In a debate at the beginning of the session, on a bill for establishing trading houses with the Indians, Mr. Gallatin showed his hand by declaring that he would not consent to appropriate any part of the war funds for the scheme; nor, in view of the need of additional permanent funds for the discharge of the public debt, would he vote for the bill at all, unless there was to be a reduction in the expense of the military establishment; and he would not be diverted from his purpose although Mr. Madison advocated the bill because of its extremely benevolent object. The Federal leaders saw clearly to what this doctrine would bring them, and met it in the beginning. The first struggle occurred when the appropriations for the service of 1796 were brought before the House. Beginning with a discussion upon the salaries of the officers of the mint, the debate at once passed to the principle of appropriations. The Federalists insisted that a discussion of the merits of establishments was not in order when the appropriations were under consideration; that the House ought not, by withholding appropriations, to destroy establishments formed by the whole legislature, that is, by the Senate and House; that the House should vote for the appropriations agreeably to the laws already made. This view was sanctioned by practice. Mr. Gallatin immediately opposed this as an alarming and dangerous principle. He insisted that there was a certain discretionary power in the House to appropriate or not to appropriate for any object whatever, whether that object were authorized or not. It was a power vested in the House for the purpose of checking the other branches of government whenever necessary. He claimed that this power was shown in the making of yearly instead of permanent appropriations for the civil list and military establishments, yet when the House desired to strengthen public credit it had rendered the appropriation for those objects permanent and not yearly. It was, therefore, "contradictory to suppose that the House was bound to do a certain act at the same time that they were exercising the discretionary power of voting upon it." The debate determined nothing, but it is of interest as the first declaration in Congress of the supremacy of the House of Representatives.