disregarding the actual state of the world, and estimating at nothing
the miseries of a vast portion of the human race, can coolly and
deliberately pursue, through oceans of blood, abstract systems for the
attainment of some fancied untried good, were gathered in the French
West Indies. Instead of proceeding in the correction of any abuses
which might exist, by those slow and cautious steps which gradually
introduce reform without ruin, which may prepare and fit society for
that better state of things designed for it; and which, by not
attempting impossibilities, may enlarge the circle of happiness, the
revolutionists of France formed the mad and wicked project of
spreading their doctrines of equality among persons, between whom
distinctions and prejudices exist to be subdued only by the grave. The
rage excited by the pursuit of this visionary and baneful theory,
after many threatening symptoms, burst forth on the 23d day of August
1791, with a fury alike destructive and general. In one night, a
preconcerted insurrection of the blacks took place throughout the
colony of St. Domingo; and the white inhabitants of the country, while
sleeping in their beds, were involved in one indiscriminate massacre,
from which neither age nor sex could afford an exemption. Only a few
females, reserved for a fate more cruel than death, were intentionally
spared; and not many were fortunate enough to escape into the
fortified cities. The insurgents then assembled in vast numbers, and a
bloody war commenced between them and the whites inhabiting the towns.
The whole French part of the island was in imminent danger of being
totally lost to the mother country. The minister of his Most Christian
Majesty applied to the executive of the United States for a sum of
money which would enable him to preserve this valuable colony, to be
deducted out of the debt to his sovereign; and the request was granted
in a manner evincing the interest taken by the administration in
whatever might concern France.
On the part of Spain, a desire had been expressed to adjust the
subjects in controversy between the two nations by negotiations to be
carried on at Madrid; and Mr. Carmichael, and Mr. Short, had been
appointed commissioners, with powers equal to the object. In the mean
time, the officers of that nation persisted in measures which were
calculated to embroil the United States with the southern Indians. By
their intrigues with the Creeks, the treaty formed in 1790 with
M'Gillivray, was prevented from being ratified, and the boundary line
then agreed upon was not permitted to be run. The indefinite claim of
territory set up by Spain was alleged to constitute a sufficient
objection to any new line of demarcation, until that claim should be
settled; and her previous treaties and relations with the Creeks were
declared to be infringed by their stipulation, acknowledging
themselves to be under the protection of the United States.
An official diplomatic intercourse had at length been opened with
Great Britain also. Mr. Hammond, the minister plenipotentiary of that
nation to the United States, arrived at Philadelphia in the autumn of
1791; upon which, Mr. Thomas Pinckney, a gentleman of South Carolina,
who was highly and justly respected, had been charged with the
interests of his country at the court of London.[64] Soon after the
arrival of Mr. Hammond, the non-execution of the treaty of peace
became the subject of a correspondence between him and the secretary
of state, in which the complaints of their respective nations were
urged in terms manifesting clearly the sense entertained by each of
the justice of those complaints, without furnishing solid ground for
the hope that they would be immediately removed on either side.
[Footnote 64: In consequence of these nominations of foreign
ministers, a motion was made in the senate on a point which
is of some importance in settling the principles of the
American government. It was contended that the power of that
body over the appointment of a foreign minister gave the
right to inquire into the policy of making any appointment
whatever; and that in exercising this power, they were not
to confine themselves to a consideration of the fitness of
the person nominated, but were to judge of the propriety of
the mission; and were consequently to be informed of the
motives which had decided the President to adopt the
measure. This opinion was overruled by a small majority.]
Mr. Hammond's powers on the subject of a commercial treaty were far
from being satisfactory. To the inquiries of Mr. Jefferson on this
point, he replied, that he was authorized to enter into a negotiation
respecting the commercial intercourse between the two countries, and
to discuss those principles which might serve as a basis for a treaty,
but not to _conclude_ any definitive arrangements. In fact, there was
much reason to believe that the obstacles to a commercial treaty
between the two countries would not be soon or easily surmounted. In
America, such an alteration in the law of nations as would permit the
goods of an enemy to pass freely in the bottom of a neutral, was a
favourite project; and a full participation of the colonial trade was
also most earnestly desired. That the latter of these objects would
not be readily conceded by Great Britain did not admit of a doubt; but
many intelligent men, possessing great political influence, had
embraced the opinion that she could be forced out of that colonial
system which every European power having settlements in America had
adopted, by regulations restricting her navigation and commerce with
the United States. To those who entertained this opinion, no
commercial treaty could be acceptable, which did not contain the
concessions they required.
In addition to a general knowledge of the sentiments of the British
cabinet on these points, particular evidence had lately been received
of its positive decision respecting them. A comprehensive report on
American affairs had been made to the privy council by a committee of
that body, which was laid before the king. A few copies of it had been
printed for the members of the cabinet, which were soon called in by a
sudden order of council; but one of these copies was obtained, and
transmitted to the secretary of state of the United States. This
report manifested a willingness to form a commercial treaty with the
American government on principles of perfect equality, both with
respect to navigation and commerce, so far as regarded the dominions
of his Britannic Majesty in Europe; but it also discovered a
determination, to adhere inflexibly to the existing regulations for
the colonies; and to reject the principle that free bottoms make free
goods.
In this state paper the opinion was advanced, that several important
articles of exportation from the United States, especially tobacco,
had been peculiarly favoured in Great Britain; but that these friendly
regulations were not reciprocated by America. The means of retaliating
injuries which might be inflicted on British commerce were stated, but
those means, it was said, ought not hastily to be adopted, the more
especially, as the existing government of the United States had
discovered dispositions more favourable to a liberal and fair
intercourse between the two countries, than had been manifested by the
respective states. For several reasons it was deemed adviseable not
suddenly to disturb the existing state of things, but to regulate the
trade of the two nations by a treaty, the stipulations of which should
be equal, and mutually beneficial, provided such a treaty could be
formed without a departure from those principles which were considered
as fundamental.
[Sidenote: General Wayne appointed to the command of the army.]
No abatement of hostility having taken place among the north-western
Indians, the preparations for terminating the war by the sword were
earnestly pressed. Major General Wayne was appointed to succeed
General St. Clair, who resigned the command of the army; and the
utmost exertions were made to complete it to the establishment; but
the laws furnished such small inducements to engage in the service,
that the highest military grades, next to that of Commander-in-chief,
were declined by many to whom they were offered; and the recruiting
business advanced too slowly to authorize a hope that the decisive
expedition which was meditated, could be prudently undertaken in the
course of the present year. Meanwhile, the public clamour against the
war continued to be loud and violent. It was vehemently asserted, that
if the intentions of the government respecting the savages were just
and humane, those intentions were unknown to them, and that their
resentments were kept up by the aggressions of whites, and by the
opinion that their expulsion from the country they occupied was the
object of the hostilities carried on against them. However satisfied
the President might be of the fallacy of these opinions, they were too
extensively maintained not to be respected, as far as was compatible
with a due regard to the real interests of the nation. While,
therefore, the preparations for offensive operations were hastened by
a vigorous exertion of the means at the disposal of the executive, it
was thought adviseable to make another effort to terminate the war by
a direct communication of the pacific views of the United States.--The
failure of these attempts was still less to be lamented than the fate
of those who were employed in them. Colonel Harden and Major Trueman,
two brave officers and valuable men, were severally despatched with
propositions of peace, and each was murdered by the savages.
[Sidenote: Meeting of congress.]
[Sidenote: President's speech.]
