[Sidenote: Surrender of Yorktown.]

With renewed spirit the Americans in 1781 took the offensive in the Carolinas under Greene. Cornwallis moved northward to the peninsula of Yorktown. The moment had come. By a rapid movement of Washington's army and the effective cooperation of the French fleet, Cornwallis was trapped at Yorktown; and on Oct. 19, 1781, he surrendered, with eight thousand men. It was the first decided victory which Washington had himself gained. It made evident to England the hopelessness of continuing the contest; and in November, 1782, peace was made.

[Sidenote: Reasons for American success.]

The Revolutionary war was successful because the English underestimated the strength of the movement at the beginning, because the English commanders were incapable, and because in the later period, when the British were aroused, their strength was diverted by the dangerous European war. It was gained finally by the firmness and resolution of the people, and that resolution is typified in Washington. His patience and endurance, his ability to hold in check large forces with small armies imperfectly equipped, his power to keep the country up to the support of the war, mark him as one of the world's great military commanders.

43. FINANCES OF THE REVOLUTION (1775-1783).

[Sidenote: Resources.]

The successful termination of the war is the more remarkable because it was fought by a government almost without means, and finally without credit. The saddest part of the suffering at Valley Forge is that it was unnecessary. There was always food and clothing in the country, but Congress had no money to buy it. Congress had no power to lay taxes, and the colonies, most of which were spending large sums on their own militia, were not disposed to supply the general treasury. The pay of the Continental troops and of the general officers, the furnishing of equipments and stores, the support of foreign embassies, were burdens that must be borne, and Congress must find the means.

[Sidenote: Continental currency.]

The most successful and the most disastrous resource was the issue of paper-money. When, in June, 1775, it was proposed to meet the general expenses by putting forth two millions in Continental notes, there was but feeble objection. It was the only way of raising money which seemed to cost nobody anything. In the course of a year four millions more followed. Congress, with commendable foresight, called upon each colony to pay in a sum sufficient to retire its proportion of the issue. Nothing was paid, and the printing-press was again put in motion, until in January, 1779, fifty millions were issued at a time. In November, 1779, the limit of two hundred millions was reached. In order to float these notes the States passed acts making them a legal tender; but at the same time they were themselves issuing large sums in a similar currency. Counterfeits abounded, but it soon became a matter of little difference whether a bill was good or bad, since the best was worth so little. From the time of the capture of New York by the British in 1776 the notes began to fall. In 1778 the news of the French alliance caused a little rise; but in 1781 the bills fell to a point where a thousand dollars exchanged for one dollar in specie, and a Philadelphia wag made out of the notes a blanket for his dog. The Continental currency was never redeemed, and was consequently a forced tax on those who were least able to pay, since every holder lost by its depreciation while in his hands.

[Sidenote: Loans.]

The absolutely necessary expenditures, without which no army could make head against the British, were from twenty to twenty-five million specie dollars each year. Of this the Continental bills furnished on an average some eight or ten millions. Another method of raising money was that of borrowing on funded loans. Great schemes were put forth. The United States were to borrow at four per cent; they were to borrow two millions; they were to borrow ten millions; they were to borrow twenty millions. The result was that in three years $181,000 was thus loaned, and up to the end of the war but $1,600,000,—hardly a hundredth part of the necessary means. Failing to raise money directly, recourse was bad to the so-called loan-office certificates. These were issued to creditors of the government, and bore interest. The greater part of the military supplies were paid for in this extravagant and demoralizing fashion, and in 1789 they had to be settled, with accumulated interest amounting to nearly fifty per cent. Better success was had in Europe. No private banker would lend money to a set of rebels not recognized by any government as independent, but the French and Spanish governments were willing to advance both money and stores. In this way the United States received about three million dollars.

[Sidenote: Requisitions.]

When it was evident that the domestic loan had failed, Congress called upon the States to furnish five millions of dollars, apportioned among them according to their importance. These requisitions were repeated at intervals during the Revolution, but always with the same effect. Not a fourth part of the sums asked for was paid by the States. A system of "specific supplies" was adopted in 1778, by which the States were allowed to pay their quotas in kind. It added a new source of confusion, and brought no more revenue.

[Sidenote: Miscellaneous resources.]

Every device that the government could put into operation for raising money was eventually tried. A lottery brought considerable sums into the treasury, the supplies for the army were seized at Valley Forge and elsewhere, and paid for in certificates. Bills were drawn on foreign ministers for funds which it was hoped they might have in hand by the time the bills reached them, and the government bought, and sent abroad to meet its indebtedness, cargoes of tobacco and other products.

[Sidenote: Speculation.]

The financial burdens of the government were increased by a spirit of extravagance, speculation, and even of corruption. Washington wrote, "Unless extortion, forestalling, and other practices which have ... become exceedingly prevalent can meet with proper checks, we must inevitably sink under such a load of accumulated oppressions." The whole cost of the war is estimated at one hundred and thirty-five millions. Of this about one hundred millions had been raised through the Continental bills and other devices. About thirty-five millions remained as a national debt.

44. INTERNAL DIFFICULTIES (1775-1782).

[Sidenote: Weakness of Congress.]

That Congress was able to make no better provision for the finances was due to a decline in its prestige rather than to a lack of interest in the war. Some of the ablest members were drawn into military service, or sent on foreign missions. The committee system made it inefficient, and it was difficult to bring it to a decision upon the most important matters. In vain did Washington storm, and implore it to act quickly and intelligently on military matters of great moment. Its relations with the States changed as the war advanced. Dec. 7, 1776; Congress made Washington for a time almost a dictator. In 1779 the Virginia legislature formally denied that it was "answerable to Congress for not agreeing with any of its recommendations."

[Sidenote: The loyalists.]

To the frequent unfriendly relations with the States was added the constant conflict with the loyalists. Throughout the colonies the adherents to England or the sympathizers with the English government were under grave suspicion. Many of them left the country; some enlisted with the British, and returned to fight against their own land. A body of loyalists led the hostile Indians into the Wyoming valley to torture and to murder. The loyalists who remained at home were often the medium of communication with the British lines. Some of them, like Dr. Mather Byles of Boston, and George Watson of Plymouth, were allowed to remain on condition that they held their tongues. Washington was so exasperated with them that he termed them "execrable parricides." In every State the loyalists were feared and hated. When the British invaded the country, the loyalists joined them; when the British were repulsed, thousands of them were obliged to abandon their homes.

[Sidenote: Dissensions in States.]

The finances of the States were as much disturbed as those of the Union. Their paper-money issues shared the same fate. Their debts, funded and unfunded, increased. They were harassed by internal divisions, even among the patriots. In Massachusetts, Berkshire County remained until 1780 practically independent, and the county convention did not scruple to declare to the General Court that there were "other States which will, we doubt not, as bad as we are, gladly receive us."

45. FORMATION OF A CONSTITUTION (1776-1781).

[Sidenote: Preliminaries of a constitution.] [Sidenote: Articles submitted.]

One cause of the weakness of Congress and the disorders in the States was the want of a settled national government. The Continental Congress understood that it was but a makeshift, and on the day when a committee was formed to frame a Declaration of Independence, another committee was appointed to draw up Articles of Confederation. It reported July 12, 1776; but the moment discussion began, it was seen that there were almost insuperable difficulties. The first was the question whether each State should have one vote, as in the existing government, or whether each should cast a number of votes in proportion to its population; the second question was how revenue should be raised and assessed; the third was how the western country should be held; the fourth was what powers should be given to the general government, and what retained by the States; the fifth, how disputes within the Union should be settled. When, on Nov. 15, 1777, Congress had finally adopted a draft of Articles of Confederation, the decline of its power and influence was reflected in the proposed instrument of government. On the question of representation, the rule of vote by States was continued. The only taxation was a formal system of requisitions on the States. Here the question of slavery was unexpectedly brought in: the Northern States desired to apportion the taxes according to total population, including slaves. "Our slaves are our property" said Lynch, of South Carolina; "If that is debated, there is an end of the Confederation. Being our property, why should they be taxed more than sheep?" A compromise was reached, by which requisitions were to be assessed in proportion to the value of lands in the several States. The question of control of territory was not distinctly settled by the articles. The powers to be conferred upon the Confederation were practically limited to war, peace, and foreign affairs. A cumbrous system of arbitration courts was established for disputes between States, but there was no machinery for settling quarrels between States and the national government.

[Sidenote: The Western lands.] [Sidenote: Maryland will not ratify.] [Sidenote: Articles in force.]

Congress had spent a year and a half in forming the Articles of Confederation. The States took three and a half years in ratifying them. Ten States early signified their willingness to adopt them. Three others stood out because the Western lands were left in dispute. In 1776 when the British authority had been declared no longer existent in the colonies, each of the new States considered itself possessed of all the British lands which at any time had been included within its boundary; and in 1778 Virginia had captured the few British posts northwest of the Ohio, and had shortly after created that immense region, now the seat of five powerful States, into the "County of Illinois." On the other hand, it was strongly urged that the Western territory had been secured through a war undertaken by all the colonies for the whole country, and that the lands ought to be reserved to reward the continental soldiers, and to secure the debt of the United States. For the sake of union, two of the three dissatisfied commonwealths agreed to the Articles of Confederation. One State alone stood firm: Maryland, whose boundaries could not be so construed as to include any part of the lands, refused to ratify unless the claims of Virginia were disallowed; Virginia and Connecticut proposed to close the Union without Maryland; Virginia even opened a land office for the sale of a part of the territory in dispute; but threats had no effect. New York, which had less to gain from the Western territory than the other claimants, now came forward with the cession of her claims to the United States; and Virginia, on Jan. 2, 1781, agreed to do the like. On March 1, 1781, it was announced that Maryland had ratified the Articles of Confederation, and they were duly put into force. From that date the Congress, though little changed in personnel or in powers, was acting under a written constitution, and the States had bound themselves to abide by it.

