by a constant and tenacious application of that surplus to the payment of the principal. It is what was done from 1801 to 1812, and from 1816 to 1834. I have been much used to "sic vos non vobis," but had not supposed that my agency in promoting and carrying into effect those measures to which near eighteen years of my life were almost exclusively devoted (1795-1812) could ever be a matter of doubt.

The fundamental substantial measure which I proposed, and was adopted by Congress, was a permanent annual appropriation of $7,300,000 a year, for the principal and interest of the debt, to continue until the whole of the principal was paid off. This proposition is not contained in my report of 1802, but in my first annual report to Congress of 1801. No other alteration has, to my knowledge, been made to the plan of redemption accordingly adopted at that time by Congress, but an increase of the sum thus annually appropriated, viz., from 7,300,000 to 8,000,000 in the year 1804, in consequence of the additional debt incurred by the purchase of Louisiana, and from eight to ten millions of dollars in the year 1816, in consequence of the great additional debt incurred during the last war. The surplus of revenue beyond the expenditure, including in this the abovementioned annual appropriation of 7,300,000 to 10,000,000 of dollars, was also always appropriated to the same object, from Mr. Hamilton's time to that of the final extinction of the debt. From 1791 to 1801 there had been no such surplus, and, on the contrary, the debt had been increased, notwithstanding his sinking fund. During the war, the income being far below the expenditure, the debt was necessarily increased, notwithstanding the annual appropriation. The redemption took place without any other alteration, to my knowledge, in the plan of 1801 but the increase above stated during the two periods 1801-1812 and 1816-1834.

As I was not in the United States when Mr. Lowndes's bill was passed, it may be that some law was enacted which has escaped my notice and which did something more than to get rid of a useless apparatus and to simplify the accounts rendered to Congress. I think it improbable; but I will thank you to give me the date and title of the Act passed at his suggestion which

has been alluded to, and also, if possible, a copy of the report on which it was founded. Be good enough to give me also the date and title of my report of 1802 to which you have alluded. When I have this information I will furnish you, as soon as possible, with a correct statement or view of the whole subject. I had rather that you would in the mean while abstain from publishing that report of mine of the year 1802 to which you have alluded.

GALLATIN TO JOHN J. ASTOR.

NEW YORK, 5th August, 1835. DEAR SIR,-In compliance with your request, I will state such facts as I recollect touching the subjects mentioned in your letter of 28th ult. I may be mistaken respecting dates and details, and will only relate general facts which I well remember.

In conformity with the treaty of 1794 with Great Britain, the citizens and subjects of each country were permitted to trade with the Indians residing in the territories of the other party. The reciprocity was altogether nominal. Since the conquest of Canada the British had inherited from the French the whole fur-trade, through the great Lakes and their communications, with all the Western Indians, whether residing in the British dominions or the United States. They kept the important Western posts on those Lakes till about the year 1797. And the defensive Indian war which the United States had to sustain from 1776 till 1795 had still more alienated the Indians and secured to the British their exclusive trade, carried through the Lakes, wherever the Indians in that quarter lived. No American could, without imminent danger of property and life, carry on that trade, even within the United States, by the way of either Michilimackinac or St. Mary's. And, independent of the loss of commerce, Great Britain was enabled to preserve a most dangerous influence over our own Indians.

It was under those circumstances that you communicated to our government the prospect you had to be able, and your intention, to purchase one-half of the interest of the Canadian Fur

Company, engaged in trade by the way of Michilimackinac with our own Indians. You wished to know whether the plan met with the approbation of government, and how far you could rely on its protection and encouragement. This overture was received with great satisfaction by the Administration, and Mr. Jefferson, then President, wrote you to that effect. I was also directed, as Secretary of the Treasury, to write to you an official letter to the same purpose. On investigating the subject, it was found that the Executive had no authority to give you any direct aid; and I believe that you received nothing more than an entire approbation of your plan, and general assurances of the protection due to every citizen engaged in lawful and useful pursuits.