On the 5th of November congress again convened. In the speech
delivered at the commencement of the session, Indian affairs were
treated at considerable length, and the continuance of the war was
mentioned as a subject of much regret. "The reiterated endeavours," it
was said, "which had been made to effect a pacification, had hitherto
issued in new and outrageous proofs of persevering hostility on the
part of the tribes with whom the United States were in contest.
"A detail of the measures that had been pursued, and of their
consequences, which would be laid before congress, while it would
confirm the want of success thus far, would evince that means as
proper and as efficacious as could have been devised, had been
employed. The issue of some of them was still pending; but a
favourable one, though not to be despaired of, was not promised by any
thing that had yet happened."
That a sanction, commonly respected even among savages, had been found
insufficient to protect from massacre the emissaries of peace, was
particularly noticed; and the families of those valuable citizens who
had thus fallen victims to their zeal for the public service, were
recommended to the attention of the legislature.
That unprovoked aggression had been made by the southern Indians, and
that there was just cause for apprehension that the war would extend
to them also, was mentioned as a subject of additional concern.
"Every practicable exertion had been made to be prepared for the
alternative of prosecuting the war, in the event of a failure of
pacific overtures. A large proportion of the troops authorized to be
raised, had been recruited, though the numbers were yet incomplete;
and pains had been taken to discipline them, and put them in a
condition for the particular kind of service to be performed. But a
delay of operations, besides being dictated by the measures that were
pursuing towards a pacific termination of the war, had been in itself
deemed preferable to immature efforts."
The humane system which has since been successfully pursued, of
gradually civilizing the savages by improving their condition, of
diverting them in some degree from hunting to domestic and
agricultural occupations by imparting to them some of the most simple
and useful acquisitions of society, and of conciliating them to the
United States by a beneficial and well regulated commerce, had ever
been a favourite object with the President, and the detailed view
which was now taken of Indian affairs, was concluded with a repetition
of his recommendations of these measures.
The subject next adverted to in the speech, was the impediments which
in some places continued to embarrass the collection of the duties on
spirits distilled within the United States. After observing that these
impediments were lessening in local extent, but that symptoms of such
increased opposition had lately manifested themselves in certain
places as, in his judgment, to render his special interposition
adviseable, the President added,--"Congress may be assured that
nothing within constitutional and legal limits which may depend on me,
shall be wanting to assert and maintain the just authority of the
laws. In fulfilling this trust, I shall count entirely on the full
co-operation of the other departments of government, and upon the
zealous support of all good citizens."
After noticing various objects which would require the attention of
the legislature, the President addressed himself particularly to the
house of representatives, and said, "I entertain a strong hope that
the state of the national finances is now sufficiently matured to
enable you to enter upon a systematic and effectual arrangement for
the regular redemption and discharge of the public debt, according to
the right which has been reserved to the government. No measure can be
more desirable, whether viewed with an eye to its intrinsic
importance, or to the general sentiments and wish of the nation."
The addresses of the two houses in answer to the speech, were, as
usual, respectful and affectionate. The several subjects recommended
to the attention of congress were noticed either in general terms, or
in a manner to indicate a coincidence of sentiment between the
legislative and executive departments. The turbulent spirit which had
manifested itself in certain parts of the union was mentioned by both
houses with a just degree of censure, and the measures adopted by the
President, as well as the resolution he expressed to compel obedience
to the laws, were approved; and the house of representatives, in the
most unqualified terms, declared opinions in favour of systematic and
effectual arrangements for discharging the public debt. But the
subsequent proceedings of the legislature did not fulfil the
expectations excited by this auspicious commencement of the session.
At an early day, in a committee of the whole house on the President's
speech, Mr. Fitzsimmons moved "that measures for the reduction of so
much of the public debt as the United States have a right to redeem,
ought to be adopted: and that the secretary of the treasury be
directed to report a plan for that purpose."
This motion was objected to by Mr. Madison as being premature. The
state of the finances, he thought, was not sufficiently understood to
authorize the adoption of the measure it contemplated. The debate
however soon took a different direction. That part of the resolution
which proposed a reference to the secretary of the treasury was
particularly opposed; and an ardent discussion ensued, in which,
without much essential variation, the arguments which had before been
urged on the same subject were again employed. After a vehement
contest, the motion to amend the resolution by striking out the
proposed reference was overruled, and it was carried in its original
form.
{1793}
In obedience to this order, the secretary made a report, in which he
proposed a plan for the annual redemption of that portion of the debt,
the payment of which was warranted by the contract between the United
States and their creditors. But the expenses of the Indian war
rendering it, in his opinion, unsafe to rest absolutely on the
existing revenue, he proposed to extend the internal taxes to pleasure
horses, or pleasure carriages, as the legislature might deem most
eligible. The consideration of this report was deferred on various
pretexts; and a motion was made to reduce the military establishment.
The debate on this subject was peculiarly earnest; and, in its
progress, the mode of conducting the Indian war, the relative merits
and expensiveness of militia and of regular troops, and the danger to
liberty from standing armies, were elaborately discussed. It was not
until the fourth of January that the motion was rejected. While that
question remained undecided, the report of the secretary was
unavoidably postponed, because, on its determination would depend, in
the opinion of many, the necessity of additional taxes. It would seem
not improbable that the opponents of the American system of finances,
who constituted rather a minority of the present congress, but who
indulged sanguine hopes of becoming the majority in the next, were
desirous of referring every question relating to the treasury
department to the succeeding legislature, in which there would be a
more full representation of the people. Whatever might be the
operating motives for delay, neither the extension of the law imposing
a duty on spirits distilled within the United States to the territory
north-west of the river Ohio, nor the plan for redeeming the public
debt, which was earnestly pressed by the administration, could be
carried through the present congress. Those who claimed the favour and
confidence of the people as a just reward for their general attachment
to liberty, and especially for their watchfulness to prevent every
augmentation of debt, were found in opposition to a system for its
diminution, which was urged by men who were incessantly charged with
entertaining designs for its excessive accumulation, in order to
render it the corrupt instrument of executive influence. It might be
expected that the public attention would be attracted to such a
circumstance. But when party passions are highly inflamed, reason
itself submits to their control, and becomes the instrument of their
will. The assertion that the existing revenues, if not prodigally or
corruptly wasted, were sufficient for the objects contemplated by the
President in his speech, would constitute an ample apology for the
impediments thrown in the way of a system which could not be directly
disapproved, and would justify a continuance of the charge that the
supporters of the fiscal system were friends to the augmentation of
the public debt.
Soon after the motion for the reduction of the military establishment
was disposed of, another subject was introduced, which effectually
postponed, for the present session, every measure connected with the
finances of the nation.
An act of congress, which passed on the fourth of August, 1790,
authorized the President to cause to be borrowed any sum not exceeding
twelve millions of dollars, to be applied in payment of the foreign
debt of the United States.
A subsequent act, which passed on the 12th of the same month,
authorized another loan not exceeding two millions, to be applied, in
aid of the sinking fund, towards the extinguishment of the domestic
debt.
A power to make these loans was delegated by the President to the
secretary of the treasury by a general commission referring to the
acts. This commission was accompanied by written instructions,
directing the payment of such parts of the foreign debt as should
become due at the end of the year 1791; but leaving the secretary,
with respect to the residue, to be regulated by the interests of the
United States.
Under this commission two loans were negotiated in 1790, and others at
subsequent periods.
