shadow of a mighty name; that it was seen only as a decayed monument of the past, incapable of any enduring record; that the steps of its decline were numbered and finished; and that it was now pausing before that common sepulchre of the dead, whose inscription is nulla vestigia re

trorsum."

In enumerating the errors of the confederation, we have neglected (and it may be proper here) to observe that there was no power in the congress to regulate foreign or domestic commerce. The absence of any national provisions on the subject was a source of great embarrassment in the commercial intercourse of the several states, and operated disadvantageously on their foreign trade. An effort was made by the state of Virginia to remedy this defect in a proposition for a convention of delegates for that purpose. The proposal was responded to by several of the other states, and five of them sent delegates to a convention held at Annapolis in September, 1786. This assembly, though deeply sensible that the national government was lamentably defective, did not feel themselves competent to undertake any alteration of its provisions. Yet they concurred in a suggestion to congress for a general convention, which should take into consideration the condition of the general government, and make such provisions or alterations as might render it adequate to the exigencies of the Union. Encouraged by this application, (on the 27th of February, 1787,) congress ventured to pass a resolution recommending a convention of delegates from all the states to be holden at Philadelphia, "for the purpose of revising the articles of confederation, and reporting to congress and the several legislatures such alterations and provisions therein, as shall, when agreed to in congress and confirmed by the states, render the Federal constitution adequate to the emergencies of government, and the preservation of the Union."

This was a highly important, a critical era in our governmental history. The peculiar circumstances of our situation impressed on the minds of all the serious and reflecting, the lovers of liberty and of the human race, the necessity of a more perfect and permanent union between the states. And although some of them regarded it as an unimportant matter, and met this proposal with violent opposition, they could not feel that it was even with them an indifferent alternative. It was a choice between political existence and political death-whether they should be lost in anarchy and confusion, or live as free, sovereign, and independent communities. It was necessary to their preservation not only from the accumulated resentment of the foe they had just subdued, but also from the strife of rivalry, the animosities and jealousies which might spring up among themselves. Where or how could they promise themselves safety or continuance as separated sovereignties? Who could assure them that the lion, robbed of her whelps and driven from her den, would not return, and with redoubled fury, upon them? What security was there that one might not fall under the domination of a neighboring province, the larger states crush the smaller, and a scene of strife, dissension, and bloodshed overspread the land? These were momentous considerations. They involved not only the peace and prosperity of the states, but the more vital interests of the whole American people. The question was one full of awful and thrilling importance. Should they reap for themselves, and transmit to posterity the invaluable benefits of a revolution, the achievement of which had filled the whole civilized world with amazement, or

lose them all by an inglorious hostility towards each other? The crisis they were approaching demonstrated to them the wisdom of the recommendation made by the congress, and a convention of delegates from all the states was appointed " to assemble at Philadelphia in May"-(1787.)

The delegates, except from Rhode Island, assembled to this convention at the time and place appointed; and although they were strongly impressed with the necessity and importance of a union of feeling, of interest, and of affection between the several states, they contended with no ordinary difficulties in the way of securing so desirable a result. Theirs was indeed no ordinary undertaking. The history of the world had presented no similar scene. Before them they beheld a great and growing people. In the vista of the future they saw a still greater and more extended nation. For these they were to provide, for these they were to legislate. For these they were called upon, in circumstances of solemn responsibility, to frame a fabric of government. It must meet the difficulties and embarrassments of the present, and provide for the wants and the changes of the future. In the allotment and distribution of powers, they must calculate with a nice discrimination their practical operation. They must foresee the occasion and the necessity for limitations and restrictions. They must be careful not to give too much; they must be equally cautious lest they confer too little.

We cannot forbear pausing one moment to look in upon that grave assembly. They seem to feel as if the destinies of the world were intrusted to their care. On every brow, in every countenance, is legibly traced the solemnity, the wisdom, the purity, the deep discernment, and far-seeing political sagacity, of men whose minds are swayed by purer, nobler, prouder, worthier purposes than ever hallowed the council chambers of Greece or of Rome. We admire the schemes which held together those early republics. We venerate the sages and the heroes of Athens, of Sparta, and of Rome; but we admire still more our own political fabric. We venerate with a holier enthusiasm the sages, the heroes, and the patriots, of our own native land; and we religiously believe that the eye of the Omniscient never rested with as intense an interest on any other assembly of men gathered for merely political purposes.

