← Life and Times of Washington, Volume 2 Revised, Enlarged, and Enriched

III. THE PUBLIC CREDIT ESTABLISHED. 1789-1790…

Part 7 of 9 · John Frederick Schroeder and Benson John Lossing · Public domain text

About this edition

Source: Project Gutenberg e-text #8145, public domain in the United States · text not rewritten or summarized · How RedLectern is built

 

Contents (33)
  1. Opening about 1 min
  2. V. Washington, a Private Citizen. 1783-1788 under 1 min
  3. VI. Washington as President and in Retirement. 1789-1799 about 1 min
  4. X. WASHINGTON OUT-GENERALS HOWE. 1777 about 1 h 5 min
  5. XI. WASHINGTON HOLDS HOWE IN CHECK. 1777 about 45 min
  6. Chapter XII about 57 min
  7. XIII. WASHINGTON AT VALLEY FORGE. 1777, 1778 about 54 min
  8. XIV. MONMOUTH. 1778 about 28 min
  9. XV. WASHINGTON DIRECTS A DESCENT ON RHODE ISLAND. 1778 about 29 min
  10. XVI. WASHINGTON PREPARES TO CHASTISE THE INDIANS. 1778 about 22 min
  11. XVII. WASHINGTON'S OPERATIONS IN THE NORTHERN STATES. 1779 about 32 min
  12. XVIII. CAMPAIGN IN THE NORTH—ARNOLD'S TREASON. 1780 about 40 min
  13. XIX. OPERATIONS AT THE SOUTH. 1780 about 1 h 1 min
  14. XX. PREPARATIONS FOR THE CAMPAIGN. 1781 about 21 min
  15. XXI. THE CAMPAIGN AT THE SOUTH. 1781 about 26 min
  16. XXII. THE CAMPAIGN AT THE SOUTH CONCLUDED. 1781 about 18 min
  17. XXIII. WASHINGTON CAPTURES CORNWALLIS. 1781 about 39 min
  18. XXIV. CLOSE OF THE WAR. 1782-1783 about 1 h 29 min
  19. I. WASHINGTON'S RETURN TO PRIVATE LIFE. 1783-1784 about 22 min
  20. Chapter II about 1 h
  21. I. THE ELECTION. 1789 about 20 min
  22. II. THE ADMINISTRATION FORMED. 1789 about 1 h 20 min
  23. III. THE PUBLIC CREDIT ESTABLISHED. 1789-1790 about 52 min
  24. IV. THE NATIONAL BANK ESTABLISHED. 1790 about 35 min
  25. V. POLITICAL PARTIES DEVELOPED. 1791-1792 about 1 h 3 min
  26. VI. WASHINGTON INAUGURATES THE SYSTEM OF NEUTRALITY. 1793 about 1 h 1 min
  27. VII. WASHINGTON SENDS JAY TO ENGLAND. 1793-1794 about 31 min
  28. VIII. WASHINGTON QUELLS THE WESTERN INSURRECTION. 1794 about 24 min
  29. IX. WASHINGTON SIGNS JAY'S TREATY. 1794-1795 about 36 min
  30. Chapter X about 32 min
  31. XI. WASHINGTON RETIRES FROM THE PRESIDENCY. 1796-1797 about 1 h
  32. XII. WASHINGTON APPOINTED LIEUTENANT-GENERAL. 1797-1798 about 31 min
  33. XIII. LAST ILLNESS, DEATH, AND CHARACTER OF WASHINGTON. 1799 about 29 min

Continue:

III. THE PUBLIC CREDIT ESTABLISHED. 1789-1790

During the recess of Congress Washington generally visited Mount Vernon, but, after the rising of the first Congress under the constitution, his visit to New England consumed so much time that he remained in New York till Congress reassembled. His eastern tour commenced on the 15th of October, as we have already seen, and ended on the 13th of November. As Congress was to meet on the 1st of January, 1790, he had no time to visit Mount Vernon. During the short time which elapsed before that day he was very earnestly engaged in the duties of his office and in correspondence with public men on political affairs. One of his letters, addressed to the Emperor of Morocco, is curious, as showing the tact with which he accommodated his style to the comprehension of the oriental sovereign. It was written in consequence of an intimation from Mr. Chiappe, the American agent at Mogadore, that the emperor was not well pleased at receiving no acknowledgment from the government in respect to the treaty with Morocco of the 28th of June, 1786, his subsequent faithful observance of the same, as well as his good offices in favor of the Americans with the bashaws of Tunis and Tripoli. The letter is as follows:

"GREAT AND MAGNANIMOUS FRIEND:

"Since the date of the last letter which the late Congress by their President addressed to your Imperial Majesty, the United States of America have thought proper to change their government and to institute a new one, agreeably to the constitution, of which I have the honor of herewith enclosing a copy. The time necessarily employed in the arduous task and the derangements occasioned by so great, though peaceable, a revolution, will apologize and account for your Majesty's not having received those regular advices and marks of attention from the United States, which the friendship and magnanimity of your conduct toward them afforded reason to expect.

"The United States having unanimously appointed me to the supreme executive authority in this nation, your Majesty's letter of the 17th of August, 1788, which, by reason of the dissolution of the late government, remained unanswered, has been delivered to me. I have also received the letters which your Imperial Majesty has been so kind as to write, in favor of the United States, to the bashaws of Tunis and Tripoli, and I present to you the sincere acknowledgments and thanks of the United States for this important mark of your friendship for them.

"We greatly regret that the hostile disposition of those regencies toward this nation, who have never injured them, is not to be removed on terms in our power to comply with. Within our territories there are no mines either of gold or silver, and this young nation, just recovering from the waste and desolation of a long war, has not as yet had time to acquire riches by agriculture and commerce. But our soil is bountiful and our people industrious, and we have reason to flatter ourselves that we shall gradually become useful to our friends.

"The encouragement which your Majesty has been pleased generously to give to our commerce with your dominions, the punctuality with which you have caused the treaty with us to be observed, and the just and generous measures taken in the case of Captain Proctor, make a deep impression on the United States, and confirm their respect for, and attachment to, your Imperial Majesty.

"It gives me pleasure to have this opportunity of assuring your Majesty that, while I remain at the head of this nation, I shall not cease to promote every measure that may conduce to the friendship and harmony which so happily subsist between your empire and them, and shall esteem myself happy on every occasion of convincing your Majesty of the high sense which, in common with the whole nation, I entertain of the magnanimity, wisdom, and benevolence of your Majesty. In the course of the approaching winter the national Legislature, which is called by the former name of Congress, will assemble, and I shall take care that nothing be omitted that may be necessary to cause the correspondence between our countries to be maintained and conducted in a manner agreeable to your Majesty and satisfactory to all parties concerned in it.

"May the Almighty bless your Imperial Majesty--our great and magnanimous friend--with his constant guidance and protection.

"Written at the city of New York, the 1st day of December, 1789."

* * * * *

In December, 1789, Washington was requested by Mr. Joseph Willard, the president of Harvard University, to sit to Mr. Savage for his portrait, to be placed in the philosophy chamber of the university. Washington promptly replied to the letter of the president, and the portrait was painted by Mr. Savage, and deposited in the university.

On the 8th of January, 1790, the President met both houses of Congress in the Senate chamber. In his speech, which was delivered from the chair of the Vice-President, after congratulating Congress on the accession of the important State of North Carolina to the Union and on the prosperous aspect of American affairs, he proceeded to recommend certain great objects of legislation to their more especial consideration.

"Among the many interesting objects," continued the speech, "which will engage your attention, that of providing for the common defense will merit your particular regard. To be prepared for war is one of the most effectual means of preserving peace.

"A free people ought not only to be armed but disciplined, to which end a uniform and well-digested plan is requisite, and their safety and interest require that they should promote such manufactories as tend to render them independent on others for essential, particularly for military, supplies."

As connected with this subject a proper establishment for the troops which they might deem indispensable, was suggested for their mature deliberation, and the indications of a hostile temper given by several tribes of Indians, were considered as admonishing them of the necessity of being prepared to afford protection to the frontiers and to punish aggression.

The interests of the United States were declared to require that the means of keeping up their intercourse with foreign nations should be provided, and the expediency of establishing a uniform rule of naturalization was suggested.

After expressing his confidence in their attention to many improvements essential to the prosperity of the interior, the President added: "Nor am I less persuaded that you will agree with me in opinion that there is nothing which can better deserve your patronage than the promotion of science and literature. Knowledge is in every country the surest basis of public happiness. In one, in which the measures of government receive their impression so immediately from the sense of the community as in ours, it is proportionally essential. To the security of a free constitution it contributes in various ways, by convincing those who are entrusted with the public administration that every valuable end of government is best answered by the enlightened confidence of the people, and by teaching the people themselves to know and to value their own rights; to discern and provide against invasions of them; to distinguish between oppression and the necessary exercise of lawful authority--between burdens proceeding from a disregard to their convenience, and those resulting from the inevitable exigencies of society; to discriminate the spirit of liberty from that of licentiousness, cherishing the first, avoiding the last, and uniting a speedy but temperate vigilance against encroachments, with an inviolable respect to the laws.

"Whether this desirable object will be best promoted by affording aids to seminaries of learning already established by the institution of a national university or by any other expedients, will be well worthy of a place in the deliberations of the Legislature."

Addressing himself then particularly to the representatives, he said: "I saw with peculiar pleasure, at the close of the last session, the resolution entered into by you, expressive of your opinion that an adequate provision for the support of the public credit is a matter of high importance to the national honor and prosperity. In this sentiment I entirely concur, and to a perfect confidence in your best endeavors to devise such a provision as will be truly consistent with the end, I add an equal reliance on the cheerful cooperation of the other branch of the Legislature. It would be superfluous to specify inducements to a measure in which the character and permanent interests of the United States are so obviously and so deeply concerned, and which has received so explicit a sanction from your declaration."

Addressing himself again to both houses he observed that the estimates and papers respecting the objects particularly recommended to their attention would be laid before them, and concluded with saying: "The welfare of our country is the great object to which our cares and efforts ought to be directed, and I shall derive great satisfaction from a cooperation with you in the pleasing though arduous task of insuring to our fellow-citizens the blessings which they have a right to expect from a free, efficient, and equal government."

The answers of both houses were indicative of the harmony which subsisted between the executive and legislative departments.

Congress had been so occupied during its first session with those bills which were necessary to bring the new system into full operation and to create an immediate revenue, that some measures which possessed great and pressing claims to immediate attention had been unavoidably deferred. The neglect under which the creditors of the public had been permitted to languish could not fail to cast an imputation on the American republic, and had been sincerely lamented by the wisest among those who administered the former government. The power to comply substantially with the engagements of the United States being at length conferred on those who were bound by them, it was confidently expected by the friends of the constitution that their country would retrieve its reputation, and that its fame would no longer be tarnished with the blots which stain a faithless people.

On the 9th of January (1790), a letter from Mr. Hamilton, the Secretary of the Treasury, to the Speaker of the House of Representatives, was read, stating that, in obedience to the resolution of the 21st of September (1789), he had prepared a plan for the support of public credit, which he was ready to report when the House should be pleased to receive it, and, after a short debate in which the personal attendance of the secretary, for the purpose of making explanations, was urged by some and opposed by others, it was resolved that the report should be received in writing on the succeeding Thursday.

Availing himself of the latitude afforded by the terms of the resolution under which he acted, the secretary had introduced into his report an able and comprehensive argument elucidating and supporting the principles it contained. After displaying, with strength and perspicuity, the justice and the policy of an adequate provision for the public debt, he proceeded to discuss the principles on which it should be made.

"It was agreed," he said, "by all, that the foreign debt should be provided for according to the precise terms of the contract. It was to be regretted that, with respect to the domestic debt, the same unanimity of sentiment did not prevail."

The first point on which the public appeared to be divided, involved the question, "whether a discrimination ought not to be made between original holders of the public securities and present possessors by purchase." After reviewing the arguments generally urged in its support, the secretary declared himself against this discrimination. He deemed it "equally unjust and impolitic, highly injurious even to the original holders of public securities, and ruinous to public credit." To the arguments with which he enforced these opinions, he added the authority of the government of the Union. From the circular address of Congress to the States of the 26th of April, 1783, accompanying their revenue system of the 18th of the same month, passages were selected indicating, unequivocally, that in the view of that body the original creditors, and those who had become so by assignment, had equal claims upon the nation.

After reasoning at great length against a discrimination between the different creditors of the Union, the secretary proceeded to examine whether a difference ought to be permitted to remain between them and the creditors of individual States.

Both descriptions of debt were contracted for the same objects and were in the main the same. Indeed, a great part of the particular debts of the States had arisen from assumptions by them on account of the Union, and it was most equitable that there should be the same measure of retribution for all. There were many reasons, some of which were stated, for believing this would not be the case, unless the State debts should be assumed by the nation.

In addition to the injustice of favoring one class of creditors more than another which was equally meritorious, many arguments were urged in support of the policy of distributing to all with an equal hand from the same source.

After an elaborate discussion of these and some other points connected with the subject, the secretary proposed that a loan should be opened to the full amount of the debt, as well of the particular States as of the Union.

The terms to be offered were--

First. That for every $100 subscribed payable in the debt, as well interest as principal, the subscriber should be entitled to have two-thirds funded on a yearly interest of six per cent, (the capital redeemable at the pleasure of government by the payment of the principal), and to receive the other third in lands of the western territory at their then actual value. Or,

Secondly. To have the whole sum funded at a yearly interest of four per cent., irredeemable by any payment exceeding five dollars per annum both on account of principal and interest, and to receive as a compensation for the reduction of interest, fifteen dollars and eighty cents, payable in lands as in the preceding case. Or,

Thirdly. To have sixty-six and two-thirds of a dollar funded at a yearly interest of six per cent., irredeemable also by any payment exceeding four dollars and two-thirds of a dollar per annum on account both of principal and interest, and to have at the end of ten years twenty-six dollars and eighty-eight cents funded at the like interest and rate of redemption.

In addition to these propositions, the creditors were to have an option of vesting their money in annuities on different plans, and it was also recommended to open a loan at five per cent, for ten millions of dollars, payable one-half in specie and the other half in the debt, irredeemable by any payment exceeding six dollars per annum both of principal and interest.

By way of experiment, a tontine, on principles stated in the report, was also suggested.

The secretary was restrained from proposing to fund the whole debt immediately at the current rate of interest, by the opinion, "that although such a provision might not exceed the abilities of the country, it would require the extension of taxation to a degree and to objects which the true interests of the creditors themselves would forbid. It was therefore to be hoped and expected that they would cheerfully concur in such modifications of their claims, on fair and equitable principles as would facilitate to the government an arrangement substantial, durable, and satisfactory to the community. Exigencies might ere long arise which would call for resources greatly beyond what was now deemed sufficient for the current service, and should the faculties of the country be exhausted or even strained to provide for the public debt, there could be less reliance on the sacredness of the provision.

"But while he yielded to the force of these considerations, he did not lose sight of those fundamental principles of good faith which dictate that every practicable exertion ought to be made, scrupulously to fulfill the engagements of government; that no change in the rights of its creditors ought to be attempted without their voluntary consent, and that this consent ought to be voluntary in fact, as well as in name. Consequently, that every proposal of a change ought to be in the shape of an appeal to their reason and to their interest, not to their necessities. To this end, it was requisite that a fair equivalent should be offered for what might be asked to be given up and unquestionable security for the remainder." This fair equivalent for the proposed reduction of interest was, he thought, offered in the relinquishment of the power to redeem the whole debt at pleasure.

That a free judgment might be exercised by the holders of public securities in accepting or rejecting the terms offered by the government, provision was made in the report for paying to nonsubscribing creditors a dividend of the surplus which should remain in the treasury after paying the interest of the proposed loans; but, as the funds immediately to be provided were calculated to produce only four per cent. on the entire debt, the dividend, for the present, was not to exceed that rate of interest.

To enable the treasury to support this increased demand upon it, an augmentation of the duties on imported wines, spirits, tea, and coffee was proposed and a duty on homemade spirits was also recommended.

This celebrated report, which has been alike the fruitful theme of extravagant praise and bitter censure, merits the more attention, because the first regular and systematic opposition to the principles on which the affairs of the Union were administered, originated in the measures which were founded on it.

On the 28th of January (1790), says Marshall, this subject was taken up, and, after some animadversions on the speculations in the public debt to which the report, it was said, had already given birth, the business was postponed until the 8th of February, when it was again brought forward.

Several resolutions affirmative of the principles contained in the report, were moved by Mr. Fitzsimmons. To the first, which respected a provision for the foreign debt, the House agreed without a dissenting voice. The second, in favor of appropriating permanent funds for payment of the interest on the domestic debt and for the gradual redemption of the principal, gave rise to a very animated debate. [1]

Mr. Jackson declared his hostility to funding systems generally. To prove their pernicious influence, he appealed to the histories of Florence, Genoa, and Great Britain, and contending that the subject ought to be deferred until North Carolina should be represented, moved that the committee should rise. This question being decided in the negative, Mr. Scott declared the opinion that the United States were not bound to pay the domestic creditors the sums specified in the certificates of debts in their possession. He supported this opinion by urging, not that the public had received less value than was expressed on the face of the paper which had been issued, but that those to whom it had been delivered by parting with it at two shillings and sixpence in the pound, had themselves fixed the value of their claims, and had manifested their willingness to add to their other sacrifices this deduction from their demand upon the nation. He therefore moved to amend the resolution before the committee so as to require a resettlement of the debt.

The amendment was opposed by Mr. Boudinot, Mr. Lawrence, Mr. Ames, Mr. Sherman, Mr. Hartley, and Mr. Goodhue. They stated at large the terms on which the debt had been contracted, and urged the confidence which the creditors had a right to place in the government for its discharge according to settlements already made, and acknowledgments already given. The idea that the legislative body could diminish an ascertained debt was reprobated with great force, as being at the same time unjust, impolitic, and subversive of every principle on which public contracts are founded. The evidences of debt possessed by the creditors of the United States were considered as public bonds, for the redemption of which the property and the labor of the people were pledged.

After the debate had been protracted to some length, the question was taken on Mr. Scott's amendment, and it passed in the negative.

Mr. Madison then rose, and, in an eloquent speech, replete with argument, proposed an amendment to the resolution, the effect of which was to discriminate between the public creditors, so as to pay the present holder of assignable paper the highest price it had borne in the market, and give the residue to the person with whom the debt was originally contracted. Where the original creditor had never parted with his claim, he was to receive the whole sum acknowledged to be due on the face of the certificate.

