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A stranger also to all personal disputes, to the passions and prejudices of his friends, as well as his enemies, the purpose of his whole policy was to maintain this position and to this policy he gave the true name, "the just medium!"
It is much, continues the great statesman of France, to have the wish to preserve a just medium; but the wish, though accompanied with firmness and ability, is not always enough to secure it. Washington succeeded in this as much by the natural turn of his mind and character as by making it his peculiar aim; he was, indeed, really of no party, and his country in esteeming him so, did no more than pay homage to truth.
A man of experience and a man of action, he had an admirable wisdom, and made no pretension to systematic theories. He took no side beforehand; he made no show of the principles that were to govern him. Thus, there was nothing like a logical harshness in his conduct, no committal of self-love, no struggle of rival talent. When he obtained the victory, his success was not to his adversaries either a stake lost or a sweeping sentence of condemnation. It was not on the ground of the superiority of his own mind that he triumphed, but on the ground of the nature of things and of the inevitable necessity that accompanied them. Still, his success was not an event without a moral character, the simple result of skill, strength, or fortune. Uninfluenced by any theory he had faith in truth and adopted it as the guide of his conduct. He did not pursue the victory of one opinion against the partisans of another; neither did he act from interest in the event alone, or merely for success. He did nothing which he did not think to be reasonable and just; so that his conduct, which had no systematic character that might be humbling to his adversary, had still a moral character which commanded respect.
Men had, moreover, the most thorough conviction of his disinterestedness, that great light to which men so willingly trust their fate; that vast power which draws after it their hearts, while at the same time it gives them confidence that their interests will not be surrendered, either as a sacrifice or as instruments to selfishness and ambition. A striking proof of his impartiality was afforded in the choice of the persons who were to form his cabinet under the law for the formation of the executive departments.
The government being completely organized and a system of revenue established, the important duty of filling the offices which had been created remained to be performed. In the execution of this delicate trust the purest virtue and the most impartial judgment were exercised by Washington in selecting the best talents and the greatest weight of character which the United States could furnish. The unmingled patriotism of the motives by which he was actuated, receives its clearest demonstration from a view of all his private letters on this subject, and the success of his endeavors is attested by the abilities and reputation which he drew into the public service.
At the head of the Department of Foreign Affairs, since denominated the Department of State, he placed Jefferson, who had been bred to the bar, and at an early period of life had acquired considerable reputation for extensive attainments in the science of politics. He had been a distinguished member of the Second Congress and had been offered a diplomatic appointment, which he had declined. Withdrawing from the administration of Continental affairs, he had been elected Governor of Virginia, which office he filled for two years. He afterwards again represented his native State in the councils of the Union, and in the year 1784 was appointed to succeed Dr. Franklin at the court of Versailles. In that station he had acquitted himself much to the public satisfaction. His "Notes on Virginia," which were read with applause, were believed to evince the soundness of his political opinions, and the Declaration of Independence was universally ascribed to his pen. He had long been placed by America amongst the most eminent of her citizens, and had long been classed by the President with those who were most capable of serving the nation. Having lately obtained permission to return for a short time to the United States, he was, while on his passage, nominated to this important office, and, on his arrival in Virginia, found a letter from the President, giving him the option of becoming the Secretary of Foreign Affairs or of retaining his station at the court of Versailles. He appears rather to have inclined to continue in his foreign appointment, and, in changing his situation, to have consulted the wishes of the first magistrate more than the preference of his own mind. [8]
The task of restoring public credit, of drawing order and arrangement from the chaotic confusion in which the finances of America were involved, and of devising means which should render the revenue productive and commensurate with the demand, in a manner least burdensome to the people, was justly classed among the most arduous of the duties which devolved on the new government. In discharging it, much aid was expected from the head of the treasury. This important, and at that time, intricate department, was assigned to Colonel Hamilton.
This gentleman was a native of the Island of St. Croix, and at a very early period of life had been placed by his friends in New York. Possessing an ardent temper, he caught fire from the concussions of the moment, and, with all the enthusiasm of youth, engaged first his pen, and afterwards his sword in the stern contest between the American Colonies and their parent State. Among the first troops raised by New York was a corps of artillery, in which he was appointed a captain. Soon after the war was transferred to the Hudson, his superior endowments recommended him to the attention of the Commander-in-Chief, into whose family, before completing his twenty-first year, he was invited to enter. Equally brave and intelligent, he continued in this situation to display a degree of firmness and capacity which commanded the confidence and esteem of his general and of the principal officers in the army.
After the capitulation at Yorktown, the war languished throughout the American continent and the probability that its termination was approaching daily increased.
The critical circumstances of the existing government rendered the events of the civil more interesting than those of the military department, and Colonel Hamilton accepted a seat in the Congress of the United States. In all the important acts of the day he performed a conspicuous part, and was greatly distinguished among those distinguished men whom the crisis had attracted to the councils of their country. He had afterwards been active in promoting those measures which led to the convention at Philadelphia, of which he was a member, and had greatly contributed to the adoption of the constitution by the State of New York. In the preeminent part he had performed, both in the military and civil transactions of his country, he had acquired a great degree of well-merited fame, and the frankness of his manners, the openness of his temper, the warmth of his feelings, and the sincerity of his heart, had secured him many valuable friends.
To talents equally splendid and useful he united a patient industry, not always the companion of genius, which fitted him, in a peculiar manner, for subduing the difficulties to be encountered by the man who should be placed at the head of the American finances. [9]
The Department of War was already filled by General Knox, and he was again nominated to it.
Throughout the contest of the Revolution this officer had continued at the head of the American artillery, and from being the colonel of a regiment, had been promoted to the rank of a major-general. In this important station he had preserved a high military character, and on the resignation of General Lincoln had been appointed Secretary of War. To his past services and to unquestionable? integrity, he was admitted to unite a sound understanding, and the public judgment, as well as that of the chief magistrate, pronounced him in all respects competent to the station he filled.
The office of attorney-general was filled by Edmund Randolph. To a distinguished reputation in the line of his profession, this gentleman added a considerable degree of political eminence. After having been, for several years the attorney-general of Virginia, he had been elected its Governor. While in this office he was chosen a member of the convention which framed the constitution, and was also elected to that which was called by the State for its adoption or rejection. After having served at the head of the executive the term permitted by the constitution of the State, he entered into its Legislature, where he preserved a great share of influence.
Such was the first cabinet council of the President. In its composition, public opinion as well as intrinsic worth had been consulted, and a high degree of character had been combined with real talent.
In the selection of persons for high judicial offices, the President was guided by the same principles. At the head of this department he placed John Jay.
From the commencement of the Revolution this gentleman had filled a large space in the public mind. Remaining, without intermission, in the service of his country, he had passed through a succession of high offices, and in all of them had merited the approbation of his fellow-citizens. To his pen, while in Congress, America was indebted for some of those masterly addresses which reflected most honor upon the government, and to his firmness and penetration was to be ascribed, in no inconsiderable degree, the happy issue of those intricate negotiations which were conducted, toward the close of the war, at Madrid and at Paris. On returning to the United States he had been appointed Secretary of Foreign Affairs, in which station he had conducted himself with his accustomed ability. A sound judgment improved by extensive reading and great knowledge of public affairs, unyielding firmness, and inflexible integrity, were qualities of which Mr. Jay had given frequent and signal proofs. Although for some years withdrawn from that profession to which he was bred, the acquisitions of his early life had not been lost, and the subjects on which his mind had been exercised were not entirely foreign from those which would, in the first instance, employ the courts in which he was to preside.
John Rutledge of South Carolina, James Wilson of Pennsylvania, William Gushing of Massachusetts, Robert Harrison of Maryland, and John Blair of Virginia, were nominated as associate justices. Some of these gentlemen had filled the highest law offices in their respective States, and all of them had received distinguished marks of the public confidence.
In the systems which had been adopted by the several States, offices corresponding to those created by the revenue laws of Congress had been already established.