On the seventeenth of June, (1787,) after mature and tranquil deliberation, they reported to congress a draft of the present constitution, at the same time recommending that it should be submitted to a convention of delegates in each state, chosen by and from among the people thereof, for ratification. For several months it underwent a critical examination. Its several articles were carefully canvassed by all the members of the Union, and the whole people of America were made familiar with its provisions. Their judgment upon it was that it was adequate to the exigencies of the nation, and was well adapted to secure, through all time, to all coming generations, the blessings of civil and religious liberty. Having received the sanction of the requisite number of the states, a government was duly organized and put in operation under it on the fourth of March, (1789.) In June, 1790, it had received the ratification of all of the states by their respective conventions.

Thus have we endeavored to trace the governmental history of our country, from the earliest settlement made on its shores, down to the time of adopting the present constitution. The task has been to us an interesting and instructive, rather than a laborious one; and we can only hope

that it may be equally so with those who may deem it worthy a perusal. Of that constitution it is not our purpose now to speak. It is before us. We see and feel the benefits of its benign operation. For more than fifty years have these United States and this great people been fostered under its provisions. Their prosperity, happiness, and tranquillity are the proudest comment on its adaptation to their necessities and relations. Its peace-producing influences are radiating over the world, illustrating to admiring millions the happy tendencies of republican institutions in ameliorating the condition of mankind. Liberty enshrines it in her temple as the most cherished monument of her triumphs, while she exultingly invites the oppressed and suffering of every kindred, and tongue, and people, and nation, to rest under its protection. ESTO PERPETUA.

ART. IV. ORIGIN AND NATURE OF FIRE INSURANCE.

CHAPTER I.

Origin of Insurance-its utility-considered as a wager.

MANY old writers have endeavored to discover to whom belonged the honor of inventing insurance, yet none have ever traced it successfully; the principle upon which it is founded is common to other branches of business, and was early applied to this. Some have imputed the discovery to the Roman emperor Claudius Cæsar; others to the Rhodians; and Mons. Savary, in his Dictionnaire de Commerce, to the Jews, in the year 1182. It seems, however, to have been introduced into England many ages since, together with its "twin-brother, exchanges," by some Italians from Lombardy; this opinion gains probability from the fact that it was long the custom to insert this clause into English policies, "this writing or policy of assurance shall be of as much force and effect as any writing heretofore made in Lombard street," &c.; "the place where these Italians are known to have taken up their residence, and carried on their trade." (Park on Insurance.)

Marine insurance is of greater antiquity than that of fire; the great utility of the former seems to have suggested the practice of the latter business. It appears that the first underwriters were individuals doing business on their own account, and not in a corporate capacity; and consequently, many frauds were practised upon the insured by irresponsible persons, who received large sums as premiums, by representing themselves to be possessed of means sufficient to discharge any claims upon them for losses which might arise. This evil grew to such a magnitude, that the legislature interfered to protect a business which thay saw was intimately connected with the welfare of the country, in respect to the extension of its commerce. Accordingly, in an act incorporating the first insurance companies in England, passed in the year 1720, in the reign of George I., the preamble sets forth at length the above reasons. companies incorporated by this act were the Royal Exchange Assurance, and the London Assurance, with perpetual succession, subject to redemp. tion, or power of revocation, for the insurance of ships, goods, and mer. chandises, at sea, or going to sea, and for lending money on bottomry.

The

Since this time companies have multiplied in numbers and variety, so that insurance can not only be effected on ships and merchandise, but upon almost every variety of interest, and upon lives.

The utility of this description of business is now abundantly confirmed. "To enter upon a detail of the various advantages which mankind have derived from this species of contract, would be a waste of time; because they are obvious to every understanding;" the great help which it affords to individuals who conduct business on their own account, by dividing the loss in case of a fire, or shipwreck, among many persons, is sufficiently demonstrated by experience. The benefit rendered by it to commerce was well understood, even in early times, as may be seen by the following extract from a preamble to an act of parliament, passed in the 43d year of the reign of Queen Elizabeth. "By means of which policies of assurance, it cometh to pass, upon the loss or perishing of any ship, there followeth not the undoing of any man, but the loss lighteth rather easily upon many, than heavy upon few, and rather upon them that adventure not, than upon those that do adventure; whereby all merchants, especially those of the younger sort, are allowed to adventure more willingly and more freely." The benefit marine insurance renders to trade and commerce, by protecting the merchant when his property is on the water, will, with equal force, apply to fire insurance upon the land. "It gives also greater security to the fortunes of private people, and by dividing among many that loss which would ruin an individual, makes it fall light and easy upon the whole society." (Park on Insurance.)