This motion was supported by Mr. Jackson, Mr. White, Mr. Moore, Mr. Page, Mr. Stone, Mr. Scott, and Mr. Seney.

It was opposed with great earnestness and strength of argument by Mr. Sedgewic, Mr. Lawrence, Mr. Smith, of South Carolina, Mr. Ames, Mr. Gerry, Mr. Boudinot, Mr. Wadsworth, Mr. Goodhue, Mr. Hartley, Mr. Bland, Mr. Benson, Mr. Burke, and Mr. Livermore.

The argument was ably supported on both sides, was long, animated, and interesting. At length the question was put and the amendment was rejected by a great majority.

This discussion deeply engaged the public attention. The proposition was new and interesting. That the debt ought to be diminished for the public advantage, was an opinion which had frequently been advanced, and was maintained by many. But a reduction from the claims of its present holders for the benefit of those who had sold their rights, was a measure which saved nothing to the public purse, and was therefore recommended only by considerations, the operation of which can never be very extensive. Against it were arrayed all who had made purchases, and a great majority of those who conceived that sound policy and honest dealing require a literal observance of public contracts.

Although the decision of Congress against a discrimination in favor of the original creditor produced no considerable sensation, the determination on that part of the secretary's report which was the succeeding subject of deliberation, affecting political interests and powers which are never to be approached without danger, seemed to unchain all those fierce passions which a high respect for the government, and for those who administered it, had in a great measure restrained.

The manner in which the several States entered into and conducted the war of the Revolution, is well known. Acting in some respects separately, and in others conjointly, for the attainment of a common object, their resources were exerted, sometimes under the authority of Congress, sometimes under the authority of the local government, to repel the enemy wherever he appeared. The debt incurred in support of the war was, therefore, in the first instance, contracted partly by Congress and partly by the States. When the system of requisitions was adopted, the transactions of the Union were carried on almost entirely through the agency of the States, and, when the measure of compensating the army for the depreciation of their pay became necessary, this burden, under the recommendation of Congress, was assumed by the respective States. Some had funded this debt, and paid the interest upon it. Others had made no provision for the interest; but all, by taxes, paper money, or purchase, had in some measure reduced the principal. In their exertions some degree of inequality had obtained, and they looked anxiously to a settlement of accounts, for the ascertainment of claims which each supposed itself to have upon the Union. Measures to effect this object had been taken by the former government, but they were slow in their progress, and intrinsic difficulties were found in the thing itself, not easily to be overcome.

Hamilton proposed to assume these debts and to fund them in common with that which continued to be the proper debt of the Union.

The resolution which comprehended this principle of the report was vigorously opposed.

It was contended that the general government would acquire an undue influence, and that the State governments would be annihilated by the measure. Not only would all the influence of the public creditors be thrown into the scale of the former, but it would absorb all the powers of taxation, and leave to the latter only the shadow of a government. This would probably terminate in rendering the State governments useless, and would destroy the system so recently established. The Union, it was said, had been compared to a rope of sand, but gentlemen were cautioned not to push things to the opposite extreme. The attempt to strengthen it might be unsuccessful, and the cord might be strained until it should break.

The constitutional authority of the Federal government to assume the debts of the States was questioned. Its powers, it was said, were specified, and this was not among them.

The policy of the measure, as it affected merely the government of the Union, was controverted, and its justice was arraigned.

On the ground of policy, it was objected that the assumption would impose on the United States a burden, the weight of which was unascertained, and which would require an extension of taxation beyond the limits which prudence would prescribe. An attempt to raise the impost would be dangerous, and the excise added to it would not produce funds adequate to the object. A tax on real estate must be resorted to, objections to which had been made in every part of the Union. It would be more advisable to leave this source of revenue untouched in the hands of the State governments, who could apply to it with more facility, with a better understanding of the subject, and with less dissatisfaction to individuals, than could possibly be done by the government of the United States.

There existed no necessity for taking up this burden. The State creditors had not required it. There was no petition from them upon the subject. There was not only no application from the States, but there was reason to believe that they were seriously opposed to the measure. Many of them would certainly view it with a jealous--a jaundiced eye. The convention of North Carolina which adopted the constitution had proposed, as an amendment to it, to deprive Congress of the power of interfering between the respective States and their creditors, and there could be no obligation to assume more than the balances which on a final settlement would be found due to creditor States.

That the debt by being thus accumulated would be perpetuated, was also an evil of real magnitude. Many of the States had already made considerable progress in extinguishing their debts, and the process might certainly be carried on more rapidly by them than by the Union. A public debt seemed to be considered by some as a public blessing, but to this doctrine they were not converts. If, as they believed, a public debt was a public evil, it would be enormously increased by adding those of the States to that of the Union.

The measure was unwise, too, as it would affect public credit. Such an augmentation of the debt must inevitably depreciate its value, since it was the character of paper, whatever denomination it might assume, to diminish in value in proportion to the quantity in circulation.

It would also increase an evil which was already sensibly felt. The State debts, when assumed by the continent, would, as that of the Union had already done, accumulate in large cities; and the dissatisfaction excited by the payment of taxes would be increased by perceiving that the money raised from the people flowed into the hands of a few individuals. Still greater mischief was to be apprehended. A great part of this additional debt would go into the hands of foreigners, and the United States would be heavily burdened to pay an interest which could not be expected to remain in the country.

The measure was unjust, because it was burdening those States which had taxed themselves highly to discharge the claims of their creditors with the debts of those which had not made the same exertions. It would delay the settlement of accounts between the individual States and the United States, and the supporters of the measure were openly charged with intending to defeat that settlement.

It was also said that in its execution the scheme would be found extremely embarrassing, perhaps impracticable. The case of a partial accession to the measure by the creditors, a case which would probably occur, presented a difficulty for which no provision was made, and of which no solution had been given. Should the creditors in some States come into the system, and those in others refuse to change their security, the government would be involved in perplexities from which no means of extricating itself had been shown. Nor would it be practicable to discriminate between the debts contracted for general and for local objects.

In the course of the debate severe allusions were made to the conduct of particular States, and the opinions advanced in favor of the measure were ascribed to local interests.

In support of the assumption, the debts of the States were traced to their origin. America, it was said, had engaged in a war the object of which was equally interesting to every part of the Union. It was not the war of a particular State, but of the United States. It was not the liberty and independence of a part, but of the whole, for which they had contended, and which they had acquired. The cause was a common cause. As brethren, the American people had consented to hazard property and life in its defense. All the sums expended in the attainment of this great object, whatever might be the authority under which they were raised or appropriated, conduced to the same end. Troops were raised, and military stores purchased, before Congress assumed the command of the army or the control of the war. The ammunition which repulsed the enemy at Bunker's Hill was purchased by Massachusetts, and formed a part of the debt of that State.

Nothing could be more erroneous than the principle which had been assumed in argument, that the holders of securities issued by individual States were to be considered merely as State creditors, as if the debt had been contracted on account of the particular State. It was contracted on account of the Union, in that common cause in which all were equally interested.

From the complex nature of the political system which had been adopted in America, the war was, in a great measure, carried on through the agency of the State governments, and the debts were, in truth, the debts of the Union, for which the States had made themselves responsible. Except the civil list, the whole State expenditure was in the prosecution of the war, and the State taxes had undeniably exceeded the provision for their civil list. The foundation for the several classes of the debt was reviewed in detail, and it was affirmed to be proved from the review, and from the books in the public offices, that, in its origin, a great part of it, even in form, and the whole, in fact, was equitably due from the continent. The States individually possessing all the resources of the nation, became responsible to certain descriptions of the public creditors. But they were the agents of the continent in contracting the debt, and its distribution among them for payment arose from the division of political power which existed under the old confederation. A new arrangement of the system had taken place, and a power over the resources of the nation was conferred on the general government. With the funds the debt also ought to be assumed. This investigation of its origin demonstrated that the assumption was not the creation of a new debt, but the reacknowledgment of liability for an old one, the payment of which had devolved on those members of the system who, at the time, were alone capable of paying it. And thence was inferred not only the justice of the measure, but a complete refutation of the arguments drawn from the constitution. If, in point of fact, the debt was in its origin continental and had been transferred to the States for greater facility of payment, there could be no constitutional objection to restoring its original and real character.

The great powers of war, of taxation, and of borrowing money, which were vested in Congress to pay the debts and provide for the common defense and general welfare of the United States, comprised that in question. There could be no more doubt of their right to charge themselves with the payment of a debt contracted in the past war, than to borrow money for the prosecution of a future war. The impolicy of leaving the public creditors to receive payment from different sources was also strongly pressed, and the jealousy which would exist between the creditors of the Union and of the States was considered as a powerful argument in favor of giving them one common interest. This jealousy, it was feared, might be carried so far as even to create an opposition to the laws of the Union.

If the State should provide for their creditors, the same sum of money must be collected from the people as would be required if the debt should be assumed, and it would probably be collected in a manner more burdensome than if one uniform system should be established. If all should not make such provision, it would be unjust to leave the soldier of one State unpaid, while the services of the man who fought by his side were amply compensated, and, after having assumed the funds, it would dishonor the general government to permit a creditor, for services rendered or property advanced for the continent, to remain unsatisfied, because his claim had been transferred to the State at a time when the State alone possessed the means of payment. By the injured and neglected creditor such an arrangement might justly be considered as a disreputable artifice.

Instead of delaying, it was believed to be a measure which would facilitate the settlement of accounts between the States. Its advocates declared that they did not entertain and never had entertained any wish to procrastinate a settlement. On the contrary it was greatly desired by them. They had themselves brought forward propositions for that purpose, and they invited their adversaries to assist in improving the plan which had been introduced.

The settlement between the States, it was said, either would or would not be made. Should it ever take place, it would remedy any inequalities which might grow out of the assumption. Should it never take place, the justice of the measure became the more apparent. That the burdens in support of a common war, which from various causes had devolved unequally on the States, ought to be apportioned among them, was a truth too clear to be controverted, and this, if the settlement should never be accomplished, could be effected only by the measure now proposed. Indeed, in any event, it would be the only certain, as well as only eligible plan. For how were the debtor States to be compelled to pay the balances which should be found against them?

If the measure was recommended by considerations which rendered its ultimate adoption inevitable, the present was clearly preferable to any future time. It was desirable immediately to quiet the minds of the public creditors by assuring them that justice would be done, to simplify the forms of public debt, and to put an end to that speculation which had been so much reprobated and which could be terminated only by giving the debt a real and permanent value.

That the assumption would impair the just influence of the States was controverted with great strength of argument. The diffusive representation in the State Legislatures, the intimate connection between the representative and his constituents, the influence of the State Legislatures over the members of one branch of the national Legislature, the nature of the powers exercise by the State governments, which perpetually presented them to the people in a point of view calculated to lay hold of the public affections, were guarantees that the States would retain their due weight in the political system and that a debt was not necessary to the solidity or duration of their power.

But the argument, it was said, proved too much. If a debt was now essential to the preservation of State authority it would always be so. It must therefore never be extinguished, but must be perpetuated in order to secure the existence of the State governments. If, for this purpose, it was indispensable that the expenses of the Revolutionary War should be borne by the States, it would not be less indispensable that the expenses of future wars should be borne in the same manner. Either the argument was unfounded or the constitution was wrong, and the powers of the sword and the purse ought not to have been conferred on the government of the Union. Whatever speculative opinions might be entertained on this point, they were to administer the government according to the principles of the constitution as it was framed. But, it was added, if so much power followed the assumption as the objection implies, is it not time to ask--is it safe to forbear assuming? If the power is so dangerous it will be so when exercised by the States. If assuming tends to consolidation, is the reverse, tending to disunion, a less weighty objection? If it is answered that the non-assumption will not necessarily tend to disunion, neither, it may be replied, does the assumption necessarily tend to consolidation.

It was not admitted that the assumption would tend to perpetuate the debt. It could not be presumed that the general government would be less willing than the local governments to discharge it; nor could it be presumed that the means were less attainable by the former than the latter.

It was not contended that a public debt was a public blessing. Whether a debt was to be preferred to no debt was not the question. The debt was already contracted, and the question so far as policy might be consulted, was, whether it was more for the public advantage to give it such a form as would render it applicable to the purposes of a circulating medium, or to leave it a mere subject of speculation, incapable of being employed to any useful purpose. The debt was admitted to be an evil, but it was an evil from which, if wisely modified, some benefit might be extracted, and which, in its present state, could have only a mischievous operation.

If the debt should be placed on adequate funds, its operation on public credit could not be pernicious; in its present precarious condition, there was much more to be apprehended in that respect.

To the objection that it would accumulate in large cities, it was answered it would be a moneyed capital, and would be held by those who chose to place money at interest, but by funding the debt the present possessors would be enabled to part with it at its nominal value, instead of selling it at its present current rate. If it should center in the hands of foreigners, the sooner it was appreciated to its proper standard, the greater quantity of specie would its transfer bring into the United States.

To the injustice of charging those States which had made great exertions for the payment of their debts with the burden properly belonging to those which had not made such exertions, it was answered that every State must be considered as having exerted itself to the utmost of its resources, and that if it could not or would not make provision for creditors to whom the Union was equitably bound, the argument in favor of an assumption was the stronger.

The arguments drawn from local interests were repelled and retorted, and a great degree of irritation was excited on both sides.

After a very animated discussion of several days, the question was taken, and the resolution was carried by a small majority. Soon after this decision, while the subject was pending before the House, the delegates from North Carolina took their seats, and changed the strength of parties. By a majority of two voices, the resolution was recommitted, and, after a long and ardent debate, was negatived by the same majority.

This proposition continued to be supported with a degree of earnestness which its opponents termed pertinacious, but not a single opinion was changed. It was brought forward in the new and less exceptionable form of assuming specific sums from each State. Under this modification of the principle, the extraordinary contributions of particular States during the war, and their exertions since the peace, might be regarded, and the objections to the measure, drawn from the uncertainty of the sum to be assumed, would be removed. But these alterations produced no change of sentiment, and the bill was sent up to the Senate with a provision for those creditors only whose certificates of debt purported to be payable by the Union.

In this state of things the measure is understood to have derived aid from another, which was of a nature strongly to interest particular parts of the Union.

From the month of June, 1783, when Congress was driven from Philadelphia by the mutiny of a part of the Pennsylvania line, the necessity of selecting some place for a permanent residence, in which the government of the Union might exercise sufficient authority to protect itself from violence and insult, had been generally acknowledged. Scarcely any subject had occupied more time, or had more agitated the members of the former Congress than this.

In December, 1784, an ordinance was passed for appointing commissioners to purchase land on the Delaware, in the neighborhood of its falls, and to erect thereon the necessary public buildings for the reception of Congress and the officers of government; but the southern interest had been sufficiently strong to arrest the execution of this ordinance by preventing an appropriation of funds, which required the assent of nine States. Under the existing government, this subject had received the early attention of Congress, and many different situations, from the Delaware to the Potomac inclusive, had been earnestly supported, but a majority of both houses had not concurred in favor of any one place. With as little success, attempts had been made to change the temporary residence of Congress. Although New York was obviously too far to the east, so many conflicting interests were brought into operation whenever the subject was touched, that no motion designating a more central place could succeed. At length, a compact respecting the temporary and permanent seat of government was entered into between the friends of Philadelphia and the Potomac, stipulating that Congress should adjourn to and hold its sessions in Philadelphia for ten years, during which time buildings for the accommodation of the government should be erected at some place on the Potomac, to which the government should remove at the expiration of the term. This compact having united the representatives of Pennsylvania and Delaware with the friends of the Potomac, in favor both of the temporary and permanent residence which had been agreed on between them, a majority was produced in favor of the two situations, and a bill which was brought into the Senate in conformity with this previous arrangement, passed both houses by small majorities. This act was immediately followed by an amendment to the bill then depending before the Senate for funding the debt of the Union. The amendment was similar in principle to that which had been unsuccessfully proposed in the House of Representatives. By its provisions, $21,500,000 of the State debts were assumed in specified proportions, and it was particularly enacted that no certificate should be received from a State creditor which could be "ascertained to have been issued for any purpose other than compensations and expenditures for services or supplies toward the prosecution of the late war and the defense of the United States, or of some part thereof, during the same."

When the question was taken in the House of Representatives on this amendment two members, representing districts on the Potomac, who, in all the previous stages of the business, had voted against the assumption, declared themselves in its favor, and thus the majority was changed. [2]

Thus was a measure carried which was supported and opposed with a degree of zeal and earnestness not often manifested, and which furnished presages, not to be mistaken, that the spirit with which the opposite opinions had been maintained, would not yield, contentedly, to the decision of a bare majority. This measure has constituted one of the great grounds of accusation against the first administration of the general government, and it is fair to acknowledge that though, in its progress, it derived no aid from the President, whose opinion remained in his own bosom, it received the full approbation of his judgment.

A bill at length passed both houses, funding the debt upon principles which lessened considerably the weight of the public burdens and was entirely satisfactory to the public creditors. The proceeds of the sales of the lands lying in the western territory and, by a subsequent act of the same session, the surplus product of the revenue, after satisfying the appropriations which were charged upon it with the addition of $2,000,000, which the President was authorized to borrow at 5 per cent., constituted a sinking fund to be applied to the reduction of the debt.

The effect of this measure was great and rapid. The public paper suddenly rose and was for a short time above par. The immense wealth which individuals acquired by this unexpected appreciation could not be viewed with indifference. Those who participated in its advantages regarded the author of a system to which they were so greatly indebted, with an enthusiasm of attachment to which scarcely any limits were assigned. To many others this adventitious collection of wealth in particular hands was a subject rather of chagrin than of pleasure, and the reputation which the success of his plans gave to the Secretary of the Treasury was not contemplated with unconcern. As if the debt had been created by the existing government, not by a war which gave liberty and independence to the United States, its being funded was ascribed by many, not to a sense of justice and to a liberal and enlightened policy, but to the desire of bestowing on the government an artificial strength, by the creation of a moneyed interest which would be subservient to its will. The effects produced by giving the debt a permanent value justified the predictions of those whose anticipations had been most favorable. The sudden increase of moneyed capital derived from it invigorated commerce and gave a new stimulus to agriculture.

