began on the 6th of January, 1790. At the close of the preceding
session, the secretary of the treasury had been directed to prepare a
plan for providing for the adequate support of the public credit, and
to report the same at the next meeting of congress. On the 15th, in
obedience to the foregoing requisition, Mr. Hamilton submitted his
report. Having dwelt with great ability upon the importance of a
nation maintaining the public credit, he proposed, as the means of
supporting that of the United States, a system of assuming or funding
not only the public debt, but also the state debts, and of making
provision for the payment of the interest by taxes imposed on certain
articles of luxury, and on spirits distilled within the United States.
The debates on this report were exciting beyond precedent. While not
much difference existed as to funding the foreign debt, a strong
opposition arose, on the part of the democratic party, against
discharging, in full, the domestic debt, and the assumption of the
state debts. The federalists advocated the measure. The contest
between the two rival parties was strong, spirited, and even virulent.
The very foundations of the government were shaken; and a writer has
justly remarked, that to the differences which were then created, and
the excitement which sprung up during the debates, may be ascribed
"the origin of that violent spirit which for years arrayed one part of
the American community against the other."
The division of sentiment among the members of congress in relation to
the full, or only a partial payment of the domestic debt, arose from
this. A considerable proportion of the original holders of public
securities had been compelled to sell them at greatly reduced
prices--even as low as two or three shillings on the pound. These
securities had been purchased by speculators, with the expectation of
ultimately receiving the full amount. "The federalists were with
Hamilton, in favor of making no difference between the present and
original holders of the continental bills, maintaining that the
government ought not to interfere with transfers. The republican party
advocated the discrimination; contending that it was unjust to the
veterans of the Revolution, who had been obliged to receive this paper
in lieu of gold and silver, and were afterwards compelled to part with
it at a small part of its nominal value, now to be condemned to
poverty, while the speculator was receiving the reward of their blood
and service."
The assumption of the state debts was also violently opposed. The
advocates of assumption claimed that the debts incurred by the state,
were not for their own benefit, but for the promotion of the common
cause, and that therefore it was right that the whole nation should be
responsible. The debts of the states most active in the war, were the
greatest: those of Massachusetts and Carolina amounted to ten millions
and a half, while those of all the other states were not more than
fifteen millions. Was it just to impose such a burden on the people of
these two states? They had already been great sufferers in the
privations they had endured and in the blood they had lost.
On taking the vote in the house of representatives, these two plans of
Mr. Hamilton were lost by a majority of two; and, for a season, there
was little prospect that a just financial system would be adopted, or
that the respective parties could on any basis coalesce. But,
fortunately, at this juncture, a question was exciting a deep
interest, and with reference to which there was a wide difference, and
deep feelings, between the northern and southern members, viz:
_The Removal of the Seat of Government._--The debates on this subject
were almost as exciting as on the fiscal project of Hamilton. A
compromise, however, was at length effected in regard to the permanent
location of the seat of government--the more important, as it led to a
further compromise in relation to the assumption of the state debts.
It was understood that should the seat of government be fixed for ten
years at Philadelphia, and afterwards at a place to be selected on
the Potomac, some of the members of the house of representatives, from
the Potomac, would withdraw their opposition to Mr. Hamilton. This was
accordingly done, and his plans were adopted. The debt funded amounted
to a little more than seventy-five millions of dollars, upon a part of
which an interest of three per cent. was paid, and upon the remainder
six per cent.
_National Bank._--During the third session of congress, Mr. Hamilton
recommended the establishment of a national bank. To such an
institution, the republican party were bitterly opposed, as
aristocratical and unconstitutional. Besides, they considered banking
institutions useless; the present bill, in several particulars,
defective; but, more than all, it was maintained that the constitution
had not vested the power in congress to charter a bank. The supporters
of the measure, of course, held opposite doctrines, and were not less
strenuous in maintaining them. The bill, however, at length passed both
branches of the national legislature; but the different opinions
entertained, and the asperity with which they had been expressed, led
the president to give to the subject, as a constitutional question, more
than ordinary attention. To aid him in his decision, he required
opinions of his cabinet in writing. Mr. Jefferson and Mr. Randolph
opposed--Mr. Hamilton and General Knox sanctioned the bill. After mature
deliberation, the president became satisfied of the constitutionality
and utility of the bill; upon which, he gave it his signature.
