%222.  Assumption and Funding.%—­For the redemption of this debt Hamilton prepared two measures,—­the funding, or, as we should say, the bonding, of the foreign and Continental debt, and the assuming and funding of the state debts.  This was done, and Congress ordered stock bearing interest to be issued in exchange for the old debts, and so established our national debt, which in 1790 amounted to $75,000,000.

%223.  The National Capital.%—­Funding the state debts was strongly opposed by many congressmen, and was not carried till a bargain was made by which it was agreed that if enough members from Virginia and Pennsylvania would support the measure to secure its passage through the House of Representatives, the national government should be removed from New York to Philadelphia for ten years, and after that to a city to be built on the Potomac.  This was faithfully carried out, and in the summer of 1790 the government offices were removed to Philadelphia, where they remained till the summer of 1800, when they were removed to Washington in the District of Columbia.

%224.  The Bank of the United States.%—­The troublesome questions of funding and assumption thus disposed of, Congress called on Hamilton for a report on the further support of public credit, and when it met in the session of 1790-91, received a plan for a great National Bank, with a capital of $10,000,000.  The United States was to raise $2,000,000; the rest was to be subscribed for by the people.  The bank was to keep the public revenues, was to aid the government in making payments all over the country.  To do this, power was given to the parent bank (which must be at Philadelphia) to establish branches in the chief cities and towns, and to issue bank bills which should be received all over the United States for public lands, taxes, duties, postage, and in payment of any debt due the government.  Great opposition was made; but the charter was granted for twenty years, and in 1791 the Bank of the United States began business.

The effect of these two measures, funding the debt and establishing a bank, was immediate.  Confidence and credit were restored.  Money that the people had long been hiding away was brought out and invested in all sorts of new enterprises, such as banks, canal companies, manufacturing companies, and turnpike companies.

[Illustration:  The first Bank of the United States]

%225.  “Federalists” and “Republicans."%—­When the Constitution was before the people for acceptance or rejection in 1788, they were divided into two bodies.  Those who wanted a strong and vigorous federal government, who wanted Congress to have plenty of power to regulate trade, pay the debts of the country, and raise revenue, supported the Constitution just as it was and were called “Federalists.”

Others, who wanted the old Articles of Confederation preserved and amended so as to give Congress a revenue and only a little more power, opposed the Constitution and wanted it altered.  To please these “Anti-Federalists,” as they were a large part of the people, Congress, in 1789, drew up twelve amendments to the Constitution and sent them to the states.