As many considerations of convenience opposed such an arrangement as
would appropriate all the monies arising from either of these loans to
one object, to the total exclusion of the other; and no motive was
perceived for thus unnecessarily fettering the operations of the
treasury; each loan was negotiated under both laws; and consequently
the monies produced by each were applicable to both objects, in such
proportions as the President might direct. It has been already
observed that his written instructions had ordered the payment of
those instalments of the foreign debt which should become due before
the first of January, 1792; but no further sums on that account were
to be borrowed until supplemental orders to that effect should be
given, unless a loan could be made on such terms as would render it
advantageous to the United States to anticipate the payments to their
foreign creditors. It being the opinion of both the President and
secretary that the official powers of the latter authorized him to
draw the monies borrowed for domestic purposes into the treasury,
where they would form a part of the sinking fund, and be applicable to
the objects of that fund in conformity with the laws of appropriation,
no written instructions were given respecting that part of the
subject; but in the progress of the business, every material step
which was taken was communicated to the President, and his directions
obtained upon it. While the chief magistrate remained at the seat of
government, these communications were verbal; when absent, they were
made by letter.
At this period, the domestic debt bore a low price in the market, and
foreign capital was pouring into the United States for its purchase.
The immediate application of the sinking fund to this object would
consequently acquire a large portion of the debt, and would also
accelerate its appreciation. The best interests of the United States,
and his own fame, thus impelling the secretary to give the operations
of the sinking fund the utmost activity of which it was susceptible,
he had, with the approbation of the President, directed a part of the
first loan to be paid in discharge of the instalments of the foreign
debt which were actually due, and had drawn a part of it into the
public treasury in aid of the sinking fund.
In May, 1791, instructions were given to the agent of the United
States in Europe, to apply the proceeds of future loans, as they
should accrue, in payments to France, except such sums as should be
previously and specially reserved. In the execution of these
instructions, some delay intervened, which was to be ascribed, among
other causes, to representations made by the French minister of marine
that a plan would be adopted, to which a decree of the national
assembly was requisite, for converting a large sum into supplies for
St. Domingo: and to a desire on the part of the agent to settle,
previously to further payments, a definitive rule by which the monies
paid should be liquidated, and credited to the United States. The
disordered state of French affairs protracted both the one and the
other of these causes of delay, to a later period than had been
expected; and, in the mean time, the secretary continued to draw into
the United States such portions of these loans, as were destined to be
brought in aid of the sinking fund. Such was the state of this
transaction, when the commencement of those calamities, which have
finally overwhelmed St. Domingo, induced the American government, on
the urgent application of the French minister, to furnish supplies to
that ill fated colony, in payment of the debt to France. This being a
mode of payment which, to a certain extent, was desired by the
creditor, and was advantageous to the debtor, a consequent disposition
prevailed to use it so far as might comport with the wish of the
French government; and a part of the money designed for foreign
purposes, was drawn into the United States. In the course of these
operations, a portion of the instalments actually due to France, had
been permitted to remain unsatisfied.
A part of the money borrowed in Europe being thus applicable to the
extinguishment of the domestic debt, and a part of the domestic
revenue being applicable to the payment of interest due on the loans
made in Europe, the secretary of the treasury had appropriated a part
of the money arising from foreign loans to the payment of interest due
abroad, which had been replaced by the application of money in the
treasury arising from domestic resources, to the purchase of the
domestic debt.
The secretary had not deemed it necessary to communicate these
operations in detail to the legislature: but some hints respecting
them having been derived either from certain papers which accompanied
a report made to the house of representatives early in the session, or
from some other source, Mr. Giles, on the 23d of January, moved
several resolutions, requiring information, among other things, on the
various points growing out of these loans, and the application of the
monies arising from them, and respecting the unapplied revenues of the
United States, and the places in which the sums so unapplied were
deposited. In the speech introducing these resolutions, observations
were made which very intelligibly implied charges of a much more
serious nature than inattention to the exact letter of an
appropriation law. Estimates were made to support the position that a
large balance of public money was unaccounted for.
The resolutions were agreed to without debate; and, in a few days, the
secretary transmitted a report containing the information that was
required.
This report comprehended a full exposition of the views and motives
which had regulated the conduct of the department, and a very able
justification of the measures which had been adopted; but omitted to
state explicitly that part of the money borrowed in Europe had been
drawn into the United States with the sanction of the President.--It
is also chargeable with some expressions which can not be pronounced
unexceptionable, but which may find their apology in the feelings of a
mind conscious of its own uprightness, and wounded by the belief that
the proceedings against him had originated in a spirit hostile to fair
inquiry.
These resolutions, the observations which accompanied them, and the
first number of the report, were the signals for a combined attack on
the secretary of the treasury, through the medium of the press. Many
anonymous writers appeared, who assailed the head of that department
with a degree of bitterness indicative of the spirit in which the
inquiry was to be conducted.
[Sidenote: Resolutions implicating the secretary of the treasury
rejected.]
On the 27th of February, not many days after the last number of the
report was received, Mr. Giles moved sundry resolutions which were
founded on the information before the house. The idea of a balance
unaccounted for was necessarily relinquished; but the secretary of the
treasury was charged with neglect of duty in failing to give congress
official information of the monies drawn by him from Europe into the
United States; with violating the law of the 4th of August, 1790, by
applying a portion of the principal borrowed under it to the payment
of interest, and by drawing a part of the same monies into the United
States, without instructions from the President; with deviating from
the instructions of the President in other respects; with negotiating
a loan at the bank, contrary to the public interest, while public
monies to a greater amount than were required, lay unemployed in the
bank; and with an indecorum to the house, in undertaking to judge of
its motives in calling for information which was demandable of him
from the constitution of his office; and in failing to give all the
necessary information within his knowledge relative to subjects on
which certain specified references had been previously made to him.
These resolutions were followed by one, directing that a copy of them
should be transmitted to the President of the United States.
The debate on this subject, which commenced on the 28th of February,
was continued to the 1st of March, and was conducted with a spirit of
acrimony towards the secretary, demonstrating the soreness of the
wounds that had been given and received in the political and party
wars which had been previously waged.[65] It terminated in a rejection
of all the resolutions. The highest number voting in favour of any one
of them was sixteen.
[Footnote 65: See note, No. VIII. at the end of the volume.]
[Sidenote: Congress adjourns.]
On the 3d of March, a constitutional period was put to the existence
of the present congress. The members separated with obvious symptoms
of extreme irritation. Various causes, the most prominent of which
have already been noticed, had combined to organize two distinct
parties in the United States, which were rapidly taking the form of a
ministerial and an opposition party. By that in opposition, the
President was not yet openly renounced. His personal influence was too
great to be encountered by a direct avowal that he was at the head of
their adversaries; and his public conduct did not admit of a suspicion
that he could allow himself to rank as the chief of a party. Nor could
public opinion be seduced to implicate him in the ambitious plans and
dark schemes for the subversion of liberty, which were ascribed to a
part of the administration, and to the leading members who had
supported the measures of finance adopted by the legislature.
Yet it was becoming apparent that things were taking a course which
must inevitably involve him in the political conflicts which were
about to take place. It was apparent that the charges against the
secretary of the treasury would not be relinquished, and that they
were of a nature to affect the chief magistrate materially, should his
countenance not be withdrawn from that officer. It was equally
apparent that the fervour of democracy, which was perpetually
manifesting itself in the papers, in invectives against levees,
against the trappings of royalty, and against the marks of peculiar
respect[66] which were paid to the President, must soon include him
more pointedly in its strictures.