Uninfluenced by considerations of personal regard, Washington could not be induced to change men whom he found in place, if worthy of being employed, and where the man who had filled such office in the former state of things was unexceptionable in his conduct and character he was uniformly reappointed. In deciding between competitors for vacant offices the law he prescribed for his government was to regard the fitness of candidates for the duties they would be required to discharge, and, where an equality in this respect existed, former merits and sufferings in the public service gave claims to preference which could not be overlooked.
In the legislative, as well as in the executive and judicial departments, great respectability of character was also associated with an eminent degree of talents. The constitutional prohibition to appoint any member of the Legislature to an office created during the time for which he had been elected did not exclude men of the most distinguished abilities from the First Congress. Impelled by an anxious solicitude respecting the first measures of the government its zealous friends had pressed into its service, and, in both branches of the Legislature, men were found who possessed the fairest claims to the public confidence.
From the duties attached to his office the Vice-President of the United States and President of the Senate, though not a member of the Legislature, was classed, in the public mind, with that department not less than with the executive. Elected by the whole people of America in common with the President he could not fail to be taken from the most distinguished citizens and to add to the dignity of the body over which he presided.
John Adams was one of the earliest and most ardent patriots of the Revolution. Bred to the bar, he had necessarily studied the constitution of his country and was among the most determined assertors of its rights. Active in guiding that high spirit which animated all New England, he became a member of the Congress of 1774 and was among the first who dared to avow sentiments in favor of independence. In that body he soon attained considerable eminence, and, at an early stage of the war, was chosen one of the commissioners to whom the interests of the United States in Europe were confided. In his diplomatic character he had contributed greatly to those measures which drew Holland into the war; had negotiated the treaty between the United States and the Dutch Republic, and had, at critical points of time, obtained loans of money which were of great advantage to his country. In the negotiations which terminated the war he had also rendered important services, and, after the ratification of the definitive articles of peace, had been deputed to Great Britain for the purpose of effecting a commercial treaty with that nation. The political situation of America having rendered this object unattainable he solicited leave to return, and arrived in the United States soon after the adoption of the constitution.
As a statesman John Adams had at all times ranked high in the estimation of his countrymen. He had improved a sound understanding by extensive political and historical reading, and perhaps no American had reflected more profoundly on the subject of government. The exalted opinion he entertained of his own country was flattering to his fellow-citizens, and the purity of his mind, the unblemished integrity of a life spent in the public service, had gained him their confidence.
A government, supported in all its departments by so much character and talent, at the head of which was placed a man whose capacity was undoubted, whose life had been one great and continued lesson of disinterested patriotism, and for whom almost every bosom glowed with an attachment bordering on enthusiasm, could not fail to make a rapid progress in conciliating the affection of the people. That all hostility to the constitution should subside, that public measures should receive universal approbation, that no particular disgusts and individual irritations should be excited, were expectations which could not reasonably be indulged. Exaggerated accounts were indeed occasionally circulated of the pomp and splendor which were affected by certain high officers of the monarchical tendencies of particular institutions and of the dispositions which prevailed to increase the powers of the executive. That the doors of the Senate were closed and that a disposition had been manifested by that body to distinguish the President of the United States by a title, gave considerable umbrage, and were represented as evincing inclinations in that branch of the Legislature unfriendly to republicanism. The exorbitance of salaries was also a subject of some declamation, and the equality of commercial privileges with which foreign bottoms entered American ports, was not free from objection. But the apprehensions of danger to liberty from the new system, which had been impressed on the minds of well-meaning men, were visibly wearing off; the popularity of the administration was communicating itself to the government, and the materials with which the discontented were furnished could not yet be efficaciously employed.
Toward the close of the session a report on a petition which had been presented at an early period by the creditors of the public residing in the State of Pennsylvania was taken up in the House of Representatives. Though many considerations rendered a postponement of this interesting subject necessary two resolutions were passed: the one, "declaring that the House considered an adequate provision for the support of the public credit, as a matter of high importance to the national honor and prosperity," and the other, directing "the Secretary of the Treasury to prepare a plan for that purpose, and to report the same to the House at its next meeting."
On the 29th of September (1789) Congress adjourned to the first Monday in the succeeding January (1790).
Throughout the whole of this laborious and important session perfect harmony subsisted between the executive and the Legislature, and no circumstance occurred which threatened to impair it. The modes of communication between the departments of government were adjusted in a satisfactory manner, and arrangements were made on some of those delicate points in which the Senate participate of executive power.
Washington's own views of the proceedings of Congress are expressed in the following extract from a letter to a friend:
"That Congress does not proceed with all that dispatch which people at a distance expect, and which, were they to hurry business, they possibly might, is not to be denied. That measures have been agitated which are not pleasing to Virginia—and others, pleasing perhaps to her, but not to some other States—is equally unquestionable. Can it well be otherwise in a country so extensive, so diversified in its interests? And will not these different interests naturally produce—in an assembly of representatives who are to legislate for, and to assimilate and reconcile them to, the general welfare—long, warm, and animated debates? Most assuredly they will, and if there was the same propensity in mankind for investigating the motives as there is for censuring the conduct of public characters, it would be found that the censure so freely bestowed is oftentimes unmerited and uncharitable. For instance, the condemnation of Congress for sitting only four hours in the day. The fact is, by the established rules of the House of Representatives, no committee can sit whilst the House is sitting, and that is, and has been for a considerable time, from 10 o'clock in the forenoon until 3, often later, in the afternoon, before and after which the business is going on in committees. If this application is not as much as most constitutions are equal to, I am mistaken.
"Many other things, which undergo malignant constructions, would be found, upon a candid examination, to wear a better face than is given to them. The misfortune is that the enemies to the government, always more active than its friends and always upon the watch to give it a stroke, neglect no opportunity to aim one. If they tell truth it is not the whole truth, by which means one side only of the picture is exhibited, whereas, if both sides were seen it might, and probably would, assume a different form in the opinion of just and candid men, who are disposed to measure matters by a continental scale.
"I do not mean, however, from what I have here said, to justify the conduct of Congress in all its movements, for some of these movements, in my opinion, have been injudicious, and others unreasonable; whilst the questions of assumption, residence, and other matters, have been agitated with a warmth and intemperance, with prolixity and threats, which, it is to be feared, have lessened the dignity of that body and decreased that respect which was once entertained for it. And this misfortune is increased by many members, even among those who wish well to the government, ascribing, in letters to their respective States, when they are defeated in a favorite measure, the worst motives for the conduct of their opponents, who, viewing matters through another medium, may and do retort in their turn, by which means jealousies and distrusts are spread most impolitically far and wide, and will, it is to be feared, have a most unhappy tendency to injure our public affairs, which, if wisely managed, might make us, as we are now by Europeans thought to be, the happiest people upon earth."
Anxious to visit New England to observe in person the condition of the country and the dispositions of the people toward the government and its measures, the President was disposed to avail himself of the short respite from official cares afforded by the recess of Congress, to make a tour through the eastern States.
His resolution being taken and the executive business which required his immediate personal attendance being dispatched, he commenced his tour on the 15th of October (1789), and, passing through Connecticut and Massachusetts, as far as Portsmouth in New Hampshire, returned by a different route to New York, where he arrived on the 13th of November.
With this visit the President had much reason to be satisfied. To contemplate the theater on which many interesting military scenes had been exhibited, and to review the ground on which his first campaign as Commander-in-Chief of the American army had been made, were sources of rational delight. To observe the progress of society, the improvements in agriculture, commerce, and manufactures, and the temper, circumstances, and dispositions of the people, could not fail to be grateful to an intelligent mind, and an employment in all respects worthy of the chief magistrate of the nation. The reappearance of their general in the high station he now filled brought back to recollection the perilous transactions of the war, and the reception universally given to him attested the unabated love which was felt for his person and character, and indicated unequivocally the growing popularity, at least in that part of the Union, of the government he administered.
The sincerity and warmth with which he reciprocated the affection expressed for his person in the addresses presented to him was well calculated to preserve the sentiments which were generally diffused. "I rejoice with you, my fellow-citizens," said he in answer to an address from the inhabitants of Boston, "in every circumstance that declares your prosperity, and I do so most cordially, because you have well deserved to be happy.