The capital stock of the bank was ten millions of dollars, two
millions to be subscribed for the benefit of the United States, and
the residue by individuals. One-fourth of the sums subscribed by
individuals was to be paid in gold and silver, and three-fourths in
the public debt. By the act of incorporation, it was to be a bank of
discount as well as deposit; and its bills, which were payable in gold
and silver on demand, were made receivable in all payments to the
United States. The bank was located at Philadelphia, with power in
the directors to establish offices of discount and deposit only
wherever they should think fit within the United States.
The duration of the charter was limited to the 4th of May, 1811; and
the faith of the United States was pledged that, during that period,
no other bank should be established under their authority. One of the
fundamental articles of the incorporation was, that no loan should be
made to the United States for more than one hundred thousand dollars;
or to any particular state for more than fifty thousand; or to any
foreign prince or state, unless previously authorized by a law of the
United States. The books were opened for subscription in July, 1791,
and a much larger sum subscribed than was allowed by the charter; and
the bank went into successful operation.[64]
The establishment of a national bank, in connexion with the assumption
of the state debts, contributed to the more complete organization of
two great parties, which had their origin in difference of views
regarding the constitution at the time of its adoption.
Mr. Hamilton and Mr. Jefferson, both eminent for their talents, and each
with his adherents, were now openly opposed on points which, as matters
of policy, were deemed of vital importance. The former was viewed, not
only as the author of the funding system, the bank, and other measures,
deemed either unconstitutional, or highly injurious to the public
interest, but was charged with hostility to republican principles and to
state rights. Mr. Jefferson, on the other hand, was considered hostile
to the constitution, and was accused of being opposed to the
administration of which he was a member, and of taking measures to
reduce the powers of the general government within too narrow limits. To
Washington, this determined hostility of his two principal secretaries
was truly afflicting; and the more so, when he found it so deep-rooted,
as in no degree to yield to his affectionate remonstrance.
_Indian War._--While the public councils were engaged thus in matters of
great national importance, the hostile movements of the Indian tribes on
the frontier began to excite the anxious solicitude of all reflecting
minds, especially that of Washington himself. The Creeks at the South
had been at war with Georgia; but in 1790, their chief, M'Gillivray, the
son of a white man, had been induced to go to New York, and conclude a
treaty. This terminated the war in that quarter; but pacific
arrangements, which had been attempted by the president with the tribes
on the north-western frontier, had proved ineffectual. The use of other
means for their pacification, therefore, became indispensably necessary.
In 1790, congress, at the solicitation of Washington, authorized the
raising of about fifteen hundred men, of whom three hundred were
regulars, and the remainder Pennsylvania and Kentucky militia. The
command of these was given to General Harmar, a veteran officer of the
Revolution, whose instructions required him to penetrate to the Indian
settlements on the Scioto and Wabash, and destroy them.
In the execution of his commission, in October, General Harmar
detached Colonel Harden with six hundred militia to reconnoitre the
Indian settlements, and, if possible, to bring them to an engagement;
but the Indians, on the approach of the Americans, fired their
principal villages, and fled to the woods. Thus foiled in his attempt
to bring the Indians to action, Colonel Harden was a second time
directed, with one hundred and eighty militia and thirty regulars, to
spy out the position and intentions of the foe. Ten miles west of
Chillicothe, sight was obtained of a considerable body of Indians; at
which, the Kentucky militia suddenly became so alarmed as to flee.
This evil example was soon after followed by the Pennsylvanians--thus
leaving the thirty regulars to sustain an engagement with a greatly
superior force. They displayed the greatest heroism; and maintained
the action, until all but seven being overpowered, the latter
effected their escape, and rëjoined the army at Chillicothe.