[Footnote 66: On the 22d of February, the birthday of the
President, a motion was made to adjourn for half an hour. It
was perfectly understood that this motion was made to give
the members an opportunity of waiting on the chief
magistrate to make the compliments adapted to the occasion.
This was seriously opposed, and the ayes and noes called
upon the question. The adjournment was carried by forty-one
to eighteen. The day was celebrated by several companies,
and some toasts were published manifesting the deep sense
which was entertained of the exalted services of this
illustrious citizen. These circumstances gave great umbrage
to some of those who could perceive monarchical tendencies
in every act of respect, and the offenders were rebuked in
the National Gazette for setting up an idol who might become
dangerous to liberty, and for the injustice of neglecting
all his compatriots of the revolution, and ascribing to him
the praise which was due to others.]
These divisions, which are inherent in the nature of popular
governments, by which the chief magistrate, however unexceptionable
his conduct, and however exalted his character, must, sooner or later,
be more or less affected, were beginning to be essentially influenced
by the great events of Europe.
[Sidenote: Progress of the French revolution and its effects on
parties in the United States.]
That revolution which has been the admiration, the wonder, and the
terror of the civilized world, had, from its commencement, been viewed
in America with the deepest interest. In its first stage, but one
sentiment respecting it prevailed; and that was a belief, accompanied
with an ardent wish, that it would improve the condition of France,
extend the blessings of liberty, and promote the happiness of the
human race. When the labours of the convention had terminated in a
written constitution, this unanimity of opinion was in some degree
impaired. By a few who had thought deeply on the science of
government, and who, if not more intelligent, certainly judged more
dispassionately than their fellow citizens, that instrument was
believed to contain the principles of self destruction. It was feared
that a system so ill balanced could not be permanent. A deep
impression was made on the same persons by the influence of the
galleries over the legislature, and of mobs over the executive; by the
tumultuous assemblages of the people, and their licentious excesses
during the short and sickly existence of the regal authority. These
did not appear to be the symptoms of a healthy constitution, or of
genuine freedom. Persuaded that the present state of things could not
last, they doubted, and they feared for the future.
In total opposition to this sentiment was that of the public. There
seems to be something infectious in the example of a powerful and
enlightened nation verging towards democracy, which imposes on the
human mind, and leads human reason in fetters. Novelties, introduced
by such a nation, are stripped of the objections which had been
preconceived against them; and long settled opinions yield to the
overwhelming weight of such dazzling authority. It wears the semblance
of being the sense of mankind, breaking loose from the shackles which
had been imposed by artifice, and asserting the freedom, and the
dignity, of his nature.
The constitution of France, therefore, was generally received with
unqualified plaudits. The establishment of a legislature consisting of
a single body, was defended not only as being adapted to the
particular situation of that country, but as being right in itself.
Certain anonymous writers, who supported the theory of a balanced
government, were branded as the advocates of royalty, and of
aristocracy. To question the duration of the present order of things
was thought to evidence an attachment to unlimited monarchy, or a
blind prejudice in favour of British institutions; and the partiality
of America in favour of a senate was visibly declining.
In this stage of the revolution, however, the division of sentiment
was not marked with sufficient distinctness, nor the passions of the
people agitated with sufficient violence, for any powerful effect to
be produced on the two parties in America. But when the monarchy was
completely overthrown, and a republic decreed,[67] the people of the
United States seemed electrified by the measure, and its influence was
felt by the whole society. The war in which the several potentates of
Europe were engaged against France, although in almost every instance
declared by that power, was pronounced to be a war for the extirpation
of human liberty, and for the banishment of free government from the
face of the earth. The preservation of the constitution of the United
States was supposed to depend on its issue; and the coalition against
France was treated as a coalition against America also.
[Footnote 67: This event was announced to the President by
the minister plenipotentiary of France at Philadelphia, in
February, 1793. Through the secretary of state, an answer
was returned, of which the following is an extract, "the
President receives with great satisfaction this attention of
the executive council, and the desire they have manifested
of making known to us the resolution entered into by the
national convention even before a definitive regulation of
their new establishment could take place. Be assured, sir,
that the government and the citizens of the United States,
view with the most sincere pleasure, every advance of your
nation towards its happiness, an object essentially
connected with its liberty, and they consider the union of
principles and pursuits between our two countries as a link
which binds still closer their interests and affections.
"We earnestly wish, on our part, that these our mutual
dispositions may be improved to mutual good, by establishing
our commercial intercourse on principles as friendly to
natural right and freedom as are those of our governments."]
A cordial wish for the success of the French arms, or rather that the
war might terminate without any diminution of French power, and in
such a manner as to leave the people of that country free to choose
their own form of government, was, perhaps, universal; but, respecting
the probable issue of their internal conflicts, perfect unanimity of
opinion did not prevail. By some few individuals, the practicability
of governing by a system formed on the republican model, an immense,
populous, and military nation, whose institutions, habits, and morals,
were adapted to monarchy, and which was surrounded by armed
neighbours, was deemed a problem which time alone could solve. The
circumstances under which the abolition of royalty was declared, the
massacres which preceded it, the scenes of turbulence and violence
which were acted in every part of the nation, appeared to them, to
present an awful and doubtful state of things, respecting which no
certain calculations could be made; and the idea that a republic was
to be introduced and supported by force, was, to them, a paradox in
politics. Under the influence of these appearances, the apprehension
was entertained that, if the ancient monarchy should not be restored,
a military despotism would be established. By the many, these
unpopular doubts were deemed unpardonable heresies; and the few to
whom they were imputed, were pronounced hostile to liberty. A
suspicion that the unsettled state of things in France had contributed
to suspend the payment of the debt to that nation, had added to the
asperity with which the resolutions on that subject were supported;
and the French revolution will be found to have had great influence on
the strength of parties, and on the subsequent political transactions
of the United States.
NOTES.
NOTE--No. I. _See Page 98._
The following is an extract from the orders of the preceding day. "The
Commander-in-chief orders the cessation of hostilities between the
United States of America and the king of Great Britain to be publicly
proclaimed to-morrow at twelve at the new building; and that the
proclamation which will be communicated herewith, be read to-morrow
evening at the head of every regiment, and corps of the army; after
which the chaplains with the several brigades will render thanks to
Almighty God for all his mercies, particularly for his overruling the
wrath of man to his own glory, and causing the rage of war to cease
among the nations.
"Although the proclamation before alluded to, extends only to the
prohibition of hostilities and not to the annunciation of a general
peace, yet it must afford the most rational and sincere satisfaction
to every benevolent mind, as it puts a period to a long and doubtful
contest, stops the effusion of human blood, opens the prospect to a
more splendid scene, and like another morning star, promises the
approach of a brighter day than hath hitherto illuminated the western
hemisphere. On such a happy day, which is the harbinger of peace, a
day which completes the eighth year of the war, it would be
ingratitude not to rejoice; it would be insensibility not to
participate in the general felicity.
"The Commander-in-chief, far from endeavouring to stifle the feelings
of joy in his own bosom, offers his most cordial congratulations on
the occasion to all the officers of every denomination, to all the
troops of the United States in general, and in particular to those
gallant and persevering men, who had resolved to defend the rights of
their invaded country, so long as the war should continue. For these
are the men who ought to be considered as the pride and boast of the
American Army; and who, crowned with well-earned laurels, may soon
withdraw from the field of glory, to the more tranquil walks of civil
life.