46. PEACE NEGOTIATED (1779-1782).

[Sidenote: Instructions of 1779.] [Sidenote: Instructions of 1781.]

Thus the settlement of the final terms of peace fell to the new government, but rather as a heritage than as a new task. Instructions issued by Congress in 1779 had insisted, as a first essential, on an acknowledgment by Great Britain of the independence of the United States. Next, adequate boundaries were to be provided; the United States must extend as far west as the Mississippi, as far south as the thirty-first parallel, and as far north as Lake Nipissing. The third desideratum was undisturbed fishery rights on the banks of Newfoundland. Finally, it was expected that a treaty of commerce would be yielded by Great Britain after the peace was made. In 1781 Virginia, alarmed by Cornwallis's invasion, succeeded in carrying a very different set of instructions. The only essential was to be the substantial admission that America was independent; in all else the treaty was to be made in a manner satisfactory to the French minister of foreign affairs.

[Sidenote: The king consents to peace.] [Sidenote: Independence.] [Sidenote: Boundary.] [Sidenote: Instructions ignored.]

Before peace could be reached it was necessary to break down the iron opposition of the king. On Feb. 28, 1781 Conway's motion, looking to the cessation of the war, was adopted by Parliament. "The fatal day has come," said the king. It was not merely his American policy which had failed; the party of the "King's Friends" was beaten; North resigned; and after twelve years of strenuous opposition, the king was obliged to accept a Whig ministry, which he detested, and to let it negotiate for peace. A part of the ministry still cherished the delusion that the Americans would accept terms which did not leave them independent. The firmness of the American envoys was effectual; a royal commission was at last addressed to Oswald, authorizing him to treat with "the commissioners of the United States of America" in Paris. Then came the important question of boundary. Without the thirteen colonies the possession of the Floridas was of little value to England, and they had been reduced by a Spanish expedition in 1781; they were therefore returned to Spain. For a long time the English insisted that a neutral belt of Indian territory should be created west of the mountains. That point was finally waived; the Americans withdrew their pretensions to the territory north of Lake Erie; and the St. Lawrence River system, from the western end of Lake Superior to the forty-fifth parallel, was made the boundary. From the forty-fifth parallel to the sea, the boundary was described as following the "highlands which divide those rivers that empty themselves into the St. Lawrence from those which fall into the Atlantic Ocean." The country was little known; the commissioners were probably confused; and the ground was thus prepared for a dispute which lasted fifty-nine years. In the course of the negotiations the American ambassadors, Jay, Adams, Franklin, and Laurens, became suspicious of the French court. There is now some reason for believing that Vergennes, the French minister, had dealt honorably with the American interests, and could have secured excellent terms. "Would you break your instructions?" asked one of the fellow-commissioners of Jay. "I would," he replied, "as I would break this pipe." Thenceforward the Americans dealt directly and solely with the English envoys.

[Sidenote: The Mississippi.] [Sidenote: The fisheries.]

The next question to be settled was the claim of the English to the navigation of the Mississippi, which was supposed to reach northward into British territory. It was yielded; the Americans, however, received no corresponding right of navigation through Spanish territory to the sea. Next came the fisheries. As colonists the New Englanders had always enjoyed the right to fish upon the Newfoundland banks, and to land at convenient spots to cure their fish. Adams, representing New England, insisted that "the right of fishing" should be distinctly stated; he carried his point.

[Sidenote: Loyalists.] [Sidenote: Debts.] [Sidenote: Slaves.] [Sidenote: Treaty signed.]

The main difficulties disposed of, three troublesome minor points had to be adjusted. The first was the question of loyalists. They had suffered from their attachment to the British government; they had been exiled; their estates had been confiscated, their names made a by-word. The British government first insisted, and then pleaded, that the treaty should protect these persons if they chose to return to their former homes. The Americans would agree only that Congress should "earnestly recommend" to the thirteen legislatures to pass Relief Acts. Then came the question of private debts due to the British merchants at the outbreak of the Revolution, and still unpaid. Some of the American envoys objected to reviving these obligations; but Adams, when he arrived, set the matter at rest by declaring that he had "no notion of cheating anybody." Finally came the question of the treatment of the slaves who had taken refuge with the British armies; and the English commissioners agreed that the British troops should withdraw "without causing any destruction or the carrying away any negroes or other property of the American inhabitants." On Nov. 30, 1782, a provisional treaty was signed; but it was not until Sept. 3, 1783 after the peace between France and England had been adjusted, that the definitive treaty was signed, in precisely the same terms.

With great difficulty a quorum was assembled, and on Jan. 14, 1784, it was duly ratified by Congress. The treaty was a triumph for American diplomacy. "It is impossible," says Lecky, the ablest historian of this period, "not to be struck with the skill, hardihood, and good fortune that marked the American negotiations. Everything the United States could with any show of plausibility demand from England, they obtained."

47. POLITICAL EFFECTS OF THE WAR.

[Sidenote: American union.]

Thus in seven years America had advanced from the condition of a body of subordinate colonies to that of a nation. Furthermore, the people, who at the beginning of the struggle were scattered and separated, and who scarcely knew each other, were now united under a government; the Confederation, however weak, was the strongest federation then in existence. The people had learned the lesson of acting together in a great national crisis, and of accepting the limitations upon their governments made necessary by the central power.

[Sidenote: Union not perfected.]

The spirit of the new nation was now to be subjected to a test more severe than that of the Revolution. Danger banded the colonies together during the war. Would they remain together during peace? Sectional jealousies had broken out in Congress and in camp; and in the crisis of 1777 an effort had been made to displace Washington. There had been repeated instances of treachery among military officers and among foreign envoys. The States were undoubtedly much nearer together than the colonies had been; they had accepted a degree of control from the general government which they had refused from England; but they were not used to accept the resolutions of Congress as self-operative. Their conception of national government was still that national legislation filtrated from Congress to the State legislatures, and through that medium to the people.

[Sidenote: Frontier difficulties.]

The interior of the country was in a confused and alarming state. The territorial settlement with the States had only begun, and was to be the work of years. The Indians were a stumbling-block which must be removed from the path of the settlers. Within the States there were poverty, taxation, and disorder, and a serious discontent.

[Sidenote: Common institutions.]

Nevertheless, the system of the colonies was a system of union. The State governments all rested on the same basis of revolution and defiance of former established law; but when they separated from England they preserved those notions of English private and public law which had distinguished the colonies. The laws and the governments of the States were everywhere similar. The States were one in language, in religion, in traditions, in the memories of a common struggle, and in political and economic interests.

[Sidenote: Trade hampered.]

Commercially, however, the situation of the country was worse than it had been in three quarters of a century. Though the fisheries had been saved by the efforts of Adams, the market for the surplus fish was taken away. As colonies they had enjoyed the right to trade with other British colonies; as an independent nation they had only those rights which England chose to give. For a time the ministry seemed disposed to make a favorable commercial treaty; but in 1783 an Order in Council was issued cutting off the Americans from the West Indian trade; and it was not until 1818 that they recovered it.

[Sidenote: Republican government encouraged.] A great political principle had been strengthened by the success of the Revolution: republican government had been revived in a fashion unknown since ancient times. The territory claimed by Virginia was larger than the island of Great Britain. The federal republic included an area nearly four times as large as that of France. In 1782 Frederick of Prussia told the English ambassador that the United States could not endure, "since a republican government had never been known to exist for any length of time where the territory was not limited and concentred." The problem was a new one; but in communities without a titled aristocracy, which had set themselves against the power of a monarch, and which had long been accustomed to self-government, the problem was successfully worked out. The suffrage was still limited to the holders of land; but the spirit of the Revolution looked towards abolishing all legal distinctions between man and man; and the foundation of later democracy, with its universal suffrage, was thus already laid.

[Sidenote: Influence of rights of man.]

The influence of the republican spirit upon the rest of the world was not yet discerned; but the United States had established for themselves two principles which seriously affected other nations. If English colonies could by revolution relieve themselves from the colonial system of England, the French and Spanish colonies might follow that example; and forty years later not one of the Spanish continental colonies acknowledged the authority of the home government. The other principle was that of the rights of man. The Declaration of Independence contained a list of rights such as were familiar to the colonists of England, but were only theories elsewhere. The success of the Revolution was, therefore, a shock to the system of privilege and of class exemptions from the common burdens, which had lasted since feudal times. The French Revolution of 1789 was an attempt to apply upon alien ground the principles of the American Revolution.



CHAPTER V.