The Indian settlements bordering on the Scioto were now destroyed;
which having been accomplished, Colonel Harden was a third time
detached with three hundred and sixty men, of whom sixty were
regulars, under command of Major Wyllys. This force was attacked by a
large body of Indians at the junction of the St. Joseph with the St.
Mary. It was a most desperate contest. Here the militia retrieved
their character; nor did they attempt to retreat till one hundred and
nine men and officers lay dead on the field. Of the sixty regulars,
only ten survived, and among the killed was their brave commander,
Major Wyllys. Following this reverse, the survivors of the detachments
joined the army, and retired to Fort Washington.
On the failure of General Harmar, Major General Arthur St. Clair,
governor of the North-west territory, was appointed to succeed him. In
1791, at the head of two thousand men, the latter entered upon an
expedition which had for its object the destruction of the Indian
villages on the Miami. On the 3d of November, the army had proceeded
within twelve or fifteen miles of the Indian villages, at which point
the General formed his forces in two lines--the first, under command
of General Butler, composed the right wing, and lay with a creek
immediately in front of them. The left wing, under command of Colonel
Drake, formed the second, and lay with an interval of some seventy
yards between them and the first line. The militia occupied a post
across the creek, a quarter of a mile in front.
On the following day, before sunrise, just after the troops had been
dismissed from the parade, an unexpected attack was made on the militia,
who fled in the utmost confusion, and, in their flight, deranged the
continental troops, who were in the act of forming. The officers exerted
themselves to the utmost to restore order; but were not entirely
successful. The Indians fell upon them with savage impetuosity. The
action instantly became extremely warm. The continental troops fought
with spirit and determination; the Indians, with fearful desperation,
advancing to the very mouth of the field-pieces.
At length, perceiving that the only hope of victory lay in the use of
the bayonet, an impetuous charge was made under Lieutenant-colonel
Drake, and the enemy driven several hundred yards. But not being able
to pursue the advantage gained, the Indians turned, and renewed the
attack. Meanwhile, General Butler was mortally wounded, and the right
wing broken, the artillerists killed, the guns seized, and the camp
penetrated by the enemy. At this critical moment, Major Drake was
ordered to charge with the bayonet. This order he executed with great
intrepidity and momentary success.
But the American troops, failing to keep their ranks, and flocking
together in crowds, were, in several cases, shot down with but feeble
resistance. At length, perceiving that his officers had suffered
greatly, and the remnant of his army became more and more confused,
General St. Clair ordered a retreat. For some miles, the Indians
followed; but, fortunately for the surviving Americans, they at length
turned back, to plunder the camp of such articles as the former had
been obliged to abandon. The routed troops now continued their flight
to Fort Jefferson, a distance of about thirty miles, throwing away
their arms on the road. At this place, leaving their wounded, the army
continued its retreat to Fort Washington.
The loss of the Americans was severe, amounting to thirty-eight
commissioned officers killed, and five hundred and ninety-three
non-commissioned officers and privates slain and missing. The wounded
amounted to between two and three hundred officers and men, many of
whom subsequently died. The loss of the Indians bore no comparison, it
is thought, to that of the Americans. This reverse was as unexpected
as unfortunate; yet want of neither ability, zeal, nor intrepidity was
ascribed to the commander of the expedition, by a committee of
congress, appointed to examine into the causes of its failure.
The subsequent history of this war is brief. In consequence of an
anticipated adjustment of existing difficulties with the Indians, they
having consented to a conference in the spring of 1794, hostilities
were for a time suspended. But the proposed negotiations failing,
General Wayne, with nearly one thousand men, was sent into their
country, to reduce them to subjection. He engaged them in a sanguinary
battle on the 20th of August, 1794, on the banks of the Miami, which
resulted in their utter rout, and which was followed by laying waste
their whole country. By means of this victory over the Miamies, a
general Indian war was doubtless prevented. On the 3d of August, a
treaty was concluded at Greenville, which established peace between
the United States and the Indian tribes, and restored peace and
tranquillity to the frontier settlements.