About this time there was a great and visible improvement in the circumstances of the people. Although the funding system was certainly not inoperative in producing this improvement it cannot be justly ascribed to any single cause. Progressive industry had gradually repaired the losses sustained by the war, and the influence of the constitution on habits of thinking and acting, though silent, was considerable. In depriving the States of the power to impair the obligation of contracts or to make anything but gold and silver a tender in payment of debts, the conviction was impressed on that portion of society which had looked to the government for relief from embarrassment that personal exertions alone could free them from difficulties, and an increased degree of industry and economy was the natural consequence of this opinion. [3]

Various other matters besides those already noticed, occupied the attention of Congress during this laborious session. The question of the slave trade was brought up by a petition from the Quakers in Pennsylvania, Delaware, and other States, and the venerable Dr. Franklin, as president of the Pennsylvania Society for Promoting the Abolition of Slavery, sent in a memorial, early in February, asking the serious attention of Congress to the importance and duty of extending to the negroes the blessings of freedom. The subject was discussed at great length and with much warmth on both sides, and toward the close of March it was resolved, "That Congress have no authority to interfere in the emancipation of slaves, or in the treatment of them within any of the States." Laws for the naturalization of aliens, after two years' residence, for the patenting of useful inventions, and for securing to authors the copyright of their works; and others, regulating the mercantile marine of the Union, in respect to the seamen engaged in it; and forming a groundwork for a criminal code; for the ordering of what was called "the military establishment," only 1,216 rank and file; and for arranging the means of intercourse with the Indians in respect to trade and the acquisition of their hunting-grounds, and with European governments for the larger commerce which required the superintendence of resident ministers--these were duly considered and framed. Much other business was done, such as voting for the public service, under the heads of the civil list, pensions for revolutionary services, the military establishment, lighthouses, embassies, and outstanding debts, the moderate sum of about $725,000.

Both houses, having returned thanks to the corporation of the city of New York, "for the elegant and convenient accommodations furnished the Congress of the United States," adjourned on the 12th of August (1790), to meet again in December, in the city of Philadelphia.

Washington's old and valued friend, Dr. Franklin, after painful and protracted sufferings, closed a life of four-score and four years on the 17th of April, 1790. He was buried in the cemetery of Christ Church, Philadelphia, and his funeral was attended by more than 20,000 of his fellow-citizens. Congress resolved to wear the customary badge of mourning for one month, "as a mark of veneration due to the memory of a citizen, whose native genius was not more an ornament to human nature than his various exertions of it have been precious to science, to freedom, and to his country." In the National Assembly of France, Mirabeau eloquently dilated in praise of the illustrious deceased, and Lafayette seconded the motion for a decree, ordering the members to wear the usual badge of mourning for three days, and there was not a land blessed with the light of civilization which did not lament his death and pour forth expressions of sorrow for the loss which not only America, but the world had sustained.

An act was passed by Congress to accept the cession of the claims of the State of North Carolina, to a certain district of western territory, and on the 20th of May, provision was made for its government, under the title of "The Territory of the United States south of the river Ohio."

On the 29th of May, 1790, Rhode Island, having become somewhat more alive to her true interests and to the ill results which must certainly follow her exclusion from the Union, adopted the constitution and cast in her lot with the sister States for the great future which was opening before them all.

A treaty of peace was concluded in August of this year with the Creek Indians which restored tranquility to the people of Georgia. The pacific overtures made to the Indians of the Wabash and the Miamis had not been equally successful. The western frontiers were still exposed to their incursions, and there was much reason to apprehend that the people of Kentucky and of the western counties of the middle States could only be relieved from the horrors of savage warfare by an exertion of the military strength of the Union. In the opinion of the President, the emergency required the immediate employment of a force competent to the object and which should carry terror and destruction into the heart of the hostile settlements. The people of the West, however, declared their opinion in favor of desultory military expeditions, and Congress indulged their wishes. The desire of the executive for a military establishment equal to the exigency was not regarded and the distresses of the frontier inhabitants therefore still continued.

The conduct of Spain in relation to the disputed boundary, and its pretensions to the navigation of the Mississippi, was such as to give ground to fear that its dispositions toward the United States were unfriendly. Between the United States and England the nonexecution of several articles of the treaty of peace still furnished matter for reciprocal crimination which there was the more difficulty in removing because there was no diplomatic intercourse maintained between them. Under the old government, Mr. Adams' mission had been treated with neglect, and the new administration was not disposed to subject itself to a similar mark of disrespect. Mr. Gouverneur Morris was instructed, as an informal agent to the British government, to sound its views respecting amicable and permanent arrangements of the matters in dispute. But Mr. Morris remarked, "that there never was, perhaps, a moment in which this country (Britain) felt herself greater, and, consequently, it is the most unfavorable moment to obtain advantageous terms from her in any bargain." He conducted his mission with ability and address, but was unable to bring it to a satisfactory conclusion. The communications laid before the American government at the same time by Major Beckwith, an English gentlemen, who had come in an informal manner to learn the dispositions of the American government towards England and Spain, between which a rupture was expected, gave Washington an insight of the object of the delays which had been practiced with Mr. Morris. He was persuaded that a disposition existed in the cabinet of London to retain things in their actual situation until the intentions of the American government should be ascertained with respect to the war supposed to be approaching. If America would make a common cause with Great Britain against Spain, the way would be smoothed to the attainment of all their objects, but if America should incline toward Spain, no adjustment of the points of difference between the two nations would be made. He therefore determined to hold himself free to pursue without reproach, in the expected war, such a course as the interest and honor of the United States might dictate. The want of official authenticity in the communications of Mr. Beckwith was, therefore, signified to that gentleman as a reason for reserve on the part of the government and the powers given to Mr. Morris were withdrawn. It was determined that things should remain in their actual situation until a change of circumstances should require a change of conduct. Scarcely had this resolution been adopted when the dispute between Britain and Spain was adjusted, and thus both the fear of inconveniences, and the hope of advantages which might result to America from war between the two powers, were terminated.

By his incessant application to public business and the consequent change of active for sedentary habits, the constitution of the President seemed much impaired and during the second session of Congress he had, for the second time since entering upon the duties of his office, been attacked by a severe disease, which reduced him to the brink of the grave. Exercise, and a temporary relief from the cares of office, being essential to the restoration of his health, he determined for the short interval afforded by the recess of the Legislature to retire from the fatigues of public life to the tranquil shades of Mount Vernon. Previously, however, he made a visit to Rhode Island, which, not having been a member of the Union at the time of his late tour through New England, had not been visited by him at that time.

His final departure from New York was not less affecting than his arrival had been, when he came to assume the reins of government. "It was always his habit," says Custis in his "Recollections," "to endeavor to avoid the manifestations of affection and gratitude that met him everywhere. He strove in vain--he was closely watched and the people would have their way. He wished to slip off unobserved from New York and thus steal a march upon his old companions in arms. But there were too many of the dear glorious old veterans of the Revolution at that time of day in and near New York to render such an escape possible.

"The baggage had all been packed up; the horses, carriages, and servants ordered to be over the ferry to Paulus Hook by daybreak and nothing was wanting for departure but the dawn. The lights were yet burning, when the President came into the room where his family were assembled, evidently much pleased in the belief that all was right, when, immediately under the windows, the band of the artillery struck up Washington's March. 'There,' he exclaimed, 'it's all over, we are found out. Well, well, they must have their own way.' New York soon after appeared as if taken by storm--troops and persons of all descriptions hurrying down Broadway toward the place of embarkation, all anxious to take a last look on him whom so many could never expect to see again.

"The embarkation was delayed until all the complimentary arrangements were completed. The President, after taking leave of many dear and cherished friends, and many an old companion in arms, stepped into the barge that was to convey him from New York forever. The coxswain gave the word 'let fall;' the spray from the oars sparkled in the morning sunbeams; the bowman shoved off from the pier, and, as the barge swung round to the tide, Washington rose, uncovered, in the stern, to bid adieu to the masses assembled on the shore; he waved his hat, and, in a voice tremulous from emotion, pronounced--Farewell. It may be supposed that Major Bauman, who commanded the artillery on this interesting occasion, who was first captain of Lamb's regiment, and a favorite officer of the war of the Revolution, would, when about to pay his last respects to his beloved commander, load his pieces with something more than mere blank cartridges. But ah! the thunders of the cannon were completely hushed when the mighty shout of the people arose that responded to the farewell of Washington. Pure from the heart it came, right up to Heaven it went, to call down a blessing upon the Father of his Country.

"The barge had scarcely gained the middle of the Hudson when the trumpets were heard at Paulus Hook, where the Governor and the chivalry of Jersey were in waiting to welcome the chief to those well-remembered shores. Escorts of cavalry relieved each other throughout the whole route up to the Pennsylvania line; every village, and even hamlet, turned out its population to greet with cordial welcome the man upon whom all eyes were fixed and in whom all hearts rejoiced.

"What must have been the recollections that crowded on the mind of Washington during this triumphant progress? Newark, Brunswick, Princeton, Trenton! What a contrast between the glorious burst of sunshine that now illumined and made glad everything around these memorable spots, with the gloomy and desolate remembrances of '76! Then his country's champion, with the wreck of a shattered host, was flying before a victorious and well-appointed foe, while all around him was shrouded in the darkness of despair; now, in his glorious progress over the self-same route, his firm footstep presses upon the soil of an infant empire, reposing in the joys of peace, independence, and happiness.

"Among the many who swelled his triumph, the most endeared to the heart of the chief were the old associates of his toils, his fortunes, and his fame. Many of the Revolutionary veterans were living in 1790, and, by their presence, gave a dignified tone and character to all public assemblages; and when you saw a peculiarly fine-looking soldier in those old days, and would ask: 'To what corps of the American army did you belong?' drawing himself up to his full height, with a martial air, and back of the hand thrown up to his forehead, the veteran would reply: 'Life Guard, your honor.'

"And proud and happy were these veterans in again beholding their own good Lady Washington. Greatly was she beloved in the army. Her many intercessions with the chief for the pardon of offenders--her kindness to the sick and wounded--all caused her annual arrival in camp to be hailed as an event that would serve to dissipate the gloom of the winter quarters.

"Arrived at the line, the Jersey escort was relieved by the cavalry of Pennsylvania, and, when near to Philadelphia, the President was met by Governor Mifflin and a brilliant cortege of officers, and escorted by a squadron of horse to the city. Conspicuous among the Governors suite, as well for his martial bearing as for the manly beauty of his person, was General Walter Stewart, a son of Erin, and a gallant and distinguished officer of the Pennsylvania line. To Stewart, as to Cadwallader, Washington was most warmly attached; indeed, those officers were among the very choicest of the contributions of Pennsylvania to the army and cause of independence. Mifflin, small in stature, was active, alert, 'every inch a soldier.' He was a patriot of great influence in Pennsylvania in the 'times that tried men's souls,' and nobly did he exert that influence in raising troops, with which to reinforce the wreck of the grand army at the close of the campaign of '76.

"Arrived within the city, the crowd became intense, the President left his carriage and mounted the white charger, and, with the Governor on his right, proceeded to the city tavern in Third street, where quarters were prepared for him, the light infantry, after some time, having opened a passage for the carriages. At the city tavern the President was received by the authorities of Philadelphia, who welcomed the chief magistrate to their city as to his home for the remainder of his Presidential term. A group of old and long-tried friends were also in waiting. Foremost among these, and first to grasp the hand of Washington, was one who was always nearest to his heart, a patriot and public benefactor, Robert Morris.

"After remaining a short time in Philadelphia, the President speeded on his journey to that home where he ever found rest from his weighty labors, and enjoyed the sweets of rural and domestic happiness amid his farms and at his fireside of Mount Vernon."

Whenever Washington was residing at Mount Vernon, he was accustomed to receive visits from his old and intimate friends, and to relieve his mind from the cares of state by lively and familiar conversation, and social and convivial intercourse. On one occasion, some years before the period of which we are now writing, Mr. Drayton and Mr. Izard, of South Carolina, were on a visit to Mount Vernon. [4]

After dinner, while the party were still sitting at table, the conversation turned on Arnold's treason. Mr. Lear, Washington's private secretary, was present, and after retiring he wrote down in his diary Washington's own account of that remarkable incident in our history in his own words. The extract from Mr. Lear's diary has recently been published for the first time in Mr. Rush's "Washington in Domestic Life." It is as follows:

"After dinner, Washington was, in the course of conversation, led to speak of Arnold's treachery, when he gave the following account of it, which I shall put in his own words, thus: 'I confess I had a good opinion of Arnold before his treachery was brought to light; had that not been the case I should have had some reason to suspect him sooner, for when he commanded in Philadelphia, the Marquis Lafayette brought accounts from France of the armament which was to be sent to cooperate with us in the ensuing campaign. Soon after this was known, Arnold pretended to have some private business to transact in Connecticut, and on his way there he called at my quarters, and in the course of conversation expressed a desire of quitting Philadelphia and joining the army the ensuing campaign. I told him that it was probable we should have a very active one, and that if his wound and state of health would permit, I should be extremely glad of his services with the army. He replied that he did not think his wound would permit him to take a very active part, but still he persisted in his desire of being with the army. He went on to Connecticut and on his return called again upon me. He renewed his request of being with me next campaign, and I made him the same answer I had done before. He again repeated that he did not think his wound would permit him to do active duty, and intimated a desire to have the command at West Point. I told him I did not think that would suit him, as I should leave none in the garrison but invalids, because it would be entirely covered by the main army. The subject was dropped at that time, and he returned to Philadelphia. It then appeared somewhat strange to me that a man of Arnold's known activity and enterprise should be desirous of taking so inactive a part. I however thought no more of the matter. When the French troops arrived at Rhode Island, I had intelligence from New York that General Clinton intended to make an attack upon them before they could get themselves settled and fortified. In consequence of that I was determined to attack New York, which would be left much exposed by his drawing off the British troops, and accordingly formed my line of battle and moved down with the whole army to King's ferry, which we passed. Arnold came to camp that time, and, having no command, and consequently no quarters (all the houses thereabouts being occupied by the army), he was obliged to seek lodgings at some distance from the camp. While the army was crossing at King's ferry I was going to see the last detachment over, and met Arnold, who asked me if I had thought of anything for him. I told him that he was to have the command of the light troops, which was a post of honor, and which his rank indeed entitled him to. Upon this information his countenance changed, and he appeared to be quite fallen; and, instead of thanking me, or expressing any pleasure at the appointment, never opened his mouth. I desired him to go on to my quarters and get something to refresh himself, and I would meet him there soon. He did so. Upon his arrival there he found Colonel Tilghman, whom he took aside, and, mentioning what I had told him, seemed to express great uneasiness at it--as his leg, he said, would not permit him to be long on horseback, and intimated a great desire to have the command at West Point. When I returned to my quarters Colonel Tilghman informed me of what had passed. I made no reply to it, but his behavior struck me as strange and unaccountable. In the course of that night, however, I received information from New York that General Clinton had altered his plan and was debarking his troops. This information obliged me likewise to alter my disposition and return to my former station, where I could better cover the country. I then determined to comply with Arnold's desire, and accordingly gave him the command of the garrison at West Point. Things remained in this situation about a fortnight, when I wrote to the Count Rochambeau, desiring to meet him at some intermediate place (as we could neither of us be long enough from our respective commands to visit the other), in order to lay the plan for the siege of Yorktown, and proposed Hartford, where I accordingly went and met the count. On my return I met the Chevalier Luzerne toward evening within about fifteen miles of West Point (on his way to join the count at Rhode Island), which I intended to reach that night, but he insisted upon turning back with me to the next public house, where, in politeness to him, I could not but stay all night, determining, however, to get to West Point to breakfast very early. I sent off my baggage, and desired Colonel Hamilton to go forward and inform General Arnold that I would breakfast with him. Soon after he arrived at Arnold's quarters a letter was delivered to Arnold which threw him into the greatest confusion. He told Colonel Hamilton that something required his immediate attendance at the garrison, which was on the opposite side of the river to his quarters, and immediately ordered a horse to take him to the river, and the barge, which he kept to cross, to be ready, and desired Major Franks, his aide, to inform me when I should arrive that he was gone over the river and would return immediately. When I got to his quarters and did not find him there I desired Major Franks to order me some breakfast, and, as I intended to visit the fortifications, I would see General Arnold there. After I had breakfasted I went over the river, and, inquiring for Arnold, the commanding officer told me that he had not been there. I likewise inquired at the several redoubts, but no one could give me any information where he was. The impropriety of his conduct, when he knew I was to be there, struck me very forcibly, and my mind misgave me, but I had not the least idea of the real cause. When I returned to Arnold's quarters about two hours after, and told Colonel Hamilton that I had not seen him, he gave me a packet which had just arrived for me from Colonel Jemmison, which immediately brought the matter to light. I ordered Colonel Hamilton to mount his horse and proceed with the greatest dispatch to a post on the river about eight miles below, in order to stop the barge if she had not passed, but it was too late. It seems that the letter which Arnold received which threw him into such confusion was from Colonel Jemmison, informing him that André was taken, and that the papers found upon him were in his possession. Colonel Jemmison, when André was taken with these papers, could not believe that Arnold was a traitor, but rather thought it was an imposition of the British in order to destroy our confidence in Arnold. He, however, immediately on their being taken, dispatched an express after me, ordering him to ride night and day till he came up with me. The express went the lower road, which was the road by which I had gone to Connecticut, expecting that I would return by the same route, and that he would meet me, but before he had proceeded far he was informed that I was returning by the upper road. He then cut across the country and followed in my track till I arrived at West Point. He arrived about two hours after and brought the above packet. When Arnold got down to the barge, he ordered his men, who were very clever fellows and some of the better sort of soldiery, to proceed immediately on board the Vulture, sloop-of-war, as a flag, which was lying down the river, saying that they must be very expeditious, as he must return in a short time to meet me, and promised them two gallons of rum if they would exert themselves. They did, accordingly, but when they got on board the Vulture, instead of their two gallons of rum, he ordered the coxswain to be called down into the cabin, and informed him that he and the men must consider themselves as prisoners. The coxswain was very much astonished, and told him that they came on board under the sanction of a flag. He answered that that was nothing to the purpose; they were prisoners. But the captain of the Vulture had more generosity than this pitiful scoundrel, and told the coxswain that he would take his parole for going on shore to get clothes, and whatever else was wanted for himself and his companions. He accordingly came, got his clothes, and returned on board. When they got to New York, General Clinton, ashamed of so low and mean an action, set them all at liberty.'"

This narrative, from the lips of Washington himself, throws much additional light on Arnold's treason. It is also interesting to the general reader, as affording a specimen of Washington's style in conversation, when the events of the Revolution formed the topic of discourse.