THE CONFEDERATION (1781-1788)

48. REFERENCES

BIBLIOGRAPHIES.—Justin Winsor, Narrative and Critical History, VI. 745, VII. 199-236, 527-543, VIII. 491;, notes to Curtis, Bancroft, McMaster, and Pitkin; W. F. Foster, References to the Constitution, 12-14; J. J. Lalor, Cyclopedia, I. 577; Channing and Hart, Guide, secs. 142, 149-153.

HISTORICAL MAPS.—Nos. 1, 3, this volume ( Epoch Maps, Nos. 6, 7); Labberton, Atlas, lxvi.; Rhode, Atlas, No. xxviii.; Johnston, History of the United States for Schools, 133; Gordon American Revolution, I. frontispiece; B. A. Hinsdale, Old Northwest, I. 188, 201 (reprinted from MacCoun's Historical Geography), also I. frontispiece, and II. 393; Justin Winsor, Narrative and Critical History, VII. 140; school histories of Channing, Johnston, Scudder Thomas.

GENERAL ACCOUNTS.—Joseph Story, Commentaries, secs. 218-271; R. Hildreth, United States, III, 374-481; T. Pitkin, II. 9-36, 154-218; H. Von Hoist, United States, I. 1-46; Geo. Tucker, United States, I. 291-347; Justin Winsor, Narrative and Critical History, VII. ch. iii.; J. T. Morse, Franklin, 216-420; Abiel Holmes, Annals of America, II. 353-371; J. Schouler, United States, I. 1-30; Bryant and Gay, Popular History, IV. 79-99; F. A. Walker Making of a Nation, ch. 1; Edward Channing, United States 1761-1865. ch. iv.

SPECIAL HISTORIES.—G. T. Curtis Constitutional History, chs. v.-xiv. (History of the Constitution I. 214-347); George Bancroft, United States (last revision), VI. 5-194, History of the Constitution, I. 1- 266; John Fiske, Critical Period, 1-186; J. B. McMaster, United States, I. 103-416; J. F. Jameson Essays on the Constitution; T. Pitkin, United States, I. 283-422, II. 223; William B. Weeden, New England, II. chs. xxii., xxiii.; W. G. Sumner, Financier and Finances, II. chs. xvi.-xxvii.; B. A. Hinsdale, Old Northwest, chs. ix.-xvi.; H. B. Adams, Maryland's Influence; W. Hill, First Stages of the Tariff Policy; S. Sato, Public Land Question; Theodore Roosevelt. Winning of the West, III.

CONTEMPORARY ACCOUNTS.—Journals of Congress; Secret Journals; Madison's notes in H. D. Gilpin, Papers of James Madison, and in Elliot's Debates, V.; letters of Washington, Madison, John Jay, Hamilton, and Franklin, in their works; Thomas Paine, Public Good; Noah Webster, Sketches of American Policy; Pelatiah Webster, Dissertation on the Political Union; Brissot de Warville's Examen Critique [1784], and Nouveau Voyage [1788], (also in translation); Thomas Jefferson, Notes on Virginia.—Reprints in American History told by Contemporaries, II., American History Leaflets, Nos. 20, 22, 28.

49. THE UNITED STATES IN 1781.

[Sidenote: Army.] [Sidenote: Territory.]

The task thrown upon Congress in 1781 would have tried the strongest government in existence. An army of more than ten thousand men was under arms, and must be kept up until peace was formally declared, and then must be paid off. The territorial claims of the States and of the Union were still in confusion. Virginia roused the suspicion of the small States by making the promised cession in terms which Congress could not accept, and the other States had made no motion towards yielding their claims. Relations with the Indians were still confused. Superintendents of Indian affairs had been appointed, and in 1778 a treaty was negotiated with the Creeks; but the States, particularly Pennsylvania and Georgia, continued to make their own arrangements with Indian tribes.

[Sidenote: Finances.] [Sidenote: Commerce.] [Sidenote: General weakness.]

The finances of the country seemed to have reached their lowest ebb. An attempt was made to float a new issue of continental money at one dollar for forty of the old bills The new obligations speedily sank to the level of the old, and the country was practically bankrupt. The aid of the French was all that kept the government afloat (sec. 43). The return of peace was expected to restore American commerce to its old prosperity; but having gone to war principally because colonial commerce with other countries was restricted, the Americans found themselves deprived of their old freedom of trade with England. They were subject to discriminating duties in English ports, and were excluded from the direct trade with the English West Indies, which had been the chief resource the colonial ship- owners. The State governments were in debt, embarrassed, and beset with the social difficulties which come in the train of war. The disbanded troops were not accustomed to regular employment or to a quiet life; taxes were heavy and odious; the far Western settlements clamored to be set free from the States to which they belonged. Above all, the national government was weak, inefficient, and little respected by the army or the people at large.

60. FORM OF THE GOVERNMENT (1781-1788.)

[Sidenote: Congress.]

The first and fundamental defect of the government was in the organization of Congress. The Continental Congress had been a head without a body; under the Articles of Confederation, Congress was a body without a head. A single assembly continued to be the source of all national legislative, executive, and judicial power (sec. 37). As though to prevent the country from getting the benefit of experience, no man could remain a member of Congress for more than three years in succession. The delegates of each State continued to cast jointly one vote; if only one member were present, the vote of a State was not counted; if but two were present, they might produce a tie. On important questions the approval of nine States was necessary, and often less than that number had voting representatives on the floor. Amendment was impossible, except by consent of all the State legislatures. Although Congress had to deal with difficult questions of peace, its principal power was that of carrying on war. Congress might make treaties, but it could pass no act in defence of American commerce.

[Sidenote: Executive departments.]

A great effort was made to improve the executive system. By resolutions passed early in 1781, secretaries were appointed for the three departments of Foreign Affairs, War, and Finance; the board system, championed by Samuel Adams and others, was to be abandoned. The importance of the War Department diminished after 1782. "The Secretary of the United States for the Department of Foreign Affairs" was quartered in two little rooms, and furnished with two clerks. The post was filled first by Robert R. Livingston, and from 1784 by John Jay. The office of Superintendent of Finance was bestowed upon Robert Morris of Pennsylvania.

[Sidenote: Courts.]

The Articles of Confederation provided for a special tribunal to settle territorial disputes between the States. The system was invoked in 1782, and a verdict was rendered in favor of Pennsylvania and against Connecticut in their rival claims to the Wyoming region. A second set of federal courts was constituted by designating certain State courts to try piracies and felonies committed on the high seas. A third and the only important federal tribunal was the Court of Appeals in prize cases, which began to sit in January, 1780, and before which were sued sixty-five cases. All the courts, like all the executive departments, were created by Congress, alterable by Congress, and subject to the control of Congress. In 1784 the Court of Appeals was allowed to lapse, by the refusal of Congress to pay the salaries of the judges.

51. DISBANDMENT OF THE ARMY (1783.)

To follow the history of the Confederation from year to year would be unprofitable. It was a confused period, with no recognized national leaders, no parties, no great crises. We shall therefore take up one after another the important questions which arose, and follow each to the end of the Confederation.

[Sidenote: Half-pay question.] [Sidenote: Protests.]

The first duty of Congress after peace was declared was to cut off the military expenditures (sec. 42). The food, clothing, and pay of the army amounted to about $400,000 a month. Provision had been made for bounty lands for the soldiers; the officers expected some more definite reward. On April 26, 1778, Congress, by a majority of one State, had voted half pay for life to the officers, as an essential measure for keeping the army together. In the four years following, five different votes had been passed, each annulling the previous one. Another proposition, in November, 1782, was to remit the whole matter to the States. On March 10, 1783, appeared the so-called "Newburgh addresses,"—an anonymous plea to the army, urging the officers not to separate until Congress had done justice in this respect. A crisis was threatened. Washington himself attended the meeting of the officers, and counselled moderation. He used his utmost influence with Congress, and on the 22d of March secured a vote of full pay for five years. As the treasury was empty, the only payment to the officers was in certificates of indebtedness, upon which interest accumulated during the next seven years. Massachusetts protested, declaring the grant to be "more than an adequate reward for their services, and inconsistent with that equality which ought to subsist among citizens of free and republican states." In June, 1783, three hundred mutineers surrounded the place of meeting of Congress, and demanded a settlement of their back pay; and the executive council of Pennsylvania declined to interfere. The result was that Congress changed its place of meeting, and ever after retained a lively resentment against the city of Philadelphia.

52. TERRITORIAL SETTLEMENT WITH THE STATES (1781-1802).

[Sidenote: The Western claims.] [Sidenote: Northwest cessions.]

Although Congress had no power, under the Articles of Confederation, to regulate territory, it earnestly urged the States to cede their claims. The Ohio River divided the Western country into two regions, each having a separate territorial history. The northern part was claimed by Virginia, Massachusetts, and Connecticut, on the ground that their old charters, extending to the Pacific, were revived (sec. 45). The United States, as representing the landless States, claimed the whole region as territory won by the common effort and sacrifice of the Revolutionary War. On March 1, 1784, Virginia ceded all her claims north of the Ohio River, except a reservation for bounty lands. Massachusetts followed in 1785; the commonwealth had large tracts of unoccupied land in Maine and in New York. Connecticut had no such resources, and in 1786 ceded only the western part of her claim, retaining till 1800, as a "Western Reserve," a strip, extending along Lake Erie, one hundred and twenty miles west from Pennsylvania.