"While the general recollects the almost infinite variety of scenes
through which we have passed with a mixture of pleasure, astonishment
and gratitude; while he contemplates the prospect before us with
rapture, he can not help wishing that all the brave men (of whatever
condition they may be,) who have shared in the toils and dangers of
effecting this glorious revolution, of rescuing millions from the hand
of oppression, and of laying the foundation of a great empire, might
be impressed with a proper idea of the dignified part they have been
called to act (under the smiles of Providence) on the stage of human
affairs. For happy, thrice happy shall they be pronounced hereafter,
who have contributed any thing; who have performed the meanest office
in erecting this stupendous _fabric of freedom_ and empire on the
broad basis of independency; who have assisted in protecting the
rights of human nature, and establishing an asylum for the poor and
oppressed of all nations and religions. The glorious task for which we
first flew to arms being thus accomplished, the liberties of our
country being fully acknowledged and firmly secured by the smiles of
heaven, on the purity of our cause, and on the honest exertions of a
feeble people determined to be free, against a powerful nation
disposed to oppress them, and the character of those who have
persevered through every extremity of hardship, suffering, and danger,
being immortalized by the illustrious appellation of the _patriot
army_, nothing now remains but for the actors of this mighty scene to
preserve a perfect unvarying consistency of character through the very
last act; to close the drama with applause, and to retire from the
military theatre with the same approbation of angels and men which has
crowned all their former virtuous actions. For this purpose, no
disorder or licentiousness must be tolerated: every considerate and
well disposed soldier must remember, it will be absolutely necessary
to wait with patience until peace shall be declared, or congress shall
be enabled to take proper measures for the security of the public
stores, &c. As soon as these arrangements shall be made, the general
is confident there will be no delay in discharging with every mark of
distinction and honour all the men enlisted for the war who will then
have faithfully performed their engagements with the public. The
general has already interested himself in their behalf, and he thinks
he need not repeat the assurances of his disposition to be useful to
them on the present and every other proper occasion. In the mean time,
he is determined that no military neglects or excesses shall go
unpunished while he retains the command of the army."
* * * * *
NOTE--No. II. _See Page 106._
On his way, he stopped a few days at Philadelphia, for the purpose of
settling his accounts with the comptroller. The following account of
this part of his duty is extracted from Mr. Gordon; "while in the city
he delivered in his accounts to the comptroller, down to December the
13th, all in his own hand writing, and every entry made in the most
particular manner, stating the occasion of each charge, so as to give
the least trouble in examining and comparing them with the vouchers
with which they were attended.
"The heads as follows, copied from the folio manuscript paper book in
the file of the treasury office, number 3700, being a black box of tin
containing, under lock and key, both that and the vouchers."
Total of expenditures from 1775 to 1783,
exclusive of provisions from commissaries
and contractors, and of liquors, &c. from
them and others, 3,387 14 4
Secret intelligence and service, 1,982 10 0
Spent in reconnoitring and travelling, 1,874 8 0
Miscellaneous charges, 2,952 10 1
Expended besides, dollars according to the
scale of depreciation, 6,114 14 0
-------------------
_l._ 16,311 17 1
-------------------
"Two hundred guineas advanced to General M'Dougal are not included in
the _l._ 1982 10 0 not being yet settled, but included in some of the
other charges, and so reckoned in the general sum.
"Note; 104,364, of the dollars were received after March, 1780, and
although credited at forty for one, many did not fetch at the rate of
a hundred for one; while 27,775 of them are returned without deducting
any thing from the above account (and, therefore, actually made a
present of to the public)."
General Washington's account from
June, 1778 to the end of June, 1783, 16,311 17 1
Expenditure from July 1, 1783, to December 13, 1,717 5 4
Added afterward from thence to December 28, 213 8 4
Mrs. Washington's travelling expenses in
coming to the general and returning, 1,064 1 0
--------------
_l._ 19,306 11 9
--------------
Lawful money of Virginia, the same as
Massachusetts, or sterling, _l._ 14,479 18 9 3-4
The general entered in his book--"I find upon the final adjustment of
these accounts, that I am a considerable loser, my disbursements
falling a good deal short of my receipts, and the money I had upon
hand of my own: for besides the sums I carried with me to Cambridge in
1775, I received monies afterwards on private account in 1777, and
since, which (except small sums, that I had occasion now and then to
apply to private uses) were all expended in the public service:
through hurry, I suppose, and the perplexity of business, (for I know
not how else to account for the deficiency) I have omitted to charge
the same, whilst every debit against me is here credited."
July 1st, 1783.
* * * * *
NOTE--No. III. _See Page 179._
The year 1784 had nearly passed away before the determination of the
British cabinet not to evacuate the western posts was known to the
government of the United States. In the spring of that year, General
Knox, who commanded the troops still retained in the service of the
United States, was directed to "open a correspondence with the
Commander-in-chief of his Britannic majesty's forces in Canada, in
order to ascertain the precise time when each of the posts within the
territories of the United States then occupied by the British troops
should be delivered up." The measures produced by this resolution
exhibit a curious specimen of the political opinions on the subject of
federal powers, which then prevailed in congress.
It being at that time believed that the British garrisons would
certainly be withdrawn, it became necessary to provide for occupying
the posts when surrendered, with troops belonging to the United
States. A number deemed sufficient for the purpose not having been
retained in service, a motion was made for raising seven hundred men,
by requisitions on the states for that and other objects specified in
the resolution. The power of congress to make these requisitions was
seriously contested, and it was gravely urged that such a power,
connected with the rights to borrow money, and to emit bills of
credit, would be dangerous to liberty, and alarming to the states. The
motion for raising this small number of regulars did not prevail; and
an order was made that except twenty-five privates to guard the stores
at fort Pitt, and fifty-five to guard those at West Point and other
magazines, with a proportionable number of officers, no one to exceed
the rank of captain, the troops already in service should be
discharged, unless congress, before its recess, should dispose of them
in some other manner. For the purpose of garrisoning the posts, seven
hundred militia were required from Connecticut, New York, New Jersey
and Pennsylvania, who should serve twelve months. While the
discussions on this subject were pending, instructions from the
legislature of New York to their delegates were laid before congress,
requesting that body in terms of great strength, in pursuance of the
confederation, to declare the number of troops of which the garrisons
of those posts which were within the limits of that state should
consist. The resolutions asserted a constitutional right to demand
from congress a declaration upon this point, and avowed a
determination to raise the troops should such declaration be withheld.
After the determination of the British government not to surrender the
posts was known, the militia ordered to be raised to garrison them,
who were not in actual service, were discharged.
* * * * *
NOTE--No. IV. _See Page 370._
In the formation of this treaty, a question came on to be considered
and decided which involved a principle that on an after occasion, and
in a different case, excited a ferment never to be forgotten by those
who took an active part in the politics of the day.
The whole commerce of the Creek nation was in the hands of
M'Gillivray, who received his supplies from a company of British
merchants, free from duty, through the territories belonging to Spain.
This circumstance constituted no inconsiderable impediment to the
progress of the negotiation. M'Gillivray derived emoluments from the
arrangement which he would not consent to relinquish; and was not
without apprehensions, that Spain, disgusted by his new connexions
with the United States, might throw embarrassments in the way of this
profitable traffic. In addition to this consideration, it was, on the
part of the United States, desirable to alter the channel through
which the Indians should receive their supplies, and thereby to render
them more dependent on the American government. But it would be
necessary to exempt the goods designed for the Indian nation from the
duties imposed by law on imported articles, and the propriety of such
an exemption might well be questioned.