1. Footnote: On account of the great importance of this debate, we give Marshall's synopsis of the arguments used on both sides. It brought up the question of State rights as opposed to centralization for the first time; and on many other accounts is particularly interesting for the political reader, as well as for all who are curious respecting our early colonial history.

2. Footnote: It has ever been understood that these members were, on principle, in favor of the assumption as modified in the amendment made by the Senate; but they withheld their assent from it when originally proposed in the House of Representatives in the opinion that the increase of the national debt added to the necessity of giving to the departments of the national government a more central residence. It is understood that a greater number would have changed had it been necessary.

3. Footnote: Marshall.

4. Footnote: October 23, 1786, was the date of Messrs. Drayton and Izard's visit.

Spotted a typo or a problem in this chapter? Tell us

IV. THE NATIONAL BANK ESTABLISHED. 1790

On his way from New York to Mount Vernon Washington stopped for a short time, as we have seen, in Philadelphia. While there he addressed a letter to his private secretary, Mr. Lear, which is interesting not only for the information it contains respecting his residence, but from its illustrating that remarkable attention to the details of business, which we have already had occasion to notice.

"After a pleasant journey," he writes, "we arrived in this city on Thursday last (September 2, 1790), and tomorrow we proceed--if Mrs. Washington's health will permit, for she has been much indisposed since we came here--toward Mount Vernon. The house of Mr. Robert Morris had, previous to my arrival, been taken by the corporation for my residence. [1]

"It is the best they could get. It is, I believe, the best single house in the city. Yet without additions it is inadequate to the commodious accommodation of my family. These additions, I believe, will be made. The first floor contains only two public rooms (except one for the upper servants). The second floor will have two public (drawing) rooms, and with the aid of one room with a partition in it, in the back building, will be sufficient for the use of Mrs. Washington and the children, and their maids, besides affording her a small place for a private study and dressing-room. The third story will furnish you and Mrs. Lear with a good lodging-room, a public office (for there is no room below for one), and two rooms for the gentlemen of the family. The garret has four good rooms, which must serve Mr. and Mrs. Hyde [2]--unless they should prefer the room over the workhouse--William, and such servants as it may not be better to place in the proposed additions to the back building. There is a room over the stable which may serve the coachman and postillions, and there is a smokehouse, which may possibly be more valuable for the use of servants than for the smoking of meats. The intention of the addition to the back building is to provide a servant's hall and one or two lodging-rooms for the servants. There are good stables, but for twelve horses only, and a coach-house, which will hold all my carriages. Speaking of carriages, I have left my coach to receive a thorough repair, by the time I return, which I expect will be before the 1st of December."

The Legislature, meantime, had appropriated for his residence an elegant house in South Ninth street, which was taken down a few years since, having been occupied by the University, and other buildings were erected on the same lot for the same purpose. But Washington refused to occupy the house offered by the State authorities, because he would not live in a house which was not hired and paid for by himself. He was desirous, however, to have the rent fixed before he entered the house, and he wrote repeatedly to Mr. Lear from Mount Vernon to ascertain what the rent would be. On the 14th of November, 1790, he wrote to Mr. Lear as follows:

"I am, I must confess, exceedingly unwilling to go into any house without first knowing on what terms I do it, and wish that this sentiment could be again hinted in delicate terms to the parties concerned with me. I cannot, if there are no latent motives which govern in this case, see any difficulty in the business. Mr. Morris has most assuredly formed an idea of what ought in equity to be the rent of the tenement in the condition he left it, and with this aid the committee ought, I conceive, to be as little at a loss in determining what it should rent for, with the additions and alterations which are about to be made, and which ought to be done in a plain and neat, not by any means in an extravagant style, because the latter is not only contrary to my wish but would really be detrimental to my interest and convenience, principally because it would be the means of keeping me out of the use and comforts of the house to a late period, and because the furniture and everything else would require to be accordant therewith, besides making me pay an extravagant price, perhaps to accommodate the alterations to the taste of another or to the exorbitant rates of workmen.

"I do not know, nor do I believe, that anything unfair is intended by either Mr. Morris or the committee, but let us for a moment suppose that the rooms (the new ones I mean) were to be hung with tapestry or a very rich and costly paper, neither of which would suit my present furniture; that costly ornaments for the bow windows, extravagant chimney-pieces, and the like were to be provided; that workmen, from extravagance of the times for every twenty shillings' worth of work would charge forty shillings, and that advantage should be taken of the occasion to new paint every part of the house and buildings, would there be any propriety in adding ten or twelve and a half per cent. for all this to the rent of the house in its original state for the two years that I am to hold it? If the solution of these questions is in the negative, wherein lies the difficulty of determining that the houses and lots, when finished according to the proposed plan, ought to rent for so much? When all is done that can be done, the residence will not be so commodious as the house I left in New York, for there (and the want of it will be found a real inconvenience at Mr. Morris') my office was in a front room below, where persons on business were at once admitted, whereas now they will have to ascend two pair of stairs and to pass by the public rooms to go to it. Notwithstanding which I am willing to allow as much as was paid to Mr. Macomb, and shall say nothing if more is demanded, unless there is apparent extortion or the policy of delay is to see to what height rents will rise before mine is fixed. In either of these cases I should not be pleased, and to occupy the premises at the expense of any public body I will not.

"I had rather have heard that my repaired coach was plain and elegant than rich and elegant."

The rent of Mr. Morris' house was finally settled at $3,000 a year, and at this rate it was occupied by Washington till the expiration of his second term as President and his final retirement to Mount Vernon.

Our readers will excuse us for dwelling a little longer on the domestic arrangements of Washington, as disclosed in his letters to Mr. Lear. These details are not only curious and entertaining, as showing the style of living half a century ago, but as exhibiting the modest and economical style in which Washington chose to live; and they refute the calumnies of his political enemies, who, a little later, charged him with anti-republican state and splendor in his style of living. One of his letters to Mr. Lear relates to the servants. "The pressure of business," he writes, "under which I labored for several days before I left New York, allowed me no time to inquire who of the female servants it was proposed or thought advisable to remove here, besides the wives of the footmen, James and Fidas. With respect to Mr. Hyde and his wife, if it is not stated on some paper handed in by Mr. Hyde, it is nevertheless strong on my recollection that his wife's services were put down at $100 and his own at $200 per annum. I have no wish to part with Mr. or Mrs. Hyde; first, because I do not like to be changing, and, second, because I do not know where or with whom to supply their places. On the score of accounts I can say nothing, having never taken a comparative view of his and Fraunces', but I am exceedingly mistaken if the expenses of the second table, at which Mr. Hyde presides, have not greatly exceeded those of the tables kept by Fraunces, for I strongly suspect (but in this I may be mistaken) that nothing is brought to my table of liquors, fruits, or other luxuries that is not used as profusely at his. If my suspicions are unfounded I shall be sorry to have entertained them, and if they are not, it is at least questionable whether under his successor the same things might not be done; in which case (if Hyde is honest and careful, of which you are better able to judge than I am), a change without benefit might take place, which is not desirable if they are to be retained on proper terms. I say they, for if Mrs. Hyde is necessary for the purposes enumerated in your letter, and the cook is not competent to prepare the dessert, make cake, etc., I do not see of what use Hyde will be, more than William, without her. Fraunces, besides being an excellent cook, knowing how to provide genteel dinners, and giving aid in dressing them, prepared the dessert, made the cake, and did everything that is done by Hyde and his wife together; consequently the services of Hyde alone are not to be compared with those of Fraunces; and if his accounts exceed those of Fraunces, in the same seasons--£4 or £5 a week--and at the same time appear fair, I shall have no scruple to acknowledge that I have entertained much harder thoughts of him than I ought to have done, although it is unaccountable to me how other families, on $2,500 or $3,000 a year, should be enabled to entertain more company or at least entertain more frequently than I could do for $25,000."

Respecting the furniture, Washington writes: "Mr. and Mrs. Morris have insisted upon leaving the two large looking-glasses which are in their best rooms, because they have no place, they say, proper to remove them to, and because they are unwilling to hazard the taking of them down. You will, therefore, let them have, instead, the choice of mine; the large ones I purchased of the French minister they do not incline to take, but will be glad of some of the others. They will also leave a large glass lamp in the entry or hall, and will take one or more of my glass lamps in lieu of it. Mrs. Morris has a mangle (I think it is called) for ironing clothes, which, as it is fixed in the place where it is commonly used, she proposes to leave and take mine. To this I have no objection, provided mine is equally good and convenient; but if I should obtain any advantages, besides that of its being up and ready for use, I am not inclined to receive it.

"I have no particular direction to give respecting the appropriation of the furniture. By means of the bow-windows the back rooms will become the largest, and, of course, will receive the furniture of the largest dining and drawing-rooms; and in that case, though there are no closets in them, there are some in the steward's room, directly opposite, which are not inconvenient. There is a small room adjoining the kitchen that might, if it is not essential for other purposes, be appropriated for the Sevres china and other things of that sort, which are not in common use.

"Mrs. Morris, who is a notable lady in family arrangements, can give you much information on all the conveniences about the house and buildings, and I dare say would rather consider it as a compliment to be consulted in these matters, as she is so near, than a trouble to give her opinion of them.

"I approve, at least till inconvenience or danger shall appear, of the large table ornaments remaining on the sideboard, and of the pagodas standing in the smallest drawing-room. Had I delivered my sentiment from here, respecting this fixture, that is the apartment I should have named for it. Whether the green, which you have, or a new yellow curtain, should be appropriated to the staircase above the hall may depend on your getting an exact match in color and so forth of the latter. For the sake of appearances one would not, in instances of this kind, regard a small additional expense."

In these letters, written to Mr. Lear during Washington's residence at Mount Vernon, in the autumn of 1790, he frequently refers to the children under Mrs. Washington's care, who composed a part of the family. In a letter, dated October 3d, he requests Mr. Lear to make inquiries respecting the schools in Philadelphia, with a view to placing Washington Custis, Mrs. Washington's grandson, at the best. If the college is under good regulations, he inquires if it would not be better to put him there at once. Again, in a letter dated October 10th, after speaking of the proper care and instruction of his niece, Miss Harriet Washington, when he should be established in Philadelphia, he refers again to Washington Custis' education, whom he had adopted as a son, and in whom he appears to have taken great interest. [3] He also wishes inquiry to be made as to the higher branches taught at the college, with a view to placing his nephews, George and Lawrence Washington, at that institution in Philadelphia. Having studied the languages, they are engaged, he adds, under Mr. Harrow, in Alexandria, in learning mathematics and French. In a letter dated November 7, 1790, Washington expresses renewed anxiety respecting the education of his adopted son, Washington Custis, who appears to have been about eight years old at this time, and discusses the question of placing him at the college, if his age will admit of it.

On the 17th of November (1790), Washington, writing from Mount Vernon to Mr. Lear at Philadelphia, mentions that he is just setting out for Alexandria to a public dinner given to him by the citizens of that place. In his letter of November 23d, he dates from a tavern on the road, about twelve miles from Baltimore. He was then on his journey from Mount Vernon to Philadelphia in his own traveling carriage with Mrs. Washington, the children, and the servants in attendance on the children, accompanying them in a stage-coach hired for their accommodation.

The party arrived in Philadelphia on Saturday, the 28th of November (1790), and immediately took possession of the house which had been hired for the accommodation of the President and his family. The members of Congress and other public functionaries were mostly at their posts, and a crowd of strangers were resorting to the city, in expectation of the gay and brilliant pleasures and society which are usual in the metropolis in the winter season.

In the President's family, "the rules for receiving visitors and entertaining company," says Dr. Griswold, [4] "continued to be very nearly the same as in New York. Respectable citizens and strangers, properly introduced, were seen by the President every other Tuesday, between the hours of 3 and 4 in the afternoon. The receptions were in the dining-room, on the first floor, in the back part of the house. At 3 o'clock, all the chairs having been removed, the door was opened, and the President, usually surrounded by members of his cabinet, or other distinguished men, was seen by the approaching visitor standing before the fireplace, his hair powdered and gathered behind in a silk bag, coat and breeches of plain black velvet, white or pearl-colored vest, yellow gloves, a cocked hat in his hand, silver knee and shoe-buckles, and a long sword, with a finely-wrought and glittering steel hilt, the coat worn over it, and its scabbard of polished white leather. On these occasions he never shook hands, even with his most intimate friends. The name of everyone was distinctly announced, and he rarely forgot that of a person who had been once introduced to him. The visitor was received with a dignified bow and passed on to another part of the room. At a quarter past 3 the door was closed, the gentlemen present moved into a circle, and he proceeded, beginning at his right hand, to exchange a few words with each. When the circuit was completed he resumed his first position and the visitors approached him in succession, bowed, and retired.

"At the levees of Mrs. Washington he did not consider any visits made to himself, and he appeared as a private gentleman, with neither hat nor sword, conversing without restraint, generally with women, who rarely had other opportunities of meeting him."

Congress assembled for its third session on the 6th of December, 1790, the day which had been appointed by adjournment. But the members had not yet learned to be punctual in their attendance, and it was not till the 8th that a sufficient number took their seats to authorize their entering upon the business of the session. Among the members we recognize some celebrated names. From Massachusetts were Elbridge Gerry, afterward Vice-President of the United States, and Fisher Ames, one of the most illustrious of American orators; from Connecticut, the veteran statesman, Roger Sherman; from New Jersey, the philanthropist, Elias Boudinot; from Pennsylvania, Peter and Frederick Augustus Muhlenberg and George Clymer; from Virginia, James Madison; from North Carolina, Hugh Williamson, and from Georgia, Gen. James Jackson. This is but a portion of the strong array of historical names which adorned the First Congress of the United States under the constitution.

In his speech delivered to Congress at the commencement of their third session, Washington expressed much satisfaction at the favorable prospect of public affairs, and particularly noticed the progress of public credit and the productiveness of the revenue.

Adverting to foreign nations, he said: "The disturbed situation of Europe, and particularly the critical posture of the great maritime powers, whilst it ought to make us more thankful for the general peace and security enjoyed by the United States, reminds us at the same time of the circumspection with which it becomes us to preserve these blessings. It requires, also, that we should not overlook the tendency of a war, and even of preparations for war, among the nations most concerned in active commerce with this country, to abridge the means and thereby, at least, to enhance the price of transporting its valuable productions to their proper market." To the serious reflection of Congress was recommended the prevention of embarrassments from these contingencies, by such encouragement to American navigation as would render the commerce and agriculture of the United States less dependent on foreign bottoms.

After expressing to the House of Representatives his confidence arising from the sufficiency of the revenues already established, for the objects to which they were appropriated, he added: "Allow me moreover to hope that it will be a favorite policy with you not merely to secure a payment of the interest of the debt funded, but, as far and as fast as the growing resources of the country will permit, to exonerate it of the principal itself." Many subjects relative to the interior government were succinctly and briefly mentioned, and the speech concluded with the following impressive and admonitory sentiment: "In pursuing the various and weighty business of the present session, I indulge the fullest persuasion that your consultations will be marked with wisdom and animated by the love of country. In whatever belongs to my duty you shall have all the cooperation which an undiminished zeal for its welfare can inspire. It will be happy for us both, and our best reward, if, by a successful administration of our respective trusts, we can make the established government more and more instrumental in promoting the good of our fellow-citizens, and more and more the object of their attachment and confidence."

The addresses of the two Houses, in answer to the speech, proved that the harmony between the executive and legislative departments, with which the government had gone into operation, had sustained no essential interruption. But in the short debate which took place on the occasion in the House of Representatives a direct disapprobation of one of the measures of the executive government was, for the first time, openly expressed.

In the treaty lately concluded with the Creek Indians, an extensive territory claimed by Georgia, under treaties, the validity of which was contested by the chiefs, had been entirely, or in great part, relinquished. This relinquishment excited serious discontents in that State and was censured by General Jackson, with considerable warmth, as an unjustifiable abandonment of the rights and interests of Georgia. No specific motion, however, was made, and the subject was permitted to pass away for the present.

Scarcely were the debates on the address concluded when several interesting reports were received from Hamilton, the Secretary of the Treasury, suggesting such further measures as were deemed necessary for the establishment of public credit.

It will be recollected that, in his original report on this subject, the secretary had recommended the assumption of the State debts and had proposed to enable the treasury to meet the increased demand upon it, which this measure would occasion, by an augmentation of the duties on imported wines, spirits, tea, and coffee and by imposing duties on spirits distilled within the country. The assumption not having been adopted until late in the session, the discussion on the revenue which would be required for this portion of the public debt did not commence until the House had become impatient for an adjournment. As much contrariety of opinion was disclosed, and the subject was not of immediate importance, it was deferred to the ensuing session, and an order was made requiring the Secretary of the Treasury to prepare and report such further provision as might, in his opinion, be necessary for establishing the public credit. In obedience to this order, several reports had been prepared, the first of which repeated the recommendation of an additional impost on foreign distilled spirits and of a duty on spirits distilled within the United States. The estimated revenue from these sources was $877,500, affording a small excess over the sum which would be required to pay the interest on the assumed debt. The policy of the measure was discussed in a well-digested and able argument, detailing many motives, in addition to those assigned in his original report, for preferring the system now recommended to accumulated burdens on commerce or to a direct tax on lands.

A new tax is the certain rallying point for all those who are unfriendly to the administration or to the minister by whom it is proposed. But that recommended by the secretary contained intrinsic causes of objection which would necessarily add to the number of its enemies. All that powerful party in the United States which attached itself to the local rather than to the general government, would inevitably contemplate any system of internal revenue with jealous disapprobation. They considered the imposition of a tax by Congress on any domestic manufacture as the intrusion of a foreign power into their particular concerns, which excited serious apprehensions for State importance and for liberty. In the real or supposed interests of many individuals was also found a distinct motive for hostility to the measure. A large portion of the American population, especially that which had spread itself over the extensive regions of the West, consuming imported articles to a very inconsiderable amount, was not much affected by the impost on foreign merchandise. But the duty on spirits distilled within the United States reached them, and consequently rendered them hostile to the tax.

A bill which was introduced in pursuance of the report (1791) was opposed with great vehemence by a majority of the southern and western members. By some of them it was insisted that no sufficient testimony had yet been exhibited that the taxes already imposed would not be equal to the exigencies of the public. But, admitting the propriety of additional burdens on the people, it was contended that other sources of revenue less exceptionable and less odious than this might be pointed out. The duty was branded with the hateful epithet of an excise, a species of taxation, it was said, so peculiarly oppressive as to be abhorred even in England, and which was totally incompatible with the spirit of liberty. The facility with which it might be extended to other objects was urged against its admission into the American system, and declarations made against it by the Congress of 1775 were quoted in confirmation of the justice with which inherent vices were ascribed to this mode of collecting taxes. So great was the hostility manifested against it in some of the States that the revenue officers might be endangered from the fury of the people, and in all it would increase a ferment which had been already extensively manifested.