"Your love of liberty, your respect for the law, your habits of industry, and your practice of the moral and religious obligations, are the strongest claims to national and individual happiness; and they will, I trust, be firmly and lastingly established."
But the interchange of sentiments with the companions of his military toils and glory will excite most interest, because on both sides the expressions were dictated by the purest and most delicious feelings of the human heart.
From the Cincinnati of Massachusetts he received the following address: "Amidst the various gratulations which your arrival in this metropolis has occasioned, permit us, the members of the Society of the Cincinnati in this commonwealth, most respectfully to assure you of the ardor of esteem and affection you have so indelibly fixed in our hearts, as our glorious leader in war and illustrious example in peace.
"After the solemn and endearing farewell on the banks of the Hudson, which our anxiety presaged as final, most peculiarly pleasing is the present unexpected meeting. On this occasion we cannot avoid the recollection of the various scenes of toil and danger through which you conducted us, and while we contemplate various trying periods of the war, and the triumphs of peace, we rejoice to behold you, induced by the unanimous voice of your country, en-terming upon other trials and other services alike important, and, in some points of view, equally hazardous. For the completion of the great purposes which a grateful country has assigned you, long, very long, may your invaluable life be preserved. And as the admiring world, while considering you as a soldier, have long wanted a comparison, may your virtue and talents as a statesman leave them without a parallel.
"It is not in words to express an attachment founded like ours. We can only say that, when soldiers, our greatest pride was a promptitude of obedience to your orders; as citizens, our supreme ambition is to maintain the character of firm supporters of that noble fabric of Federal government over which you preside.
"As members of the Society of the Cincinnati it will be our endeavor to cherish those sacred principles of charity and fraternal attachment which our institution inculcates. And while our conduct is thus regulated, we can never want the patronage of the first of patriots and the best of men."
To this address the following answer was returned:
"In reciprocating with gratitude and sincerity the multiplied and affecting gratulations of my fellow-citizens of this commonwealth, they will all of them with justice allow me to say, that none can be dearer to me than the affectionate assurances which you have expressed. Dear, indeed, is the occasion which restores an intercourse with my faithful associates in prosperous and adverse fortune; and enhanced are the triumphs of peace, participated with those whose virtue and valor so largely contributed to procure them. To that virtue and valor your country has confessed her obligations. Be mine the grateful task to add the testimony of a connection which it was my pride to own in the field, and is now my happiness to acknowledge in the enjoyments of peace and freedom.
"Regulating your conduct by those principles which have heretofore governed your actions as men, soldiers, and citizens, you will repeat the obligations conferred on your country, and you will transmit to posterity an example that must command their admiration and grateful praise. Long may you continue to enjoy the endearments of fraternal attachments and the heartfelt happiness of reflecting that you have faithfully done your duty.
"While I am permitted to possess the consciousness of this worth, which has long bound me to you by every tie of affection and esteem, I will continue to be your sincere and faithful friend."
After Washington's return to New York from his tour to the north and east, Mrs. Washington expressed, in the following letter, the gratification and benefit he had derived from his journey. It also presents a delightful view of her feelings and character:
"NEW YORK, December 26th, 1789.
"MY DEAR MADAM:—Your very friendly letter, of the 27th of last month, has afforded me much more satisfaction than all the formal compliments and empty ceremonies of mere etiquette could possibly have done. I am not apt to forget the feelings that have been inspired by my former society with good acquaintances, nor to be insensible to their expressions of gratitude to the President of the United States; for you know me well enough to do me the justice to believe that I am only fond of what comes from the heart. Under a conviction that the demonstrations of respect and affection which have been made to the President originate from that source, I cannot deny that I have taken some interest and pleasure in them. The difficulties which presented themselves to view upon his first entering upon the Presidency, seem thus to be, in some measure, surmounted. It is owing to this kindness of our numerous friends, in all quarters, that my new and unwished-for situation is not indeed a burden to me. When I was much younger, I should probably have enjoyed the innocent gayeties of life as much as most of my age. But I had long since placed all the prospects of my future worldly happiness in the still enjoyments of the fireside at Mount Vernon.
"I little thought, when the war was finished, that any circumstances could possibly have happened which would call the General into public life again. I had anticipated that, from that moment, we should have been left to grow old, in solitude and tranquility, together. That was, my dear madam, the first and dearest wish of my heart; but in that I have been disappointed. I will not, however, contemplate with too much regret disappointments that were inevitable. Though the General's feelings and my own were perfectly in unison with respect to our predilection for private life, yet I cannot blame him for having acted according to his ideas of duty in obeying the voice of his country. The consciousness of having attempted to do all the good in his power, and the pleasure of finding his fellow-citizens so well satisfied with the disinterestedness of his conduct, will doubtless be some compensation for the great sacrifices which I know he has made. Indeed, in his journey from Mount Vernon to this place, in his late tour through the eastern States, by every public and by every private information which has come to him, I am persuaded that he has experienced nothing to make him repent his having acted from what he conceived to be, alone, a sense of indispensable duty. On the contrary, all his sensibility has been awakened in receiving such repeated and unequivocal proofs of sincere regards from all his countrymen.
"With respect to myself, I sometimes think the arrangement is not quite as it ought to have been; that I, who had much rather be at home, should occupy a place with which a great many younger and gayer women would be prodigiously pleased. As my grandchildren and domestic connections make up a great portion of the felicity which I looked for in this world, I shall hardly be able to find any substitute that would indemnify me for the loss of a part of such endearing society. I do not say this because I feel dissatisfied with my present station. No, God forbid! For everybody and everything conspire to make me as contented as possible in it; yet I have seen too much of the vanity of human affairs to expect felicity from the splendid scenes of public life. I am still determined to be cheerful and to be happy in whatever situation I may be; for I have also learnt from experience that the greater part of our happiness or misery depends upon our dispositions, and not upon our circumstances. We carry the seeds of the one or the other about with us, in our minds, where-so-ever we go. I have two of my grandchildren with me, who enjoy advantages in point of education, and who, I trust, by the goodness of Providence, will continue to be a great blessing to me. My other two grandchildren are with their mother, in Virginia.
"The President's health is quite re-established by his late journey. Mine is much better than it used to be. I am sorry to hear that General Warren has been ill; hope, before this time, that he may be entirely recovered. We should rejoice to see you both. To both, I wish the best of Heaven's blessings; and am, my dear madam, with esteem and regard, your friend and humble servant,
"M. WASHINGTON."
Soon after his return to New York, after his visit to the eastern States, the President was informed of the ill success which had attended his first attempt to negotiate a peace with the Creek Indians. General Lincoln, Mr. Griffin, and Colonel Humphreys had been deputed on this mission, and had met M'Gillivray with several other chiefs, and about 2,000 men, at Rock Landing, on the Oconee, on the frontiers of Georgia. The treaty commenced with favorable appearances, but was soon abruptly broken off by M'Gillivray. Some difficulties arose on the subject of a boundary, but the principal obstacles to a peace were supposed to grow out of his personal interests, and his connections with Spain.
This intelligence was more than counterbalanced by the accession of North Carolina to the Union. In the month of November a second convention had assembled under the authority of the Legislature of that State, and the constitution was adopted by a great majority.
We embrace the occasion afforded by the interval between the two sessions of Congress to insert some further notices of Washington's mode of life in New York, as well as of his personal appearance.
The manner of living observed by President Washington has been described in the following speech, delivered by Mr. Stuyvesant, the president of the New York Historical society, at the dinner on the occasion of the jubilee celebration, in the city of New York, April 30, 1839.
"It cannot be expected, at this time and place, that any allusion should be made to the public character of Washington; we are all in possession of his history, from the dawn of life to the day that Mount Vernon was wrapped in sable; and, after the exercises of this morning, if any attempt to portray his political or military life were made, it would only be the glimmering light of a feeble star succeeding the rays of a meridian sun.
"But the occasion affords an opportunity of congratulating the small number of gentlemen present, who enjoyed the privilege of participating in the ceremonies of the 30th of April, 1789; they will recall to their memories the spontaneous effusions of joy that pervaded the breasts of the people who on that occasion witnessed the organization of a constitutional government, formed by intelligent freemen, and consummated by placing at its head the man in whom their affections were concentrated as the father of their country.