[Sidenote: Territorial organization.]

The claims to the region north of the Ohio having thus been extinguished, the government began to make plans for the administration of its domain. On Oct. 10, 1780, the Continental Congress had promised that the lands ceded by the States should be "disposed of for the common benefit of the United States," and "be settled and formed into distinct republican States which shall become members of the federal union." These two principles are the foundation both of the territorial and the public land systems of the United States.

On April 23, 1784, an ordinance reported by Jefferson was passed, providing for representative legislatures as fast as the West grew sufficiently populous to maintain them. It is hardly a misfortune that the map was not encumbered with the names suggested by Jefferson for the new States,—Cherronesus, Metropotamia, Assenisippia, Polypotamia, and Pelisipia; but another clause was voted down which would have prohibited slavery in the Territories after 1800.

[Sidenote: Northwest Ordinance.]

June 13, 1787, a second ordinance passed Congress, which was inferior in importance only to the Federal Constitution. It provided minutely for a preliminary territorial government, in which laws were to be made by appointive judges, and for a later representative government. The conception was that the Territories were to occupy the position formerly claimed by the colonies; they were to be subject to no general taxation, but placed under a governor appointed by the general government; their laws were to be subject to his veto, and to later revision by the central authority. A new principle was the preparation of the Territories for statehood: the ordinance laid down a series of "Articles of Compact" to govern them after they were admitted into the Union. Religious liberty and personal rights were to be secured; general morality and education to be encouraged; and finally it was provided that "there shall be neither slavery nor involuntary servitude in the said Territory, otherwise than in the punishment of crimes whereof the party shall have been duly convicted." The introduction of this clause is due to New England men, who were anxious to form a colony on the Ohio, and who desired to secure the freedom with which they were familiar. The clause had no effect upon slaves held in the Territory at the time of the passage of the ordinance, but it distinctly expresses the dissatisfaction of the country with the system of human slavery. As soon as the Northwest Territory was organized, the sale of lands began; but nothing was received in cash till long after the Confederation had expired.

[Sidenote: Southern cessions.]

In the southern block of States the territorial settlement proceeded more slowly, and was in every way less satisfactory. Virginia retained both jurisdiction and land in Kentucky. North Carolina in 1790 granted the jurisdiction in what is now Tennessee, but every acre of the land had already been granted by the State. South Carolina had almost nothing to cede, and yielded it in 1787. Georgia stood out on the claim to the whole territory between her present boundary and the Mississippi, and would not yield until 1802. Slavery was not prohibited.

53. FINANCES (1781-1788).

[Sidenote: Financial status.] [Sidenote: Requisitions.]

The financial condition of the Confederation was throughout deplorable (sec. 43). The Revolution imposed upon the country a heavy debt. The accounts of the government were so badly kept that to this day it is impossible to state the amount; but it was probably about thirty millions, with an annual interest charge of about two millions. The necessary expenditure for the support of Congress, of the army on a peace-footing, and of the executive and judicial boards and departments, called for about half a million more. The continental currency had practically been repudiated, and no more could be floated; Congress had no power to lay either direct or indirect taxes; the post-office had an income of about $25,000 a year, all of which was expended upon the service. Hence Congress fell back on requisitions apportioned on the States: one of its principal functions was each year to calculate the amount necessary for the public service, and to call upon the State legislatures for their quota. The total sum required from 1781 to 1788 was about $16,000,000. Of this there had actually been paid during the seven years $3,500,000 in specie, and $2,500,000 in certificates of national indebtedness. The annual cash income of the government was therefore about half a million, which was entirely absorbed by the necessary running expenses of the government, leaving nothing for the payment of interest.

[Sidenote: Morris's administration.]

This condition of virtual bankruptcy might have been avoided had Robert Morris been able to carry out the reforms which he proposed when he became superintendent of finance in 1781. He found the financial administration complicated and corrupt. He attempted to substitute business methods and punctuality of payment. While the war lasted, however, the only financial system possible was to squeeze every source of revenue, and to pay only what could not be avoided. When peace returned, the States would provide no better system. To keep up the credit of the government the first necessity was the prompt payment of interest: the payment of interest required money; money must come from taxes, and the State declined to levy the taxes. In 1784 Morris resigned in despair, and thenceforward a Treasury Board mismanaged the finances of the nation.

[Sidenote: Bank of North America.]

May 26, 1781, Congress had taken the important step of chartering the Bank of North America. The United States was to furnish part of the capital, and to make the bank its financial agent. Its notes were to be receivable in the duties and taxes of every State in the Union. Morris asked Jay to get specie from Spain to start the bank. "I am determined," said he, "that the bank shall be well supported until it can support itself, and then it will support us." Its connection with the government practically ceased after the retirement of Morris in 1784, although it remained under a State charter a prosperous and useful institution, and is still in existence, a sound and healthy bank.

[Sidenote: The currency.]

Another financial measure was the attempt to correct the currency. After the end of the war there was found in circulation an extraordinary mixture of gold and silver coins of all nations, especially the Spanish milled dollar, which had been accepted by the Continental Congress as the unit of its issues. All the currency was badly counterfeited, defaced, and clipped. In 1782 the quartermaster-general, Timothy Pickering, who was about to pay out a part of the French subsidy in coin, wrote as follows: "I must trouble you for the necessary apparatus for clipping. 'Tis a shameful business and an unreasonable hardship on a public officer.... A pair of good shears, a couple of punches, and a leaden anvil of two or three pounds weight. Will you inquire how the goldsmiths put in their plugs?" The Confederation, upon Jefferson's report, July 6, 1785, adopted the dollar as its unit, and provided for a decimal ratio; but a few tons of copper cents made up the only national currency put into circulation.

[Sidenote: Foreign loans.]

Towards the end of its existence the Confederation found itself on the brink of a default of interest on debts due to foreign governments and bankers. France in 1783 made a final loan of six hundred thousand francs; and from 1783 to 1788 Dutch bankers were found who had sufficient confidence in the government to advance it $1,600,000 on favorable terms. With the proceeds of these loans the government was able to pay the accumulated interest on the foreign loans, and thus to keep its credit above water in Europe.

54. DISORDERS IN THE STATES (1781-1788).

[Sidenote: State financial legislation.]

The finances of the States were little better than those of the Union. The States controlled all the resources of the country; they could and did raise taxes, but they appropriated the proceeds to their own pressing necessities; and the meagre sums paid to Congress represented a genuine sacrifice on the part of many States, particularly Pennsylvania and Massachusetts. Unfortunately the States exercised unlimited powers over their own currency and commercial relations. Times were hard, debts had accumulated, property had been destroyed by the war. State after State passed stay laws delaying the collection of debts; or "tender laws" were enacted, by which property at an appraised value was made a legal tender, Cattle, merchandise, and unimproved real estate were the usual currency thus forced upon creditors. After peace was declared, a second era of State paper-money issues came on, and but four of the thirteen States escaped the craze.

[Sidenote: Weakness of the States.] [Sidenote: Proposed new states.] [Sidenote: Insurrections.]

These remedies bore hard on the creditors in other States, created a feeling of insecurity among business men, and gave no permanent relief. The discontented, therefore, sought a remedy for themselves. The Revolutionary War had left behind it an eddy of lawlessness and disregard of human life. The support of the government was a heavy load upon the people. The States were physically weak, and the State legislatures habitually timid. In several States there were organized attempts to set off outlying portions as independent governments. Vermont had set the example by withdrawing from New York in 1777, and throughout the Confederation remained without representation either in the New York legislature or in Congress. In 1782 the western counties of Pennsylvania and Virginia threatened to break off and form a new State. From 1785 to 1786 the so-called State of "Franklin," within the territory of what is now eastern Tennessee, had a constitution and legislature and governor, and carried on a mild border warfare with the government of North Carolina, to which its people owed allegiance. The people of Kentucky and of Maine held conventions looking toward separation. The year 1786 was marked by great uneasiness in what had been supposed to be the steadiest States in the union. In New Hampshire the opposition was directed against the legislature; but General Sullivan, by his courage, succeeded in quelling the threatened insurrection without bloodshed. In Massachusetts in the fall of 1786 concerted violence prevented the courts from sitting; and an organized force of insurgents under Captain Shays threatened to destroy the State government. As a speaker in the Massachusetts convention of 1788 said, "People took up arms; and then if you went to speak to them you had the musket of death presented to your breast. They would rob you of your property, threaten to burn your houses; obliged you to be on your guard night and day.... How terrible, how distressing was this!... Had any one that was able to protect us come and set up his standard, we should all have flocked to it, even though it had been a monarch." The arsenal at Springfield was attacked. The State forces were met in the open field by armed insurgents. Had they been successful, the Union was not worth one of its own repudiated notes. The Massachusetts authorities were barely able to restore order, and Congress went beyond its constitutional powers in an effort to assist.

55. SLAVERY (1777-1788).

[Sidenote: Anti-slavery spirit.] [Sidenote: Emancipation acts.] [Sidenote: Southern sentiment.]