When required to produce a system in lieu of that which they objected to, the opponents of the bill alternately mentioned an increased duty on imported articles generally, a particular duty on molasses, a direct tax, a tax on salaries, pensions, and lawyers, a duty on newspapers, and a stamp act. The friends of the bill contended that the reasons for believing the existing revenue would be insufficient to meet the engagements of the United States were as satisfactory as the nature of the case would admit or as ought to be required. The estimates were founded on the best data which were attainable, and the funds already provided had been calculated by the proper officer to pay the interest on that part of the debt only for which they were pledged. Those estimates were referred to as documents from which it would be unsafe to depart. They were also in possession of official statements showing the productiveness of the taxes from the time the revenue bill had been in operation, and arguments were drawn from these demonstrating the danger to which the infant credit of the United States would be exposed by relying on the existing funds for the interest on the assumed debt. It was not probable that the proposed duties would yield a sum much exceeding that which would be necessary, but should they fortunately do so, the surplus revenue might be advantageously employed in extinguishing a part of the principal. They were not, they said, of opinion that a public debt was a public blessing, or that it ought to be perpetuated. An augmentation of the revenue being indispensable to the solidity of the public credit, a more eligible system than that proposed in the bill could not, it was believed, be devised. Still further to burden commerce would be a hazardous experiment, which might afford no real supplies to the treasury. Until some lights should be derived from experience, it behooved the Legislature to be cautious not to lay such impositions upon trade as might probably introduce a spirit of smuggling, which, with a nominal increase, would occasion a real diminution of revenue. In the opinion of the best judges, the impost on the mass of foreign merchandise could not safely be carried further for the present. The extent of the mercantile capital of the United States would not justify the attempt. Forcible arguments were also drawn from the policy and the justice of multiplying the subjects of taxation and diversifying them by a union of internal with external objects.

Neither would a direct tax be advisable. The experience of the world had proved that a tax on consumption was less oppressive and more productive than a tax on either property or income. Without discussing the principles on which the fact was founded, the fact itself was incontestable that, by insensible means, much larger sums might be drawn from any class of men than could be extracted from them by open and direct taxes.

Against the substitution of a duty on internal negotiations, it was said that revenue to any considerable extent could be collected from them only by means of a stamp act, which was not less obnoxious to popular resentment than an excise, would be less certainly productive than the proposed duties, and was, in every respect, less eligible.

The honor, the justice, and the faith of the United States were pledged, it was said, to that class of creditors for whose claims the bill under consideration was intended to provide. No means of making the provision had been suggested, which, on examination, would be found equally eligible with a duty on ardent spirits. Much of the public prejudice which appeared in certain parts of the United States against the measure was to be ascribed to their hostility to the term "excise," a term which had been inaccurately applied to the duty in question. When the law should be carried into operation, it would be found not to possess those odious qualities which had excited resentment against a system of excise. In those States where the collection of a duty on spirits distilled within the country had become familiar to the people, the same prejudices did not exist. On the good sense and virtue of the nation they could confidently rely for acquiescence in a measure which the public exigencies rendered necessary, which tended to equalize the public burdens and which, in its execution, would not be oppressive.

A motion made by General Jackson to strike out that section which imposed a duty on domestic distilled spirits was negatived by 36 to 16, and the bill was carried by 35 to 21. Some days after the passage of this bill another question was brought forward which was understood to involve principles of deep interest to the government.

Hamilton, the Secretary of the Treasury, had been the uniform advocate of a national bank. Believing that such an institution would be "of primary importance to the prosperous administration of the finances and of the greatest utility in the operations connected with the support of public credit," he had earnestly recommended its adoption in the first general system which he presented to the view of Congress, and, at the present session, had repeated that recommendation in a special report, containing a copious and perspicuous argument on the policy of the measure. A bill conforming to the plan he suggested was sent down from the Senate and was permitted to proceed, unmolested, in the House of Representatives, to the third reading. On the final question a great, and, it would seem, an unexpected opposition was made to its passage. Mr. Madison, Mr. Giles, General Jackson, and Mr. Stone spoke against it. The general utility of banking systems was not admitted, and the particular bill before the House was censured on its merits; but the great strength of the argument was directed against the constitutional authority of Congress to pass an act for incorporating a national bank.

The government of the United States, it was said, was limited, and the powers which it might legitimately exercise were enumerated in the constitution itself. In this enumeration the power now contended for was not to be found. Not being expressly given it must be implied from those which were given or it could not be vested in the government. The clauses under which it could be claimed were then reviewed and critically examined, and it was contended that, on fair construction, no one of these could be understood to imply so important a power as that of creating a corporation.

The clause which enables Congress to pass all laws necessary and proper to execute the specified powers must, according to the natural and obvious force of the terms and the context, be limited to means necessary to the end and incident to the nature of the specified powers. The clause, it was said, was in fact merely declaratory of what would have resulted by unavoidable implication, as the appropriate, and as it were technical, means of executing those powers. Some members observed that "the true exposition of a necessary mean to produce a given end was that mean without which the end could not be produced."

The bill was supported by Mr. Ames, Mr. Sedgwick, Mr. Smith, of South Carolina, Mr. Lawrence, Mr. Boudinot, Mr. Gerry, and Mr. Vining.

The utility of banking institutions was said to be demonstrated by their effects. In all commercial countries they had been resorted to as an instrument of great efficacy in mercantile transactions; and even in the United States their public and private advantages had been felt and acknowledged.

Respecting the policy of the measure no well-founded doubt could be entertained, but the objections to the constitutional authority of Congress deserved to be seriously considered.

That the government was limited by the terms of its creation was not controverted; and that it could exercise only those powers which were conferred on it by the constitution was admitted. If, on examination, that instrument should be found to forbid the passage of the bill, it must be rejected, though it would be with deep regret that its friends would suffer such an opportunity of serving their country to escape for the want of a constitutional power to improve it.

In asserting the authority of the Legislature to pass the bill it was contended that incidental as well as express powers must necessarily belong to every government, and that, when a power is delegated to effect particular objects, all the known and usual means of effecting them must pass as incidental to it. To remove all doubts on this subject, the constitution of the United States had recognized the principle by enabling Congress to make all laws which may be necessary and proper for carrying into execution the powers vested in the government. They maintained the sound construction of this grant to be a recognition of an authority in the national Legislature to employ all the known and usual means for executing the powers vested in the government. They then took a comprehensive view of those powers and contended that a bank was a known and usual instrument by which several of them were exercised.

After a debate of great length, which was supported on both sides with ability and with that ardor which was naturally excited by the importance attached by each party to the principle in contest, the question was put and the bill was carried in the affirmative by a majority of nineteen votes.

The point which had been agitated with so much zeal in the House of Representatives was examined with equal deliberation by the executive. The cabinet was divided upon it. Jefferson, the Secretary of State, and Randolph, the Attorney-General, conceived that Congress had clearly transcended their constitutional powers, while Hamilton, the Secretary of the Treasury, with equal clearness, maintained the opposite opinion. The advice of each minister, with his reasoning in support of it, was required in writing, and their arguments were considered by the President with all that attention which the magnitude of the question and the interest taken in it by the opposing parties so eminently required. This deliberate investigation of the subject terminated in a conviction that the constitution of the United States authorized the measure, and the sanction of the Executive was given to the act. [5]

In February, 1791, Vermont, having, in convention, adopted the constitution of the United States, was admitted to the Union. The result of the census of the United States, which had been ordered in 1790, was a total of 3,929,827 souls, of whom 697,897 were slaves.

Besides the establishment of the Bank of the United States and the passage of the excise law, Congress resolved upon having a mint for the national coinage; it authorized an increase of the army and the raising a military force to resist the Indians, and provided for the maintenance of these additional troops; it also appropriated above $1,200,000 to various branches of the public service, making the expenses of the year $4,000,000, part of which had to be met by loans, since the surplus of the former year had been applied to the paying off part of the national debt, as a former act of Congress had directed. We may mention, in this connection, that the exports of the year were computed to amount to some $19,000,000 and the imports to about $20,000,000.

Among the last acts of the present Congress, as already mentioned, was an act to augment the military establishment of the United States.

The earnest endeavors of Washington to give security to the northwestern frontiers, by pacific arrangements, having been entirely unavailing, it became his duty to employ such other means as were placed in his hands for the protection of the country. Confirmed by all his experience in the opinion that vigorous offensive operations alone could bring an Indian war to a happy conclusion, he had planned an expedition against the hostile tribes northwest of the Ohio as soon as the impracticability of effecting a treaty with them had been ascertained.

General Harmar, a veteran of the Revolution, who had received his appointment under the former government, was placed at the head of the Federal troops. On the 30th of September (1790) he marched from Fort Washington with 320 regulars. The whole army, when joined by the militia of Pennsylvania and Kentucky, amounted to 1,453 men. About the middle of October Colonel Harden, who commanded the Kentucky militia, and who had been also a continental officer of considerable merit, was detached at the head of 600 men, chiefly militia, to reconnoiter the ground and to ascertain the intentions of the enemy. On his approach the Indians set fire to their principal village and fled with precipitation to the wood. As the object of the expedition would be only half accomplished unless the savages could be brought to action and defeated, Colonel Harden was again detached at the head of 210 men, 30 of whom were regulars. About ten miles west of Chilicothe, where the main body of the army lay, he was attacked by a party of Indians. The Pennsylvanians, who composed his left column, had previously fallen in the rear, and the Kentuckians, disregarding the exertions of their colonel and of a few other officers, fled on the first appearance of the enemy. The small corps of regulars, commanded by Lieutenant Armstrong, made a brave resistance. After twenty-three of them had fallen in the field the surviving seven made their escape and rejoined the army.

Notwithstanding this check the remaining towns on the Scioto were reduced to ashes, and the provisions laid up for the winter were entirely destroyed. This service being accomplished the army commenced its march toward Fort Washington. Being desirous of wiping off the disgrace which his arms had sustained, General Harmar halted about eight miles from Chilicothe and once more detached Colonel Harden with orders to find the enemy and bring on an engagement. His command consisted of 360 men, of whom 60 were regulars, commanded by Major Wyllys. Early the next morning this detachment reached the confluence of the St. Joseph and St. Mary, where it was divided into three columns. The left division, commanded by Colonel Harden in person, crossed the St. Joseph and proceeded up its western bank. The center, consisting of the Federal troops, was led by Major Wyllys up the eastern side of that river, and the right, under the command of Major M'Millan, marched along a range of heights which commanded the right flank of the center division. The columns had proceeded but a short distance when each was met by a considerable body of Indians, and a severe engagement ensued. The militia retrieved their reputation, and several of their bravest officers fell. The heights on the right having been, from some cause not mentioned, unoccupied by the American troops, the savages seized them early in the action, and attacked the right flank of the center with great fury. Although Major Wyllys was among the first who fell the battle was maintained by the regulars with spirit, and considerable execution was done on both sides. At length the scanty remnant of this small band, quite overpowered by numbers, was driven off the ground, leaving fifty of their comrades, exclusive of Major Wyllys and Lieutenant Farthingham, dead upon the field. The loss sustained by the militia was also considerable. It amounted to upwards of 100 men, among whom were nine officers. After an engagement of extreme severity the detachment joined the main army, which continued its march to Fort Washington.

General Harmar, with what propriety it is not easy to discern, claimed the victory. He conceived, not entirely without reason, that the loss of a considerable number of men would be fatal to the Indians, although a still greater loss should be sustained by the Americans, because the savages did not possess a population from which they could replace the warriors who had fallen. The event, however, did not justify this opinion.

The information respecting this expedition was quickly followed by intelligence stating the deplorable condition of the frontiers. An address from the representatives of all the counties of Virginia, and those of Virginia bordering on the Ohio, was presented to the President, praying that the defense of the country might be committed to militia unmixed with regulars, and that they might immediately be drawn out to oppose "the exulting foe." To this address the President gave a conciliatory answer, but he understood too well the nature of the service to yield to the request it contained. Such were his communications to the Legislature that a regiment was added to the permanent military establishment, and he was authorized to raise a body of 2,000 men for six months, and to appoint a major-general, and a brigadier-general, to continue in command so long as he should think their services necessary.

With the 3d of March, 1791, terminated the first Congress elected under the constitution of the United States. "The party denominated Federal," says Marshall, "having prevailed at the elections, a majority of the members were steadfast friends of the Constitution, and were sincerely desirous of supporting a system they had themselves introduced, and on the preservation of which, in full health and vigor, they firmly believed the happiness of their fellow-citizens, and the respectability of the nation, greatly to depend. To organize a government, to retrieve the national character, to establish a system of revenue, and to create public credit, were among the arduous duties which were imposed upon them by the political situation of their country. With persevering labor, guided by no inconsiderable portion of virtue and intelligence, these objects were, in a great degree, accomplished. Out of the measures proposed for their attainment, questions alike intricate and interesting unavoidably arose. It is not in the nature of man to discuss such questions without strongly agitating the passions, and exciting irritations which do not readily subside.

"Had it ever been the happy and singular lot of America to see its national Legislature assemble uninfluenced by those prejudices which grew out of the previous divisions of the country, the many delicate points which they were under the necessity of deciding, could not have failed to disturb this enviable state of harmony, and to mingle some share of party spirit with their deliberations. But when the actual state of the public mind was contemplated, and due weight was given to the important consideration that at no very distant day a successor to the present chief magistrate must be elected, it was still less to be hoped that the first Congress could pass away without producing strong and permanent dispositions in parties, to impute to each other designs unfriendly to the public happiness. As yet, however, these imputations did not extend to the President. His character was held sacred, and the purity of his motives was admitted by all. Some divisions were understood to have found their way into the cabinet. It was insinuated that between the Secretaries of State and of the Treasury very serious differences had arisen, but these high personages were believed to be equally attached to the President, who was not suspected of undue partiality to either. If his assent to the bill for incorporating the national bank produced discontent, the opponents of that measure seemed disposed to ascribe his conduct, in that instance, to his judgment, rather than to any prepossession in favor of the party by whom it was carried. The opposition, therefore, in Congress, to the measures of the government, seemed to be levelled at the Secretary of the Treasury, and at the northern members by whom those measures were generally supported, not at the President by whom they were approved. By taking this direction it made its way into the public mind, without being encountered by that devoted affection which a great majority of the people felt for the chief magistrate of the Union. In the meantime, the national prosperity was in a state of rapid progress; and the government was gaining, though slowly, in the public opinion. But in several of the State assemblies, especially in the southern division of the continent, serious evidences of dissatisfaction were exhibited, which demonstrated the jealousy with which the local sovereignties contemplated the powers exercised by the Federal Legislature."

A recent writer, speaking of the discussions in the cabinet respecting the bill establishing a national bank, says:

"Jefferson and Randolph were of opinion that Congress, in passing the bill, transcended the powers vested in them by the constitution. Hamilton, on the other hand, maintained it to be purely constitutional.

"It was not an easy task to unite two men of such opposite natures as Hamilton and Jefferson, and make them act in concert in the same cabinet. The critical state of affairs at the first adoption of the constitution, and the impartial preponderance of Washington alone could accomplish it. He applied himself to it with consummate perseverance and wisdom. At heart he felt a decided preference for Hamilton and his views. 'By some,' said he, 'he is considered an ambitious man and therefore a dangerous one. That he is ambitious I readily grant, but his ambition is of that laudable kind which prompts a man to excel in whatever he takes in hand. He is enterprising, quick in his perceptions, and in his judgment intuitively great.'

"But it was only in 1798, in the freedom of retirement, that Washington spoke so explicitly. While in office, and between his two secretaries, he maintained toward them a strict reserve, and testified the same confidence in both. He believed both of them to be sincere and able; both of them necessary to the country and to himself. Jefferson was to him, not only a connecting tie, a means of influence with the popular party which rarely became the opposition; but he made use of him in the internal administration of his government as a counterpoise to the tendencies, and especially to the language, sometimes extravagant and inconsiderate, of Hamilton and his friends. He had interviews and consultations with each of them separately, upon the subjects which they were to discuss together, in order to remove or lessen beforehand their differences of opinion. He knew how to turn the merit and popularity of each, with his own party, to the general good of the government, even to their own mutual advantage. He skilfully availed himself of every opportunity to employ them in a common responsibility. And when a disagreement too wide, and passions too impetuous, seemed to threaten an immediate rupture, he interposed, used exhortation and entreaty, and by his personal influence, by a frank and touching appeal to the patriotism and right-mindedness of the two rivals, he postponed the breaking forth of the evil which it was not possible to eradicate. On the bank question he required from each his arguments in writing, and after maturely weighing them both, he gave the sanction of his signature to the act passed by Congress for its incorporation. From the moment of the incorporation of the Bank of the United States parties assumed the almost perfect forms of organization and principles by which they are marked in our own day. The arguments and imputations of the Republican party, however, were not so much intended to apply to Washington and his measures as to Hamilton, who was considered and acknowledged by all as the head of the Federal party. This fact was sufficiently proved when Washington, at the close of the session of Congress, made an excursion into the southern States. His reception by men of all parties was ample testimony of the fact that he united all hearts, and that, however the measures or the constitution of government might be censured and disapproved, none would refuse to pour the grateful homage of free hearts into the bosom of their veteran chief." Of this excursion we shall give an account in the next chapter.

1. Footnote: This house was in Market street, on the south side, near Sixth street. The market-house buildings then reached only to Fourth street; the town in this street extended westward scarcely so far as Ninth street; good private dwellings were seen above Fifth street; Mr. Morris' was perhaps the best; the garden was well enclosed by a wall.--(Richard Rush, "Washington in Domestic Life," from Original Letters and Manuscripts. Philadelphia, 1857.)

2. Footnote: Mr. Hyde was butler.

3. Footnote: Mr. Curtis was the writer of the "Reminiscences" we have so frequently quoted. He died on the 10th of October, 1857, aged seventy-six years.