"Washington's residence in this city, after his inauguration, was limited to about two years. His deportment in life was not plain, nor was it at all pompous, for no man was more devoid of ostentation than himself, his style, however, gave universal satisfaction to all classes in the community, and, his historian has informed us, was not adopted for personal gratification, but from a devotion to his country's welfare. Possessing a desirable stature, an erect frame, and, superadded, a lofty and sublime countenance, he never appeared in public without arresting the reverence and admiration of the beholder; and the stranger who had never before seen him, was at the first impression convinced it was the President who delighted him.
"He seldom walked in the street; his public recreation was in riding. When accompanied by Mrs. Washington, he rode in a carriage drawn by six horses, with two outriders who wore rich livery, cocked hats, with cockades and powder. When he rode on horseback he was joined by one or more of the gentlemen of his family and attended by his outriders. He always attended Divine service on Sundays. His carriage on those occasions contained Mrs. Washington and himself, with one or both of their grandchildren and was drawn by two horses, with two footmen behind; it was succeeded by a post-chaise, accommodating two gentlemen of his household. On his arrival in the city the only residence that could be procured was a house in Cherry street, long known as the mansion of the Franklin family, but in a short time afterwards he removed to and occupied the house in Broadway, now Bunker's hotel.
"Washington held a levee once a week, and, from what is now recollected, they were generally well attended, but confined to men in public life and gentlemen of leisure, for at that day it would have been thought a breach of decorum to visit the President of the United States in dishabille.
"The arrival of Washington, in 1789, to assume the reins of government, was not his first entry into this city, accompanied with honor to himself and glory to this country. This was on the 24th of November, 1783, and here again, I must observe, the number present who witnessed the ceremonies of that day, must, indeed, be very limited; on that day he made his triumphal entry, not to sway the sceptre, but to lay down his sword, not for personal aggrandizement, but to secure the happiness of his countrymen. He early in the morning left Harlem and entered the city through what is now called the Bowery; he was escorted by cavalry and infantry and a large concourse of citizens, on horseback and on foot, in plain dress. The latter must have been an interesting sight to those of mature age who were capable of comprehending their merit. In their ranks were seen men with patched elbows, odd buttons on their coats and unmatched buckles in their shoes; they were not, indeed, Falstaff's company of scarecrows, but the most respectable citizens who had been in exile, and endured privations we know not of, for seven long and tedious years."
On that occasion, and on his arrival in 1789, Washington was received, as is well known, by the elder Clinton, who was at both periods Governor of the State.
In the following extract, from a reliable source, we have a fine description of the effect produced by Washington's personal appearance and manners on the mind of a highly intelligent observer:
"The beautiful effusion which the reader will find below is the production of the chaste and classic mind of the late venerable and distinguished senator from Rhode Island, Mr. Robbins, and was occasioned by the following circumstances. During the session of 1837-8, Mr. Webster entertained a large party of friends at dinner, among them the venerable senator we have named. The evening passed off with much hilarity, enlivened with wit and sentiment, but, during the greater part of the time, Mr. Robbins maintained that grave but placid silence which was his habit. While thus apparently abstracted, someone suddenly called on him for a toast, which call was seconded by the company. He rose, and in his surprise asked if they were serious in making such a demand of so old a man, and being assured that they were, he said, if they would suspend their hilarity for a few moments, he would give them a toast and preface it with a few observations. Having thus secured a breathless stillness, he went on to remark, that they were then on the verge of the 22d of February, the anniversary of the birth of the great patriot and statesman of our country, whom all delighted to remember and to honor, and he hoped he might be allowed the privilege of an aged man to recur, for a few moments, to past events connected with his character and history. He then proceeded and delivered in the most happy and impressive manner the beautiful speech which now graces our columns. The whole company were electrified by his patriotic enthusiasm, and one of the guests, before they separated, begged that he would take the trouble to put on paper what he had so happily expressed and furnish a copy for publication. Mr. Robbins obligingly complied with this request on the following day, but by some accident the manuscript got mislaid and eluded all search for it until a few days ago, when it was unexpectedly recovered, and is now presented to our readers.
"'On the near approach of that calendar-day which gave birth to Washington, I feel rekindling within me some of those emotions always connected with the recollection of that hallowed name. Permit me to indulge them, on this occasion, for a moment, in a few remarks, as preliminary to a sentiment which I shall beg leave to propose.
"'I consider it as one of the consolations of my age, that I am old enough and fortunate enough to have seen that wonderful man. This happiness is still common to so many yet among the living, that less is thought of it now than will be in after-times; but it is no less a happiness to me on that account.
"'While a boy at school, I saw him for the first time; it was when he was passing through New England, to take command in chief of the American armies at Cambridge. Never shall I forget the impression his imposing presence then made upon my young imagination, so superior did he seem to me to all that I had seen or imagined of the human form for striking effect. I remember with what delight, in my after studies, I came to the line in Virgil that expressed all the enthusiasm of my own feelings, as inspired by that presence, and which I could not often enough repeat:
"'I saw him again at his interview with Rochambeau, when they met to settle the plan of combined operations between the French fleet and the American armies against the British on the Chesapeake, and then I saw the immense crowd drawn together from all the neighboring towns, to get, if possible, one look at the man who had throned himself in every heart. Not one of that immense crowd doubted the final triumph of his country in her arduous conflict, for everyone saw, or thought he saw, in Washington, her guardian angel, commissioned by Heaven to insure her that triumph. 'Nil desperandum' was the motto with everyone.
"'In after-life, when the judgment corrects the extravagance of early impressions, I saw him on several occasions, but saw nothing to admonish me of any extravagance in my early impressions. "Credo equidem, nee vana fides, genus esse Deorum." [10]
"'"Nil desperandum, Teucro duce, et auspice Teucro." [11] The impression was still the same; I had the same overpowering sense of standing in the presence of some superior being.
"'It is indeed remarkable, and I believe unique, in the history of men, that Washington made the same impression upon all minds, at all places, and at once. When his fame first broke upon the world, it spread at once over the whole world. By the consent of mankind, by the universal sentiment, he was placed at the head of the human species; above all envy, because above all emulation; for no one then pretended, or has pretended to be—at least who has been allowed to be—the co-rival of Washington in fame.
"'When the great Frederick of Prussia sent his portrait to Washington, with this inscription upon it—"From the oldest general in Europe to the greatest general in the world," he did but echo the sentiment of all the chivalry of Europe. Nor was the sentiment confined to Europe, nor to the bounds of civilization; for the Arab of the desert talked of Washington in his tent; his name wandered with the wandering Scythian, and was cherished by him as a household word in all his migrations. No clime was so barbarous as to be a stranger to the name, but everywhere, and by all men, that name was placed at the same point of elevation, and above compare. As it was in the beginning, so it is now; of the future we cannot speak with certainty. Some future age, in the endless revolutions of time, may produce another Washington, but the greater probability is, that he is destined to remain forever, as he now is, the Phoenix of human kind.
"'What a possession to his country is such a fame! Such a "Clarum et venerabile nomen gentibus?" [12]
"'To all his countrymen it gives, and forever will give, a passport to respect wherever they go, to whatever part of the globe, for his country is in every other identified with that fame.
"'What, then, is incumbent upon us, his countrymen? Why, to be such a people as shall be worthy of such a fame—a people of whom it shall be said, "No wonder such a people have produced such a man as Washington." I give you, therefore, this sentiment:
"'The memory of Washington: May his countrymen prove themselves a people worthy of his fame.'"
1. Footnote: Memoir of Martha Washington in Longacre's Gallery.
2. Footnote: Mrs. Ellet, "Women of the Revolution"
3. Footnote: One of the first topics of debate in Congress was the title by which the President should be addressed. Such title as "His Highness," "His Mightiness," etc., having been discussed, it was finally and very properly determined that the title of "President of the United States" should be used; and it was accordingly used in the answers to the inaugural address. No title could be more dignified.