One evidence that the States were still sound and healthful was the passage of Emancipation acts. The Revolutionary principles of the rights of man, the consent of the governed, and political equality, had been meant for white men; but it was hard to deny their logical application to the blacks. New anti-slavery societies were formed, particularly in Pennsylvania; but the first community to act was Vermont. In the Declaration of Rights prefixed to the Constitution of 1777 it was declared that since every man is entitled to life, liberty, and happiness, therefore "no ... person born in this country, or brought here over sea, ought to be holden by law to serve any person as a servant, slave, or apprentice" after he arrives at the age of maturity. A few years later this was supplemented by an act abolishing the institution of slavery outright. The number of slaves in Vermont was inconsiderable, but in 1780 two States, Massachusetts and Pennsylvania, took similar action, affecting several thousand persons. The Massachusetts constitution of 1780 declared that "all men are born free and equal." This clause was a few years later interpreted by the courts to mean that after 1780 no person could legally be held as a slave. In Pennsylvania in the same year a gradual Emancipation Act was passed, under which persons then in bondage were to serve as slaves during their lives; their children, born after 1780, were eventually to become free; and no person was to be brought into the State and sold as a slave. Within four years New Hampshire and Connecticut passed similar Emancipation Acts. In Rhode Island the number of slaves, 3,500, was considerable in proportion to the population, and that State therefore made a distinct sacrifice for its principles by its act of 1785. Thus at the expiration of the Confederation in 1788, all the States north of Maryland, except New York and New Jersey, had put slavery in process of extinction; those two States followed in 1799 and 1804. Many Southern statesmen hoped that the institution was dying out even in the South. Jefferson in 1787 wrote: "Indeed, I tremble for my country when I reflect that God is just, and that His justice cannot sleep forever." Some steps were taken, particularly in Virginia and Kentucky, for the amelioration of the condition of the blacks; and the slave-trade was forbidden in most of the States of the Union during this period.

56. FOREIGN RELATIONS AND COMMERCE (1781-1788).

[Sidenote: Relations with England.]

In no respect, not even in finance, was the weakness of the Confederation so evident as in the powerlessness of Congress to pass commercial laws, and its consequent inability to secure commercial treaties. In 1785 John Adams was sent as minister to Great Britain, and was received with civility by the sovereign from whom he had done so much to tear the brightest jewel of his crown; but when he endeavored to come to some commercial arrangement, he could make no progress. It is easy now to see that the best policy for Great Britain would have been in every way to encourage American commerce; the Americans were accustomed to trade with England; their credits and business connections were established with English merchants; the English manufactured the goods most desired by America. When the Whigs were driven out of power in 1783, the last opportunity for such an agreement was lost. July 2, 1783, an Order in Council was issued, restraining the West India trade to British ships, British built; and on March 26, 1785, the Duke of Dorset replied to the American commissioners who asked for a treaty: "The apparent determination of the respective States to regulate their own separate interests renders it absolutely necessary, towards forming a permanent system of commerce, that my court should be informed how far the commissioners can be duly authorized to enter into any engagement with Great Britain which it may not be in the power of any one of the States to render totally useless and inefficient."

[Sidenote: Loyalists.] [Sidenote: British debts.] [Sidenote: Posts.]

There were other reasons why the British continued to subject American ships in English ports to discriminations and duties from which the vessels of most other powers were exempt. The treaty of 1783 had provided that Congress would recommend to the States just treatment of the loyalists; the recommendation was made. Most of the States declined to comply; men who had been eminent before the Revolution returned to find themselves distrusted, and sometimes were mobbed; their estates, which in most cases had been confiscated, were withheld, and they could obtain no consideration. This was unfriendly, but not a violation of any promise. The action of the States in placing obstacles in the way of collecting debts due to British merchants before the Revolution was a vexatious infraction of the treaty. Five States had passed laws for the partial or complete confiscation of such debts, and even after the treaty Pennsylvania and Massachusetts passed similar Acts. As an offset, the British minister in 1786 declared that the frontier posts would not be surrendered so long as the obstacles to the collection of British debts were left standing.

[Sidenote: The Spanish treaty.]

The only other power with which the United States desired commercial relations without possessing them was Spain. The Eastern States were very anxious to obtain privileges of trade. The Spanish were willing to grant them, but made it a condition that the Americans should not have the right of free navigation of the lower Mississippi. Jay, acting under the instruction of Congress, in 1786 negotiated a treaty in which he agreed to the Spanish conditions. Instantly the West was aroused, and violent threats were made by the people of Kentucky and the adjacent region that if that treaty went into effect they would withdraw from the Union. "The tendency of the States," said Madison, a few months later, "to violations of the laws of nations and treaties ... has been manifest.... The files of Congress contain complaints already from almost every nation with which treaties have been formed."

57. DISINTEGRATION OF THE UNION (1786, 1787).

[Sidenote: The Confederation violated.] [Sidenote: Danger of anarchy.]

The year 1786 marks a crisis in the development of the Union. The inefficiency of Congress was reflected in the neglect of constitutional duties by the States: Rhode Island recalled her delegates, and refused to appoint new members; New Jersey felt so much injured by a New York tariff that an act was passed taxing the lighthouse established by New York on Sandy Hook; Massachusetts, Pennsylvania, North Carolina, and Georgia already had raised troops on their own account and for their own purposes, in violation of the Articles of Confederation. Davie, of North Carolina, a little later declared that the "encroachments of some States on the rights of others, and of all on those of the Confederation, are incontestable proofs of the weakness and imperfections of that system." Of the requisition of that year for $2,000,000 in specie, only about $400,000 was paid. Some States offered their own depreciated notes, and New Jersey refused to make any contribution until the offensive New York Acts were withdrawn. In May, 1786, Charles Pinckney on the floor of Congress declared that "Congress must be invested with more powers, or the federal government must fall."

58. REORGANIZATION ATTEMPTED (1781-1787).

[Sidenote: Five percent scheme.] [Sidenote: Revenue scheme.]

Before the Articles of Confederation had gone into effect, Congress had already proposed a radical amendment; and within three years it suggested two others. The first proposition, made February 3, 1781, was that the States allow Congress to levy an import duty of five per cent, the proceeds to be applied "to the discharge of the principal and interest of the debts already contracted ... on the faith of the United States for supporting the present war." In the course of about a year twelve States had complied with this reasonable request. Rhode Island alone stood out, and the plan failed. Forthwith Congress presented another financial scheme, which was called a "general revenue plan." April 12, 1783, it asked the States to allow Congress to lay low specific import duties for twenty-five years, to be collected by officers appointed by the States. The States were further recommended to lay some effective taxes, the proceeds to be set aside for government requisitions. The effect was precisely the same as before. Twelve States agreed; but the opposition of New York prevented the first part of the plan from being carried out. Not a single State had condescended to pay attention to the second request.

[Sidenote: Commerce amendment.]

Apparently abandoning any hope of an adequate revenue, Congress, on April 30, 1784, proposed a third amendment, that the States should permit it to pass commercial laws discriminating against foreign powers which refused to make commercial treaties. This was aimed at Great Britain. Washington urged the measure in vigorous language. "We are," said he, "either a united people, or we are not so. If the former, let us in all matters of national concern act as a nation which has a national character to support." Yet he could not bring even Virginia to agree to the plan, and it quickly failed.

[Sidenote: Schemes of revision.]

A poor constitution, which could be amended only by unanimous vote, was likely to stifle the nation. A few feeble suggestions were heard that the experiment of republican government be given over; others urged that the Americans be brought within one centralized government. Alexander Hamilton would have established a government "controlling the internal police of the States, and having a federal judiciary." Upon the last of his three schemes, dated 1783, is written: "Intended to be submitted to Congress, but abandoned for want of support." Even Washington's vastly greater influence had no effect. In a circular letter to the governors, dated June, 1783, he says: "It is indispensable to the happiness of the individual States that there should be lodged somewhere a supreme power to regulate and govern the general concerns of the confederated republic." Yet not a State would take the initiative in reforming the constitution.

From 1784 to 1786 pamphlets began to appear in which more definite suggestions were made for a new government. Pelatiah Webster proposed a government with enlarged powers, and a legislature of two houses. "If they disagree," said he, "let them sit still until they recover their good humor." The method in which the new government was to enforce its powers was put in a quaint and incisive form. "My principle is," said Webster, "the soul that sinneth, it shall die. Every person ... who shall disobey the supreme authority shall be answerable to Congress." The idea that the constitution needed radical amendment had at last found a lodgment in the public mind.



CHAPTER VI.

THE FEDERAL CONSTITUTION (1787-1789).

59. REFERENCES.

BIBLIOGRAPHIES.—P. L. Ford, Bibliography and Reference List of the Constitution; Justin Winsor, Narrative and Critical History, VII. 256-266; W. E. Foster, References to the Constitution, 15, 21; Channing and Hart, Guide, secs. 154-156; A. B. Hart, Federal Government, secs. 38, 469.

HISTORICAL MAPS.—As in sec. 48 above, sec. 69 below.

GENERAL ACCOUNTS.—J. B. McMaster, People of the United States, I. 416-524; R. Hildreth, United States, III. 482-546; T. Pitkin, United States, II. 218-316; H. C. Lodge, Washington, II. ch. I.; J. Story, Commentaries, secs. 272-372; J. Schouler, United States, I. 31-70; Geo. Tucker, United States, I. 347-383; Justin Winsor, Narrative and Critical History, VII. ch. iv.; H. Von Hoist, Constitutional History, I. 47-63; J. S. Landon, Constitutional History, 59-96; F. A. Walker, Making of the Nation, chs. ii., iii.