You did effect the contemplated purchase, but in what year I do not recollect. Immediately before the war, you represented that a large quantity of merchandise intended for the Indian trade, and including arms and munitions of war, belonging to that concern of which you owned one-half, was deposited at a post on Lake Huron, within the British dominions; that, in order to prevent their ultimately falling into the hands of Indians who might prove hostile, you were desirous to try to have them conveyed into the United States, but that you were prevented by the then existing law of non-intercourse with the British dominions.

The Executive could not annul the provisions of that law. But I was directed to instruct the collectors on the Lakes, in case you or your agents should voluntarily bring in and deliver to them any part of the goods above mentioned, to receive and keep them in their guard, and not to commence prosecutions until further instructions; the intention being then to apply to Congress for an Act remitting the forfeiture and penalties. I wrote accordingly by duplicate to that effect to the collectors of Detroit and Michilimackinac. The letters were sent, one copy by a War Department express going to General Hull's army, then on its march to Detroit, and the duplicates given to you to be forwarded as you might think proper.

I was informed, either by the collector of Detroit or by yourself, and, as I believe, by both, that Michilimackinac was taken

by the Indians before the letter directed to the collector had reached him, and that either the attempt was made too late or that your agents had failed in carrying it into effect.

Previous to that time, but I also forget the year, you had undertaken to carry on a trade on your own account, though, I believe, under the New York charter of the American Fur Company, with the Indians west of the Rocky Mountains. This project was also communicated to government, and met of course with its full approbation and best wishes for your success. You carried it on on the most extensive scale, sending several ships to the mouth of the Columbia River, and a large party by land across the mountains, and finally founding the establishment of Astoria.

This, unfortunately, fell into the hands of the enemy during the war, from circumstances with which I am but imperfectly acquainted, being then absent on a foreign mission. I returned in September, 1815, and sailed again on a mission to France, in June, 1816. During that period I visited Washington twice, in October or November, 1815, and in March, 1816. On one of those two occasions, and I believe on the last, you mentioned to me that you were disposed once more to renew the attempt and to re-establish Astoria, provided you had the-protection of the American flag; for which purpose a lieutenant's command would be sufficient to you. You requested me to mention this to the President, which I did. Mr. Madison said he would consider the subject, and, although he did not commit himself, I thought that he received the proposal favorably. The message was verbal, and I do not know whether the application was ever renewed in a more formal manner. I sailed soon after for Europe, and was seven years absent. I never had the pleasure, since 1816, to see Mr. Madison, and never heard again anything concerning the subject in question. I remain, dear sir, very respectfully, your obedient servant.

GALLATIN TO THOMAS L. THRUSTON.

NEW YORK, 14th May, 1836. DEAR SIR,-Yours of 26th ult. has been received. I have no recollection of the transaction in reference to which Mr. Goddard petitions Congress. But the supposition that I ever was in favor of any trade carried on under the protection of an enemy's license is altogether erroneous. Without pretending to judge for others, I always considered the practice as improper and contrary to the public interest. I never expressed any other opinion; and I may add that Mr. Madison, who had made the practice o England and France towards each other in that respect a subject of official and strong complaint, was extremely anxious that it should be discountenanced and suppressed by the United States. Whether it was illegal before the Act of Congress it is not for me to say. So far as relates to the Treasury, either the parties did not think it worth while to apply for a remission, or, if they applied, the application was unsuccessful.

The measure which, as tending to increase the revenue, I did favor was a modification of the Non-Intercourse Act, so far as to permit, under certain restrictions and exceptions, the importation of British goods, as appears by my answer to the Committee of Ways and Means, of 10th June, 1812, published at the time in the newspapers; and it may be that it was this which gave rise to the report of the opinion erroneously ascribed to me on the subject of licenses. That proposition was rejected by Congress, and no other Treasury circulars were issued but for the purpose of directing that the existing laws should be enforced.

GALLATIN TO DANIEL JACKSON.

NEW YORK, 23d August, 1836.

DEAR SIR,-You are aware that General Armstrong has asserted, in his notices of the last war, that the letters which conveyed with so much celerity the news of the declaration of war