4. Footnote: Republican Court.

5. Footnote: Marshall.

Spotted a typo or a problem in this chapter? Tell us

V. POLITICAL PARTIES DEVELOPED. 1791-1792

Washington, having received from Congress more ample means for the protection of the frontiers against the Indians, now directed his attention (March, 1791) to an expedition which should carry the war into their own country; this, as we have already seen, being his favorite method of dealing with Indian hostilities. He accordingly appointed Maj.-Gen. Arthur St. Clair, governor of the territory northwest of the Ohio, commander-in-chief of the forces to be employed in the meditated expedition. This officer had served through the war of the Revolution with reputation, though it had never been his fortune to distinguish himself. The evacuation of Ticonderoga had indeed, at one time, subjected him to much public censure, but it was found, upon inquiry, to be unmerited. Other motives, in addition to the persuasion of his fitness for the service, induced Washington to appoint him. With the sword, the olive branch was still to be tendered, and it was thought advisable to place them in the same hands. The governor, having been made officially the negotiator with the tribes inhabiting the territories over which he presided, being a military man acquainted with the country into which the war was to be carried, possessing considerable influence with the inhabitants of the frontiers, and being so placed as to superintend the preparations for the expedition advantageously, seemed to have claims to the station which were not to be overlooked. It was also a consideration of some importance that the high rank he had held in the American army would obviate those difficulties in filling the inferior grades with men of experience, which might certainly be expected should a person who had acted in a less elevated station be selected for the chief command.

After making the necessary arrangements for recruiting the army Washington prepared to make his long contemplated tour through the southern States.

On the 19th of March (1791), in writing to Lafayette, he says: "The tender concern which you express on my late illness awakens emotions which words will not explain, and to which your own sensibility can best do justice. My health is now quite restored, and I flatter myself with a hope of a long exemption from sickness. On Monday next I shall enter on the practice of your friendly prescription of exercise, intending, at that time, to begin a journey to the southward, during which I propose visiting all the southern States."

This tour he performed in his own carriage, drawn by six horses, which were not changed during the journey, which occupied nearly three months. He was accompanied by one of his private secretaries, Major Jackson. Leaving his residence in Market street, Philadelphia, he set off in the latter part of March, and was escorted into Delaware by Mr. Jefferson and General Knox. On the 25th of March he arrived at Annapolis, where he was met by the people in a body, entertained at public dinners and a ball, and, after staying two days, was accompanied on his journey by the governor of Maryland, as far as Georgetown. From this place, on the 29th of March, he writes to Gov. Charles Pinckney, of South Carolina: "I had the pleasure of receiving your Excellency's obliging letter of the 8th instant last evening. I am thus far on my tour through the southern States, but as I travel with only one set of horses, and must make occasional halts, the progress of my journey is exposed to such uncertainty as admits not of fixing a day for my arrival at Charleston. While I express the grateful sense which I entertain of your Excellency's polite offer to accommodate me at your house during my stay in Charleston, your goodness will permit me to deny myself that pleasure. Having, with a view to avoid giving inconvenience to private families, early prescribed to myself the rule of declining all invitations to quarters on my journeys, I have been repeatedly under a similar necessity to the present, of refusing those offers of hospitality which would, otherwise, have been both pleasing and acceptable."

From Georgetown he proceeded to Mount Vernon, where the necessary attention to his private affairs, and some important correspondence on public business, detained him a week. Leaving Mount Vernon, and passing through Fredericksburg, where he dined with some of his old personal friends, he arrived at Richmond on the 11nth of April (1791). His reception there was enthusiastic. He entered the city amidst the roar of cannon and the acclamations of the crowds of people who lined the streets through which he passed. In the evening there was a grand illumination; and during the two days which he remained there, the city was given up to festivities in honor of the favorite hero of Virginia. Similar tokens of welcome were exhibited at Petersburg, Halifax, Newburn, and Wilmington. On leaving the last-mentioned place he was rowed across Cape Fear river in a splendid barge, by six masters of vessels; and on his arrival at Charleston (May 2d) a similar token of honor was accorded to him on a larger scale. From Hadrill's Point, attended by a cortege of distinguished Carolinians, he was conveyed to the city in a twelve-oared barge, manned by thirteen captains of American ships, while other barges and floats, with bands of music and decorations, formed an imposing nautical procession. On landing he was received by Governor Pinckney, the civic authorities, the Cincinnati, and a brilliant military escort, who attended him in procession, amidst the ringing of bells, the firing of cannon, and the acclamations of the people, first to the Exchange, where he was welcomed in a formal address, and then to the house prepared for his reception. [1]

During the week he remained in Charleston, he received the most lively and touching tokens of welcome and affection from the warm-hearted Carolinians, who strove to render him every species of honor. A corporation ball on a grand scale, a large dinner party at Governor Pinckney's mansion, another at Maj. Pierce Butler's, a concert, and a splendid public entertainment given by the merchants of the city, formed a portion only of the testimonials of homage and welcome given on this occasion to their illustrious guest.

He left Charleston on the 9th of May (1791), escorted to Ashley ferry by the governor and a large cavalcade. "At Perrysburg," says Dr. Griswold, "he was met the next day by a committee from Savannah, and, with General Wayne, Major Butler, Mr. Baillie, and Major Jackson, was conducted on board a richly decorated boat, in which the party were rowed down the river by nine sea captains, dressed in light-blue silk jackets, black satin breeches, white silk stockings, and round hats with black ribbons, inscribed with 'Long live the President,' in golden letters. Ten miles from the city they were met by other barges, from one of which a company of gentlemen sung the popular song, 'He comes, the hero comes!' As they drew near the harbor, every vessel and all the shore were discovered to be thronged with people. When the President stepped on the landing he was received by Gen. James Jackson, who introduced him to the mayor and aldermen; and he was soon after conducted, in the midst of a procession, through crowds of spectators, to the house prepared for his accommodation in St. James' square. The same evening he dined with the city authorities and a large number of other gentlemen, at Brown's Coffee House. Cannons were fired during the day, and at night the streets and the shipping were brilliantly illuminated. On Friday he dined with the Cincinnati of the State of Georgia, and attended a ball. On Saturday, accompanied by General McIntosh, who had been second in command under General Lincoln in storming them, he examined the remaining traces of the lines constructed by the British for the defense of Savannah in 1779, and dined with 200 citizens and strangers under a beautiful arbor, supported by numerous columns and ornamented with laurel and bay leaves, erected on an elevation which commanded a view of the town and the harbor.

"It has been frequently said of Washington, that 'no man in the army had a better eye for a horse,' and many of his letters show that he was by no means indifferent as to the qualities or treatment of his stud, during the war and afterward. A tour of 1,900 miles, with the same animals, was a severe test of their capacities, and before reaching Charleston he wrote to Mr. Lear, that though, all things considered, they had got on very well, yet his horses were decidedly worsted, and if brought back would 'not cut capers, as they did on setting out.' On the 13th of May, he says in a letter to the same correspondent:

"'I shall leave this place to-morrow; my horses, especially the two I bought just before I left Philadelphia, and my old white horse, are much worn down, and I have yet 150 or 200 miles of heavy sand to pass before I get fairly into the upper and firmer road.'

"On the way to Augusta he stopped to dine with the widow of his old friend and companion in arms, General Greene, at her seat called Mulberry Grove. On Wednesday, the 18th (May, 1791), Governor Telfair and the principal officers of the State left the capital, with a numerous train of citizens, and proceeded five miles toward Savannah to meet him, and he was conducted to his lodgings accompanied by thousands of people, who filled the air with joyous acclamations. That day he dined with a large party at the Grove, the governor's private residence, near Augusta, where Mrs. Telfair assembled the ladies of the town to meet him at a ball in the evening; on Thursday he received and answered an address from the people, attended a public dinner, and was present at another ball; on Friday he visited the academy and dined again with the governor; and on Saturday he started again on his return, Augusta being the further point of his journey.

"Coming again into South Carolina, he was conducted to Columbia by General Winne, Col. Wade Hampton, and a large number of other citizens, and the next day dined with more than 200 of the principal men and women of the town and neighboring country at the State house, and in the evening attended a ball.

"On Wednesday, the 25th (May, 1791), he dined at Camden, and on the following morning visited this grave of the Baron de Kalb, the places where the British redoubts had been erected, Hobkirk Hill, where General Greene was attacked by Lord Rawdon, and the plains where General Gates was engaged by Lord Cornwallis in 1780. Passing through Charlotte, Salisbury, Salem, Guilford, and other towns, in all of which the love and reverence of the people were exhibited in every variety of manner which taste and ingenuity could suggest, he arrived at Mount Vernon on the 12th of June.

"He remained at his seat between three and four weeks, during which he was occupied with his private affairs, and, with Major L'Enfant and others, with the location of the new seat of government, on the banks of the Potomac. On Thursday, the last day of June (1791), he started for Philadelphia by way of Frederick, York, and Lancaster, and arrived at the presidential residence about noon on the 6th of July, having been absent nearly three months, and during that period performed a journey of 1,887 miles." [2]

Washington was highly pleased with the result of his observations during this tour. In a letter to Hamilton (June 13th), from Mount Vernon on his return, we have occasion to notice the benefit he derived from his habits of method and forethought in any undertaking which he contemplated. "My return to this place," he writes, "is sooner than I expected, owing to the uninterruptedness of my journey by sickness, from bad weather, or accidents of any kind whatsoever. Having obtained, before I left Philadelphia, the most accurate accounts I could get there of the places and roads through and by which I was to perform my tour, and the distances between the former, I formed my line of march accordingly, fixing each day's journey and the day to halt; from neither of which have I departed in a single instance, except staying, from a particular circumstance, two days in Columbia, and none at Charlotte, instead of one at each, and crossing James river at Carter's ferry, in place of Taylor's, as was my original intention. But the improbability of performing a tour of 1,700 miles (I have already rode more) with the same set of horses, without encountering any accident, by which a deviation would be rendered unavoidable, appeared so great, that I allowed eight days for casualties, and six to refresh at this place, when I should have returned to it. None of the former having happened, accounts for the fourteen days I shall remain here before the meeting of the commissioners." [3]

In relation to this tour in the southern States Marshall says: "In passing through them he was received universally with the same marks of affectionate attachment which he had experienced in the northern and central parts of the Union. To the sensibilities which these demonstrations of the regard and esteem of good men could not fail to inspire, was added the high gratification produced by observing the rapid improvements of the country, and the advances made by the government in acquiring the confidence of the people." The numerous letters written by him after his return to Philadelphia, attest the agreeable impressions made by these causes. "In my late tour through the southern States," said he, in a letter of the 28th of July, to Mr. Gouverneur Morris, "I experienced great satisfaction in seeing the good effects of the general government in that part of the Union. The people at large have felt the security which it gives, and the equal justice which it administers to them. The farmer, the merchant, and the mechanic have seen their several interests attended to, and from thence they unite in placing a confidence in their representatives, as well as in those in whose hands the execution of the laws is placed. Industry has there taken place of idleness, and economy of dissipation. Two or three years of good crops, and a ready market for the produce of their lands, have put everyone in good humor, and, in some instances, they even impute to the government what is due only to the goodness of Providence.

"The establishment of public credit is an immense point gained in our national concerns. This, I believe, exceeds the expectation of the most sanguine among us; and a late instance, unparalleled in this country, has been given of the confidence reposed in our measures, by the rapidity with which the subscriptions to the Bank of the United States were filled. In two hours after the books were opened by the commissioners the whole number of shares was taken up, and 4,000 more applied for than were allowed by the institution. This circumstance was not only pleasing, as it related to the confidence in government, but also as it exhibited an unexpected proof of the resources of our citizens."

This visit had undoubtedly some tendency to produce the good disposition which Washington observed with so much pleasure. The affections are, perhaps, more intimately connected with the judgment than we are disposed to admit; and the appearance of the chief magistrate of the Union, who was the object of general love and reverence, could not be without its influence in conciliating the minds of many to the government he administered, and to its measures. But this progress toward conciliation was, perhaps, less considerable than was indicated by appearances. The hostility to the government, which was coeval with its existence, though diminished, was far from being subdued; and under this smooth exterior was concealed a mass of discontent, which, though it did not obtrude itself on the view of the man who united almost all hearts, was active in its exertions to effect its objects.

The difficulties which must impede the recruiting service in a country where coercion is not employed, and where the common wages of labor greatly exceed the pay of a soldier, protracted the completion of the regiments to a late season of the year, but the summer was not permitted to waste in total inaction.

The act passed at the last session for the defense of the frontiers, in addition to its other provisions, had given to the President an unlimited power to call mounted militia into the field. Under this authority two expeditions had been conducted against the villages on the Wabash, in which a few of the Indian warriors were killed, some of their old men, women, and children were made prisoners, and several of their towns and fields of corn were destroyed. The first was led by General Scott, in May, and the second by General Wilkinson, in September. These desultory incursions had not much influence on the war.

It was believed in the United States that the hostility of the Indians was kept up by the traders living in their villages. These persons had, generally, resided in the United States, and, having been compelled to leave the country, in consequence of the part they had taken during the war of the Revolution, felt the resentments which banishment and confiscation seldom fail to inspire. Their enmities were ascribed by many, perhaps unjustly, to the temper of the government in Canada; but some countenance seemed to be given to this opinion by intelligence that, about the commencement of the preceding campaign, large supplies of ammunition had been delivered from the British posts on the lakes to the Indians at war with the United States. While Washington was on his southern tour, he addressed a letter to the Secretary of State, to be communicated to Colonel Beckwith, who still remained in Philadelphia as the informal representative of his nation, in which he expressed his surprise and disappointment at this interference, by the servants or subjects of a foreign State, in a war prosecuted by the United States for the sole purpose of procuring peace and safety for the inhabitants of their frontiers.

On receiving this communication Colonel Beckwith expressed his disbelief that the supplies mentioned had been delivered; but, on being assured of the fact, he avowed the opinion that the transaction was without the knowledge of Lord Dorchester, to whom he said he should communicate, without delay, the ideas of the American government on the subject.

On the 24th of October (1791) the second Congress assembled in Philadelphia. In his speech, at the opening of the session, the President expressed his great satisfaction at the prosperous situation of the country, and particularly mentioned the rapidity with which the shares in the Bank of the United States were subscribed, as "among the striking and pleasing evidences which presented themselves, not only of confidence in the government, but of resources in the community."

Adverting to the measures which had been taken in execution of the laws and resolutions of the last session, "the most important of which," he observed, "respected the defense and security of the western frontiers," he had, he said "negotiated provisional treaties and used other proper means to attach the wavering, and to confirm in their friendship the well-disposed tribes of Indians. The means which he had adopted for a pacification with those of a hostile description having proved unsuccessful, offensive operations had been directed, some of which had proved completely successful, and others were still depending. Overtures of peace were still continued to the deluded tribes, and it was sincerely to be desired that all need of coercion might cease, and that an intimate intercourse might succeed, calculated to advance the happiness of the Indians, and to attach them firmly to the United States."

In marking the line of conduct which ought to be maintained for the promotion of this object, he strongly recommended "justice to the savages, and such rational experiments for imparting to them the blessings of civilization, as might from time to time suit their condition;" and then concluded this subject with saying: "A system corresponding with the mild principles of religion and philanthropy, toward an unenlightened race of men whose happiness materially depends on the conduct of the United States, would be as honorable to the national character, as conformable to the dictates of sound policy."

After stating that measures had been taken for carrying into execution the act laying duties on distilled spirits, he added: "The impressions with which this law has been received by the community have been, upon the whole, such as were to have been expected among enlightened and well-disposed citizens, from the propriety and necessity of the measure. The novelty, however, of the tax, in a considerable part of the United States, and a misconception of some of its provisions, have given occasion, in particular places, to some degree of discontent. But it is satisfactory to know that this disposition yields to proper explanations, and more just apprehensions of the true nature of the law. And I entertain a full confidence that it will, in all, give way to motives which arise out of a just sense of duty, and a virtuous regard to the public welfare.

"If there are any circumstances in the law, which, consistently with its main design, may be so varied as to remove any well-intentioned objections that may happen to exist, it will comport with a wise moderation to make the proper variations. It is desirable, on all occasions, to unite with a steady and firm adherence to constitutional and necessary acts of government, the fullest evidence of a disposition, as far as may be practicable, to consult the wishes of every part of the community, and to lay the foundations of the public administration in the affections of the people."

The answers of the two houses noticed, briefly and generally, the various topics of the speech; and, though perhaps less warm than those of the preceding Congress, manifested great respect for the executive magistrate, and an undiminished confidence in his patriotic exertions to promote the public interests.

Soon after Congress was organized for business a warm debate sprung up in relation to the new apportionment of representatives, in accordance with the census, which had been taken in the preceding year, and the results of which were now ready for the consideration of Congress. The contest was not put to rest till the following April (1792); and not till the third bill was constructed did the two houses agree. The first proposal made by the representatives was to adopt the lowest ratio allowed by the constitution--30,000, which would have raised their numbers to 113, but there would have been large fractions of population in the northern States left unrepresented. The Senate, to lessen those disfranchised remnants, raised the ration to 33,000; but it was alleged that then there were fractions, though not so large, remaining in the southern States. The house would not accept the change, and reiterated its former proposal in a new bill, which also arranged the taking of another census before the expiration of ten years; but the Senate refused its assent to this, and, instead, increased the numbers to 120 by assigning representatives to the largest fractions. This, which violated the letter of the constitution, excited greater heat than ever, and the old threat of breaking up the Union was resorted to. A committee of conference was demanded at length, and in the end the scheme of the Senate was carried by a majority of two out of sixty votes. This decision has been remarked upon as having a curious bearing upon the old political controversies, the representatives of the southern States being found rejecting the amendment of the Senate, which embodied their own State sovereignty principle; and those of the North accepting it, although they were most in favor of the opposite principle of polity.

Washington very justly considered this mode of apportionment as contrary to the constitution, and on the 5th of April returned the bill to Congress, with his objections. The first was, that the constitution had prescribed that representatives should be apportioned among the several States according to their respective numbers, and that there was no one proportion or division which, applied to the respective States, would yield the number and allotment of representatives proposed by the bill; the second, that by the constitution, the number of representatives should not exceed one for every 30,000, which restriction, by the fair and obvious construction, was to be applied to the separate and respective States, and that the bill had allotted to eight States more than one for every 30,000. This was the first instance in which the President had exercised his veto upon any act of Congress. [4]

The bill, not being repassed by two-thirds of both houses, was rejected. A bill afterward passed, April 9, 1792, by a vote of thirty-four to thirty, apportioning the representatives agreeable to a ratio of one for every 33,000 in each State, which received the sanction of the President, and thus, this interesting part of the constitution was finally settled.

During this session of Congress an act passed for establishing a uniform militia.

Washington had manifested, from the commencement of his administration, a peculiar degree of solicitude on this subject, and had repeatedly urged it on Congress.