SPECIAL HISTORIES.—G. T. Curtis, _Constitutional History, I. chs. xv.- xxxvi. (_History of the Constitution_, III. 232-604); Geo. Bancroft, _United States_, last revision, VI. 195-462 (_History of the Constitution_, I. 267-278, II. 1-47, 144, 350); William C. Rives, _James Madison_, II. 313-633; H. L. Carson, _One Hundredth Anniversary of the Constitution_; J. B. McMaster, _Pennsylvania and the Federal Constitution_; John Fiske, _Critical Period_, 183-350; S. H. Gay, _Madison_, 88-127; J. C. Hamilton, _Republic_, III. 236-569; J. H. Robinson, _Sources of the Constitution_; S. B. Harding, _Federal Constitution in Massachusetts_; C. E. Stevens, _Sources of the Constitution_; C. Borgeaud, _Adoption and Amendment of Constitutions_; the various State histories.

CONTEMPORARY ACCOUNTS.—Journal of the Convention, Madison's notes, Yates's notes, Luther Martin's letter, proceedings of State conventions,— all in Elliot's Debates (5 vols.); H. D. Gilpin, Papers of James Madison, vols. II., III.; brief references in the works of Washington, Madison, Hamilton, and Jefferson; letters in the biographies of Madison, Hamilton, Rufus King, Gerry; The Federalist.—Reprints in P. L. Ford, Pamphlets on the Constitution of the United States, and Essays on the Constitution; American History told by Contemporaries, III.; Library of American Literature, VI.

60. THE FEDERAL CONVENTION ASSEMBLED (1787).

[Sidenote: A convention suggested.] [Sidenote: Annapolis Convention.] [Sidenote: Action of Congress.]

That Congress did not possess the confidence of the country was evident from the failure of all its amendments. It had, therefore, been suggested first by Hamilton in 1780, later by Tom Paine in his widespread pamphlet "Public Good," that a convention be specially summoned to revise the Articles of Confederation. The initiative in the movement was finally taken by the States. In 1786 the intolerable condition of internal commerce caused Virginia to suggest to the sister States that a conference be held at Annapolis. The few delegates who appeared separated, after recommending that there be held "a convention of delegates from the different States ... to devise such further provisions as shall appear to them necessary to render the constitution of the federal government adequate." Congress was no longer able to resist the movement: on Feb. 1, 1787, it resolved that a convention be held "for the sole and express purpose of revising the Articles of Confederation, and reporting to Congress and the several legislatures such alterations and provisions therein as shall, when agreed to by Congress and confirmed by the States, render the federal government adequate to the exigencies of government and the preservation of the union."

[Sidenote: Convention assembled.]

By May, 1787, delegates to the proposed convention had been chosen in all the States except New Hampshire and Rhode Island. Many of the ablest and most experienced public men were included. Among them were Francis Dana and Elbridge Gerry of Massachusetts, Alexander Hamilton of New York, Benjamin Franklin of Pennsylvania, and James Madison and George Washington of Virginia. The convention was the most distinguished body which had ever assembled in America; if its work could not command public confidence, there was no hope for the Union.

61. DIFFICULTIES OF THE CONVENTION (1787).

[Sidenote: Task of the convention.]

When on May 25, 1787, the convention assembled at Philadelphia, its task, under the call of Congress, was limited to the preparation of amendments to the old Confederation. The first formal resolution to which it came after organization reads as follows: "That a national government ought to be established, consisting of a supreme legislature, executive, and judiciary." The convention from the beginning was evidently resolved to recommend a new, elaborate, and powerful form of government. The key to this action is found in the history of the twelve years from 1775 to 1787. The country had tried a revolutionary, irresponsible, form of government, and it had not worked well. It had tried a union of sovereign States; neither the Union nor the States had prospered. The time had come to change the government in form, in powers, and in the means of carrying out its powers. The States must be held to their duties; Congress must be restrained; local quarrels must cease; revenue must be secured, commerce protected, and treaties guaranteed; the West must be saved, and insurrections put down. The first duty of the convention was to repair the errors of the Confederation.

[Sidenote: Want of authority.]

Americans have become accustomed to look upon the Constitution as a kind of political revelation; the members of the convention themselves felt no sense of strength or inspiration. They had no authority of their own. Their work must be submitted for the ratification of States which had been unable to agree upon a single modification of the articles. They must encounter the jealousy of Congress and the prejudices of the people. While the convention sat, a rumor went abroad that they would report in favor of a monarchy.

In order to bring the discussion to a focus, the Virginia delegates had agreed upon a plan drawn by Madison, who had been in communication with Washington; it was presented by Edmund Randolph. This plan in the end formed the basis of the constitution as adopted.

[Sidenote: Divisions.]

No sooner had debate actually begun than the convention proved to be divided into many factions. Some members, like Patterson, were on principle opposed to a strong government; others, like Hamilton, desired to break down the State boundaries, and to create a centralized republic. Still more distinct was the opposition between the large States and the small: the former inclined to a representation based on population; the latter insisted that the States should be equal units. Again, the trading States—New England, New York, and Maryland—were inclined to grant large powers over commerce; the agricultural States, particularly Virginia, wished to see commerce regulated still by the States in part. Another line of division was between the slaveholding and the non-slaveholding States; here the champions were Massachusetts on one side, and South Carolina on the other. Throughout the convention these various elements combined and recombined as their interests seemed affected. Although there were no permanent parties, the members of which regularly voted together, there was disagreement and disappointment from the beginning to the end.

62. SOURCES OF THE CONSTITUTION.

[Sidenote: American experience.]

Another popular delusion with regard to the Constitution is that it was created out of nothing; or, as Mr. Gladstone puts it, that "It is the greatest work ever struck off at any one time by the mind and purpose of man." The radical view on the other side is expressed by Sir Henry Maine, who informs us that the "Constitution of the United States is a modified version of the British Constitution ... which was in existence between 1760 and 1787." The real source of the Constitution is the experience of Americans. They had established and developed admirable little commonwealths in the colonies; since the beginning of the Revolution they had had experience of State governments organized on a different basis from the colonial; and, finally, they had carried on two successive national governments, with which they had been profoundly discontented. The general outline of the new Constitution seems to be English; it was really colonial. The President's powers of military command, of appointment, and of veto were similar to those of the colonial governor. National courts were created on the model of colonial courts. A legislature of two houses was accepted because such legislatures had been common in colonial times. In the English Parliamentary system as it existed before 1760 the Americans had had no share; the later English system of Parliamentary responsibility was not yet developed, and had never been established in colonial governments; and they expressly excluded it from their new Constitution.

[Sidenote: State experience.]

They were little more affected by the experience of other European nations. Just before they assembled, Madison drew up an elaborate abstract of ancient, mediaeval, and existing federal governments, of which he sent a copy to Washington. It is impossible to trace a single clause of the Constitution to any suggestion in this paper. The chief source of the details of the Constitution was the State constitutions and laws then in force. Thus the clause conferring a suspensive veto on the President is an almost literal transcript from the Massachusetts constitution. In fact, the principal experiment in the Constitution was the establishment of an electoral college; and of all parts of the system this has worked least as the framers expected. The Constitution represents, therefore, the accumulated experience of the time; its success is due to the wisdom of the members in selecting out of the mass of colonial and State institutions those which were enduring,

[Sidenote: Novelties.]

The real boldness of the Constitution is the novelty of the federal system which it set up. For the first time in history an elaborate written constitution was applied to a federation; and the details were so skilfully arranged that the instrument framed for thirteen little agricultural communities works well for forty-four large and populous States. A second novelty was a system of federal courts skilfully brought into harmony with the State judiciary. Even here we see an effect of the twelve years experience of imperfect federation. The convention knew how to select institutions that would stand together; it also knew how to reject what would have weakened the structure.

63. THE GREAT COMPROMISES (1787).

[Sidenote: State sovereignty.]

It was a long time before a compromise between the discordant elements could be reached. To declare the country a centralized nation was to destroy the traditions of a century and a half: to leave it an assemblage of States, each claiming independence and sovereignty, was to throw away the results of the Revolution. The convention finally agreed that while the Union should be endowed with adequate powers, the States should retain all powers not specifically granted, and particularly the right to regulate their own internal affairs.

[Sidenote: Representation of States.]

The next great question all but led to the breaking up of the convention. The New Hampshire delegate had not yet appeared, and Rhode Island was never represented in the convention; the large states had therefore a majority of one. On June 13 it was voted that the ratio of representation in both branches of the legislature should be in proportion to the population. Two days later, Patterson of New Jersey brought forward a plan satisfactory to the small States, by which the old plan of vote by States was to be retained, and the Confederation practically continued. For many days the two parties were unable to agree; the crisis was so serious that on June 28 Franklin, who was not renowned for piety, moved that thenceforward the sessions be opened with prayer. The deadlock was finally broken by the so-called Connecticut Compromise, adopted July 7: equal representation was to be preserved in the upper house, and proportional representation was to be granted in the lower.

[Sidenote: Representation of slaves.]

