which the President was
authorized to borrow at five per centum, constituted a sinking fund to
be applied to the reduction of the debt.

The effect of this measure was great and rapid. The public paper
suddenly rose, and was for a short time above par. The immense wealth
which individuals acquired by this unexpected appreciation, could not
be viewed with indifference. Those who participated in its advantages,
regarded the author of a system to which they were so greatly
indebted, with an enthusiasm of attachment to which scarcely any
limits were assigned. To many others, this adventitious collection of
wealth in particular hands, was a subject rather of chagrin than of
pleasure; and the reputation which the success of his plans gave to
the secretary of the treasury, was not contemplated with unconcern. As
if the debt had been created by the existing government, not by a war
which gave liberty and independence to the United States, its being
funded was ascribed by many, not to a sense of justice, and to a
liberal and enlightened policy, but to the desire of bestowing on the
government an artificial strength, by the creation of a monied
interest which would be subservient to its will.

The effects produced by giving the debt a permanent value, justified
the predictions of those whose anticipations had been most favourable.
The sudden increase of monied capital derived from it, invigorated
commerce, and gave a new stimulus to agriculture.

About this time, there was a great and visible improvement in the
circumstances of the people. Although the funding system was certainly
not inoperative in producing this improvement, it can not be justly
ascribed to any single cause. Progressive industry had gradually
repaired the losses sustained by the war; and the influence of the
constitution on habits of thinking and acting, though silent, was
considerable. In depriving the states of the power to impair the
obligation of contracts, or to make any thing but gold and silver a
tender in payment of debts, the conviction was impressed on that
portion of society which had looked to the government for relief from
embarrassment, that personal exertions alone could free them from
difficulties; and an increased degree of industry and economy was the
natural consequence of this opinion.

[Sidenote: Adjournment of congress.]

On the 12th of August, after an arduous session, congress adjourned,
to meet in Philadelphia the first Monday in