In his speech at the opening of the present session, he again called the attention of the Legislature to it, and at length a law was enacted, though it was less efficacious than the plan reported by General Knox, the Secretary of War.

In December (1791) intelligence was received by the President, and immediately communicated to Congress, that the American army had been totally defeated on the 4th of the preceding month.

Although the most prompt and judicious measures had been taken to raise the troops and to march them to the frontiers, they could not be assembled in the neighborhood of Fort Washington until the month of September, nor was the establishment even then completed.

The immediate objects of the expedition were to destroy the Indian villages on the Miami, to expel the savages from that country, and to connect it with the Ohio by a chain of posts which would prevent their return during the war.

On the 7th of September (1791) the regulars moved from their camp in the vicinity of Fort Washington, and marching directly north, toward the object of their destination, established two intermediate posts, Forts Hamilton and Jefferson, at the distance of rather more than forty miles from each other, as places of deposit and of security either for convoys of provisions which might follow the army, or for the army itself should any disaster befall it. The last of these works, Fort Jefferson, was not completed until the 24th of October, before which time reinforcements were received of about 360 militia. After placing garrisons in the forts the effective number of the army, including militia, amounted to rather less than 2,000 men. With this force the general continued his march, which was rendered both slow and laborious by the necessity of opening a road. Small parties of Indians were frequently seen hovering about them and some unimportant skirmishes took place. As the army approached the country in which they might expect to meet an enemy about sixty of the militia deserted in a body. This diminution of force was not in itself an object of much concern. But there was reason to fear that the example, should those who set it be permitted to escape with impunity, would be extensively followed, and it was reported to be the intention of the deserters to plunder convoys of provisions which were advancing at some distance in the rear. To prevent mischiefs of so serious a nature the general detached Major Hamtranck with the first regiment in pursuit of the deserters, and directed him to secure the provisions under a strong guard.

The army, consisting of about 1,400 effective rank and file, continued its march, and, on the 3d of November, encamped about fifteen miles south of the Miami villages. The right wing, under the command of General Butler, formed the first line and lay with a creek, about twelve yards wide, immediately in its front. The left wing, commanded by Lieutenant-Colonel Darke, formed the second, and between the two lines was an interval of about seventy yards. The right flank was supposed to be secured by the creek, by a steep bank, and by a small body of troops; the left was covered by a party of cavalry and by piquets. The militia crossed the creek and advanced about a quarter of a mile in front, where they also encamped in two lines. On their approach a few Indians who had shown themselves on the opposite side of the creek fled with precipitation.

At this place the general intended to throw up a slight work for the security of the baggage, and, after being joined by Major Hamtranck, to march, as unencumbered and as expeditiously as possible, to the villages he purposed to destroy.

In both of these designs he was anticipated. About half an hour before sunrise on the day following, just after the troops had been dismissed from the parade, an unexpected attack was made upon the militia, who fled in the utmost confusion, and rushing into camp through the first line of Continental troops, which had been formed the instant the first gun was discharged, threw them too into disorder. The exertions of the officers to restore order were not entirely successful. The Indians pressed close upon the heels of the flying militia and engaged General Butler with great intrepidity. The action instantly became extremely warm, and the fire of the assailants, passing round both flanks of the first line, was, in a few minutes, poured with equal fury on the rear division. Its greatest weight was directed against the center of each wing, where the artillery was posted, and the artillerists were mowed down in great numbers. Firing from the ground and from the shelter which the woods afforded, the assailants were scarcely seen but when springing from one cover to another, in which manner they advanced close up to the American lines and to the very mouths of the field pieces. They fought with the daring courage of men whose trade is war and who are stimulated by all those passions which can impel the savage mind to vigorous exertions.

While some of the American soldiers performed their duty with the utmost resolution, others seemed dismayed and terrified. Of this conduct the officers were, as usual, the victims. With a fearlessness which the occasion required, they exposed themselves to the most imminent dangers, and, in their efforts to change the face of affairs, fell in great numbers.

For several days the Commander-in-Chief had been afflicted with a severe disease, under which he still labored, and which must have greatly affected him, but, though unable to display that activity which would have been useful in this severe conflict, neither the feebleness of his body nor the peril of his situation could prevent his delivering his orders with judgment and with self-possession.

It was soon perceived that the American fire could produce, on a concealed enemy, no considerable effect, and that the only hope of victory was placed in the bayonet. At the head of the second regiment, which formed the left of the left wing, Lieutenant-Colonel Darke made an impetuous charge upon the enemy, forced them from their ground with some loss and drove them about 400 yards. He was followed by that whole wing, but the want of a sufficient number of riflemen to press this advantage deprived him of the benefit which ought to have been derived from this effort, and, as soon as he gave over the pursuit, the Indians renewed their attack. In the meantime General Butler was mortally wounded, the left of the right wing was broken, the artillerists almost to a man killed, the guns seized, and the camp penetrated by the enemy. With his own regiment and with the battalions commanded by Majors Butler and Clarke, Darke was ordered again to charge with the bayonet. These orders were executed with intrepidity and momentary success. The Indians were driven out of the camp, and the artillery recovered. But while they were pressed in one point by the bravest of the American troops, their fire was kept up from every other with fatal effect. Several times particular corps charged them, always with partial success, but no universal effort could be made, and in every charge a great loss of officers was sustained, the consequences of which were severely felt. Instead of keeping their ranks, and executing the orders which were given, a great proportion of the soldiers flocked together in crowds and were shot down without resistance. To save the remnant of his army was all that remained to be done, and about half past 9 in the morning General St. Clair ordered Lieutenant-Colonel Darke, with the Second regiment, to charge a body of Indians who had intercepted their retreat and to gain the road. Major Clarke, with his battalion, was directed to cover the rear. These orders were executed and a disorderly flight commenced. The pursuit was kept up about four miles, when, fortunately for the surviving Americans, that avidity for plunder which is a ruling passion among savages, called back the victorious Indians to the camp, where the spoils of their vanquished foes were to be divided. The routed troops continued their flight to Fort Jefferson, a distance of about thirty miles, throwing away their arms on the road. At this place they met Major Hamtranck with the First regiment, and a council of war was called to deliberate on the course to be pursued. As this regiment was far from restoring the strength of the morning, it was determined not to attempt to retrieve the fortune of the day, and, leaving the wounded at Fort Jefferson, the army continued its retreat to Fort Washington.

In this disastrous battle the loss on the part of the Americans was very great when compared with the numbers engaged. Thirty-eight commissioned officers were killed upon the field, and 593 noncommissioned officers and privates were slain and missing. Twenty-one commissioned officers, several of whom afterward died of their wounds, and 242 noncommissioned officers and privates were wounded. Among the dead was the brave and much-lamented General Butler. This gallant officer had served through the war of the Revolution, and had, on more than one occasion, distinguished himself in a remarkable manner. In the list of those who shared his fate were the names of many other excellent officers who had participated in all the toils, the dangers, and the glory of that long conflict which terminated in the independence of their country. At the head of the list of wounded were Lieutenant-Colonels Gibson and Darke, Major Butler, and Adjutant-General Sargent, all of whom were veteran officers of great merit, who displayed their accustomed bravery on this unfortunate day. General St. Clair, in his official letter, observed: "The loss the public has sustained by the fall of so many officers, particularly of General Butler and Major Ferguson, cannot be too much regretted, but it is a circumstance that will alleviate the misfortune in some measure, that all of them fell most gallantly doing their duty."

From the weight of the fire and the circumstance of his being attacked nearly at the same time in front and rear, General St. Clair was of opinion that he was overpowered by numbers. The intelligence afterward collected would make the Indian force to consist of from 1,000 to 1,500 warriors. Of their loss no estimate could be made; the probability is that it bore no proportion to that sustained by the American army.

Nothing could be more unexpected than this severe disaster. The public had confidently anticipated a successful campaign and could not believe that the general who had been unfortunate had not been culpable.

General St. Clair requested with earnestness that a court-martial should sit on his conduct, but this request could not be granted, because the army did not furnish a sufficient number of officers of a grade to form a court for his trial on military principles. Late in the session a committee of the House of Representatives was appointed to inquire into the cause of the failure of the expedition, whose report, in explicit terms, exculpated St. Clair. This inquiry, however, was instituted rather for the purpose of investigating the conduct of civil than of military officers, and was not conducted by military men. More satisfactory testimony in favor of St. Clair is furnished by the circumstance that he still retained the undiminished esteem and good opinion of the President. [5]

The confidence of Washington in St. Clair, however, had been very severely shaken on his first receiving intelligence of his defeat. This fact is known by the recent publication of an anecdote communicated by Mr. Lear to the Hon. Richard Rush, and by him inserted in his "Washington in Domestic Life," as follows:

"An anecdote I derived from Colonel Lear shortly before his death in 1816," says Mr. Rush, "may here be related, showing the height to which his (Washington's) passion would rise yet be controlled. It belongs to his domestic life which I am dealing with, having occurred under his own roof, whilst it marks public feeling the most intense and points to the moral of his life. I give it in Colonel Lear's words as nearly as I can, having made a note of them at the time.

"Toward the close of a winter's day in 1791, an officer in uniform was seen to dismount in front of the President's in Philadelphia, and, giving the bridle to his servant, knocked at the door of his mansion. Learning from the porter that the President was at dinner, he said he was on public business and had dispatches for the President. A servant was sent into the dining-room to give the information to Mr. Lear, who left the table and went into the hall, where the officer repeated what he had said. Mr. Lear replied that, as the President's secretary, he would take charge of the dispatches and deliver them at the proper time. The officer made answer that he had just arrived from the western army, and his orders were to deliver them with all promptitude, and to the President in person, but that he would wait his directions. Mr. Lear returned and in a whisper imparted to the President what had passed. General Washington rose from the table and went to the officer. He was back in a short time, made a word of apology for his absence, but no allusion to the cause of it. He had company that day. Everything went on as usual. Dinner over, the gentlemen passed to the drawing-room of Mrs. Washington, which was open in the evening. The general spoke courteously to every lady in the room, as was his custom. His hours were early, and by 10 o'clock all the company had gone. Mrs. Washington and Mr. Lear remained. Soon Mrs. Washington left the room.

"The general now walked backward and forward slowly for some minutes without speaking. Then he sat down on a sofa by the fire, telling Mr. Lear to sit down. To this moment there had been no change in his manner since his interruption at table. Mr. Lear now perceived emotion. This rising in him, he broke out suddenly: 'It's all over! St. Clair's defeated--routed--the officers nearly all killed--the men by wholesale--the rout complete--too shocking to think of--and a surprise into the bargain!'

"He uttered all this with great vehemence. Then he paused, got up from the sofa, and walked about the room several times, agitated but saying nothing. Near the door he stopped short and stood still a few seconds, when his wrath became terrible.

"'Yes,' he burst forth, 'here on this very spot I took leave of him; I wished him success and honor. You have your instructions, I said, from the Secretary of War; I had a strict eye to them, and will add but one word--beware of a surprise! I repeat it--beware of a surprise! You know how the Indians fight us. He went off with that as my last solemn warning thrown into his ears. And yet! to suffer that army to be cut to pieces--hacked, butchered, tomahawked--by a surprise--the very thing I guarded him against! O God, O God, he's worse than a murderer! How can he answer it to his country! The blood of the slain is upon him--the curse of widows and orphans--the curse of Heaven!'

"This torrent came out in tones appalling. His very frame shook. It was awful said Mr. Lear. More than once he threw his hands up as he hurled imprecations upon St. Clair. Mr. Lear remained speechless--awed into breathless silence.

"The roused chief sat down on the sofa once more. He seemed conscious of his passion and uncomfortable. He was silent. His warmth beginning to subside, he at length said in an altered voice: 'This must not go beyond this room.' Another pause followed--a longer one--when he said in a tone quite low: 'General St. Clair shall have justice. I looked hastily through the dispatches, saw the whole disaster, but not all the particulars. I will receive him without displeasure; I will hear him without prejudice. He shall have full justice.'

"He was now, said Mr. Lear, perfectly calm. Half an hour had gone by. The storm was over, and no sign of it was afterward seen in his conduct or heard in his conversation. The result is known. The whole case was investigated by Congress. St. Clair was exculpated and regained the confidence Washington had in him when appointing him to that command. He had put himself into the thickest of the fight, and escaped unhurt, though so ill as to be carried on a litter, and unable to mount his horse without help."

This anecdote might, at first, seem discreditable to Washington, as exhibiting the mighty strength of his passions when aroused. But upon mature consideration it does him great honor, affording equal evidence of his power of self-control, his public spirit, his disinterestedness, and his candor.

The Indian war now assumed a still more serious aspect. There was reason to fear that the hostile tribes would derive a great accession of strength from the impression which their success would make upon their neighbors; and the reputation of the government was deeply concerned in retrieving the fortune of its arms, and affording protection to its citizens. The President, therefore, lost no time in causing the estimates for a competent force to be prepared and laid before Congress. In conformity with a report made by the Secretary of War, a bill was brought into the House of Representatives, directing three additional regiments of infantry and a squadron of cavalry to be raised, to serve for three years, if not sooner discharged. The whole military establishment, if completed, would amount to about 5,000 men. The additional regiments, however, were to be disbanded as soon as peace should be concluded with the Indians; and the President was authorized to discharge, or to forbear to raise any part of them, "in case events should, in his judgment, render his so doing consistent with the public safety."

This bill met with great opposition. A motion was made to strike out the section which authorized an augmentation of force. This led to a very animated debate, in which the opposition exhibited a determination to embarrass the administration by defeating even the most necessary and useful measures it might propose. The public spirit and good sense of the majority, however, prevailed. The motion for striking out the section was lost, and the bill was carried for the augmentation of force required by the executive.

The treasury was not in a condition to meet the demands upon it, which the increased expenses of the war would unavoidably occasion, and sources of additional revenue were to be explored. A select committee, to whom this subject was referred, brought in a resolution directing Mr. Hamilton, the Secretary of the Treasury, to report his opinion to the House, on the best mode of raising those additional supplies which the public service might require for the current year.

This proposition gave rise to a very animated debate.

It will be recollected that when the act for establishing the Treasury Department was under consideration, the clause which rendered it the duty of the secretary to digest and report plans for the improvement and management of the revenue, and for the support of public credit, was earnestly opposed. A large majority, however, was in favor of the principle, and, after being so modified as only to admit a report if required by the House, it was retained in the bill.

In complying with the various resolutions of Congress, calling for reports on subjects connected with his department, Hamilton had submitted plans which, having been profoundly considered, were well digested, and accompanied by arguments, the force of which it was difficult to resist. His measures were generally supported by a majority of Congress; and, while the high credit of the United States was believed to attest their wisdom, the masterly manner in which his reports were drawn, contributed to raise still higher that reputation for great talents which he had long possessed. To the further admission of these reports, it was determined, on this occasion, to make a vigorous resistance.

But the opposition was not successful. On taking the question the resolution was carried, thirty-one members voting in its favor, and twenty-seven against it.

The report made by Hamilton, in pursuance of this resolution, recommended certain augmentations of the duties on imports, and was immediately referred to the consideration of a committee of the whole House. Resolutions were then passed which were to form the basis of a bill; and which adopted, not only the principles, but, with the exception of a few unimportant alterations, the minute details of the report.

Before the question was taken on the bill a motion was made to limit its duration, the vote upon which marked the progress of opinion in the House respecting those systems of finance which were believed to have established the credit of the United States.

Hamilton had deemed it indispensable to the creation of public credit that the appropriations of funds for the payment of the interest, and the gradual redemption of the principal of the national debt, should be not only sufficient, but permanent also. A party was found in the first Congress who opposed this principle, and were in favor of retaining a full power over the subject in each branch of the Legislature, by making annual appropriations. The arguments which had failed in Congress appear to have been more successfully employed with the people. Among the multiplied vices which were ascribed to the funding system, it was charged with introducing a permanent and extensive mortgage of funds, which was alleged to strengthen unduly the hands of the executive magistrate, and to be one of the many evidences which existed of monarchical propensities in those who administered the government.

The report lately made by Hamilton, and the bill founded on that report, contemplated a permanent increase of the duties on certain specified articles, and a permanent appropriation of the revenue arising from them to the purposes of the national debt. Thirty-one members were in favor of the motion for limiting the duration of the bill, and only thirty against it. By the rules of the House, the speaker has a right first to vote as a member, and, if the numbers should then be equally divided, to decide as speaker. Being opposed to the limitation, the motion was lost by his voice, and Hamilton's measure was carried through in its original form.

On the 8th of May (1792), after an active and interesting session, Congress adjourned to the first Monday in November.

Among the bills passed at this session of Congress the most important were that for the apportionment of the representatives, and that for the augmentation of the military force, inasmuch as the discussion of these measures served to develop the political parties which had begun to divide Congress and the people. In apportioning the representatives many members of Congress endeavored to obtain the largest possible number, in order to preserve the rights of the States and check the power of the executive. On the same principles the army bill was opposed, as having a tendency to increase executive power and patronage, and thus endanger the liberties of the country.

Throughout the United States the party opposed to the constitution had charged its supporters with a desire to establish a monarchy on the ruins of Republican government; and the constitution itself was alleged to contain principles which would prove the truth of this charge. The leaders of that party had, therefore, been ready, from the instant the government came into operation, to discover, in all its measures, those monarchical tendencies which they had perceived in the instrument they opposed.

The salaries allowed to public officers, though so low as not to afford a decent maintenance to those who resided at the seat of government, were declared to be so enormously high, as clearly to manifest a total disregard of that simplicity and economy which were the characteristics of republics. [6]

The levees of the President, and the evening parties of Mrs. Washington, were said to be imitations of regal institutions, designed to accustom the American people to the pomp and manners of European courts. The Vice-President, too, was said to keep up the state and dignity of a monarch, and to illustrate, by his conduct, the principles which were inculcated in his political works.

The Indian war, they alleged, was misconducted, and unnecessarily prolonged, for the purposes of expending the public money, and of affording a pretext for augmenting the military establishment, and increasing the revenue.

All this prodigal waste of the money of the people was designed to keep up the national debt, and the influence it gave the government; which, united with standing armies and immense revenues, would enable their rulers to rivet the chains which they were secretly forging. Every prediction which had been uttered respecting the anti-Republican principles of the government, was said to be rapidly verifying, and that which was disbelieved as prophecy, was daily becoming history. If a remedy for these ills was not found in the increased representation of the people which would take place at the ensuing elections, they would become too monstrous to be borne; and when it was recollected that the division of opinion was marked by a geographical line, there was reason to fear that the Union would be broken into one or more confederacies.

