400 THE NEWBURGH LETTERS. [1782. caused great rejoicings; and public thanksgiving was rendered to the God of armies, who had disposed events so mercifully for the country. The proposition for a treaty of peace was received with general satisfaction; and Congress appointed John Adams, Benjamin Franklin, John Jay, and Henry Laurens commissioners to treat on the subject, while Mr. Oswald was appointed by the king of Great Britain. Conferences were held in Paris, and preliminaries were agreed on in November, but were not signed that year, on the ground that it was proper to wait until Great Britain should be at peace with France, the ally of the United States. Congress determined to dismiss on furlough the troops enlisted for the whole war, not thinking it prudent to disband the army until a definitive treaty should be formed. They offered to allow the troops full pay for five years, instead of half pay for life, which had been promised them; and this full pay was to be given to them either in money or in securities at interest, at the choice of the respective state lines. At this period, however, a dark and portentous cloud overhung the country. The people of the United States, perhaps, have never passed a more dangerous crisis. Some officer addressed to the army (which was concentrated at Newburgh, on the Hudson River) some incendiary letters, inveigh. ing against the government for breaking its promises, and exhorting the soldiers not to lay down their arms until they should obtain some more substantial return for their long and arduous services. The danger of revolt and a military despotism was imminent, and this would doubtless have been the consequence with an army in such circumstances in almost any other country, where soldiers are less intelligent, virtuous, and patriotic, especially as the author of the letters was probably an officer of pretty high rank, viz., Colonel Wilkinson. But America had a general such as Europe never yet has been blessed with; and Washington, who was happily on the spot, exerted all his influence, and displayed all his exalted character, in arguing and remonstrating, with the troops as fellow-citizens, fellow-labourers, and fellow-sufferers, urging the noble considerations with a sincerity and eloquence worthy of himself. Such influence had he with the army, that he prevented the display of any insubordination; and the soldiers quietly departed on their various routes for their homes, many of them taking the roads to Connecticut. It was not, however, until the latter part of June that the army was entirely dispersed. In November it was disbanded by proclamation by Congress, as the state of affairs with England was such as to prove that the war was entirely at an end. Perhaps no act in Washington's life has produced a stronger impression than his interference in this case; and the people of Connecticut, perhaps, as deeply as any admired the virtue he displayed, while they appreciated the importance of the results. Their local situation naturally led them to regard the occasion with deep solicitude. Connecticut, lying near the scene of action, would have been exposed to devastation had the army consented to reap with their swords the harvest they had planted. Good men, who love to remember in all things the superintendence of the 402 WASHINGTON'S RESIGNATION. [1781. Creator, saw and must see great reason for gratitude at the turn of affairs at that important crisis, on which the fate of the country seemed to be suspended. On the 8th of June, Washington informed Congress that he was now prepared to resign the command of their armies, which he had received with such diffidence almost seven years before, and had exercised with such a combination of ability, self-denial, and disinterestedness as no other general ever displayed. His spontaneous relinquishment of such authority is worthy of the unqualified approbation of the good, and is likely to have a salutary influence, as an example, as long as history shall be read and virtue esteemed. Washington, on laying aside his power, recommended four objects as in his opinion of primary value to the country: 1st. A federation among the states; 2d. A sacred regard to justice; 3d. The establishment of peace; and, 4th. The exercise of disinterestedness in the gov ernment and the people. CHAPTER XLV. 1781-1806. The Debt of the Country and of Connecticut at the Close of the Revolutionary War.-Mr. Jay's commercial Treaty with Great Britain.-Effects in Connecticut. Various Branches of Industry and Enterprise.-New Settlements.- Revival of the Fisheries.-General Hamilton's Plan for the Encouragement of Manufactures.-Importance of Mr. Whitney's Invention of the Cotton-gin.-Other Inventions.-The commercial Treaty of 1806.-American Commerce with Great Britain. PEACE found the United States with an immense amount of debt, and in a state of deep depression. Bills of credit for three millions were issued by the United Colonies in 1775, and considerable sums by particular colonies. In 1778 the amount was above one hundred millions. In 1776 the colonies were called upon to raise five millions by sums apportioned. Connecticut had $600,000 of this to raise, while Massachusetts had only $820,000, Pennsylvania $620,000, Virginia $800,000, New. Jersey $270,000, North Carolina $250,000, New. Hampshire and New-York $200,000 each, Mary. land $520,000, South Carolina $500,000, Georgia $60,000, and Rhode Island $100,000. Connecticut had the fourth sum in amount. Connecticut, having suffered her full share in the expenses and trials of the war (excepting that none of her territory was ever long in possession of the enemy), had to endure a heavy part of the debt which it left upon the country. By an estimate made by Congress at the close of the war, it ap 404 BRITISH COMMERCIAL REGULATIONS. [1783. peared that it had cost about one hundred and thirty-five millions; and that the debt amounted to forty-two millions, of which eight millions consisted of money due to France and Holland. Congress proposed that $1,500,000 should be paid by the states, each taking its quota, and raising it in any manner it might prefer. A committee was appointed to draw up an address to the people, recommending this plan. It consisted of Messrs. Madison, Hamilton, and Ellsworth of Connecticut. The portion allotted to Connecticut was $132,000, that state being placed seventh on the list. This plan, however, failed; and it was not until 1786 that duties and imposts on foreign goods imported were appropriated to the payment of the national debt, by the consent of all the states. In 1783 Mr. Jay formed a treaty with Great Britain, which allowed, for a term, to American vessels and goods, in England, Ireland, and Scotland, the same freedom enjoyed by those of England. Mr. Pitt endeavoured to get the principle extended to the colonies: but, instead of this, the famous orders in Council were passed, by which American vessels were not allowed to go to the British West Indies, and beef, pork, &c., were not permitted to be taken thither from this country, even in Eng. lish vessels. It was then supposed in England that our government could not long exist, and that impediments to our commerce would the sooner bring back the country to seek the aid and protection of Great Britain. In 1788 Parliament confirmed those orders by its own acts. These measures gave a heavy blow to New-England, as was intended. The carrying-trade was what England was |