_Rëelection of Washington._--During the year 1792, as the time
approached for the election of a chief magistrate, General Washington
expressed his intention, to some of his most intimate friends, to
decline a rëelection. His age and increasing infirmities rendered his
retirement from the cares of political life most desirable. In view of
such retirement, he had prepared a farewell address to the people.
But, through the persuasion of Jefferson, Hamilton, Randolph, and
others, he was induced to forego his private wishes, and was
unanimously rëelected to the presidency. No such unanimity has since
been manifested by the people of the United States, in relation to the
choice of a chief magistrate; nor is such unanimity likely again to
exist. And most conclusively does it show, not merely the gratitude of
the nation to the man who had stood foremost in times of peril, but
its deep and universal sense of the purity of his patriotism and the
worth of his skill in moulding and shaping the government still in its
infancy. Such harmony was alike honorable to the nation and to
Washington. Mr. Adams was rëelected vice-president. The following is
a statement of the votes of the several electoral colleges:
Key: A. G. Washington, of Virginia.
B. John Adams, of Massa'tts.
C. George Clinton, of New York.
D. Thos. Jefferson, of Virginia
E. Aaron Burr, of New York.
----------+------------------------+-----+-----+-----+-----+------
Number of | | | | | |
Electors | STATES. | | | | |
from each | | A. | B. | C. | D. | E.
State. | | | | | |
----------+------------------------+-----+-----+-----+-----+------
6 | New Hampshire, | 6 | 6 | | |
16 | Massachusetts, | 16 | 16 | | |
4 | Rhode Island, | 4 | 4 | | |
9 | Connecticut, | 9 | 9 | | |
3 | Vermont, | 3 | 3 | | |
12 | New York, | 12 | | 12 | |
7 | New Jersey, | 7 | 7 | | |
15 | Pennsylvania, | 15 | 14 | 1 | |
3 | Delaware, | 3 | 3 | | |
8 | Maryland, | 8 | 8 | | |
21 | Virginia, | 21 | | 21 | |
4 | Kentucky, | 4 | | | 4 |
12 | North Carolina, | 12 | | 12 | |
8 | South Carolina, | 8 | 7 | | | 1
4 | Georgia, | 4 | | 4 | |
----------+------------------------+-----+-----+-----+-----+------
132 | Whole No. of electors, | 132 | 77 | 50 | 4 | 1
| Majority, 67 | | | | |
_Difficulties with France._--The rëelection of Washington may be justly
considered as among the most signal favors conferred on the American
people. A revolution in France was in progress, remarkable for the
political changes it was affecting and the sanguinary scenes which
marked it. Monarchy had been abolished, Louis XVI. had fallen by the
guillotine, a republic had been proclaimed, and the national convention
had made proclamation of war against England, Holland, and Spain.
It was not unnatural that a people, who had themselves just thrown off
the yoke, and were beginning to taste the sweets of liberty, as was
the case with the Americans, should deeply sympathize with a nation
which was engaged in a similar struggle for independence. From the
commencement of the French Revolution, in 1789, not only the
Americans, but the friends of liberty throughout the world, were full
of hope that the political condition of France might thereby be
improved. And as that revolution progressed, the interest deepened;
and when, at length, the Republic was proclaimed, "the affection of
the American nation to its ancient ally, became devotion." The
enthusiasm knew scarcely any bounds, and was frequently manifested in
the most extravagant manner.
Nor was it unnatural that the French people should look to America for
her sympathy and aid, in so important an enterprise. They had, at a
former period, helped her through her struggle for independence, and
now, that they were embarked in a similar effort, could she withhold
her cöoperation and aid? They had reason to expect it, and were not
long in adopting measures to secure it.
The news of the declaration of war by France, against the powers
already named, reached the United States in April, and with this
intelligence arrived a new minister from the French republic, Mr.
Genet. Both these circumstances contributed to "increase to an
extraordinary degree the excitement already existing in favor of
France, and disposed a large portion of the nation to an actual
cöoperation with their ally against the enemy."
