Federal government

The -system of government administered in a state formed by the union or confederation of several independent or quasi independent states; also the composite state so formed. In strict usage, there is a distinction between a confederation and a federal government. The former term denotes a league or permanent alliance between several states, each of which ls fully sovereign and independent, and each of which retains its full dignity, organization, and sovereignty, though yielding to the central authority a controlling power for a few limited purposes, such as external and diplomatic relations. In this case, the component states are the units, with respect to the confederation, and the central government acts upon them, not upon the individual citizens. In a federal government, on the other hand, the allied states form a union, — not, indeed, to such an extent as to destroy their separate organization or deprive them of quasi sovereignty with respect to the administration of their purely local concerns, but so that the central power is erected into a true state or nation, possessing sovereignty both external and internal, —while the administration of national affairs is directed, and its effects felt, not by the separate states deliberating as units, but by the people of nil, in their collective capacity, as citizens of the nation. The distinction is expressed, by the German writers, by the use of the two words " Staatcnbund" and "Bundesstaat;" the former denoting a league or confederation of states, and the latter a federal government, or state formed by means of a league or confederation.