e Ohio.

Congress reassembled, according to adjournment, on the first Monday in
December, at Philadelphia, which was now, for a time, the seat of
government.

Congress, at its opening, was chiefly occupied in financial
arrangements, intended to establish the public credit and provide for
the expenses of government. According to the statement of the
Secretary of the Treasury, an additional annual revenue of eight
hundred and twenty-six thousand dollars would be required, principally
to meet the additional charges arising from the assumption of the
State debts. He proposed to raise it by an increase of the impost on
foreign distilled spirits, and a tax by way of excise on spirits
distilled at home. An Impost and Excise bill was accordingly
introduced into Congress, and met with violent opposition. An attempt
was made to strike out the excise, but failed, and the whole bill was
finally carried through the House.

Mr. Hamilton, in his former Treasury report, had recommended the
establishment of a National Bank; he now, in a special report, urged
the policy of the measure. A bill, introduced in conformity with his
views, was passed in the Senate, but vehemently opposed in the House;
partly on considerations of policy, but chiefly on the ground of
constitutionality. On one side it was denied that the constitution had
given to Congress the power of incorporation; on the other side it was
insisted that such power was incident to the power vested in Congress
for raising money.

The question was argued at length, and with great ardor, and after
passing the House of Representatives by a majority of nineteen votes,
came before the executive for his approval. Washington was fully alive
to the magnitude of the question and the interest felt in it by the
opposing parties. The cabinet was divided on it. Jefferson and
Randolph denied its constitutionality; Hamilton and Knox maintained
it. Washington required of each minister the reasons of his opinion in
writing; and, after maturely weighing them, gave his sanction to the
act, and the bill was carried into effect.

The objection of Jefferson to a bank was not merely on constitutional
grounds. In his subsequent writings he avows himself opposed to banks,
as introducing a paper instead of a cash system--raising up a moneyed
aristocracy, and abandoning the public to the discretion of avarice
and swindlers. Paper money might have some advantages, but its abuses
were inevitable, and b