With that cautious circumspection which marked his political course,
the president took this point into early consideration, and required
the opinion of his constitutional advisers respecting it. The
secretary of state was of opinion that the stipulation for importing
his goods through the United States, duty free, might safely be made.
"A treaty made by the president with the concurrence of two-thirds of
the senate, was," he said, "a law of the land," and a law of superior
order, because it not only repeals past laws, but can not itself be
repealed by future ones. The treaty then will legally control the duty
act, and the act for licensing traders in this particular instance.
From this opinion there is no reason to suppose that any member of the
cabinet dissented. A secret article providing for the case was
submitted to the senate, and it has never been understood that in
advising and consenting to it, that body was divided.
* * * * *
NOTE--No. V. _See Page 394._
This question was investigated with great labour, and being one
involving principles of the utmost importance to the United States, on
which the parties were divided, the subject was presented in all the
views of which it was susceptible. A perusal of the arguments used on
the occasion would certainly afford much gratification to the curious,
and their insertion at full length would perhaps be excused by those
who recollect the interest which at the time was taken in the measure
to which they related, and the use which was made of it by the
opponents of the then administration; but the limits prescribed for
this work will not permit the introduction of such voluminous papers.
It may, however, be expected that the outline of that train of
reasoning with which each opinion was supported, and on which the
judgment of the president was most probably formed, should be briefly
stated.
To prove that the measure was not sanctioned by the constitution, the
general principle was asserted, that the foundation of that instrument
was laid on this ground, "that all powers not delegated to the United
States by the constitution, nor prohibited by it to the states, are
reserved to the states or to the people." To take a single step beyond
the boundaries thus specially drawn around the powers of congress, is
to take possession of a boundless field of power, no longer
susceptible of definition.
The power in question was said not to be among those which were
specially enumerated, nor to be included within either of the general
phrases which are to be found in the constitution.
The article which contains this enumeration was reviewed; each
specified power was analyzed; and the creation of a corporate body was
declared to be distinct from either of them.
The general phrases are,
1st. To lay taxes to provide for the general welfare of the United
States. The power here conveyed, it was observed, was "to lay taxes,"
the purpose was "the general welfare." Congress could not lay taxes
_ad libitum_, but could only lay them for the general welfare; nor did
this clause authorize that body to provide for the general welfare
otherwise than by laying taxes for that purpose.
2dly. To make all laws which shall be necessary and proper for
carrying into execution the enumerated powers.
But they can all be carried into execution without a bank. A bank,
therefore, is not necessary, and consequently not authorized by this
phrase.
It had been much urged that a bank would give great facility or
convenience in the collection of taxes. Suppose this were true; yet
the constitution allows only the means which are necessary, not those
which are convenient. If such a latitude of construction be allowed
this phrase, as to give any non-enumerated power, it will go to every
one; for there is no one which ingenuity may not torture into a
_convenience, in some way or other, to some one_ of so long a list of
enumerated powers. It would swallow up all the list of enumerated
powers, and reduce the whole to one phrase. Therefore it was that the
constitution restrained them to _necessary_ means, that is to say, to
those means without which the grant of the power must be nugatory.
The convenience was then examined. This had been stated in the report
of the secretary of the treasury to congress, to consist in the
augmentation of the circulation medium, and in preventing the
transportation and retransportation of money between the states and
the treasury.
The first was considered as a demerit. The second, it was said, might
be effected by other means. Bills of exchange and treasury drafts
would supply the place of bank notes. Perhaps indeed bank bills would
be a more convenient vehicle than treasury orders; but a little
difference in the degree of convenience can not constitute the
_necessity_ which the constitution makes the ground for assuming any
non-enumerated power.
Besides, the existing state banks would, without doubt, enter into
arrangements for lending their agency. This expedient alone suffices
to prevent the existence of that _necessity_ which may justify the
assumption of a non-enumerated power as a means for carrying into
effect an enumerated one.
It may be said that a bank whose bills would have a currency all over
the states, would be more convenient than one whose currency is
limited to a single state. So it would be still more convenient that
there should be a bank whose bills should have a currency all over the
world; but it does not follow from this superior conveniency, that
there exists any where a power to establish such a bank, or that the
world may not go on very well without it.
For a shade or two of convenience, more or less, it can not be
imagined that the constitution intended to invest congress with a
power so important as that of erecting a corporation.
In supporting the constitutionality of the act, it was laid down as a
general proposition, "that every power vested in a government is in
its nature _sovereign_," and includes by _force_ of the _term_, a
right to employ all the _means_ requisite and _fairly applicable to_
the attainment of the _ends_ of such power; and which are not
precluded by restrictions and exceptions specified in the
constitution, are not immoral, are not contrary to the essential ends
of political society.
This principle, in its application to government in general, would be
admitted as an axiom; and it would be incumbent on those who might
refuse to acknowledge its influence in American affairs to _prove_ a
distinction; and to show that a rule which, in the general system of
things, is essential to the preservation of the social order, is
inapplicable to the United States.
The circumstance that the powers of sovereignty are divided between
the national and state governments, does not afford the distinction
required. It does not follow from this, that each of the portions of
power delegated to the one or to the other, is not sovereign with
regard to its _proper objects_. It will only follow from it, that each
has sovereign power as to certain things, and not as to other things.
If the government of the United States does not possess sovereign
power as to its declared purposes and trusts, because its power does
not extend to all cases, neither would the several states possess
sovereign power in any case; for their powers do not extend to every
case. According to the opinion intended to be combated, the United
States would furnish the singular spectacle of _a political society_
without _sovereignty_, or a people _governed_ without a _government_.
If it could be necessary to bring proof of a proposition so clear as
that which affirms that the powers of the federal government, _as to
its objects_, were sovereign, there is a clause in the constitution
which is decisive. It is that which declares the constitution of the
United States, the laws made in pursuance of it, and the treaties made
under its authority to be the supreme law of the land. The power which
can create the supreme law in any case, is doubtless sovereign as to
such case.
This general and indisputable principle puts an end to the abstract
question, whether the United States have power to erect a corporation:
for it is unquestionably incident to sovereign power to erect
corporations, and consequently to that of the United States, in
relation to the objects intrusted to the management of the government.
The difference is this: where the authority of the government is
general, it can create corporations _in all cases_; where it is
confined to certain branches of legislation, it can create
corporations only _in those cases_.
That the government of the United States can exercise only those
powers which are delegated by the constitution, is a proposition not
to be controverted; neither is it to be denied on the other hand, that
there are implied as well as express powers, and that the former are
as effectually delegated as the latter. For the sake of accuracy it
may be observed, that there are also _resulting_ powers. It will not
be doubted that if the United States should make a conquest of any of
the territories of its neighbours, they would possess sovereign
jurisdiction over the conquered territory. This would rather be a
result of the whole mass of the powers of the government, and from the
nature of political society, than a consequence of either of the
powers specially enumerated. This is an extensive case in which the
power of erecting corporations is either implied in, or would result
from some or all of the powers vested in the national government.