4. Footnote: Marshall
5. Footnote: Pitkin.
6. Footnote: Tucker's "Life of Jefferson."
7. Footnote: "Essay on the Character and Influence of Washington."
8. Footnote: "Washington's Writings," vols. IX, X.
9. Footnote: Marshall.
10. Footnote: I verily believe, nor is my confidence unfounded, that he is of Divine descent.
11. Footnote: Let us never despair, with Teucer to lead us, and under Teucer's auspices.
12. Footnote: A name, illustrious and venerable among the nations!
CHAPTER III.
THE PUBLIC CREDIT ESTABLISHED. 1789-1790.
During the recess of Congress Washington generally visited Mount Vernon, but, after the rising of the first Congress under the constitution, his visit to New England consumed so much time that he remained in New York till Congress reassembled. His eastern tour commenced on the 15th of October, as we have already seen, and ended on the 13th of November. As Congress was to meet on the 1st of January, 1790, he had no time to visit Mount Vernon. During the short time which elapsed before that day he was very earnestly engaged in the duties of his office and in correspondence with public men on political affairs. One of his letters, addressed to the Emperor of Morocco, is curious, as showing the tact with which he accommodated his style to the comprehension of the oriental sovereign. It was written in consequence of an intimation from Mr. Chiappe, the American agent at Mogadore, that the emperor was not well pleased at receiving no acknowledgment from the government in respect to the treaty with Morocco of the 28th of June, 1786, his subsequent faithful observance of the same, as well as his good offices in favor of the Americans with the bashaws of Tunis and Tripoli. The letter is as follows:
"GREAT AND MAGNANIMOUS FRIEND:
"Since the date of the last letter which the late Congress by their President addressed to your Imperial Majesty, the United States of America have thought proper to change their government and to institute a new one, agreeably to the constitution, of which I have the honor of herewith enclosing a copy. The time necessarily employed in the arduous task and the derangements occasioned by so great, though peaceable, a revolution, will apologize and account for your Majesty's not having received those regular advices and marks of attention from the United States, which the friendship and magnanimity of your conduct toward them afforded reason to expect.
"The United States having unanimously appointed me to the supreme executive authority in this nation, your Majesty's letter of the 17th of August, 1788, which, by reason of the dissolution of the late government, remained unanswered, has been delivered to me. I have also received the letters which your Imperial Majesty has been so kind as to write, in favor of the United States, to the bashaws of Tunis and Tripoli, and I present to you the sincere acknowledgments and thanks of the United States for this important mark of your friendship for them.
"We greatly regret that the hostile disposition of those regencies toward this nation, who have never injured them, is not to be removed on terms in our power to comply with. Within our territories there are no mines either of gold or silver, and this young nation, just recovering from the waste and desolation of a long war, has not as yet had time to acquire riches by agriculture and commerce. But our soil is bountiful and our people industrious, and we have reason to flatter ourselves that we shall gradually become useful to our friends.
"The encouragement which your Majesty has been pleased generously to give to our commerce with your dominions, the punctuality with which you have caused the treaty with us to be observed, and the just and generous measures taken in the case of Captain Proctor, make a deep impression on the United States, and confirm their respect for, and attachment to, your Imperial Majesty.
"It gives me pleasure to have this opportunity of assuring your Majesty that, while I remain at the head of this nation, I shall not cease to promote every measure that may conduce to the friendship and harmony which so happily subsist between your empire and them, and shall esteem myself happy on every occasion of convincing your Majesty of the high sense which, in common with the whole nation, I entertain of the magnanimity, wisdom, and benevolence of your Majesty. In the course of the approaching winter the national Legislature, which is called by the former name of Congress, will assemble, and I shall take care that nothing be omitted that may be necessary to cause the correspondence between our countries to be maintained and conducted in a manner agreeable to your Majesty and satisfactory to all parties concerned in it.
"May the Almighty bless your Imperial Majesty—our great and magnanimous friend—with his constant guidance and protection.
"Written at the city of New York, the 1st day of December, 1789."
* * * * *
In December, 1789, Washington was requested by Mr. Joseph Willard, the president of Harvard University, to sit to Mr. Savage for his portrait, to be placed in the philosophy chamber of the university. Washington promptly replied to the letter of the president, and the portrait was painted by Mr. Savage, and deposited in the university.
On the 8th of January, 1790, the President met both houses of Congress in the Senate chamber. In his speech, which was delivered from the chair of the Vice-President, after congratulating Congress on the accession of the important State of North Carolina to the Union and on the prosperous aspect of American affairs, he proceeded to recommend certain great objects of legislation to their more especial consideration.
"Among the many interesting objects," continued the speech, "which will engage your attention, that of providing for the common defense will merit your particular regard. To be prepared for war is one of the most effectual means of preserving peace.
"A free people ought not only to be armed but disciplined, to which end a uniform and well-digested plan is requisite, and their safety and interest require that they should promote such manufactories as tend to render them independent on others for essential, particularly for military, supplies."
As connected with this subject a proper establishment for the troops which they might deem indispensable, was suggested for their mature deliberation, and the indications of a hostile temper given by several tribes of Indians, were considered as admonishing them of the necessity of being prepared to afford protection to the frontiers and to punish aggression.
The interests of the United States were declared to require that the means of keeping up their intercourse with foreign nations should be provided, and the expediency of establishing a uniform rule of naturalization was suggested.
After expressing his confidence in their attention to many improvements essential to the prosperity of the interior, the President added: "Nor am I less persuaded that you will agree with me in opinion that there is nothing which can better deserve your patronage than the promotion of science and literature. Knowledge is in every country the surest basis of public happiness. In one, in which the measures of government receive their impression so immediately from the sense of the community as in ours, it is proportionally essential. To the security of a free constitution it contributes in various ways, by convincing those who are entrusted with the public administration that every valuable end of government is best answered by the enlightened confidence of the people, and by teaching the people themselves to know and to value their own rights; to discern and provide against invasions of them; to distinguish between oppression and the necessary exercise of lawful authority—between burdens proceeding from a disregard to their convenience, and those resulting from the inevitable exigencies of society; to discriminate the spirit of liberty from that of licentiousness, cherishing the first, avoiding the last, and uniting a speedy but temperate vigilance against encroachments, with an inviolable respect to the laws.
"Whether this desirable object will be best promoted by affording aids to seminaries of learning already established by the institution of a national university or by any other expedients, will be well worthy of a place in the deliberations of the Legislature."
Addressing himself then particularly to the representatives, he said: "I saw with peculiar pleasure, at the close of the last session, the resolution entered into by you, expressive of your opinion that an adequate provision for the support of the public credit is a matter of high importance to the national honor and prosperity. In this sentiment I entirely concur, and to a perfect confidence in your best endeavors to devise such a provision as will be truly consistent with the end, I add an equal reliance on the cheerful cooperation of the other branch of the Legislature. It would be superfluous to specify inducements to a measure in which the character and permanent interests of the United States are so obviously and so deeply concerned, and which has received so explicit a sanction from your declaration."
Addressing himself again to both houses he observed that the estimates and papers respecting the objects particularly recommended to their attention would be laid before them, and concluded with saying: "The welfare of our country is the great object to which our cares and efforts ought to be directed, and I shall derive great satisfaction from a cooperation with you in the pleasing though arduous task of insuring to our fellow-citizens the blessings which they have a right to expect from a free, efficient, and equal government."
The answers of both houses were indicative of the harmony which subsisted between the executive and legislative departments.
Congress had been so occupied during its first session with those bills which were necessary to bring the new system into full operation and to create an immediate revenue, that some measures which possessed great and pressing claims to immediate attention had been unavoidably deferred. The neglect under which the creditors of the public had been permitted to languish could not fail to cast an imputation on the American republic, and had been sincerely lamented by the wisest among those who administered the former government. The power to comply substantially with the engagements of the United States being at length conferred on those who were bound by them, it was confidently expected by the friends of the constitution that their country would retrieve its reputation, and that its fame would no longer be tarnished with the blots which stain a faithless people.