Insurance, in its early history, is known to have become a prevalent and pernicious mode of gaming; this arose from persons effecting insurance upon property in which they had no interest; but this was soon prevented by statute, 14 Geo. III. c. 18, which provides, that no insurance shall be made on lives, or on any other event, wherein the party insured hath no interest; that in all policies the name of such interested party shall be inserted; and nothing more shall be recovered thereon than the amount of the interest of the insured. This does not, however, extend to marine insurances, which were provided for by a prior law of their own. (Black. Com., book II., 460.) No insurance against fire upon property in which the insured has no interest, can be effected in this country; the custom being to insure A against loss or damage on his property; if he never owned it, or disposes of his interest previous to a loss or damage, he clearly cannot recover, for he cannot be said to have sustained an injury.

Every objection to this branch of business is therefore removed; neither can any possibly urge a valid reason against it simply because the contract partakes of the character of a wager. Insurance is, in reality, nothing more than a wager, for the underwriter who insures at one per cent, receives one dollar to return one hundred upon the contingency of a certain event; and it is precisely the same in its operation as if he had bet a wager of ninety-nine dollars to one that the property does not burn, or that a certain event does not happen. (Notes on Black. Com., II., 459.) But, in a moral point of view, it should be considered entirely different. The character of an act is determined by its spirit, intention, and consequences. An individual that insures a bona fide interest, does it with a different intention than he who obtains a policy upon property in which he has no interest; for the latter hopes to make a gain, the former to protect himself from loss; and in the event of a fire, one gains in propor

tion to the amount insured and the extent of the fire, the other is saved from loss in the same proportion.

CHAPTER II.

Insurance companies considered as corporations-the advantages of incorporation, with the powers, rights, capacities, and incapacities incident thereto their general privileges and disabilities—the different kinds of fire companies, as they exist in New York City, and the general enactments in their creation and regulation.

Most if not all companies for fire insurance are now incorporated by the legislature; for it has been found necessary and advantageous to the public, as well as to the individuals composing such company or association, to secure a kind of legal immortality, in order to preserve entire and forever those rights and immunities, which, if they were granted to individuals in their individual capacity, would upon their death be utterly lost and extinct; as well as several other important incidents which are tacitly annexed to a corporation, of course. We shall therefore, in order the better to understand the nature of insurance companies considered as corporations, proceed to show what is the nature of corporations in general. Blackstone's Com., book I, chap. 18, gives the following as the powers, rights, capacities and incapacities, which are incident to a corporation : 1st, To have perpetual succession, (or a definite time determined by the legislature.) This is the very end of its incorporation; for there cannot be a succession forever without an incorporation, and therefore all aggregate corporations (or those composed of a number of individuals united into one society) have a power, necessarily implied, of electing members in the room of such as go off. 2d, To sue or be sued, implead or be impleaded, grant or receive, by its corporate name, and do all other acts as natural persons may. 3d, To purchase lands and hold them, for the benefit of themselves or their successors, (corporations in the state of New York are not allowed to hold land, except such as is necessary for the transaction of their business,) which, too, are consequential to the former. 4th, To have a common scal; for a corporation, being an invisible body, cannot manifest its intentions by any personal act or oral discourse; it acts and speaks, therefore, only by its common seal. For though the particular members may express their private consents to any act by words, or by signing their names, yet this does not bind the corporation; it is by fixing of the seal, and that only, which unites the different assents of the individuals who compose the community, and make one joint assent of the whole.* 5th, To make by-laws or private statutes, for the better government of the corporation, which are binding upon themselves, unless contrary to the laws of the land, and then they are void. This is also included by law in the very act of incorporation; for as a natural reason is given to the natural body for the governing it, so by-laws or statutes are a sort of political reason to govern the body politic.

There are also certain privileges and disabilities attending an aggre

There is an exception to this in the case of policies of insurance, for it is generally declared by the charter that "the signatures of the president and secretary shall be binding and obligatory upon the company, in like manner and with like force as if under the seal of the said corporation."