sented the Administration to come. That the secretary leaned toward war was notorious, and that he was Madison's chief adviser, perhaps to be the head of his Cabinet, was known or suspected by the men who stood nearest to the Secretary of State, and who studied Gallatin's Report as though it were Madison's first Annual Message. The more carefully it was studied, the more distinctly it took the character of a War Budget.
Receipts from customs had stopped, but the accrued revenue of 1807 had brought nearly eighteen million dollars into the Treasury; and sixteen millions would remain to supply the wants of Government at the close of the year 1808. Of this sum the ordinary annual appropriations would consume thirteen millions. Starting from this point, Gallatin discussed the financial effect of the alternatives which lay before Congress. The first was that of total or partial submission to the belligerents; "and as, in pursuing that humble path, means of defence will become unnecessary,—as there will be no occasion for either an army or a navy,—it is believed that there would be no difficulty in reducing the public expenditures to a rate corresponding with the fragments of impost which might still be collected." The second choice of measures was to continue the embargo without war; and in this case the government might be supported for two years with no greater effort than that of borrowing five million dollars. Finally, Congress might declare war against one or both of the bellige-