These irritable symptoms had assumed appearances of increased malignity during the session of Congress which had just terminated; and, to Washington, who firmly believed that the Union and the liberty of the States depended on the preservation of the government, they were the more unpleasant and the more alarming because they were displayed in full force in his cabinet.

The feud between Jefferson and Hamilton, to which we have already referred, still continued in full force, and they were regarded, as in fact they were, respectively, the heads of the two parties. They disagreed not only on the internal affairs but on the foreign policy of the government: Jefferson having a leaning towards the Revolutionists of France, and Hamilton favoring a conciliatory policy toward Great Britain.

In all popular governments the press is the most ready channel by which the opinions and the passions of the few are communicated to the many; and of the press, the two great parties forming in the United States sought to avail themselves. The "Gazette of the United States" supported the systems of Hamilton, while other papers enlisted themselves under the banners of the opposition. Conspicuous among these was the "National Gazette," a paper edited by Philip Freneau, the poet, a clerk in the Department of State. The avowed purpose for which Jefferson patronized this paper was to present to the eye of the American people European intelligence derived from the "Leyden Gazette," instead of English papers; but it soon became the vehicle of calumny against the funding and banking systems; against the duty on home-made spirits, which was denominated an excuse, and against the men who had proposed and supported those measures. With, perhaps, equal asperity, the papers attached to the party which had defended these systems, assailed the motives of the leaders of the opposition.

This schism in his cabinet was a subject of extreme mortification to Washington. Entertaining a high respect for the talents, and a real esteem for the characters of both gentlemen, he was unwilling to part with either, and exerted all the influence he possessed to effect a reconciliation between them. In a letter of the 23d of August (1792), addressed to Jefferson, after reviewing the critical situation of the United States with respect to its external relations, he thus expressed himself on this delicate subject: "How unfortunate, and how much is it to be regretted then, that while we are encompassed on all sides with avowed enemies and insidious friends, internal dissensions should be harassing and tearing our vitals. The last, to me, is the most serious, the most alarming, and the most afflicting of the two, and, without more charity for the opinions of one another in governmental matters, or some more infallible criterion by which the truth of speculative opinions, before they have undergone the test of experience, are to be forejudged, than has yet fallen to the lot of fallibility, I believe it will be difficult, if not impracticable, to manage the reins of government, or to keep the parts of it together; for if, instead of laying our shoulders to the machine, after measures are decided on, one pulls this way, and another that, before the utility of the thing is fairly tried, it must inevitably be torn asunder; and, in my opinion, the fairest prospect of happiness and prosperity that ever was presented to man will be lost, perhaps forever.

"My earnest wish and my fondest hope, therefore, is, that instead of wounding suspicions and irritating charges, there may be liberal allowances, mutual forbearances, and temporizing yielding on all sides. Under the exercise of these, matters will go on smoothly; and, if possible, more prosperously. Without them everything must rub; the wheels of government will clog; our enemies will triumph, and, by throwing their weight into the disaffected scale, may accomplish the ruin of the goodly fabric we have been erecting.

"I do not mean to apply this advice, or these observations, to any particular person or character. I have given them in the same general terms to other officers of the government, because the disagreements which have arisen from difference of opinions and the attacks which have been made upon almost all the measures of government, and most of its executive officers, have for a long time past filled me with painful sensations, and cannot fail, I think, of producing unhappy consequences at home and abroad."

In a subsequent letter to Jefferson, in answer to one which enclosed some documents designed to prove that, though desirous of amending the constitution, he had favored its adoption, the President said: "I did not require the evidence of the extracts which you enclosed me, to convince me of your attachment to the constitution of the United States, or of your disposition to promote the general welfare of this country, but I regret, deeply regret, the difference of opinion which has arisen and divided you and another principal officer of the government, and wish devoutly there could be an accommodation of them by mutual yieldings.

"A measure of this sort would produce harmony and consequent good in our public councils, and the contrary will inevitably produce confusion and serious mischiefs--and for what? because mankind cannot think alike, but would adopt different means to attain the same end. For I will frankly and solemnly declare that I believe the views of both to be pure and well meant, and that experience only will decide with respect to the salubrity of the measures which are the subjects of this dispute.

"Why, then, when some of the best citizens of the United States, men of discernment, uniform and tried patriots, who have no sinister views to promote, but are chaste in their ways of thinking and acting, are to be found, some on one side and some on the other, of the questions which have caused these agitations--why should either of you be so tenacious of your opinions as to make no allowance for those of the other?

"I could and, indeed, was about to add more on this interesting subject, but will forbear, at least for the present, after expressing a wish that the cup which has been presented to us may not be snatched from our lips by a discordance of action, when I am persuaded there is no discordance in your views. I have a great, a sincere esteem and regard for you both, and ardently wish that some line could be marked out by which both of you could walk."

On the same subject Washington addressed a letter to Hamilton, from which the following is an extract:

"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 cannot 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 cannot fail, if persevered in, of pushing matters to extremity, and thereby tearing the machine asunder, that there might be mutual forbearance and temporizing 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 cannot 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."

These earnest endeavors to soothe the angry passions and to conciliate the jarring discords of the cabinet were unsuccessful. The hostility which was so much and so sincerely lamented sustained no diminution, and its consequences became every day more diffusive.

Among the immediate effects of these internal dissensions was the encouragement they afforded to a daring and criminal resistance which was made to the execution of the laws imposing a duty on spirits distilled within the United States.

To the inhabitants of that part of Pennsylvania which lies west of the Alleghany mountains this duty was, from local considerations, peculiarly odious; nor was their hostility to the measure diminished by any affection for the source in which it originated. The constitution itself had encountered the most decided opposition from that part of the State, and that early enmity to the government, which exerted every faculty to prevent its adoption, had sustained no abatement. Its measures generally, and the whole system of finance particularly, had been reprobated with peculiar bitterness by many of the most popular men of that district. With these dispositions a tax law, the operation of which was extended to them, could not be favorably received, however generally it might be supported in other parts of the Union. But when, to this pre-existing temper, were superadded the motives which arose from perceiving that the measure was censured on the floor of Congress as unnecessary and tyrannical; that resistance to its execution was treated as probable; that a powerful and active party, pervading the Union, arraigned with extreme acrimony the whole system of finance as being antagonistic to liberty, and, with all the passionate vehemence of conviction, charged its advocates with designing to subvert the republican institutions of America, we ought not to be surprised that the awful impressions, which usually restrain combinations to resist the laws, were lessened, and that the malcontents were emboldened to hope that those combinations might be successful.

The opposition to the duty on distilled spirits had been carried so far, and so daring had become the resistance to the law, as to require a proclamation from the President, warning all persons against unlawful combinations and proceedings tending to obstruct the operations of the laws. But such was the state of feeling that the proclamation produced no salutary effect.

Anxious to avoid extremities, the government resolved upon another course. Prosecutions were instituted against delinquents. The spirits distilled in the noncomplying counties were intercepted in their way to market and seized by the officers of the revenue, and the agents for the army were directed to purchase only those spirits on which the duty had been paid. Could the distillers have obeyed their wishes, these measures would have produced the desired effect. But, impelled by a furious multitude, they found it much more dangerous to obey the laws than to resist them.

Diplomatic intercourse had at length been opened with Great Britain, who had sent, on her own motion, Mr. George Hammond as minister Plenipotentiary to the United States. Mr. Hammond arrived at Philadelphia in the autumn of 1791, and soon after entered upon a long correspondence with the Secretary of State respecting the nonexecution of the treaty of peace. The British minister having entrusted to him only powers to negotiate, not to conclude, to make, not to adjust, complaints, the course of the discussion, and the principles avowed by the respective parties, speedily demonstrated the slight probability which existed of their being able to agree upon a commercial treaty.

The Indians in the Northwest still maintaining their attitude of hostility preparations for prosecuting the war with vigor were earnestly pressed. General Wayne was appointed to succeed St. Clair in the command, but the inducements to enter the service were so small that the ranks filled up very slowly and the meditated expedition could not be undertaken prudently during the present year. Meanwhile, the clamor against the war continued to be loud and violent. From respect for opinions extensively professed it was thought advisable to make still another effort to procure peace by a direct communication of the views of the executive. The fate of those who were employed in these efforts was still more to be lamented than their failure. Colonel Harden and Major Truman, two brave officers and estimable men, were severally dispatched with propositions of peace, and each was murdered by the savages.

During the session of Congress Thomas Pinckney was nominated minister plenipotentiary to England, and Gouverneur Morris as minister plenipotentiary to France. Both these nominations were confirmed by the Senate. William Short was appointed minister resident at the Hague and was commissioned, with Mr. Carmichael, to effect a treaty with Spain. Paul Jones, during the summer, was appointed a commissioner for treating with the Dey of Algiers on the subject of peace and the ransoming of American captives. The letter informing of his appointment did not, however, reach him, for Jones died at Paris on the 18th of July, 1792, in abject poverty and destitution.

In May (1792), Washington wrote to the Earl of Buchan, transmitting his portrait, painted by Mr. Robertson, which had been solicited by the earl. In the same letter he thanked the earl for a box made of the oak that sheltered William Wallace after the battle of Falkirk. In making this present the earl had requested Washington, in the event of his decease, to leave it to the man in his own country who should appear, in his judgment, to merit it best. Washington wisely decided otherwise, and, in his will, directed it to be returned to the Earl of Buchan.

On the 9th of May (1792), the day after the rising of Congress, Washington set out from Philadelphia for Mount Vernon, but returned early in June. In July he went again to Mount Vernon, accompanied by Mrs. Washington and her two little grandchildren, intending to remain there till near the meeting of Congress, which was to take place in November. During this short residence at his beloved home Washington had much to distract his attention from his favorite rural pursuits. He was in constant correspondence with the members of the cabinet and public affairs. To Hamilton he was writing about the resistance to the tax on spirituous liquors, on the dissension between him and Jefferson, and on politics; to General Knox, Secretary of War, on the preparations for Wayne's campaign against the Indians; to Jefferson, Secretary of State, on foreign affairs, on the troubles with the Spaniards in Florida, and on the Indian war, as well as on his quarrel with Hamilton, and to Randolph, Attorney-General, on the state of parties and the licentiousness of the press.

On the subject of newspaper abuse Washington appears to have felt a degree of sensitiveness which, at the present, is rare among public men. Hitherto he appears to have been personally free from this annoyance, but he was unwilling to see his administration calumniated by political demagogues.

Writing to Gouverneur Morris, the American minister in France (October 20, 1792), he says. "From the complexion of some of our newspapers foreigners would be led to believe that inveterate political dissensions exist among us, and that we are on the very verge of disunion, but the fact is otherwise. The great body of the people now feel the advantages of the general government, and would not, I am persuaded, do anything that should destroy it, but this kind of representations is an evil which must be placed in opposition to the infinite benefits resulting from a free press, and I am sure you need not be told that in this country a personal difference in political sentiments is often made to take the garb of general dissensions."

Besides the public business which pressed heavily on Washington during his present residence at Mount Vernon he found a new source of anxiety in the alarming illness of his nephew, George Augustine Washington, to whom the care of the estate had been entrusted since 1789, when the duties of the Presidency had called the chief to the seat of government. This gentleman had served in the Revolutionary War as aid to Lafayette, with the rank of major. Writing to Lafayette (June 10, 1792), Washington says: "I am afraid my nephew George, your old aid, will never have his health perfectly re-established. He has lately been attacked with the alarming symptom of spitting large quantities of blood, and the physicians give no hope of a restoration, unless it can be effected by a change of air and a total dereliction of business, to which he is too anxiously attentive. He will, if he should be taken from his family and friends, leave three fine children, two sons and a daughter. To the eldest of the boys he has given the name of Fayette, and a fine-looking child he is."

George Augustine Washington sunk rapidly after this and died at the residence of Colonel Bassett, where he had gone for a change of air, on the 5th of February, 1793. Washington, on hearing of his decease, wrote immediately from Philadelphia, to his widow, [7] condoling with her on the heavy loss, and inviting her to reside, with her children, at Mount Vernon.

In the latter part of October Washington returned to Philadelphia, in anticipation of the meeting of Congress.

On the 5th of November (1792), Congress again convened. In Washington's 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 endeavors," 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 depending, but a favorable one, though not to be despaired of, was not promised by anything 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 toward a pacific termination of the war, had been in itself deemed preferable to immature efforts."

The humane system which has since been pursued with partial success, 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 favorite object with the President, and the detailed view which was not 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 advisable, 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 cooperation 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 favor of systematic and effectual arrangements for discharging the public debt. But the subsequent proceedings of the Legislature did not fulfill 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.

On a motion made, directing the Secretaries of the Treasury and of War to attend the House and to give information, severe denunciations were poured forth against the unconstitutionality of subjecting the representatives to the control of the heads of the executive departments. The motions for requiring a report from Hamilton on a plan for redeeming the public debt, and for paying a debt owing to the bank, which were brought in by Mr. Fitzsimmons, renewed the contest, but, although Madison and others opposed the reference to the Secretary of the Treasury, the resolution was carried.

Hamilton's report proposed a plan for the redemption of the debt. But the expenses of the Indian war rendering it unsafe, in his opinion, to rest absolutely on the existing revenue, he also proposed to extend the internal taxes to pleasure horses, or pleasure carriages, as might be deemed most advisable. For the reimbursement of the bank, he recommended that power be conferred to negotiate a loan for two million dollars--the dividends on the shares held by the government to be pledged for the interest, and, as the government paid six per cent, to the bank, he relied on the saving that would be effected by borrowing at a lower rate of interest. The consideration of this report was deferred on various grounds, and a motion was made to reduce the military establishment. The debate was long and earnestly contested, but the motion was rejected on the 5th of January, 1793.

A few weeks later another subject was introduced into the House which absorbed the attention of the members and put an end, for the present session, to every measure connected with the finances.

Mr. Giles, on the 23d of January (1793), moved several resolutions, requiring information, among other things, on various points growing out of the loans authorized by Congress in August, 1790. The object was to inculpate the Secretary of the Treasury respecting the management and application of these loans, and of the revenue generally. Mr. Giles indulged himself in remarks which clearly showed the animus of his proceedings, and it was his determination to prove to the House that there was a large balance in the funds unaccounted for. The resolutions were agreed to without debate, as was only due to Mr. Hamilton, and soon after, three successive and able reports were sent in, containing the information required.

In these reports a full exposition was given of the views and motives of the secretary, in the conduct of the treasury department. It is also evident that Hamilton felt aggrieved at this attack upon his reputation, and he did not hesitate to use language of great plainness and severity, observing in conclusion: "Thus have I not only furnished a just and affirmative view of the real situation of the public accounts, but have likewise shown, I trust, in a conspicuous manner, fallacies enough in the statements, from which the inference of an unaccounted-for balance is drawn, to evince that it is one tissue of error."

But the matter did not end here. Mr. Giles, on the 28th of February (1793), submitted to the House a series of nine resolutions, containing charges against the secretary. The substance of them was, that he had failed to give Congress information, in due time, of moneys drawn from Europe; that he had violated the law of the 4th of August, 1790, by an unauthorized application of money borrowed under it; that he had drawn part of the money into the United States, without any instructions from the President; that he had exceeded his authority in making loans, under the acts; that, without instructions from the President, he had drawn more of the money borrowed in Holland than he was authorized by those acts, and that he had been guilty of an indecorum to the House, in undertaking to judge its motives in calling for information. The debate was continued until the night of March 1st (1793), and was characterized by unusual bitterness. It terminated in a rejection of the resolutions and consequently in an entire exculpation of Hamilton from all just censure. The highest number voting in favor of any one of the resolutions was sixteen.

"The whole of the session was spent," says Mr. Gibbs, "in sifting the conduct of the secretary. [8] The investigation served one purpose of the opposition--it prevented any question being taken on the report. It seems somewhat anomalous, that a party which had charged the administration with a wish to perpetuate the debt, should thus have thwarted its measures to discharge it; and an explanation of the fact can only be found in a fixed determination to break down the secretary."

The other business of the session may be briefly stated. The claim for compensation for loss on the certificates in which they had been paid, advanced by the officers of the old Continental army, was rejected. An act respecting "fugitives from justice, and persons escaping from the service of their masters," was passed, early in February, by a vote of forty-eight to seven. The trade with the Indians was regulated, and an attempt was made to initiate an amendment to the constitution, because the State of Georgia, sued in the Federal courts for a debt due to a citizen of another State, had suffered judgment by default. And nearly two millions of dollars were appropriated to the public service, in addition to the almost three millions more for interest on the debt. On Saturday, the 3d of March (1793), a constitutional period was put to the existence of the present Congress. The members separated with obvious symptoms of extreme irritation. "Various causes," says Marshall, "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 denounced. 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 he 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 fervor 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 which were paid to the President, must soon include him more pointedly in its strictures.

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.

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 labors 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 judge 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 generally. There seems to be something infectious in the example of a powerful and enlightened nation verging toward democracy, which impose 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 favor of the institutions of Great Britain, and the partiality of America in favor 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, [9] 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.

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 neighbors, 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.

1. Footnote: Griswold, "Republican Court."

2. Footnote: "Republican Court."

3. Footnote: For designating the site of the new seat of government. Washington remained with the commissioners several days engaged in this business.

4. Footnote: The following is the message which he delivered on this occasion:

GENTLEMEN OF THE HOUSE OF REPRESENTATIVES:

I have maturely considered the act passed by the two Houses, entitled "An act for the apportionment of representatives among the several States according to the first enumeration," and I return it to your House, wherein it originated, with the following objections.

First. The constitution has prescribed that representatives shall be apportioned among the several States according to their respective numbers, and there is no proportion or divisor which, applied to the respective numbers of the States, will yield the number and allotment of representatives proposed by the bill.

Secondly. The constitution has also provided that the number of representatives shall not exceed one for thirty thousand--which restriction is by the context, and by fair and obvious construction, to be applied to the separate and respective numbers of the States--and the bill has allotted to eight of the States more than one for thirty thousand.

5. Footnote: Marshall.

6. Footnote: The salary of the Secretary of State, which was the highest, was $3,500; that of the Secretary of the Treasury was $2,000. Hamilton was finally obliged to resign, to gain a living.

7. Footnote: Mrs. Washington's maiden name was Frances Bassett. She was the daughter of Colonel Bassett, an intimate friend of Washington.

8. Footnote: "Administrations of Washington and Adams."

9. Footnote: 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."

Spotted a typo or a problem in this chapter? Tell us