109. In the following year, a treaty was concluded between Holland and the United States; and after long protracted negotiations, a treaty of peace was signed September 23, 1783, by which Great Britain acknowledged the independence of the United States of America.

110. Honorably as the war resulted to the Americans, it was attended with great sacrifices. Without arms or pecuniary resources, congress was obliged to have recourse to a paper medium. During the first five years of the war, three hundred millions of dollars, in bills of credit, had been emitted; and no provisions were made for redeeming them, the states neglecting, or but partially complying with, the requisitions of congress. In 1780, these bills had depreciated to such a degree as to cease to circulate; the treasury was empty, the army unpaid, without clothing, and sometimes without food.

111. At this critical period, the French government made a grant of six millions of livres by way of subsidy, and a further sum by way of loan; and afterwards a loan of ten millions of livres was obtained from Holland. The whole amount of loans and grants made to the United States by France and Holland, was forty three millions of livres, or nearly ten millions of dollars. These supplies, with a new organization of the finance department, and the establishment of a national bank, at a later period, contributed to relieve the pressure. When peace took place, the public debt amounted to $42,000,000, on which congress was unable to pay even the interest. The requisitions and regulations of that body were but little regarded by the states, and the country was fast approaching a state of anarchy.

112. A change in the government now became necessary as the only means likely to preserve the union; and, in 1787, a convention was held in the city of Philadel

the treaty of peace with Great Britain signed? 110. What embarrassment did the country endure during, and for a short time after, he war? 11. How was pecuniary relief obtained? 112. What ccurred in 1787? When did the constitution take effect.

phia, to form a new and more perfect union; when the present constitution was adopted. It was subsequently ratified by the people of the several states, and went into effect in 1789.

PART THIRD.

OF THE GOVERNMENT OF THE UNITED STATES.

CHAPTER I.

Of the Nature and Objects of the Union.

113. As has been before observed, the confederation which was adopted by congress, in 1777, was a league or treaty of alliance between sovereign and independent states. Although it was declared to be a firm league of friendship, yet its binding force depended on the good faith of each of the states, each party being the sole interpreter of the meaning of the contract, and the sole judge of its obligations; so that, in case of a violation of the contract by either of the parties, the ultimate remedy would have been a resort to the law of force, which is admitted by the law of nations to be the only final arbiter between sovereign states. The people were not citizens of the United States, but of their respective states; and they owed obedience to their respective state governments only.

114. Under the confederation, the union was merely a federal, not a national, union; and the government was familiarly denominated, the federal government. The

113. What was the nature of the confederation? 114. What was the character of the government? What is the meaning of

word federal is derived from the Latin word fœdus, signifying a league or covenant. This government was destitute of executive and judicial powers, which are no less necessary in giving to a government a national character, than in forming an efficient government. It consisted only of a legislative power, the power of enacting laws: it wanted an executive power to execute the laws, and a judicial power to judge of, to expound, and to apply them.

115. Congress had no power of raising a revenue or of collecting taxes. Congress had the power of making treaties, but not the power of fulfilling them-that rested with the several states. Congress had the power of declaring war, but had not the means of maintaining a war. It had the power merely to ascertain the sum required for the public service, and to apportion it according to a prescribed rule among the several states, with a request that they should raise, and pay over to the general treasury, the amount of their respective quotas; but as an independent sovereign, each might choose or refuse, and sometimes did refuse, to comply with the requisition. Congress was authorized to borrow money, and to emit bills of credit, but had not the command of funds to pay the one, or to redeem the other. Nothing but the pressure of war, and the patriotic zeal of the citizens in a common cause, in which so much was at stake, could keep the country united.

116. When peace was restored, the imperfections of this system of government were fully developed. It was these imperfections, and the evils resulting from them, that led to the formation and adoption of a new and more effective system of national government, the nature and powers of which are briefly expressed in the preamble:

"We, the people of these United States"-words conveying the idea of nationality-" in order to form a more perfect union”—intimating the former to have been but a

federal? 115. Of what necessary powers was congress destitute? 116. What are the nature and objects of the union, under the

partial and imperfect union-"to establish justice, insure domestic tranquillity, provide for the common defence, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity"-objects to which the confederation had proved incompetent-" do ordain and establish this constitution for the United States of America."

117. But, although there can be little difference of opinion as to the objects of the constitution, the nature of this instrument is very differently interpreted by different individuals. It has been held to be, (1.) a contract between sovereign and independent states, to establish and maintain a government for the common good of the states; (2) a contract between each state and all the other states, for the same purpose; each state reserving to itself the right of judging of the meaning of the contract, and whether it has been kept or broken; (3.) a contract between each citizen and all other citizens of the United States, to establish and maintain a government for the good of the whole, with limited and defined powers; providing that all powers not expressly given, nor necessarily flowing from those which are so given, are reserved to the states or to the people; and that the authority of interpreting the meaning of the contract, or of expounding the powers of the government, instead of belonging to the states, resides in the government itself.

118. Without presuming to decide which of these opinions is correct, it may be proper to state, that, in this latter sense, the constitution is understood by the supreme court of the United States, which, in the last resort, is to expound the constitution, and the laws made under its authority. It is argued in favor of this opinion, that in adopting the constitution, the people of the several states, by their representatives in the state conventions, acted separately for themselves, not in the character of that sovereignty which they had entrusted to their respective state governments. And as the constitution was ratified

present constitution? 117. What different opinions prevail as to the nature of the union? 118. What authority and what reasons