On the 9th of January (1790), a letter from Mr. Hamilton, the Secretary of the Treasury, to the Speaker of the House of Representatives, was read, stating that, in obedience to the resolution of the 21st of September (1789), he had prepared a plan for the support of public credit, which he was ready to report when the House should be pleased to receive it, and, after a short debate in which the personal attendance of the secretary, for the purpose of making explanations, was urged by some and opposed by others, it was resolved that the report should be received in writing on the succeeding Thursday.
Availing himself of the latitude afforded by the terms of the resolution under which he acted, the secretary had introduced into his report an able and comprehensive argument elucidating and supporting the principles it contained. After displaying, with strength and perspicuity, the justice and the policy of an adequate provision for the public debt, he proceeded to discuss the principles on which it should be made.
"It was agreed," he said, "by all, that the foreign debt should be provided for according to the precise terms of the contract. It was to be regretted that, with respect to the domestic debt, the same unanimity of sentiment did not prevail."
The first point on which the public appeared to be divided, involved the question, "whether a discrimination ought not to be made between original holders of the public securities and present possessors by purchase." After reviewing the arguments generally urged in its support, the secretary declared himself against this discrimination. He deemed it "equally unjust and impolitic, highly injurious even to the original holders of public securities, and ruinous to public credit." To the arguments with which he enforced these opinions, he added the authority of the government of the Union. From the circular address of Congress to the States of the 26th of April, 1783, accompanying their revenue system of the 18th of the same month, passages were selected indicating, unequivocally, that in the view of that body the original creditors, and those who had become so by assignment, had equal claims upon the nation.
After reasoning at great length against a discrimination between the different creditors of the Union, the secretary proceeded to examine whether a difference ought to be permitted to remain between them and the creditors of individual States.
Both descriptions of debt were contracted for the same objects and were in the main the same. Indeed, a great part of the particular debts of the States had arisen from assumptions by them on account of the Union, and it was most equitable that there should be the same measure of retribution for all. There were many reasons, some of which were stated, for believing this would not be the case, unless the State debts should be assumed by the nation.
In addition to the injustice of favoring one class of creditors more than another which was equally meritorious, many arguments were urged in support of the policy of distributing to all with an equal hand from the same source.
After an elaborate discussion of these and some other points connected with the subject, the secretary proposed that a loan should be opened to the full amount of the debt, as well of the particular States as of the Union.
The terms to be offered were—
First. That for every $100 subscribed payable in the debt, as well interest as principal, the subscriber should be entitled to have two-thirds funded on a yearly interest of six per cent, (the capital redeemable at the pleasure of government by the payment of the principal), and to receive the other third in lands of the western territory at their then actual value. Or,
Secondly. To have the whole sum funded at a yearly interest of four per cent., irredeemable by any payment exceeding five dollars per annum both on account of principal and interest, and to receive as a compensation for the reduction of interest, fifteen dollars and eighty cents, payable in lands as in the preceding case. Or,
Thirdly. To have sixty-six and two-thirds of a dollar funded at a yearly interest of six per cent., irredeemable also by any payment exceeding four dollars and two-thirds of a dollar per annum on account both of principal and interest, and to have at the end of ten years twenty-six dollars and eighty-eight cents funded at the like interest and rate of redemption.
In addition to these propositions, the creditors were to have an option of vesting their money in annuities on different plans, and it was also recommended to open a loan at five per cent, for ten millions of dollars, payable one-half in specie and the other half in the debt, irredeemable by any payment exceeding six dollars per annum both of principal and interest.
By way of experiment, a tontine, on principles stated in the report, was also suggested.
The secretary was restrained from proposing to fund the whole debt immediately at the current rate of interest, by the opinion, "that although such a provision might not exceed the abilities of the country, it would require the extension of taxation to a degree and to objects which the true interests of the creditors themselves would forbid. It was therefore to be hoped and expected that they would cheerfully concur in such modifications of their claims, on fair and equitable principles as would facilitate to the government an arrangement substantial, durable, and satisfactory to the community. Exigencies might ere long arise which would call for resources greatly beyond what was now deemed sufficient for the current service, and should the faculties of the country be exhausted or even strained to provide for the public debt, there could be less reliance on the sacredness of the provision.
"But while he yielded to the force of these considerations, he did not lose sight of those fundamental principles of good faith which dictate that every practicable exertion ought to be made, scrupulously to fulfill the engagements of government; that no change in the rights of its creditors ought to be attempted without their voluntary consent, and that this consent ought to be voluntary in fact, as well as in name. Consequently, that every proposal of a change ought to be in the shape of an appeal to their reason and to their interest, not to their necessities. To this end, it was requisite that a fair equivalent should be offered for what might be asked to be given up and unquestionable security for the remainder." This fair equivalent for the proposed reduction of interest was, he thought, offered in the relinquishment of the power to redeem the whole debt at pleasure.
That a free judgment might be exercised by the holders of public securities in accepting or rejecting the terms offered by the government, provision was made in the report for paying to nonsubscribing creditors a dividend of the surplus which should remain in the treasury after paying the interest of the proposed loans; but, as the funds immediately to be provided were calculated to produce only four per cent. on the entire debt, the dividend, for the present, was not to exceed that rate of interest.
To enable the treasury to support this increased demand upon it, an augmentation of the duties on imported wines, spirits, tea, and coffee was proposed and a duty on homemade spirits was also recommended.
This celebrated report, which has been alike the fruitful theme of extravagant praise and bitter censure, merits the more attention, because the first regular and systematic opposition to the principles on which the affairs of the Union were administered, originated in the measures which were founded on it.
On the 28th of January (1790), says Marshall, this subject was taken up, and, after some animadversions on the speculations in the public debt to which the report, it was said, had already given birth, the business was postponed until the 8th of February, when it was again brought forward.
Several resolutions affirmative of the principles contained in the report, were moved by Mr. Fitzsimmons. To the first, which respected a provision for the foreign debt, the House agreed without a dissenting voice. The second, in favor of appropriating permanent funds for payment of the interest on the domestic debt and for the gradual redemption of the principal, gave rise to a very animated debate. [1]
Mr. Jackson declared his hostility to funding systems generally. To prove their pernicious influence, he appealed to the histories of Florence, Genoa, and Great Britain, and contending that the subject ought to be deferred until North Carolina should be represented, moved that the committee should rise. This question being decided in the negative, Mr. Scott declared the opinion that the United States were not bound to pay the domestic creditors the sums specified in the certificates of debts in their possession. He supported this opinion by urging, not that the public had received less value than was expressed on the face of the paper which had been issued, but that those to whom it had been delivered by parting with it at two shillings and sixpence in the pound, had themselves fixed the value of their claims, and had manifested their willingness to add to their other sacrifices this deduction from their demand upon the nation. He therefore moved to amend the resolution before the committee so as to require a resettlement of the debt.
The amendment was opposed by Mr. Boudinot, Mr. Lawrence, Mr. Ames, Mr. Sherman, Mr. Hartley, and Mr. Goodhue. They stated at large the terms on which the debt had been contracted, and urged the confidence which the creditors had a right to place in the government for its discharge according to settlements already made, and acknowledgments already given. The idea that the legislative body could diminish an ascertained debt was reprobated with great force, as being at the same time unjust, impolitic, and subversive of every principle on which public contracts are founded. The evidences of debt possessed by the creditors of the United States were considered as public bonds, for the redemption of which the property and the labor of the people were pledged.
After the debate had been protracted to some length, the question was taken on Mr. Scott's amendment, and it passed in the negative.
Mr. Madison then rose, and, in an eloquent speech, replete with argument, proposed an amendment to the resolution, the effect of which was to discriminate between the public creditors, so as to pay the present holder of assignable paper the highest price it had borne in the market, and give the residue to the person with whom the debt was originally contracted. Where the original creditor had never parted with his claim, he was to receive the whole sum acknowledged to be due on the face of the certificate.
This motion was supported by Mr. Jackson, Mr. White, Mr. Moore, Mr. Page, Mr. Stone, Mr. Scott, and Mr. Seney.
