defeat, and sometimes they have gained signal victories.

The landmarks which have been left in a century of discussion and
of legislative experiment deserve a brief reference for a better
understanding of the subject to-day. Our financial experience has
been practically as extended as that of the older nations of Europe.
When the Republic was organized, Political Economy as understood
in the modern sense was in its elementary stage, and indeed could
hardly be called a science. Systems of taxation were everywhere
crude and ruthless, and were in large degree fashioned after the
Oriental practice of mulcting the man who will pay the most and
resist the least. Adam Smith had published his "Enquiry into the
Nature and Causes of the Wealth of Nations" in the year of the
Declaration of Independence. Between that time and the formation
of the Federal Government his views had exerted no perceptible
influence on the financial system of England. British industries
were protected by the most stringent enactments of Parliament, and
England was the determined enemy not only of free trade but of fair
trade. The emancipated Colonies found therefore in the mother
country the most resolute foe to their manufacturing and commercial
progress. American statesmen exhibited wisdom, moderation, and
foresight in overcoming the obstacles to the material prosperity
of the new Republic.

When the administration of Washington was organized in 1789, the
government which he represented did not command a single dollar of
revenue. They inherited a mountain of debt from the Revolutionary
struggle, they had no credit, and the only representative of value
which they controlled was the vast body of public land in the North-
west Territory. But this was unavailable as a resource for present
needs, and called for expenditure in the extensive surveys which
were a prerequisite to sale and settlement. In addition therefore
to every other form of poverty, the new government was burdened in
the manner so expressively described as _land poor_, which implies
the ownership of a large extent of real estate constantly calling
for heavy outlay, and yielding no revenue. The Federal Government
had one crying need, one imperative demand,--money!

An immediate system of taxation was therefore required, and the
newly organized Congress lost no time in proceeding to the
consideration of ways and means. As soon as a quorum of each branch
of Congress was foun