Since it must be conceded that implied powers are as completely
delegated as those which are expressed, it follows that, as a power of
erecting a corporation may as well be implied as any other thing, it
may as well be employed as an _instrument_ or _mean_ of carrying into
execution any of the specified powers as any other _instrument_ or
_mean_ whatever. The question in this as in every other case must be,
whether the mean to be employed has a natural relation to any of the
acknowledged objects or lawful ends of the government. Thus a
corporation may not be created by congress for superintending the
police of the city of Philadelphia, because they are not authorized to
regulate the police of that city; but one may be created in relation
to the collection of the taxes, or to the trade with foreign
countries, or between the states, or with the Indian tribes, because
it is in the province of the federal government to regulate those
objects; and because it is incident to a general sovereign or
legislative power to regulate a thing, to employ all the means which
relate to its regulation, to the best and greatest advantage.
A strange fallacy seems to have crept into the manner of thinking and
reasoning upon this subject. The imagination has presented an
incorporation as some great, _independent, substantive_ thing--as a
political end of peculiar magnitude and moment; whereas it is truly to
be considered as a quality, capacity, or mean to an end. Thus a
mercantile company is formed with a certain capital for the purpose of
carrying on a particular branch of business. The business to be
prosecuted is the _end_. The association in order to form the
requisite capital is the primary _mean_. Let an incorporation be
added, and you only add a new quality to that association which
enables it to prosecute the business with more safety and convenience.
The association when incorporated still remains the _mean_, and can
not become the _end_.
To this reasoning respecting the inherent right of government to
employ all the means requisite to the execution of its specified
powers, it is objected, that none but _necessary_ and _proper_ means
can be employed; and none can be _necessary_, but those without which
the grant of the power would be nugatory. So far has this restrictive
interpretation been pressed as to make the case of _necessity_ which
shall warrant the constitutional exercise of a power, to depend on
casual and temporary circumstances; an idea, which alone confutes the
construction. The expedience of exercising a particular power, at a
particular time, must indeed depend on circumstances, but the
constitutional right of exercising it must be uniform and invariable.
All the arguments, therefore, drawn from the accidental existence of
certain state banks which happen to exist to-day, and for aught that
concerns the government of the United States may disappear to-morrow,
must not only be rejected as fallacious, but must be viewed as
demonstrative that there is a radical source of error in the
reasoning.
But it is essential to the being of the government that so erroneous a
conception of the meaning of the word _necessary_ should be exploded.
It is certain that neither the grammatical nor popular sense of the
term requires that construction. According to both, _necessary_ often
means no more than _needful, requisite, incidental, useful_, or
_conducive to_. It is a common mode of expression to say that it is
necessary for a government or a person to do this or that thing, where
nothing more is intended or understood than that the interests of the
government or person require, or will be promoted by doing this or
that thing.
This is the true sense in which the word is used in the constitution.
The whole turn of the clause containing it indicates an intent to give
by it a liberal latitude to the exercise of the specified powers. The
expressions have peculiar comprehensiveness. They are "to make _all
laws_ necessary and proper for carrying into execution the foregoing
powers, and _all other_ powers vested by the constitution in the
government of the United States, or in any _department_ or _office_
thereof." To give the word "necessary" the restrictive operation
contended for, would not only depart from its obvious and popular
sense, but would give it the same force as if the word _absolutely_ or
_indispensably_ had been prefixed to it.
Such a construction would beget endless uncertainty and embarrassment.
The cases must be palpable and extreme in which it could be pronounced
with certainty that a measure was absolutely necessary, or one without
which a given power would be nugatory. There are few measures of any
government which would stand so severe a test. To insist upon it would
be to make the criterion of the exercise of an implied power _a case
of extreme necessity_; which is rather a rule to justify the
overleaping the bounds of constitutional authority than to govern the
ordinary exercise of it.
The degree in which a measure is necessary can never be a test of the
legal right to adopt it. The relation between the _measure_ and the
_end_; between the nature of the _mean_ employed towards the execution
of a power, and the object of that power must be the criterion of
constitutionality, not the more or less _necessity_ or _utility_.
The means by which national exigencies are to be provided for,
national inconveniences obviated, and national prosperity promoted,
are of such infinite variety, extent, and complexity, that here must
of necessity be great latitude of discretion in the selection and
application of those means. Hence the necessity and propriety of
exercising the authority intrusted to a government on principles of
liberal construction.
While on the one hand, the restrictive interpretation of the word
_necessary_ is deemed inadmissible, it will not be contended on the
other, that the clause in question gives any new and independent
power. But it gives an explicit sanction to the doctrine of implied
powers, and is equivalent to an admission of the proposition that the
government, _as to its specified powers and objects_, has plenary and
sovereign authority.
It is true that the power to create corporations is not granted in
terms. Neither is the power to pass any particular law, nor to employ
any of the means by which the ends of the government are to be
attained. It is not expressly given in cases in which its existence is
not controverted. For by the grant of a power to exercise exclusive
legislation in the territory which may be ceded by the states to the
United States, it is admitted to pass; and in the power "to make all
needful rules and regulations respecting the territory or other
property of the United States," it is acknowledged to be implied. In
virtue of this clause, has been implied the right to create a
government; that is, to create a body politic or corporation of the
highest nature; one that, in its maturity, will be able itself to
create other corporations. Thus has the constitution itself refuted
the argument which contends that, had it been designed to grant so
important a power as that of erecting corporations, it would have been
mentioned. But this argument is founded on an exaggerated and
erroneous conception of the nature of the power. It is not of so
transcendent a kind as the reasoning supposes. Viewed in a just light,
it is a _mean_ which ought to have been left to implication, rather
than an _end_ which ought to have been expressly granted.
The power of the government then to create corporations in certain
cases being shown, it remained to inquire into the right to
incorporate a banking company, in order to enable it the more
effectually to accomplish _ends_ which were in themselves lawful.
To establish such a right it would be necessary to show the relation
of such an institution to one or more of the specified powers of
government.
It was then affirmed to have a relation more or less direct to the
power of collecting taxes, to that of borrowing money, to that of
regulating trade between the states, to those of raising, supporting,
and maintaining fleets and armies; and in the last place to that which
authorizes the making of all needful rules and regulations concerning
the property of the United States, as the same had been practised upon
by the government.
The secretary of the treasury next proceeded, by a great variety of
arguments and illustrations, to prove the position that the measure in
question was a proper mean for the execution of the several powers
which were enumerated, and also contended that the right to employ it
resulted from the whole of them taken together. To detail those
arguments would occupy too much space, and is the less necessary,
because their correctness obviously depends on the correctness of the
principles which have been already stated.
* * * * *
NOTE--No. VI. _See Page 434._
The officer to whom the management of the finances was confided was so
repeatedly charged with a desire to increase the public debt and to
render it perpetual, and this charge had such important influence in
the formation of parties, that an extract from this report can not be
improperly introduced.
After stating the sum to be raised, the secretary says, "three
expedients occur to the option of the government for providing this:
"One, to dispose of the interest to which the United States are
entitled in the bank of the United States. This at the present market
price of bank stock would yield a clear gain to the government much
more than adequate to the sum required.
"Another, to borrow the money upon an establishment of funds either
merely commensurate with the interest to be paid, or affording a
surplus which will discharge the principal by instalments within a
short term.
"The third is to raise the amount by taxes."
After stating his objections to the first and second expedients, the
report proceeds thus, "but the result of mature reflection is, in the
mind of the secretary, a strong conviction that the last of the three
expedients which have been mentioned, is to be preferred to either of
the other two.
"Nothing can more interest the national credit and prosperity than a
constant and systematic attention to husband all the means previously
possessed for extinguishing the present debt, and to avoid, as much as
possible, the incurring of any new debt.
