The bill came up in the House for final passage on March 10, 1794. Its opponents now sparred for time, but a motion to recommit in order to give opportunity for further consideration was defeated by 48 to 41. Giles made a final effort, by a long and elaborate address, in which he argued that the effect of fitting out a navy would be to involve the United States in war with all the European Powers. Moreover, a navy would be dangerous to American liberty. "A navy is the most expensive of all means of defense, and the tyranny of governments consists in the expensiveness of their machinery." He pointed to the results of British naval policy. "The government is not yet destroyed, but the people are oppressed, liberty is banished." The French monarchy had been ruined by its navy. He was "astonished, with these fatal examples before our eyes, that there should be gentlemen who would wish to enter upon this fashionable system of politics." In discussing the expense of maintaining a navy, he expressed his fear that it would eventually bring back the miseries of feudalism.
William Smith of South Carolina made a reply in which he defined the issue as being between defense and tribute; but Giles had the last word. He wanted to know whether it was maintained that the frigates it was proposed to build would "boldly march upon land and break the chains of the prisoners?" He begged Congress not to do what "would irritate the barbarians and furnish additional misery to the unfortunate prisoners." In this closing struggle over the bill Giles fought single-handed. When he had quite finished, the bill was passed by 50 yeas to 39 nays, a result which showed a decided gain in strength from the discussion.
The debates in the Senate have not been preserved, but the Senate was so evenly divided that it took the casting vote of the Vice-President to pass the bill, which became law March 27, 1794. In order to get it passed at all, a proviso had been tacked on that, if peace terms could be arranged, "no farther proceeding be had under this Act." In September, 1795, a treaty of peace with Algiers was finally concluded, after negotiations had been facilitated by a contingent fee of $18,000 paid to "Bacri the Jew, who has as much art in this sort of management as any man we ever knew," the American agents reported. It was a keen bargain, as Bacri had to propitiate court officials at his own risk, and had to look for both reimbursement and personal profit, too, out of the lump sum he was to receive in event of his success. It can hardly be doubted that he had the situation securely in hand before making the bargain. The money paid in Algiers for the ransom of the captives, for tribute and for presents to officials amounted to $642,500.00. But in addition the United States agreed to build a frigate for the Algerine navy and also supply naval stores, which with incidental expenses brought the total cost of the peace treaty up to $992,463.25. Moreover, the United States agreed to pay an annual tribute of 12,000 sequins,--about $27,500.