e United States to
the permitted places, or by acquiescing in the capture of vessels
stepping beyond the prescribed bounds. Or the nation must oppose force
to the execution of the orders of England; and this, however done, and
by whatever name called, will be war." He recalled to them his advice of
the preceding years in a vein of tempered bitterness: "Had the duties
been doubled on January 1, 1808, as was then suggested, in case of war
the receipts into the Treasury during that and the ensuing year would
have been increased nine or ten millions of dollars." He then proposed
to continue the Mediterranean Fund and to double all existing duties on
importations after January 1, 1809. He informed them that no internal
taxes, either direct or indirect, were contemplated by him even in the
case of hostilities against the two belligerent powers; France having
responded to the Orders in Council by Napoleon's Milan decree, December
17, 1807, which was quite as offensive to the United States as that of
Canning. With true statesmanship Mr. Gallatin nerved the country to
extraordinary exertion by reminding it that the geographical situation
of the United States and their history since the Revolution removed
every apprehension of frequent wars.

During the year 1809 the country drifted along apparently without rudder
or compass, helmsman or course, and the treasury locker was being
rapidly reduced to remainder biscuit. Mr. Madison was inaugurated in
March. In his first message, May 23, 1809, he exposed the financial
situation with an indecision which was as marked a trait of his
character as optimism was of that of Jefferson. In his message of
November 29, 1809, he said "the sums which had been previously
accumulated in the Treasury, together with the receipts during the year
ending on September 30 last, and amounting to more than nine millions of
dollars, have enabled us to fulfill all our engagements and defray the
current expenses of government without recurring to any loan; but the
insecurity of our commerce and the consequent demands of the public
revenue will probably produce a deficiency in the receipts of the
ensuing year." Beyond this Madison did not venture; Gallatin was left
alone.

The Treasury report of December 8, 1809, announced the beginning of
short rations. The expenses of government, exclusively of the payments
on account of the principal of the debt, had exceeded the actual
receipts into the Treasury by a sum o