"Necessity alone, therefore, can justify the application of any of the
public property, other than the annual revenues, to the current
service, or the temporary and casual exigencies; or the contracting of
an additional debt by loans, to provide for those exigencies.
"Great emergencies indeed might exist, in which loans would be
indispensable. But the occasions which will justify them must be truly
of that description.
"The present is not of such a nature. The sum to be provided is not of
magnitude enough to furnish the plea of necessity.
"Taxes are never welcome to a community. They seldom fail to excite
uneasy sensations more or less extensive. Hence a too strong
propensity in the governments of nations, to anticipate and mortgage
the resources of posterity, rather than to encounter the
inconveniencies of a present increase of taxes.
"But this policy, when not dictated by very peculiar circumstances, is
of the worst kind. Its obvious tendency is, by enhancing the permanent
burdens of the people, to produce lasting distress, and its natural
issue is in national bankruptcy."
It will be happy if the councils of this country, sanctioned by the
voice of an enlightened community, shall be able to pursue a different
course.
* * * * *
NOTE--No. VII. _See Page 450._
_About the same time a letter was addressed to the attorney
general on the same subject. The following extract is taken
from one of the twenty-sixth of August to the secretary of
the treasury._
"Differences in political opinions are as unavoidable as, to a certain
point, they may be necessary; but it is exceedingly to be regretted
that subjects can not be discussed with temper, on the one hand, or
decisions submitted to on the other, without improperly implicating
the motives which led to them; and this regret borders on chagrin when
we find that men of abilities, zealous patriots, having the same
_general_ objects in view, and the same upright intentions to
prosecute them, will not exercise more charity in deciding on the
opinions and actions of each other. When matters get to such lengths,
the natural inference is that both sides have strained the cords
beyond their bearing, that a middle course would be found the best
until experience shall have decided on the right way; or, which is not
to be expected, because it is denied to mortals, until there shall be
some infallible rule by which to forejudge events.
"Having premised these things, I would fain hope that liberal
allowances will be made for the political opinions of each other; and
instead of those wounding suspicions, and irritating charges with
which some of our gazettes are so strongly impregnated, and which can
not fail, if persevered in, of pushing matters to extremity, and
thereby tearing the machine asunder, that there might be mutual
forbearance and temporising yieldings on _all sides_. Without these, I
do not see how the reins of government are to be managed, or how the
union of the states can be much longer preserved.
"How unfortunate would it be if a fabric so goodly, erected under so
many providential circumstances, after acquiring in its first stages,
so much respectability, should, from diversity of sentiment, or
internal obstructions to some of the acts of government (for I can not
prevail on myself to believe that these measures are as yet the acts
of a determined party) be brought to the verge of dissolution.
Melancholy thought! But while it shows the consequences of diversified
opinions, where pushed with too much tenacity, it exhibits evidence
also of the necessity of accommodation, and of the propriety of
adopting such healing measures as may restore harmony to the
discordant members of the union, and the governing powers of it.
"I do not mean to apply this advice to any measures which are passed,
or to any particular character. I have given it, in the same _general_
terms, to other officers of the government. My earnest wish is that
balm may be poured into _all_ the wounds which have been given, to
prevent them from gangrening, and to avoid those fatal consequences
which the community may sustain if it is withheld. The friends of the
union must wish this: those who are not, but who wish to see it
rended, will be disappointed; and all things I hope will go well."
* * * * *
NOTE--No. VIII. _See Page 479._
The gazettes of the day contain ample proofs on this subject. All the
bitterness of party spirit had poured itself out in the most severe
invectives against the heads of the state and treasury departments.
The secretary of the treasury was represented as the advocate of
"aristocracy, monarchy, hereditary succession, a titled order of
nobility, and all the other mock pageantry of kingly government." He
was arraigned at the bar of the public for holding principles
unfavourable to the sovereignty of the people, and with inculcating
doctrines insinuating their inability to rule themselves. The theory
of the British monarchy was said to have furnished his model for a
perfect constitution; and all his systems of finance, which were
represented as servile imitations of those previously adopted by
England, were held up to public execration as being intended to
promote the favourite project of assimilating the government of the
United States to that of Great Britain. With this view, he had
entailed upon the nation a heavy debt, and perpetual taxes; had
created an artificial monied interest which had corrupted, and would
continue to corrupt the legislature; and was endeavouring to prostrate
the local authorities as a necessary step towards erecting that great
consolidated monarchy which he contemplated.
To support some of these charges, sentences and parts of sentences
were selected from his reports, which expressed the valuable purposes
to which a funded debt might be applied, and were alleged to affirm,
as an abstract principle, "that a public debt was a public blessing."
He was, it was added, the inveterate enemy of Mr. Jefferson, because,
in the republican principles of that gentleman, he perceived an
invincible obstacle to his views.
If the counter charges exhibited against the secretary of state were
less capable of alarming the fears of the public for liberty, and of
directing the resentments of the people against that officer as the
enemy of their rights, they were not less calculated to irritate his
personal friends, and to wound his own feelings.
The adversaries of this gentleman said, that he had been originally
hostile to the constitution of the United States, and adverse to its
adoption; and "that his avowed opinions tended to national disunion,
national insignificance, public disorder, and discredit." Under the
garb of democratic simplicity, and modest retiring philosophy, he
covered an inordinate ambition which grasped unceasingly at power, and
sought to gratify itself, by professions of excessive attachment to
liberty, and by traducing and lessening in the public esteem, every
man in whom he could discern a rival. To this aspiring temper they
ascribed, not only "those pestilent whispers which, clandestinely
circulating through the country, had, as far as was practicable,
contaminated some of its fairest and worthiest characters," but also
certain publications affecting the reputation of prominent individuals
whom he might consider as competitors with himself for the highest
office in the state. A letter written by Mr. Jefferson to a printer,
transmitting for publication the first part of "the rights of man,"
which letter was prefixed to the American edition of that pamphlet,
contained allusions to certain "political heresies" of the day, which
were understood to imply a serious censure on the opinions of the vice
president: and the great object of the national gazette, a paper known
to be edited by a clerk in the department of state, was "to calumniate
and blacken public characters, and, particularly, to destroy the
public confidence in the secretary of the treasury, who was to be
hunted down for the unpardonable sin of having been the steady and
invariable friend of broad principles of national government." It was
also said that his connexions with this paper, and the patronage he
afforded it, authorized the opinion that it might fairly be considered
"the mirror of his views," and thence was adduced an accusation not
less serious in its nature than that which has been already stated.
The national gazette was replete with continual and malignant
strictures on the leading measures of the administration, especially
those which were connected with the finances. "If Mr. Jefferson's
opposition to these measures had ceased when they had received the
sanction of law, nothing more could have been said than that he had
transgressed the rules of official decorum in entering the lists with
the head of another department, and had been culpable in pursuing a
line of conduct which was calculated to sow the seeds of discord in
the executive branch of the government in the infancy of its
existence. But when his opposition extended beyond that point, when it
was apparent that he wished to _render odious_, and of course to
_subvert_ (for in a popular government these are convertible terms)
all those deliberate and solemn acts of the legislature which had
become the pillars of the public credit, his conduct deserved to be
regarded with a still severer eye." It was also said to be peculiarly
unfit for a person remaining at the head of one of the great executive
departments, openly to employ all his influence in exciting the public
rage against the laws and the legislature of the union, and in giving
circulation to calumnies against his colleagues in office, from the
contamination of which the chief magistrate himself could not hope
entirely to escape.
END OF VOLUME IV.