Washington and his associates in power were friends to liberty, and were
well-wishers to the cause of true freedom in France. But the Revolution
was assuming a selfish and sanguinary character, which betokened any
thing but the establishment of a free and enlightened constitutional
government. The most unbridled ambition for power was beginning to show
itself, and reason and religion were apparently being deprived of their
legitimate sway. In addition to this, the United States were in no
situation to embark in angry conflict with Great Britain and other
continental powers. In such a conflict it was apparently the wish of
France to involve the country, and, to a considerable portion of the
American people--arising from their prejudices against Great
Britain--such an event would not have been unacceptable. But Washington
judged more wisely for the interests of the nation; and accordingly, on
the 22d of April, issued his proclamation of _neutrality_.
This neutral and pacific policy of the American government had,
however, no apparent influence upon the new French minister. "Sanguine
in his temperament, of uncontrolled passions, excited to a degree of
insanity by the newborn ideas which raged in France, possessed of the
wildest dreams of national glory and aggrandizement--in a word, the
very incarnation of Jacobinism, he was the fittest brand which the
assembly could have selected to hurl into the magazine of political
strife. His reception at Charleston, where he landed, was well fitted
to encourage him. Public authorities, and private citizens, vied with
each other in glorifying the representative of European democracy. On
all sides he beheld the disposition he desired, and he did not delay
in profiting by it. Vessels were at once fitted out and armed, men
were enlisted, and commissions issued under her authority to cruise
against the enemies of France." Similar demonstrations of regard were
shown him in other places, as he proceeded towards Philadelphia, and
the same arrogant and haughty spirit was manifested by him. Pursuing
his design of involving the country in war, in despite of public
executive prohibition, he issued commissions to capture, and to bring
into American ports, the vessels belonging to countries with whom the
French were at war.
It is not necessary further to detail the conduct, nor the insolence of
this infatuated man. Suffice it to add, that on the meeting of congress,
December, 1793, the proclamation of neutrality was approved. Soon after,
at the instance of Washington, Mr. Genet was rëcalled by the French
government, which, at the same time, disapproved of his conduct.
_Insurrection in Pennsylvania._--The summer of 1794, was signalized by
an insurrection in the western counties of Pennsylvania, commonly known
as the "whiskey insurrection." It had its origin in a dissatisfaction
with a law of congress, enacted in 1791, by which a duty was imposed
upon spirits distilled in the United States. The inhabitants of that
part of Pennsylvania were chiefly foreigners, and consequently were less
disposed to submit to the taxation necessary to the support of
government. Strong opposition to the law was early manifested, and not a
few outrages were committed upon the revenue officers while in the
discharge of their duty--such as "whipping, tarring, and branding."
In consideration of these objections, in 1791-92, congress so modified
the law, as to do away its most obnoxious features. But the law was
now turned to party purposes, and the spirit of discontent was
fostered and inflamed to an excessive degree. The consequence was,
that outrages were renewed, and the wildest anarchy prevailed.
In September, 1792, the president issued his proclamation against
unlawful combinations, and legal measures were adopted against such as
refused to pay the tax imposed, and also against the rioters. But
these measures were of no practical effect. The president's message
was disregarded, and the violence and extent of the combination
utterly prevented any enforcement of the law. The house of the
collector of Fayette and Westmoreland, was, in November, 1793, entered
at night by an armed party, and the officer forced, at the peril of
his life, to surrender his commission and books.
After many fruitless efforts to appease the malcontents, the government
decided that its officers should be protected, and the law, at all
hazards, be sustained. Accordingly, in July, a number of writs were
issued, and the marshal dispatched to serve them. In the performance of
this duty in Allegany county, he was fired upon. The following day, the
house of the inspector, General Neville, in the neighborhood of
Pittsburg, was assaulted--but the rioters were repulsed. On the 17th,
the attack was renewed, and, though defended by a detachment from the
garrison at Pittsburg, it was taken and burned. The marshal and
inspector were obliged to flee for their lives. The effect of this
transaction was electrical. The whole of western Pennsylvania was in a
blaze. All order was at an end. All law was prostrate.