When it was proposed to levy taxes on the same basis, the Southern members objected that their negroes were not equal to freemen as producers of wealth. On July 12, the matter was adjusted by a compromise: the Southerners agreed to count slaves only at three fifths of their number, in apportioning both representatives and direct taxes. Since direct taxes have been but three times assessed in the history of the United States, the practical advantage was on the side of the North.

[Sidenote: Slave trade.]

It was otherwise in the third difficult question. Near the end of the convention the commercial and the agricultural States came into a disagreement. New England was anxious that Congress should have power to pass Acts protecting American shipping; on the other hand, the South desired to continue the slave-trade. Pinckney declared that "South Carolina can never receive the plan if it prohibits the slave-trade;" and Sherman of Connecticut cynically remarked, "The slave-trade is iniquitous; but inasmuch as the point of representation was settled, he should not object." On August 24 a third compromise left to Congress the power of passing Navigation Acts, but forbade it to prohibit the slave-trade during twenty years.

64. DETAILS OF THE CONSTITUTION (1787).

[Sidenote: Difficult questions.]

These difficult points out of the way, the convention arranged the details of the new government. One of the principal minor questions was the method of presidential election. Many members inclined towards an executive council; instead, it was agreed that there should be a President elected by Congress; but almost at the last moment, on September 7, the better plan of indirect election by the people was adopted. At one time the convention had agreed that Congress should have the right of veto upon State laws; it was abandoned, and instead was introduced a clause that the Constitution should be the supreme law of the land, and powerful courts were created to construe the law.

[Sidenote: Simplicity of the Constitution.]

In making up the list of the powers of Congress, the convention used brief but comprehensive terms. Thus all the difficulties arising out of the unfriendly commercial legislation of States, and their institution, with foreign treaties, were removed by the simple clause: "The Congress shall have Power ... to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." The great question of taxation was settled by fourteen words: "The Congress shall have Power ... To lay and collect Taxes, Duties, Imposts, and Excises."

[Sidenote: Omissions.]

In a few respects the Constitution was deficient. It did not profess to be all-comprehensive, for the details of the government were to be worked out in later statutes. There was, however, no provision for future annexations of territory. No safeguards were provided for the proper appointment and removal of public officers. The growth of corporations was not foreseen, and no distinct power was conferred upon Congress either to create or to regulate them. Above all, the convention was obliged to leave untouched the questions connected with slavery which later disrupted the Union.

[Sidenote: The work finished.]

On Sept. 17, 1787, the convention finished its work. To the eloquent and terse phraseology of Gouverneur Morris we owe the nervous English of the great instrument. As the members were affixing their signatures, Franklin remarked, pointing to the picture of a sun painted behind the President's chair: "I have often and often,... in the vicissitudes of my hopes and fears, looked ... without being able to tell whether it was rising or setting; but now, at length, I have the happiness to know that it is a rising and not a setting sun."

65. DIFFICULTIES OF RATIFICATION (1787, 1788).

[Sidenote: Action of Congress.] [Sidenote: Action of legislatures.]

The text of the Constitution was printed and rapidly distributed throughout the Union. It was still but a lifeless draft, and before it could become an instrument of government the approving action of Congress, of the legislatures, and of State conventions was necessary. Congress, on Sept. 28, 1787, unanimously resolved that the Constitution be transmitted to State legislatures. The federal convention had determined that the consideration of its work should not depend, like the Articles of Confederation, upon the slow and unwilling humor of the legislatures, but that in each State a convention should be summoned solely to express the will of the State upon the acceptance of the Constitution. It had further avoided the rock upon which had been wrecked the amendments proposed by Congress; when nine State conventions should have ratified the Constitution, it was to take effect for those nine. On the same day that Congress in New York was passing its resolution, the Pennsylvania legislature in Philadelphia was fixing the day for the election of delegates; all the State legislatures followed, except in Rhode Island.

[Sidenote: The Constitution attacked.]

The next six months was a period of great anxiety and of national danger. The Constitution was violently attacked in every part of the Union: the President, it was urged, would be a despot, the House of Representatives a corporate tyrant, the Senate an oligarchy. The large States protested that Delaware and Rhode Island would still neutralize the votes of Virginia and Massachusetts in the Senate. The federal courts were said to be an innovation. It was known that there had been great divisions in the convention, and that several influential members had left, or at the last moment had refused to sign. "The people of this commonwealth," said Patrick Henry, "are exceedingly uneasy in being brought from that state of full security which they enjoyed, to the present delusive appearance of things." A special objection was made to the lack of a bill of rights, such as existed in State constitutions. The reply was that the framers of the Constitution had deliberately omitted it because Congress was in no case to have powers not conferred upon it by the Constitution. The argument was not conclusive: Rev. Mr. Caldwell, in the North Carolina convention, declared that "unalienable rights ought not to be given up if not necessary;" and another member of the same convention objected that "if there be no religious test required, Pagans, Deists, and Mahometans might obtain offices, And ... the senators and representatives might all be pagans." It was even suggested as a serious danger that the Pope of Rome might eventually be elected president.

[Sidenote: Federalists and Antifederalists.]

The friends of the measure, in order to deprecate the charge that they aimed at centralization, took upon themselves the name of Federalists. Their opponents called themselves antifederalists, corresponded with each other, and formed a short-lived national party. A shower of pamphlets on both sides fell upon the country. Of these the most famous and most efficacious was the "Federalist," successive numbers of which were contributed by Hamilton, Madison, and John Jay. With a calmness of spirit, a lucidity of style, and a power of logic which make it to this day one of the most important commentaries on the Constitution, the "Federalist" strove to show that the Constitution was safe for the people and advantageous for the States.

66. STATE CONVENTIONS (1787, 1788).

[Sidenote: First nine states.]

As the State conventions assembled, the excitement grew more intense. Four States alone contained within a few thousands of half the population of the Union: they were Massachusetts, Virginia, New York, and North Carolina. In the convention of each of these States there was opposition strong and stubborn; one of them—North Carolina—adjourned without action; in the other three, ratification was obtained with extreme difficulty and by narrow majorities.

The first State to come under the "New Roof," as the Constitution was popularly called, was Delaware. In rapid succession followed Pennsylvania, New Jersey, Georgia, and Connecticut. In Massachusetts, the sixth State, there was a hard fight; the spirit of the Shays Rebellion was still alive; the opposition of Samuel Adams was only overcome by showing him that he was in the minority; John Hancock was put out of the power to interfere by making him the silent president of the convention. It was suggested that Massachusetts ratify on condition that a long list of amendments be adopted by the new government: the friends of the Constitution pointed out that the plan was simply to ratify a part of the Constitution and to reject the rest; each succeeding State would insist on a list of amendments, and the whole work must be done over. Feb. 6, 1788, the enthusiastic people of Boston knew that the convention, by a vote of 187 to 167, had ratified the Constitution; the amendments being added, not as a condition, but as a suggestion. Maryland, South Carolina, and New Hampshire brought the number up to nine.

[Sidenote: Virginia and New York.]

Before the ninth ratification was known, the fight had been won also in Virginia. Among the champions of the Constitution were Madison, Edmund Randolph, and John Marshall. James Monroe argued against the system of election which was destined twice to make him President. In spite of the determined opposition of Patrick Henry, and in spite of a proposition to ratify with amendments, the convention accepted. New York still held off. Her acquiescence was geographically necessary; and Alexander Hamilton, by the power of his eloquence and his reason, changed the vote of a hostile convention and added the eleventh State.

67. EXPIRATION OF THE CONFEDERATION (1788).

[Sidenote: The old Congress.]

During the session of the convention in Philadelphia Congress had continued to sit in New York, and the Northwest Ordinance was passed at this time (sec. 52). On Sept. 13, 1788 Congress voted that the Constitution had been ratified, and that elections should proceed for the officers of the new government, which was to go into operation the first Wednesday in March, 1789.

[Sidenote: Seat of government.] [Sidenote: Congress expires.]

Since Congress and the President must meet somewhere, it became the duty of the old Congress to fix, at least temporarily, the seat of government, Trenton, Lancaster, Princeton, and New York were suggested. Baltimore was voted; then, with its usual inconsistency, two days later Congress voted for New York. An attempt was made to settle the accounts of Congress; but all that could be ascertained was that they were in great confusion, and that vouchers had not yet been turned in for the expenditure of large sums. On October 23 is the last official record: "Two States attended." During the next five months the only evidences of national life were the perfunctory service of a few executive officers, the feeble movements of the army, now reduced to about six hundred men, and the steady accumulation of unpaid interest.

[Sidenote: Rhode Island and North Carolina.]

What, meantime, was the situation of the two States, Rhode Island and North Carolina, which had not ratified the Constitution, and which were, therefore, not entitled to take part in the elections? They had in 1781 entered into a constitution which was to be amended only by unanimous consent; their consent was refused; legally they had a right to insist on the continuance of the old Congress. The new Constitution was, strictly speaking, unconstitutional; it had been ratified by a process unknown to law. The situation was felt to be delicate, and the States were for the time being left to themselves. North Carolina came into the Union by a ratification of Nov. 21, 1789. It was suggested that the trade of States which did not recognize Congress should be cut off, and Rhode Island yielded. May 19, 1790, her ratification completed the Union.

68. WAS THE CONSTITUTION A COMPACT?

[Sidenote: The Constitution irregular.]

