t the opponents of the American system of finances,
who constituted rather a minority of the present congress, but who
indulged sanguine hopes of becoming the majority in the next, were
desirous of referring every question relating to the treasury
department to the succeeding legislature, in which there would be a
more full representation of the people. Whatever might be the
operating motives for delay, neither the extension of the law imposing
a duty on spirits distilled within the United States to the territory
north-west of the river Ohio, nor the plan for redeeming the public
debt, which was earnestly pressed by the administration, could be
carried through the present congress. Those who claimed the favour and
confidence of the people as a just reward for their general attachment
to liberty, and especially for their watchfulness to prevent every
augmentation of debt, were found in opposition to a system for its
diminution, which was urged by men who were incessantly charged with
entertaining designs for its excessive accumulation, in order to
render it the corrupt instrument of executive influence. It might be
expected that the public attention would be attracted to such a
circumstance. But when party passions are highly inflamed, reason
itself submits to their control, and becomes the instrument of their
will. The assertion that the existing revenues, if not prodigally or
corruptly wasted, were sufficient for the objects contemplated by the
President in his speech, would constitute an ample apology for the
impediments thrown in the way of a system which could not be directly
disapproved, and would justify a continuance of the charge that the
supporters of the fiscal system were friends to the augmentation of
the public debt.

Soon after the motion for the reduction of the military establishment
was disposed of, another subject was introduced, which effectually
postponed, for the present session, every measure connected with the
finances of the nation.

An act of congress, which passed on the fourth of August, 1790,
authorized the President to cause to be borrowed any sum not exceeding
twelve millions of dollars, to be applied in payment of the foreign
debt of the United States.

A subsequent act, which passed on the 12th of the same month,
authorized another loan not exceeding two millions, to be applied, in
aid of the sinking fund, towards the extinguishment of the domestic
debt.

A power to make these loans