, but
it must be done." Congress was called together for October 26, 1807, and
on November 5, Mr. Gallatin sent in his annual report. There was still
hope that Great Britain would make amends for the outrage, and Congress
was certainly peaceably disposed. In the condition of the Treasury
there was no reason as yet for recommending extraordinary measures. The
revenues for the year passed the sum of seventeen millions; the balance
in the Treasury reached eight and one half millions; the surplus on a
peace footing was twelve millions. Mr. Gallatin recommended that the
duties should be doubled in case war were threatened. He said, "Should
the revenue fall below seven millions of dollars, not only the duty on
salt and the Mediterranean duties could be immediately revived, but the
duties on importation generally be considerably increased, perhaps
double, with less inconvenience than would arise from any other mode of
taxation." Experience had