The third attempt to form an organic union was now successfully carried out. The irregular authority of the Continental Congress had been replaced by the legal but inefficient Confederation; to this was now to succeed an organized government, complete in all its departments, and well endowed with powers. How had this Constitution been adopted? What was the authority which had taken upon itself to diminish the powers of the States, and to disregard the clauses which required unanimous consent to amendments? Was the new Constitution an agreement between eleven States, or was it an instrument of government for the whole people? Upon this question depends the whole discussion about the nature of the Union and the right of secession.

[Sidenote: Compact theory.]

The first theory is that the Constitution was a compact made between sovereign States. Thus Hayne in 1830 declared that "Before the Constitution each state was an independent sovereignty, possessing all the rights and powers appertaining to independent nations.... After the Constitution was formed, they remained equally sovereign and independent as to all powers not expressly delegated to the federal government.... The true nature of the Federal Constitution, therefore, is ... a compact to which the States are parties." The importance of the word "compact" is that it means an agreement which loses its force when any one of the parties ceases to observe it; a compact is little more than a treaty. Those who framed the Constitution appeared to consider it no compact; for on May 30, 1787, Mr. Randolph moved that "-no treaty or treaties among the whole or part of the States, as individual sovereignties, would be sufficient." In fact, the reason for the violent opposition to the ratification of the Constitution was that when once ratified, the States could not withdraw from it.

[Sidenote: Constitution theory.]

Another view is presented by Webster in his reply to Hayne: "It is, sir, the people's Constitution, the people's government, made for the people, made by the people, and answerable to the people. The people of the United States have declared that this Constitution shall be the supreme law." It is plain that the Constitution does not rest simply upon the consent of the majority of the nation. No popular vote was taken or thought of; each act of ratification set forth that it proceeded from a convention of the people of a State.

[Sidenote: Basis of the Constitution.]

The real nature of the new Constitution appears in the light of the previous history of the country. The Articles of Confederation had been a compact. One of the principal reasons why the Confederation was weak was that there was no way of compelling the States to perform their duties. The new Constitution was meant to be stronger and more permanent. The Constitution was, then, not a compact, but an instrument of government similar in its origin to the constitutions of the States. The difference was that, by general agreement, it was not to take effect until it was shown that in at least nine States the people were willing to live under it. Whatever the defects of the Confederation, however humiliating its weakness to our national pride, it had performed an indispensable service; it had educated the American people to the point where they were willing to accept a permanent federal union. As the "Federalist" put it, "A nation without a national government is an awful spectacle."



CHAPTER VII.

ORGANIZATION OF THE GOVERNMENT (1789-1793).

69. REFERENCES.

BIBLIOGRAPHIES.—W. E. Foster, References to Presidential Administrations, 1-5; References to the Constitution, 18, 19; Justin Winsor, Narrative and Critical History, VII. 299-309, 323-329, 413-418, 446, 454, VIII. App.; P. L. Ford, Bibliotheca Hamiltonia; Channing and Hart, Guide, secs. 157-161.

HISTORICAL MAPS.—Nos. 1 and 3, this volume, and No. 1 in W. Wilson, Division and Reunion (Epoch Maps, Nos. 6, 7, and 8); T. MacCoun, Historical Geography; Scribner, Statistical Atlas, Plate 13.

GENERAL ACCOUNTS.—J. B. McMaster, People of the United States, I. 525-604, II. 1-88; R. Hildreth, United States, IV. 25-410; J. Schouler, United States, I. 74-220; H. Von Holst, Constitutional History, I. 64- 111; T. Pitkin, Political and Civil History, II. 317-355; Gen. Tucker, United States, I. 384-503; J. S. Landon, Constitutional History, 97- 119; Bryant and Gay, Popular History, IV. 100-123.

SPECIAL HISTORIES.—George Gibbs, Memoirs of the Administrations of Washington and Adams, I. 28-88; J. C. Hamilton, History of the Republic, IV.; W. G. Sumner, Alexander Hamilton; H. C. Adams, Taxation in the United States (1789-1816); W. G. Sumner, Financier and Finances of the American Revolution, II. chs. xvii.-xxxii.; J. T. Morse, Life of Hamilton, I. chs. vii.-xii.; M. P. Follet, Speaker; H. C. Lodge, Hamilton, 88-152, and Washington, II. 1-128; J. T. Morse, John Adams, 241-264, and Jefferson, 96-145; S. H. Gay, Madison, 128-192.

CONTEMPORARY ACCOUNTS.—W. Maclay, Journal (1789-1791) (a racy account of the Senate in the First Congress); Thomas Jefferson, Anas, in Works, ix. 87-185 (confessedly made up twenty-five years later); William Sullivan, Familiar Letters on Public Characters, 36-47 (written in reply to Jefferson); Joel Barlow, Vision of Columbus, 1787 (an epic poem); correspondence in works of Washington, Hamilton, Madison, Jefferson, and John Jay; newspapers, especially the Columbian Centinel, Gazette of the United States, National Gazette.—Reprints in American History told by Contemporaries, III.

70. GEOGRAPHY OF THE UNITED STATES IN 1789.

[Sidenote: Boundary questions.]

What were the physical, social, and political conditions under which the new government was to be established? In 1789 the exterior boundaries of the country were loosely defined by treaty (sec. 46), but were not yet marked out, and there were several serious controversies. From the mouth of the St, Croix River to the head of the Connecticut the boundary was in confusion, and no progress had been made towards settling it. The water- line through the St. Lawrence and the Lakes was still unadjusted. It was found that the headwaters of the Mississippi lay to the south of the Lake of the Woods, so that there was a gap on the northwest. On the south Spain disputed the right of Great Britain to establish the boundary, insisted that her own undoubted settlements lay within the territory claimed by the United States, and declined to grant the free navigation of the lower Mississippi to the sea. Still more humiliating was the presence of British garrisons at Fort Niagara, Detroit, and other points within the undisputed boundaries of the United States.

[Sidenote: Interior boundaries.]

The interior boundaries of the country were in a like unsettled condition. Neither North Carolina nor Georgia had yielded up their western claims (sec. 52). Vermont had not yet been recognized by New York as outside of her jurisdiction, and the Western Reserve lay along the southern shore of Lake Erie as an outlying part of Connecticut. No territorial government had been established for the Northwest territory, although settlement had begun to pour in. The southern territory was in complete confusion: Kentucky and the Tennessee valley were practically independent communities; and Georgia claimed the whole region south of them.

71. THE PEOPLE OF THE UNITED STATES IN 1789.

[Sidenote: Population.]

A census taken in 1790 gives us the number of inhabitants as a little under 4,000,000. Of these, 750,000—nearly one-fifth of the whole population—were negroes. Of the 3,170,000 whites, the ancestors of eight- tenths were probably English, and most of the others spoke English and were a homogeneous part of the community. Counting by sections, the States north of Maryland had a population of 1,968,000, and those south of Pennsylvania had 1,925,000; the States which were to be permanently slave- holding contained, therefore, a population about equal to that of New England and the Middle States. Only a small part of this population was to be found west of the mountains. Settlement was working into central New York, southwest Pennsylvania, the neighboring parts of Virginia, and the upper waters of the Tennessee; but the only considerable western community was in Kentucky. These distant settlers had an important influence on the Union, since they lay within easy reach of the Spanish settlements, and occasionally threatened to withdraw.

[Sidenote: Intellectual life.]

The intellectual life of the people was little developed. Schools had not sensibly improved since colonial times. The graduating classes of all the colleges in 1789 count up to about 170. There were but two schools of medicine in the country, and no regular school of law. In one department of literature alone were the Americans eminent: the state papers of public men such as Washington, Hamilton, and Jefferson are written with the force and directness of the best school of English. Poetry there was; its character may be judged by a single quotation from Barlow's "Vision of Columbus," a favorite epic, published in 1787:—

"There stood stern Putnam, seamed with many a scar, The veteran honours of an earlier war; Undaunted Stirling, dreadful to his foes, And Gates and Sullivan to vengeance rose; While brave McDougall, steady and sedate, Stretched the nerved arm to ope the scene of fate."

[Sidenote: Economic conditions.]

In economic conditions the United States were little more advanced than had been the colonies. The country abounded in natural resources: timber clad the whole Appalachian range, and spread far into the Mississippi valley; the virgin soil, and particularly the rich and untouched prairies of the West, were an accumulation of unmeasured wealth. Yet it was little easier to get from the sea to Lake Erie or to the Ohio than it had been forty years before. It seemed impossible that a country could be held together when it was so large that a courier might be two months on his way from the seat of government to the most distant frontier; and Jefferson predicted that it would be a thousand years before the country would be thickly settled as far west as the Mississippi. The chief resource of the country was agriculture; almost every State raised its own food, and there were considerable exports, particularly of wheat and flour. Manufactures were chiefly imported from England, the only widely known American industry being the distilling of New England rum. The chief source of wealth was still commerce; in 1790 the exports and imports were about twenty million dollars each, or five dollars per head of the population. The movement of vessels to foreign ports was tolerably free, but the vexatious restrictions and taxes imposed by England tended to throw an undue part of the profit into the hands of the English merchants. Business of every kind was much hampered by the want of bank capital and by the state of the currency.