It was opposed with great earnestness and strength of argument by Mr. Sedgewic, Mr. Lawrence, Mr. Smith, of South Carolina, Mr. Ames, Mr. Gerry, Mr. Boudinot, Mr. Wadsworth, Mr. Goodhue, Mr. Hartley, Mr. Bland, Mr. Benson, Mr. Burke, and Mr. Livermore.
The argument was ably supported on both sides, was long, animated, and interesting. At length the question was put and the amendment was rejected by a great majority.
This discussion deeply engaged the public attention. The proposition was new and interesting. That the debt ought to be diminished for the public advantage, was an opinion which had frequently been advanced, and was maintained by many. But a reduction from the claims of its present holders for the benefit of those who had sold their rights, was a measure which saved nothing to the public purse, and was therefore recommended only by considerations, the operation of which can never be very extensive. Against it were arrayed all who had made purchases, and a great majority of those who conceived that sound policy and honest dealing require a literal observance of public contracts.
Although the decision of Congress against a discrimination in favor of the original creditor produced no considerable sensation, the determination on that part of the secretary's report which was the succeeding subject of deliberation, affecting political interests and powers which are never to be approached without danger, seemed to unchain all those fierce passions which a high respect for the government, and for those who administered it, had in a great measure restrained.
The manner in which the several States entered into and conducted the war of the Revolution, is well known. Acting in some respects separately, and in others conjointly, for the attainment of a common object, their resources were exerted, sometimes under the authority of Congress, sometimes under the authority of the local government, to repel the enemy wherever he appeared. The debt incurred in support of the war was, therefore, in the first instance, contracted partly by Congress and partly by the States. When the system of requisitions was adopted, the transactions of the Union were carried on almost entirely through the agency of the States, and, when the measure of compensating the army for the depreciation of their pay became necessary, this burden, under the recommendation of Congress, was assumed by the respective States. Some had funded this debt, and paid the interest upon it. Others had made no provision for the interest; but all, by taxes, paper money, or purchase, had in some measure reduced the principal. In their exertions some degree of inequality had obtained, and they looked anxiously to a settlement of accounts, for the ascertainment of claims which each supposed itself to have upon the Union. Measures to effect this object had been taken by the former government, but they were slow in their progress, and intrinsic difficulties were found in the thing itself, not easily to be overcome.
Hamilton proposed to assume these debts and to fund them in common with that which continued to be the proper debt of the Union.
The resolution which comprehended this principle of the report was vigorously opposed.
It was contended that the general government would acquire an undue influence, and that the State governments would be annihilated by the measure. Not only would all the influence of the public creditors be thrown into the scale of the former, but it would absorb all the powers of taxation, and leave to the latter only the shadow of a government. This would probably terminate in rendering the State governments useless, and would destroy the system so recently established. The Union, it was said, had been compared to a rope of sand, but gentlemen were cautioned not to push things to the opposite extreme. The attempt to strengthen it might be unsuccessful, and the cord might be strained until it should break.
The constitutional authority of the Federal government to assume the debts of the States was questioned. Its powers, it was said, were specified, and this was not among them.
The policy of the measure, as it affected merely the government of the Union, was controverted, and its justice was arraigned.
On the ground of policy, it was objected that the assumption would impose on the United States a burden, the weight of which was unascertained, and which would require an extension of taxation beyond the limits which prudence would prescribe. An attempt to raise the impost would be dangerous, and the excise added to it would not produce funds adequate to the object. A tax on real estate must be resorted to, objections to which had been made in every part of the Union. It would be more advisable to leave this source of revenue untouched in the hands of the State governments, who could apply to it with more facility, with a better understanding of the subject, and with less dissatisfaction to individuals, than could possibly be done by the government of the United States.
There existed no necessity for taking up this burden. The State creditors had not required it. There was no petition from them upon the subject. There was not only no application from the States, but there was reason to believe that they were seriously opposed to the measure. Many of them would certainly view it with a jealous—a jaundiced eye. The convention of North Carolina which adopted the constitution had proposed, as an amendment to it, to deprive Congress of the power of interfering between the respective States and their creditors, and there could be no obligation to assume more than the balances which on a final settlement would be found due to creditor States.
That the debt by being thus accumulated would be perpetuated, was also an evil of real magnitude. Many of the States had already made considerable progress in extinguishing their debts, and the process might certainly be carried on more rapidly by them than by the Union. A public debt seemed to be considered by some as a public blessing, but to this doctrine they were not converts. If, as they believed, a public debt was a public evil, it would be enormously increased by adding those of the States to that of the Union.
The measure was unwise, too, as it would affect public credit. Such an augmentation of the debt must inevitably depreciate its value, since it was the character of paper, whatever denomination it might assume, to diminish in value in proportion to the quantity in circulation.
It would also increase an evil which was already sensibly felt. The State debts, when assumed by the continent, would, as that of the Union had already done, accumulate in large cities; and the dissatisfaction excited by the payment of taxes would be increased by perceiving that the money raised from the people flowed into the hands of a few individuals. Still greater mischief was to be apprehended. A great part of this additional debt would go into the hands of foreigners, and the United States would be heavily burdened to pay an interest which could not be expected to remain in the country.
The measure was unjust, because it was burdening those States which had taxed themselves highly to discharge the claims of their creditors with the debts of those which had not made the same exertions. It would delay the settlement of accounts between the individual States and the United States, and the supporters of the measure were openly charged with intending to defeat that settlement.
It was also said that in its execution the scheme would be found extremely embarrassing, perhaps impracticable. The case of a partial accession to the measure by the creditors, a case which would probably occur, presented a difficulty for which no provision was made, and of which no solution had been given. Should the creditors in some States come into the system, and those in others refuse to change their security, the government would be involved in perplexities from which no means of extricating itself had been shown. Nor would it be practicable to discriminate between the debts contracted for general and for local objects.
In the course of the debate severe allusions were made to the conduct of particular States, and the opinions advanced in favor of the measure were ascribed to local interests.
In support of the assumption, the debts of the States were traced to their origin. America, it was said, had engaged in a war the object of which was equally interesting to every part of the Union. It was not the war of a particular State, but of the United States. It was not the liberty and independence of a part, but of the whole, for which they had contended, and which they had acquired. The cause was a common cause. As brethren, the American people had consented to hazard property and life in its defense. All the sums expended in the attainment of this great object, whatever might be the authority under which they were raised or appropriated, conduced to the same end. Troops were raised, and military stores purchased, before Congress assumed the command of the army or the control of the war. The ammunition which repulsed the enemy at Bunker's Hill was purchased by Massachusetts, and formed a part of the debt of that State.
Nothing could be more erroneous than the principle which had been assumed in argument, that the holders of securities issued by individual States were to be considered merely as State creditors, as if the debt had been contracted on account of the particular State. It was contracted on account of the Union, in that common cause in which all were equally interested.
From the complex nature of the political system which had been adopted in America, the war was, in a great measure, carried on through the agency of the State governments, and the debts were, in truth, the debts of the Union, for which the States had made themselves responsible. Except the civil list, the whole State expenditure was in the prosecution of the war, and the State taxes had undeniably exceeded the provision for their civil list. The foundation for the several classes of the debt was reviewed in detail, and it was affirmed to be proved from the review, and from the books in the public offices, that, in its origin, a great part of it, even in form, and the whole, in fact, was equitably due from the continent. The States individually possessing all the resources of the nation, became responsible to certain descriptions of the public creditors. But they were the agents of the continent in contracting the debt, and its distribution among them for payment arose from the division of political power which existed under the old confederation. A new arrangement of the system had taken place, and a power over the resources of the nation was conferred on the general government. With the funds the debt also ought to be assumed. This investigation of its origin demonstrated that the assumption was not the creation of a new debt, but the reacknowledgment of liability for an old one, the payment of which had devolved on those members of the system who, at the time, were alone capable of paying it. And thence was inferred not only the justice of the measure, but a complete refutation of the arguments drawn from the constitution. If, in point of fact, the debt was in its origin continental and had been transferred to the States for greater facility of payment, there could be no constitutional objection to restoring its original and real character.
The great powers of war, of taxation, and of borrowing money, which were vested in Congress to pay the debts and provide for the common defense and general welfare of the United States, comprised that in question. There could be no more doubt of their right to charge themselves with the payment of a debt contracted in the past war, than to borrow money for the prosecution of a future war. The impolicy of leaving the public creditors to receive payment from different sources was also strongly pressed, and the jealousy which would exist between the creditors of the Union and of the States was considered as a powerful argument in favor of giving them one common interest. This jealousy, it was feared, might be carried so far as even to create an opposition to the laws of the Union.
If the State should provide for their creditors, the same sum of money must be collected from the people as would be required if the debt should be assumed, and it would probably be collected in a manner more burdensome than if one uniform system should be established. If all should not make such provision, it would be unjust to leave the soldier of one State unpaid, while the services of the man who fought by his side were amply compensated, and, after having assumed the funds, it would dishonor the general government to permit a creditor, for services rendered or property advanced for the continent, to remain unsatisfied, because his claim had been transferred to the State at a time when the State alone possessed the means of payment. By the injured and neglected creditor such an arrangement might justly be considered as a disreputable artifice.
Instead of delaying, it was believed to be a measure which would facilitate the settlement of accounts between the States. Its advocates declared that they did not entertain and never had entertained any wish to procrastinate a settlement. On the contrary it was greatly desired by them. They had themselves brought forward propositions for that purpose, and they invited their adversaries to assist in improving the plan which had been introduced.
The settlement between the States, it was said, either would or would not be made. Should it ever take place, it would remedy any inequalities which might grow out of the assumption. Should it never take place, the justice of the measure became the more apparent. That the burdens in support of a common war, which from various causes had devolved unequally on the States, ought to be apportioned among them, was a truth too clear to be controverted, and this, if the settlement should never be accomplished, could be effected only by the measure now proposed. Indeed, in any event, it would be the only certain, as well as only eligible plan. For how were the debtor States to be compelled to pay the balances which should be found against them?
If the measure was recommended by considerations which rendered its ultimate adoption inevitable, the present was clearly preferable to any future time. It was desirable immediately to quiet the minds of the public creditors by assuring them that justice would be done, to simplify the forms of public debt, and to put an end to that speculation which had been so much reprobated and which could be terminated only by giving the debt a real and permanent value.
That the assumption would impair the just influence of the States was controverted with great strength of argument. The diffusive representation in the State Legislatures, the intimate connection between the representative and his constituents, the influence of the State Legislatures over the members of one branch of the national Legislature, the nature of the powers exercise by the State governments, which perpetually presented them to the people in a point of view calculated to lay hold of the public affections, were guarantees that the States would retain their due weight in the political system and that a debt was not necessary to the solidity or duration of their power.
But the argument, it was said, proved too much. If a debt was now essential to the preservation of State authority it would always be so. It must therefore never be extinguished, but must be perpetuated in order to secure the existence of the State governments. If, for this purpose, it was indispensable that the expenses of the Revolutionary War should be borne by the States, it would not be less indispensable that the expenses of future wars should be borne in the same manner. Either the argument was unfounded or the constitution was wrong, and the powers of the sword and the purse ought not to have been conferred on the government of the Union. Whatever speculative opinions might be entertained on this point, they were to administer the government according to the principles of the constitution as it was framed. But, it was added, if so much power followed the assumption as the objection implies, is it not time to ask—is it safe to forbear assuming? If the power is so dangerous it will be so when exercised by the States. If assuming tends to consolidation, is the reverse, tending to disunion, a less weighty objection? If it is answered that the non-assumption will not necessarily tend to disunion, neither, it may be replied, does the assumption necessarily tend to consolidation.
It was not admitted that the assumption would tend to perpetuate the debt. It could not be presumed that the general government would be less willing than the local governments to discharge it; nor could it be presumed that the means were less attainable by the former than the latter.
It was not contended that a public debt was a public blessing. Whether a debt was to be preferred to no debt was not the question. The debt was already contracted, and the question so far as policy might be consulted, was, whether it was more for the public advantage to give it such a form as would render it applicable to the purposes of a circulating medium, or to leave it a mere subject of speculation, incapable of being employed to any useful purpose. The debt was admitted to be an evil, but it was an evil from which, if wisely modified, some benefit might be extracted, and which, in its present state, could have only a mischievous operation.
If the debt should be placed on adequate funds, its operation on public credit could not be pernicious; in its present precarious condition, there was much more to be apprehended in that respect.
To the objection that it would accumulate in large cities, it was answered it would be a moneyed capital, and would be held by those who chose to place money at interest, but by funding the debt the present possessors would be enabled to part with it at its nominal value, instead of selling it at its present current rate. If it should center in the hands of foreigners, the sooner it was appreciated to its proper standard, the greater quantity of specie would its transfer bring into the United States.
To the injustice of charging those States which had made great exertions for the payment of their debts with the burden properly belonging to those which had not made such exertions, it was answered that every State must be considered as having exerted itself to the utmost of its resources, and that if it could not or would not make provision for creditors to whom the Union was equitably bound, the argument in favor of an assumption was the stronger.
The arguments drawn from local interests were repelled and retorted, and a great degree of irritation was excited on both sides.
After a very animated discussion of several days, the question was taken, and the resolution was carried by a small majority. Soon after this decision, while the subject was pending before the House, the delegates from North Carolina took their seats, and changed the strength of parties. By a majority of two voices, the resolution was recommitted, and, after a long and ardent debate, was negatived by the same majority.
This proposition continued to be supported with a degree of earnestness which its opponents termed pertinacious, but not a single opinion was changed. It was brought forward in the new and less exceptionable form of assuming specific sums from each State. Under this modification of the principle, the extraordinary contributions of particular States during the war, and their exertions since the peace, might be regarded, and the objections to the measure, drawn from the uncertainty of the sum to be assumed, would be removed. But these alterations produced no change of sentiment, and the bill was sent up to the Senate with a provision for those creditors only whose certificates of debt purported to be payable by the Union.
In this state of things the measure is understood to have derived aid from another, which was of a nature strongly to interest particular parts of the Union.
From the month of June, 1783, when Congress was driven from Philadelphia by the mutiny of a part of the Pennsylvania line, the necessity of selecting some place for a permanent residence, in which the government of the Union might exercise sufficient authority to protect itself from violence and insult, had been generally acknowledged. Scarcely any subject had occupied more time, or had more agitated the members of the former Congress than this.
In December, 1784, an ordinance was passed for appointing commissioners to purchase land on the Delaware, in the neighborhood of its falls, and to erect thereon the necessary public buildings for the reception of Congress and the officers of government; but the southern interest had been sufficiently strong to arrest the execution of this ordinance by preventing an appropriation of funds, which required the assent of nine States. Under the existing government, this subject had received the early attention of Congress, and many different situations, from the Delaware to the Potomac inclusive, had been earnestly supported, but a majority of both houses had not concurred in favor of any one place. With as little success, attempts had been made to change the temporary residence of Congress. Although New York was obviously too far to the east, so many conflicting interests were brought into operation whenever the subject was touched, that no motion designating a more central place could succeed. At length, a compact respecting the temporary and permanent seat of government was entered into between the friends of Philadelphia and the Potomac, stipulating that Congress should adjourn to and hold its sessions in Philadelphia for ten years, during which time buildings for the accommodation of the government should be erected at some place on the Potomac, to which the government should remove at the expiration of the term. This compact having united the representatives of Pennsylvania and Delaware with the friends of the Potomac, in favor both of the temporary and permanent residence which had been agreed on between them, a majority was produced in favor of the two situations, and a bill which was brought into the Senate in conformity with this previous arrangement, passed both houses by small majorities. This act was immediately followed by an amendment to the bill then depending before the Senate for funding the debt of the Union. The amendment was similar in principle to that which had been unsuccessfully proposed in the House of Representatives. By its provisions, $21,500,000 of the State debts were assumed in specified proportions, and it was particularly enacted that no certificate should be received from a State creditor which could be "ascertained to have been issued for any purpose other than compensations and expenditures for services or supplies toward the prosecution of the late war and the defense of the United States, or of some part thereof, during the same." |
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